PART I Owners of mortgages to receive interest except in certain cases. When pledged se curities to be sold and how. association on receiving other approved bonds and mortgages of equal amount. 14 B., 196. 10. The person or association of persons assigning such bonds and mortgages to the Comptroller, may receive the annual interest to accrue thereon, unless default shall be made in paying the bills or notes to be countersigned as aforesaid, or unless in the opinion of the Comptroller the bonds and mortgages or stocks so pledged shall become an insufficient security for the payment of such bills or notes. $ 11. In case such person or association of persons shall fail or refuse to pay such bills or notes on demand in the manner specified in the fourth section of this act, the Comptroller, after the ten days' notice therein mentioned, may proceed to sell at public auction the public stocks so pledged or the bonds and mortgages so assigned, or any or either of Proceeds to them, and out of the proceeds of such sale shall pay and canto payment cel the said bills or notes, default in paying which shall have been made as aforesaid; but nothing in this act contained shall be considered as implying any pledge on the part of the state for the payment of said bills or notes beyond the proper application of the securities pledged to the comptroller for their redemption. be applied of bills. Plates, &c., in custody of comp troller. Expenses in execut ing this act how paid. 9 Pai., 357. $12. The public debt and bonds and mortgages to be deposited with the Comptroller by any such person or association, shall be held by him exclusively for the redemption of the bills or notes of such person or association put in circulation as money, until the same are paid. 9 N. Y., 483; 7 N. Y., 538; 29 B., 243. S 13. The plates, dies and materials to be procured by the to remain Comptroller, for the printing and making of the circulating notes provided for hereby, shall remain in his custody and under his direction; and the expenses necessarily incurred in executing the provisions of this act, shall be audited and settled by the Comptroller, and paid out of any moneys in the treasury, not otherwise appropriated; and for the purpose of reimbursing the same, the said Comptroller is hereby authorized and required to charge against and receive from, such person or association applying for such circulating notes, such rate per cent thereon as may be sufficient for that purpose, and as may be just and reasonable. Comptrol ler not to countersign bills beyond securities pledged. S14. It shall not be lawful for the Comptroller, or other officer, to countersign bills or notes for any person or association of persons, to an amount in the aggregate exceeding the public debt, or public debt and bonds and mortgages at their value, as provided in the second section of this act, deposited with the Comptroller by such person or association; and any Comptroller or other officer who shall violate the provisions of this section shall, upon conviction, be adjudged guilty of CHAP. XX. for viola a misdemeanor, and shall be punished by a fine not less than Penalties five thousand dollars, or be imprisoned not less than five tion of this years, or by both such fine and imprisonment. 2 H., 241. provision. associates of capital $15. Any number of persons may associate to establish Number of offices of discount, deposite and circulation, upon the terms and amount and conditions, and subject to the liabilities prescribed in this stock. act; but the aggregate amount of the capital stock of any such association shall not be less than one hundred thousand dollars. 32 B., 620; 29 B., 243; 2 H., 154; 24 W., 345; 17 How. P. R., 110. $16. Such persons, under their hands and seals shall make Association a certificate which shall specify, to make a certificate, and its con 1. The name assumed to distinguish such association, and to tents. be used in its dealings: 2. The place where the operations of discount and deposite of such association are to be carried on, designating the particular city, town or village: 3. The amount of the capital stock of such association, and the number of shares into which the same shall be divided: recorded, 4. The names and places of residence of the shareholders, and the number of shares held by each of them respectively: 5. The period at which such association shall commence and How proved terminate; which certificate shall be proved or acknowledged and filed. and recorded in the office of the clerk of the county where any office of such association shall be established, and a copy thereof filed in the office of the Secretary of state. 