Brookville Inquirer, Volume 1, Number 9, Brookville, Franklin County, 1 March 1833 — Page 1

ryy. II III l'"1

BROOKVI1LL.E INQUIR

El.

1 Vol. I.

BROOKVILLE, (IA.) FRIDAY, MARCH 1, 1833.

No. 9.

PRINTED ASD PUBLISHED WEEKLY BT C. AV. IRTCHEV,

At i'2 in advance $2,50 in six months; or $3,00 at

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BANK BILL OF THE SENATE.

In pomDliance with a promise we publish the fol

lowing. This Bill was reported to the71 Senate by Messrs. Graham, Whitcomb, and Ewing. Next week we intend giving the Bill of the House, "as amended in the Senate." BANK BILL. A BILL for the establishment of a State Bank.

Sec. I. Be it enacted by the General Atsembly of 1

the State of Indiana, 1 hat there shall be and hereby is authorized and established a Bank, to be known and styled, "The Bank of the State of Indian.V'to be located at Indianapolis, with power an! authority in the first Directors of said Bank to locate and establish five branches thereof in the manner herein provided. Sec. 2. The capital stock of said State Bank and Branches shall be one million six hundred thousand dollars, in shares of fifty dollars each, one half thereof to be taken by the State, and the other half by individuals or corporations. Sec. 3. There shall be appointed annually by the Legislature seven Directors and a Cashier, for the parent Bank; and six Directors for the parent Bank and seven for each Branch, shall be elected annually by the Stockholders of the same. The Directors on the part of the State shall appoint six Directors for each Branch, and and the Directors of each Branch shall appoint their President and Cashier, and those of the parent Bank their President. Sec. 4. The Directors elected by this Legis-

after giving thirty davs notice in such

be govorned as such, and the bank at Indianap- ! 1 11 1 1 ... - .1

oiis snaii Decome a Drancn thereto, and may be regulated accordingly. ; Sec. 10. Certificates of stock shall be issued to stockholders, signed by the President and Cashier, and be assignable by endorsement under

the restrictions herein provided; or such certifi

cate may be surrendered and a new cerificate

obtained in the name of the proper owner, sign

ed in use, manner, and in case of transfer, the

directors mav release the mortp-ao-p held for snrh

stock and take other property in like manner

and under like restrictions therefor, in no cage

however lessening the security. Stock shall like wise be subject to execution and sale as oth

er personal property, and shall be transferred to

the purchaser on the books of the bank on the certificate of the officer selling such stock, but in

all cases it shall be subject to a line in favor of

the corporation for all debts bona Jide due the same from the owner thereof. Set. 11. Said stock shall be transferable on

the books of the corporation, except in case of

stock sold oh execution, only by the owner or his agent or attorny, or by the executors, administrator, trustee or guardian, and shall be attested by the President or cashier; which books

shall at all reasonable times during the hours of

transacting business be kept open for the exam

ination of any interested therein. And in case any officer having charge of such book shall refuse to permit the same to be examined as aforesaid, he shall for every such offence forfeit and pay the sum of fifty dollars to be recovered by the person to whom such refusal shall have been

made. Sec. 12. It shall not be lawful for said bank

or branches to take a hypothecation of any stock of said bank or branches as security for any loan

or uiscoum maae oy sucn corporation, and no

person shall be accommodated with a loan while

lature alter giving tnirty aavs notice in

newspapers as they may select, shall cause books in arrears for stock or for discounts, had either u., 1 r.. 4-1. -..i :.: r .1 1 . 1 . . . 7

to be opened lor the subscription ol stock

such places as they may deem expedient under the direction of suitable persons; 6aid books to ke kept open between the hours of nine and twelve o'clock, A. M. of each day, for thirty

davs

J

Sec.

o.

The amount of stock subscribed at

each place shall be reported by the Directors, and if the sum of eighty thousand dollars shall be subscribed at any once place, they shall appoint two of their number to enquire whether said stock has been subscribed in good faith, and also to examine the security offered by the subscribers under the provisions of this law for the pavment of their stock, and if by them deemed sufficient, to make report to the said Directors, at least five of whom shall attend, and four shall concur in selecting the sites of the several Branches, to be established on complying with the terms of this act.

