Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1877-09-14
AN ACT
To Authorize Free Banking.

SECTION 1. Be Il enacted 6y the Geasr-
| al assembly Of the State Of 0ltiS, Z bat any
| number Of natural persons, not less than
| Eve. NAV engage in the business of bank
| ing. witt. all the rights, privileges and pow
ers conferred by. and subject TO the re-
strictions of, this act.
SEC. 2. Persons asSnciating to form
banking company shall, under their hands
and seals. make certificate which shall
specify:
| First-The name assumed by such com
PAM. and by which it shall be known ID us
| dealings; also the name Of the place Where
| its banking operations shall be carried OIL
a. which place such banking company shail
keep an Office for the transaction OF Dnsl-
ness.
.Secoad-The amount Of the capital STOCK
of said company, and the numoer oI SIiareS
! into which the same is divided.
| Tbir3-The name and place OF resi-
dance and the number of shares held by
| each member of the company.
! Fourfb-The time when such company
shall have been formed.
Snch certificate shall be acknowledged
| before a Justice of the peace or notary pub
] lie. and transmitted 20 the SECRETARY of
/ state, who shall record and carefully pre-
serve the same in his office; and Il copy
thereof. duly certified. shall be by him re-
turned to and recorded by the recorder of
the county where such company is TO be es-
tablished, in a book TO be kept by him for
that purpose, which shall at all times dur
ing Office hours be kept open for inspection
of any person wishingtO examine the same.
Copies of said record. duly certified by
eli her of those officers, may be used rs evl-
dence in all courts and places, for and
against any such company, and shall be
conclusive evidence of The existence Of such
banking company.
SEC. 8. 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, rs may be
deemed expedient.
SEC. 4. AT least fifiy per eentum OF the
capital stock OF every company shall be
paid in before it shall be authorized toccm-
mence business, and the remainder OF tne
capital stock of such company shall be PAID
| in installments of at least len per ceneuin
each on the whole amount OF the capital,
as freonently as one installment at the end
of each succeeding month from the time 1t
| shall be authorized tO commence business.
Provided. that the amount so paid in shall
be not less than twenty-five thousand dol
lars.
SEC. 5. Whenever any company herein
authorized shall furnish to the auditor,
governor, aud secretary of state, satisiac-
ioty evidence that said company has COM
piled with the preceding sections Of this act,
said audi or, governor, and secretary OF
Stale shall furnish TO said company GER
tifca, OF such act, under their hand, and
under the g eat seal Of the STATE, which
shall be recorded 10 The Office of the secre-
tary of stale, iu The same book in which Is
required 10 be recorded The certificate pro-
vided for in he second sec.ion OF this act.
SEC. 6. Every company formed under
| this ac,. al, er having procured the certlh-
cafe requiredin ihe fi;ih section of this act,
shall be and hereby is ereated a body poll
tic and corpofsIe. with succession, until
! the repeal OF this act. and by its name shall
have power 10 contract, aud TO prosecute
and defend suits and actions of every de-
scripiion, as fully as Ba, ufal persons; to
loan money, buy, sell and discount bills OF
| exchange, notes, aud all o.her writ en- evil
denceS OF debt, except such as may be here
in prohibited; to receive deposits. buy and
/ sell gold and silver coin and bullion, col
lect and pay over money, and transact all
other business properly appenaining to
banking, subject to he provisions and re-
striciions of This act; may acquire. hold
and convey such real estate as may be nee
essarv 10 the convenient transaction OF its
| business, and no more, but may, however,
acquire lille to any real estate pledged to
secure any debt previously contracted. or
purchased on an execution or order of sale
to satisfy any Judgment or decree in its ia
vor or which shall have been conveyed TO
it in payment of any previous debt, but
shall not hold any real estate so acquired
| longer han is necessary to avoid loss OF
any part of the debt, interest, and costs for
| the collec, ion or security of which it was
acquired; but at any rime before selling
the same. upon being rendered by the last
preceding owner, OF his legal represents
tive. such sum shall Oe necessary TO save
such company from loss Of any part of the
debt, interest. taxes, costs, and other nee
essary charges for the collection or secuIi-
/ ty of which such real estate was acquired,
such company shall release to such owner,
his legal representative or assigns, all his
rights, title and. interest therein.
SEC. z. The capital 81 Ock of every com
| panv shall be divided into shares of one
| hundred dollars each, which shall be deem
Ell PERSONAL p,Oper,y, and shall only be as
signabe on The books OF the company, in
such manner as irs bylaws shall prescribe;
each bank sh9ll have lien upon all The
stock owned by It's debtors, and no stock
shall be transferred without the consent of
! a majority of he directors while he holder
thereof is indebted TO the company.
SEC. s. No company shall axe as secur-
lty for any loan. OF discount lien upon,
anv part its capita stock; but the same
security, both in kind and amount, shall be
required OF shareholders as of persons not
shareholders; and no banking company
| shall be the holder or purchaser of any por-
| tiOn of the capital stock of it or any other
incorporated company, unless such pGr-
| chase shall be necessary TO prevent loss up
| on a debt previously contracted in good
| faith, or security which at the time was
| deemed adequate TO insure the payment of
such debt, independent of any lien upon
such stock; and stock so purchased shall
in no case be held by the company so pur-
chasing for longer period of time than six
| months, il the same can be sold for what
| the stock costs at par.
SEC. 8. 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. Stockhold-
ers may vote by proxies duly authorized in
writing, but no officer or emplOye of the
company shall act as proxy.
/ DEC. he dudlTS OL every company,
formed and organized 10 carry on the bust
ness of banking under he 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 director SHALL
during the whole term of his services, be
resident of this stale. The directors of
each banking company, collectively, shall
own at least one-tenth of the capital stock:
each director shall lake an oath, that he
will, so far as the duty devolves on him.
diligently and honestly administer the af-
| fairs Of the company, and not knowingly
violate, or willingly permit to be violated,
any of the provisions of this act; that he
is the bOHdtide owner, in his own right,
of the stock, specifying the amount, stand
ing in his name on the books of the compa-
ny, and that the same is not hypothecated,
or in any [wayl pledged, as security for
any loan obtained, or for any debt owing.
which oath, subscribed by himself, and
certified by the officer before whom it was
taken, shall be filed and carefully preserv-
ed in the Office of the recorder of the
county in which the banking company is
located. --i
SEC. II. The directors of any banking
company first elected shall hold their
places until the first Monday in January
next thereafter, and until their successors
shall be elected and qualified; all subse-