The Cadiz sentinel. [volume] (Cadiz, Ohio) 184?-1851, 1845-03-05

Ideliverto any branch, notes for circulation, theyic
shall require such branch to pay over or deposiie {
TO the credit of said board, as said board shall
order, either in money or in certificates of the
stocks Of this State; or of the United States, at
their current value inthe city of New York, but
in no instance above their par value, an amount
equal to ten per cent. on the amount of the
notes for circulation, which shall be delivered TO
such branch. And so from time to time, as any
branch may. by the paying in Of an additional
amount on its capital stock, or by not having re-
lceiyed the amount of notes for circulation to
which it was previously entitled, be authorized
to demand an additional amount of notes for cir
%culation, such branch shall deposit withthe board
Of control ten per cent. on the amount OF notes
so required; and the stocks and money sodeposi-
ted shall be denominated the "safety-fund, "
and shall be invested as hereinafter prescribed,
and held by the the board of control as the pro-
perty of said board, in trust for the benefitof the
several branches of the State Bank of Ohio, and
as q fund for the redemption of the notes of cir
~culation of any one or more of slid branches
that may fail to redeem its notes, to be applied
to that purpose in the manner pointed out by
this act.
Sec. %. All money so deposited or paid to
the board of control OH account of the safety
fund, by any branch, shall be, under the direc-
ton of said board, invested by such branch eli
Fl Their in stocks of the State, or of the United
States, or in bonds secured by mortgages on I'M
~incumbered real estate situate in the county
! where such branch is located, or in adjoining
counties, of at leasttwice the value in each case
of the amount secured thereby, exclusive of bull
f Idlngs or other fixtures subject TO be destroyedby
, fire, by floods or other accidental occurrences,
or of timber, mines or minerals subject TO waste;
which bond shall be made payable on demand
10 the State Bank of Ohio, and shall bear such
rate of interest as shall be agreed on by the
e parties, not exceeding seven per cent. per an
: mum, payable semi-annually. Each branch
i shall be entitled to receive the interest accruing
i on the stocks or bonds in which it's portion of the
e safety fund shall have been invested and in
i case of the insolvency of any branch, the stocks
and bonds in which the money of such branch
o shall have been invested as aforesaid, if the pro-
e ceeds of such stock and bonds shall be sufficient
to redeem its outstanding notes of circulation,
shall, as far as practicable, be first converted
into money, and applied othat purpoKse, before
any part of the safety fund belonging to other
e branches shall be SO applied,
Sec. %. The stockholders, collectively, Of
any branch shall, at no time, be liable to such
branch, either as principal debtors, or %sureties.
or both, to an amount exceeding one-thlrd part
of the capital stock of such branch then actually
G paid in and remaining as capital stock. Nol
s. shall the directors, collectively, be so liable tc
an amount exceeding one-fourth part of the
stock actually paid in, standing in their names
to and Of which they are collectively the bona fde
owners in their own right; provided that such
directors may be further permitted to become
liable as drawess or endorsers OF bona hde bills Of
n exchange, drawn in this State, and payable al
t., any place out Of this State, TO an amount, wher
added to their other liabilities not exceeding
onc-third of the capital stock actually paid in
a. and standing in the names OF such directors
and the stockholders may become liable, in like
te manner, in such sum as, when added to then
Of other liabilities, will not exceed one-hnlf of the
Or capital stock Of any such branch actually pait
in. ...r.-
le Sec. "a. Ifany branch of the State Bank o
Ohio shall refuse to pay lis notes of circulation
G. or any of them, in gold and silver coin Of the
&c lawful currency of the United States, on which
TO payment shall be lawfully demanded at its bank
OF ing house, or customary place of doing banking
lis business, during usual banking hours, sucl
n branch shall be deemed to have committed az
ii act of insolvency, thereupon all its property
nj credits, securities, liens and assets OF every de
scription, shall forthwith vest in, and be TIT
property, credits, securities, liens and assets, o
lie the board of control for the uses and purposes
Id declared in this act.
Sec. %. The board ofeontrol, on receiving
h. information that any branch ofthe State Bank 0
Ohio has committed an act of insolvency, shall
Dv forthwith appoint a committee of one or more o
its members, who shall make immediate inquir,
e. into the truth of such Information, and repor
thereon to the board; and if the board shall b'
or satisfied, from the report Of the committee tina
oy such branch has suspended the payment Q
he its notes in gold and silver, they shall forthwith
Iappoint a suitable receiver or receivers, who shall
Ia take immediate possession of the books, records
money, chooses in action, and property of sal
branch of every description, and hold The sam
orIfor the Joint use and benefit of the other bran
es ches of the State Bank of Ohio, and the cred
MT tors of the said failing branch; and said boar
ok of control shall Immediately provide money, an
ne place the same in such solvent branch or brar
al. ches, as may be most convenient for the purpos
an of redeeming the notes of such failing brancl
to and shall give public notice thereofin some new.
paper printed in the place where such lailin
nv branch is located, and also in some ncwspape
ce of general circulation published at Columbus.
Sec. 26. Each solvent branch shall contr
or butte, in the ratio of the circulation to which, it
of entitled, to the sum necessary for redeeming I'll
ed notes of the failing branch, rs provided in ii
proceeding section, on the requisition of the boal
or of control, and mly be remunerated for such col
ter tribution, from the safety fund, as soon as mo-
ed ey sufficient can be raised from that fund, by
sale or hypothecation of the stock, funds, or oil
or err securities belonging thereto.
of Sec. 81. The receiver or receivers, appoin