The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1877-09-13
AN ACT
To Authorize Free Banking.

SECTION 1. Beitenacted 1y tie General Assens-
6ly of tie State of Ohio, That any number of
natural persons, not less than We, may engage
in the business of banking. with all the rights.
privileges and powers conferred by, and subject
co the restrictions of, this act
SEC. Persons assoCiating to form a bank
ing company shall. under their hands and seals,
make certificate which shall specify:
First-The name assumed by such company,
and by which it shall be known in its dealings;
operations shall be carried on. at which place
such ba nSing company shall keep an o1fice for
the tran sactIon oil business
Second The amount of the capital stock of
which the same is divided.
1ntrd,Ihe name and place of residence, and
the number of shares held by each member of
the company.
FourtA-The time when such company shall
have been formed.
Such certificate shall be acknowledged before
justice of the peace notary public, and
transmi tied to the secretary of state, who shall
record and carefully preserve the same in his
o,ice; ANA 4 copy thereof. duly certified shall
be by him returned to and recorded by the re-
corder of the county where such company is to
be established. in 4 book to be kept by him for
that purpose. which shall at all times during
office hours be kept open for inspection OF any
PEI son wishing to examine the same. Copies of
hcers, may be used as evidence i'm all courts and
places. for and against any such company, and
shall be conclusive evidence of the existence of
SEC. } The capital stock of each company
hereby authorized shall beat least twenty-five
thousand dollars, and may he increased, from
time to time as may be deemed eXpedieat.
SEC. 4. at least fifty per centum of the capi-
tai stock of every company shall be paid in be-
iorc il shall be authorized to commence busi-
ness, and the remainder OF the capital stock OF
such company shall be paid in installmcnts of
at least ten per ccntum each on the whole
amount of the capital, as frequently rs one in
,taliment ut the end of each succeeding month
mcnrc business; Provided, that the amount SO
paid in shalt be not less than twenty-five thous
SEC 6. Whenever any company herein au-
thorizcd shall furnish to the auditor. governor.
and secretary of state. salts isfactory evidence
that said company has complied w ith the pre-
ceding sections OF this act said auditor, govern
or. 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 i'll the Office of the sec
uuired to be recorded the certificate provided
Tor in the second section of this act.
act after having procured procured the Certificate res
Iuired in the filth section of this act, shall be-
and hereby is created body polite and corpo-
rate, with succession, until the repeal of this
act, and by its name shall have power to con-
tract, and to prosecute and defend suits and
persons; to loan money, buy, sell and discount
bills of exchange. notes. and all other written
prohibited; to receive deposits, buy and sell
gold and silver coin and bullion, collect and
pay over money, and transact all other business
properly apperiaininS TO banking, subject to
the provisions and restrictions OF this act; may
acquire. hold and convey such real estate may
he necessary to the convenient transaction OF
its business, and no more. but may, however,
acquire title to any real estate pledged to secure
any debt previously contracted, or purchased
un ~ execution order of sale to satisfy any
Judgment or decree in its favor. which shall
nave been conveyed to it in payment of any
previous debt, but shall not hold any real estate
50 acquired longer than is necessary to avoid
loss OF any part of the debt, interest and costs
uuired; but at any time before selling the same.
uoon being tendered>by the last preceding ewn-
or, his legal representative. such sum Us shall
be necessary to save such company from loss OF
any part of the debt, interest. taxes. costs, and
other necessary charges for the collection or
curity of 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. z. The capital stock of every company
shall be divided into shares OF one hundred dol
lars each. which shall be deemed personal D, on
erty, and shall only be assignable on the books
or the company. in such manner as its bylaws
shall prescribe; each bank shall have lien up
on 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 is indebted to the company
SEC No company shall take as security for
any loan, OF discount a lien upon, any part OF
its capital stock but the same security, both in
Kind and amount, shall be required OF share
holders of persons not shareholders; and no
banking company shall be the holder or pur-
chaser of any portion of the capital stock Of it
u any other Incorporated company, unless such
purchase shall be necessary to prevent loss up
on debt eviOusIy contracted in good faith
or security which at the time deemed ade-
quate to insure the payment of such debt. inde
pendent of any hen upon such stock; and stock
So purchased shall in no be held by the
company so purchasing tor longer period of
time than six months. If the same can be sold
for what the stock costs at par.
