the insolvency of any such corporation, as hereinafter provided, when the said payments shall be resumed in manner as aforesaid; and so on, from time to time, as occasion may require. CHAP. XX. court of when a comes in $9. Whenever any corporation subject to the operations of Duty of this act, shall become insolvent, and shall be proceeded against chancery as hereinafter provided, it shall be the duty of the court of bank bechancery, immediately after a final dividend of the property solvent. and effects of such insolvent corporation shall have been made among the creditors thereof, to cause an order to be entered on its minutes, setting forth, 1. The total amount of debts against the said corporation, ascertained and established by the said court, including lawful interest thereon: 2. The nett amount of moneys derived from the property and effects of the said corporation, and applied, under the direction of the said court, towards the satisfaction of such debts: and, 3. The total amount of moneys then requisite to pay off and discharge the said debts. Such order shall also direct the receiver appointed to take Receiver. charge of the property and effects of the corporation, to apply to, and receive from, the comptroller of this state, in the manner hereinafter provided, the sum which shall be required to pay off and discharge the said debts. comptrol $10. Upon such receiver filing with the comptroller of this Duty of state, a copy of such order, duly certified by the proper officer, ler. and countersigned by the chancellor, it shall be the duty of the said comptroller to draw his warrant on the treasurer, in favor of such receiver, for such sum, not exceeding the amount of the bank fund, as may have been declared by the said court of chancery to be necessary to satisfy the debts of the said corporation; and the moneys paid to such receiver by such warrant, shall be paid out by him, under the direction of the court of chancery, to the several creditors of the corpo ration. 21 B., 642. deficiency $11. If at the time of filing with the comptroller, the copy In cases of of such order, the bank fund shall be insufficient to satisfy all of bank the debts of the insolvent corporation, a sum sufficient to fund. satisfy the residue of such debts as shall remain unpaid, shall be paid to such receiver, in the manner provided in the last preceding section, out of the first moneys that shall thereafter be paid to the treasurer pursuant to the eighth section of this act; and the moneys so paid to such receiver, shall be paid out by him in the manner required in the last preceding section. paid how to $ 12. The moneys so paid out of the treasury, and all other Moneys moneys required by this act to be paid out of the treasury, be charged. shall be a charge upon the bank fund hereby created. 21 B., 642. PART I. On expiration of a charter. Interest. Bank commissioners and their duty. How often to visit banks. To examine officers. To apply for an in certain cases. 13. Whenever the charter of any moneyed corporation, subject to the provisions of this act, shall expire, every such corporation shall be entitled to receive its proportional share of said bank fund, which such corporation may have contributed thereto, after deducting thereout a proportional part of the charges upon the said fund, and which share the comptroller is hereby authorized to pay to said corporation. $14. No creditor of any insolvent corporation shall, by virtue of this act, receive interest upon his debt against such corporation, from and after the time such order is made, as is required by the ninth section of this act; nor shall such creditor be entitled to interest anterior to the presentation of his demand against such corporation, to the receiver that shall be appointed to take charge of the property and effects of such corporations. $ 15. Three persons, to be styled "The Bank Commissioners of the state of New York," shall be appointed in the manner hereinafter provided; whose duty, or the duty of one of whom it shall be, once at least in every four months, to visit every moneyed corporation upon which the provisions of this act shall be binding; and thoroughly to inspect the affairs of the said moneyed corporations; to examine all the books, papers, notes, bonds and other evidences of debt of said corporations; to compare the funds and property of said corporations with the statements to be made by them as hereinafter provided; to ascertain the quantity of specie the said corporations have on hand; and generally, to make such other inquiries as may be necessary to ascertain the actual condition of the said corporations, and their ability to fulfill all the engagements made by them. [Sections 15 to 26 of this act are affected by Laws of 1843, ch. 218, which abolishes the office of Bank Commissioners, but confers their powers on persons appointed by the Comptroller.] S16. It shall