furnished with a copy. Notice to be given by publi Auditor to be of Public Accounts: it shall also be published once a week, for four weeks, in the official journal of the State, and if the official journal of the State should not be a newspaper in the city of New Orleans, the act shall also be published for the same time in at least one daily newspaper of the city of New Orleans, and also in a newspaper at the place named in the act as the place of business, if there be one published there. A duly certi-. fied copy of the record of such an act may be used as evidence for and against such corporations. cation. act of incorpo. tion. SEC. 89. The act thus recorded and published shall contain Contents of and set forth, under the signatures of the subscribers and associates, the name assumed to distinguish such banking company, and to be used in its dealings; the place where the banking business of such association is to be carried on, designating the particular parish and city or village in the State; the amount of the capital stock of the banking company, and the number of shares into which the same shall be divided; the names and places of residence of the shareholders, and the number of shares held by each of them respectively, and the time when and the manner in which the payments on stock subscribed shall be made; the period at which the association shall commence, and the period of its duration; the number of its directors and managers; the mode of election, and liquidation at the end of the term. The same may also provide for an increase of the capital and of the number of associates, and for any modification, addition or alteration in the articles of association. Every increase, Modificatious, modification, alteration or addition shall be submitted to a general meeting of the stockholders, held after thirty days' notice, and shall be approved by two-thirds of the amount of the capital stock, and shall be executed, recorded and published, as provided for in the original articles. how made. Stock sub SEC. 90. All stock subscribed to any banking company under scribed, when this act, must be paid up in full within twelve months after the company shall commence business. to be paid. Restrictions as to loans to stockholders. Shares of SEC. 91. No loans of any banking company shall be made to any of its stockholders on a pledge of its own stock. SEC. 92. The shares of the banking companies shall be personal property, and shall be transferable upon the books of the sonal property, same, in such manner as the by-laws may direct; but no share stock to be per how transfer ble. Liability of stockholders. holder therein be liable for its debts and contracts to a greater amount than the whole of his shares therein. Unincorporated bankers shall be liable to the full amount of their obligations and contracts. The liability as stockholders shall apply not only to such persons as appear by the books of the company to be such, but also to every equitable owner of stock, although the same may appear upon the books in the name of another person; also to every person who shall have advanced the installments or purchase money of any stock in the name of a person under twenty-one years of age, and while such person remains a minor; and also to every guardian who shall voluntarily invest funds in such stock. No trust funds shall be liable for the corporate debts; the guardian or trustees shall be personally liable, until the person beneficially interested becomes competent to control and dispose of the same, and for sixty days thereafter. But when a guardian or trustee holds such stocks under a transfer from a third person in good faith, or by positive directions to make such investment, the person so transferring or giving directions, or his estate, if he be deceased, shall be responsible for the debts and liabilities chargeable on the stock. Stockholders, from liability. SEC. 93. The stockholders shall be exonerated from any responsibility in respect to stock duly transferred on the books how exonerated of the association in good faith, and without intent to evade such responsibility, before default has been made by the company in the payment of its debts. The assignee shall succeed to the same responsibilities as though he had been owner of the stock at the time of contracting the debt or liability for which the stockholders are responsible, and the same rule of responsibility shall prevail in regard to all subsequent assignees. Charter, how forfeited. feiture. Duty of Au SEC. 94. Every banking company established under this act shall, on proof of any act of insolvency or non-compliance with any of the conditions of this act, forfeit its corporate rights, and it shall be the duty of the District Court of the district in which such corporation is situated, at the instance of any creditor, or of the Attorney General, and on proof of the alleged facts, to decree Proceedings such forfeiture, and to appoint thereupon commissioners to effect in case of for the liquidation of the affairs of the corporation; to convert into cash, as speedily as may be, under the direction of the court, all the assets of the corporation, including the sum that may have remained unpaid by stockholders upon their respective shares of the capital stock, and after providing for any unpaid balance which may be due to the bill holders, to distribute the same as now provided by law, in case of insolvencies of individuals. SEC. 95. The Auditor of Public Accounts is authorized and directed to cause to be engraved and printed, in the best manner ditor in causing to be engraved to guard against counterfeiting, such quantity of circulating circulating notes, in blank, of the different denominations, not less than five dollars each, which are authorized to be issued by the incorporated banks of the State, as he may from time to time deem necessary. The blank circulating notes shall be countersigned by the Auditor, and numbered and registered in his office, so Auditor to that the notes of each denomination of such circulating notes countersign, issued to the same banker or banking company shall be uniform. register all All such circulating notes, of every denomination, shall be