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Auditor shall have engraved Rotes.
The expenses charged to parties doing business,
What denominations shall be issued.
AN ACT to authorize the business of Banking.
SECTION 1. That it is hereby made the duty of the Auditor of State, on application of any person or association of persons wishing to organize under this act, to cause to be engraved and printed, in the best manner io guard against counterfeiting, such quantity of circulating notes, in the similitude of bank notes, in blank, of the different denominations hereinafter authorized to be issued, as may, from time to time, be needed to meet the demands of those organizations for the purpose of banking; and all necessary expenses in procuring such circulating notes, in blank, shall be charged to, and paid, by the banker or banking association, at whose solicitation and for which the same are furnished.
SEC. 2. Such bank notes, in blank, so procured as aforesaid, shall be of the denominations usually issued by banks, from one dollar to one hundred dollars, but such notes shall not be of any intermediate denomination between one and two, two and three, three and five, five and ten dollars, ten and twenty, twenty and fifty or fifty and one hundred dollars.
Sec. 3. Such blank circulating notes shall be countersigned by such Auditor of State, and numbered and registered in proper books, to be kept for that purpose, in his office and under his direction, by the Auditor himself or such person or persons as the Auditor shall appoint, so that each denomination of such circulating notes shall be of the same similitude and all bear the uniform signature of such Auditor of State and Register.
Sec. 4. Whenever any person or association of persons, formed for the purpose of banking under the provisions of this act, shall duly assign or transfer, in trust, to the Auditor of this State, any portion of the public stocks issued, or to be issued, by the United States, or the stocks of the State of Kansas, said stocks to be valued at a rate to be estimated and governed by the average rate at which such stocks are sold in the city of New York, at the time when such stocks may be left on deposit with the Auditor of Statė, such person or association of persons shall be entitled to receive from the Auditor an amount of such circulating notes
Bank notes coun tersigned by Auditor.
Bankers shall de posit stocks of State or U.S.
If stocks depreci
shall be reduced.
of different denominations, registered and countersigned, equal to and not exceeding the amount of public stocks assigned and transferred as aforesaid ; but such public stocks shall, in all cases, be, or be made to be, equal to a stock producing six per cent. per annum, and it shall not be lawful for the Auditor of State to take such stock above its par value, nor above its current market value in the city of New York, on the stock exchange, at the time of deposit by such person or association of persons. If at any time the stocks assigned and transferred to the Auditor of ate circulation State for circulating notes, or any part thereof, shall depreciate in value in the New York market, the Auditor of State shall reduce the rate at which the same shall be continued to be held as securities, and require such banking association or banker owning such stocks, to make up the deficiency with such additional stocks, as required by this act, to be transferred and assigned as aforesaid, or such banking association or banker may make good such deficiency by returning to the Auditor of State such amount of bank bills, previously issued to him or them, as shall be equal to the deficiency of securities created or caused by the depreciation of said stocks held as security as aforesaid; Provided, That if, in the opinion of the Auditor and Governor, any stocks offered not received. shall be deemed insecure, they shall not be received as such securities under the provisiors of this act.
Sec. 5. Before any bank shall receive from the Auditor of Before receivlas State any circulating notes, as provided in section four of this cou shall give act, the stockholders thereof shall give to the Auditor of State good and sufficient bonds, to be approved by him, to the amount of one-fourth of the notes that said bank shall receive, and the stockholders thereof shall file, with the Auditor, a certificate, to be attested by the oaths of the president and cashier of such banking association, that ten per cent. of the capital stock of Ten per cent shall such bank is paid in specie and on deposit, and shall remain in the vaults of said bank as an additional security to indemnify the bill holders against any loss that may be sustained, in case the other securities deposited with the Auditor of State shall be insufficient to redeem said bills.
Sec. 6. The bills and notes so to be countersigned and regis- Secured by tered, the payment of which shall be secured by the transfer of stocks hall the public stocks, shall have engraved upon their face the words: “Secured by pledge of public stocks,” and the place where the same were issued. SEC. 7. The Auditor may give, to any person or association of
All banking pro. perty shall pay taxes.
Anditor may give persons, so transferring securities in pursuance of the provisions
of this act, power of attorney to receive interest or dividends thereon, which said interest or dividend such person or association of persons may receive and apply to their own use; but such power may be revoked, upon such person or association of persons failing to redeem the banking notes so issued, and the Auditor of State, upon application of the owners of such transferred securities in trust, may, in his discretion, change or transfer the same for other securities of the kind specified before in this act, or may transfer the said securities, or any part thereof, upon receiving and canceling an equal amount of such circulating notes delivered to bim by such person or association of persons, in such manner that the circulating notes shall always be secured in full, as in this act provided.
SEC. 8. The notes and bills discounted or purchased, moneys loaned, and all other property, effects or dues, of every description, of all banks or banking associations, organized under the provisions of this act, shall be assessed and taxed in the city, ward, village or town where the same is located, for all State, county, town, school and corporation purposes, in the name of [such] bank or banking association, to the same extent and, under the revenue laws, the same as the property of individuals.
