Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-06-03


and the creditors of the failing branch; and said
Bank os Ohio shall Immediately provide money
and place the same in such solvent branch or
branches as may be most convenient for the pur
of redeeming the notes Of such failing branch,
and shall give public notice thereof in some
newspaper printed in the place where such fail
ing branch is located, and also in some news
paper OF general circulation published in Colum-
bus.
SEC. -. Each solvent branch shall contribute,
in the ratio of the circulation TO which it is enti
tied, to the sum necessary for redeeming the notes
OF the failing branch, as provided in the preced
ing section, on the requistion of the Bank of
Ohio, and may be remumerated for such eontri-
button, from the safety fund, as soon as money
sufficient can be raised from that fund, by sale
or hypothecation of the stock, funds, or other Sc
curities belonging thereto.
SEC. l3. The receiver or receivers appointed as
provided in the eleventh section, shall be requr-
ed to give bond in such sum and with such seeu-
ritles as the Bank of Ohio, or Executive Commit
tee. shall judge sufficient, and under the direc-
ton 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 applied:
First-To reimburse all moneys which shall
have been advanced by the several branches,
for the redemption of the notes and bills of the
insolvent branch, and which may not have been
previously reimbursed from the safety fund
Seeond-To reimburse all moneys advanced
from the safety fund, other than moneys derived
from that portion of the safety fund furnished by
the failing branch.
Thlrd-To the payment and discharge Of all
the remaining liabilities, of such branch; and
Fourth-The residue shall be divided among
the stockholders of the failing branch, in pro-
portion to the stock by them respectively held
SEC. IA. If any branch against which the
Bank Of Ohio shall have instituted proceedings
on account of any supposed act of insolvency, rs
prescribed by the eleventh section of this act,
shall deny having committed such act of insol-
veney, such branch may apply to any court of
COMPETENT jurisdiction for writ of injunction to
said Bank Of Ohio, to suspend all further pro-
ceedings against such branch as am insolvent
bank; and such court, after citing said Bank Of
Ohio to appear and show cause why such writ
should not be granted, and after the finding of
Jury that such branch has at all times continued
and still continues to redeem, in gold and silver
coin, its notes of circulation shall make an order
enjoining the Bank of Ohio from all further pro
eeedipgs against such branch on account of the
supposed act of insolvency on which such pro-
ceedings were instituted, and thereupon all the
property and assets of such branch shall be re-
stored to its directors.
SIC. 10. If the Bank of Ohio shall, in any
sase, fail to proceed in the manner prescribed in
the foregoing sections of this act, in providing
for the payment of theNoutstanding notes of cir
culation, and in closing the affairs of any branch
that shall have committed an act of insolvency,
the holder Of any of its notes of circulation, or
other creditor Of such branch may, in case pay
ment of such notes of circulation or other claim
has been refused when lawfully demanded, and
remains unpaid, apply to any court of competent
jurisdiction for its writ, commanding the Bank
of Ohio so to proceed; and it shall be the duty of
such court, after citing such bank to appear and
show cause why such writ should not issue, and
upon the finding of jury that such act of insOl
vency has been committed, to issue their writ
commanding said bank forthwith to proceed in
the manner pointed out in the preceding sections
of this act to provide for the payment OF the out
standing notes of such branch close up its af-
fairs, and make application of its assets.
SEC. l6. That if any branch shall neglect or
refuse to comply with any order of the Bank of
Ohio, requiring such branch 10 reduce its eireu-
lation or other liabilities. or to provide larger
amount of specie or other Means or to pay in its
stock. or to do or cease to do, any other matter.
or thing which said bank may deem necessary
for the security of such branch, or other branch
or branches, said bank, or dircctor thereof, act
ing for said bank, may apply to any judge Of
the supreme court or court of common pleas, or
any judge of superior court, or to any Judge of
any other court not inferior 10 the court of COM
mon pleas, by petition, in which the Bank of
Ohio shall be made petitioner, and the branch
implicated defendant setting forth the substance
of such order, or orders, and such neglect or re-
fusal, on the part of the branch, its officers or
agents, IN comply Herewith and if the president.
vice president or any director of the bank. shall
make affidavit of the truth of the facts therein
stated, it shall be the duty of such judge to al
low an INDUCTION, and to enjoin such branch, its
officers, agents. and all others in its employ. or
connected Herewith, fIom doing, or suffering, or
permitting to be done. any business whatever az
a bank, and from interIneddling with, or in any
manner dsposing of, the books, papers, money,
chooses in action, assets, property Of the branch
until the further order of the supreme court, or
some judge thereof. A petitition. rrciting the
proceedings had, shall be filed in the supreme
court at Columbus, as soon as injunction is al
lowed.
SIC. IL. Uron the allowance Of such iniune-
ton, the property, credits securities, liens, and
assets. Of every description, of such branch shall
forthwith vest in the Bank of Ohio, who shall
appoint receiver, to take possession of the same
as provided in the eleventh section Of this act
A certificate of appointment of such receiver, by
the Judge, or court, or clerk thereof, making the
same shall be sufficient authority to him TO take
possession of the books, property, and rights of
every description. of such branch, and shall be
full authority to the sheriff of the county, where
the branch is located, to give the receiver full
possession of such books, property and rights,
with the aid Of the county, if required; and said
bank and receiver shall be governed by the pro-
visions of this act, as provided in cases Of sus
pension; and upon the dissolution of such injunc.
e L. Al,
bank, all the rights and property Of such branch
shall be restored to and vest in said branch.
SEC. Is. The directors of the bank of Ohio.
they may deem it expedient, may estab-
lish an office in each or either Of the cities of New
York, Cincinnati and Cleveland. for the receipt |
of deposits and redemption Of the circulating !
notes of the branches, upon such terms as they |
may, from time to time prescribe, and also a
clearing house at ColuIs bus. They may make |
all rules and regulations necessary to the good |
of such offices and clearing house. |
require the several branches to contribute to the
capital of such offices, not exceeding five per
cent Of the stock paid in by each branch, and /
compel the branches to make their collections I
and deposits with said offices and to employ all /
such officers and agents rs may be necessary.-I
The net profits of said offices shall be divided /
among the branches equitably. The Office in |
New York, in transacting business at that place,
may take, reserve and reeciv, such rate Of inter
est ms is or may be lawful by the laws of the
State of New York, and no mere.
SEC. IS. The Bank IF Ohio. after establishing 4
its agency in New York. shall, when required by |
the proper officers of the State of Ohio, discharge
the duties of transfer agent Of the State, and re-
ceiye and disburse for the State all moneys ne
cessary to be received and discussed in that CITY,
in the payment of the public debt and interest
thereon, without compensation or charge for such
service, and until such moneys shall be actually !
paid out for such purpose or purposes; and said |
shall, if they deem necessary, /
take such good and sufficient security as they /
may deem proper, to secure the repayment Of said I
moneys, which shall be taken in the name of the |
State of Ohio, and deposited in the office Of the
Auditor Of State.