Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1856-05-28
LAWS OF OHIO.
PUBLISHED By AUTHORITY.
II4.l AN ACT

sftks Stafe Of OAi0. That e shall be lawful for natu'
raj individual persons, not fewer in number in Any case
than Eve, to associate and form companies for the pur-
pose Of carrying on the business OF banking. each at
such place In this State as shall be designated in its ar
ticles Of association, and In the certificate hereafter re
CURED TO be made, subject, however TO the continaen-
oies; restrictions. conditions and liabilities prescribed
srcrIos ?. To carry into effect The provisions Of this
act, VIM. W. Scarborough. Of Cincinnati. Franklin T.
Bzckus. ofCIsveland. Chauneey N. Olds, Of Circlevil.e,
J. H. Finn, OF Columbus, aud Samuel Forrer, Of Day
ton. shall be. and they are hereby appointed commits
an oath diligently. faithfully and impartiaIly to perform
the duties assigned them by this act. a certificate Of
which oath shall be filed and carefully preserved in the
once OF the Secretary Estate, shall constitute a board,
TO be designated the board Of bank commissioners:
which board shall continue until the organization Of
the Bank OF Ohio, as hereinafter provided for, and
thereafter the duties which they are required to per-
form by this act, in the organization Of branches ofthe
Rank Of Ohio, shall he performed by said hank. and the
duties in the organization Of independent banks which
they are required by this act to perform. shall devolve
on and be performed by the Auditor. Treasurer and
Secretary Estate, who shall be commissioners to par
form such duties, and il any Of said commissioners
shall refuse to serve. shall die or resign, his place shall
be filled ny the General Assembly, by joint resolution,
ifin session, and IL not, by the Governor.
SECTION }. Said commissioners shall meet in the city
of Columbus, at such time, within thirty days after the
second Tuesday Of October next. as shall be appointed
by the Governor, who shall notify each member OF his
appointment, and Of the time and place OF meeting;
they shall. when met, appoint one of their number to
he their president, who shall, under the order OF the
board, sign all official documents; and they shall cause
affair and true record OF all their official proceedings
TO be kept in q book to be provided for that purpose.
SrcTIoS4 I. Persons asssOciating to form 4 bank shall,
under their hands and seals, make a certificate, which
shall specify,
First-The name assumed by such bank. and by
which it shall be known in its dealings, in which name
shall be included the name ofthe city, village or town
In which its banking operations shall be carried on;
Second-The amount Of the capital stock OF such
bank. and the number Of shares into which the same is
Third-The name and place of residence and the
number Of shares held by each member of the cOmpan-
Founh-The time when such company shall have
been formed;
Fifth-Thats such company has elected to carry on its
operations as an independent bank, or as. 'branch
Of the Bank of Ohio" as the case may be. which certi6-
cate shall be acknowledged before a Justice Of the
peace or notary public, and shall he recorded by the
recorder Of the county whers snch hank is to be estab-
Iished, in a book to be kept by him for that purpose.
which shall at all times during Office hours he kept
open for the inspection Of any person wishing to exam
ine the same one copy Of which certificate, duly certi-
ned- shall be trsnsmittedto the Secretary Of State, who
shall record and carefully preserve the same in his
once. and mother to the board OF bank commissioners.
SECTION S. No company shall be permitted to com
nence or carry on the business OF banking under this
act, as a branch Of the hank Of Ohio, unless its capital
stock shall be at last one hundred thousand dollars.
nor shall the capital stock Of any such branch ever be
increased to exceed four hundred thousand dollars, ex-
eept as specially provided for in this act. No indepen.
dent bank shall he organized under this act, with a
less capital than fifty thousand dollars; nor shall the
capital stock Of any such bank ever he increased to any
sum exceeding two hundred thousand dollars. except
as specially provided for in this act. At least fifty per
: cent OF the capital stock OF each company shall be paid
in gold and silver coin, or their equivalent; one half Of
Nh Gu uIfy Ier cent u least snail be IN gold and silver |
coin, and shall be in the actual possession and bona
nde the property OF the company at the time OF the
commencement OF its banking business, and at the
place designated for carrying on such business, aud
the remainder Of the capital stock Of such bank shall
be paid in, in instaIlments, each OF at I~eastten per cent
on the whole amount of the capital subscI ibed. as fire.
Quertly as once in every four successive months, from
the time Recommending business untilthe whole amount
Of such capital shall be paid un. Provided. that The di- |
rectors Of the bank Of Ohio may extend the time for
the payment OF such deferred in~staliments. or any part
Of them. to the branch hanks. when satisfied that the
rh1e. t,Naroae H.. - - -.-,.-a A. - n
quenfly as above provided for. and the governor may
grant to the independent bank the like extension for
SECTION G.. II any shareholder or his assignee shall
fail 70 pay any iustallment on his stock when the same
shall be required to be paid. the directors may sell said
stock At public auction, having given three weeks pre-
vious notice thereof. in q newspaper published in the
county where the bank is located, to any person who
will pay the highest price therefor, not less than the
suount then due thereon; and the excess, If ary, aEer
pa5i q the expenses Of the sale, shall be refun led 10
the delinquent stockhoIder. II no bidder can be founJ
Who win pay for such stock the amount due thereon to
the bank, and costs Of advertisement and sale, the
amount previously paid shall be forfeited to the bank;
and such stock may be subsequently sold in such man
Rer As the directors my order |
SECTION Z. The board OF bank commissioners shall
examine the certificates Of the formation 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 he q stockhOicer in any Of the banks
formed under this act. Immediately proceed to examine |
she con lition Of each Of the banks which shall have
transmitted to said board the required certificate; and
it shall be the especial duty OF such agent to carefully
count or otherwise ascertain the amount OF money paid /
IN on account Of its capitai stock TO ascertain the name
and place nj residence OF each Of the directors Of such
hank and that their stockholders, directors and officers !
