The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1877-09-13


In circulation, any note, draft, bill of e6-
change, acceptance, certificate of deposit, or
any other evidence of debt, which, from its
character, form or appearance, shall be cal
culated or intended to circulate as money :;
and every violation of this section, by any
officer or member of a banking company,
shallbe deemed and judged misdemeanor,
punished by fine or Imprisonment, or both,
in the discretion of the court having cog.
nizance thereof, as now provided by law.
SECTION Is. 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 money
of any company shall fall below twenty per
cent. of its deposits, such company shall not
make any new loan or discount, otherwise
than by discounting or purchasing bills of
exchange payable at sight, nor make any
dividend of its profits, until the required
portion of its deposits, and its lawful
money of the United States, shall be re.
stored; and for such purpose actual depos.
its with any solvent bank or banker, in the
cities of New York, Boston, Philadelphia,
and Baltimore, subject to be drawn against
at sight, and payable in lawful money of
the United States, or money actually in
vested in bonds of the United States, shall
be deemed equivalent to lawful money of
the United States.
SECTION IA. No banking company herein
authorized shall at any time be indebted, or
in any way liable, to an amount exceeding
the amount of the capital stock at such time
actually paid in and remaining as capital
stock, undiminished by losses or otherwise,
except on the following accounts: first, on
account of moneys deposited with or col
lected by such company; second, on ac-
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against money actually paid on deposit
to the credit of or due to such company;
third, liabilities of its stockholders on ac-
count of moneys paid in as capital stock,
and dividends thereon.
SECTION 10. No banking company shall,
during the time it shall continue its opera
tions as bank, withdraw, or permit to be
withdrawn, either in form OF dividends,
loans to stockholders for longer period of
time than six months, or in any other man.
ner, any portion of its capital stock and if
losses shall have been at any time sustained
by any banking company, equal to or ex-
ceeding its undivided profits then on hand,
no dividend shall be made; and no divi-
dend shall ever be made by any banking
company, while it shall continue its hank
ing operations, to an amount greater than
its net profits then on hand, deducting
therefrom its losses and bad and suspended
debts; and all debts due to a banking COM
pany on which interest is past due and un-
paid for period of six months, unless the
same shall be we'll secured and in process of
collection, shall be considered bad or sus-
pended debts within the meaning of this
act.
SECTION 16. The directors of each bank
ing company shall, semi-annually, declare a
dividend of so much of the net profits of the
company as they shall judge expedient; but
such company shall, before the declaration
of a dividend, carry one-tenth part of its
net profit of the preceding half year to its
surplus fund.- until the same shall amount
to twenty per centum of its capital stock.
SECTION II. Every banking company
shall make to the Auditor of State report,
according to the form which may be pre-
scribed by him, verified by the oath of the
president or cashier of such company,
which report shall exhibit in detail, and
under appropriate heads such as he shall
require, the resources and liabilities of the
company before the commencement of busi-
ness in the morning of the first Monday of
the months of January and July of each
wear, and shall transmit the same to the Au-
ditor of State within ten days thereafter.
SECTION IS. Every banking company de-
irving its powers and privileges from this
act may take, reserve, receive, and charge
ON any loan or discount made, or upon any
bill of exchange, or other evidence of debt,
at the rate of interest allowed by the laws
of the State, on the amount of any such
note, bill of exchange, or other evidence OF
debt so discounted, and no more; provided,
however, that interest may be received or
taken in advance, at the time OF making the
loan or discount, according to the usual
ru,es of banking; but the purchase, sale, or
discount of bill of exchange payable at
another place than the place of such pur-
chase, sale, or discount, at the current rate
of discount or premium, shall not be con-
sidered taking, receiving, or reserving of
interest. And the knowingly taking, re-
ceiying, reserving, or charging rate of in
terest greater than aforesaid shall be he'd
and adiudged a forfeiture of the interest
which the note, bill, or other evidence of
debt carries with it, or which has been
agreed to be paid thereon. And in case
greater rate of interest has been paid, the
person or persons paying the same, or
their legal representatives, may recover
back, in any action of debt, the entire
amount of interest thus paid from the COM
pany taking or receiving the same.
SECTION 10. The total liabilities of any
person. company, corporation, or firm, for
money borrowed, including in the
liabilities of the several members thereof
to any banking company herein authorized,
shall at no time exceed one-tenth part OF
the amount of the capital stock of such
company actually paid in; provided, that
the discount of bona fdc bills OF exchange
drawn against actually existing values, and
the discount of commercial or business pa
per actually owned by the person orPersons,
corporation or firm negotiating the same,
shall not be considered money borrowed.
on All trau eferr Of notes hOndS
bills of exchange, and other evidences OF
debt, owing to any banking company, or OF
deposit to its credit; all assignments OF
mortgages or other securities in real estate,
or of judgments or DEGREES in its favor; all
deposits of money, bullion, or otner valuable
things. for its use, or for the use of any of
| its stockholders or creditors all payments OF
money to either, made after the commission
of an act of insolvency, or in contemplation
| thereof, with a view to prevent the appllca
| ton of its assetsin the manner described by
law, or with the view to the preference Of
one creditor to another, shall be held utterly
null and void.
SECTION 21. If the directors of any,bank
! ing company which shall have availed itsel
/ of the privileges of this act shall knowingly
violate, or knowingly permit any of the Of
ficers, agents, or servants of such company
| to violate any of the provisions of this act
all the rights, privileges and franchises o
said company, derived from this act, shall
thereby be forfeited; such violation, how
ever, to be determined and adjudged by ;
court of competent jurisdiction, agreeablI
to the laws OF this State, and the practice o
such court, before the corporation shall b,
declared dissolved; and in case of sucl
violation, every director who participated il
or assented to the same shall be held liable
in his personal and individual capacity, fO
all damages which the company, its share
holders, or any other person, body polite
or corporate, shall have sustained in conse
quence of such violation.
SECTION %. Every president, director
cashier, teller, clerk, or agent of any bank
ing company, who shall embezzle, abstract
or willfully misapply, any of the moneys
funds, or credits of such company, or shall
without authority from the directors, issu
or put forth any certificate of deposit, draw
any order, or bill of exchange, make an,
acceptance, assign any notes, bonds, drafts
or bills of exchange, mortgage, judgment
or decree, or shall make any false entry il
any book, report, or statement of the com
pany, with intent in either case to injure o
defraud the company, or any other com
pany, body polite or corporate, or any in
dividual person, or to deceive any officer o
the company, or any agent appointed to in
spect the affairs of any banking compan
| &c Sfofa eha1 ha NV of Fans