stamped upon their face, "Secured by pledge of Public Stocks." Notes, their The form and devices of such circulating notes may be selected form and device by the bankers and banking companies, who may be entitled to receive them from the Auditor; but the device for receiving the signature of the Auditor, and the number herein directed to be put upon such notes by him, shall be uniform. notes. number and notes. Auditor by shall receive SEC. 96. Banks and banking companies established under Bonds and this act, upon legally assigning to, and depositing with the stocks to be Auditor, the bonds or evidences of debt of the United States; assigned to the bonds of this State; bonds of the city of New Orleans, shall be banks, for entitled to receive from the Auditor an equal amount of circulat- which they ing notes in blank, of the denominations such as they may prefer, circulating numbered, registered, countersigned and stamped as aforesaid. notos. But such public stocks shall always be, or be made equal to stock Auditor, reof this State, bearing not less than six per cent. interest; and it striction of in shall not be lawful for the Auditor to take the bonds at a rate taking stock. above their par value, or above their market value. Auditor, duty SEC. 97. The Auditor shall collect, at the regular periods, the of as regards the interest on interest that shall accrue upon the bonds and stocks deposited bonds and stocks. His duty in with him as security for the circulating notes; and shall pay over the same, on demand, to the parties from whom they were received, so long as the market price of the bonds and stocks does not fall below the rate at which they were taken by him. In the event of such a depreciation, the Auditor is authorized case of the de- and directed to retain the interest until the securities shall preciation ef recover their full value as stated in their receipt on deposit, or security. until such further deposit shall be made as will fully make good the amount for which the circulating notes were issued. And the Auditor is further empowered, in case of such depreciation in the securities deposited, to require from the banker or banking either an additional deposit of bonds, to make up fully company, the original security for the notes issued, or the return and surbanking compa- render, by the parties depositing, of so much of the circulation received from the Auditor as will make good the deficiency of security produced by such a fall in the market value of the deposited securities; and on the failure of any banker or banking company to comply with such demand within twenty days after it shall be made, all the privileges acquired under this act shall be forfeited; and the Auditor shall immediately take the proper steps to cause the affairs of the defaulting banker or banking company to be liquidated, as provided in cases of insolvency. When to institute proceed. ings against District Court. To be tried But the banker or banking company shall have the right to appeal from the decision of the Auditor, within ten days, to the Appeal to the District Court of the place where the banking company or banker have their domicile; and the court is required to hear and determine the issue, in preference to all other cases, either in open by preference. Court or in chambers, and the decision of the District Court may be appealed to the Supreme Court then in session, at such time as may be fixed by the District Court, in order to have the same as speedily disposed of by the Supreme Court as the interest of the parties and the public may require; and provided, further, that during the pendency of the appeal all proceedings of the banker or banking companies, as such, shall be suspended. Securities to be held for redemption of cirulating notes. canceling of securities. SEC. 98. All the securities doposited with the Auditor shall be held exclusively for the redemption of such circulating notes as have been issued thereupon; but he may, on application of the depositors, change and transfer them, on receiving the Transfer and amount of securities of equivalent value, receivable under this law, or on receiving and canceling an equivalent amount of the circulating notes for which they were pledged or deposited. He Canceling of may also receive and cancel any mutilated notes, and issue in mutilated notes exchange other circulating notes of a corresponding amount, but the notes thus received shall be recorded and preserved as vouchers, until the annual examination of the legislative committees. Description of the securities deposited to be filed with the Auditor and SEC. 99. Whenever the securities shall be assigned to and deposited with the Auditor in the manner aforesaid, a full description of the same, signed by the Auditor and the parties assigning and depositing the same, shall be filed and recorded in the office of the Auditor, and also in the office of the Treasurer of the State; and every change transfer or substitution of the same shall be described, filed and recorded in the same manner. Securities to be delivered to Redelivery of securities. The securities shall be delivered to the Treasurer for safe keeping, on his receipt to the Auditor for the same; and any delivery the Treasurer. of the same to the Auditor, for any of the purposes of this act, shall be made on a written order of the Auditor, specifying the purposes for which they are required, which order shall be filed and recorded in the Treasurer's office, with the Auditor's receipt for the securities, or any portion of them delivered to him. A report from the Auditor of every sale and disposition of the securities shall also be filed in the office of the Treasurer. SEC. 100. It shall not be lawful for the Auditor to counter- Penalty for sign bills for any banker or banking company, to an amount in Auditor coun. tersigning bills the aggregate beyond the amount of stocks or bonds deposited, beyond the at their rate of value estimated under this law. A violation of amount of stocks deposthis provision shall subject the Auditor, on conviction, to a fine ited. of five thousand dollars, and imprisonment for ten years at hard labor. SEC. 101. The plate, dies and materials