be the duty of the said commissioners, or some one of them, to visit and inspect the condition and affairs of any moneyed corporation, more frequently than once in every four months, if required so to do, by any three of the moneyed corporations subject to the provisions of this act. $ 17. The said commissioners, or either of them, shall have power to examine upon oath, all the officers, servants or agents of said corporations, or any other person, in relation to the affairs and condition of said corporations; which oath the said commissioners, or either of them, are personally authorized to administer. $ 18. If the said commissioners shall ascertain from such Janction in inspection and examination, or in any other manner, that any of said corporations are insolvent, or shall have violated any of the provisions of their act or acts of incorporation, or of any other act binding on such corporations, the said commissioners shall immediately apply to the court of chancery, upon bill or petition, for an injunction against such corporation and CHAP. XX. its officers; and the same proceedings shall in all respects be had, and the court shall possess the like powers upon such application, as are provided by law, in respect to such applications, when made by the attorney-general, or by any creditor. $ 19. It shall be the duty of the said commissioners, in the To report to the legis month of January in each year, to report to the legislature, lature. the manner in which they have discharged the duties imposed upon them; and to accompany such reports by such abstracts from the reports made to them, and by such other statements as they may deem useful. [Orig. Sec. 1 repealed by Laws of 1843, ch. 218.] duties and [Orig. Sec.] 2. The said bank commissioners of the state Their of New York, are hereby authorized, required and empowered powers. to examine into all violations or abuses of law by any of the incorporated banking institutions of this state; and for that purpose shall have all the powers which are now extended by law and usage to a committee of the senate or assembly of this state, when such committee is authorized to send for persons and papers. Witnesses may be compelled to attend before said commissioners in the same manner as their attendance may be compelled before referees appointed by the supreme court in suits pending therein. [Orig. Sections 20, 21 and 22 in effect repealed by chap. 74, Laws of 1837, entitled "An act to change the manner of appointing Bank Commissioners," passed March 15, 1837, which is substituted for those sections.] [Orig. Sec. 3 repealed by Laws of 1843, ch. 218.] $23. The said commissioners shall hold their offices for two years, but shall be at any time removable by the Governor for misconduct or neglect of duty. To hold office for two years. office. $24. Before the said commissioners shall enter upon the Oath of execution of the duties of their office, they shall severally take the constitutional oath of office, before the Secretary of State, or some one of the circuit judges, or judges of the county courts of any county; and within ten days thereafter shall cause such oath, certified by the officer before whom it was taken, to be filed in the office of the Secretary of State. $25. The said commissioners shall not disclose the names of the debtors of any moneyed corporation examined by of debtors, them, or any information obtained in the course of such examination, unless required in a court of justice, or in the course of some proceeding authorized by this act. [Sec. 26, repealed by Laws of 1843, ch. 218.] Not to disclose names &c. Issues of $27. It shall not be lawful for any such moneyed corpora- bank notes. tion, to issue, or to have outstanding or in circulation, at any time, an amount of notes or bills loaned or put in circulation as money, exceeding twice its capital stock then paid in and actually possessed; nor shall its loans and discounts at any time exceed twice and a half of the amount of its capital stock so paid in and possessed. 9 Pai., 12. Corpora tion when $28. If any such moneyed corporation shall violate the last preceding section, or shall neglect to make any annual obedi to dissolved. PART I. Penalty for false state payment to the Treasurer of this state, required by this act, for the space of three months, after the time when the same ought to have been made, and after being notified of such delinquency by the Comptroller of this state; or shall have lost one-half of its capital stock paid in; or shall have suspended the payment of its bills in specie, for ninety days; or shall refuse to allow the officers of such corporation to be examined upon oath by the said commissioners, in relation to the affairs and condition of such corporation, every such corporation may be proceeded against by the said commissioners, and dissolved by the chancellor, as an insolvent corporation, as herein before