The state chronicle. [volume] (Raleigh, N.C.) 1891-1893, 1893-01-06
A Bill to be Entitled SAN Act TO Au.
thorfze State Banks TO Issue
Circulating Notes.

A Bill to be Entitled San Act 10 An.
thorize State hanks TO Issue
Circulating Notes"
Introduced by Senator Sh. rrill:
The General assembly Of North Carolina
do enact.
Section 1. That any bank or banking
ASSOCIATION which has been or may here
after be chartered by the general assem-
bly, OF this state, and doing business
within this state, NAV issue circulating |
notes, payable on demand In Lawful |
money of the Uuit,d States, under The |
limitations and restrictions contained in |
this act, to an amount not exceeding the
paid up cash capital of such bank or
banking association.
Sec 2. hat to secure the payment of
such circulating notes, bonds of the
State of North Carolina known as the 4
per cent consoid 4ted debt or OF the q
per cent construction" bonds, shall be
deposited with the state treasurer in
amount equal t. the circulating notes TO
be issued 10y any such bank or banking
association.
Sec. 3 The bonds deposited with
the state treasurer by any bsnk
or banking association for the securl
ty of its circulating notes shall br
held exclusively for that purp ,se until
such notes are redeemed, provided. that
any association may surrender for can
collation. any 'rtion of its cir, ulsting
notes in multiple of one thousand dol
lars and withdraw ratsbly of their de
posted collateras.
Sec. 4 That upon a deposit of bonds
as prescribed in section of this act. the
association making such deposit thall
be entitled to receive from the state
treasurer circulating notes of differen,
denominations. in blank. registered ard
countersigued as hereinafter provided,
equal in amount to the par value of the
state bonds so deposited
SEC. 5 After any assoc alton has re
ceived circulating notes under this act
and has caused lis promise to pay such
notes on demand to be signed
oy its president or vice president
and cashier in such manner as
to make them obligatory pr, misory
| payable on demand at its place of
business, such association may issue and
| circulate the same as money.
Sc No bank, banking association
Other notes to circulate as IN ney than
such az are authorized by this act.
Sec. Z That the circulating notes pro
vided for in this act sh,ll be furnished
10y the state treasurer, under the direc
tion Of the governor, who will cause
plates and dies to be engraved in the best
manner to guard against counterfeiting
aud fraudulent alterations and shall have
printed therefrom and numbered, such
quautity of circulating notes, In blank,
Of the denominations of one dollar. five
dollars, ten dollars, twenty dollars and
fifty dollars, as may be required to sup
ply the associations entitled to receive
the same. Such notes shall express upon
their face tn 1t they are secuted by state
bonds, deposited with the state treasurer
by the written or engraved signature of
the treasurer. and by the imprint Of the
seal Of his office; aud shall also express
upon their face the promise OF the asso
citation receiving the same to pay on de
mand. attested 10y the president or vice
president and cashier: and shall beal
such devices and such other statements,
and shall be in such form a. the sts:.
treasurer, with the approval of the gov
|
Sec s The plates and dies to be pro
cured by the state treasurer n the print
Ing of such circulating notes shall remaII
under his control and direction, ,nd b,
expenses necessarily incurred ine ex cutting
his act shall be paid out of the proceeoi
If the taxes or dulies asst ssed and col
lected on the circulating notes herein au
thorized
Sec Not more than one tenth par
of the notes furnished 10 any association
sh4ll be of less denomination than tiv,
dollars
Sec 10. That any association issuing
circulating notes under the provisions o
this act shall promptly pay the same
upon demand. during the usu Al busines
h urs at its banking house, and for thi
purpose shall keep its doors open from
10 o'clock In the forenoon until 3 o'clocl
IN he afternoon, except upon Sunday
and legal holidays, and upon failure q
refusal to pay when demanded, tn
holder of such note or notes may hav
the same protested and presented t, th
I state treasurer for redemption. in wh C
% event, after giving notice by mail to sue
! defaulting association, the said treasure
il may advertise in q daily newspaper
the city Of r ,leigh for ten days that b
will sell by public auction so much Of ii
5 c,llateral in his hands rs is applicable |
i the aynent OF such di,honorrd note
s notes, and out of the proceeds of sue
d sale red EN- the same.
Sec IL To further secure the circI
) latng notes aushorlz by this act II
: stockholders in any association lssuin
;, the same shall be liable for their pa
h ment to an amount equal to his or b.
/ individual sto k in such association, an
a it shall be the duty of the cashier
-, president of every such association
. furnish the state treasurer, semi annuall
on the first day OF January and july,
= verified list Of the st 'ckholders with Il
T. residence and amount Of stock then be
Dy each.
le Sec II. That any association issuil
81 circulating notes shall. upon receivil
.m their currency, pay to the state treasur
III 1 tax Of one haf of one per cent up
the amount of such notes delivered, al
I'd thereafter. semi annually, on the first
ty April and o O:tober, a like tax OF one b
W of one per cent upon the amount OF no
'e outstanding shall be paid to the sti
IN treasurer.
its SEC l3. That it shall be unlawful
he muril.te, write or print upon or 9th
ell wise distigure any note issued under ,
w thority of this act. Every person
n - # nding shall be liable to p, nalty
'or 8 90, recoverable one half to the
81 former.
las Sec. IA That neither the state tire
Ate urer nor any employee in his Office II
IN own stock or other interest in any as
~. citation issuing circulating notes un'
at- this act
nd Sec Is This act shall be In force fr
las its ratification.
ees