The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1877-09-13
PUBLISHED BY AUTHORITY.
An Act to Authorize Free Banking.


number of natural persons, not less than
hve, may engage in the business of banking,
with all the rights, privileges and powers
conferred by, and subject to the restrictions
of, this act.
SECTIoN2. Persons associating to form
banking company shall, under their hand,
and seals, make certificate which shall
specify:
First-The name assumed by such COM
pany, and by which it shall be known in its
dealings also the name of the place where
Its banking operations shall be carried on,
at which place such banking company shall
Keep an office for the transaction of business.
Second-The amount of the capital stock
OF said company, and the number of shares
into which the same is divided.
Third-The name and place of residence,
and the number Of shares held by each
member Of the company
Fourth-The time when such company
shall have been formed.
Such certificate shall be acknowledged be-
fore justice of the peace or notary public.
and transmitted to the Secretary of State,
who shall record and carefully preserve the
same in his Office; and copy thereof,
duly certified, shall be by. him returned to
and recorded by the recorder of the county
where such company is to be established, in
NNN1
which shall at all times during office hours
be kept open for inspection Of any 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 conclusive evidence
Of the existence of such banking company.
SECTION 5. The capital stock of each
company hereby authorized shall be at least
twenty-five thousand dollars, and may be in
creased, from time to time, as may be deemed
expedient.
SECTION 4. At least fifty per centum of
the capital stock of every company shall be
paid in before it shall be authorized to COM
mence business, and the remainder of the
capital stock of such company shall be paid
In installments 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;
provided, that the amount so paid in shall
be not less than twenty-five thousand
dollars.
SECTION 5. Whenever, any company
herein authorized 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 secre-
tary of state shall furnish to said company
a certificate of such fact, under their hand,
and under the great seal of the state, which
shall be recorded in the Office of the secre.
tary of state, in the same book in which is
required to be rec orded the certificate pro-
vided for in the second section of this act
SECTIoN6. 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 succession, until the re-
peal OF this act, and by its name shall have
power to contract, and to prosecute and de-
lend suits and actions of every description,
as fully as natural persons; to loan money,
buy, sell and discount bills of exchange,
notes, and all other written evidences of
debt, except such as may be herein pro-
hibited; to 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 require, hold and convey such
real estate as may be necessary to the con-
venient transaction of its business, and no
more, but may, however, acquire title to
any real estate pledged to secure any debt
previously contracted, or purchase on an
execution or order of sale to satisfy any
judgment or decree in its favor, or which
shall have been conveyed to it in payment
of any previous debt, but shall not hold any
real estate so acquired longer than is neces-
sary to avoid loss of any part of the debt,
interests, and costs for the collection or
security of which it was acquired; but at
any time before selling the same, upon being
rendered by the last preceding 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,
cost, and other necessary charges for the
collection or security of which such real
estate was acquired, such company shall re-
lease to such owner, his legal representative
or assigns, all its rights, title and interest
therein
SECTION Z. The capital stock of every
company shall be divided into shares of one
hundred dollars each, which shall be deemed
personal property, 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, and no stock
shall be transferred without the consent of
a majority of the directors while the holder
thereof is indebted to the company.
SECTION s. No company shall take as
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 per-
sons not shareholders; and no banking
company shall be the holder or purchaser Of
any portion of the capital stock of it or
any other incorporated company, unless
such purchase shall be necessary to pre-
vent loss upon debt previously 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 SO purchased shall in
no case be held by the company so purchas-
ing for longer period of time than six
months, if the same can be sold for what the
stock costs at par.
SECTIONS 9. In all elections of directors,
and in deciding all questions at the meetings
of the stockholders, each share shall entitle
the owner thereof to one vote Stockholders
may vote by proxies duly authorized in
writing, but no officer or employee of the
company shall actas proxy.
SECTION 10. The affairs of every COM
pany, 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 NAV
be determined by majority in interest Of
the stockholders. Every director shall
during the whole term of his services, be a
resident 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
SO far as the duty devolves on him, dill
gently and honestly administer the affair.
OF the company, and not knowingly violate
or willingly permit to be violated, any o.
the provisions of this act; that he is the
bona fde owner, in his own right, of the
stock, specifying the amount, standing il
his name on the books of the company, ant
that the same is not hypothecated, or il
any [way] pledged, as security for any loar
obtained, or for any debt owing, whicl
oath, subscribed by himself, and certified
by the officer before whom it was taken
shall be filed and carefully preserved in th
Office of the recorder of the county in whicl
the banking company is located.
SECTION IL. The directors of any bank
ing company first elected shall hold thei
places until the first Monday in Januar,
next thereafter, and until their successor
shall be elected and qualified; all subsequen
elections shall be held annually on the frs
Monday of January, at the office of the bank
and the directors so elected shall hold thei
places for one year, and until their success
sors are elected and qualified. But any di
rector removing from the State shall thereb,
vacate his place. Any vacancy in the boart
shall be filed by appointment by the re
naming directors; the director so appointed
shall hold his place until the next annua
election; and if, for any cause, an election
of directors shall not be made at the tint
appointed, the company shall not for tha