The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1856-07-02

er5 shall examine the certificates of the for1aa-
ton of banks, transmitted to them as required
by the fourth section of this act, and shall, by
one of their own members or, other special
agent appointed by them for that purpose who
shall not be stockholder in any of the banks
formed under this act, Immediately proceed to
examine the condition of each of the banks
which shall have transmitted to said boardShe
required certificate; and it shall be the espe.
eial duty of such agent to carefully count or
otherwise ascertain 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 that their stock
holders, directors and officers are men of re-
sponsibility 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
requirements of this act necessary to entitle the
bank to engage in the business of banking,
and shall cause to be made and attested by the
oath of majority of the directors, and by the
cashier of such 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 commence the bu-
siness of banking under the provisions of this
act, and such agent shall Immediately report
to the board of bank commissioners such state
ment and his proceedings in the premises.
SECTION 8. If, upon careful examination
of the certificates of association, and the re-
ports and statements of the special agents ap-
pointed to ascertainswhether the banks SO or
ganized have complied with the provisions of
this act, it shall appear that any such banks
have been formed, and that their stockholders,
directors and officers are men of responsibility
and integrity. and entitled to public confidence,
and that such banks any of them are law
fully entitled to commence the business of
banking, the commissioners shall certify the
same to the governor, who shall, il he be sat
isfed that the law has in all respects been COM
piled with, issue his proclamation, setting forth
that such banks authorized to commence
and carry on banking, at the places severally
designated in their certificates of association.
SECTION g. No bank shall be organized I'M
der this act, as q branch of the bank of Ohio,
in the county of Hamilton, with n less capital
than five hundred thousand dollars, which
may be increased to any sum not exceeding
one million of dollars. Nor shall any inde-
pendent bank be organized under this act in
said county, with 2 less capital than two hun
dred and fifty thousand dollars, which may be
increased to any sum not exceeding five hum
dred thousand dollars; provided 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 established
under this act as branch of the bank of Ohio,
in the Counties of Cuyahoga, Montgomery,
franklin or Lucas, with a capital less than
three hundred thousand dollars, which may be
increased to any sum not exceeding six hun-
dred thousand dollars, nor shall any indepen-
dent bank be established in any of said coun-
l. ~ - n.
and fifty thousand dollars, which may be in
creased to any sum not exceeding three hun
dred thousand dollars.
SECTION IL. The capital stock of each bank
shall be divided into shares of one hundred
dollars each, and shall be assignable on the
books of the company. in such manner as its
bylaws shall prescribe, but no shareholder
shall have power to sch or transfer any shares
held in his own 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, bat all such
dividends, interests or profits shall be retained
by the bank. and applied to the discharge of
such liabilities, and no stocks shall bo trans
ferred without the consent of majority of the
tiitCtOIs, WiAltS tilc tHereOi 10 iIlucUtcu
to the company.
SECTION II. No bank shall take, as security
for any loan or discount, a lion on any part
of its capital Stock but the same security, both
in kind and amount, shall be required of share
holders 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, un-
less such purchase shall be necessary to pre-
vent loss upon debt previously contracted in
good faith, on security which at the time was
deemed adequate Ito insure the payment of
such debt, Independent of any lien upon such
stock, or i'll case of forfeitures of stock for the
nom payment of installments due thereon, as
provided in the sixth section and stock so pur-
chased shall in no case be held by the bank so
purchasing for q longer period of time than
six months, if the same can ho sold for what
the stock cost, OF at par.
SECTION 13. In, all elections of directors,
and in deciding all questions at meetings of
the stockholders, each share shall entitle the
vote by proxies duly authorized in writing, but
no officer, clerk, teller or book keeper of the
bank shall act as proxy, and no stockholder
whose liability to the bank is past due and un-
paid shall be allowed to vote.
ELECTION Ii. lne duilrS Oj every Udnk Or
ganized to carry on the business of banking
under the provisions of this act, shall be man
aged by not less than five nor more than nine
directors. Every director shall, during his
whole term Of service, be citizen of the United
States and resident of this state. AT least
three-fourths of the directors shall have resi-
ded in this state one year next previous to
their election as directors; each director shall
own in hs-own name and right at least one
per cent. of the capital stock of the bank up
to two hundred thousand dollars, and the half
of one per cent. on its capital over two hun
dred thousand dollars. The directors of each
bank, collectively, shall own at least one-tenth
of its capital stock. Each director shall take
an oath that he will so far as the duty devolves
on him, diligently and honestly administer the
affairs of the bank, and not knowingly violate
or willingly permit to be violated any Of the
provisions of this act; that he is the bona fide
owner, in his own right, of the stock standing
in his name on the books of the bank, and that
the same is not hypothecated, or in any way
pledged as security, for any loan obtained or
debt owing; which oath, subscribed by himself
and certified by the officer before whom it is
taken, shall be fled and carefully preserved in
the offceof the recorder Of the county in which
the bank is located; but no person shall be
IL efxr IL N.x~l