Madison Whig advocate., 1840-03-21

dorser on a larger sum than fifty thou
sand dollars, prorided, that nothing IN
this section shall prevent the renewal Of
any debt heretofore contracted and now
due any bank in this State in a larger
amount
SEC. 13. Be 1t further enacted, That
IN the liquidation of the affairs of any
bank or corporation under the provisions
of this act, no dividend shall be allowed
or paid out of the same, until all its other
liabilities shall have been first discharg
ed; and in any such case, if it shall ap-
pear that any persons charged with the
liquidation of the affairs of such bank or
corporation, have concealed embezzled,
or fraudulently squandered any interest,
property or effects of the same, or shall
knowingly permit any other person 10
do the same, or knowing the same. shall
fail 10 give information thereof to the
Governor, whether the thing SO conceal
ed or embezzled be contained in the sche-
dule lodged with the Governor or not,
shall be subject TO Indictment for the
same, and be on conviction, fined in a
sum not exceeding one thousand dollars.
And hereafter no one who shall be di-
shall at the same time be eligible for or
act as the collecting Attorney of said
bank or any other bank.
SEC. IA. Be At further enacted, That
hereafter no individual shall have loan
by the discounting of a note, bill or
otherwise, in any bank of which be IS
director, officer or clerk, nor shall he
procure any one to draw or endorse any
note or bill to be discounted for his use
or accommodation, but the said bank
may give compensation to their officers
and directors for their services, and that
the directors of all the banks IN this
State shall be made liable in ther persons
and property for any wilful violation OF
any of the provisions of their respec-
tive charters, and before entering on the
duties of director shall be required to
take an oath, faithfully, and to the best
of his understanding, observe inviolably
the provisions Of the charter of the
bank whereof he is about to become a
director, under the provisions. of this
act.
SEC. Is. Be 1t further enacted, That
it shall be and is hereby made the duty
of the Governor in all cases where sa-
tisfactory evidence shall be received by
him that any bank Is acting in fraud for
the purpose of anticipating or avoiding
in any way the effects of a forfeiture OF
charter to instruct the Attorney General
forthwith to institute proceedings against
such bank, and to enjoin the same ac-
cording to the provisions Of the laws in
force and use in other cases.
SEC. IS. Be 1t further enacted. That
it shall be at the option of any bank IN
the State, within enc hundred and TWEEN
ty days after the passage of this act to
surrender its charter; and that the d.
rectors or managers of any bank are
hereby authorized TO call a general
meeting of its stockholders to decide
thereon, and if they shall determine to
surrender their charter, II shall be the
duty of such bank within the time spe-
cited, to deposite in the Office Of the
Secretary of State, a certificate of such
surrender, under the corporate seal Of
said bank; but such surrendeTing bank
shall retain so long as may be necessary
to effect and complete the liquidation Of
their affairs, not exceeding eight years,
all the powers of its charter which may
be necessary for that purpose, and no
other, Provided, however, that Il shall
be lawful for such banks to have and to
hold It's corporate name for the purpose
of prosecuting and defending any suit
either at law or in equity, that may have
been instituted before the expiration Of
its charter.
Sec. II. Be IL furihey. enacted, That
any bank which shall have rendered its
charter in the manner prescribed IN the
section, shall extend indul
gence to its debtors, upon their giving
good security to the bank, by renewing
annually for one, two, three, four, five
and six years, the debtor paying at each
renewal one sixth of the debt and the
discount upon the remainder; and that
in all cases, where time IS extended to
the debtor, the bank shall have power to
take mortgages, and any other security
which may be satisfactory.
SEC. IS. Be 1t further enacted, That
within thirty days after the deposite Of
certificate of surrender in the Office of
the Secretary of State, by any bank,
and annually thereafter, in the month of
January, it,shall be the duty of the Gov
ernor, to appoint a commissioner, cItI-
zen of the county where said bank IS
situated, who shall, together with the
cashier of the Bank, or other person ap-
pointed by the directors for that purpose,
proceed without delay TO take an Inven-
tory in duplicate of all the assets aud
property of whatever kind belonging TO
said bank. and also, to make statement
in duplicate of all its liabilities of what
ever nature; and that they may be ena-
bled to perform this duty, the said COM
missioner shall have power TO examine,
On oath the directory and officers Of said
institution. or any other persons and pa
per, and 10 compel the attendance of wit
nesses; and that said duplicate, iuyen-
tory and statement shall be verified by
the oath of said commissioner and cash
Ter. or other pe<son appointed by the d.
rectors, and one copy thereof left IN pos
session of the bank, and the other trans
mitted to the Office Of the Secretary Of
the State by said commissioner
SEC. l9. Be 1t further enacted. That
such inventories and statements as pro-