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Rate of discount.

under the seal of said corporation, shall be binding and obligatory on said corporation, and of like force and effect, and shall be assignable and negotiable in like manner as if made by a natural person or persons; and all bills obligatory and of credit, under the seal of said corporation, which shall be made for the payment of money to any person or persons, shall be assignable by assignment endorsed thereon, under the hand or hands of such person or persons, and his, her, or their assignee or assignees, successively; and all bills or notes, bills obligatory or of credit, made or issued by said corporation, shall be deemed and taken to be payable and demandable at the banking

house of said corporation. Dividends. 8. And be it enacted, That it shall be the duty of the board

of directors of the said corporation, to make semi-annual dividends of so much of the profits of the business of said corporation as the board shall deem advisable, but no dividend shall be made of any part of the capital stock.

9. And be it enacted, That the rate of discount at which loans may be made by said corporation, shall not exceed the legal rate of interest in this state for the time being; provided, that nothing herein contained shall be construed to prohibit the said corporation from dealing in bills of ex

change, and the purchase and sale thereof. Transfers of

10. And be it enacted, That no transfer of the stock of stock.

said corporation shall be valid and effectual until any debt or debts which may be due to said company from the person or persons, or any of them, transferring, shall have been fully discharged, nor until such transfer shall have been registered in a book or books to be kept for that purpose

by the board of directors. Charter for 11. And be it enacted, That if at any time the said corpofeited if bills are not re- ration shall neglect or refuse, on demand being made at their

banking house during the regular hours of business, to redeem, in lawful money, any of the bills or notes issued by said corporation, and which shall then be due and payable, the said corporation shall thereupon, under the pain of for

payment of

directors.

feiting its charter, wholly discontinue and cease from bank. ing operations until such bills or notes shall be fully paid.

12. And be it enacted, That if the said corporation shall Assets of at any time hereafter become insolvent, the whole assets of liable for said corporation at the time of its becoming insolvent, shall bills. be first liable for the redemption of its bills or notes then in circulation, and shall be first applied to the payment thereof; and in case of a distribution of the assets of said corporation among the creditors thereof, under the order or decree of the court of chancery, or other court, the holders of such bills or notes shall be equal in priority, and shall have a preference over all the other creditors.

13. And be it enacted, That all the directors of said cor- Liability of poration shall be residents of this state, and shall be jointly and severally liable for the payment of all the bills or notes of said corporation, which may be in circulation at the time of its becoming insolvent, and may be jointly or severally prosecuted at law or in equity by any receiver or receivers that shall or may be appointed, for the payment of any such bills or notes, as if the same were their joint and several bills or notes executed by them in their individual capacity; and it shall not be lawful for any director of said corporation to resign his office to avoid such liability; and if any director shall so attempt to resign his office, he shall be and continue liable the same as if no such resignation had been attempted; and such liability of directors shall continue after they have ceased to be directors, either by resignation or otherwise, if said corporation was insolvent when they ceased to be directors; and it shall not be lawful for any director to assign or transfer his stock or other property to avoid such liability; and in case of the payment of any such bills or notes by any said directors, the other directors who may be liable, shall account in the same way as other joint debtors are accountable to each other; provided, that no pro- Proviso. perty shall or may be levied on or taken in execution, under or by virtue of any judgment or decree in favor of any receiver or receivers under the provision of this act, shall be

Amount of assets to be

ers.

sold until after the expiration of four months from the date of said judgment or decree.

