The Jackson standard. [volume] (Jackson C.H., Ohio) 1847-1888, 1877-09-13
Published by Authority.l
AN ACT
To Authorize Free Banking.

number OF natural persons, not less thar
hive, may engage in the business OF bank
ing. with all the rights. privileges and
powers conferred by, aud subject TO the
restrictions OF. this act.
SEC. 2 Persons associatinG TO form .
banking company shall, under theiI
hands and seals, make a certificate which
shall specify:
FfrSt-The name assumed by such com
pany, aud by which it shall be known ia
it's de4liugs also the name Of the place
where its banking operations shall be
cTried on. at which place such banking
company shall keep an Office for the
Transaction OF business.
SecOnd-The amount OF the capital
stock OF said company, and the number
OF shares into which the same is divided
Ihird-The name and place Of resi-
dence, and the number of shares held by
each member Of the company.
Fourth-The time when such company
shall have been formed.
Such certificate shall be acknowledged
before 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 a
copy thereof duly certified. shall be by
him returned to and recorded by the re-
corder of the county where such compa-
ny is to be established. IN a book to be
kept by him for tbs purpose. which shall
OF 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 those
officers, may be used as evidence in all
courts and places, for and against any
such company, and shall be conclusive
evidence of the existence Of such bank
ing company.
SEC The capital stock Of each com.
pany hereby authorized shall be at least
twenty five thousand dollars. and may be
increased, from time to time, as may be
deemed expedient.
SEC. A. 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 remain.
der 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
be not less than twenty-five thousand
dollars.
SEC. 5. Whenever any company here
in authorized shall furnish to the audi
tor, governor, and secretary of state, sat
isfactory 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
paDy a 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. 6. Every company formed under
this act after having procured the certif
cate 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, aud by its |
name shall have power to contract, and to |
prosecute and defend suits and actions OF |
every description, as fully Ms natural per |
sons; 10 loan money. buy, sell and dis |
count bills Of exchange. notes, aud all |
other written evidences Of debt, except |
such rs may be herein prohibited to re-
ceive deposits. buy and sell gold and sill |
Yer coin and bullion, collect and pay over /
money, and transact all other business |
properly appertaining to banking. sub |
jet TO the provisions and restrictions of /
this act; may acquire, hold and convey |
such real estate as may be necessary TO |
the convenient transaction OF its bust. /
ness, and no more, but may, however, &C |
quire title TO any real estate pledged TO /
secure any debt previously contracted, or /
Purchased on an execution or order of 4
sale to satisfy any Judgment or decree in /
It's favor, or which shall have been con-
veyed to it in pay 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. in
terest, and costs for the collection OF se-
curity Of which il was acquired; but at /
any time before selling the same, upon |
being rendered by the last preceding /
owntr, or his legal representative, such
sum as shall be necessary to save such |
company from loss of any part of the i
cebt, interest, taxes, costs, and other |
necessary charges for the collection or |
security of which such real estate was ac-
quired, such company shall release TO /
such owner, his legal representative or
assigns, all its rights, title and interest
therein.
SEC 7. The capital stock Of every |
company shall be divided into shares OF /
deemed personal property, and shall only |
be assignable on the books OF the com |
pany, in such manner as its bylaws shall |
prescribe; each bank shall have a lien |
upon all the stock owned by its debtors. |
and no stock shall be transferred without |
the consent OF a majority OF the directors |
while the holder thereof is indebted to |
the company.
SEC. s. No company shall take as Sc. |
curity Tor any loan, or discount lien up |
on, any part OF its capital stock; but the /
same security, both in kind and amount |
shall be required of shareholders as OF |
persons not shareholders; aud no bank |
ing company shall be the holder or pur-
chaser OF any portion OF the capital stock |
OF it or any other incorporated company, |
unless such purchase shall be necessary |
to prevent loss upon a debt previously |
contracted in good faith, or security |
which at the time was. deemed adequate |
10 insure the payment OF such debt. indie |
pendent of any lien upon such stock;
and stock so purchased shall in no case
be held by the company so purchasing
for a longer period of time than six
months. il the same can be sold for what
the stock costs At par.
SEC. 9. In all elections of directors,
and in deciding all questions at the
meetings of the stockholders, each share
shall entitle the owner thereof TO one
vote. Stockholders may vote by proxies
duly authorized in writing, but no officer
ol e.Iploye of the company shall act as
proxy.
SEC, 10. The affairs of every company.
formed and organized to carry on the
business OF banking under the provisions
OF this act. shall be managed by not less
than three nor more than FIVE directors,
as may be determined by majority in
interest OF the stockholders Every di
rector shall dining the w hole term of hi-