The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1877-09-18
AN ACT
To authorize free banking.

AN ACT
To authorize free banking.
SECTION l. Be IL enacted 6y the Gene.
raj Assembly of the State of Ohio, That
any number of natural persons, not less
than five, may engage in the business of
banking, with all the rights, privileges
and powers conferred by, and subject to
the restrictions of, this act.
Sec 2. Persons associating to form a
banking company shall, under their
hands and seals, make certificate which
shall specify:
First-The name assumed by such
company,and by which it shall be known
| in its dealings; also the name of the
lplace where its banking operations shall
be carried on, at which place such bank
ling, company shall keep an Office for the
of business. +.
! Second-The amount of the capital
stock Of said company, and the number
of shares into which the same is divi.
ded
Third-The name and place of resi-.
dence, and the number of shares held by
each member Of the company.
Fourtb-The time when such compa-
ny shall have been formed.
Such certificate shall be acknowledged
before a justice Of the peace or notary
public, and transmitted to the secretary
of state, who shall record and carefully
preserve the same in his office: and q
copy thereof; duly certified, shall be by
him returned to and recorded By the re.
corder of the county where such com
Ipany is to be established. in book to
be kept by him for that purpose, which
shall at all times during office hours be
kept open for inspection of any person
wishing to examine the same. Copies
Of said record, duly certified by either OF
these officers, may be used as evidence
in all courts and places, for and against
any such company, and shall be conclu-
sive evidence OF the existence of such
banking company.
Sec 8. The capital stock of each
company hereby authorized shall be OF
least twenty FIVE thousand dollars, and
may be increased, from time to time, as
may be deemed expedient.
Sec. 4. At least fifty per centum of the
capital stock of every company shall be
paid in before it shall be authorized to
commence business, and the remainder
of the capital stock of such company
shall be paid in installments of at least
ten per centum each on the whole
amount Of the capital, as frequently as
one installment at the end OF each sue
ceeding month from the time it shall be
authorized to commence business, Pro-
vided that the amount so paid in shall
not be less than twenty five thousand
dollars.
Sec 5. Whenever any company herein
authorized shall furnish to the auditor,
governor, and secretary of state, satis-
factory evidence that said company has
complied with the preceding sections Of
this act, said auditor, governor, and sec.
retary of state shall furnish to said com.
pany certificate OF such fact, under
their hand, and under the great seal Of
the state, which shall be recorded in the
Office Of the secretary of state, in the
same book in which is required to be re,
corded the certificate provided for in the
second section of this act. :,
Sec g. Every company formed under
this act, after having procured the certif,
icate required in the fifth section of this
act, shall be and hereby is created body
polite and corporate, with succession,
until the repeal Of this act, and by its
name shall have power to contract, and
to prosecute and defend suits and actions
of every description, as fully as.natural
persons; to loan money, buy, sell and
discount bills of exchange notes, and
all other written evidences of debt, ex-
cept such as may be herein prohibited !;
to receive deposits, buy and sell gold
and silver coin and bullion, collect and
pay over money, and transact oil other
business properly appertaining to bank
ing, subject to the provisions and re-.
strictions Of this act; may acquire, hold
and convey such real estate as may be
convenient to the necessary transaction
Of its business, and no more, but may,
however, acquire title to any real estate
pledged to secure any debt previously
contracted, or purchased on an execu-
ton or order of sale to satisfy any judg
ment or decree in it's favor, or which
shall have been conveyed to it in pay
ment of any previous debt, but shall not
hold any real estate so acquired longer
than is necessary to avoid loss of any
part Of the debt, interest, and costs for
the collection or security of which it was
acquired; but at any time before selling
the same, upon being rendered by the
last preceding owner or his legal repre-
sentative, such sum as shall be necessary
to save such company from loss of any
part of the debt, interest, taxes, costs,
and other necessary charges for the col
lection or security of which such real es-
tate was acquired, such company shall
release to such owner, his legal repre-
sentative or assigns, all its rights, title
and interest therein.
Sec T. The capital stock of every
company shall be divided into shares OF
one hundred dollars each, which shall be
deemed personal property, land shall only
be assignsble on the books of the CON-
pany, in such manner as it's by laws
shall prescribe; each bank shall have a
| lien upon all the stock owned by its
debtors, and no stock shall he transferred
without the consent of majority of the
directors while the holder thereof is in.
debted to the company.
Sec No company shall take as Sc
lcurily for any loan, or discount lier
upon. any part of its capital stock; bu
the same security, both in kind and
amount, shall be required of sharehold
Iers as of persons not shareholders; ant
no banking company shall be the holder
or purchaser of any portion of the capi
tai stock of it or any other incorpora
tied company, unless such purchase shal
be necessary to prevent loss upon deb
previously contracted in good faith, o
: security which at the time was deemed
: adequate to insure the payment of sucl
debt, independent of any lien upon sucl
stock; and stock so purchased shall il
no case be held by the company so pur
jchasing for longer period of time thar