SEC 9. In all elections of directors and in
deciding all questions at the meetings of the
thereof to one vote. Stock holders may vote by
proxies dul, authorized in writing. but no OIL
cer or empoye OF the company shall act as
proxy,
SEC. 10. The affairs OF every company form
ed 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 may be determined by a
director SHALL during the whole term of his
services, be resident of this state. The direct
ors OF such banking company. collectively.
each director shall take an oath that he will, 50
the duty devOlves on him. dill gently and
and not knowingly violate. or willingly permii
TO be violated. any of the provisions OF this act
Of the stock, specify ing the amount. standing
in his name ON the books Of the company, anu
that the same is not hypothecated, or in amy
cd, or for any debt owing. which oath. subscrib-
cd by himself, and certified by the officer before
preserved in the of1cc OF the recorder of the
county in which the banking company is To-
Gated.
SEC. IL. The directors of any banking COM
pany first elected shall hold their places until
The first Monday IN January next thereafter.
and until their succeSSoys shall he elected and
qualified; all suhsequcnt elections shall be held
annually ON the first Monday OF january, at the
office of the bank, and the directors elected
shall hold their places for one year, and until
their SUCCESSORS are elected and qualified. But
thereby vacatc his place: Any vacancy in
the board shall be filled by appointment by the
remaining directors; the director SO appointed
shall hol hts place until the next annual elec-
ton; and il. for any cause, an election OF di-
rectors shall not be made at the time appointed.
the company shall not for that cause be disSOlv-
e,l, but an election may be held on any Subse-
quent day, thirty days hOtice thereof having
been given. IN a newspaper printed and in gem
eraI circulation in the county where the pa
ny is located.
SEC Il No banking company hereby author
lied shall at any time issue, or have i'll cireua-
tion any draft. bill of exchange. accept
ance, certificate OF deposit, any other evi-
deuce of debt. whica from its character, form
or appearance, shall be calculated intended
uiaic money; and every violation OF
ing company. shall be deemed and judged
misdeiaeanor. punished by line OF lmprisOn-
meat, or both, IN the discretion OF the court
having cosnizance thereof, as now provided by
SEC. 13. Each banking company shall at all
times have on hand. OF lawful money of The
United states. an amount equal to at least twen-
ty per centum of its deposits; and whenever
the lawful money of any company shall fall be-
low wenty per cent of its deposits, such com
pany shall not make any new loan or Discount,
otherwise than by dlscounting or purchasing
bills of exchange payable at sight, nor make
any dividend of Its profi5s, until the required
proportion OF its dep, sits and its lawful money
of the UnlteQ states. Snall DC restored, ana Tor
such purpose actual deposits with any solvent
bank or banker. in the cities of New York Bos-
ton Philadelphia. and Baltimore, subject to be
drawn against at sight. and payable in lawful
money of the U United States. or money actually
invested in bonds OF the United States. shall be
deemed equivalent to lawful money of the
United STATES
SEC. IL No banking company herein author
iZed shall ut any time he indebted, in any
way liable to an amount exceeding the amount
of the capita! stock at such time actually paid
IN and remaining as capital stock, 'undimin- |
ISL by losses Otherwise. except on the fol. |
iowin: e accounts: irst, on account of moneys |
deposited 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 stockholders account
OF moneys paid in as capital stock, and divi- |
dends thereon.
SEC Is. No banking company shall, during |
the time it shall continue its operations as 8 |
bank, Withdraw, or permit to be withdrawn, |
either in form oil dividends. loans to STOCKHOLM
ers for II longer period OF time than six months |
nr in any other manncr, any pOrtlOn of its can |