Sec. 6. If on closing the books at anyone of

said places, it shall be found that more than eighty thousand dollars has been subscribed to the parent bank, or any other branch thereof, the excess shall be taken first from such as fail to give the required securities, next from such as reside without the State, then from corporations, and should there still be any excess, the same shall be taken in proportion of the subscriptions over five hundred dollars, until the whole amount shall not exceed eighty thousand dollars. Sec. 7. When any place may be selected as

the site of a Branch, the Directors herein autho

rised to be elected shall give notice to the sub

scribcrs to pay, in specie, upon their stock, three-eiehts of the amount subscribed, and to

secure the residue by note 'or mortgage on real

estate, situated within the State, equal in value without perishable improvements, to the full

amount of stock held by such subscriber without deduction for the payment made; and also to give personal security therefor, to exist and be in force until the Directors shall be satisfied that

the title to such real estate is good and sufficient,

the residue of the stock unpaid shall be paid by the stockholders respectively in ten equal semi

annual instalments, and on failure to pay any of

the said instalments suit may be brought on the

notes given thcr.for,and judgment for the residue of stock unpaid recovered, with eight per cent, damages. Also the mortgage given to secure the payment of the same may be foreclosed, and

he mortgaged premises sold as in other cases.

oec. o. .As soon as the above provisions are complied with, and the stock shall be paid and secured as aforesaid, the directors appointed by the Legislature as herein directed, shall sub

scribe on the part of the State for an amount of

-ock equal to that so :.aken and secured by individuals and corporations, and shall appoint six directors on the part of the State for such branch,

and shall order an election by the stockholders of

ihe same lor seven other directors, who shall continue in office until the first of January following, which directors when so elected and" appointed, shfill meet at their respective branches at such time as the said directors of the State Bank shall designate, and after being sworn as herein after directed, receive the books, papers, monies, and effects belonging to their respective institutions, giving duplicate receipts, one of which shall be tiled with the Treasurer of State. Sec. 9. If it shall be found on closiog the sub

scription books, that the requisite sum has not been subscribed at Indianopolis, the said directors shall establish the parent bank at some other place where the requisite sum has been sub

scribed, and if the parent bank be established at Indianapolis, it mav be changed and e.stahlised

elsewhere" for any violation of charter, or for any

cause that would authorize any of ,he branches

w oe suspended or declared insolvent as herein Ucr provided, in which rase the hranrh then

elected as the parent Bank, shall in all respects

on his own account, or as indorser, nor shall any

paper of any one pass in bank unless he, she or they pay up arrears to the Bank out of the sum

asked or loaned.

Sec. 13. Said State Bank and Branches when

located and organized, to be a bodv coroorate

and politic, with power to sue and be sued, plead and be impleaded, in any court of law or equity

having jurisdiction, and to transact all lawful business herein permitted them to do: but whenever any liability shall be incurred "by one of the said branches, and suit is necessary to be commenced therefor, service of process shall be made on the President and Cashier of such

Branch, and on final judgment rendered, if such branch shall fail to satisfy the same within ten

days, shall be the duty of the President and Directors appointed by the Legislature as herein, to close such branch, or the parent Bank, as the

case may be, and have the same settled up as insolvent in the manner hereinafter provided: and all balances that cannot be paid by the effects of such branch, shall be a lien on the State

Bank and Branches, and when ascertained, shall

be by them immediately paid. Sec. 14. The said bank and branches when

organized as aforesaid, shall have power to carry on the business of banking, by discounting bills, notes and other evidences of debt, by receiving deposites, by buying and selling gold, silver, bul

lion, foreign coins, and foreign and domestic bills of exchange, by issuing bills, aud other evidences of debt, and by exercising such other incidental powers as shall be necessary to carry on such business. Sec. 15. The real estate which it shall be lawful for such bank to purchese, hold and convey, shall be 1st such as shall be required for its immediate accommodation in the convenient transaction of its business, or 2d such as shall be mortgaged to it in good faith by way of security for stock, loans previously contracted, or for monies due; or 3d such as shall have been conveyed to it in satisfaction for debts previously contrac

ted in the course of its dealings, or 4th such as

shall have been purchased at sales upon judgments, decrees, or mortgages, obtained or made

for such debts, and the said bank or branches

shall not purchase, hold or enjoy real estate in any other case, or for any other purpose. And all such real estate not absolutely necessary for

the convenient discharge of its business shall be

set up at least once a year at public sale, and

shall be sold if the same will bring the amount

of the debt, interests and costs for which the same may have been bought, received, or taken by the Bank.

Sec. 16. In the renewal of notes or other

claims in favor of the Bank, the security shall

never be lessened.

Sec. 17. If any Branch shall he found unpro

fitable or injurious, it shall be lawful lor the President and Directors of the State Bank to

discontinue such branch, and bring its affairs

to a close by liquidating the demands against such branch, and making such disposition of the funds as the interest uf the State and the stockholders may require. Sec. 18. The Bank and Branches shall respectively redeem with specie, if demanded, when presented within the usual banking hours, anv or such notes issued by such Bank or branch,

and a failure so to do shall entitle the holder of

the notes, which shall have been so paid, to 12 per cent, per annum until payment is made. All deposites shall be paid in current money, or in money eaual in value to that deposited at the

time the deposit was made, except in cases of i i 1. -I 11 1 . .1 - . 1 .

