Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-12-11

than three hundred thousand dollars And it shall
be the duty of the supervisor to examine and report
to the Governor, that this sum Is actually pad IN,
before any bank shall commence business.
Section s. Be q further enacted, That 1t shall rot
be lawful for any bank in this State directly or IN
directly to increase its total Liabilities beyond Inc
amount of It's total solvent assets or use or employ
any of its moneys goods chatteS, or effects IN trace
or commerce: and no bank shall hold or own more
real estate than is necessary to carry on lis banking
business Prouiled however. 1t may receive mort
cages and assignments for debts previously contract
ed and purchase i'll real Cs.3te thus mortgaged or (
ASSIGNED . and purchase in lands sold at execution
sale under judgments in its favor or redeem lands
subject to redemption. in order to secure It's bad /
and doubtful debt' but it shall not hold the sam
for n longer period than three years.
Section g. Be it fafhy enacted. That no Bank in this
State shall permit its issues to exceed the proper
ton Of two for Of its specie funds, consisting of
coin notes OF specie paying Banks. and sight ex-
cbop re Each and every Bang shall own and have
in its own vaults for the protection of the note
holder an amount of coin equal TO onefourth Of its
entire circulation. and shall own and keep on hand
an an,ouDt of specie funds equal 10 one third of its
aptira liabilities And in the event any Bank shall
nYn,t it, coin or coin and specie funds to fall be-
low the proportions aforesaid for the space ct for
nv DAYS together then all discounts by said Bank
shall cease uatl said proportions are restored. AMI
If anv Bank shall suffer its coin or coin AMI specie
funds to run below said proportions over seventy
Ave days in all in any year. 1t shall be the duty
of tla Supervisor forthw tn TO cause proceeding to
70 he instituted in the Chancery Court OF the district
,vbe,a suah Bank is located in the name OF the Su-
parvIsor against such Bank, to have its assets sub
iccted to the payment Of its dents AMI its charter
declared forfeited. Nor shall any Bank permit is
qoin 10 be reduced below one fourth Of Its irImed
ate cash liabilities and it shall he the duty of each
and every sucIl Bank az ak nies 70 own and keep
on hand amount OF specie I0hls eqLa b OIe-ullrq
! of its entire liabilitic.
! section Z Be It further enacted That no Bank shall
enIpo- in its business, dividends due to its stock
holders unless the same are made part of the per-
maneRt paid capital stock of the Bank. by the stock
! holders to whom the SANE are due and owing.
Section 8. BE Il further enacted That with the
view to make the capital stock of banks permanent,
| 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 ex-
animation of the condition Of their respective Banks,
and ascertain nearly possible the total amount
If bad and doubtful debts due TO the same. which
shall be reported to the Board, and spread upon the
minutes thereof; and if it appear from this report
! aDd examination that no profits have been made at
these periods or any Of them beyond the amount
of bad and doubtful debit then. no dividend, shall be
made until q 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. Be Il further enacted. That no Bank shall
be chartered for greater period than fifteen years
Section 10. Be y further enacted. That each Bank
shall make monthly statements, under the oath p S
President and Cashier, to the Comptroller of the
State, Of its true condition. This statement shall
show under separate heads the amount Of coin, the
sums due from Banks in this State. the amount dine
from Banks ont OF the State and the entIre amount
! of lis bills, notes and other assets. 1t shall also
show the entire extent of its liabilities, including its
amount of circulation. &C.: which report, when
made and verified, shall be published according to
! law.
Section H. BE It further enacted That no Bank shall
! deal in uncurrent money, pay out the notes of
other banks; ana when in state OF suspension
shall not take receive more than per cent for
/ exchange and shall pay into the Treasury of the
State half of per cent, on its capital stock.
for every month or fraction of month"; whilst thus
| remaining in suspension.
Section r. BE further enacted That no bank shall
procure another TO give credit to its circulation.
through any security or indemnity given for 50
/ doing.
Section Is Be It further enacted That elch Bank
| shall keep book for the registry of the NUMBER.
denomination and amount Of the notes intended for
circulation: and that before the same placed in
circulation the supervisor of Banks shall exam
inc the notes compare them with the registry.
that they correctly registered and certify the
fact upon the book: and thathe shall procure an eX-
act copy of the and report to the Comptroller,
| who shall publish it according to law and this shall
be done as often az any bank may desire TO increase
its circulation If the officers of any bank shall
wtUly put in circulation any note or notes not re
| gstered. herein provided. such officers shall be
| guilty OF a misdemeanUT. and conviction. shall
be seycrally fined not less than FIVE hundred dollars.
and imprisoned not less than SIX nor more than
| twelve months.
| Section H. Be # turtle. enqcted That no part of
! the capital stock OF any bank shall be withdrawn
until its whole liabilit,s satisfied. any pOr-
ton OF its assets applied to any other purpose than
that of legitimate banking. defined and prcscrib
! ed by the provisions of this act; and any Board
or such members of the Board as shall permit the
same 10 be done, shaI! be guilty o. misdemeanOr.
