The Highland weekly news. [volume] (Hillsborough [Hillsboro], Highland County, Ohio) 1853-1886, 1877-09-13
An Act to Authorize Free
Banking.

stglctions Of, this acf. '--'' ~ 'iiS n
SEC. 2. Persons ass0Ciating to form baDkiD
Co-upaly shall1 under their hands and seals. max
Sefuncale which shall specify
EtTSt-Ihe name assumed bv such comnan,
ana oy which it shall be known in its deaiiDgs
atso the name of the place where its banking oDer
Sllons shall be carried on, at which place sue
DalAlng company shall keep an Office for the trans
SeeoHd-The amount Of the capital stock of sal
company and the number Of shares into which tn
Third-The name and place Of residence and Tn
NUMBER number OF shares held by each member OF th
Foqrt4-The s-he time when such company shal
such certificate shall be Acknowledged before
Jusllee OF the peace or notary public, and trans
Inl5teu 20 the Secretary Of State, who shall record
huu carefully preserve the same I'm his Office and
copy thereof, duly certified, shall be by him re-
turned 10 and recorded by the recorder of IN,
county where such company is to be established
To- a pOok to be kept by him for that purpose
Wnlcn shall az an times during office hours be KEEP
I open Tor inspection Of any person wishing 10 eU
I anime the same. Copies Of said record, duly Ger
lnsl oy either OF those officers, may be used az
evidence IN az courts and places, for and aglins
I any such company, and shall be conclusive euf
/ dence OF the existence Of such banking company
SEC. 3. The capital stock of each company here
/ by authorized shall be az least twenty-five thous-
I and dollars, and may be increased, from time to
| time as may be deemed eEpedient
] SIC a. AT least fifty per Centum of the capital
| STOCK OF every company shall be paid in before #
/ shall be authorized to commence business and the
| remainder Of the capital stock Of such company
shall be paid in instalments Of at least ten uer
centum each on the whole amount Of the capital.
as frequently as one iustalment at the end of each
succeeding nlOnln from the time lt shall be au-
| thOrlzed TO commence business; Provided, that
the amount so paid In shall be not less than ten-
| ty-ive thousand dollars.
SIC: D.. Whenever any company herein author
ized shall furnish to the Auditor, Governor, and
secretary OF State, satisfactory evidence that said
company has complied with the preceding sections
OF this act, said Auditor, Governor, and Secretary
OF state shall furnish to said company certificate
OF such fact, under their hand and under the great
seal OF the State, which shall be recorded IN the
once OF the Secretary Of State, in the same book
IN which is required to be recorded the certificate
provided for in the second section Of this act
SIC. @. Every company formed under this act
after having procured the certificate required I'm
the NTH section of this act, shall be and hereby is
created body polite and corporate, with success
sion, until the repeal of this act and by its name
shall have power to contract and to prosecute and
defend suits and actions of every description as
luliy as natural persons to loan money, buy, sell
ana discount bills OF exchange, notes, and all 9TH
er written evidences of debt, except such as NAV
be herein prohibited; 20 receive deposits buy and
sell gold and silver coin and bullion, collect and
pay over money, and transact all other business
properly appertaining TO banking. subject to the
provisions and restrictions Of this act; may acquire
hold and convey such real estate as may be neCes-
sary 10 the convenient transaction Of its business,
any real estate pledged to secure any debt pre-
viOusly contracted, or purchased on an execution
or order of sale to satisfy any judgment or decree
In its favor, which shall have been conveyed to
lt IN payment of any previous debt, but shall not
mold any real estate 30 acquired longer than is
necessary to avoid loss Of any part Of the debt
interest, and costs for the collection or security Of
winch lt was acquired; but at any time before sell
ing the same, upon being rendered by the last pre-
ceding owner, or his legal representative, such
sum as shall be necessary to save such company
from loss Of any part of the debt, interest," taxes
costs. and other necessary charges for the cOueC-
tinu 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.
SIC. Z. The capital stock of every company
shall be divided into shares Of one hundred dol
lars each, which shall be deemed personal proper
tyi and shall only be assignable on the books of
the company, in such manner as its bylaws shall
prescribe; each bank shall have lien upon all the
stock owned by its debtors, aud no stock shall be
transferred without the consent Of q majority of
the directors while the holder thereof is indebted
to the company
SEC. S. No company shall take as security for
any loan, OF discount a lien upon any part OF 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 com
pany shall be the holder or purchaser of any pOr-
ton OF the capital stock Of it or any other ncOrpO
rated company, unless such purchase shall be nee
essary 70 prevent loss upon debt previously con-
tracted in good faith or security which at the time
was deomed adequate O. insure payment of such
debt independent OF any lien upon such stock;
and stock so purchased shall in no case be held
by hecompany so purchasing for longer period
of time than six months, if the same can be sold
for what the stock cost at par.
