New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1853-04-23
DAILY CRESCENT.
IN .acT,
To establish General System for Free Banking
in the State Of Louisiana


.aS .acT
To establish General System for Free Banking
in the State Of Louisiana.
SIC. i. BE enacted By the House Of Represn
fatires Of the State 9 LOapa Gneoi .7ssem5v conred
That association Of corporation
transact the business Of banking In this sae and estab
h Offices Of discount deposite and circulation for that
purpose upon the terms and conditions and subject to
all the liabilities and penalties herein prescribed
Sec. BE further enacted ETC., That bankers and bank
ing corporations carrying the business OF banking
der this shall have power discount bills and
other evidences Of debts receive depoes buy and
sell gold and silver bullion foreign coins and bills Of
change to lend money on real and personal security ana
TO exercise all incidental powers necessary to carry on
said business.
But aggregate amount of the capital stock Of such
banker or corporation shall not be less than one hundred
Sec. 8 Bel further enacted ETC. That any person per-
sons sssoc'ang themselves for the purpose Of bansng
and are hereby authorized to become corporation, with
power and authority .
/. To have and enjoy succession by corporate
to be selected by themselves for period which shall be
expressed and limited in the ARTICLES Of 7ssoeaio proy
did such period shall not exceed twenty and by
pleaded appear and prosecute in any and all
courts Of justice and elsewhere.
To hold, receive purchase and convey by and under
their corporate name such property real and
may be indispensable to the objects Of the association
provided that the real estae, which such corporation
y lawfully purchase hold and convey, shall be- first.
such may be necessary for the proper tapction Of
their business snail been mort
gagged to them in good iab security for loans thirdly
such shall be conveyed them in satisfaction Of debts
previously contracted iona d the of their bu
sness and furthy such they purchase at sales,
under judgme mortgages bsd by them elves in
which they may have by being subrogated to
rights according article 257 Of Ciel Code But
they shall not have power hold any real
quired any way except such may be required for
the transaction Of their business for longer than
Eve years.
10 make and use a corporate seal to be described in
the Articles Of Association.
L. To and appoint such managers and directors
administer the affairs Of the corporation, they may
think necessary and proper the number aud style Of
such directors or managers being described in the Articles
Of Association and TO Tx the compensation Of all persons
in their employment All said managers and directors
| shall be citizens Of the State.
8 To make and ordAin such by laws for the proper
management Of the affairs of the corporation may be
necessary and proper and in conformity with the pro-
VISIONS law Articles Of Association aud this Act
And such bylaws to repeal alter and pleasure
Sec Be il further e,aeted etc. That corporations
der this act shall bs organized by written Articles of As
ISOLATION duly executed by NotaraI
the Office OF the Recorder of Mortgages other officer
exercising the functions Of Recorder Of Mortgages the
place named in the act the place Of business dom
cs the corporation certified copy Of the same
shall be deposited in the Office Of the Auditor Of Public
Accounts the same shall also be published q week
for four weeks in the official journal Of the State and ii
the official Journal Of the State should be newspa-
in the city Of New0rleans the said shall also
published for the same time in at least daily newspa-
per Of the city Of NewOresns and also in newspaper
the place named in the act the place Of business
there be published there duly certified copy Of
| - ~~~~ AS> es~
| against such corporations.
sec. g. Be further enacted, That the act thus re-
corded and published shall contain and set forth under
the signatures Of the subscribers and the
assumed to distinguish such Banking Company. and
be used In Its deangthe place where the banking bust
Of such association s be carried on
the particular parish and city, village in the State ths
amount of the capital stock of such Banking Company
and the number Of shares into which the shall be
divided the and places Of residence share
holders and the number Of shares held by each of them
respectively and the time manner in which pa
ments stock subscribed shall be made the period at
whih such association shall period Of
its Duration the number Of its directors and managers
and the mode of election and the mode Of liquidation
the end of the term.
The may also provide for increase of the cap
tal and Of the number Of associates and any mod
cation addition alteration In the articles associa
tion Provided that increase every such mod
general meeting of the stockholders held thirty
days notice and shall be approved by twothirds Of
81 the capital stock and every such increase
recorded and published as provided in this section 70
, the original articles.
