Quasqueton guardian. (Quasqueton, Buchanan County, Iowa) 1856-1858, 1858-05-06

SuCn DTdlCn SHail Do uceDleu W nave
committed an act of insolvency, and
thereupon all its property, credits, secu-
rites, liens and assets of every descrip-
ton shall forthwith vest in and be the
property, credits, securities, liens and
assets of the State Bank of Iowa, for the
uses and purposes declared in this act
And the said branch shall only be allow
ed to make payment of any such lawful
demand in silver coin where the sum SC
demanded does not exceed the amount
for which silver coin is legal tender
according to the laws Of the United States,
and when payment shall be demanded on
more than one of its notes at the same
time, the aggregate amount of such notes
so presented for payment to the amount
of one hundred dollars shall be consid
cred but one demand.
s II. The State Bank of Iowa, on re.
ceiving information that any branch has
committed such act of insolvency, shall
forthwith appoint committee OF one OF
more of its directors, or others, who
shall make immediate inquiry into the
truth of such information, and report
thereon to the bank and if the bank
shall be satisfied from the report of the
committee, that such branch has sus-
pended the payments of its notes in gold
and silver, as provided in section ten
(10), il shall forthwith appoint suitable
receiver or receivers, who shall take I'M
mediate possession Of the books, records,
money, chooses in action and property OF
such branch, of every description, and
hold the same for the joint use of the 9th
er branches of the State Bank of Iowa,
and the creditors Of the failing branch,
and the State Bank OF Iowa shall imme-
diately provide money and place the
same in such solvent branch or branches
as may be most convenient for the pur
pose of redeeming the notes of such fail
ing branch, and shall give public notice
thereof in some newspaper printed in the
place where such failing branch is loca-
ted, also in some newspaper of general
circulation published in Iowa City.
: l2. Each solvent branch shall con-
tribute in the ratio of the circulation to
which it is entitled, to the sum necessary
for redeeming the notes of the failing
branch, as provided in the preceding
section on the requisition of the State
Bank of Iowa, and may be remunerated
for such contribution, from the Safety
Fund, as soon as money sufficient can be
raised from that fund bya sale or hypothe-
cation of the stock, funds or other secu-
rites belonging thereto
s 13. The receiver or receivers ap-
pointed as provided in the eleventh sec
ton, shall be required to give bond in
such sum, and such securities as the
State Bank of Iowa, or executive com
mittee. shall judge sufficient, and under
the direction 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 re-
imbursed from the safety fund.
Second, To reimburse all moneys ad-
vanced from the Safety Fund, other than
moneys derived from that portion of the
Safety Fund furnished by the falling
branch.
Third, To the payment and discharge
of all the remaining liabilities of such
branch, and
Fourth, The resilue shall be divided
among the stockholders of the failing
branch, in proportion to the stock by
them respectively held.
5 Id. Ifany branch against which the
State Bank of Iowa shall have instituted
proceedings on account of any supposed
act of insolvency as prescribed by the
eleventh section of this act, shall deny
having committed such act of insolvency
such branch may apply to any court OF
competent jurisdiction for writ Of in
june ton to said State Bank of Iowa, to
suspend all further proceedings against
such branch rs an insolvent Bank and
such court, after citing said State Bank
of Iowa to appear and show cause why
such writ should not be granted, and af-
ter the finding of jury that such branch
has at all times continued, and still con-
tinue5 to redeem in gold and silver coin,
It's notes of circulation, shall make nm
order enjoining the State Bank Of Iowa
from all further proceedings against such
branch on account Of the supposed act
of insolvency on which such proceedings
were instituted, and thercupon all The
property and assets of such branch shall
be restored to its directors.
: l5 Iii the State Bank of Iowa shall
il any case, fail to proceed in the manner
prescribed in the foregoing sections OF
this act, in providing for the paymen! OF
the outstanding notes of circulation, and
in closing the affairs of any branch that
shall have committed an act Of insolvency,
the holder of any of its notes of circula-
ton, or other creditor of such branch,
may, in case payment ofsuch notes of cir
culation or other claim has been refused
when lawfully demanded, and remains
unpaid, apply TO any court of competent
jurisdiction for its writ, commanding the
State Bank of Iowa SO to proceed and il
shall be the duty of such court, after ci-
ting such Bank to appear and show cause
why such writ should not issue, and up
on the finding of a jury that such act OF
| insolvency has been committed, to issue