SEC. 9. In all elections Of directors, and in de
Gliding all questions at the meetings Of the stock
holders, each share shall eutite the owner thereof
10 one vote. Stockholders may vote by proxies |
duly authorized in writing. but no officer or en-
lioye Of the company shall act as proxy.
SEC. 10. Ihp affairs every cOmuauV- formed |
and organized TO carry on the business Of banking
lnder the provisions of this act, shall be managed
tors as may be determined by a malOrity In in
.erest of the stockholders. Every director shall,
turing the whole term Of his services, be resi-
lent Of this Stale. The directors Of each banking
company, collectively, shall own at least Oneteuth
IF the capital stock; each director shall take an
oath that he viii, so far as the duty devOlves on
lim, diligently and honestly administer the at-
airs Of the company, and not knowingly violate,
ir willingly permit TO be violated any Of the pro-
-isOus Of this act; that he is the JgnTfde owner,
n his own right, of the stock, specifying the
mount, standing in his name on the books OF me
Ompauy and that the same is not hvpOtheCated,
" I'm any ruav1 pledged, as security for any loan
obtained, or for any debt owing, which oath, sub
cribed by himself, and certified by the officer be-
ore whom it was taken. shall be fled and care
% lv preserved in the Office Of the recorder of the
Ouuty in which the banking company is located.
SEC. n. The directors Of any banking company
rst elected shall hold their places until the first
1Onday I'm January next thereafter and until their
uccessOrs shall be elected aud qualified; all subse-
ucut elections shall be held annually on the first
IOnday Of January, at the Office Of the bank, and
he directors so elected shall hold their places for
ne year, and until their Successors are elected
nd qualified. But any director moving from the
tate shall thereby vacate his place. ANY vacancy
d the board shall be filed by appointment by the
emaiuing directors; the director 80 appointed
hallhOd his place until the next annual election;
nd If, for any cause an election of directors shall
he
hall not for that cause be dissolved, but an cleo
ion may be held on any subsequent day, thirty
lays notice thereof having been given, in news
aper printed and in general circulation in the
0uuty where the company is located
SEC. y. No banking company hereby author
zed shall at any time ISSUE or have in circulation,
ny note, draft, bill Of exchange acceptance, GER
dcafe Of deposit, or any other evidence Of debt
-hiCh. from its character, form or appearance,
hall be calculated or intended 70 circulate as
lOuey: and every violation Of this section, by any
ficer or member of banking company, shall be {
eemed and judged q misdemeau0r, punished by
ne or imprisonment, or both, i'm the discretion Of
he court having COguizance thereof, as now pro
.ded by law.
SEC. 10. Each banking company shall at all
mes have on hand, of lawful money Of the United
tates, an amount equal to at least twenty per
sntum of its deposits; and whenever the lawful
lOnCy of any company shall fall below twenty per
snt. of its deposits, such company shall not
iaSe any new loan OF discount, otherwise than by
isCOunting or purchasing bills Of exchange paya-
le ut sight, nor make any dividend Of its profits
ntil the required proportion Of its deposits and
S lawful money Of the United States, shall be re-
.Ored; and for such purposes actual deposits with
ny solvent bank or banker in the cities OF New
Ork, Boston, Philadelphia, and Baltimore, sub
,Ct to be drawn against at sight, and payable IN
,wful money OfthG United States, or money ac-
lally invested in bonds of tho United States, shall
e deemed equivalent to lawful money OF the
'nitcd States.
SEC. "A. No banking company herein authorized
n u N ha If= |
bic, TO an amount exceeding the amount Of the
lpital stock at such time actually paid i'm and re-
naming as capital stock, undimiuished by losses
T otherwise, except on the following accounts.
rst, on account of moneys deposited with or col
,cted by such company; second, on account OF
ills of exchange or drafts drawn against money
ctuGly paid OF deposit TO the credit nt or due 20
uCh company; third, liabilities of its stockholders
n account Of moneys paid in as capital stock, and
ividGnds thereon.
SEC. IS. No banking company shall, during the
inc it shall continue its operations as a bank,
-ithdraw, or permit to be Withdrawn, either in
1rm of dividends, loans to stockholders for a
lnger period of time than SIX months, or in any
ther manner any portion of its capital stock; and
losses shall have been at any time sustained by
ny banking company, equal to or exceeding its
ndividCd profits then on hand, no dividend shall
e made. and no dividend shall ever be made by
ny banking company, while L shall continue its
anking operations, to an amount greater than It's
ct profits hen on hand, deduCtlng therefrOm It's
lsses and bad and suspended debts; and all debts
ne to a banking company on which interest is
asst due and unpaid for a period Of six months,
Mess the same shall be well secured and in pro-
sss of collection, shall be considered bad or sus-
ended debts within the meaning Of this act.
SEC I6. The directors Of each banking company
laIr. semf-anuually. declare dividend of so much
the net profits of the company as they shall
Idge eNpedient; but such company shall, before
be declaration of dividend, carry One-Ienth part
its net profit of the preceding half year 70 its
.