AN ACT providing for a special appropriation. In force Feb.17, 1851. appro priated to R. SECTION 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That the auditor be and he is hereby authorized and required to draw $1000, his warrant in favor of Richard M. Young, for the sum of M. Young. one thousand dollars, in full for services rendered the state in procuring the re-examination and re-statement of the account relating to the three per cent. school fund due the state of Illinois; and that the same be paid from the funds received from the United States for the encouragement of learning, under the ordinance of April eighteenth, one thousand eight hundred and eighteen. This act to be in force from and after its passage. AN ACT to establish a general system of banking. cure bank notes SECTION 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That the auditor of public accounts is hereby authorized and re- Auditor to proquired to cause to be engraved and printed, in the best man- to be engraved ner to guard against counterfeiting, such quantity of circu- and printed. lating notes, in the similitude of bank notes, in blank, of different denominations, not less than one dollar, as he may, from time to time, deem necessary to carry into effect the provisions of this act; such blank circulating notes shall be countersigned, numbered and registered in proper books, to be provided and kept for that purpose in the office of the auditor, under whose direction, by such person or persons as the said auditor shall appoint for that purpose, so that each denomination of each circulating note shall bear the signature of such register, or one of such registers. ciations or per Bons. § 2. Whenever any person, or association of persons, When to be de formed for the purpose of banking under the provisions of livered to assothis act, shall lawfully transfer to and deposit with the auditor any portion of the public stock issued, or to be issued, by the United States, or any state stocks on which full interest is annually paid, or the stocks of this state-the latter stocks to be valued at a rate twenty per centum less in value than the market price of such stocks, to be estimated and governed by the average rate at which such stocks have been sold in the city of New York, within the previous six months preceding the time when such stocks may be left on deposit with the auditor, and in no case shall the auditor issue bills for banking purposes, on bonds of this or any other state, on which less than six per cent. is not regularly paid, unless there shall be deposited with him at least two dollars in bonds, exclusive of the interest, for every dollar in bills so issued. Such person, or association of persons, shall be entitled to receive from the auditor an equal amount of such circulating notes, of different denominations, registered and countersigned as aforesaid; and it shall not be lawful for the auditor to take such stock at a rate above its par value: Provided, that stock shall in no instance be received by the auditor at a rate above the market value at the time of the deposit by said banker or association. § 3. A descriptive list of the circulating notes so regisList of notes to tered and signed shall be delivered to the treasurer, who be delivered to shall copy the same in the book hereinafter required to be kept by him, for recording descriptive lists of securities deposited with him for safe keeping. treasurer. authorized. § 4. Such person, or association of persons, are hereby Loan and circu- authorized, after having executed and signed such circulalation of notes ting notes, in the manner prescribed by this act, payable on demand, at the place of business, within this state, to loan and circulate the same as money, according to the ordinary course of banking business. treasurer. § 5. Three descriptive lists of the securities transferred Securities to be to the auditor as aforesaid, shall be made and signed by the deposited with auditor and persons making the transfer, one in a well bound book, to be kept by the auditor for that purpose, one in a like book to be kept by the treasurer, and one in a book to be kept by the association; and said securities shall then be delivered to the treasurer for safe keeping, who shall receipt to the auditor for the same, and who shall be responsible for any loss or destruction thereof, growing out of or resulting from negligence, or the want of reasonable precaution and care. The whole or any part of said When be re- securities may be re-delivered to the auditor, for the purposes of being sold under the provisions of this act, or being used or disposed of under any order or decree of court, or of being returned to the owner, in conformity with the provisions of this act-the auditor, in either case, giving a receipt upon the book kept by the treasurer aforesaid, specifying therein the purpose for which such re-delivery was made; which receipt shall discharge the treasurer from all further responsibility. delivered to auditor. Associations. § 6. Any number of persons may associate to establish offices of discount, deposit and circulation, and become incorporated upon the terms and conditions, and subject to the liabilities prescribed in this act; but the aggregate amount of the capital stock of any such association shall Amount stock. not be less than fifty thousand dollars. Certificate. § 7. Such persons, under their hands and seals, shall make a certificate, which shall specify: First. The name assumed to distinguish such association, Name. and to be used in its dealings. Second. The place where the business is to be carried on, Place. designating the particular city, town or village. Third. The amount of capital stock, and the number of shares. shares into which the same shall be divided. dence. ciation. Fourth. The names and residence of the shareholder, Names and resiand the number of shares held by each of them respectively. Period of assoFifth. The period at which such association shall commence and terminate; which certificate shall be acknowledged and be recorded in the office of the recorder of the county where any office of such association shall be estab- Certificate to be lished, and a copy thereof shall be filed in the office of the filed. secretary of state and the auditor of state; and upon the recording of which certificate the person or association of persons aforesaid shall become a body politic and corporate, by the name assumed as aforesaid, for and during the time fixed in the certificate, and by such name shall have power Corporate powto make contracts; to grant and receive; to sue and be sued; to plead and be impleaded, in all courts and places wherein legal or judicial proceedings may be had; to have and use a common seal, and alter the same at pleasure; to have, hold, use and enjoy property, real, personal and mixed, with the rents, issues and profits thereof; and to exercise all other powers conferred by this act; and all grants or conveyances of real estate shall be under the seal of the corporation, signed by the president, and countersigned by the cashier. ers. of