Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-16
A ELL
To Reform and and Regulate the Business Of Banking
4.

81 Tennessee.
SECTION /. Be Il enacted by he General ASSEMBLY Of
the State of Tennessee. That every Bank which now
is or may hereafter be Incorporated under the au-
thority of this State shall be subject to the Iabiii-
ties and governed by the rules and provisions con-
tanned in this act.
SEcrfoy 9. BE II further enacted. That no Bank in
this State shall issue any note nopayabe on its face
at the counter where issued; nor shall any Bank
pay out any note not payable at Its counter FRO
Cied that any principal Bank may pay out the notes
made payable at its branches. but such branch notes
shall by law. be also payable at the couRter of the
principal Bank; and no Bank note shall be issued Of
a less denomination than ten dollars.
SECTION > Re further enacted, That the capital
stock of each Bank in this State shall be paid IN
coin, and that substitute or equivalent shall be
received in lieu thereof and no part Of the capital
stock Of any Bank shall be sold or transferred until
the whole amount thereof shall have been paid IN.
Nor shall any loan be made to any stakeholder, until
he shall have paid the full amount OF his shares OF
stock
SECTION T. Be Il further enacted, That the capital
stock of no Bank in this State shall exceed two mil
lion dollars nor shall any Bank commence the bus
mess of banking with less paid capital stock than
seven hundred and fifty thousand dollars And 1t
shall be the duty of the supervisor to examine and
report TO the Governor. that this is actually
paid in before any Bank shall commence business.
SECTION s. BE Il further eadcal That it shall not be
lawful for any Bank in this State, directly or lndl
amount of its actual solvent assets or use or EN-
plov any of its moneys goods chattes, or effects in
trade, or commerce; and no Bank shall hold or own
more real estate thga is necessary to carry on Its
banking business POOUided however, it may receive
mortgages OF assignments for debts previously con
Iacted and purchase in real estate thus mortSaged
or ASSUMED but not hold the same for longer pc
riod than three years.
Section t. Be q further eRucfed That no Bank in
this State shall permit It's issues to exceed the pro-
portion of two for one of its specie funds consisting
of coin, notes of specie paying Banks, and sight ex
change. Nor shall any Bank permit its com TO be
reduced below Oe-fOurth Of its Immediate cash Ia
bities and it shall be the duty of each and every
such Bank all times to own and keep on hand, an
amount OF specie funds equal to Onehlrd OF Its en-
tire liabilities.
SECTION :. Be further eaacial. That no Bank shall
employ in its business dividends due TO ITS stock
holders unless the same made a part Of the per-
manent paid capital stock of the Bank, by the stock
holders To whom the same are due and owing
SECTION \ Be 4 further enacted, That with the
view to make the capnal stock Of Banks perma-
nent and To guard against the destruction OF the
same that the Board Of Directors OF each Bank, at
the end Of every six months, shall make thorough
examination Of the condition of their respective
Banks and ascertain nearly As possible the total
amount of tn. bad and doubtful debts due TO the
same which shall be reported TO the Board and
sDread upon the minutes thereof; and if it appears
from this report and examination that no pronts have
been made these periods OF any one OF them, be-
vond the amount of bad and doubtful debt, then no
dividend shall be made until similar examination
shall show that the profits do exceed the bad and
doubtful debt and then dividends may be declared
out of this excess Of profits.
SECTION 9. Belt further enacted, That no Bank shall
be chartered for a greater period than fifteen
years.
shall make monthly statements under the oath of Its
President and Cashier. TO the Comptroller OF the
State of its true condition This statement shall
show under separate heads the amount OF CON- inc
sums due from Banks in this State the amount Cue
from Banks out of the State, and the entire amount
of its bills notes. and other assets. Ii shall also
show the entire extent o. its liabilities. including ITS
circulation &c; which report, when made and YER
flied shall be published according to law.
SECTION /. BE IL further enacted, mat no banK
shall deal in uncurrent money or pay out the notes
of other Banks; and when in state OF suspension
shall not take or receive more than one per cent
for exchange: and shall pay into the Treasury OF the
State one half OF per cent on Its capital stock
whilst thus remaining in suspension.
SECTION Y. Be 4 further enacted, That no bank
shall procure another to give credit to its crcula
tior through any security or indemnity given for SC
doing unless the terms of the arrangement are pub
Iished from time 70 time during the term of It's exis
tence in some newspaper in of each OF the cities OF
Nashville, Knoxville and Memphis
SECTION l3. Be Il further elacted, That each bank
shall keep a book for the registry of the number
denominatied and amount of its notes intended Ior
circulation and tina. before the same are placed Ii
circulation, the Supervisor Of Banks shali sA
anime the notes. compare them with the registry
see that they are correctly registered and certify
tho IA It upon the book and thaf he shall procure
an exact copy of the same, and report TO the Cohp
troller, who shall publish it according TO law ano
This shall be done often As she bank may uesre u
10 increase its circulation. If the officers oil any
Rank shall wilfully put in circulation any note OF
notes not registered herein provided, sUcn ON
cers shall be guilty Of a msdcmeanor and on con
vIctiop shall be severally fined not less than nv'
hundred dollars, and imprisoned not less than sA
nor more than twelve months.
SECTION Il. Be Il further enacted, That no part Q
+bs canital stock Of any bank shall he withdraw
until its whole liabilities are satisfied, or any por
ton of is assets applied TO any other purpose tat
that of legitimate banking, as defined and presGrlp
al IN, the provisions Of this act and any board Oh
,,o5 members of the Board shall pernit the SAM
80 ba lone. shall be guilty of a misdemeanor' ant
. Iii IN conviction thereof, be tiued IN the sum o
five hundred dollars each. and imprisoned for no
/ less than two nor more than ten months
SECTION I5 Be Il further endeg!' nat az lGas' one
nnsad of nersons not stockholders IN the Bank FOL
/ which thew act as Directors; and that no person
shall be a Director in any OF sad Banks VINO is no
a citizen of tins State. -
SECTION L. Be Il further eadc'et, lH"l an accom-.
modations extended 10 the STOCKHOLDERS OF the nstl
tuition shall be unon the same terms that exact
ed from It's other customers; and violation OF thu
provisions of this section, shall be mlSdemeanoF II
the Directors voting for the same, ana punlshaDle DJ
fine and Imprisonment.
SECTION L. BE Il further enacted, That no Bank
shall pay interest on deposits, nor buy in, hold OF
conceal its own stock
SECTION Is BE e further enacted That person
known as the supervisor of Banks. shall be appoint
ed by the Governor and duly commissioned whose
duty 1t shall be TO examine and report under cath
at least quarterly, the condition Of every Bank il
the State, showing in his report, under separate
heads the amount of coin exchange, bills notes and
other assets of said Banks well the amount OF
issues and entire liabilities of the Such state
ments shall also show the solvent assets and bad and
doubtful debts and any other items necessary to ex
plain the condition of the same 1t shall also show