! and shall. conviction thereof be fined in the sum
of five hundred dollars each, and imprisoned for not
less than two more than ten months
See. Is. BE further enacted, That person shall be
Il director in any bank who is not Il citizen of this
State; nor shall more than tWO-thirls Of any bank
directory be stockholders in the bank for which they
act directors and no director in any other hInk
no. partner in trade OF such director, nor two Pep
trading in partnership at the same time shall
be eligible capable of serving as directors in such
bank
Section l6. Be It further enacted, That all accom-
mo aons extended to the stockholders of the insti
tuition, shall be upon the terms that exact
ell from its other customers and violation Of the
provisions OF tbs section shall be misdemeanor in
the Directors voting for the and punishable by
fine and Imprisonment.
Section Il. Be further enacted, That no bank !
shall pay interest on deposits. nor buy in. hold or
cancel its stock; but mag receive it in pay .
meat Of bad and doubtful debts for the purchase
Of real estate and in such case the stock shall be
conveyed to a third party IN trust, to be sold by /
him tor the benefit of such bank
Section IS BE further enacted, That person /
known as inc supervisor VI DdlkS al DC dppOilJ-
ed by the Governor and confirmed by the Senate who
shall hold his Office for two years. and duly commits
stoned whose duty it shall be to examine and report
under oath at least quarterly the condition of every
Bank in the State, showing i'll his report under sepa-
rate heads, the amount of coin, exchange bills notes
and other assets of said Banks. well the
OF issues and entire liabilities of the Such state
shall also show the solvent assets and bad aud
doubtful debts and any other items necessary to cx
plain the condition of the same. 1t shall also show
whether the capital stock Of said bank is paid and
any other fact and circumstance. to give the public
correct knowledge OF the Bank. which report shall
be published by the Comptroller according to law
In case the supervisor shall die resign or remove
between the sessions of the General Assembly it
shall be the duty Of the Governor to appoint for
the uneXpIred term.
Section 10. Be further enacted That whenever
the supervisor shall desire to make examination
of bank, it shall be the duty of the officers of the
same, to afford him every facility for complying
with his duties required by this Act; and if the
perysOr should deem 1t necessary he may cause all
or of the officers of said bank to be examined
under OATH to any matters necessary for said ex
animation. And if any officer officers of the
bank shall borrow otherwise procure any assets,
not lcgtimately owned by the bank, to be exhibited
to the supervisor. as portion of the property of
said bank it shall be a misdemeanor in those guilty
Of the same, and punishable by fine and imprison-
nent
Section 20. Be further enacted. That when any
bank shall have suspended specie payment, and re
=
lred and twenty days in any year, it shall be
he duty OF the supervisor, forthwith to cause pro-
eedng be instituted in the Chancery Court of the
District, where the bank is located. ia the name of
he supervisor against The bank have its assets
subjected to the payment OF its debts and its charter
lec'a"ed to be forfeited PrOcdeI however that if
he Governor shall be of opinion that it is for the
public interest that such proceedings should not be
instituted, he may in writing declare to the SUI
Dervisor and suspend all proceedings thereon from
ime to time until the meeting OF the Legislature. c
Section Il. BE further enacted That the superyi- Il
or appointed under the provisions of this act be-
ore entering upon the duties of his oice shall give
,ond in the sum Of ten thousand dollars with good ?
ecurity. payable to the State of Tennessee. and to
,e approved by the Governor, for the faithful per
ormance of his office: shall take oath discharge
he duties thereof faithfully and that he shall receive
$ compensation for the performance of his duties
he sum of three thousand dollars, to be paid to v
m quarterly out OF he Treasury. And If said Su-
eryIsor shall make false and fraudulent report y
regard to the condition Of any bank he shall tor,
cit and pay to the State the full penalty OF said bond
nd shall be guilty of the crime of perjury a d b
pon conviction shall be confined in the penit IN f
lIry for period OF not less than three years b
Section p. BE further enacted THAI there shall c
e levied pro rata tax upon the banks in this State
except the Bank Of TennesseeD which are subject IT
the provisions OF this law upon the 10th of Jan 1t
n n an Is q Ike N tba 90