procured by the Plates, etc., Auditor for the engraving and printing of the circulating notes, to be kept by shall remain in the custody and under the direction of the Auditor. The necessary expenses incident to procuring the plates, Expenses of dies and materials, the printing, numbering, countersigning and engraving, etc, to be paid by registering of the same, shall be paid by the respective bankers the banks. and banking companies for whose use they were incurred, before the notes shall be delivered by the Auditor. He is further authorized to charge and receive from every banker and banking company such rate per cent. as may be sufficient to defray his or their equitable proportion of the general expenses incident to the execution of this act. Form of the circulating Penalty for SEC. 102. Bankers and banking companies, receiving such circulating notes from the Auditor, are authorized to execute notes of corpoand sign them in such manner as to make them obligatory in rations. law as promissory notes, payable to bearer on demand, and without interest, at the place of business of the banker or banking companies, and not elsewhere, except as otherwise provided by this act; and may circulate and use the same as money, according to the general course of banking business as defined in this act and regulated by the laws and usages of the State. All circulating notes shall be signed by the banker and his cashier, or by the president and cashier of the banking company issuing them, and by no other person whatever for them; provided, that no individual firm or corporation, except the legally chartered banks now existing, shall issue and circulate as money, any note, except persons not au such as are authorized by this act, under a penalty of one thou- thorized issn. ing notes and sand dollars, to be recovered with costs of suit, one-half of such circulating the penalty for the use of any person who shall sue for the same to a final judgment. SEC. 103. In case the maker of any note, countersigned, reg-Procedings on istered and issued, as aforesaid, shall at any time within the usual hours of business, at the place where the same is made payable or redeemable, refuse to pay or redeem the same on demand, in lawful money of the United States, the owner of such note may cause it, or so many of such notes as he may present and demand payment of, to be protested for nonpayment; and the Auditor, on receiving and filing such protested give public nonotes, shall forthwith give notice to the makers of the notes to tice. same as money. failure to pay on demand. 1858-200. Mode of proceeding to put banks in liquidation after protest. 1855-214. All transfers protest. pay the same, and all costs, and if they shall omit to do so for three days after the service of the notice, the Auditor shall thereupon give public notice, through the official journal of the State and one other daily newspaper in the city of New Orleans, and if the official journal be not published in the city of New Orleans, in at least two daily journals published in the city of New Orleans, and also in the newspaper published in the place of business of the makers of such notes, if out of the city of New Orleans, if there be one published there, that all the circulating notes, issued by the makers of the notes, will be redeemed by him, out of the trust funds deposited in his hands. SEC. 104. Whenever a notice of protest for non-payment of any note, as described in the preceding section, shall be lodged in the District Court, verified by the affidavit of the creditor that the amount is still due and unpaid, it shall be the duty of the Judge of said Court forthwith to order notice of the same to be served upon the Attorney General of the State; and it shall be the duty of the Attorney General receiving said notice immediately to ascertain whether there be any legal or equitable defense to the payment of said note; and, if, in his opinion, there be no such defense, he shall forthwith apply to said court, by petition, for a writ of sequestration against all the property and assets of the bank whose note has been protested as aforesaid, and for judgment of forfeiture, upon filing said petition, such sequestration shall issue; and it shall be the duty of the court at once to appoint three liquidators, who shall give such security as the court may order. Said bank shall be allowed three days to answer said suit; the cause shall be heard in preference to all other cases, and should there be no sufficient legal or equitable defense established to the payment of said note, judgment of forfeiture shall be entered up, and the liquidation of said bank shall proceed as hereinafter provided; and such liquidators shall receive such compensation as the court may determine, which shall not exceed a salary at the rate of two thousand five hundred dollars per annum. SEC. 105. No banker or banking company shall, after the prohibited after protest of his or their note, make any assignment, transfer, conveyance or sale of his or their property or assets; every such assignment, transfer, conveyance or sale, shall be null and void, and every banker, president, director, manager and officer assisting to such assignment, transfer, conveyance or sale of such property or assets, shall be personally liable in full for all the debts of the company, and may be adjudged guilty of a misdemeanor and punished on conviction by fine and imprisonment. The protest of the notes first protested shall constitute a lien for the benefit of the creditors of the bank upon all the assets of the bank not in the hands of the Auditor. Notes protested to be a lien. Auditor in certain cases to ties deposited with him. SEC. 106. The Auditor immediately on giving the public sell the securi- notice of the non-payment of any protested bills or notes, shall proceed to advertise for sale at public auction, in the city of New Orleans, the stocks or bonds deposited with him by the maker or makers of the protested notes. The advertisements shall be published at least twice per week for four weeks, in two daily newspapers printed in the city of New Orleans. On the day of sale, which shall not be less than thirty days from the first adver |