Sec. 9. Any person or association of persons may establish thousand dollars offices of discount, deposit and circulation, and become incorpo
rated upon the terms and conditions, and subject to the liabilities prescribed in this act; but the aggregate of the capital stock of such establishment shall not be less than twenty-five thousand dollars; Provided, That no such office shall be established in any town containing less than two hundred inhabitants.
Sec. 10. Such persons or association of persons, under their hands and seals, shall make a certifcate which shall specify, first, the name assumed to distinguish the bank to be established pursuant to this act, and to be used in all its dealings, which name shall not be that of any other bank in this State; second, the place where the business of discount or deposit of such bank is to be carried on, designating the particular city, town or village and county ; third, the amount of capital stock of such bank, and the number of shares into which the same shall be divided; fourth, the name and place of residence of the shareholder or shareholders in such bank, and the number of shares held by them respectively; fifth, the period at which such bank shall commence, which certificate shall be acknowledged and
No bank shall go into operation under a twenty-five
What they shall certify to who intend doing banking.
recorded in the office of the register of deeds of the county where the office of such bank may be established, and a copy thereof shall be filed in the office of the Auditor of State ; and, upon the recording of such certificate the person or persons aforesaid shall become a body politic and corporate, by the name assumed as aforesaid, and by such name shall have power to contract and be contracted with, sue and be sued, and shall have all other powers, privileges and immunities incident to corporations and applicable to the end of such establishments, subject to the provisions and restrictions of this act.
Sec. 11. A copy of the certificate required by the next prece- Copy of certificate ding sections, duly certified by the register of deeds of the forest against county, or by the Auditor of State, may be used as evidence in all courts for or against such bank or any person or persons for or against whom any such evidence may be necessary, whether on civil or criminal trial.
Sec. 12. Such person or association of persons shall have powers of banke power to carry on the business of banking, by discounting bills, notes and other evidences of debt, by receiving deposits, by buying and selling gold and silver bullion, foreign coin and foreign and inland bills of exchange, by loaning money on real or personal securities, and by exercising such incidental powers as may be necessary to carry on such business ; may choose one of their number as president, and appoint a cashier and such other offi cers as their business may require, and to remove such president, cashier, officers and agents at pleasure, and to appoint others in their places; but no such association or banker shall commence the business of banking under this act, until such association or banker shall have deposited with the Auditor of State the securities required by this act.
Sec. 13. The shares in such bank shall be deemed personal property, and shall be transferable on the books of the bank in such manner as may be agreed upon in the articles organizing such bank, and every person becoming a stockholder therein, shall, in proportion to his interest, succeed to all the rights and be subject to all the liabilities of prior shareholder or shareholders ; no change shall be made in the articles organizing such bank, whereby the rights, remerlies or securities of existing creditors shall be in any manner impaired, and any association constituting such bank shall not be dissolved by the death or insanity of any one of the shareholders therein.
Sec. 14. If the maker or makers of any such circulating note
Shares deemed personal property Notes not redeemed may be protested.
or notes, countei signe l and registered as aforesaid, shall, at any time hereafter, on lawful demand, during the usual hours of business, at the place where such note or notes is or are made payable, fail or refuse to redecin such note or notes, in the lawful money of the United States, the holders of such note or notes making such demand may cause the same to be protested, for non-payment, by a notary public under his official seal ; but the maker or makers of such nore or notes shall not be liable for the expense of so protesting the same, unless, on such demand and refusal so to redeem the same, he or they shall refuse to waive protest and notice of protest thereon, and such waiver of protest shall, in all cases, be deemed equivalent to the regular protest thereof; and such notary shall, on protesting the same, forthwith forward notice of such protest to the Auditor of State; the notary making such protest shall certify in his notice of protest the number of notes on which said payment was refused, and describe them by their numbers and letters, and shall also certify to the aggregate amount of said notes; the Auditor of State on receiving and filing in his office such protest, together with such note or notes as aforesaid, shall forth with give notice, in writing, to the maker or makers of such note or notes to pay the
same; and, if they shali omit to do so for twenty days after such dadi gidi tootice. notice, the Auditor shail immediately thereupon, unless he shall
be satisfied there is a good and legal defense against the payment of such note or notes, give notice that all the circulating notes of such person or association of persons, and countersigned and registered as aforesaid, will be redeemed out of the trust funds in his hands for that purpose, which notice shall be given by publishing the same in some newspaper printed in the county where the business of such bank is established, and in some newspaper printed at the seat of government of this State ; and the Auditor of State shall be required to apply the said trust
funds belonging to the maker or makers of such protested note ment of all notes. or notes, to the payment of all circulating notes, whether protested
or not, put in circulation by the maker or makers of such protested note or notes, pursuant to the provisions of this act, and to adopt such measures for the payment of such notes as will, in his opinion, most effectually prevent loss to the holder of such notes ; and, to this end, the Auditor of State may, after the expiration of the said twenty days, and after giving thirty days notice, by publication in a newspaper printed at the seat of government of this State, and in a daily newspaper printed in the city of New
If bills not redeomed in twenty
Furds shall be applied to pay