Daily globe., 1881-03-19
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cral Statutes of eighteen hundred and sew
enty-eight relating to banks and banking,
and to add to said chapter sections forty
seven, forty-eight and fortv-nine.
Be it enacted by the Legislature of the State
of Minnesota:
Section /. That section ten of chapter
thirty-three of the general statutes Of eighteen
hundred and seyenty-eight, be, and the same
is hereby amended, so as to read as follows:
Section 10. Any association of persons not
less than three in number, may establish Of
fees of discount, deposit and circulation !,
and become incorporated upon the terms and
conditions and subject to the liabilities pre-
scribed in this chapter; but the aggregate o.
the capital stock of such association shall
not be less than twenty-five thousand dollars
and no such association shall be organized in
any town containing less than two hundred
inhabitants. The minimum amount OF cap
ital stock named in this section shall be paid in
in cash before any association shall be auther-
lied to commence business; and such pay
ment shall be certified to the State Auditor
under oath by the president or cashier of the
association.
Sec. g. That section eleven OF chapter
thirty-three of the general statutes of
eighteen hundred and seventy-eight is hereby
amended, so as to read as follows:
Section II. The persons uniting to form
such an association shall, under their hands
and seals, make an organization certificate,
which shall specifically state: t'
First-The name assumed to distinguish the
bank and to be used in all its dealings which
name shall not be that of any other bank in
this State.
Second-The place where the business of
discount and deposit is to be carried on.
Third-The amount of capital stock and the
number Of shares into which the same is to
be divided.
Fourth-The names and places OF residence
of the shareholders and the number OF
shares held by each of them.
Fifth-The period at which said bank shall
commence and terminate.
The certificate Of organization shall be ac-
knowledged before the clerk of some court Of
record or notary public, and authenticated by
the seal of such court or notary and shall be
recorded in the office of the register OF deeds
of the county where such bank may be estah-
lished, and such certificate thus authenticated
shall be transmitted to the State Auditor, who
shall carefully preserve the same on file in his
office Upon duly making and fling the Or
ganization certificate, the association shall be-
come, as from the date of execution OF the
same, body corporate, and as such and in
the name designated in such certificate, it
shall have power to make contracts, to sue
and be sued, and shall have all other powers,
privileges and immunities incident to corpor
ations, and applicable to the ends of such es-
adjustments, subject to the restrictions and
provisions of this chapter. Whenever it an
pears to the State Auditor that any assOcia-
tion is lawfully entitled to commence the bus
mess of banking, he shallsgive TO such as
sociation certificate, under his hand and Of
ficial seal, that such association has complied
with all the provisions required to be COM
piled with before commencing the business of
banking and that such association is author
lied to commence such business, which cer-
tifcate shall be prin1a .facic evidence in all
the courts of the State that such association
is duly and legally organized as a corporation.
But the State Auditor may withhold from any
association his certificate authorizing the
commencement of business whenever he has
reason to suppose that the shareholders have
formed the same for any other than tie legit-
innate objects contemplated by this act No
association shall transact any business except
such as is incidental and necessarily preliIn-
mary to its organization until 1t has been all-
thorized by the State Auditor to commence
the business of banking. The association
shall cause the organization certificate and the
official authorization of the State Auditor IS
sued under this section, to be published in
some newspaper partly or wholly. printed Ill
the city or county where the association is To-
Gated, for at least four successive weeks next
after the issuing thereof; or, ii no newspaper
is published in such city or county then III
some newspaper published at the capital of
the State.
Sec. 5. That section eighteen, of chapter
thirty-three, of the general statutes of
eighteen hundred and seventy-eight is hereby
amended, so as to read as follows:
Section Is. Any association organized un-
der the provisions of this chapter, may, by its
articles of association, provide for an increase
of its capital from time to time, as may be
deemed expedient, subject to the limitations
of this chapter. But no increase of capital
shall be valid until the whole amount of the
increase proposed is paid in in cash, and such
payment certified under oath by the president
or cashier of such association to the State
Auditor, who shall give his certificate that
the provisions of this section have been COM
piled with and specifying therein the amount
of such increase of capital stock, with his
approval thereof, and that it has been duly
pa :! in as part Of the capital of such as
sociation. Any association formed under this
chapter may by the vote of shareholders own
ing two-thirds of its capital stock. reduce its
capital to any sum not below the amount
required by this chapter to authorize the for
nation of associations; but no such reduc-
tiOn shall be made until the amount of the
proposed reduction has been reported to the
State Auditor and his approval thereof in
writing obtained, and no such reduction shall
be construed as affecting The liability of
shareholders for any debts of the association
incurred prior to such reduction
Section 47. The total laBflities to any as
sociation of any person, or OF any company,
corporation or firm, for money borrowed, in
cluding, in the liabilities of company o.
firm, the liabilities of the several members
thereof, shall at no time exceed fifteen per
cent. OF the aggregate amount Of the capital
stock of such association actually paid in,
and of the permanent surplus fund of such
association. But the discount of bills of ex-
change drawn in good faith against actually
existing values, and the discount of CONNER
cial or BUSINESS paper actually owned by the
person negotiating the same, shall not be con-
sidercd as money borrowed.
Section 4S. No association shall make ally
loan or discount on the security of the shares
of its own capital stock, nor be the purchaser
or holder of any such shares unless such Sc
curity or purchase shall be necessary to pre-
vent loss upon debt previously contracted
in good faith; and stock so purchased or ac-