The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1856-05-07

agent to carefully count or otherwise as
certain the amount of money paid in on
account of its capital stock, to ascertain
the name and place of residence of each
of the directors of such bank, and tina,
their stockholders, directors and officers
are men of responsibility and integrity,
and entitled to the public confidence,
and the amount of capital stock of which
each is the bona fde owner, whether such
bank has complied with all the require.
ments of this act necessary to %entitle the
bank to engage in the business of bank.
ing, and shall cause to be made and at
tested by the oath of a majority of the
bank, a statement of all the material
facts necessary to enable the board Of
bank commissioners to determine whether
such bank is lawfully entitled to com
mence the business Of banking under the
provisions of this act, and such agent
shall Immediately report to the board Of
bank commissioners such statement and
his proceedings in the premises.
SECTION 8. If, upon a careful exami-
nation of the certificates of association,
and the reports and statements of the
special agents appointed to ascertain
whether the banks SO organized have
complied with the provisions of this act,
it shall appear that any such banks have
been formed, and their stockholders,
directors and officers are men of respon-
s;bility and integrity, and entitled to
public confidence, and that such banks
or any of them are lawfully entitled to
commence the business of banking, the
commissioners shall certify the same to
the governor, who shall, if he be satisfied
that the law has in all respects been COM
piled with, issue his proclamation, setting
forth that such banks are authorized to
commence and carry on banking, at the
places severally designated in their GER
t~ifcates of association.
SECTION 9. No bank shall be orga-
nized under this act, as a branch of the
bank of Ohio, in the county of Hamilton,
with a less capital than FIVE hundred
thousand dollars, which may be increased
TO any sum not exceeding one million of
dollars. Nor shall any independent
bank be organized under this act in said
county, with a less capital than two hun
bred and fifty thousand dollars, which
may be increased to any sum not exceed
ing five hundred thousand dollars; pro-
vided that in no case where the capital
stock of an independent bank is named
in this act, shall the certificates Of public
debt required to be deposited by such
banks with the Treasurer of State, be
treated or regarded as any part of such
capital stock.
SECTION 10. No bank shall be estab-
lished under this act as a branch of the
bank of Ohio, in the counties Of Cuyaho-
ga, Montgomery, Franklin or Lucas,
with a capital less than three hundred
thousand dollars, which may be increased
to any sum not exceeding six hundred
thousand dollars, nor shall any independ-
cnt bank be established in any of said
counties, with a capital of less than one
hundred and fifty thousand dollars,
which may be increased to any sum not
exceeding three hundred thousand dol
lars.
SECTION II. The capital stock of each
bank shall be divided into shares of one
hundred dollars each, and shall be as
signable on the books of the company, in
such manner as its bylaws shall prescribe
but no shareholder shall have power to
sell or transfer any sales held in his W
right SO long as he shall be liable, either
as principal debtor, surety, or otherwise,
to the company, for any debt which shall
be unpaid; nor in such case shall such
shareholder be entitled to receive any
dividend, interest or profit on such
shares, so long as such liabilities shall
continue, but all such dividends, inter
ests or profits shall be retained by the
bank and applied to the discharge of such
liabilities, and no stocks shall be trans
ferred without the consent of majority
of the directors, while the holder thereof
is indebted to the company.
SECTION IL. No bank shall take, as
security for any loan or discount, a lien
on any part of its capital stock but the
same security, both in kind and amount,
shall be required of shareholders as of
persons not shareholders and no bank
shall be the holder or purchaser of any
portion of its capital stock, or of the
capital stock of any other incorporated
company, unless such purchase shall be
necessary to prevent loss upon a debt
previously contracted in good faith, or
security which at the time was deemed
adequate to insure the payment of such
debt, independent of any lien upon such
stock, or in case of forfeitures of stock for
the non-payment of installments due
thereon, as provided in the sixth section;
and stock SO purchased shall in no case
be held by the bank so purchasing for a
longer period Of time than six months, if
the same can be sold for what the stock
cost, or at par.
SFcTIoN Is. In all elections of direc-
tors, and in deciding all questions at
meetings of tho stockholders, each share
shall entitle the owner thereof to one
vote; stockholders may vote by proxies
duly authorized in writing, but no officer,
clerk, teller or book keeper Of the bank
shall act as proxy, and no s~tockholdeI
whose liability to the banks past due
and unpaid shall be allowed to vote.
SECTION Ia. The affairs of every bank
banking under the provisions of this act,
shall be managed by not less than five
nor more than nine directors. Every
director shall, during the whole term Of
his service, be a citizen of the United
States and a resident of this State. At
least three-fourths of the directors shall
have resided in this State one year next
previous to their election as directors;
each director shall own in his own name
and right at least one per cent. Of the
capital stock of the bank up to two hun
dred thousand dollars, and the half of
one per cent. on its capital over two
thousand dollars. The directors of each
bank, collectively, shall own at least one-
tenth of its capital stock. Each diroc-
tor shall take an oath that he will so far
as the duty devolYes on him, diligently