Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-10-29


10 loan to its president or to any of its
rice presidents, or its salaried officers
Or employees or to corporations and
firms controlled by them, or in the
management of which any of them are
actively engaged. until an application
for such loan SHAH have been first APP
proved. both as to security and
amount, by the board Of directors.
Section II. Banks or banking asso-
Citations may be organized under the
provisions of this Act in all cities,
towns, and villages with minimum
capital stock, according to the popu-
lation of such cities, towns and vii
lagos, as follows:
In all cities, towns and villages of
not exceeding five thousand inhabi-
tants, of twenty-five thousand dollars.
In all cities, towns and villages OF
over five thousand inhabitants and
less than ten thous. nd inhabitants, OF
fifty thousand dollars. In all cities.
towns and villages of ten thousand
Inhabitants anu less than fifty thou
sand inhabitants, of one hundred
! thousand dollars. In all cities and
! towns of fifty thousand inhabitants or
/ more, of two hundred thousand dol
lars.
| Should the capital stock of any
bank organized under this Act become
impaired, the Auditor shall give
, notice to the president to have the i'm
/, pairment made good by assessment of
/, the stockholders or Il reduction of the
capital stock of such bank. If the re-
ducti0n should not bring the capital
below the provisions of this section:
and if the capital stock of said bank
shall remain impaired for thirty days
after notice by the Auditor, he shall
have the power, and it is hereby made
his duty to enter suit against each
stakeholder in the name of the People
OF the State of Illinois, for the use
of said bank. for his or her pro rata
proportion of such Impairment, aud
when collected shall pay over the
amount thereof to said bank: and the
Judgment in sCfh case shall be for
the amount claimed, with all COSTS
and reasonable attorneys fees, which
fees shall be fixed by the court: Or
if it appears from the reports made
to the Auditor under this Act. or from
any examination made by or ON behalf
of the Auditor, that the conditions of
any bank organized under this Act are
such that the impairment of the capt
tai stock cannot be made good. or that
the business of any such bank is be-
ing conducted in an illegal, fraudu-
lon ia, La in
discretion, without having taken the
steps provided in this section to make
good the impaired capital stock,
through the Attorney General, file i
, bill in the circuit court of the cOun-
t., in which said bank is located. in
the name of the People of the State
of Illinois against said bank and its
, stockholders. for the dissolution of the
corporation and for an injunction, and
, for the appointment of Il receiver for
the winding up of the affairs of the
bank. And said court, upon presen
tation of said bill. and upon being
, made satisfied that the capital stock
, of said bank has become impaired t.
such an extent that ii cannot be made
good, or that such bank is being con
, | Quoted in an Illegal fraudulent or un
safe manner. shall Immediately ap
:, point competent and diSintereste(
person as such receiver. and shall de
termine and fix his bonds and shall
, prescribe his duties. And said carst
shall proceed as other cases in equity
And no bill shall be filed nor proceed
ings commenced in any court for tn,
dissolution or for the winding up o.
- the affairs or for the appointment o
receiver for any such banking cor
pOratiOn on the ground of insolvenc,
or Impairment of the capital stock o
:, such banking corporation. or upon TIN
;, ground that such bank is being con
:, Quoted i'll an Illegal. fraudulent or I'm
:. safe manner. except in the name an,
by the authority of the Auditor o
Public Accounts. represented by TIL
:. Attorney General. When it shall b.
= ascertained. in the course of the al
= ministration of the estate of Il banl
in the hands of a receiver, that the as
sets of the bank are insufficient +
o discharge the entire liability of sue
j. bank TO its creditors, and when TIL
+! amount of such deficiency is deter
. mined, the court may, in its discretion
u direct the receiver to proceed to en-
II force the liability of the stakeholder
e TO creditors provided in section 6 o
IL this Act; and when so directed. sue
l. receiver shall have the power, and
i shall be his duty, TO take such actor
by suit or otherwise. as tie court ma
III direct to enforce such liability for til
u benefit of the creditors and TO disburs
u to creditors the amounts collecte
IL thereon in the same manner as dis
u. bursemerts are made to creditors G
II the assets OF the bank.
/ Such receiver shall file with til
y Auditor a ccpy of each report whic
81 he makes to the court appointing hin
s in order that the said Auditor ma
er have at his command complete rec
ord of all State institutions who's
: business has been so liquidated.
AT any time, whenever Il majorit
III in number and amount of the credi
ie ors of 2uy such bank or association
3 after auy such receiver shall hav