Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1858-05-01

against sucn corporation Tor any Get
or liability of such corporation, sha,
be enforced against the property o
the same, except such judgments or de
crees as may be obtained against share
holders as herein provided.
5 IA. The Auditor shall give t.
any corporation so transferring stock
in pursuance Of the provisions Of thi
act power of attorney to receive inter
es,s on dividends thereon, and apply t,
their own use; but such power may b
revoked upon such corporation failing
to redeem the circulating notes so is
sued, or whenever in the opinion Of thu
Auditor the principal of such stocl
shall become insufficient security ; ant
whenever any such corporation shall g
INTO liquidation, or in any other man
ner proceed to close up its affairs, the
Auditor shall upon application Of thu
owner or owners of such stock, re.
transfer for the same or any part there.
Of to such owner or owners upon receiv'
ing and cancelling an equal amount ol
such circulating notes delivered to him
by such corporation in such manner
that the circulating notes outstanding
shall always be secured in full by the
pledge of stocks, which cancelled Cir
culating notes after descriptive lists
thereof have been made and recorded
by the Auditor and Treasurer shall, in
presence Of these officers be consumed
by burning, and in case they shall fail
to so burn any notes returned to
them for that purpose, they shall be
deemed guilty Of felony, and liable to
a fine of not more than S., 900 and i'm
pTisonment in the Penitentiary not less
than five nor more than twenty years
5 Is. In case such corporation shall
fail or refuse to pay any note or bill on
demand in the manner specified in the
28th ction Of this act, the Auditor,
after ten days notice given in two
newspapers printed in the city of New
York, the public stock SO pledged, or
such portion as may be necessary, and
out Of the proceeds Of such sale shall
cancel and pay the said bill or note de-
fault in paying which shall have been
made as aforesaid but nothing in this
act contained shall be considered as
implying any pledge on the part Of the
State for the payment Of said bills or
notes beyond the proper application Of
the securities pledged to the Auditor for
their redemption.
5 16. The public stock deposited
with the Auditor by any such corpora
ton shall be held, first, for the secu-
rity Of notes Of such corporations put
in circulation as money until the same
are returned as herein provided, second,
for the payment of deposltors, third,
for the payment Of all other liabilities
and the excess for the use of stock
holders.
5 II. The plate, dies and materials,
which may be furnished by the Auditor
e.. Fer the printing and marking of the
notes provided for hereby, shall remain
in his custody and under his direction,
and the expense incurred in executing
the provisions of this act shall be aud
tied and settled by the Auditor, and
paid out Of any money in the treasury
not otherwise appropriated; and for
the purpose Of reimbursing the same,
the said Auditor is authorized and re-
quired to charge against and receive
from such corporation applying for
such circulating notes, such rate per
cent thereon as may be sufficient for
that purpose.
s Is. 1t shall not be lawful for the
Auditor or other officer to countersign
notes for any corporation, to any
amount IN the aggregate exceeding the
public stock deposited with the Treas
urer by such corporation rated as pro-
vided in the third section Of this act,
and any Auditor or other officer who
shall violate the provisions Of this Sec
ton, shall, upon conviction be adjudgcd
guilty Of a felony and shall be punished
by fine Of not less than five thousand
dollars, and be imprisoned not less
than five years in the Penitentiary.
5 10 Every corporation under the
provisions of this act shall be liable to
pay the holder Of every note put in cir
culation, the payment Of which shall
have been demanded and refused, dam
ages for the nonpayment thereof in lieu
Of interest at the rate of twelve and one
half per cent per annum from the time
of such refusal, until the payment Of
such debt and the damage thereon Pro-
vided, that no damage shall be allowed
on such demand after the bank has gone
into liquidation. The President and
cashier Of every corporation formed
pursuant to the provisions Of this act,
shall keep true and correct list of the
names of all the share holders Of such
corporation, and shall file copy of
such list in the Office of the Clerk Of
the county where the office Of such cor
poration may be located, and also in
the office Of the Auditor on the first
Monday in January in every year, but
the holder Of any claim against such
bank or corporation payable on demand
or due at the time Of going into liqul-
dation, shall be entitled to interest at
the rate Of ten per cent per annum until
paid, and all other claims shall bear the
same rate Of interest after maturity.
s 20. 1t shall not be lawful for any
corporation under this act to make any
Of it's notes put in circulation as money,
payable at any other place than at the
Office where the business Of the corpor-
alton is carried on; every corporation
which may be authorized under the pro-
visions OF this act shall be located in
some city, town or village having pop
ulation Of not less than five hundred in