The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1877-09-14
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AN ACT,
To AuthOriZe Free Banking,

\
To Authorize Free Banking.
SECTION /. Be Il enacted By The General assembly
! Of The STATE Of Ohio, That any number OF natural
persons not less than FIVE may engage in the bus
iness OF banking. with all the rights. privileges
and powers conferred by, and suSject TO the res
lrictioiIs of, this act.
SEC. > Persons assOciating to form a banking
company shall, under their hands and seals, make
q certifirate which shall specify:
FHSt-The name assumed by such company.
and by which it shall be known in its dealings;
also the name of the place where its banking Op-
erations shall be carried on, at which place such
banking company shall keep an office for the
transaction OF business.
SeeOHd-Thc amount oi the capital stock Of said
company. and the number OF shares into which
tie same is divided.
Thid-The name and place OF residence, and
the numberOi shares held by each member Of the
company.
FOuth-The time when such company shall
have been formed.
Such certificate shall be acknowledged before Il
justice of the peace or notary public. and trans
mitted to the secretary Oi state who shall record
and carefully preserve the same in his office; and
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 established,
in a book to be kept by him for that purpose,
which shall at all times during Office hours he
kept open for inspection ofany 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 conclu-
sive evidence OF the existence of such banking
company.
SIC. ). The capital stock of each company
hereby authorized shall be at least twenty-five
thousand dollars, and may be increased, from
time TO time, as may be deemed expedient.
SEC. /. At least fifty per ccntum of the capital
stock Of every company shall be paid in before it
shall be authorized 10 commence business, and
the remainder Of the capital stock OF such COM
pany shall be paid in instalmcntS OF at least ten
per centum each on the whole amount OF the
capital, as frequently as one installment at the
end of each succeeding month from the time it
shall be authorized To commence business: Pro-
vided, that the amount paid in shall De not less
than twenty-five thousand dollars.
SIC. Whenever any company herein author
lied shall furnish to the auditor, governor, and
secretary OF state satisfactory evidence that said
company has complied with the preceding sec
tons OF this act said auditor, governor, and sec
rotary of state shall furnish To said company a
certificate of such fact, under their hand and I'M
der the great seal OF the state which shall he re-
corded in the Office OF the secretary of state in the
same book in which is required Ia be recorded
the certificate provided for in the second section
OF this act.
SEC. 6. Every company formed under this act,
after having procured the certificate required in
the fifth section Of this act shall be and hereby is
created body polite and corporate, with sue
II III l,x-i ifS
name shall have power 10 contract and to prose
cute and defend suits and actions of every deS-
cription, 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; 10 receive
deposits, buy and sell gold and silver coin and
OuillOh collect and pay over money, and trans
act all other business appertaing to banking, sub
Ject 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 It's business, and no more, but may, however,
acquire title to any real estate pledged TO secure
any debt previously contracted, or purchased on
an execution or order of sale to satisfy any judg
ment or decree in its favor, or which shall have
been conveyed 10 it in payment OF any preyi-
Gus debt, but shall not hold any real estate so
quired longer than is necessary to avoid IL loss of
collection or security of which it was acquired;
but at any time before selling the same, upon be-
ing rendered by the last preceding owner, or his
legal representative, such sum as shall be neces-
s;iry TO save such company from loss Of any part
OF the debt, interest taxes costs and other neceS
sary charges for the collection security (which
such real estate was acquired, such company shall
release TO such owner, his legal representative or
assigns all its rights title and interest therein
SEC. :. The capital stock of every company
shall be divided into shares of one hundred dol
lars each. which shall be deemed personal prop
erty, and shall only be assignable on the books of
the company, i'll such manner a. its bylaws shall
prescribe; each bank shall have lien upon all
the stock owned by its debtors and no stock shall
be transferred without the consent of majority OF
the directors while the holder thereof i indebted
to the company.
SEC, s. No company shall take a. security fOr
any loan, or discount a lien upon 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; and no banking
company shall be the holder or purchaser of any
portion of the capital stock Of il or any other in
corpOrated company, unless such purchase shall
be necessary 10 prevent loss upon a debt previ-
Ously 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 80 purchased shall in
no case be held by the company so purchasing for
a longer period of time than six months, if the
same can be sold for what the stock costs al par.
Sc. .. In all elections OF directors, and in de-
Gliding all questions at the meetings of the stock
holders each share shall entitle the owner there
OF 10 one vote. Stockholders may vote by proxies
duly authorized in writing, but no officer or en-
ploye of the company shall act al proxy.
Sc 10. The affair, oi every company, formed
and organized to carry on the business OF bank-
ing under the provisions OF this act, shall be man
aged by not less than three nor more than five
directors, a may be determined by majority in
interest Of the stockholders. Every director shall,
during the whole term OF his services, be a resi-
dent of this state. The directors OF each banking
company, collectively, SHALL own at least one
tenth of the capital stock: each director shall take
an oath that he will, 80 far as the duty devolves
on him. diligently and honestly administer the
affairs of the company, and not knowingly vio-
late OF willingly permit to be violated any OF the
provisions OF this act: that he is the JoHdfde
owner in his own right, of the stock, specifying
the amount, standing in his name on the books of
the company. and that the same Is not hypothe-
Gated, or in any way 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 care
fully preserved in the Office OF the recorder OF the
county in which the banking company Is located
SIC. II. The directors OF any banking company
first elected shall hold their Offices until the first
Monday in January next thereafter, and until
their successor shall be elected and qualified: ali
subsequent elections shall be held annually on
the first Monday OF January, al the Office of the
bank and the directors 20 elected shall hold their
places for one year, and until their successors are
elected and qualified. But any director removing
from the state shall thereby vacate his place. Any
vacancy in the board shall be filled by appoint
ment by the remaining directors; the director 80
appointed shall hold his place until the next an
nual election; and II, for any cause, an election
of directors shall not be made al the time sp-
pointed, the company shall not for that cause be
Dissolved, but an election may be held on any sub
sequent day, thirty days notice thereof having
been given, in a newspaper printed and IN gen.
eral circulation in the country where the COM
pany is located.
SEC. L. No banking company hereby authoriZ-
ed shall at any time ISSUE or have in circulation
any note draft. bill of exchange, acceptance, Ger
tifeate of deposit. or any other evidence OF debt
which, from its character, form or appearance,
shall be calculated or intended 10 circulate as
money; and every violation Of this section, by
any officer or member OF banking company shall
be deemed and judged a misdemeanOr, punished
by fine or Imprisonment or both, in the discretion
OF the court having eognizanee thereof, g. row