special aeposir, wmcn snaii ue paia accurumg to contract. A failure or refusal to pay, in either case when requested thereto in banking hours shall subject the Bank or Branches to twelve

and a half per cent, on such deposits and inter

est until paid

Sec. 19. There shall be no stay of execution on jadments against the Bank, or a Branch thereof, for notes issued, or deposites made therein. Sec. 20. There shall be no stay of execution on judgments against attorneys, or other collectors or agents, holding money or property belong

ing to me name, or a liranch, and there shall be no property exempt from execution in such cases. ; Sec. 21. The Bank, and each Branch, after

paying expenses, and reserving a contingent fund, shall make semi-annual dividends among il .1111 C

tne stocKnoiderol such Bank or Branch, according to the profits of each respectively, and the dividend accruing to the stockholders to be carried to the credit of their stock until the same is

paid up, after whkh it shall be paid over to the

stocknoiders. Sec. 22. The Cashier of the parent Bank may be removed by the Directors for misconduct, and

they shall appoint some suitable person in his

place until another is elected by the Legisla

ture. The Cashiers of the Branches shall be appointed by their respective boards of Directors. And each Cashier shall give bond with freehold securities, in the sum of sixtv thousand

dollars, to the satisfaction of the Directors of the parent Bank.

Sec. 23. Said Bank and Branches shall

charge and receive no higher rate of infrpt

than six per centum per annum, but the same may according to Bank rules, be discounted and

taken in advance out of the sums loaned.

Sec. 21. The notes issued by the Bank and

branches, shall be signed by the President and Cashier of the parent Bank, and shall be Dava-

I 1 . . M . 1 .

me to tne order ol the Cashier or President of i

the Bank or branch at which it is made payable. All the notes shall be of the same plates until otherwise directed by'-the Legislature, and no note of a less denomination than five dollars shall be issued. "Sec. 25. Each stockholder may at any time pay up his stock, and discharge the mortgage on his real estate.

Sec. 2G. The books of said bank and branches

shall be open during all business hours, for the inspection of the stockholders.

Sec. 27. That no stockholder shall be enti

tled to vote for Directors, either in person or byproxy, who shall not be a citizen of this state,

and, after the first election, who shall not have

held his stock for which he votes for three calender months previous to the day of election ; and the number of votes to which stockhold

ers shall be entitled jn voting lor Directors, shall be according to the number of shares he, she, or they shall respectively hold, in the pro

portion tallowing: that is to say, lor each and every share not exceeding four shares, one vote; for every two shares above four shares and not exceeding thirty, one vote: and for every four shares above thirty and not exceeding ninety, one vote; and for every six shares above ninety and not exceeding one hundred and fifty, one vote; and for every ten shares above one hund

red and fifty. But no person, copartnership or

corporation, shall be entitled to a greater num

ber than one hundred votes. In all elections

votes may be given either in person or by proxy,

but no person shall vote by proxy more than five hundred votes; and no individual stockholder who shall be a resident of the county where the election is to be held at the time of such election, shall vote by proxy unless in case of unavoidable absence except females or minors. Sec. 28. That any stockholder owning ten shares in his own right, and not in trust, and being a citizen of the State of Indiana, may be elected Directors by the Stockholders, unless such person shall, at the time of such election, be in arrears to such bank or branches, or any instalment due on his stock, or for any debt or demand due said hank or branch, either on his own account or as endorser or security for others, and if during his term of office any Director shall so become in arrears, or fail in business, remove from the state or cease to own ten shares of stock, it shall be the duty of the Board of Directors forthwith to vacate his seat, and appoint another in his place, and the act of so vacating his seat shall be conclusive evidence of the justice and necessity of so doing. Provided, That no person shall be a Director in the parent Bank and a Branch, or in more than one Branch at the same time; nor shall two partners be atthe same time Directors of the same bank or branch. And, provided, that the qualification of being a Stockholder, shall not be requiste for the Directors, elected or appointed on behalf of the State, for said Bank or branches.

Sec. 21. Before entering upon the duties of

his office, each Director and Cashier shall, before some person authorized to administer oaths, be o-inlified to the faithful, impartial and diligent

discharge of his daty as Director or Cashier, as the rase mav be,) which oath, and the certificate

thereof, shall be entered on the minute book of

such Bank or liranch. 1 he nrst uirectors snaii hold their offices until the 1st of January next, and all Directors thereafter shall be elected annually and hold their offices until their successors are chosen and qualified. Sec. 30. No Director chosen by the General Assembly as aforesaid shall be elected 'more

than twice in three years, and no Director shall receive compensation for his ordinary services in

Bank, except the President.

Sop. 31. Mnr W tlmn fticrht Directors, of

whom the President shall be one, shall constitute thA trnnsarHnn nf business: Provi

ded, That in case of the sickness or necessary absence of the President, his place may be supplied for the time being, by any other Pirector whom the Board may think proper.

