The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1857-10-09

in bank notes for circulation, registered and
countersigned by him. And the banks shall
not have, for twenty days together, on hand
at their place of business, in specie less than
ZEN per cent Of their circulation. Before COM
mencing business the banker shall make, nc-
knowledge, and cause to be registered in the
County Registers Office, memorandum
specifying, LIST. the name of the bank; Cd. the
place of business; 3d. the amount of capital
stock, and the number of shares; 4th. the
names and places of residence of the share
holders, and the number held by each; 9th. the
period when the bank shall commence and
terminate, not to exceed 90 years. These
conditions being complied with, and the
Comptroller having executed also his bond, in
such sum as the Governor may direct, the
bank is placed on the footing of corporation,
and entitled to the usual rights and liabilities
of such. The notes having been signed by the
bank officers, in such manner as to make
them obligatory promissory notes, payable on
demand al their place Of business, in this STATE
may be circulated as money.
The Comptroller is prohibited from issuing
an amount of circulating notes, exceeding the
aggregate value of the securities delivered to
him, under penalty of removal from office, and
being personally liable TO any note holder for
the full amount with interest, of any note or
notes that may be lost on account of his
failure to comply with the provisions of the
act.
Ifupon lawful demand between the hours
of ten and three o'clock, at the place where
the notes are made payable, the makers or
bankers shall fail or refuse to redeem such
notes, in lawful money of the United States,
the holder making such demand, may cause
such notes 20 be protested for non-payment
by notary public in the usual manner
Upon receiving the notice of such protest, the
Comptroller shall file the same in his office,
and forthwith give notice in writing, to the
makers or bankers, to pay the same, together
with all costs OF protest, and other damages
and charges arising out of such default; and
if they shall omit to do so for ten days after
such notice, then the Comptroller shall give
notice in three or more newspapers, publish
ed in the State, that all the circulating notes
Of such bank will be redeemed out of the
trust funds in his hands for that purpose
The Comptroller is required to apply the
trust funds to the payment, pro rata, Of ALI the
circulating notes, 'chether protested or not put
in circulation by The bank or makers. And the
Comptroller may after ten days, with the ad-
vice of the Governor and Attorney General,
proceed TO sell at public auction the stocks or
bonds, or any of them, deposited with him by
such failing banker; or, with the advice afore
said, he may postpone the sale, not more than
six months, after which he is required to pro-
coed as before mentioned. The costs of pro-
test, &c, shall be first paid by the person
procuring such services, but the bank is liable
for the amount. But the costs are not to be
paid out of the trust fund, the bonds, until all
the circulating notes are redeemed-if then
there is au overplus it may go in that way
And if any bank shall be wound up in this
manner, the protest of the first note protest
ed, shall constitute a lien far the benefit Of The
creditors Of the bank, upon all the assets Of the
bank, not in The hands o(he Comptroller; and
any conveyance after such protest, shall be
uoid
On every note demanded and refused 10 be
redeemed, the banker shall pay damages, in
lieu of interest, at the rate Of ticelre per cent
per annum.
These are the provisions of most interest
at the present time. The Act goes on to
specify that the shares of stock shall be held
as personal property and be transferable on
the books of the Company. That the prop
erty of the bank shall be liable TO execution
and sale on judgments and DEGREES That the
banks may hold real estate, when necessary
for the transaction of business or mortgaged
in good faith; or conveyed for debts owing TO
them or purchased under judgments held by
il: That they shall furnish semi-annunl state.
ments to the Comptroller on the first of JAN
uary and July: That bonus of 25 cents in
each 100 dollars of capital, shall be retained
by the Comptroller in lieu of taxes: That the
bank shall be entitled to the interest accrung
on deposited bonds, for the redemption OF
their circulation: That legal proceedings shall
be conducted in the assumed name of the
hank, and service on the President or other
officer conducting the business, shall be good:
That they may increase their capital not ex-
ceeding hal! million, and the number Of
share holders at pleasure. Section Ia of the
Act provides that when the bonds OF the
State ARE deposited with the Comptroller they
shall thereafter be payable at Nashville, and
likewise the interest thereon; but should a
bank fail and b. wound up, then the interest
to be payable where the bonds are payable
The Legislature reserves the right to amend,
alter or repeal, this Act, in such manner MS
may work no injury 10 the banks, nor impair
any vested rights.
The Legislature Of 1854, so altered the
above Act ms to repeal that provision requir-
ing three. fourths of the securities deposited