Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1877-09-14

its character. form or appearance, shall be
| .alc,Isted or intended to circulate as mon
ev. and every violation of this section, by
snv officer or member of banking compa-
nv shall be deemed and judged misde-
neanor. punished bv fine or impr,son-
ment. or both, in the discretion of the
court having cognizance thereof, as now
provided by law.
SIC. 13. Each banking company shall
| at all times have on hand, Of lawful mon
/ ey of the United States, an amount equal
| to at l. st twenty per centum of its depOS-
| its; and whenever the lawful monev of
any company shall fall below twenty per
/ cent. Of its deposits, such company shall
not make any new loan or discount, other
wise than by dlscOunting or purchasing
bills of exchange payable at sight, nor
make any dividends of profi,s, until the
required proportion of ils deposits, and Its
lawful money of the United States, shall
be restored; and for such purpose acI ual
| deposits with any solvent bank or banker,
in the cities of New York, Boston, Phlla-
delphia, and Baltimore, subject to be
drawn against at sight, and payabl IN
| lawful money of the United States, or mon
ev actually invested in bonds OF the Unit
| ed States, shall be deemed equivalent to
lawful money Of the United States.
| SEC. IA No banking company herein
authorized shall at any time be iudebi ed,
or in any way liable, to an amount exceed
ing the amount of the capital stock at such
time actually paid in and remaining IN
capital stock, undiminished by losses or
otherwish. except on the following &C
counts: first, on account of moneys depOS-
| tied with or collected by such company;
| second. 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 stock
holders on account of moneys paid in as
capital stock, and dividends thereon.
SEC. 10. No banking company shall,
during the time it shall continue It's opera
tions as bank, withdraw, or permit 10 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withdrawn, either in form of dividends.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 sus-
tanned by any banking company, equal to
or exceeding its undivided profits then on
hand, no dividend shall be made; and no
dividend shall ever be made by any bank
ing company, while it shall continue its
banking operations, to an amount greater
than its net profits then on hand, deduct
ing therefr0m its losses and bad and sus-
pended debts; and all debts due to bank
ing company on which interest is past due
and unpaid for a period of six months,
unless the same shall be well secured and
in process Of collection, shall be considerd
bad OF suspended debts within the mean
ing of this act.
SEC. 16. The directors of each banking
company shall, semi-annually, declare
dividend OF so much of the net profits of
the company as they shall judge expedient;
but such company shall, before the declar-
alton of a dividend, carry one-tenth part
of its net profit of the preceding halfyear
TO its surplus fund, until the same shall
amount to twenty per eentnm of its capi-
tai stock.
SEC H. Every banking company shall
make to the Auditor of State a report, ac-
cOrding to the form which may be preScrib-
ed by him, verified by the oath of the pres
ident or cashier of such company, which
report shall exhibit in detail, and under
appropriate heads such Us he shall require,
the resources and liabilities of the cOmpa-
nv before the commencement Of business
in the morning of the first Monday Of the
months OF January and July of each year,
and shall transmit the same to the Auditor
of State within ten days thereafter.
SEC. is. Every banking company de-
irving its powers and privileges from mis-
act may take. reserve, receive. and ch age
on any loan or discount made, or uIon 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 sU h
note, bill of exchange, or other evidence of
debt so discounted, and no more; provid-
Cd hoyunvor that infaracf nav ho raaai z-.1
or taken in advance, at the time of making
the loan or discount, according to me usu-
al rules of banking; but the purchase, sale,
or discount, at the current rate of discount
or premium, shall not be considered iak-
ing, receiving, or reServing of interest.
And the knowingly taking, receiving, re-
serving or charging rate of interest great
eT than aforesaid, shall be held and =
judged forfeiture of the interest which
the note, bill, or other evidence of de0t
carries with it, or which has been agreed
to be paid thereon. And in case a greai er
rate of interest has been paid, the person
or persons paving the same, or their legal
representatives, may recover back, in any
action of debt. the entire amount of inter
est thus paid from the company taking or
receiving the same.
SEC. 19. The total liabilities of any per-
son, company, corporation or firm, for
money borrowed, including in the liabili-
ties of the several members thereof to any
banking company herein authorized, shall
at no time exceed one-tenth par Of the
amount of the capital stock of such com
pany actually paid in; provided, that the
| discount of bona tde bills of exchange
drawn against actually existing values,
and the discount of commercial or business
paper actually owned by the person or per-
sons, corporation or firm negotiating the
same, shall not be considered money bor-
rowed.
SEC. 20. All transfers of notes. bonds.
bills of exchange, and other evidences of
debt, owing 20 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 other
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 application of its assets in the
manner described by law, or with the view
to the preference of one creditor to anoth-
er. shall be held utterly null and void.
SEC. 81. If the directors of any bank
ing company which shall have availed It
self of the privileges of this act, shall
knowingly yiolate,or knowingly permit any
of The officers. agents, or servants of such
company to violate any of the provisions
of this act. all the rights, privileges and
franchises of said company, derived from
this act, shall thereby be forfeited; such
violation, however, TO be determined and
adjudged by court of competent jurisdic-
ton, agreeably to the laws of this Safe,
and the practice of such court, before the
| corporation shall be declared dissolved:
and in case of such violation, every ,IireC-
tor who participated in or assented TO ihe
same shall be held liable, in his personal
and individual capacity, for all damages
which the company, its shareholders, or
any other person, body polite or corpor-
ate, shall have sustained in consequence of
such violation.
SEC. %: Every president, director.
cashier, teller, clerk, or agent of any bank
ing company, who shall embezzle, abstract
or wilfuIly misapply, any of the moneys,
funds, or credits of such company, or shall.
without pdthority from the directors. issue
or put forth any certificate of deposit.
| draw any order, or bill of exchange. mort
gage, judgment, or decree, or shall make
any false entry in any bo, k, report. or
statement of the company, with intent in
either case to injure or defraud the compa-
ny, or any other Company, body polite OF
| corporate, or any individual person. or to