Sec. 32. The President and Directors shall appoint all officers not otherwise provided for, and fix the compensation for services to be rendered. Sec. 33. The Directors for the time being shall have power to make and prescribe such by laws, rules and regulations as they shall deem needful, touching 1st the government of their re

spective institutions, and the management and disposition of its stock, business, propertv, state.

tna eiiects. a, tne time, manner and term at and upon which discounts and deposits shall be made and received in and by the same. 3d, the duties and the conduct of the officers, clerks, and servants employed by the same; and 4th, all such matters as may appertain to the concerns of said institution, Provided, that they shall not be authorized to expend more than four thousand dollars, for lots, and appropriate buildings to accommodate their business at any one place. Sec. 34. The President and Directors appointed herein by the Legislature, shall make such rules, regulations and restrictions for the government of the Bank and Branches as they shall deem expedient. They shall depute one of their body at least once a year ;o inspect the situation of the Bank and branches, and examine carefully whether they have violated any part of this charter, and whether the business of the branches is safely and fairly conducted: and they may at any lime remove any of the Branch Directors appointed on behalf of the state, and

substitute others, and they may direct the suspension of loans and discounts whenever the sit

uation of the Bank or a Branch shall require it,

and if the parent Bank, or any Branch, shall be unable to pay its liabilities, they may immedi

ately close the same and appoint a receiver to collect and dispose of its effects as speedily as possible, and pay off" all demand against it; and

if a balance remain in favor of said Branch, it

shall be divided amongst the stockholders there

of according to the amounts respectively paid,

and it there be not sutlicient etlects to pay tne liabilities of such Branch, the said Directors shall apportion the amount to be paid by the parent Bank and Branches, and the same shall be paid

immediately.

Sec. 35. The Cashiers of the several branches

shall make monthly reports to the Directors of

the parent Bank, setting forth a full statement

of their business, situation and condition, fn the

manner prescribed on the part of the State Directors oaths verified bv the oaths of the Cashier,

and an exhibit of such returns, and also of the condition of the parent bank, shall be made

monthly, by its Cashier, to the several branches,

and all these returns shall be annually submitted to a committee of the Legislature: and an

abstract thereof, sworn to by the President and

Cashier of the Parent Bank, shall be submitted

to the General Assembly the first week of the

session

Sec. 30. The President, Driectors, and Cash

ier for the time being shall be permitted to en

dorse for each other nor shall they vote on ques

tions in which they are interested.

Sec. 37. In acting upon every application for

a loan or discount, not less than seven Directors,

with the President, shall be present, and to grant the same, three-fourths of the voices present shall

concur, and so in proportion to the number: and

the ayes and noes' shall at the time be entered

on record by the Cashier on the minutes of the

Board, and whenever any Board of Directors

shall cause the issuing of any paper, or incurring of any debt or responsibility on behalf of the

Bank, or any liranch, as the case may be, which the said Bank or Branch shall not be able to pay

and discharge, such President and Directors, shall be liable jointly and severally for the same in their private capacties, and an action of debt may in such case be brought against them or any of them, their, or any ol their heirs, executors or administrators, in anvr court of record by

any creditor or creditors of such corporation, or

by the corporation itself, or any stockholder thereof, and may be prosecuted to judgment and

execution, any condition, covenant, or agree

ment to the contrary notwithstanding. Such

of said Directors as were absent when said debt

or responsibility was contracted, or who dissented from the resolution or act, whereby the same was contracted, or created, may respectively exonerate themselves from being so liable by giving notice of the fact when informed thereof, and of their absence and dissent forthwith to the President of the State Bank, whose duty it shall be to cause the same to be recorded. Sec. 38. The stock of said Bank and Branches shall not be taxed. Sec. 39. No sale or forfeiture for taxes accru

ing on any land previously mortgaged to said

Bank, shall operate to prevent the lianK tcom redeeming the same on payment of taxes, cost and legal interest, if said land shall become the property of the Bank. Sec. 40. For the purpose of providing funds on the part of the state to pay her subscription to the Bank and Branches herein contemplated, the Canal Fund Commissioners are hereby authorized and appointed, under the discretion cf the State Directors, in the fourth section of the act mentioned, Agents to contract a loan on the part of this State of eight hundred thousand dollars, or so much thereof as may be required for the purposes in this act contemplated, at a rate of interest not exceeding five per cent, per annum, redeemable after twenty-five, and within thirty years, at the pleasure of the State, is hereby irrevocably pledged, and to issue bonds oavable to order or bearer, signed by the Presi

dent of the State Bank, and countersigned by the Secretary of State, whose duty it should be to attest the same, and affix the seal of th State thereto. . Said bonds to be so negotiated a$'not