Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-03-28
ARTICLE 5.
CORPORATIONS.

Sec. /. No cooperation shall DO crea-
ted by special law: hu. tho General As
sembly shall provide bv genrerel laws,
for the organization Of all corporition
hereafter 10 be created, except as here
matter provided.
SEC. =. The property OF all corpora
tons or pecuniarv profit. now existing.
or hereafter created, shall be subject to
taxation, the came as that of individ.
uals.
SEC. 3. The State shall not become
q stakeholder in any corporation, nor
shall il assume or pay the deb. or liabil'
iiy of any.
Src. i. No p1li.ic,l or municipal cor.
poration shall become a stakeholder 10
any banking corporation, directly or
indirectly.
SIC. 5. No act OF the General Assem-.
bly, authorizing or creating corpor atoms
or associations with banking powers,
nor amendments thereto shall take ef.
feet, or in any manner be in force. un.
I'll the same shall have been submitted.
separately, to the people, at general Or
special election, as provided by law,
to be held not less than three mon h. az
ter the passage of the ret, and shall have
been approved by majority OF all the
electors voting for and against it at such
election
Sec. 6. Subject to the provisions Of
the foregoing section, the General As
sembly may also provide for the estab.
lishmcn, OF State Bank with branches.
IL N l. L
it shall! be founded on an actual specie
basis, and the branches shall be mutual.
ly responsible for each others liabilities
upon oil notes, bills and other issues, in
tended to circulate as money.
SIC. s. Ii . general banking law
shall be enacted, it shall provide for tie
registry and countersigning, by an officer
of State Of all bills, or paper credit
designed to circulate IS money, and
require security to the full amount
thereof, to b" deposited with the State
Treasurer, United States stocks, or in
interest paying stocks Of states in good
credi@ and standing, to be rated at ten
per cent below their averege value in
the city Of New York, for the thirtg
days mex. preceding their deposit: All
IN case ct depreciation Of any portion
Of said stocks, to tho amount of ten rer
cent, on the dollor, the bank or banks
owning said stocks shall be required to
make up said deficiency By deposising
additional stocks, and said law shall al
so provide for the recording OF the
names OF all stockholders in such corpor.
ations, the amount OF stock held nv
each, the time of any transfer, and to
whom.
Src. Q. Every stockholder in han
king corporation or institutions shall b.
individually responsible and liable 10 i,s
creditors. over and above tho amount
OF stock By him or her held, to
an amount equal to his or her respective
shares 90 held, for ell its liabilities, 40.
cruing while he or shc remains such
stakeholder.
Sec. 10. In case Of tho insolvency of
any banking institution, the bill FOLDERS
shall have preference over ito other cred /.
itors.
SEC. II. The suspension OF specie n
ments BY banking institutions shall never
be permitted or sanctioned.
Sec. IL. Subject TO the prov isions OF
this article, the General Assembly shsll
have power to amend or repeal all laws for
the Organization or creation of Corporations,
or granting OF special or exclusive privile,
geS or immunitiss, BY vote Of twe. thirds
Of each branch Of tie General Assembly;
and no exclusive privileges, excepl % s
this article pssvidsd, sAall ever b granted.