Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1858-04-24

r has committed such act of insolvency
: shall forthwith appoint committee O
/. one or more of its Directors, or other
n who shall make immediate enquiry int,
5 the truth Of such information, and re-
port thereon to the Bank and if tn,
Q Bank shall be satisfied from the repor
Of the committee, that such branch ha
. suspended the payment of its notes il
gold and silver as provided in section
ten 10Y, it shall forthwith appoint
suitable receiver, or receivers, who shall
take immediate possession of its books
records, money, chooses in action anc
property Of such branch, of every de-
scription, 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 in
solvent branches as may be most conve-
nient for the purpose Of redeeming the
notes Of such failing branch, and shall
give public notice in some newspaper
printed in the place where such failing
branch is located, also in some newspa-
per Of general circulation published at
Iowa City.
5 IL. Each solvent branch shall
contribute in the ratio of the circula-
tion 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 mon
ey sufficient can be raised from that
fund, by sale or hypothecation of the
stock, funds, or other securities belong
ing thereto.
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,
mlttee, shall Judge sufficient, and under
the direction Of said Bank, shall pro-
ceed to settle up the affairs Of such
branch, and convert its assets into
money; the money SO made shall be
applied
1st-To reimburse all the 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.
2d-To reimburse all moneys ad-
vanced from the Safety Fund, other
than moneys derived from that portion
Of the Safety Fund furnished by the
failing branch.
Sd-To the payment and discharge
Of all the remaining liabilities Of such
branch.
4th-The residue shall be divided
among the stockholders of the failing
branch, in proportion to the stock by
them respectively held.
5 IA. If any branch against which
the State Bank Of Iowa shall have in
stituded 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 in
solvency, such branch ma aypply to
any court OF competent jurisdiction for
awrit Of injunction to said State Bank Of
Iowa, to suspend all further proceedings
against such branch as 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 after the finding of jury
that such branch has at all times con-
tinued, and still continues to redeem in
gold and silver coin, its notes Of circul-
atien, shall make an order enjoining the
State Bank of Iowa from all further
proceedings against such branch on ac-
count Of the supposed act of insolvency
on which such proceedings were institu-
ted, and thereupon all the property and
assets of such branch shall be restored
to it's Directors.
s Is. If the State bank of Iowa
shall, in any case, fail to proceed in the
manner prescribed in the foregoing Sec
tions of this act, in providing for the
payment 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 or circulation, or other
creditor Of such branch, may, in case
payment of such notes of circulation or
other claim has been refused when law
fully demanded and remains unpaid,
apply to any court Of competent jurls-
diction for its writ, commanding the
State Bank Of Iowa so to proceed and
it shall be the duty of such court, af-
ter citing such Bank to appear and
show cause why such writ should not
issue, and upon the finding of jury
that such act Of insolvency has been
committed to issue their writ command
ing said Bank forthwith to proceed in
the manner pointed out in the preceding
sections Of this act, to provide for the
payment of the outstanding notes of
such branch, close up its affairs, and
make application Of its assets.
) 16. That if any branch shall neg
lect or refuse to comply with any order
Of the State Bank of Iowa, requiring
such branch to reduce its circulation or
other liabilities, or provide larger
amount Of specie or other means, to
pay in its stock, or to do, or cause to
be done any matter or thing which said
Bank may deem necessary for the Sc
curity of such branch, or any other
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