total amount of liabilities of the company, of the stockholders thereof, collectively, specifying the gross amount of such liabilities as principal debtors, and the gross amount as endorsers or sureties, which statement shall be forthwith transmitted to the Auditor of State.

Interest to be SEC. 24. Every banking company deriving any of its charged, &c. powers and privileges from this act, may take, reserve, receive, and charge on any loan or discount made, or upon any note or bill of exchange, or other evidence of debt, at the rate of six per centum per annum on the amount of any such note, bill of exchange, or other evidence of debt, so discounted, and no more; provided, however, that interest may be reserved or taken in advance, at the time of making the loan or discount, according to the usual rules of banking, or as calculated in Rowlett's tables; and the knowingly taking, reserving, or charging on any debt or demand payable to such company, of a rate of interest greater than that allowed by this section, shall be held and adjudged a forfeiture of such debt or demand; but the purchase, discount, or sale of a bill of exchange, payable at another place than the place of such purchase, discount, or sale, at the current rate of discount or premium, shall not be considered a taking, reserving, or receiving interest; provided, no agreement or understanding shall be made that the same shall be paid at any other place than that at which it is made payable.

Liabilities to any other

company not to exceed one

third its cir

culation.

Uncurrent

Sec. 25. The total liabilities of any person, or company, or firm, including in the liabilities of a company or firm, the liabilities of the several members thereof, to any banking company herein authorized, inclusive of liabilities as acceptor or acceptors of bona fide bills of exchange, payable out of this State, shall, at no time, exceed one-third, exclusive of liabilities as acceptor or acceptors one-fifth, and exclusive of liabilities on such bills of exchange, one-tenth part of the amount of the notes which such company is authorized to circulate at the time of such liabilities.

SEC. 26. No banking company shall at any time pay out on loans or discounts, or in purchasing of drafts or bills of notes not to be exchange, or in payment of depositers, nor shall it in any paid out. other mode, put in circulation the notes of any bank or banking company, either in or out of this State, which notes shall not at that time be receivable at par, in payment of debts, and by the company so paying out or circulating such notes; nor shall it knowingly pay out or put in circulation, any notes issued by any bank or banking company, which, at the time of such paying out or putting in circulation, is not redeeming its notes in gold and silver, nor any notes issued by any bank out of this State, of a denomination less than five dollars.

Notes, &c., to

SEC. 27. All notes, bills, and other evidences of debt, whom paya- excepting bills of exchange, discounted by any banking ble.j company, shall be made, by the terms thereof, or by special

endorsement, payable solely to such company, and no such evidence of debt shall be assignable, except for collection, or for the following purposes: First-To pay and redeem the circulating notes of such company; Second-To pay other liabilities of the said company; and after such liabilities shall have been discharged, Third-To divide among the shareholders on their stock.

SEC. 28. All transfers of the notes, bonds, bills of ex- What transacchange, and other evidences of debt, owing to any banking tions are void. company, or of deposits to its credit, all assignments or mortgages, or other securities on real estate, or of judgments or decrees in its favor, all deposits of money, bullion, or other valuable thing for its use, or for the use of any of its stockholders or creditors, all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, with a view to prevent the application of its assets in the manner prescribed by this act, or with a view to the preference of one creditor to another, except in payment of its circulating notes, shall be held utterly null and void.

SEC. 29. If the directors of any banking company which Penalty for vishall have availed itself of any of the privileges granted by olation of the this act, shall knowingly violate, or knowingly permit any this act. provisions of of the officers, agents, or servants of such company, to violate any of the provisions of this act, all the rights, privileges, and franchises of said company, derived from this act, shall thereby be forfeited; such violation shall, however, be determined and adjudged by a court of competent jurisdiction, agreeably to the laws of this State, and the practice of such court, before the corporation shall be declared dissolved; and in case of such violation, every director who participated in, or assented to the same, shall be held liable in his personal and individual capacity, for all damages which the company, its shareholders, or any other persons, body politic or corporate, shall have sustained in consequence of such violation.

