Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-12-21
A BILL
To Reform and Regulate the Husi-
ness OF Ranking in Tennessee.

SECTION /. BE IL enacted By The General is
sembly Of me STATE Of TtnneSsee, That every
Bank which now is, or may hereafter be in.
corporated under the authority of this State
shall be subject to the liabilities. and gov
ernrd bv the rules and provisions contained
in this act.
SIC. z. Be Il further enacted That no Bank
in this State shall issue any note not payable
on its face at the counter where Issued nor
shall any Bank Pay out any note not payable
at its counter PrOCidod that any principal
Bank NAV issue notes payable at its branch
es, but such notes shall be. by law. payable
on demand at the principal Bank. rs well as
at the branch where made payable, and no
Bank in this State shltfi issue any note OF a
less denomination than ten dollars.
SEC. 5. Be IL further enacted, That the CAPT
tai stock of each Bank in this State. shall be
paid in coin, and that no substitute or equiv
aient shall be received in lieu thereof; and
no par, 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 bis shares
of stock nor shall any loan thu n he made, il
I'm the opinion of the Directors, tie ol Jet of
the loan is to replace money borrowed to pay
up his stock.
SEc. 4. Be IL fprfher enacted. That the CAPT
tai stock of no Bank in this State. shall eX-
coed two millions OF dollars nor shall any
Bank commence the business of banking. with
less paid in capital stock than three hun
dred thousand dollars. Aud il, shall be- the
duty of the Supervisor to examine aud re-
port to the Governor. tina; this sum l. actin
ally paid in, before any Bank shall commence
business.
SEC. S. Be Il further enacted. That il shall
not be lawful for any Bank in this State, di-
rectly or indirectly, 20 increase its total liza
bilities b. yond the amount OF its total sol
vent assets, or use or employ any of It's mon
eys, goods, chattels. or effects in trade ar
commerce; aud no Bank shall hold or own
more real estate than IL NC ssary To carry on
its banking business Prorldcd. however. il
may receive mortgages and ass ignments for
debts previously contracted. aud purchase ia
real estate thus murtgaged or assigned; aud
purchase in lands sold AT ext catiua sale un-
der judgments In its favor. or redeem lands
subjcct to redemption in order TO secure iIs
bad aid doubtful debts; but il shall not hold
the same tor longer period than three years.
SIC. 6. Be turfhSr esaetel, That no Bank
In this State shall permit iis issues To rX-
coed the proportion Of two for one OF its spe-
Gle fund.-, consisting OF coin, notes OF specie
paying Banks, ard sight exchange. Nor shall
any Bank issue twa Tor one OF specie funds,
III The same exceed The amount Of actually
paid capital stock. Each and every Bank
shall own and have Ia us Own faahs, Tor the
protection OF the noteholder. an amount ot
coin equal 10 one-iorih ui its entire cireuia-
lion, and shall own. and keep on band. an
amount OF speci. iunds equal 10 ons-third of
its entire liabilities. And In the event any
Bank shali permit It's coin, or coin and specie
funds, TO fall bclow the proportions aforyr aid.
tor the space OF forty days together, then all
discounts by said Bank shall cease until said
proportions are restored. And IL any Bank
shall suffer it, coin. or coin and specie inads,
to run below said proportions. over seventy
I've days in oil, In any one year. 10 shall he
the duty Of the Supervisor forthwith 70 cause
proceedings TO be iasiiiated in tue ChaneeFy
g art Of the District, yh~re sueh Bank Is l0'
Gated, IN the name OF the Supervisor, against
such Bank, 10 have its assets Subjected TO the
payment OF Its debts, and il charter declared
forfeited.
SEe. q. Be further enacted, That no Bank
shpii employ Ia lis business dividends due 10
tolls Stockholders, unless the same sse made