provided. $ 29. Every officer, agent or clerk of a moneyed corporaments, &c. tion, who shall make false statements or false entries in the books of such corporation, or shall exhibit false papers with intent to deceive said commissioners as to the condition of such corporation, shall be deemed guilty of felony, and shall be subjected to imprisonment in the state prison, for a term not less than three nor more than ten years. Liability of stockhold ers. Annual statement. Commis sioners not holders. $30. The fourteenth, fifteenth, sixteenth, seventeenth, and eighteenth sections of the second Title of the eighteenth Chapter of the first Part of the Revised Statutes, so far as they provide for the personal liability of the stockholders of any insolvent corporation, shall not apply to any corporation subject to the provisions of this act; but the directors of every corporation subject to this act shall be liable to the stockholders thereof, as provided in the said sections. $31. The nineteenth, twentieth twenty-first, twenty-second, twenty-third and twenty-fourth sections of the second Title of the eighteenth Chapter of the first part of the Revised Statutes, shall be and are hereby so far modified, in respect to the corporations subject to this act, that the statements therein required shall be made to the bank commissioners, instead of the Comptroller; and the powers therein conferred on the Comptroller, shall not extend to any such corporation. $32. No stockholder of any moneyed corporation, having to be stock- banking powers, shall be appointed a commissioner under and by virtue of this act; and it shall not be lawful for the said bank commissioners, or either of them, directly or indirectly, to purchase or in any manner whatever to be concerned in any bank stock in this state. Rate of interest. $33. Every moneyed corporation subject to this act, shall be entitled to receive the legal interest established, or which may hereafter be established by the laws of this state on all loans by them made, or notes or bills, by them severally discounted or received in the ordinary course of business; but on all notes or bills by them discounted or received in the ordinary course of business, which shall be mature in sixty-three days from the time of such discount, the said moneyed corporation shall not take or receive more than at and after the rate of six per cent per annum in advance. 26 B., 597. CHAP. XX. stock. $34. Every moneyed corporation subject to this act, here- Capital after to be created, shall, before it makes any loans or discounts, have all its capital actually paid in; which payment shall be proved on oath, to the satisfaction of the bank commissioners, before any such loans or discounts, shall be made; and every moneyed corporation whose charter shall be hereafter extended, shall, within one year after such extension takes effect, pay in all its capital, to be proved in like manner, to said bank commissioners; but every such moneyed corporation whose charter shall be so hereafter extended, shall be permitted to reduce its capital stock to any sum not below the amount actually paid in at the time of the renewal of its charter; but such corporation shall, within one year from and after the time of such renewal, file with the Comptroller a certificate, under the seal of the corporation, setting forth the sum to which its capital stock is to be reduced, as aforesaid; the filing of which certificate shall exempt such corporation from the operation of this section, as to so much of its capital stock as shall be reduced in the manner above stated. $ 35. No moneyed corporation subject to the provisions of Notes. this act, shall issue any bill or note of the said corporation, unless the same shall be made payable on demand and without interest. CHAP. 274. AN ACT relative to the bank fund. PASSED April 29, 1833. The People of the State of New York, represented in Senate and Assembly, do enact as follows: ler to in vest 1. It shall be lawful for the Comptroller, in addition to Comptrolthe power given him by the act entitled " An act to create a fund for the benefit of the creditors of certain moneyed cor- moneys. porations, and for other purposes," passed April 2d, 1829, to invest any moneys in the treasury belonging to such fund, in such stocks or loans as he and the bank commissioners shall deem most for the interest of said fund, and best calculated to advance the purposes of its creation; but no such loan shall be made to any corporation subject to the provisions of said acts upon the stock, property or credit thereof. real estate. 52. No such loan shall be made upon real estate, unless the Loans on same is unencumbered and worth double the value of the sum to be loaned thereon; nor shall the buildings on said real estate be estimated as a part of the value thereof, unless the same shall be insured by the mortgagor, in such company as |