The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1856-05-14

De Sufnclent TO reuecm It's outstanding
notes of circulation, shall, as far as prac-
ticablc, be first converted into money
and applied to that purpose before any
part of the safety fund belonging to
other branches shall be SO applied.
SECTION 48. The stockholders collec-
lively, 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-third part of the
capital stock of such branch, then actu-
ally paid in, and remaining as capital
sock; nor shall the directors, collective
ly, be so liable to an amount exceeding
one-third part of the stock actually paid
il, standing in their names, and of which
they are collectively the bona fde own
ers in their OWE right.
SECTION 40. Ifany branch of the bank
of Ohio shall refuse to pay its notes of
circulation, or any of them, in gold or
silver coin Of the lawful currency of the
United States, on which payment shall
be lawfully demanded at its banking
house or customary place of doing bank
ing business, during usual banking hours,
such branch shall be deemed to have
committed an act of insolvency, and
thereupon all its property, credits, secu-
rites, liens and assets of every descrip-
ton shall forthwith vest in and be the
property, credits, securities, liens and
assets of the Bank of Ohio, for the uses
and purposes declared in this act.
SECTION so. The Bank of Ohio, on re-
ceiving information that any branch has
committed an act of insolvency, shall
forthwith appoint a committee of one or
more Of its directors, who shall make
immediate inquiry into the truth Of such
information and report thereon to the
board; and if the board shall be satisfied
from the report of the committee that
such branch has suspended the payment
of its notes in gold and silver, they shall
forthwith appoint a suitable receiver or
receivers, who shall ! Ike immediate pos.
session, of the books, records, money,
chooses in action, and property of said
branch of every description, and ho'd
the same for the joint use and benefit of
and the creditors of the failing branch;
and said Bank of Ohio shall Immediate
ly provide money and place the same in
such solvent branch or branches as may
be most convenient for the purpose of
~redeeming the notes of such failing
branch, and shall give pubic notice
thereof in some newspaper printed in the
place where such failing branch is loca-
ted, and also in some newspaper of gen.
eral circulation published at Columbus.
SECTION 81. Each solvent branch shall
contribute, in the ratio of the circulation
to which it is entitled, to the sum neceE-
sary for redeeming the notes of the fall
ing b;anch, as provided in the preceding
section, on the requisition of the Bank
of Ohio, and may be ~remunerated for
such contributions, from the safety fund,
as soon as money sufficient can be raised
from that fund, BY a sale of hypotheca-
ton of the stock, funds, or other sccuri-
ties belonging thereto.
SECTION So. The receiver or receivers
appointed as provided in the forty ninth
section, shall be required to give bond
in such sum and with such securities as
the Bank of Ohio shall judge sufficient,
and under the direction of said bank,
shall proceed to settle up the affairs of
such branch, and convert its assets into
money the money so made shall be ap-
piled:
First-To reimburse all moneys which
shall have been advanced by the several
branches for the redemption of the notes
and bills of the i%nsolvent, branch, and
which may not have been previously re-
imburse1 from the safety fund.
Second-T, reimburse all moneys ad-
vanceG from the safety fund, other than
MOI eys derived from that portion of the
safety fund furnished by the failing
branch.
Third-To the payment and discharge
of all the remaining liabilities of each
branch; and
Fourth-The residue shall be divided
among the stockholders of the failing
b :anch, in proportion to the stock by
them respectively held.
SECTION SIS. If any branch against
which the Bank of Ohio shall have in-
stituted proceedings on account of any
supposed act of insolvency, as prescribed
by the forty-ninth section of this act,
shall deny having committed such act of
insolvency, such branch may apply to
any court of competent jurisdiction for q
writ of injunction to said Bank of Ohio,
to suspend all further proceedings against
such branch as an insolvent bank; and
such court, after citing said bank of Ohio
to appear and show why such writ
should not be granted, and after the
finding of a jury that such branch has at
all times continued, and still continues
60 redeem, in gold and silver coin, its
notes of circulation, shall make an order
enjoining the Bank of Ohio from all fur
Their proceedings against such branch on
account of the supposed act of insolven-
cy en- which such proceedings were in
stituted, and thereupon all the property
and assets of such branch shall be re-
stored to its directo rs
SECTION "a. 1.-THE Bank of Ohio shall
in any case, fail to proceed in the manner
prescribed in. the foregoing sections of
this act, in providing for the payment of
the outstanding notes of circulatioh, and
in closing the affairs of any branch that
shall have committed an act of insolven-
cy, the holder of any of it's notes of cir
~culation, or othor creditor of such
branch may, in case payment of such
notes of circulation or other claim has
been refused when lawfully demanded,
and remains unpaA, apply to any court
of competent jurisdiction for its writ
the Bank of Ohio so to pre-.
coed; and it shall be the duty of such
court, after citing such bank to appear
and show cause Why such writ should
issue, and upon the finding of a jury
that such act of insolvency has been
to issue their writ command
ing said bank to forthwith proceed in the
manner pointed out in the preceding
sections of this act, to provide for the