Year: 1866

STATE TO CLOSE IHElR BUSINESS,


WHEREAS, The financial policy of the Federal
Government adopted to maintain the national
credit, with the heavy taxes imposed by that Gov
ernment on the B.nks of the State, makes it at,-
solutely necessary that SAID Banks should close
of theircorporae existence idle and useless the
people of the State,


Section l. BE it enacted by the General AsseJrbly
Of the State Of North Cdrolina, and 1t is hereby
enacted 6y the autltrity " the same, That ifthe
Stockholders of any OF the Banks chartered by the
General Assembly of this State shall be unwilling


to close the business of their Banks by assign
ment and desirous to appropriate all the estate
and effects of such Bank or the benefit of its
creditors and to close its business and surrender
their chartered rights and franchises i'll confOrmi-


ty with the subsequent provisions of this act,
such Stockholders may by their bill i'll equity in


the name of such Bank filed in the Court of equity
OF the county in which the principal Bank or any


of its branches may be located require the credi-
tors of such Bank to prefer and establish their
demands within such time (not less than twelve
months after decree tlerefor) as shall be allowed


by the Court. The Court shall upon filing such


bill appoint commissioner 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 snail be approved by the court,
which bond shall be filed i'll court and may be
sued on for the use of such persons as the court
may allow.


Sec 3 Be it further enacted That the commits
soner appointed as aforesaid, upon filing the bond
required Oh MIN, shall IOrlnWltn DccOlnC, ana SO
long as he shall contiue such commissioner and
longer, shall be vested with all the estate, eff


fects and rights of action which such Bank posses
sed, had held or was vested with, at the time
of filing such bill, and which such Bank could at
that time have lawfully sold, assigned trans
ferred, including all debts due to such Bank or to
any person Tor its and all liens and securities
therefor. The court may require such Bank by
its Cashier or other proper officer 10 endorse
without recourse, all such bills notes, draw all
such checks or orders for money and execute such
other paper writings as the court shall deem
cessary useful 10 enable the commissioner to
demand or recover and receive the estate and e.
fccts of such Bank for the benefit of its creditors.
The commissioner shall have the like remedy TO
recover and receive all the estate debts and effects


belonging such Bank ut the time of filing its


bill, :is 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 effects, fraudulent to its creditors


but valid between the parties, in such
such commissioner shall stand in the place of the
creditors, and may recover and receive such pro-


pertyor effects traudulently sold or transferred,
although such Bank could not have done so. In
all suis prosecuted by such Commissioner at
law or in Equity the plaintiff shall be styled The
Commissioner" (adding thereto the name of the
particular Bank tor 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-
cccding suit in Equity shall be pending in the
name of such Bank for the recovery OF any estate,
debt or demand which might or ought to be vested
i'll such Commissioner as aforesaid, such Comms-
SOner shall be admitted to prosecute the same in
like manner and to like effect; AID no suit pend
ing at any time for the recovery of any estate,
debt or demand i'll the name of such Commission
shall be abatcd by the death or removal of such
Commissioner, huta Commissioner to be appoint
cd in such (as is hereinafter provided) shall
be admitted TO prosecute the same in like manner
and to like effect if the same had been origin
ally commenced by him.


Sec. 3. b IL tuifher etacted, That the Commits
sioner aforesaid shall i'll all things connected with
under the direction and order, of the court; and
il any such Commissioner shall refuse or unreal
SOuaDly delay or neglect to obey any rule, order
decree of the court, it shall be the duty OF the
court to remove such 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 as the court shall direct i'll like man
ner and for the like uses and purposes provided


in cases of the Commissioner first appointed;
and thereupOn 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 Commissioner, shall be
forthwith vested in such new commissioner as
legally and etfcctually us if he had been the COM
missioner first appOintcd and The court shall have
the powerto 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 i'll the hands or possession OF
such new commissioner.


See. + Be IL further enactea 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 creditor as aforesaid, the
commissioner snail have power to administer all
oaths required in the course of such proceedings
Any supposed creditor whose claims shall be
wholly or i'll part disallowcd by any commission
er, may appeal to the Court, where the same shall
be determined according TO the course of the
Court, decided at law, as the court may direct
and in all such appeals the shall be docketed
in the name of the creditor against The Com |
missioner of -" (adding 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
DC party, whether plaintiff defendant, and it |
shall appear that there has been mutual credit
given by the Bank, and any other corporation or
my person who is the opposite party or there are
mutual debts between them, whether such debts
DC due and payable or not, the account hetween
he parties shall be stated, and one debt snail DC
set off against the other, and the balance of such
lccount only snail be allowed or paid on either
ide respectively; and the costs in all cases shall
De paid by either party the court shall direct.
The commissioner shall from time to time pre-
,are statements in writing of all claims allowed
" him; showing the character of such claims and
he evidence which their validity is based;
nd there shall be no application of any funds in
he hands of such commissioner to the satlsfac-
ion in whole or in part of any claim whatever,
kept under rule order of the court there
Or


Sec. 5. Be further enacted That the court shall
lake all proper orders and decrces for the collec-
ion OF the assets of such Bank, of every nature
nd description, and for the payment OF the costs
nd expenses incident to the proceedings The
reditors whose claims and demands have been
roved and established as aforesaid against the
state and effects of such Bank in the hands OF the
shall be entitled to payment in
ltisfaction of the out of the assets in hands
such commissioner, as the court shall order
nd direct; and all such claims and demands not
proved and established according to
le provisions of this act within the time allowed
the decree of the court therefor shall be barred
recovery by any action at law or other proceed
g in equity; and any suit brought for their re-
)very otherwise than is herein provided shall on
he pea OF the commissioner of such Bank be
oated, or on his motion be dismissed.


Sec. g. BE ii further enacted, That it shall not be
ecessary in any bill filed under this act, to make
~ particular persons or corporations parties by
lme, but it shall be sufficient if the defendants
2 denominated creditors of the particular Bank


behalf of which suit may be instituted; and
otice of the bill shall be published for the space


thirty days so soon as it may be filed in at least
fteen newspapers, one of which shall be pub
shed in the City of Raleigh; one in the city of
S. c.; one in the city of Richmond,
a.; one in the city of Baltimore, Md; one in the
ty OF Philadelphia; one in the city OF New ork;
ne in the city of Augusta, Ga. one in the city of
ontgomery, Ala; one in the city of N. Orleans;
Id one in the city of Nashville, Tenn.


Sec. z. Belt further enacted That any one of the
lie Judges of the Supreme Court, or of the Su-
erlor Courts of law and equity, shall have power


his chambers from time to time, to make any
lch rules, orders or DEGREES may be necessary
required for expeditng the settlement of all
between aDnOnt-