The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-05-01
Governor Signs Two Of the
Five Measures introduced
By Senator Avis
TO PROTECT DEPOsITORS
BY THEIR PROVISIONS THE
CHANCERY COURT rs PERMIT
TED TO TAKE ACTION AGAINST
UNSAFE INSTITUTIONS
Especial tc "The Jersey city News,

Stokes signed two important measures
last week. They were Senate bills Nos.
2s5 and 2s7, two of the FIVE Avis bank
ing bills.
Senate No. 2s5 amends the bank act,
revision of 1899. in regard to, the metho6
Of procedure in the case of insolvent or
unsafe banks. In case of such banks it
provides a remedy in the court of chan
Gerry by injunction and the appointment
Of a receiver.
Il provides that whenever any bank
shall become insolvent, the attorney gen
eral, or any creditor or stockholder, may.
through petition duly filed in chaneery
and proved, secure the appointment Of
receiver It also has this provision,
which is the important part of the new
law
Whenever it shall by petition or bill
of complaint, setting forth the facts and
circumstances of the case, appear to the
court of ehancery. on the application of
the atternoye general. that any bank is
in an unsound condition because. of il
legal or unsafe investments, or that its
liabilities exceed its assets, or that it is
transacting business without authority or
in violation Of law, or that it is unsafe
or inexpedient for such bank to continue
business. or that it has violated, its
charter. or that it has violated its
an unsafe or unauthorized manner. or
that it shall refuse to submit its books,
papers and concerns to the inspection of
the commissioner of banking and insur-
ance or any examiner appointed by him,
or If any director. or officer thereof shall
refuse to submit to be examined upon
oath touching the concerns of such bank,
the court of chancery being satisfied by
affidavit or otherwise of the suficiency
of such application and of the truth of
the allegations contained in the petition
or bill. and upon such notice. if any, as
the court by order may direct, may pro-
eeed in a summary way to hear the affi-
davits, proofs and allegations which may
be offered on behalf of the parties. and If
upon such inquiry it shall appear to the
court that the said bank is in an unsound
condition because of illegal or unsafe in
vestments. or that it's liabilities exceed
its assets, or that it is transacting busi-
ness without authority or in violation OF
law or that it unsafe or inexpedient for
such bank to continue business, or that
such bank has refused to submit its
books. papers and concerns to the inspec-
ton Of the commissioner of banking and
insurance, or any examiner appointed by
him, or that any director or officer there
of shall have refused to submit to be ex-
amined on oath touching the concerns Of
ksuch bank or that such bank has violated
its charter or any law of this state bind
ing upon it, or in conducting business in
issue an injunction to restrain such bank
and its officers and agents, from exercis-
ing any of its privileges or franchises
and from collecting or receiving any
debts, or paying out, selling, assigning OF
transferring any of its estate, moneys,
funds, lands. tenements or effects except
to a receiver appointed by the court, un-
til the court shall otherwise order"
Senate 2S7 makes the same provis-
ions with reference to trust companies.
The new laws are a long step in adj
vance Of the present statutes on the
subject. The law at present provides
that the commissioner of banking and
insurance, when he finds banking in
stitutions insolvent, shall report the
facts to the attorney general, who shall
bring proceedings in he court of clan
Gerry for the appointment of receiver
but the trouble has been that the power
Of the court of chancery in the matter
of the appointment Of a receiver in such
cases has been limited to insolvency.
The new laws give the power to the
court. if it can be found thar the bank.
| ing institutions are unsafe. so that il
future il will not be necessary to await
until bank becomes absolutely insolv.
ent before proceeding against it.
Another bill signed Saturday was as
sembly No. 164, by Mr. Mabie. 4
authorieszes cities Of not less than TO-,
600 people governed by commissioners
or Improvement commissioners to elec
two additional commissioners to bs
known as the president and meinher-at
large Of such commission and presenpel
their daltias-