&c.

SEC. 30. Every President, Director, Cashier, Teller, Clerk, Officers who or Agent, of any banking company, who shall embezzle, ab- are guilty, to stract, or wilfully misapply any of the moneys, funds, or be imprisoned credits of such company, or shall, without authority from the directors, issue or put in circulation any of the notes of such company, or shall put in circulation any bills or notes purporting to be the circulating bills or notes of such bank, other than those delivered to such bank by the Auditor of State, as provided for by this act, either with or without the authority of the directors, or shall, without such authority, issue or put forth any certificate of deposit, draw any order or bill of exchange, make any acceptance, assign any note, bond, draft, bill of exchange, mortgage, judgment, or decree, or shall make any false entry on any book, report or statement of the company, with an intent in either case to injure 6-G. L.

Mutilated

notes to be ex changed and burnt.

Powers of at

torney to be given by Au. ditor.

or defraud such company, or to injure or defraud any other company, body corporate or politic, or any individual person, or to deceive any officer or agent appointed to inspect the affairs of any banking company in the State, shall be guilty of a misdemeanor, and upon conviction thereof, shall be confined in the Penitentiary at hard labor, not less than five nor more than ten years.

SEC. 31. It shall be the duty of the Auditor of State, to receive mutilated circulating notes issued by him to any of such banking companies, and to deliver in place thereof other circulating notes to an equal amount; and the said mutilated notes, after a memorandum shall have been entered in the proper book or books, shall be burned to ashes, by the said Auditor, in the presence of the Secretary of State, and the officer or agent of said company by whom the said notes shall have been delivered to the said Auditor; and a certificate of said burning, signed by said Auditor, shall be made in the books of the register, and a duplicate thereof given to said agent.

SEC. 32. The Auditor of State shall give to any company by whom any stock shall have been deposited according to the provisions of this act, powers of attorney to receive the the interest or dividends thereon, which interest or dividends such company may receive and apply to its own use; but such powers of attorney shall become void upon any such company failing to redeem the circulating notes issued by such company; Provided, however, that whenever the price of any of the stocks pledged for the security or redemption of the circulating notes issued by any such company as aforesaid, shall be at the stock exchange in the city of New York, for four consecutive weeks, at a price or rate less than the value at which such stock shall have been estimated when so deposited and pledged, the Auditor shall receive and retain the interest or dividend on such depreciated stock, so pledged, until the interest so received, when added to the market value of stocks so pledged, to be ascertained as in this section before provided, will be equal in amount to the amount for which such stocks were pledged; and he shall deposit the amount so received with any solvent banking company in this State, at such rate of interest as shall be agreed upon, or, at the option of the company by which such stocks were deposited, invest such interest or dividends in any of the stocks by this act authorized, to be pledged in the name of the Auditor of State, in trust for the banking company by whom the stocks on which such interest or dividends may have accrued, shall have been pledged; and whenever the price of such depreciated stocks, at the New York stock exchange, shall rise to the price at which they were pledged by the company, and so remain for four consecutive weeks, such investment shall be assigned to such company, and all accruing interest on such pledged stock shall thereafter be paid to such company.

hold stocks

SEC. 33. The stocks transferred to the Auditor of State, Auditor to by any banking company, for the security of its circulating for security, notes, shall be held by him exclusively for that purpose, &c. until such notes shall be redeemed, except as hereinafter provided.

banks, how

SEC. 34. If any such banking company shall fail to re- Delinquent deem, in gold and silver coin, any of its circulating notes dealt with. issued in pursuance of the provisions of this act, when payment thereof shall be lawfully demanded, during the usual hours of business, at the office of such company, the holder of such note or notes may cause one or more thereof to be protested by a notary public, who shall, on protesting the same, forthwith forward notice of such protest to the Auditor of State, and after such protest suffered, it shall not be lawful for the company thus suffering protest, to pay out any of its notes, discount any notes or bills, or otherwise engage in the business of banking, except to receive and safely keep moneys belonging to it, and deliver special deposits; and where the holder of such notes shall cause more than one to be protested on the same day, he shall not receive pay for more than one such protest.

