White Cloud Kansas chief. [volume] (White Cloud, Kan.) 1857-1872, 1861-10-24

a cashier and such other officers as their bust
ness may require, and to remove such president,
cashier, officers, and agents at pleasure, and TO
appoint others in their places; but no such asso-
citation or banker ehaI commence the business
of banking under this act, until such associa-
ton or banker, shall have deposited with the
Auditor of State the securities required BY this
act.
SEC. -. The shares in such bank shall be
deemed personal property, and shall be trans
ferable on the books of the bank in such man
4 ner a. may be agreed upon in the article organ
izing such bank, and every person becoming q
stockholder therein, shall in proportion TO his
interest," succeed to all the rights and be subject
to ell the liabilities ofpcor shareholder or share
holders; no change shall be made in the arti-
cles organizing such bank, whereby the
rights, remedies or securities of existing credi
tors shall be in any manner impaired, and any
association constructing such bank shall not be
dissolved by the death or insanity Of any one of
the shareholders therein.
SEC. IA. If the maker or makers of any such
circulating note or notes, countersigned and reg
istered aforesaid, shall, at any time hereafter
on lawful demand, during the usual hours of
business, at the place where such note or notes
is or are made payable, fail or refuse TO redeem
such note or notes, in the lawful money of the
United States, the holders of such note or
notes making such demand may cause the
same to be protested, for non payment, by no.
tary public under his official seal, but the ma
ker or makers of such note or notes shall not
be liable for the expense of 20 protesting the
same, unless, on such demand and refusal 80 to
redeem the same, he or they shall refuse to
waive protest and notice of protest thereon, and
such waiver of protest shall. in all cases be
deemed equivalent to the regular protest thereof;
and such notary shall, on protesting the same,
forthwith forward notice of such protestto the Au
ditor of State; the notary making such protest
shall certify in bis notice of protest the number
of notes on which said paying was refused, and
describe them by their numbers and letters, and
shall also certify to the aggregate amount of
said notes; the Auditor of state on receiving
and filing in his Office such protest, together
with such note or notes aforesaid, shall forth
with give notice, in writing, to the maker or ma
kers of such note or notes TO pay the same; and
il they shall omit to do 80 for twenty days az
ter such notice, the Auditor shall Immediately
therupon, unless he shall be satisfied there is q
good and legal defense against the payment Of
such note or notes, give notice that all the cir.
persons and countersigned and registered as
aforesaid. will be redeemed out of the trust
funds in his hands for that purpose, which no.
tice shall be given by publishing the came in
some newspaper printed in the County where
the business Of such bank is established, and in
some newspaper printed at the seat of govern
ment of this State; and the Auditor of State
shall be required to apply the said trust funds
belonging to the maker or makers Of such pro-
tested note or notes, to the payment of all cir
culating notes, whether protested or not, put in
circulation by the maker or makers Of such pro-
tested note or notes, pursuant to the provisions
Of this act, and to adopt such measures for the
payment Of such notes as will, in his opinion,
most effectually prevent loss to the holder of
such notes; and, to this end, the Auditor of
State may, after The expiration Of said twenty
days, and after giving thirty days notice by pub
lication in a newspaper printed at the seat of
paper printed in the city of New York, proceed
to cell, at the Merchants Exchange, in the city
of New York. at public auction, the securities
so pledged, and, out of the proceeds of such
sale shall pay pro rata and cancel all bills and
notes which have been issued and put in circu-
lation by such bank under the provisions of this
act; but nothing in this act contained shall be
considered as implying any pledge on the part
Of this State, for the payment of such bills or
curities pledged to the Auditor of State for their
redemption. |
SEC. IS. Such bank or banking association |
shall be liable to pay the holder Of every bill or
note put in circulation as money the payment
Of which shall have been demanded and refused, |
at the banking house or usual place of business |
Of such association or banker, damage for non
payment thereof, from the time of such refusal
until the payment Of such evidence Of debt, and
damages thereon.
SEC. l6. 1t shall not be lawful for the Auditor
of State or his deputy, to countersign bills or
notes for any association or banker to an amount
in the aggregate, exceeding the securities at
their value, as before provided in this act, de-
posted with him in trust by such association or
banker, or to or dispose of such securities in
any manner other than provided for in this act;
and any Auditor of State, or deputy, who shall
violate the provisions of this section shall, up
on conviction, be deemed guilty OF INSIDE
meanor, and bepunished by a fine not less than
five thousand dollars, or be imprisoned not less
than five years in the States prison. or by both
such fine and imprisonment.
Sec. II. 1t shall be lawful for any person or
association Of persons organized under the pro-
visions of this act by his or their articles of as
ISOLATION to Irovide for an increase of their
capital stock and of their numbers of associa-
ton, from time to time, as they may think prop
err.
SEC. Is. Contracts made by any bank or bank
ing association established under the provisions
Of this act, and all notes or bills issued and put
in circulation as money, shall be signed by the
President and cashier thereof, and all suits, &C.
tons and proceedings brought or prosecuted by
or in behalf of such bank or banking associa-
ton shall be brought and prosecuted in the cor
porate name mentioned in the certificate made
and filed as hereinbefore required. |,
SEC. 10. 1t shall be lawful for such bank or
banking association to purchase, hold and convey
real estate, for the following purposes: First,
Such as shall be necessary for its immediate ac- .
in the convenient transaction of :.
it's business. Secoud-Such as shall be mort
gagged to it in good faith by way of security for
loans made by, or money due to, such bank. :
Third-Such as shall be conveyed to it in salts. !,
action of debts previously contracted in the :
course of its dealings. Fourth-Such as it :.
shall acquire by sale on execution or decree Of
my court in its favor. The said bank shall =
aot purchase, hold or convey real estate in any
other case or for any other purpose whatever, /.
md all conveyances of such real estate shall be .
made to the corporations, and which real estate ]
he president and cashier may sell, assign. grant
'r convey, under the direction of the ass0cia- !
ion, free from any claim thereon in favor Of +
'r against the shareholders or any person claim =
ng under them.
SEC. 90. The president and cashier of every !
'ank formed pursuant to the provisions of this .
.ct, shall, at all times, keep a true and correct
ist of the names of all the shareholders of such h
,ank, with the amount Of stock held BY each, :
he times Of transfer and 70 whom transferred, d
md shall file copy of such list in the Office of
he register of deeds of the County wherein ii
ach bank may be located, and, also, in the Of.
ice Of the Auditor Of State, on the first Monday !.
January ami July in each year, and the stock =
loioers IN eaeA bank shall be individually liza r.
lie in amount equal 70 double the amount of q
took owned BY them, Tor all the debts of such g!
ank, and such individual liability shall oontin- q
le for one year after any transfer or sale OIL q
In hv ofa hold L.