14. And be it enacted, That if the assets of said corporadivided pro tion and the property of said directors shall prove insuffi

cient to redeem the whole of the said bills and notes, then the amount that shall or may be realized from said assets and property, shall be distributed ratably among the

holders of the said bills and notes. Liability of

15. And be it enacted, That the stockholders of said cor. stockhold

poration at the time of its becoming insolvent, other than said directors, shall be jointly and severally liable to any receiver or receivers that shall or may be appointed as aforesaid, to an amount sufficient to redeem the said bills and notes, after the assets of said corporation and the pro

perty of said directors shall have been distributed as aforeProviso.

said ; provided, that no stockholder, other than said directors, shall be made liable to an amount exceeding the par value of the stock held by him at the time said corporation becomes insolvent; and if that amount shall not be required for the full redemption of said bills and notes, then the said stockholders shall be liable in the ratio of the said stock so held by them, and it shall not be lawful for any such stockholder to assign, or otherwise transfer his stock

or other property, to avoid such liability. Actions

16. And be it enacted, That in case of an action or suit at stockholders law against any director or directors, stockholder or stock

holders, under any of the preceding sections of this act,

the receiver or receivers, may declare generally for money Proviso. had and received; provided, that a schedule shall be an

nexed to the said declaration, setting forth that the said action or suit is under and by virtue of the provisions of this act, specifying the aggregate amount claimed, the names of the president and cashier subscribed to the bills or notes declared on, and the number and denominations

thereof. Amount of 17. And be it enacted, That the bills or notes issued by issue.

said corporation shall not at any time exceed double the amount of its capital stock, actually paid in, and if the

against

statement to

president or cashier thereof, shall knowingly or wilfully, issue, or cause or suffer to be issued, bills or notes of said corporation, exceeding double the amount of its capital stock, actually paid in, such president or cashier shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be punished by imprisonment not less than one year, nor more than five years, in the discretion of the court.

18. And be it enacted, That it shall be the duty of said Monthly corporation, on the first Monday of every month after be made. commencing the business of banking, to publish in one or more of the newspapers published in the county of Union, a statement, under oath or affirmation, of the actual condi. tion of said corporation, conforming as nearly as may be with the annual statements now required by law, and shall within ten days after making such statement, forward a duplicate thereof to the secretary of state, to be by him filed in his office; and if any president, cashier or director shall knowingly and wilfully, falsely, swear or affirm to any such statement, he shall be deemed guilty of perjury, and be liable to the pains and penalties thereof.

19. And be it enacted, That it shall not be lawful for the Afidavit of said corporation to issue any bills or notes, or otherwise capital paid enter upon the business of banking, until an affidavit or affidavits shall have been made and filed in the office of the secretary of state, stating, that twenty-five thousand dollars of the capital stock of said corporation had been subscribed for, and paid in conformable to the provisions of this act.

20. And be it enacted, That this act shall go into effect Limitation. immediately, and continue in force for twenty years; but it shall be lawful for the legislature at any time hereafter, to alter, modify, or repeal the same, whenever in their opinion the public good shall require it.

Approved March 23, 1859.

.

CHAPTER CCVII.

An act to incorporate " The Weequahick Lake Association."

Names of corporators.

Amount of capital stock.

1. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey, That Joseph Battin, Henry Meeker, John Young, James J. Mapes, John R. Pierson, William F. Day, John C. Beardsley, Oliver S. Halsted, Junior, John Teese, William Price and George R. Chetwood, and their associates and successors, shall be and they are hereby constituted a body politic and corporate by the name of “The Weequahick Lake Association," with the power to purchase, hold and improve such real estate as may be necessary for the purposes of said society, and power to sell and convey the same, and with all the powers, rights and incidents of a corporation under the laws of the state of New Jersey.

2. And be it enacted, That the capital stock of said company shall be thirty thousand dollars, with the privilege of increasing the same to fifty thousand dollars, which shall be divided into shares of twenty-five dollars each, and paid in by the stockholders at such time and in such manner, and in such instalments as the directors of said company may direct, and in such penalties for neglecting the pay. ment of such instalments as the said directors shall deem advisable; and such shares shall be deemed personal property, and be transferable in such manner as the company by their by-laws may appoint; provided, that at least thirty days' notice in writing shall be given to each of the stockholders of the time when the shares are required to be paid in.

3. And be it enacted, That the above named person, or a receive sub- majority of them, shall be commissioners to open books scriptions.

and receive subscriptions to the capital stock of said company, at such time or times, and place or places, as they, or a majority of them, may think proper, giving notice

Commissioners to

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