ÆäÀÌÁö À̹ÌÁö
PDF
ePub

CHAPTER 1.

GENERAL BANKING STATUTE.

§ 1. Laws applicable.-Banks of issue or of discount and deposit, whether heretofore formed under the laws in force at the time of their formation, or hereafter formed under the provisions of this chapter, shall be subject to the provisions of this chapter, and of chapters fifty-two and fifty-three of the code, so far as the same are applicable and not inconsistent with the following sections of this chapter. (Code 1916, c. 54.)

§ 2. Capital stock. The capital stock of every banking company, formed under the provisions of this chapter, shall not be less than twenty-five thousand dollars ($25,000), nor more than five hundred thousand dollars ($500,000). Said stock shall be divided into shares of the par value of one hundred dollars ($100.00) each; such shares shall be deemed personal property and transferable on the books of the association in such manner as may be prescribed in the by-laws of the association, and every person becoming a share-holder, by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities of the prior holder of such shares. (Code 1916, c. 54.)

§ 3. Powers of banks; necessity of incorporation; holding of real estate. Every such bank may exercise, under the laws of this state, all such incidental powers as may be necessary to carry on the business of banking, by discounting promissory notes, negotiating drafts, bills of exchange and other evidences of indebtedness, receiving deposits, buying and selling exchange, bank notes, bullion or coin, and by loaning money on personal or other security. It shall be unlawful for any individual or association of individuals doing business in this state to use in connection with such business the term "bank," "banker," "“bank→ ing company," or "trust company," or receive deposits, or sell foreign exchange, until they shall have taken out a charter, and complied with the statutes governing banks and trust companies. Hereafter no charter shall be issued to any bank to do business in this state until the application therefor has been approved in writing by the commissioner of banking; and no real estate shall

[5]

be carried upon the books of any bank at a value greater than the assessed value as shown by the land books of the county wherein such real estate is assessed. No bank shall hold or con

vey real estate except for the following purposes: 1. Such as shall be necessary for its immediate accommodation in the transaction of its business. 2. Such as shall be mortgaged to it in good faith by way of security for debts contracted. 3. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. 4. Such as it shall purchase at sales under judgments, decrees, deeds of trust or mortgages held by the association, or shall purchase to secure debts due to it, which it shall dispose of at the earliest practicable date. ny person violating the provisions of this section shall be deemed guilty of a misdemeanor, and on conviction thereof shall be fined not less than five hundred dollars nor more than one thousand dollars, or be confined in the county jail for a period not exceeding six months, or both, at the discretion of the court, for each and every offense. (Code 1916, c. 54.)

§ 4. Increase or reduction of stock.-Any banking company heretofore formed or which may be hereafter formed under the provisions of this chapter, at any general, adjourned or special meeting of the stockholders thereof, may by resolution make such increase or reduction of the capital stock thereof as may be decided upon by said stockholders, a majority of the stock of such company being represented at such meeting by the holders thereof, and such holders being present in person, or by proxy, and voting for such increase or reduction; provided, that no increase or reduction shall conflict with the limitation prescribed in section seventy-seven of this chapter, and that a notice over the signature of the president of said banking company, of the intention to offer such resolution, shall be sent through the United States mail to each stockholders ten days previous to such meeting; or that notice of such intention be given by advertisement published once a week for two successive weeks in some newspaper of general circulation in this state; or for ten days in some daily paper of like circulation printed in this state. When such increase or reduction shall have been made by any banking company, the president thereof shall, under his signature and the seal of such bank, certify the resolution increasing or reducing the capital stock, to the secretary of state; and the secretary of

state, under his hand and the great seal of the state, shall issue to such bank a certificate reciting such resolution and declaring such increase or reduction to be authorized by law, and such certificate shall be prima facie evidence of such increase or reduction and of the authority to make the same in all courts of law. (Code 1916, c. 54.)

§ 5. Payment of stock.-At least fifty per centum of the capital stock of every banking institution, organized under the provisions of this chapter, shall be paid in before it shall be authorized to transact any business, éxcept such business as is incidental and necesarily preliminary to its organization. And the remaining fifty per centum of the capital stock shall be paid in full within the next succeeding ten months in monthly installments of at least ten per centum of the remaining fifty per centum of said capital stock. And in no case shall a bank or banking institution commence public business until it shall have received the certificate of authority from the commissioner of banking, as provided in section 29 of this chapter. (Code 1916, c. 54.)

§ 6. Personal liability of stockholders. The stockholders of every bank heretofore organized or that may hereafter be organized, under the provisions of this chapter, shall be personally liable to the creditors thereof over and above the amount of stock held by them respectively to an amount equal to their respective shares so held for all liabilities accruing while they are such stockholders. (Code 1916, c. 54.)

§ 7. Directors; examining committee. For every bank subject to the provisions of this chapter, there shall be a board of directors who shall have power to do, or cause to be done, all things that are proper to be done by the bank. Every director must own in his own right at least five shares of the capital stock of the bank of which he is a director, and before entering on his duties as such director he shall take an oath that he will, so far as the duty devolves upon him, diligently and honestly administer the affairs of the bank, and that he will not knowingly and willingly permit to be violated any of the provisions of the laws of this state relative to banking, and that the stock standing in his name upon the books of the bank is not hypothecated in any way to or pledged as security for loans obtained from or debts owing to the bank in which he is a director, and that the

five shares necessary to qualify a stockholder as a director shall not be in anywise hypothecated, which oath, subscribed by himself and certified by the officer before whom it was taken, shall be filed and carefully preserved in the office of the commissioner of banking. Should a director at any time after his qualification as such, sell or dispose of, or in any way or manner hypothecate or pledge as security for loans obtained or debts owing, the said five shares, or any part thereof, necessary for his qualification, then his office as director shall immediately become vacant, and the remaining directors shall declare his office vacant and proceed to fill such vacancy forthwith. The stockholders of each bank shall annually appoint an examining committee, whose duty it shall be to examine the condition of the bank at least once

every six months. The examining committee shall report to the board of directors giving in detail all items included in the assets of the bank, which they have reason to believe are not of the value at which they appear on the books and records of the bank, and giving the value of each of such items as in their judgment they may have determined. The board shall cause said report to be recorded in the minute books of the bank, and a duly authenticated copy thereof transmitted to the commissioner of banking. Should the stockholders fail to appoint such committee, or should such committee fail to promptly make its report, then the commissioner of banking shall have the power, at his option, to appoint a committee to make such examination, and report. (Code 1916, c. 54.)

§ 8. Loans by bank on or purchase of its own stock. No bank shall make any loan or discount on the security of the shares of its own capital stock nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and all stock purchased or acquired in such manner shall, within six months from the time of purchase, be sold or disposed of at public or private sale. (Code 1916, c. 54.)

§ 9. Limit on loans to one person or company.-The total liabilities to any bank or trust company of any person, or of any company, corporation or firm, for money borrowed, including the liabilities of the company or firm, the liabilities of the several members thereof, shall at no time exceed twenty per centum of the capital stock, plus the surplus fund and undivided profits.

« ÀÌÀü°è¼Ó »