Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1843-03-14
OHIO LAWs-NO. 3.
AN ACT
AN ACT
To smsnd the act entitled "An act to reg.
ulate Banking in Ohio"

oIal Assembly OF tne ClatO OF Ohl0, Ina
no person shall be director in two bank
at any one time, no r shall more than on
member ofaDy firm or company be eligi
bIe as director; and the seat of any di
rector, accepting any Office in. any othe
bank shall be vacated, and no Judge o
any court of record in this State, O
clerk Ofany such court, or sheriff Of an
county, shall be eligible as director il
any such bank: the assent of majorit,
ofall the directors shall always be nec
eseary for the transaction Of business
provided, in every case Of the renewal o
a note, the assent of two-thirds OF all thu
directors shall be necessary for such re
newal; nor shall any loan be made for I
longer period than six months; nor shal
| any bill Of exchange. promissory note Of
other obligation, be discounted or pur'
chased BY such bank, which has more
than six months to run from the time oI
snch discount or purchase.
Sec. 2. 1t shall not be lawful fOI
the officers or directors of any such bank
to make OF declare any dividend, in case
the cnpital stock Of such bank shall be
impaired, or reduced by losses or bad
debts, until said capital stock be fully re.
stored; and any bank violating the pros
visions of this section shall be held
and taken TO be insolvent, and the bank
commissioners shall forthwith proceed,
according to law, to close its affairs.
Sec. 8. Every director Of such bank
shall be deemed 10 possess such knowl
edge Of the affairs of the bank, of which
he is director, as TO enable him to de.
termine whether any act or proceeding,
or omission of its directors, is a violation
of the provisions of this act, and the
act to which this is an amendment; and
every director, who shall be present at
meeting of the Directors when such viO-
lation shall happen, shall be deem ed and
held to have concurred therein, unless he
shall, at the time, cause, or, in writing,
require, his dissent therefrom, to be en-.
tered at large on the minutes Of the d.
rectOrs, and forthwith call meeting of
the stockholders Of the bank and lay such
violatioE before them; every director not
present at meeting when snch violation
shall happen, shall nevertheless be deem
ed to have concurred therein, ifthe facts
con Shutting such violation appear on the
books of the bank, and he remain a d.
rector of such bank for three months
thereafter, and do not, within that time,
cause, or, in writing, require, his dissent
from such illegal proceedings to be en-.
tered at large upon the minutesOf the di>
rectors, and forthwith call a special
meeting of the stockholders, (unless the
same shall have been previously done by
some other directory and lay such viola
ton before them; and any director who
shall dissent from any act, proceeding, or
omission Of the board Of which he is a d.
rector, and comply with this and the pre-.
Ceding section, shall not be held liable,
as director, for the act, proceeding, or
omission to which he dIssents a. afOre>
said.
Sec. 4. 1t shall be the duty of the
directors of such bank, as often as once
in every six months, to make strict and
full examination into the general state
and condition Of their respective banks,
and compare the funds and assets thereof
with the books and papers thereof, and,
also, TO make a strict examination of the
accounts Of the cashier, and make q full
and complete settlement thereof, and
a minute Of such examination and settles
ment shall be entered upon the journals
of said board.
Sec. 5. The stockholders of such
bank shall be severally liable, in their in
dividual and private capacity, for each and
every valid claim against the bank Of
whieh they are stockholders, except in
cases where depositors and the bank
otherwise agree in relation to the liabfli-
ty for their deposits; and such individual
liability shall be enforced as follows: the
Receivers, who may be appointed by law
to settle up the affa irs Of any bank, shall,
within ten days after taking possession Of
such bank, make out a statement of the
active assets Of such bank; in determin-
ing which, no desperate or doubtful debt,
no note, bill, or other evidence Of debt,
not payable within ninety days from the
date Of such examination, and no real
estate, shall be taken into the account;
it the active assets of such bank, ascer-
tanned as aforSaid, shall not be sufficient,
in the opinion Of the Receivers, when re-
duced to cash, to redeem the Outstand-
ing circulating notes ofsuch bank, it shall
be the duty ofthe Receivers.tO proceed
Immediately to collect the residue from
'thedifectors Of such bank, BY means Of
a writ Of scifs facias, 10 BE issued in the
name Of the State Of Ohio, against all Of
said directors who may be within the ju'
'risdiction ofthe court issuing said writ,
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