Sec g. BE further enacted ec That all stock subscribe
to any Banking Company under this act be paid
in full in specie within twelve months after the sal
! company shall commence business.
Sec. Z. BE further enacted etc, That no loans by an
Banking Company shall be made to any Of its stockhod
ers on pledge OF its own stock.
Sec s. Be nftrtr enacted That the shares Of sal
Banking Companies shall be deemed be personal pre-
perty and shall be transferable upon the books
same, in such manner as the bylaws may direct but
shareholder thereon shall be liable debts and con
tracts to greater than the whole amount of hi
shares therein unlncorporaed bankers shall be liable
the full amount OF their obligations and contracts.
The liability as stockholder shall apply not only to suc
persons as appear by the books of company to b
such but also 10 every equita BILE athoug
the may appear such books in the name of ano
ther person and also to every person who shall
vanced the instamens purchase money of any stool
in the name Of person under twenty years age
and while such remains minor and also ever,
guardian trustee who shatvountariy invest funds
such stock no trust funds shall be Liable for the copo
rate debts but the guardian trustee shall be personally
LIABLE until the person benehcialy interested become
competent to control and dispose Of the same and fo
sixty days thereafter. but when guardian trustee
holds such stocks under transfer from third person.
good faith by positive directions make such
ment the person so transferring or giving directions
his estate if he be deceased shall be responsible tn
debts and liabilities chargeabe on said stock.
Sec BE further enacted etc That the stockholder
OF any Banking Company formed under this act shall
exonerated from any responsibility therefor in respect
any stock which shall have duly transferred tn
BOOKS Of the association In good faith and without tn
been made by the company in the payment Of its debt
The assignee in said case shall succeed to the
spopsblities AS though he had been Of the soc
at the time of contracting the debt liability for whic
the Stockholders are responsible, and the rule
responsibility shall prevail in regard to all subsequent
sgnees.
Sec. 10. BE it turtle, enacted ETC., That every Bankir
Company established under this act shall proof OF
act of insolvency compliance with any Of the
dtions of this act forfeit its corporate rights and it
be the duty Of the District Court of the district in whs
such corporation Is situated the instance Of any
or or Of the Auditor Of Public accounts aud proof
the alleged facts to the satisfaction Of the said
decree such forfeiture and to appoint thrrsupon
sionere to effect the liquidation of the affairs Of the
corporation-to convert into cash, speedily may
under the direction of the court all the of the
poration, including the that may have remained
paid 10y stockholders upon their respective
capital stock aud after providing according article
OF the constitution for any unpaid balance which may
due to the bill holders to distribute the pr
vded by law in the of ns0lvencies Of individuals
- Sec IL BE ii further enacted, ETC. That the Auditor
Public Accounts of this state is hereby authorized
directed to to be engraved and printed in the be
manner to guard against terietDg such quaint
tions than five dollars each which
be Issued by the Incorporated Banks OF the State
may from time to time deem to carry into ee
n the provisions of this act such blank circulating
shall be counersgned by the said Auditor aud number,
and registered in his Office by and under his direction
persons appointed for that purpose that the notes
each denomination Of such circulating notes issued Il
same banker or banking company. shall be uniform.
such circulating notes, of every denomination shall
stamped upon their face secured by pledge of publ
" stoeks.n specifying the class The form and devices
= such circulating notes may be selected by the banke
aud banking companies, who may be entitled to reee
them from the Auditor under the provisions Of this
J., but the Auditor shall prescribe uniformity among
the engraved in the for receiving sign
ture of the Auditor and the number herein directed
y | put upon such notes. by him or in his office.
re Sec IL Be further enacted, ETC., That Banks
Banking Companies established under this upon
gally assigning to- and depostng with the said Auditt
n the bonds evidences of debt of the United Stat,
bonds of this State bonds Of the consolidated debt
ID the City Of New0eans authorized and secured by d
thirty section Of the act to Consolidate the Ci