Year: 1866

WHEREAS The financial policy of the Federal
Government adopted to maintain the national
credit, with the heavy taxes imposed by that Gov
ernmcnt on the INKS Of the State makes it a'1
soutely necessary that said Banks should close
their business, and renders Il further c0ntnu lnce
OF tlhelrcorporate existence idle and useless TO the
people of the State,


Section l. Be it enacted by the General assembly
Of the State Ct NORTH Carolina, and it is hereby
enacted by the aa3th,ity Of the same, That if the
Stockholders of any of the Banks chartered by the
General Assembly of this State sh.Il be unwilling
to close the business of their Banks by assign
ment and are desirous to appropriate all the estate
and effects of such Bank 1or the benefit of its
creditors, and to close its business and surrender
their chartered rights and franchises in cOnformi
ty with the subsequent provisions of this act,
such Stockholders may by their bill in equity in
the name of such Bank filed in the Court of Equity
of the county in which the principal Bank any
of its branches may be located, require the crcdi
tors of such Bank to prefer and establish their
demands within such time (not less than twelve
months after decree therefor) as shall be allowed
by the Court. The Court shall upon filing such
bill appoint as commissioner a suitable person
acquainted with the business of such Bank, who
shall be paid for his services such sum may be
allowed by the court. Such commissioner shall
give bond with ample security, payable to the
State for the faithful discharge of his duties in
such sum as shall be approved by the court,
which bond shall be filed in court and may be
sued on for the use of such persons as the court
may allow.


Sec. 2. BE it further enacted, That the commits
sioner appointed aforesaid, upon filing the bond
required of him, shall forthwith become and so
long as he shall contiue such commissioner and
no longer shall be vested with all the estate, ef
fccts and rights of action which such Bank posses
sed had or held vested with, at the time
of filing such bill, and whiLh such Bank could at
that time have lawfully sold, assigned or trans
ferred, including all debts due to such Bank or to
any person for its and all liens and securities
therefor. The court may require such Bank by
its Cashier or other proper officer to endorse
without recourse, all such bills ornotes draw all
such checks or orders for money and execute such
other paper writings as the court shall deem ne
cessary useful to enable the commissioner to
demand or recover and receive the estate and e.
fects of such Bank for the benefit of its creditors.
The commissioner shall have the like remedy to
and receive all the estate debts and effects
belonging to such Bank at the time of filing its
bill, such Bank might have had if no proceed
ings had been had under this act; and should any
such Bank have made any sale or transfer of its
property or effects fraudulent as to its creditors
but valid as between the parties, in such cases
such commissioner shall stand i'll the place of the
creditors, and may recover and receive such pro-
pertyor effects traudulently sold transferred
although such Bank could not have done In
all suits prosecuted by such Commissioner at
law or in Equity the plaintiff shall be styled 1.-The
Commissioner" (adding thereto the name of the
particular Bank for which he has been appointed
the Commissioner and if at the time of filing
such bill by any Bank any action at law or pro-
cecding suit in Equity shall be pending in the
name Of such Bank for the recovery of any estate.
debt or demand which might OF ought to be vested
in such Commissioner as aforesaid, such Commits
soner shall be admitted to prosecute the same in
like manner and to like effect; ard no suit pend
ing at any time for the recovery of any estate,
debt or demand in the name of such Commission
er shall be abated by the death removal of such
Commissioner, buta Commissioner to be appoint
ed in such cases (as is hereinafter provded) shall
be admitted to prosecute the same i'll like manner
and to like effect as if the same had been origin
ally commenced by him.


