The tri-weekly standard. [volume] (Raleigh, N.C.) 1866-1868, 1866-05-01
THE N. C. BANKING LAW.
ANACT TO ENABLE THE BANKS OF THE
STATE TO CLOSE THEIR BUSINESS.

ANACT TO ENABLE Tile bANhSsOr LIE
: 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 Gov
eminent on the Banks of the State, makes II aD-
solutely necessary that said Banks should close
their business, and renders further contlnu tnee
of their corporate existence idle useless to the
Section /. Be it enacted By the General assembly
of the State of North Carolina, and 1t is hereby
enacted 6y the Gutthrity Of the same, That II the
Stockholders of any OF the Banks chartered by the
General Assembly of this State shall be unwilling
to close the business of their Banks by an assign
ment, and DESTROYS to appropriate all the estate
and effects of such Bank TOR the beneht OF It's
creditors, and to close its business and surrender
their chartered rights and franchises in conform
ty with the subsequent provisions OF TINS ACT,
such Stockholders may by their bIll IN eqTlty IN
of the county in Which the principal Bank OF any
of its branches may be located, require the creo-
tors Of such Bank to prefer and estaollsh tneT
demands within such time (not less than twelve
months after decree therefor) as shall be allowed
by the Court. The Court shall upon ming such
bill appoint commissioner u suitable person
acquainted with the business OF such BANK, VINO
shall be paid for his services such sum as may be
allowed by the court. Such commissioner snail
give bond with ample security, Payaole TO t!e
State for the faithful discharge OF his duties IN
such sum as shall be approved by the couTt,
sued on for the use of such persons as the court
may allow.
Sec 2 Be it further enacted, That the commits
sioner appointed aforesaid upon filing the bond
required of him, shall forthwith become, and SO
long he shall contiue such commissioner ana
no longer shall be vested with all the estate ef
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 use and all liens ana secuTlt1es
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
|
cessary useful to enable the commissioner to
demand or recover and receive the estate and e.
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 ut the time of filing lis
bill, as such Bank might have had II no proceed
| ings had been had under this act; and should any
such Bank have made any sale or transfer OF lis
property effects, fraudulent as to its creditors
| but valid as between the parties, III such cases
such commissioner shall stand i'll the place OF the
/ creditors and may recover and receive such pro-
pertyo effects so iraudulently sold 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
such bill by any Bank any action at law or pro-
ceeding suit in Equity shall be pending IN the
of such Bank for the recovery OF any estate,
| debt or demand which might or ought to be vested
! in such Commissioner aforesaid, such Commits
sioner shall be admitted TO prosecute the same III
like manner and to like effect AVID suit pend
| ing ut any time for the recovery of any estate,
| debt demand in the name OF such Commission
| er shall be abated by the death or removal ofsuch
Commissioner, buta Connssonerto be appoint
I'd in such cases Gas is hereinafter proyide) shall
be admitted to prosecute the same in ike manner
and to like effect if the same had been origin
| ally commenced by him.
| See 3 Be- it T,uiter enacted, That the Commits
sioner aforesaid shall il: all things connected with
the discharge of his duties as Commissioner, act
under the direction and orders CT the court; and
! il any such Commits :uner shall refuse or unreal
sonably delay neglect 10 obey any rule, order
decree of the corrt, it shall be the duty OF the
court to remove such Commissioner; and upon
such removal ca upon any vacancy by death or
otherwise, the court shall appoint some otier
person Commissioner, who shall enter into bond
iii such sum ti.e court shall direct in like man
and for the like uses and purposes as provided
in cases of the Commissioner first appointed;
and thcrcupua all the estate, property, effects
/ debts and rights of action vested i'll such Bank
after III" 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 effuctually as if he had been the COM
missioner first appointed; and the court shall have
/ the power to require any former commissioner or
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 or possession of
such commissioner.
See l. Be it further enacted, That all demands
of creditors may be preferred and proved before
such commissioner and for all purposes connect
cd with the investigation of the demands OF any
person claiming to be creditor as 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 i'll part disallowed by any commissions
cr, may appeal to the Court, where the same shall
be determined according TO the course of the
Court or decided at law, as the may direct
and in all such appeals the shall be dOckcted
in the name of the creditor against The Com
missioner of -" adding the name of the Bank
of which he is commissioner and shall be tried
and determined as like suits between other parties
In all cases in which any such commissioner shall
be a party, whether plaintiff or defendant, and it
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
NUT al debts between thcm whether such debts
be due and payable or not the account between
the parties shall be stated and one debt shall be
set off against the other, and the balance of such
side spectivey and the costs in all shall
be paid by either party the court shall direct
The commissioner shall from time to time pre-
pare statements in writing of all claims allowed
10y him; showing the character of such claims and
the evidence which their validity is based !;
and 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 a rule or order OF the court there
iOr.
Sec. s. Be it turthe, enacted That the court shall
make all proper orders and DEGREES for the colec
zion 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 aforesaid against the
estate and effects of such Bank in the hands of the
commissioner, shall be entitled to payment in
satisfaction of the same out of the assets in hands
of such commissioner, the court shall order
and direct; and all such claims and demands not
prosecuted, proved and established according to
the provisions of this act within the time allowed
by the decree of the court therefor shall be barred
| of recovery by any action at law or other proceed
ing in equity; and any suit brought for their re-
covery otherwise than is herein provided shall on
the plea of the commissioner of such Bank be
abated, or on his motion be dismissed.
Sec. 6. Be 1t further enacted, That it shall not be
necessary in any bill filed under this act to make
any particular persons or corporations parties by
name, but it shall be sufficient if the defendants
be denominated creditors of the particular Bank
| in behalf of which suit may be instituted and
notice of the bill shall be published for the space
of thirty days so soon as it may be filed in at least
| fifteen newspapers, one of which shall be pub
| lshed in the City of Raleigh; one in the city of
| Charleston, s. e.; in the city of Richmond,
Va; one in the city of Baltimore Md; one in the
city of Philadelphia; one in the city of New York
one in the city of Augusta, Ga; n-the city OF
Montgomery, Ala; one in the city of N Orleans;
and one in the city of Nashville, Tenn.
Sec. T. Be it further enacted, That any of the
the Judges of the Supreme Court, of the Su-
perior Courts of law and equity, shall have power
at his chambers, from time to time, to make any
such rules, orders or DEGREES as may be necessary