The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1877-09-18
employe of the company shall act as

employe of the company shall act as
proxy.
SEC 10. The affairs OF every compa-
ny 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 d.
rector shall, during the whole term of his
services, he resident of this state. The
directors of each banking company, COL
lectively, shall own at least one-tenth of
the capital stock; each. director shall
take On oath that he will, so far as the
duty devolves on him, diligently and
honestly administer the affairs OF the
company, and not knowingly violate, or
willingly permit to he violated, any of
the provisions of this act; that he Is the
bonajfde owner, In his own right, of the
stock, specifying the amount, standing
in his name on the books of the compa
ny, and that the same is not hypotheca-
ted, or in any way pledged, as security
for any loan obtained, or for any debt
owing, which oath, subscribed by him
self, and certified by the officer before
whom it was taken, shall be fled and
carefully preserved in the Office of the
recorder OF the county in which the
banking company is located.
Sec H. The directors of any banking
company first elected shall hold their
places until the first Monday in January
next thereafter, and until their success
ors shall be elected and qualified; /; all
subsequent elections shall be held annu
ally on the first Monday of January, at
the office of the bank, and the directors
so elected shall hold their places for one
year, and until their successors are elect.
ed and qualified. But any director re.
moving from the state shall thereby va
cate his place. ANY vacancy in the
Board shall be filed by appointment by
the remaining directors; the director so
appointed shall hold his place until the
next annual election; and if, for any
cause, an election Of directors shall not
be made at the time appointed, the CON-
pany for that cause shall not he dissolv-
ed, but an election may be held on any
subsequent day, thirty days notice there
OF having been given, in a newspaper
printed and in general circulation in the
county where the company is located.
Sec. II No banking company hereby
authorized shall at any time issue,
or have In circulation, any note, draft,
bill Of exchange, acceptance, certificate
of deposit, or any other evidence Of
debt, which, from its character, form or
appearance, shall be calculated or intend
ed to circulate as money and every vic
klation of this section, by any officer or
member OF banking company, shall be
deemed and judged misdemeanor, pun
ished by fine or imprisonment, or both,
in the discretion of the court having
|cognizance thereof, as now provided by
law.
Sec 13, Each banking company shall
at all times have on hand, of lawful
money of the United States, an amount
equal to at least twenty per centum of its
deposits; and whenever the lawful mon
ey OF any company shall fall below twen-
ty per cent of its deposits, such company
shall not make any new loan or dis
count, otherwise than by discounting or
purchasing bills of exchange payable at
sight, nor make any dividend of its prof.
its, until the required proportion OF its
deposits, and its lawful money of the
United States, shall have been restored
and for such purpose actual deposits
with any solvent bank or banker, in the
cities of New York, Boston, Philadel
phia and Baltimore, subject to be drawn
against at sight, and payable in lawful
money Of the United States, or money
actually invested in bonds of the United
States, shall be deemed equivalent TO
lawful money of the United States.
Sec a. No banking company herein
authorized shall at any time be indebted,
or in any way liable, to an amount ex.
ceeding the amount of the capital stock
actually paid in and remaining as capital
stock, undiminished by losses or other.
wise, except on the following accounts
first, on account of moneys deposited
with or collected by such company Sec
ond, on account of bills of exchange or
drafts drawn against money actually paid
on deposit to the credit of or due to
such company; third, liabilities of its
stockholders on account Of moneys paid
in as capital stock, and dividends there
on.
Sec. Is No banking company shall,
during the time it shall continue its ope-,
rations as bank, withdraw or permit to
be withdrawn, either in form of divi-
dends, ,loans to stockholders for longer
period of time than six months, or in
any other manner, any portion of its
capital stock; and if losses shall have
been at any time sustained by any bank.
ing company, equal to or exceeding its
undivided profits then on hand, no divi-
dend shall be made; and no dividend
shall ever be made by any banking COM
pany, while i. shall continue its banking
operations, 10 an amount greater than its
net profits then on hand, deducting
therefrom its losses and bad and sus.
pended debts; and all debts due to q
banking company on which interest is
past due and unpaid tor period of six
months, unless the same shall he well Sc
cured and in process of collection. shall
be considered bad or suspended debts
within the meaning of this act
Sec. 16 The Directors of each bank.
ing company shall, semi-annually. de-
clare dividend of so much of the net
profits of the company as they shall
deem expedient; but srch company
shall, before the declaration of divi.
dend, carry one.tenth part of it's net
profits of the preceding half.year to its
surplus fund, until the same shall amount
to twenty per centum of its capital
stock. n. t.
l Sec II. Every banking company shall
make to the auditor of state report, &C
cording to the form which may be pre-
scribed by him, verified by the oath OF
the president or cashier of such compa.
ny, which report shall exhibt in detail,
and under appropriate heads such as be
shall require, the resources and liabilities
Of the company before the commence
ment Of business in the morning of the
first Monday of the months of January