SEC. 35. In case any such banking company shall fail to The same sub pay and redeem its circulating notes on demand, in gold or ject. silver coin, as specified in the next preceding section of this act, the Auditor of State shall, within twenty days after he shall have received notice of such failure, caused the stocks pledged by such company, or so much thereof as may be necessary to redeem the outstanding circulating notes of such company, to be sold either at the stock exchange in the city of New York, after giving notice of such sale to such company, and also advertising the time and place of sale, with a pertinent description of the stocks to be offered for sale, in two or more newspapers published in the city of New York, and in general circulation, for not less than ten consecutive days before the day of sale; or at the office of the Auditor of State, in the city of Columbus, giving notice to said company, and also advertising in one or more newspapers, published and in general circulation in the city of Columbus, and one or more newspapers in general circulation in the county where the office of such failing company is situated, which advertisements shall contain the same particulars as are required herein, where sales are to be made in the city of New York; and out of the proceeds of such sale, the auditor shall pay, on the circulating notes of such bank, as the same may be presented, a ratable proportion of the proceeds of such sale, not exceeding the amount due on said notes; and due notice shall be given by the Auditor, that said notes will be paid at the office of the Auditor of State; Provided, that if any of the circulating notes of such failing company shall not be presented for redemption at the office of the Auditor of State, until after the term of two years from the date of the first publication of the notice to the holders of such notes, to present the same at said Auditor's office, the Auditor may

he same.

pay ratably, to the holders of the notes previously presented, if such notes have not been previously paid in full, whatever of the proceeds of such sale, remaining in his hands, may be needed to fully discharge such notes so presented. Whenever default shall be made in the payment of the circulating notes of any banking company, established under the provisions of this act, every stockholder shall, for such notes, be individually liable, in proportion to the stock held by such stockholder in such bank, to the extent and to the full amount of the respective shares of stock owned in such bank by such stockholder. Where a bank is owned by less than six stockholders, they shall be individually liable, as natural persons, for all debts and liabilities of such bank.

SEC. 36. The Auditor of State may, if he shall deem that the interests of the note holders of any insolvent banking company will be best promoted thereby, with the advice of the Treasurer and Secretary of State, hypothecate, or sell at private sale, any of the stocks transferred to and deposited with him by such company, to any other banking company, or to any individual person or firm, and receive therefor either money or the circulating notes of such failing company; Provided, that no such stock shall be sold, at private sale, at less than the par value thereof, nor at less than its selling price at the New York Stock Exchange, at the date of the last received information; nor shall any such stock be sold on credit.

SEC. 37. On receiving notice that any such banking compecial agent pany shall have committed an act of insolvency, as hereinbe appoint- before defined, the Treasurer of State, the Secretary of State,

d, &c.

and the Auditor of State, or a majority of them, shall appoint a special agent, who shall immediately proceed to ascertain whether such company has refused to pay its notes in gold and silver coin, when lawfully demanded, and report to the said Treasurer, Secretary and Auditor, the facts so ascertained; and if, from the report so made, said Treasurer, Secretary and Auditor, or a majority of them, shall be satisfied that such company has suspended the payment of its circulating notes, when lawfully demanded, in gold and silver coin, they shall forthwith appoint a receiver or receivers, and require of him or them such bond and surety as they shall deem proper, who shall proceed to take possession of the books, records and assets of every description of such company; collect all debts, dues and other claims belonging to such company; settle with the approbation of an agent, to be appointed by the stockholders for the protection of their interests, compound for all bad and doubtful debts; sell all real and personal property of said company, and to pay over all moneys so made to the Auditor of State; and the Auditor of State shall cause notice to be given, by advertisement, in one or more newspapers, published in the city of Columbus, and also in one or more newspapers in general circulation in the county where the office of such insol