Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1843-02-28
THE BANK LAW.


Enquirer gives the following synopsis o
the act just passed to amend the act tC
regulate banking in Ohio.
Sec. /. Provides that no person
shall be director in two banks at the
same time, nor more than one of a firm
be eligible as director; no Judge, clerk
or sheriff shell be director;a MAORI ty
ofall directors shall be necessary for
business except the renewal of a note,
which shall require two thirds, no loan to
be made or bill of exchange purchased
for longer period than six months.
Sec. 2. Prohibits dividends that will
impair the capital stock.
Sec. 3. Holds every director to pos.
sess knowledge of the transactions Of
the boaFd-and all present to concur in
any act, unless the director or directors
enter protest on the journals and call
a injecting Of the stockholders; the same
to be applied to any absent director, if
the act be of record, unless, he shall re-
Iieve himself by the same means.
Sec. 4. Requires the board to make
a full examination of the bank once in
six months, and enter the result upoa the
books.
Sec. 5. Applies the principle of in
dividual liability to all debts created by
the bank, except in cases of deposits,
when special contract may be made to
the contrary. In case of insolvency, the
receivers are TO take the active assets Of
the bank, discarding all bad or doubtful
debts, all real estate, all notes running
longer than ninety days,-and if in their
opinion the said assets are not sufficient,
when reduced to cash, to redeem the
circulation, and other claims upon indi
vidusI liability, they are to proceed, by
scire faciGs, against the directors and
stockholders for the necessary amount
The liability is to be proportional to the
amount Of stock, provision is made by
which the stockholders may oqualize this
amongst themselves. The details ofthis
also occupies sections 6, 7 andS.
Sec. 8. Prohibits the bank or Off
GERS. from dealing in public stocks of any
kind-or receiving or reserving no inter
est or exchanging more than six per cent
per annum in advance. In the latter
case. the bill or note is declared void ,and
the directions cOnsenting to it made liable
for the loss.
Sec. 10. Authorizes any stockhold.
or of bank to require the bank comS
missiOners to examine and report its con-
dition, and ifOne fifth of tho stock shall
have been sunk or dissipated, the bank
shall be wound up according to law.
Sec. IL. Gives TO the State of Ohio
4 lien upon ell the real estate Of an insol-
vent bank, for the benefit Of the credit>
ors from the date of the application of
the bank commissioners for process
against it,-except when such estate is
sold upon judgment in favor of any bill
holder OF the bank.
Sec. IL. Requires the Receivers Of
= falling bank, to make and declare div.
idend every month, in the manner now
provided. !
Sec. l3. Revives and incorporates
for Is years from the first day of March
next, the Franklin Bank Of Cincinnati,
with capital Of 800, 900, which may be
increased to halfa million.
Sec. ID. Revives the franklin Bank
Of Columbus for fourteen years from the
same time :--cap:tal as in section l3.
Sec. Is. Revives the Western Re-
serve bank for thirteen years, with eapi>
tel of $50, 900, that may be increased to
S3OO, 1000.
Sec. l6. Revives the Bank ofMus.
kinQum for twelve years, with capital
OF $50, 900, that may be increased to
100000.
Sec. IT,, Revives The bank of Mount
Pleasant, for len years, With capital OF
50 900, that may be increased to $780,
600.
Sec. ls. Provides that il the corpO-
4ators, in these instances refuse TO serve,
or establish the banks, the Governor may
on application, appoint other corpOratOrs,
Who may proceed under the act TO organ
ize such banks.
Sec. 10. Places the banks Of Xepia,
Wooster, Norwalk, Sandusky, and Lafay-