Year: 1861




passed by the Illinois Legislature synop-
sis of which is herewith presented


ARTICLE I.


Section .kThe stock which banks, now or
hereafter to be organized under the general
banking law, shall hereafter deposit as secu-
rity, shall be the stocks of the State of Hi
nois and no other and these shall be re-
ceived at their par value


Sec. 2. Whenever banks now organized
shall desire to exchange Stocks the value OF
which for two years past has been below
par, for the stocks of the United States or
other States, the value of which for two
years past has been par or over, the Au-
ditor shall make such exchange, taking the
new stock at its market yalue.e This prIvi-
lege to continue until Sept. 1861. After
that period, the substitutions shall be at the
ten per cent. margin heretofore required.


Sec. 3. Whenever (after the 1st day of
July next,) stocks deposited as security,
shall for sixty days, bedeprecated below the
rate at which they were received, it shall be
the imperative duty of the Auditor to call
for additional securities !; and bank failing
to comply with this requisition within thirty
days, shall forfeit its charter, be put in Ii
quidation and wound up.


O6c. 4. W ME dnJ Oduh Is uuuSI pLObcSS
for failure to redeem its circulating notes
on demand, as now provided by law, or un-
der a call to make up deficiencies i'll its Sc
curities, or in process of liquidation, the
Auditor, upon demand, shall cell without
notice, and deliver to the holder of any of
the circulating notes of such bank, any of
the securities deposited by such bank with
the said Auditor for banking purposes the
amount of securities to be sold and deliver
ed as aforesaid to ne in proportion to the
amount of circulating notes surrendered
therefor, in the same proportion that the
whole amount of securities of such bank
deposited with the Auditor, estimated at
their cash value at the time of such delivery,
as aforesaid, bears to the whole amount of
circulation then outstanding. ProUided, that
in no case, however, shall the Auditor de-
liver to the said holder, as aforesaid, more
than par value of the circulating notes re-
turned. And provided further, that no bank
in this State shall forfeit its charter privi-
leges, or be liable to have its bonds sold to
redeem its circulating notes, while in default
as aforesaid except in the manner provided
for in this section, until after the expiration
of six months from the passage of this act
For his services rendered under this section,
the Auditor shall be entitled to demand and
receive from each holder, as aforesaid, one
half of one per cent. as his compensation.


Sec. 5. Any bank in this State whose
circulating notes shall, within sixty days
from the passage of this act, be amply Sc
cured by its stocks on deposit with tho Aud
itor, shall not be liable to be put in iqui-
iation, or have its stocks sold for failure
TO redeem circulating notes on demand, for
six months from and after the passage of
this act. Proyided, That in case, at any
time during the said six months, said stocks
shall again become deprecated in value for
ten days, such depreciation shall be made
up, upon notice of the Auditor, within ten
days from date of notice, or the bank shall
Immediately forfeit and be deprived of all
privileges and exemptions of this section
And proUided further, That the exemptions
of this section shall not be construed so as
to prevent the Auditor from delivering to
the holder Of any of the circulating notes of
any bank in default in the manner describ-
ed in the preceding section, the stocks of
such bank as provided for in said section !;
but such power of the Auditor to deliver
the said bonds to the bill holder shall not
apply to any bank whose circulation shall
be secured as aforesaid while so secured.


ARTICLE H.