10 N. Y., 550; 32 B., 620; 7 H., 530; 5 H., 490; 2 H., 154; 3 S. Ch. Certificates dence. S17. The certificate required by the last preceding section may be to be recorded and filed in the offices of the clerk of the used as evicounty and Secretary of state as aforesaid, or copies thereof, duly certified by either of those officers, may be used as evidence in all courts and places for and against any such association. powers of $ 18. Such association shall have power to carry on the General business of banking, by discounting bills, notes and other association. evidences of debt; by receiving deposites; by buying and selling gold and silver bullion, foreign coins and bills of exchange, in the manner specified in their articles of association for the purposes authorized by this act; by loaning money on real and personal security; and by exercising such incidental powers as shall be necessary to carry on such business; to and cashier. choose one of their number as president of such association, and to appoint a cashier, and such other officers and agents as their business may require, and to remove such president, cashier, officers and agents at pleasure, and appoint others in their place. 22 N. Y., 522; 19 N. Y., 152; 17 N. Y., 521; 15 N. Y., 9; 5 N. Y., 389; President PART I. Shares to $ 19. The shares of said association shall be deemed perbe personal sonal property, and shall be transferable on the books of the property and how transfera ble. Rights of sharehold ers. association in such manner as may be agreed on in the articles of association; and every person becoming a shareholder by such transfer, shall, in proportion to his shares, succeed to all the rights and liabilities of prior shareholders; and no No change change shall be made in the articles of association by which the rights, remedies or security of its existing creditors shall be weakened or impaired. Such association shall not be disAssociation solved by the death or insanity of any of the shareholders ed by death, therein. in to impair right of creditors. &c., of sharehoid ers. Articles may pro vide for increase of Contracts how signed, and suits how prosecuted. 5 N. Y., 389; 25 B., 413; 3 S. S. C., 161. $20. It shall be lawful for any association of persons organized under this act, by their articles of association, to capital, &c. provide for an increase of their capital and of the number of the associates, from time to time as they may think proper. S21. Contracts made by any such association, and all notes and bills by them issued and put in circulation as money, shall be signed by the president or vice-president and cashier thereof; and all suits, actions and proceedings brought or prosecuted by or on behalf of such association, may be brought or prosecuted in the name of the president thereof; and no such suit, action or proceeding shall abate by reason of the death, resignation or removal from office of such president, but may be continued and prosecuted according to such rules as the courts of law and equity may direct, in the name of his successor in office, who shall exercise the powers, enjoy the rights and discharge the duties of his predecessor. 19 N. Y., 156; 3 N. Y., 19; 32 B., 620; 5 B., 9; 1 D., 522; 4 H., 442; 2 H., 154; 2 S. Ch., 23; 1 S. S. C., 693. Actions may be sident of $22. All persons having demands against any such assomaintained ciation, may maintain actions against the president thereof; against pre- which suits or actions shall not abate by reason of the death, association. resignation or removal from office of such president, but may be continued and prosecuted to judgment against his successor: and all judgments and decrees obtained or rendered against such president for any debt or liability of such association shall be enforced only against the joint property of the association, and which property shall be liable to be taken and sold by execution under any such judgment or decree. Not to abate by his death or removal. Judgment enforced against joint property only. Sharehold sonally lia ble unless 9 Pai., 410; 24 W., 345. S23. No shareholder of any such association shall be liable y in his individual capacity for any contract, debt or engagement of such association, unless the articles of association association by him signed shall have declared that the shareholder shall be so liable. articles of make them 80. For what purposes to hold and convey real estate. 24. It shall be lawful for such association to purchase, hold and convey real estate for the following purposes: 1. Such as shall be necessary for its immediate accommodation in the convenient transaction of its business; or 2. Such as shall be mortgaged to it in good faith, by way of security for loans made by, or moneys due to, such association; or 3. