Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1863-09-05

| nOteS COuIeIlplotcu ny ILLS aCts SACcPs 40
hereinbefore provided, and in accordance
with the true intent and meaning of this act
and any officer who shall violate the provis-
ions of this section shall be deemed guilty of
high disdemeanor, and on conviction thereof
shall be punished by fine not exceeding doub-
lie the amount so countersigned and delivered,
and Imprisonment not exceeding fifteen years.
atthe discretion of the court in which he shall
be tried.
Sec. "a. Ind be 1t .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 banking association shall be liable there
for; but no part of The stock pledged by such
banking association, as aforesaid, shall be APP
piled to the payment of such fees; and all ex.
penses of any preliminary or other examina-
tions into the condition Of any association shall
be paid by such associations and all expenses
of any receivership shall be paid out Of the
assets of such association before distribution
of the proceeds thereof.
Sec. 50. Ind be 1t .1nrther cuacfcd, That
the stockholders, collectively, of any such as
ISOLATION shall at 10 time be liable to such as
ISOLATION. either as principal debtors Or sure
ties or both, to an amount greater than three
fiflhs of the capital stock actually paid in and
remaining undiminshed by losses or other
wise; nor shall the directors BIZ so liable, ex-
ccpt to such amount and in such manner as
shall be prescribed by the bylaws of such as.
ISOLATION, adopted by its stockholders to reg
rlate such liabilities.
Sec. 36. And be II further enacted, That
the capital stock of any association formed
under this act shall be divided into share of
one hundred dollars each, aad shall be assign
able on the books of the association in such
manner as its 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 so long as he shall be
liable, either 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 shareholder be entitled
to receive any dividend, interest, or profit OH
such shares so long as such liabilities shall
continue, but all such dividends, interests, and
profits shall beretaned by the association, and
applied to the discharge of such liabilities
and no stock shall be transferred without the
consent of majority Of the directors while
the holder thereof is thus indebted to the as
ISOLATION.
Sec. 81. And he IL further enacted. That
no banking association shall take. as security
for any loan or discount, lien upon any
portion of its capital stock; but the same
security, both in kind and amount, shall be
required of shareholders as of other persons
and no such banking association shall be the
purchaser Or holder of any portion of its CAPT.
tai stock. or of the capital stock of any other
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shall be necessary to prevent loss upon debt
previously contracted in good faith, on secu-
rity which, at the time, was deemed adequate
to insure the payment Of such debt, indepen-
dent of any lien upon such stock; or in case
of forfeiture of stock for the nom payment of
instalments due thereon, and stock SO purclas-
ed or acquired, shall in no case be held by
such association SO purchasing for a longer
period of time than six months, if the same
can, within that time, be sold for what the
stock cost.
Sec. 80. 41nd he 1t further enacted, That
in all elections of directors, and in deciding
all questions at meetings of shareholders, each
shareholder shall be entitled TO one vote on
each share of stock held by him; shareholders
may vote by proxies duly authorized in
writing; but no officer clerk, teller, or book
keeper of such association shall act as proxy;
and no stakeholder whose liability is past
due and unpaid shall he allowed to vote.
Sec 80. And be it further enacted, That
the affairs of every such association shall be
managed by not less than five nor more than
nine directors, one of whom shall be president
of the association; every director shall, dur
ing his whole term of service, DO citizen of
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in which such association is located. At
least three forths of the directors shall have
resided in the state in which such association
is located one year next preceding their
election as directors and each director shall
own in his own right, at least one per centum
of the capital stock of such association not
exceeding 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
as the duty devolves on him, diligently and
honestly administer the affairs of such asso-
citation, and will not knowingly violate, or
willingly permit to be violated, any Of the
provisions of this act, and that he is the bona
fide owner, in lis own right, of the shares of
stock standing in his name on the books of
the association, and that the same is not n.y.
pothecated or in any way pledged, as securi-
ty for any loan obtained or debt owing to the
association Of which he is director, which
oath. subscribed by himself, and certified by
the officer before whom it is taken, shall be i'm
mediately transmitted to the comptroller of
the currency. and by him filed and preserved
in his Office.
Sec. 40. And be 1t further enacted, That
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