The tri-weekly standard. [volume] (Raleigh, N.C.) 1866-1868, 1866-06-19
The N. C. 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 Gov
ernment on the Banks of the State, makes it ah-
solutely necessary that said Banks should close
their business, and renders further continu nce
of their corporate existence idle and useless to the
people of the State,
Section l. Be it enacted by the General assembly
Of the State Of North Carolina, and it is hereby
enacted 6y the auth'ity Of the same, That if 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 assign
ment, and desirous to appropriate all the estate
and effects of such Bank lor the benefit of it's
creditors and to close its business and surrender
their chartered rights and franchises in conformi
ty with the subsequent provisions OF this act,
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 credi-
demands within such time (not less than twelve
months after decree therefor) shall be allow ed
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 be
allowed by the court. Such commissioner shall
give bond with ample security, payable to the
State for the faithful discharge of his duties in
such sum as shall be approved by the court,
which bond shall be filed in court and may be
sued on for the use of such persons as the court
may allow.
Sec, Z, he 1t TuTtHe1 eHdcteQ, IlaC the cOmmlS
sioner appointed as aforesaid upon filing the bond
required of him, shall forthwith become, and
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 vested with ut the time
of filing such bill, and which such Bank could at
that time have lawfully sold, assigned trans
ferred including all debts due to such Bank
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 notes, draw all
such checks or orders for money and execute such
other paper writings the court shall deem
cessary or useful to enable the commissioner to
demand recover and receive the estate and ef
fccts of such Bank for the benefit of its creditors
The commissioner shall have the like remedy to
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-
perty effects raudulently 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 or pro-
ceeding or suit in Equity shall be pending in the
name of such Bank for the recovery of any estate,
debt or demand which might or oug ght to be vested
in such Commissioner as aforesaid, such Commis-
sioner shall be admitted to prosecute the same 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
shall be abated by the death or removal of such
Commissioners but Commissionerto to be appoint
ed in such (as is hereinafter provided) 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 it further enacted, That the Commits
sioner aforesaid shall in all things connected with
the discharge of his duties as Commissioner act
nm direction and orders of the cOurt. and
il any such Commissioner shall refuse or unrca-
sonably delay neglect to obey any rule, order
or decree of the court it shall be the 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 and purposes as 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 effcctualy 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 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 as aforesaid, the
commissioner shall have power to administer all
oaths required in the course of such proceedings.
Any 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, decided at law, as the court may direct;
and in all such appeals the shall be docketed
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 like suits between other parties
In all cases in which any such commissioner shall
be 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
be due and payable or not, the account between
the parties shall be stated, and one debt shall be
account only shall be allowed or paid on either
side respectively 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
by him; showing the character of such claims and
the evidence on which their validity is based !;
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. -t-.t-i
Sec. 5. Be it further enacted That the court shall
make all proper orders and DEGREES for the collec
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 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, as the court shall order
and direct; and all such claims and demands not
prosecuted, proved and established accordingsto
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 OF other proceed
ing in equity; and any suit brought for their re-
coyery otherwise than is herein provided shall on
the plea of the commissioner of such Bank be
abated, or on his motion be dismissed.
Sec. g. Be further enacted, That it shall not be