Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1863-06-11

retained by the association, -
discharge Of such liabilities and applied to the
transferred without thou sS' and no stock shall be
hsS,sa 10 the the holder thereof is thus in
seo. ~. And DC u further enacted That no
banking association shall take as security for anv
I loAn or discount, lien upon any part of NJ
| capi,.l stock but the same security, both In
| kind aid amount, shall be REQUIRED of share
hoilers as Of 9th sr persons; and no such bank
ing associat,. N shall DO the purchaser or holder
of any portio.n of its capital stock, or of the
capital stock OF an" other Incorporated company,
unless such purchase hall DO necessary TO pre-
vent loss upon debt prev ..ously contracted in
good mith, ON security which, at IT, ums' was
deemed adequate to insure the payment =. such
deot, independent OF any lien upon such stock,
or in case Of forfeiture Of stock Tor the non.
| payment OF installments due thereon, and
stock SO purchased or acquired shall in no case
De held by such association SO purchasing for
longer period OF time than six months, il the
same can, within that time, be sold for what the
| stock cost,
| Sec So. And be IL Jf,sriher enacted That in all
elections OF directors, and in deciding all ques-
tons at meetings OF shareholders, each share
holder shall be entitled to one vote on aoh share
OF stock held by HIM shareholders NAV vote by
proxies auiy authorised in writing; but no officer
cierk' teller, or book-keeper of such association
shail act as proxy; and no stockholder whose La
bility is past due and unpaid shall DO allowed to
| vote.
Sec. 80. And be ii further enacted That the af.
fairs Of every such association shall be managed
| by not less than five nor more than nine direct
ors, one Of whom shall be president of the assoc-
alton; every director SHALL during his whole term
OF service, be citizen of the United States and
resinent OF the State in which such association is
located. At least three-fourths of the directors
shall have resided in the State in which such asso-
cation is located one year next preceding their
election as directors and each director shall own
IN nus own right, at least one per centum of the
l capital stock OF such d,v,
two hundred thousand dollars, and the half of one
per centum Of its capital if over two hundred
thousand dollars. Each director shall take an
oath that he WILL SO far the duty deyolves on
him, diligently and honestly administer the affairs
of such association, and will not knowingly violate
or willingly permit to be violated, any Of the pro-
visions Of this act, and that he is the bona tide
| owner, in his own right, of the shares of stock
standing IN his name en- the books OF the associa-
ton, and that the same is not hypotheticated or
IN any pledged, as security FOR any loan obtained
or deot OWING to the association of which he is
director, which oath, subscribed by himself and
| certified by the officer before whom il is taken.
shall be immediately transmitted to theComptroll-
er OF the Currency, and by him filed and preserved
Sec. 40. And be ii further enacted, That the di-
rectors OF any such association first elected shall
hold their places until their successors shall be
eiected and qualified And subsequent elections
shall be held annually, on such day in the month
OF January as the stockholders of said association
may preseribe and the directors so elected shall
| hold their places for one year, and until their
successors are elected and qualified. But any d-
rector removing from the State, or ceasing to be
| the owner OF the requisite amount of stock shall
thereby Yaeate his place. Any vacancy in the
board shall be filled BY appointment by the re-
naming directors. The director so appointed
shall hold his place until the next annual election;
| and II, nom any cause, an election of directors
snail not be made at the time appointed, the asso-
cation shall not for that cause be dissolved, but
| an eiectloh may DO held on any subsequent day,
thirty days notice thereof having Seen given Ia a
newspaper printed, OF of general circulation, IN
| the city, town, or county in which the associa-
in such city, town, or county, such nstice shall
| be published in newspaper in the county adjoin-
| ing.
! Sec. Al. And be 1t further enabled, 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 eentum of the
aggregate amount of its outstanding notes of cir
eulation and Its deposits and whenever the amount
Of Its outstanding notes of circulation and its de-
posts 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 CEN
tum of its circulation and deposits such association
shall not increase its liabilities by making any new
loans or discounts otherwise than by discounting
or purchasing bills of exchange, payable at sight,
nor make any dividend of its profits, until the re-
quirefproportion between the aggregate amount
of its outstanding notes of circulation and its de-
posts and lawful money of the United States shall
be restored Provided, however, That clearing
house certificates, representing specie or lawful
money specially deposited for the purpose of any
clearinghouse associations shall be deemed to be
lawful money In the possession of any association
belonging to such clearinghouse holding prd
owning such certificates, and considered to be j
part of the lawful money which ;.cb oSsoo;o ~; -
is required to. have, undert foregonq nrovis;ons
OF this section Ffop'.aed further That any bal
anee que TO any association organized under this
aoe ~ gsie places from any association in the cit
les Of 3oston, Providence, New York, Philadel-
I pha, baltlmore, Cincinnati, Chicago, st. Louis,
or New Orleans in good credit, subject to be drawn
for at sight, and available to redeem their circu-
Iatlng notes and deposits, may be deemed to be q
part OF the lawful money which such association
IN Qther places than the cities of Boston, Provi-
denee, New York, Philadelphia, Baltimore, Gin
cinnati, Chicago, st. Louis, and New Orleans, are
required to have by the foregoing provisions OF
this section, TO the extent of three-ffths of the
said amount of twenty-five per centum required.
And it shall be competent for the Comptroller OF
the Currency to notify any such association whose
lawful money reserve, as aforesaid shall fall be-
low said proportion of twenty-five per centum, to
make good such reserve and if such association
shall fail for thirty days thereafter so to make good
its reserve of lawful money of the United States,
the Comptroller may, with the concurrence of the
Secretary of the Treasury, appoint receiver tC
wind up the business of such association, provi-
ded in this act.
Sec. ~. and be IL further enacted, That no as
ISOLATION shall at any time be indebted, or in any
oft capital stock at such time actually paid in,
and remaining undiminished by losses OF other
wise, except on the following accounts, that is tC
say;
First. On account of its notes of circulation.
second On account Of moneys deposited with
or collected by, such association.
Third. On account of bills of exehang,
or drafts drawn against money actually on de-
post to the credit of such association, or du,
thereto.
Fourth. On account Of liabilities to its stock
holders, for money paid in on capital stock, ano
dividends thereon, and reserved profits.
Sec. IS. md be 1t further enacted, That no asso-
citation shall, either directly or indirectly pledge
hypothecate any of its notes of circulation for
the purpose Of procuring money to be paid in on
its capital stock or to be used in its banking oper-
ations or otherwise.
Sec, A. And be ii further enacted, That no as
ISOLATION, or any member thereof, shall, during
the time il shall continue its banking operations,
withdraw or permit to be withdrawn, either in
form Of dividends, loans TO stockholders for q
longer time than six months, or any other man
ner any portion of its capital, and if losses shall
at any time have been sustained by any such as
ISOLATION equal to exceeding its undivided pro-
fits then on hand, no dividend shall be made and
no dividend shall ever be made by any associa-
ton while it shall continue its banking operations,
to an amount greater than its net profits then
on hand, deducting therefrom its losses and bad
debts and all debts due TO any association, on
which interest is past due and unpaid for period
Of SIX months, unless the same shall be well Sc
cured and shall be in process Of collection, shall
be considered bad debts within the meaning Of this
act.
Sec. As. And be 10 further enacted That the di-