Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1863-03-04

notes issued by such banking association, and
to deliver in place thereof to such association
other blank circulating notes to an equal amount
and such worn out or mutilated notes, after Il
memorandum shall have been entered in the
proper books, in accordance with such regula-
tons as may be established by the comptroller
well as all circulating notes which shall have
been paid or surrendered to be cancelled shall be
burned to ashes in presence of three persons
one to be appointed by the secretary of the treas
ury, one by the comptroller Of the currency, and
one by the treasurer OF the United States, under
such regulations as the secretary of the treasury
may prescribe; and in case such notes shall have
been delivered to the comptroller by an officer or
agent of such association, then in the presence
also of such officer or AGENT and certificate of
such burning signed by the parties so appointed
shall be made in the books of the comptroller
and duplicate thereof given to such officer or
agent.
Sect SO. And be it further enacted, that it
shall be unlawful for any officer acting under the
provisions of this act TO countersign or deliver to
any such association, or to any other company
or person, any circulating notes contemplated by
this act, except as hereinbefore provided, and in
accordance with the true intent and meaning of
this act; and any officer who shall violate the
provisions of this section shall be deemed guilty
OF high misdemeanor, and on conviction there
of shall be punished by fine not exceeding
double the amount so countersigned and deliver
ed, and imprisonment not exceeding fifteen
years. at the discretion of the court in which he
shall be tried
Sect. "a And be it further enacted, that all
fees for protesting the notes issued by any such
banking association shall be paid by the person
procuring the protest to be made and such bank
ing association shall be liable therefor; but no
part of the stock pledged by such banking asso
citation as aforesaid shall be applied to the pay
ment of such fees; and all expenses of any pre-
llminary or other examinations into the condi-
ton of any association shall be paid by such
association; and all expenses of any receivership
shall be paid out Of the assets of such association
before distribution of the proceeds thereof.
Sect. 80. And be it further enacted, that the
stockholders, collectively, CT any such associa-
ton shall at no time be liable to such association
either as principal debtors or slreiies, or both,
to an amount greater than three fifIhs of the
capital stock actually paid in and remaining un-
diminished by losses or otherwise; nor shall the
directors be SO liable, except to such amount and
in such manner as shall be prescribed by the by
laws Of such association, adopted by its stock
holders to regulate such liabilities.
Sect 36 And be it further enacted, that the
capital STOCK of any association formed under
this act shall be divided into Shares of one hun
dred dollars each, and shall DO assignable on the
books of he association in such Iuanner as it's
bylaws shall prescribe; but no shareholder in
any association under this act shall have power
TO sell or transfer any share held in his own right
cO lp'i9 uO Slull DG elLucf aS principal,
debtor, surety, or otherwise, to the association
for any debt which shall have become due and
remain unpaid, nor in any case shall such share
holder be entitled to receive any dividend inter-
est, or profit on such shares, so oug as such la
blliIles shall continue, but all such dividends,
interests, and profits shall be retained by the
association, and applied to the discharge of such
liabilities; and no st ok shall be transferred
without the consent of a majority of the direct
ors, while the holder thereof is thus Indebted to
the association.
Sect. 81. And be it further enacted, that no
banking association shall take as security for any
loan or discount, lien upon any part of its cap
ital stock; but the same security, both in kind
and amount, shall be required of shareholders as
OF other persons; aud no such banking associa-
ton shall be the purchaser or holder of any por-
ton OF its capital stock or of the capital stock OF
any othel Incorporated company, unvss ouch
purchase shall be necessary TO prevent loss upon
a debt previously contracted in good faith on
security which, at the tue, deemed ade
quate to insure the payment Of such debt indie
pendent of any lien upon such stock; or, in cast
of forfeiture of stock, for the non-paymcnt of in
staments due thereon; and stock so purchased
or acquired shall in case be held by such as
ISOLATION so purchasing, for longer period OF
time than six months, if the same can, within
that time, be sold for what the stock cost
Sect, 49, Aud be it further enacted, that in all
elections of directors and in deciding all ones
tions at meetings of shareholders, each share
holder shall be entitled TO vote on each SHIRE
of stock held by him; shareholders may vote bv
proxies duly authorized in writing; but no Off
Ger, clerk, teller, or book-keeper OF such associa-
ton shall act as proxy; and no stockho'der
whose liability is past due and unpaid shall be
allowed to vote.
Sect. 80. And be it further enacted, that the
affairs ots every such association shall be man
aged by not less than five nor more than nine di-
rectors, one of whom shall be president OF the as
ISOLATION. Every director shall, during his whole
term of service be a citizen of the United States
and resident of the state in which such associa-
ton is oc tied. At least three fourths Of the di
rectors shall have resided in the state in which
such association is located, one year next pre-
ceding their election as directors; and each di-
rector shall own in his own right, at least one
per ccntum Of the capital stock of such associa-
zion, not exceeding two hundred thousand do
lars, and the half Of one per Centum Of its capt.
tai it over two hundred thousand dollars. Each
director shall take oath that he will so far as
the dlty devoves on him, diligently and honest
ly administer the affairs of such association, and
viii not knowingly violate, or willingly permit to
be violated, any of the provisions of his act, and
that he is the bona fde owner in his own nght,
OF the shares of stock stanlidg in his name uu
the books of the association, and that the same
is not hypothecated, or in any way pledged rs
security for any loan obtained or debt owing to
the association of which he is Il director which
officer before whom it is taken, shall be immedi-
ately transmitted 10 the comptroller of the cur
rency, and by him filed and preserved in his Of
flee.
SECT 40 And be it further enacted that the
directors of any such association first elected
shall hold their places until their successor Shall
be elected and qualified All subsequent cleo
tions shall be held annually, on such day in the
month ofJanuary as the stockholders of said as
ISOLATION may prescribe, and the directors so
elected shall hold their places for one year. and
until their successors are elected and qualified.
But any director removing from the state, or
ceasiug 10 be the owner of the requisite amount of
stock, shall thereby vacate his place ANY va
cancy in the board shall be filled by appointment
by the remaining directors. The director so APP
pointed shall hold his place Until the next annual
election; and il from any cause an election of
directors shall not be made at the time appoint
ed, the association shall not for that cause be
dissolved, but an election may be held on any
subsequent day, thirty days notice thereof hay
ing been given in newspaper printed, Or of gem
eral circulation, in the city, town, or county in
which the associationis located; and if no news
paper Is published in such city, town, or county,
such notice shall be published in a newspaper in
the county adjoining.
Sect Al. And be it further enacted, that every
such association shall at all times have on hand,
in lawful money of the United States an amount
equal to at least twenty-five per centum of the
aggregate amount of it's outstanding notes of
circulation and its deposits; and whenever the
amount of its outstanding notes of circulation
and its deposits shall exceed the above named
proportion for the space of twelve DAYS, or
whenever such lawful money of the United
States shall at any time fall below the amount of
twenty-five per centum of its circulation and de-
posits such association shall not increase its liza
bilites by making any new loans or discounts
otherwise than by dscounting or purchasing
bills of exchange, PAYABLE at sight, nor make