The times. [volume] (Richmond, Va.) 1890-1903, 1893-12-12
BANKING ASSOCIATIONS.
A Bill 10 PROTIDE FOR STATE
BANKs OF CIRCULATION.
To re Established in Cities. Towns. and
yiilSges-To Issue Circulating Notes on
40 Per Cent. OF Their Deposits.

Banks OF circulation. Following are the
important conditions Of the bin:
That associations for carrying on the
business Of banking under this title, may
be formed by any number Of per
sons. not less in any case than five. A
state Banking Association may purchase,
hold, convey real estate for the following
purposes and for no other. First. such as
/ shall be necessary for its immediate ac-
I commodatiOn IN the transaction OF its BUSH
ness. Second, such as shall be mortgaged 20
u IN good faith by way OF security for
debts. Third, such as shall be conveyed
% IL in satisfaction OF debts contracted in
the course Of its dealings. Fourth, such
as il shall purchase al sales under judg-
ments, DEGREES, mortgages. or deeds OF
trust held by the association. or shall pur-
chase TO secure debts due IT,
But no such association shall hold the
possession of any real estate under mort
cages or deeds OF trust, or the titles under
possession of any real estate purchased
90 secure any debts due 60 lt for q longer
period than five years and no such as
ISOLATION shall loan on any real estate
more than one-fourth Of fits reserved
values, nor FOR a longer period than nine
~ days
Capital stock In Towns.
No association shall be organized under
this act IN any village or town with a
less capital than $1,000 nor in any city
with "A less capital than $1,000.
Every person becoming a shareholder by
such transfer. shall. in proportion to his
shares, succeed 10 all the rights and
liabilities OF the prior holder of such
shares; and 10 changes shall be made
I'm the articles Of association by which
the rights, remedies or security Of the
existing creditors of the association shall
be impaired.
AT least fifty per centum Of the capital
stock Of every association shall be paid
i'm before II shall be authorized 10 COM
mence business. and the remainder OF
the capital stock Of such association
shall be paid in instalmcnts OF at least
ten per centum each. ON the whole amount
OF the capital as frequently as one at
the end of each succeeding month from
the time 10 shall be authorized by the
Secretary of the Commonwealth, 10 com
mence business, and the payment of
each instalment shall be certified 90 the
Secretary of the Commonwealth, under
oath, by the president or cashier of the
association, cancelled and deducted from
the capital stock Of the association. III
any such cancellation and reduction shall
reduce the capital of the association
below the minimum of capital required by
law. the capital stock shall. within thirty
DAYS from the date of such caucella-
ton. be increased To- the required amount,
i'm default Of which receiver may be
appointed. as provided by section thirty
five. of this act TO close up the business
of the association.
Provide for Increase.
The association may provide for an
increase Of its capital from time 10 time.
as may be deemed eNpedlont subject
20 the limitation
Tvo-thirds of the stockholders may
reduce the capital stock 10 the minimum
required by the act but not less than
amount required for the outstanding cir
cuaton
Each shareholder shall be entitled to
one vote.
Five directors are required to hold Office
for one year.
Virginia, and own at least ten shares or
stock
Section u gives the cath Of office
Of directors. and directs that the stock
of directors is not 20 Doe Hypothetical or
I'm any way pledged for loan or debt
All vacancies among the directors must
De filed by the remaining directors.
Section indicates how delayed
elections may DE held
Choose the President.
The president shall be chosen by the
directors from one of their number.
The shareholders of every STATE bank
ing association shall be held individually
responsible. equally and ratabiy and not !
one for another for an contracts. debts
and engagements of such association To |
the extent Of the amount of their stock |
therein. at the par value thereof in adj
dtion to the amount invested In such |
Executors. ETC.. shall not be personally |
liable as stockholders, but the estate |
shall be.
u. Every association. after having !
complied with the provisions or this act !
preliminary 20 the commencement or me |
banIting business. and before IT shall !
a., authorized TO commence banking bust |
ness under the act shall transfer ana |
deliver Ia the Treasurer Of Virginia any |
virginia bonds issued under the act APP |
nro,,ed TO the amount OF the capital |
etocl- OF said association. Such bonds |
shall be received by the treasurer OF /
Virginia upon deposit. and shaH De 10y |
him Kent I'm HIS office until they shaH
otherwise be disposed OF i'm pursuance
Of the provisions OF this act.
To Increase the Deposits.
% The deposit Of bonds made by each
oeeociation shall be increased as its capt.
tal stock may be reduced, and any asso-
citation that may desire 10 reduce us
auital stock or TO close up its business
and dissolve its organization may take
nm its bonds upon returning 70 tne
secretary OF the Commonwealth us CIR
crlatinr notes issued on the faith Of
said bonds ,..o..,or.
Section 2 Of the bill gives directions
for making transfers of Virginia pohuS'
"a inc bonds transferred to and deposit
N with the Treasurer Of Virginia tof the
security OF its circulating notes shaH De
held exclusively for that purpose UNI,
such notes are redeemed or taken lh anu
,ancelled and delivered 70 the treasurer
II virginia. who shall cause the same 10
No daetroved in the presence of the Cover
nor and Attorney or virginia
The Treasurer of Virginia shall give 10
INV such association power OF attorney
70 receive ana appropriate TO It's own use
he interest on the bonds which II mas
.o transferred 20 the treasurer, but such
,over OF attorney shall become imperative
whenever each association falls TO redeem
ts circulating notes.
9s Whenever certificate IS trans
1itted 10 the Secretary Of the Common
wealth. certifying that the whole amount
4 capital stock has been paid IN. and that
rirginia bonds. Issued under the act APP
,rovad have been deposited with the
treasurer OF Virginia, equal 10 the amount
4 sad capital stock. the Secretary OF the
shall examine into the
onditior OF such association. ascertain
epecially the amount Of money paid In
m account Of is capital. the name and |