The tri-weekly standard. [volume] (Raleigh, N.C.) 1866-1868, 1866-07-31
The N. G.. Banking Law.
AN ACT TO ENABLE THE BANKS OF THE
STATE TO CLOSE THEIR BUSINESS.


AN ACT TO ENABLE THE BANKS OF THE
STATE TO CLOSE THEIR BUSINESS.
WHEREAS, The financial policy of the Federal
Government adopted to maintain the national
credit, with the heavy taxes imposed by that COY
eminent on the Banks of the State, makes 1t an
solutely necessary that said Banks should close
their business and renders a further continuance
of their corporate existence IDLE ana useless 10 he
people of the State,
Section l. Be it enacted 6y the General assembly
of the State of North Carolina, and 1t IS heTe0y
enacted 6y the dath1ity Of the same, That II the
Stockholders of any of the Banks chartered by the
General Assembly of this State shall De unwilling
to close the business of their Banks by an assign
ment and are DESTROYS to an te ~ m
and effects of such Bank tor the benefit OF It's
creditors and to close its business and surrender
their chartered rights and franchises III con1ornl-
ty with the subsequent provisions OF TINS ACT,
such Stockholders may by their bill in equity in
the name of such Bank filed in the Court OF Equity
OF the county in which the principal Bank or any
OF its branches may be located, require the credl-
tors of such Bank to prefer and establish their
demands within such time (not less than twelve
months after decree therefor) rs shall be allowed
by the Court. The Court shall upon filing such
bill appoint commissioner suitable person
acquainted with the business of such Bank, who
shall be paid for his services such sum as may DE
allowed by the court. Such commissioner shall
give bond with ample security, payable to the
State for the faithful discharge OF his duties III
such sum shall be approved by the court,
which bond shall be filed in court and may be
sued on for the of such persons as the court
may allow.
Sec q Be it further enacted, That the commits
sioner appointed aforesaid, upon filing the bond
required of him, shall forthwith become, and so
long as he shall contiue such commissioner and
no longer shall be vested with all the estate, eff
fects and rights of action which such Bank posses
sed, had or held or was vested with, at the time
of filing such bill, and which such Bank could at
that time have lawfully sold, assigned or trans
ferred including all debts due to such Bank or to
any person for its and all liens and securities
therefor The court may require such Bank by
its Cashier or other proper officer to endorse
without recourse, all such bills or notes, draw all
such checks or orders for money and execute such
other paper writings as the court shall deem ne
cessary or useful to enable the commissioner to
demand or recover and receive the estate and et-
fects of such Bank for the benefit of its creditors
The commissioner shall have the like remedy to
recover and receive all the estate debts and effects
belonging to such Bank at the time of filing its
bill, as such Bank might have had if no proceed
ings had been had under this act and should any
such Bank have made any sale or transfer of its
property effects, fraudulent as to its creditors
but valid as between the parties, in such cases
such commissioner shall stand in the place of the
creditors, and may recover and receive such pro-
pertyor effects so traudulently sold or transferred,
although such Bank could not have done so. In
all suits prosecuted by such Commissioner at
law or in Equity the plaintiff shall be styled " The
Commissioner adding thereto the name of the
particular Bank for which he has been appointed
the COMMISSIONER and if at the time of filing
such bill by any Bank any action at law pro-
ceedng suit in Equity shall be pending in the
name of such Bank for the recovery of any estate,
debt or demand which might or ought to be vested
in such Commissioner as aforesaid, such Commits
sioner shall be admitted to prosecute the in
like manner and to like effect; and no suit pend
ing at any time for the recovery of any estate,
debt or demand in the name of such Commission |
er shall be abated by the death or removal ofsuch
Commissioner, buta Commissioners be appoint |
ed in such cases Gas is hereinafter Provded) shall
be admitted to prosecute the same in like manner |
and to like effect as if the same had been origin
ally commenced by him.
Sec. 3. Be further enacted, That the Commits |
soner aforesaid shall in all things connected with
apt
under the direction and orders of the court; and |
if any such Commissioner shall refuse unrea- |
sOnably delay or neglect to obey any rule, order |
decree of the court it shall be tire duty of the
court to remove such Commissioner; and upon |
such removal or upon any vacancy by death or |
otherwise, the court shall appoint some other |
person Commissioner, who shall enter into bond |
in such sum the court shall direct in like man
ner and for the like uses and purposes provided
in cases of the Commissioner first appointed
and thereupon all the estate, property, effects
debts and rights of action vested in such Bank
after the time of filing its BILL not before lawfully
disposed OF by any former Commissioner shall be
forthwith vested in such new commissioner as
legally and effectually if he had been the com
missioner first appointed and the court shall have
the power to REQUIRE any former commissioner mr.
the representative of any deceased commissioner
to surrender to such new commissioner any such
estate, effects, money or evidence of debt which
of right should be in the hands possession OF |
such new commissioner.
Sec 4. Be it further enacted, That all demands
OF creditors may be preferred and proved before
such commissioner, and for all purposes connect
ed with the Investigation of the demands of any
person claiming to be creditor aforesaid, the
commissioner shall have power to administer all
oaths required in the course of such proceedings
Amy supposed creditor whose claims shall be
wholly or in part dsallowed by any commission
er, may appeal to the Court, where the same shall
be determined according to the course of the |
Court, or decided at law, the court may direct;
and in all such appeals the case shall be docketed
in the name of the creditor against "The Com
missioner of - (adding the name of the Rant
OF which he is commissioner and shall be tried |
cd I1af1r
In all cases in which any such commissioner shall
be party, whether plaintiff or defendant and If |
shall appear that there has been mutual credit
given by the Bank, and any other corporation or
any person who is the opposite party or there are
mutual debts between them, whether such debts
be due and payable or not, the account between
the parties shall be stated, and one debt shall he
set off against the other, and the balance of such
account only shall be allowed or paid on either
be paid by either party as the court shall direct.
The commissioner shall from time to time pre-
pare statements in writing of all claims allowed
by him showing the character of such claims and
the evidence on which their validity is based
ana there shall be no application of any funds in
the hands OF such commissioner to the satisfac-
ton in whole or in part of any claim whatever
except under rule or order of the court there,
for. '- ~
Sec. 5. Belt further enacted That the court shall
make all proper orders and DEGREES for the coIIec
ton of the assets of such Bank of every nature |
and description, and for the payment of the costs
and expenses incident to the PROCEEDINGS The
creditors whose claims and demands have been
proved and established as aforesaid against the |
estate and effects of such Bank in the hands of the
commissioners, shall be entitled to payment in |
satisfaction of the out of the assets in hands
of such commissioner, as the court shall ordar |
and direct; and all such claims and demands not
prosecuted, proved and established accordinosto
the provisions of this act within the time a1IoSeG
by the decree of the court therefor shall be bo.J
of recovery by any action at law other procad
ing in equity; and any suit brought for their ra
covery Otherwise than is herein provided shah or
the plea of the commissioner of such Bank be
abated, on his motion be dismissed. ~
Sec g. Be further enacted, That it shall not he
necessary in any bill filed under this act to make
any particular persons or corporations parties by
name, but 1t shall be sufficient if the defendants
be denomnated creditors of the particular Bank
in behalf of which suit may be instituted; and