certificate § 8. A copy of the certificate required by the sec- Certified copies tion of this act, duly certified by the recorder of the coun- to be evidence. ty and secretary of state, or by either of those officers, may be used as evidence in all courts and places against any such association, or any other person for or against whom any such evidence may be necessary, on any civil or eriminal trial. § 9. Such associations shall have power to carry on the Banking powbusiness of banking, by discounting bills, notes, and other ers. evidences of debt; by receiving deposites; by buying and selling gold and silver bullion, foreign coins, and bills of exchange; by loaning money on real and 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 officers and agents as their business may require. personal pro § 10. The shares of said association shall be deemed Shares of stock personal property, subject to taxation, and shall be trans- to be deemed ferable on the books of the association, in such manner as perty, &c. may be agreed on in the articles of association; and every person becoming a shareholder by such transfer, shall, in proportion to his shares, succeed to all the rights and liabil ities of shareholders by whom the transfer was made. No change shall be made in the articles of association, or of the shareholders or members thereof, by which the right, remedies or securities of its existing creditors shall be impaired. Such association shall not be dissolved by the death or insanity of any of the shareholders therein, when there Corporation to is more than one shareholder in such association. Taxes shall be levied on and paid by the corporation, and not upon the individual stockholders: the value of the property to be ascertained annually by the bank commissioners herein provided for; and the rate of taxation shall be the same as that required to be levied on other taxable property by the revenue laws of the state. § 11. Contracts made by any such association, and all President and notes and bills by them issued, and put in circulation as cashier to sign money, shall be signed by the president and cashier thereof; and all suits, actions and proceedings, brought or prosecuted by, or in behalf of such association, may be brought or prosecuted in the name of the corporation; and no such suit, action or proceeding shall abate by reason of the death, resignation or removal from office of any president, but may be continued and prosecuted according to such rules as the court of law and equity may direct. § 12. Any persons having demands against any such Actions against association, may maintain actions against the corporations; which suits or actions shall not abate by reason of the death, resignation or removal from office of any president, but may be continued and prosecuted to judgment against the corporation; and all judgments and decrees obtained against such corporation, for any debt or liability of such association, shall be enforced against the property of the same, except such judgments or decrees as may be obtained against shareholders as herein provided. § 13. The auditor may give to any person or associaPower of attor- tion of persons, so transferring stocks, in pursuance of the provisions of this act, power of attorney to receive interest or dividends thereon, and apply the same to their own use; but such powers may be revoked upon such person or association failing to redeem the circulating notes so issued, or whenever, in the opinion of the auditor, the principal of such stock shall become insufficient security; and Surrender of se- the auditor may, upon the application of the owner or owners of such stock, re-transfer to such owner or owners, upon receiving and cancelling an equal amount of such circulating notes, delivered to him by each person or association, in such manner that the circulating notes shall always be secured in full by the pledge of stocks; which circulating notes after descriptive lists thereof have been made and recorded by the auditor and treasurer, shall, in presence of these officers, be consumed by burning. Jidell bas to redeem bills. § 14. In case such person or association of persons Proceedings in shall fail or refuse to pay any bill or note on demand, in the case of failure manner specified in the seventeenth section of this act, the auditor, after ten days' notice given in two newspapers printed in the city of New York, therein mentioned, may proceed to sell, at public auction, in the city of New York, the public stock so pledged, or such portion as may be necessary, and out of the proceeds of such sale shall cancel and pay the said bill or note, default in paying which shall have been made as aforesaid; but nothing in this act contained shall be considered as implying any pledge on the part of the state for the payment of said bills or notes, beyond the proper application of the securities pledged to the auditor for their redemption. § 15. The public stock to be deposited with the auditor Application of by any such person or association, shall be-first, for the securities. redemption of bills or notes of such person or association, put in circulation as money, until the same is paid; second, for the payment of all other liabilities, and the excess for the use of stockholders. to remain in § 16. The plate, dies and materials to be provided by Plates, dies, &e. the auditor for the printing and marking of the notes pro- custody of auvided for hereby, shall remain in his custody and under his ditor. direction; and the expense incurred in executing the provisions of this act, shall be audited and settled by the auditor, and paid out of any money in the treasury not otherwise appropriated; and for the purpose of re-imbursing the same, the said auditor is authorized and required to charge against and receive from such person or association applying for such circulating notes, such rate per cent. thereon as may be sufficient for that purpose. not to exceed § 17. It shall not be lawful for the auditor, or other Amount of notes officer, to countersign bills or notes for any person or asso- securities. ciation, to any amount, in the aggregate exceeding the public stock deposited with the auditor by such person or association, as provided in the second section of this act; and any auditor, or other officer, who shall violate the visions of this section, shall, upon conviction, be adjudged guilty of a misdemeanor, and shall be punished by a fine Penalty. not less than five thousand dollars, and be imprisoned not less than five years in the penitentiary. pro for non-payment § 18. Every association under the provisions of this Damages act, shall be liable to pay the holder of every bill or note of bills. put in circulation as money, the payment of which shall have been demanded and refused, damages for the nonpayment thereof, in lieu of interest, at the rate of twelve and one half per cent. per annum, from the time of such refusal until the payment of such evidence of debt and the damage thereon. The president and cashier of every association formed pursuant to the provisions of this act, shall |