Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1851-12-04

payment of oaq half of the whole amount SO 10
be issued by transferring to the treasurer bonds
and mortgages upon the real estate, bearing at
least six per cent. interest, payable annually or
semi .annualIy,n which case all such bills or
notes issued BY the said association shall De
stamped on Their face, " secured by the pledge
of public stocks and real estate"
SEC. 8. The real estate so moltg1ged, must
be improved, productive, unlncumbered LANDS IN
this state, exclusive of any buildings thereon
and the amountfor which said lands are so mort
gagged unst not exceed two il!hs of the value OF
said lands nor shall any mortgage be received
for greater AMOUNT than five thousand dollars
each, and thetleasurer shall prescribe sucn reg
uatons for asCsrtalnng the title and value OF
such lands, as he may deem necessary, and sucH
bonds shall be payable within such time as the
treasurer may direct.
SEC. 9. The treasurer may IN MS dScretloh'
re assign the said bonds and mortgages, or any
of them, TO tie association who transferred tle
same, on receiVing other approved bonds ana
mortgages, or public stocks OF the description
mentioned in the second section OF this act, OF
equal amount and when any sum OF the prlncl-
pal of the bonds and mortgages, transferred 10
the treasurer shall be paid to him, he snail no
and mortgages, or such payment, and may Pay
the same 10 such association, on receiving other
approved bonds and mortgages of equal amount
Sec. 10. The association, assigning such bonds
and mortgages to the treasurer, may receive the
annual interest to come thereon, unless default
shall be made in paying the bills or notes to be
countersgnd as aforesaid, or unless, In the opln-
ion of the treasurer, the bonds and mortgages, or
stocks so pledged, shall become an insufficient
security torfhe payment of such bills or notes
see' IN case such association shall tall or
refuse tapay such bills or notes on demand, in
the manner N,adfed in the fourth section Of this
act, the treasurer after the ten days notice there
in mentioned may proceed to sell at public auc-
ton the public stock so pledged, or the bonds
and mortgages so assigned, or any or either Of
them, and out Of the proceeds of such sale shall
pay and cancel the said bills or notes, default in
paying which shall have been as aforesaid but
nothing in this act contained shall be considered
as implying any pledge on the part of the State
for the payment of said bills or notes, beyond
the proper application of the securities pledged
to the treasurer for their redemption.
| SEC. r. The public stocks and bonds and
mortgages to be deposited with the treasurer, by
| any such association, shall be held by him ex.
clusvely for the redemption of the bills or notes
of such association, put in circulation as money,
until the same are paid.
! SEC. 10. The plates, dies, and materials to
be procured by the treasurer, for the printing
and making of the circulating notes provided for
| hereby, shall remain in his custody, and under
his direction; the expenses necessarily incurred
in executing the provisions Of this act shall be
paid by the treasurer out of any money in the
treasury not Otherwise appropriated ; and for the
purpose of remburslng the same, the said treas
urer is hereby authorized and required to charge
against, and receive from such ASSOCIATION, apply
ing for such circulating notes, such rate per
cent. thereon as may be sufficient for that pur-
pose, and may be just and reasonable.
Sec. IA. II shall not be lawful for the treas
urer or other officer, to counterslgn bills or notes
for any ASSOCIATION TO an amount in the aggre,
gate exceeding the public stocks, or public
stocks and bonds and mortgages, at their value,
as before provided in this act, deposited with the
treasurer by such association; and any treasurer
or other officer, who shall violate the provisions
of this section, shall, upon conviction, be ad-
Judged guilty Of misdemeanor, and shall be
punished by fine not less than five thousand
dollars, or be imprisoned not ,ss than five years
IN the State Prison. or by both such fine ant
Imprisonment
Sec. Is. Any number of persons, not les:
than ten residents of this state, may associate tc
establish Offices of discount, deposit and circua
ton, upon the terms and conditions, and subjec
to the liabilities prescribed in this act; but the
aggre gate AMOUNT of the capital stock of an,
such essosigssn ahall not be less than fifty thou
sand doilarl M mops rian two hnHdr8d and fif.
ty thousand 30Iiars.
SEC. l6. Such persons, under their hands
and seals, shall make certificate which shall
specify IL. The name assumed to distinguish
such association, and to be used In all it's deal.
ings, which Eame shall not be that of any other
bank in this suite. 2. The place where the ope
ratons of discount and deposit of such assocla-
ton are to be carried on designating the partic
uIar city, to w or village. 3. The amount OF
the capital stick of such association, and the
number of shares into which the same shall be
divided 4. The name and places of residence
of the share holders, and the number of shares
held by each Of them respectively. 5, The Pc
Rod at which such association shall commence
and terminates; which certificate shall be &C
knowedged and recorded in the office of the
serk of the county where any Office of such as.
cociation shall be estabI sled and copy there.
of filed in the office of the Secretary of state.
Sec. II. The certificate required by the last
preceding section to be recorded and filed in the
Office of the clerk of the county, and secretary
of the State aforesaid, or copies thereof, duly
certified by either OF those off ;ers, may he used
as evidence mall courts and places, for and a.
gainst any such associations.
Sec. 16. All banking associations organi
zed under the provisions of this act. shall be
| H.. e I'D danosit mall e,,Fo
cuIation, and shall have power to carry on the
business of banking, by discounting bills, notes,
and other evidences of debt; by receiving de-
posites by buying and selling gold and silver
bullion, foreign coin and bills of exchange, in
the manner specified in their articles of associa-
ton for the purposes authorized by this act; by
loaning money on real and personal security
and by exercising such incidental powers as
shall be necessary to carry on such business ;
to choose one of their number as president of
such association, aud to appoint cashier, and
such other officers and agents as their business
may require, and to remove such president, cash
Ter, officers and agents at pleasure, and to APP
point others in their place. And the usual bu.
siness of banking of said association shall be
transacted at the place where such banking as
sociation shall be located, agreeaby to the To-
cation specified in the certificate directed to be
made by the secoaa clause of the sixteenth sec.
ton Of this aek and not elsewhere.
Sec. 10. The shares of said association
shall be deemed personal property, and shall be
transferable on The books of the association, in
such manner as may be agreed on in the articles
of association; and every person becoming a
shareholde: by such transfer, shall, in proportion
to his shares, succeed to all the rights and la
biIities of prior shareholders and no change
shall be made in the articles of association, by
which the rights, remedies, or securities of It's
existing creditors shall be weakened or impaired
Such association shall not be dissolved by the
death or insanity of any of the shareholders
therein.
Sec 20. It shall be lawful for any associa-
ton of persons organized under the provisions
of this act, BY their articles of association, to
provide for an increase of their capital, and of
the number Of their associates, from time to time
as they may think proper, the aggregate capital