Sec. 3. BE it further enacted, That the Commis-
siOner aforesaid shall in all things connected with
the discharge of his duties Commissioner, act
under the direction and orders of the court; and
il any such Commissioner shall refuse or unrea-
sOnably delay or neglect to obey any rule, order
decree of the court, it shall be the duty of the
cOurt tO Supll Commissioner: and upon
such removal or upon any vacancy by death or
otherwise, the court shall appoint some other
person Commissioner, who shall enter into bond
in such sum the court shall direct in like man
ner and for the like uses and purposes as provided
in cases of the Commissioner first appointed; !;
and thcreupon all the estate, property, effects
debts and rights OF action vested in such Bank
after the time of filing its BILL not before lawfully
disposed OF by any former Commissioners, shall be
forthwith vested in such new commissioner as
legally and efcctually as if he had been the COM
missioner first appointed; and the court shall have
the powcrto require any former commissioner or
the representative of any deceased commissioner,
to surrender to such new commissioner any such
estate, effects, money or evidence OF debt which
of right should be in the hands possession of
such new commissioner.


See. t. Be IL FURTHER enacted, That all demands
of creditors may be preferred and proved before
such commissioner, and for all purposes connect
ed with the investigation of the demands of any
person claiming to be Il creditor as aforesaid, the
commissioner shall have power to administer all
oaths required in the course of such proceedings.
Any supposed creditor whose claims shall be
wholly or in part disallOwcd by any commission
er NAV appeal to the Court, where the same shall
be determined according 10 the course of the
Court, decided at law, as the court may direct;
and in all such appeals the case shall be dockeed
in the name of the creditor against "The Com
missioner of - fadding the name of the Bank
of which he is commissioner and shall be tried
and determined as like suits between other parties.
In all cases in which any such commissioner shall
be party, whether plaintiff or defendant, and it
shall appear that there has been mu uai credit
given by the Bank, and any other corporation or
oryr rln~ IN ~ iS Ifp n "a
mutual debts between them, whether such debts
be due and payable or not the account between
the parties shall be stated and one debt shall be
set off against the other, and the balance of such
account only shall be allowed or paid on eitheir
side respectively; and the costs in all cases shall
be paid by either party as the court shall direct
The commissioner shall from time to time pre-
pare statements in writing of all claims allowed
by him; showing the character of such claims and
the evidence which their validity is based;
and there shall be no application of any funds in
the hands of such commissioner to the satisfac-
ton in whole or in part of any claim whatever,
except under rule or order of the court there
for


Sec s. Be it further enacted, That the court shall
make all proper orders and decrees for the colec-
tion of the assets of such Bank, of every nature
and description, and for the payment of the costs
and expenses incident to the proceedings. The
creditors whose claims and demands have been
proved and established as aforesaid against the
estate and effects of such Bank in the hands of the
commissioner, shall be entitled to payment in
satisfaction of the same out of the assets in hands
of such commissioner the court shall order
and direct; and all such claims and demands not
prosecuted, proved and established according to
the provisions of this act within the time allowed
by the decree of the court therefor shall be barred
of recovery by any action at law or other proceed
ing in equity; and any suit brought for their re-
covery otherwise than is herein provided shall on
the plea of the commissioner of such Bank be
abated, or on his motion be dismissed.


Sec g. Be it further enacted, That it shall not be
necessary in any bill filed under this act, to make
any particular persons or corporations parties by
name, but it shall be sufficient if the defendants
be denominated creditors of the particular Bank
in behalf of which suit may be instituted and
notice of the bill shall be published for the space
of thirty days soon it may be filed in at least
fifteen newspapers, one of which shall be pub
lished in the City of Raleigh; in the city of
Charleston, S. G.; one in the city of Richmond,
Va. one in the city of Baltimore, Md; one in the
city of Philadelphia; one in the city of New ork
one in the city of Augusta, Ga; one in the city OF
Montgomery, Ala. one in the city of n. Orleans;
and one in the city of Nashville Tenn.


Sec. T. Be 1t further enacted That any one of the
the Judges of the Supreme Court or of the Su-
perior Courts of law and equity, shall have power
at his chambers, from time to time, to make any
such rules, orders DEGREES may be necessary
or required for expediting the settlement of all
conti OVERSEES between any commissioner appoint
ed under this act, and other parties for the guild
ance and instruction of any commissioner in any