The weekly Ottumwa courier. [volume] (Ottumwa, Iowa) 1857-1872, 1858-04-29

dollar each, not more than ten per cent in notes
Of two dollars each, and not more than TWEEN
ty-fve per cent, shall be IN notes OF all denom-
nations under five dollars, and not more than
fifty per cent in notes of all denominations
under ten dollars.
$40. II any branch Of the State Bank of
Iowa shall refuse to pay its notes Of circula-
ton, or any Of them, in gold or silver coin. the
lawful currency Of the United States, on which
payment shall be lawfully demanded 1t its
banking house or customary place of doing
business, during the usual banking hours, such
branch shall be deemed to have committed an
act Of insolvency, and thereupon all its prop
erty, credits, securities, liens and assets of
every description shall forthwith vest in and
be the property, credits, securities. liens and
assets Of the State Bank Of Iowa, for the uses
said branch shall only be allowed to make pay.
ment Of any such lawful demand in silver
coin where the sum so demanded does not ex-
coed the amount for which silver coin is q
legal tender according to the laws of the Unit
ed States, and when payment shall be demand
ed 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 considered but one
demand.
s IL. The State Bank Of Iowa, on receiving
information that any branch has committed
such act Of insolvency, shall forthwith appoint
committee Of one or more of its Directors,
or others, who shall make immediate enquiry
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 suspended the payments
of its notes in gold and silver as provided in
section ten (lO,) it shall forthwith appoint a
suitable receiver or receivers, who shall take
immediate 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 other branches of
the State Bank Of Iowa, and the creditors of
the failing branch, and the State Bank of Iowa
shall Immediately provide money and place the
same in such solvent branch or branches, as
may be most convenient for the purpose of re-
deeming the notes of such failing branch, and
shall give public notice thereof in some news
paper printed in the place where such failing
branch is located: also in some newspaper Of
general circulation published in Iowa City.
IL. Each solvent branch shall cont ,ibute
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, by sale or hypotbecation of the
stock, funds, or other securities belonging
thereto.
13. The receiver or receivers appointed as
provided in the eleventh section, shall be re :
quired 10 give bond in such sum, and such Sc
curties as the State Bank of Iowa, or Execu-
tive Committee, shall Judge sufficient, and un-
der 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 oeen 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. .
Second: To reimburse all moneys advanced
from the Safety Fund, other than moneys de-
rived from that portion Of the Safety Fund
furnished by the failing branch.
Third: 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.
IA. II any branch against which the State
Bank Of Iowa shall have Instituted proceed
ings on account of any supposed act of insol-
vencv 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
injunction to said State Bank OF Iowa, to sus-
pend all further proceedings against such
branch as an insolvent Bank; and such court,
after citing said State Bank OF Iowa to ap-
pear 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 State Bank Of Iowa from
all further proceedings against such bank on
account Of the supposed act Of insolvency on
which such proceedings were instituted, and
thereupon all the property and assets of such
branch shall be restored to its Directors.
SIS. II the State Bank OF Iowa shall, in any
case, fail to proceed in the manner prescribed
in the foregoing section Of this act, in provi-
ding for the payment Of the outstanding notes
Of circulation, and in closing the affairs OF any
branch that shall have committed an act Of in
solvency, the holder of any Of its notes Of cir
culation, or other creditor Of such branch,
may, in case payment Of such notes Of circu-
la'ion or other claim has been refused when
lawfully demanded. and remains unpaid, ap-
ply to any court of competent jurisdiction for
its writ, commanding the State Bank Of lows
so to proceed and it shall be the duty OF such
court, after citing such Bank to appear and
chow carse why such writ should not issue
and upon finding Of a jury that such act Of in