Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-25

4 me -TTGTTT-TT
,anse sd or any of the officers Of said Bank to be
Examined under OATH rs to any matters necessary
tor said examination. And if any officer or officers
III the Bank shall borrow, otherwise procure any
assets rot letimately owned ly the Bank, to be ex
kihifaf TO the SUPERVISE as portion of the proper-
guilty Of the same and on conviction shall Defined
hot less than Eve hundred dollars end imprisoned
not less than six months.
Section 20 Be Il further enacted That when any
Bank shall have suspended specie payment wffully
or remains in that condition for period of one
hundred and twenty days in any one year. it shall
be the duty Of the Supervisor forthwith TO cause
proceedings 10 be instituted in the Chsncerv Court OF
the District where the Bank is located, in the name
of the State of Tennessee against the Bank to have
its assets subjected to the payment of its debts and
its charter declared to be forfeited; Provided how
ever, that if the Governor shall be of opinion that
II IS for the public interest that such proceedings
shall not be instituted, he may, in writing, so de-
clare to the Supervisor and suspend all proceedings
thereon IRON time to time, until the meeting Of the
Legislature.
Section q. Bet turtle, snaeied, That the Super
visor appointed under the provisions Of this act.
before entering upon the duties of his Office, shall
give bond in the sum OF fifty thousand dollars with
good security, payable to the State Of Tennessee,
and TO be approved Of by the Governor for the
faithful performance of his Office and the penalty of
said bond, in all cases where the same is recovered
shall be applied to the benefit of noteholders who
nave suffered loss by reason OF the failure OF
the SuperyisortO comply with the provisions OF this
act shall take an oath discharge the duties there
Of faithfully; and that he shall receive as comPen-
sati0n for the performance of his duties, the sum
Of three thousand dollars annually, to be paid 70
him quarterly out of the Treasury. and If SAID
Supervisor shall make false and fraudulent report
in regard 70 the condition Of any Bank he shall for
felt and pay to the State the full penalty Of said
bond ard shall be guilty Of the crime Of perjury,
and upoa conviction, shall be confined in the peni-
tertiary for period Of not less than three years.
Section p. Be e further enacted, That there shall
be levied pro rata tax upon the Banks IN this state,
Except the Bank Of Tennessee,) which are subject
to the provisions Of this law, upon the tenth of
january in each year, as to make up the sum OF
three thousand dollars which tax shall be assessed
and collected by the Treasurer Of this State, to pay
the salary Of the Supervisor; and II any Bank shall
fail TO pay the tax levied it shall be the duty OF
the Treasurer forthwith TO take steps to enforce its
collection.
Section o. Be Il further enacted, That whenever,
in the opinion Of the Supervisor, any bank IN this
State shall have violated its chartered powers, It
shall be his duty to report the fact with his reasons
therefor. TO the Governor and Attorney General Of
the State, and if they concur with Inn, IN opinion,
he shall forthwith cause proceedings 10 be lnstltu-
ted in the Chancery Court OF the district where
such bank IS located, in the name Of the state, to
have its assets subjected TO the payment Of its
and its charter declared forfeited. ProUided chat
the right Of appeal to the Supreme Court shall eX-
ist in favor of either party, Notwithstanding any
thing in this act
Section 81 Be q further sBGcted That when any
bank desires to cancel or destroy any part Of its old
circulation the same shall be cancelled and burned
in the presence Of the Supervisor, after the amount
number and denomination of such cancelled ciPcula-
ton shall have been registered in the Registry Book
Of the bank. and certified, provided IN tins act
Section 25 BE It further enacted, That each bank
shall be authorized to discount bills and notes, pay
able in this State at the rate of six per cent. per
annum and if any bill or note thus discounted Is
pavablei at a point different from that at which
the bank is located it may collect in addition to the
six per cent discount, the 1t Will cost TO col
iect such bill note, if paid at maturity and each
bank shall be authorized to discount bills payable
out of the State at the rate of six per cent per an
num- with reasonable exchange inaddition thereto
Section 26 Be Il further enacted, That each stock
holder in any Of the banks Of this State shall be
individually liable for any loss sustained by the
creditors Of the institution the amount and value
of his stock until he has paid the same in full on his
original subscription. And if any Director or Di-
rectOrs Of any Of the banks in this State shall be
guilty Of any fraud or wlltul acknowledgement OF
the affairs of such bank, by which any loss shall be
occasione1 to its creditors, such Director OF Drec
tors upon legal entertainment Of the fact shall be
individually liable for such loss, and all the stock
holders asserting thereto, shall be liable IN like
manner.
BANKING ~ Llie Ply NeAOe "a tllA2
act shall pay as tax the State, on the first day
of January of each year. onehalf Of one per centum
on their actual capital.
Section %. Be It further enacted, That each and
every Bank in this State, shall be subject to the ex
animation of such committees as the Legislature
mav5from time TO time appoint.
Section 20. B. i further enacted That Banks and
the business of banking in this State shall be sub
ect to such general laws regulating the same as the
Legislature may from time to time enact.
Section so. Be Il further enacted That IN case OF
the insolvency Of any Bank or Banking Association
the biholders thereof shall be entitled to preference
in payment, over all other creditors Of such Bank
or association; and transfer, or assignment OF
any note bill of exchange or other evidence Of debt
by the Bank, shall prevent the debtor from paying
the same in the hands Of the assignee in the curren
cy Of such Bank.
Section 81 Be further enacted That If any Bank
of this State shall suspend specie payment the note
holders thereof may present the same for payment,
and if payment Is refused said noteholder may nave
such notes protested and shall receive interest az
the rate of SIX per cent. per annum from the date
of protesting and the cost of protesting. FIOClded
hOweYerthat where any PERSONS the holder OF more,
notes han one. of any bank, there shall be but one
protest noting by number and letter all the notes
hold by him in such protest and for each note at
ter the first there shall be fee Of five cents each.
Section 81. Bet further enacted, That Banks char
tered subject to the provisions OF tins act may sur
render their charters and discontinue business; and
the period Of five years shall be allowed 10 such
Bank within which to liquidate and close their at
fairs ProUi1sd that il whilst so doing they engage
TO auv extent in the business of banking the same
shall be done in accordance with the provisions Of
this act, and such supplemental legislation as may
be from time to time enacted regulating Banks and
the business of banking in this State.
Section 80, Be further enacted, That the Banks
chartered under the provisions of this act shall dis
count in the aggregate at least onethird Of their
capital in notes, in the course Of each and every
year This act shall take effect from and after Its
passage.