are men OF responsibility and integrity, and entitled
to the public confidence. and the amount OF capitzl
stock Of which each is the bona fde owner. whether
such bank has complied with all the requirements Of
this act necessary TO entitie the bank to engage in the
business OF banking. and shall cause to be made and
att=Eted by the oath Of majority OF the directors, and
by The cashier Of such hank, a statement Of all the ma
terial facts necessary to enable the board Of bank COM
mistioners to determine whether such hank is lawfully
entitled to commence the business OF banking under
the provisions OF this act and such agent shall imme-
dist-ly report to the board Of bank commissioners
such statement and his proceedings in the premises.
SECTION 8. II, upon a careful examination of the CIR
tincxtes ofassoci ton, and the reports and statements
OF the special agents appointed to ascertain whether
she banks so organized have complied with the provis-
have been formed. and their stockholders, directors
and officers are men Of responsibility and int grrty,
and entitled to public confidence, and that such hanks
or any Of them are lawfully entitled TO commence the
business OF banking, the commissioners shall certify I
the same to the governor, Who shall, il he be satisfied .
that the law has IL all respects been complied with, is :
sue his proclamation setting forth that such banks are ,
authorized TO commence and carry on banking, at the !
places severally designated in their certificates Of as !
sociation. q
SECTION .. No hank shall be organized under this
act, as > branch Of the hank of Ohio, in the county of 8
III tnilton, with a less capital than five hundred thou :
sand dollars, which may be increased to any sum not !
exceeding one million Of dollars. Nor shall any indie
bank be organized under this act in said coun- !
~. with a less capital than two hundred and fifty thou s
sand dollars. which may be increased to any sum not 5
exceeding nfe hundred thousand dollars. provided. |
IN TO case where the capital stock ofan independ- (
ent bank is named in this act, shall the certificates Of D
p1elie debt required to he deposited by such banks D
any part OF such capital stock. Ii
SECTION 10. No bank shall be est ihlished under this
act IS n hranch-ot the bank Of Ohio, in the counties of a
Cuyahoga. Montgomery, Franklin or Lucas. with a can b
ital less than three hundred thousand dollars, which p
may be increased to any sum not exceeding six humid c.
red thousand dollars, nor shall ans iEdependent bank
be established in any Of said counties, with a capital Of e.
less than one hundred and fifty thousand dollars, Il
three hundred thousand dollars. n
SECTION IL. The capital stock of each bank shall he
divided into shares Of one hundred dollars each, and II
shall be assignsble on the books Of the company. in
such manner as its bylaws shah prescribe, hui no b
shall have power to sell or transfer any u
snares held IN MS own right so long as he shall be LA oi
either as principal debtor, surety, or otherwise, to
The company, for any debt which shall be unpaid: nor o.
In such case shall such shareholder be entitled to re- N
ceive any dividend, interest or profit on such shares. do
% long as such liabilities shall continue, hut all such VI
dividends, interests or profits shall be retained bv The Al
bank and applied to the discharge of such liabilities,
md no stocks shall be transferred without the consent q
3 majority Of the directors, while the holde. thereof ?!
indebted TO the company. "
SECTION le. No bank shall take. as security for any
loan or discount, = lien on any part of its capital stock, pc
but the same security, both in kind and amount. shall IN
oe required Of Shareholders as Of persons not ~sharehol- pr
iers; and no hank shall be the holder or purchaser of
my portion Of its capital stock, or Of the capital stock n
any other incorporated company, unless such pur- u
,hase shall be necessary to prevent loss upon a debt or
ereviously contracted in good faith, on security which pc
Il the time was deemed ADEQUATE O insure the paFment en-
u such debt, independent Of any lien upon such stock. ne
or in case Of forfeitures OF stock for the non-payment sc
attachments due thereon. as provided in tie sixth 40
'ection; and stock so purchased shall in no case be IN
by the bank so purchasing for a longer period of IN
than six months, il the same can be sold for what M
he stock cost. or at par. LOT
SECTION ID. In all elections Of directors. and in deci- sh
ling all questions at meetings Of the stockholders, ne
ach share shall entitle the owner thereof to one vote; %
may vote By proxies duly authorized in Pi
rriting. but no officer, cleck. teller or book-keeper of re-
he bank shall act IS proxy, and no stockholder whose .'
to the bank is past due and unpaid shall be al ny
to vote. IN
sEcrioN IL. The Affairs OF every bank organized to nj
srry on the business of banking under the provisions =
Z this act, shall be managed by not less than five nor ~
than nine directors. Every director shall, during va
ns whole term Of service, he a citizen Of the United y
tates and a resident Of this Stale. At least three tnt
ourths oil the directors shall have resided in this Stale ee
ne year next previous to their election as directors uS'
ach director shall orn in his own name and right at cel
East one per cent. OF the capital stock Of the hank mp pa!
o two hundred thousand dollars al tbe h.IT ~ ~ up'
er cent. on its capitai over two h,nJ-o5 ,bo,s..5 no
ollsrs. The directors OF each hank caiIac,;raIr .ba;i bet
IN at least onetenth Of its capital stock. Zach di- {
rotor shall take an oath that he Will so far as H. dn,y AM
evolves on him. diligently and honestly administer OF
he Affairs Of the bank, and not KNOWINGLY violate ~ Der
illiugiY ne rmit to be violated any of the prnvf.;o,. clu