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or 4. Such as it shall purchase at sales under judgments, decrees or mortgages held by such association. CHAP. XX. holding for purpose. Real estate veyed. The said association shall not purchase, hold or convey real Prohibited estate in any other case or for any other purpose; and all any other conveyances of such real estate shall be made to the president or such other officer as shall be indicated for that purpose in how conthe articles of association; and which president or officer, and sale free his successors from time to time may sell, assign and convey from therethe same, free from any claim thereon, against any of the on against shareholders or any person claiming under them. 10 N. Y., 550; 1 S. Ch., 179. any sharehold ers. cellor to amination be publish $25. Upon the application of creditors or shareholders of When chanany such association, whose debts or shares shall amount to order exone thousand dollars, and stating facts verified by affidavit, of affairs of the chancellor may, in his discretion, order a strict examina- association. tion to be made by one of the masters of his court, of all the affairs of such association, for the purpose of ascertaining the safety of its investments, and the prudence of its management; and the result of every such examination, together Result may with the opinion of the master and of the chancellor thereon, ed. shall be published in such manner as the chancellor shall direct, who shall make such order in respect to the expenses of such examination and publication as he may deem proper. [Section 26 of original act repealed by section 5 of chapter 319, Laws of 1841.] $27. If such association shall neglect to make out and Penalty for transmit the statement required in the last preceding section, to report, for one month beyond the period when the same is required ting any to be made, or shall violate any of the provisions of this act, such association may be proceeded against and dissolved by the court of chancery, in the same manner as any moneyed corporation may be proceeded against and dissolved. 3 Ed., 395. neglecting or for viola provision of this act. withdrawn ends to be $28. If any portion of the original capital of any such If capital association shall be withdrawn for any purpose whatever no divid whilst any debts of the association remain unsatisfied, no made. dividends or profits on the shares of the capital stock of the association shall thereafter be made, until the deficit of capital shall have been made good, either by subscription of the shareholders, or out of the subsequently accruing profits of the association; and if it shall appear that any such dividends Penalty for have been made, it shall be the duty of the chancellor to make vidends in the necessary orders and decrees for closing the affairs of the such case. association, and distributing its property and effects among its creditors and shareholders. 3 Ed., 395. making di PART I Holder of bill entitled to 14 per cent in case of non-pay ment on demand. List of names of ers. to be kept and where $29. Such association shall be liable to pay the holder of every bill or note put in circulation as money, the payment of which shall have been demanded and refused, damages for non-payment thereof, in lieu of interest, at and after the rate of fourteen per cent per annum, from the time of such refusal until the payment of such evidence of debt, and the damages thereon. See Laws of 1851, ch. 203; 8 Cow., 88; 5 Cow., 161. $30. The president and cashier of every association formed sharehold pursuant to the provisions of this act, shall at all times keep a true and correct list of the names of all the shareholders of such association, and shall file a copy of such list in the office of the clerk of the county where any office of such association may be located, and also in the office of the Comptroller, on the first Mondays of January and July in every year. filed Bills less than $1000 not to be made paya ble at any place except the office of the association. Repealing clause. S31. It shall not be lawful for any association former under the provisions of this act, to make any of its bills or notes of a denomination less than one thousand dollars, to be put in circulation as money, payable at any other place than at the office where the business of the association is carried on and conducted. $ 32. The legislature may at any time alter or repeal this act. 21 N. Y., 16; 2 D., 380; 1 D., 9; 7 H., 504. ̧ [§ 33 of original act repealed by § 6 of chapter 363, Laws of 1840.] Not to affect stocks now held by comptroller Amount of securities ited. CHAP. 363. AN ACT to amend the act entitled "An act to authorize the business of banking." PASSED May 14, 1840. The People of the State of New York, represented in Senate and Assembly, do enact as follows: 1. [Substitutes a new section for the second section of the original act, which is inserted in the preceding publication of the same.] 17 B., 386; 5 B., 27; 3 H., 388. $ 2. The provisions of the said second section shall not be construed to prevent the stocks now held by the Comptroller under the act hereby amended, from being hereafter transferred to and received by him at their market value in the same manner as though this act had not been passed. S3. No association of persons shall commence the business to be depos of banking under the said act, until such association shall have deposited with the Comptroller the securities required by law, to the amount of one hundred thousand dollars. See Laws of 1844, ch. 281. Notes to be payable on $ 4. No banking association or individual banker as such demand, shall issue or put in circulation any bill or note of said asso |