holders.

List of share keep a true and correct list of the names of all the shareholders of such association, and shall file a copy of such list in the office of the clerk of the county where any office of such association may be located, and also in the office of the auditor, on the first Monday in January, in every year.

Notes, payable.

§ 19. It shall not be lawful for any association under where this act, to make any of its bills or notes, put in circulation as money, payable at any other place than at the office where the business of the association is carried on and conducted.

able on demand in specie.

§ 20. No banking association or individual banker shall Notes to be pay issue or put in circulation any bills or notes of such association or banker, unless the same shall be made payable on demand. And every such association or bankers shall always keep on hand a sufficient amount of specie to redeem all such bills or notes as they may be presented at the place of payment.

ed by auditor,

§ 21. It shall be the duty of the auditor to receive muMutilated notes tilated notes issued by him, and re-deliver, in lieu thereof, to be exchang- other circulating notes, to the same amount. And two deand lists there- scriptive lists of such mutilated notes so received, and of of to be kept. notes re-delivered, shall be made; one to be retained by the auditor, the other by the treasurer, and copied in each office on the book kept for the purpose of recording descriptive lists of securities; and all such mutilated notes shall, at the time they are received, be consumed by burning, in the presence of said officers.

§ 22. All grants, conveyances, assignments, transfers, Grants, &c pre-sales, or other disposition of property, rights, credits or ors, to be void effects by any such corporation, for the purpose or with inas to other cred- tent to secure the payment of one liability in preference to

ferring credit

itors.

another or others, or in any manner to secure any priority or preference to any one or more creditors, or which shall be intended to have such operation or effect, shall be void in respect to all other persons and creditors whose rights or remedies may be effected thereby.

§ 23. It shall be lawful for such association to purchase, Purposes for hold and convey real estate for the following purposes: 1st. Such as shall be necessary for its immediate acheld and con-commodation, banking-houses, and buildings connected therewith in the transaction of its business.

which real es

tate may be

veyed.

2d. Such as shall be mortgaged to it in good faith, by way of security for loans made by and money due to such association.

3d. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. 4th. Such as it shall purchase at sales under judgments, decrees or mortgages held by such association, and at sales under judgments, and decrees in favor of others, where it

is done with the sole view of securing and saving debts due, or to become due to such corporation.

§ 24. The said association shall not purchase, hold or Restrictions in purchase and convey real estate in any other case or for any other pur- sale of real espose whatever; and all conveyances of such real estate tate. shall be made to the corporation, and which the president and cashier, or either, may sell, assign, grant or convey under the direction of the association, free from any claim thereon in favor of or against the shareholders, or any person claiming under them.

affairs of banks

§ 25. Upon the application of the auditor, the share- Investigation of holders of any such association, whose debts or shares shall when made. amount to three thousand dollars, and stating facts, verified by affidavit, the judge of the circuit court of the county in which the business of the association may be conducted, may order an examination to be made by any competent person or persons, to be by him appointed, of the affairs of such association, for the purpose of ascertaining the safety of its investments and the prudence of its management; and the result of such examination, together with the opinion of the judge thereon, shall be published in such manner as he shall direct, and who shall make such order in respect to the expenses of such examination and publication as he may deem proper.

deem.

Protest.

may § 26. In case the maker or makers of any such circula- Failure to reting notes, countersigned and registered as aforesaid, shall, at any time hereafter, on lawful demand, during the usual hours of business, between the hours of ten and three o'clock, at the place where such note or notes is or are payable, fail or refuse to redeem them in the lawful money of the United States, the holder of such note or notes making such demand may cause the same to be protested for nonpayment, by a notary public, in the usual manner, and the auditor, on receiving and filing in his office such protest, shall forthwith give notice, in writing, to the association or banker, the maker or makers of such notes, to pay the same, and if he or they shall omit to do so, the auditor Duty of auditos. shall, immediately thereupon, (unless such association or banker shall satify him by affidavits filed in his office that they or he had a good defence as against the person presenting the same to a recovery thereof,) give notice in at least one paper printed (if any paper is so printed or published) at the place of business of such person or persons, bank or association, so refusing payment of any notes, (and in one newspaper published at the seat of government of the state of Illinois,) that all the circulation issued by such person or association will be redeemed out of the trust funds belonging to the maker or makers of such protested note, to the payment, pro rata, of all such circulating notes, whether protested or not, and to adopt such measures for

the payment of such notes as will, in his opinion, most effectually prevent loss to the holders thereof. And so soon Power of corpo- as any such note shall be protested as aforesaid, a copy of ration to cease such protest shall be delivered to the president, cashier or principal clerk at the office or place of business of the association. The powers and duties of any such association or banker over or with the same shall cease and determine, and all the officers connected with the same shall be prohibited from exercising any control whatever over the same, unless by the decision or decree of the court in which proceedings may be had for the appointment of receivers and winding up the affairs of the association, it shall be determined that such association was not bound to pay the note or bill protested as aforesaid, the protest thereof to the contrary notwithstanding: Provided, that the legal existence of the corporation shall continue for purposes or proceedings in courts for and against the same, and of avoiding the loss of property of any kind, for want of a person in being to hold the same, but for no other purpose whatever. And it shall be the duty of the auditor to apply to any judge of the circuit court of this state, whose duty it shall be to appoint (a disinterested person or persons) a receiver or receivers, to take the assets and property of every such banker or association into his or their possession, and collect Application of debts due, and apply all such assets and property as may

Proviso.

Receivers.

assets.

lation to first paid.

be

come into his or their possession, under the direction of the circuit court of the county in which the corporation was located—first, to the redemption or payment of circulating notes; second, to the payment of all other indebtedness; and third, to the payment of stockholders on account of stocks invested. Receivers appointed under the provisions of this act shall give bond and security as may be required by the judge or court appointing them.

§ 27. That the distribution and application of all the Notes in circu-means, assets, and property of any such banker or association, as shall come into the hands of any such receiver or receivers, or as shall be in the hands of the auditor, shall first be applied in payment and satisfaction of all notes issued as and for a circulating medium, by any such banker or association.

Liability of bankers.

§ 28. The amount of stock owned and held by any individual banker, or by any stockholder in any such association, shall be held and controlled by the receiver or receivers as aforesaid, for the payment of any note put in circulation; the said liability to continue for the space of six months after the assignment by him of any such stock; and any stockholder, who is really the party in interest, shall be liable as aforesaid, although such stock may be held and recovered in the name of some other party or individual.

ed to be kept

§ 29. The names of all stockholders in any such as- List of stocksociation shall be written, at length, and in legible charac- holders requirters, and shall be continually exposed, during banking for public inhours, for public inspection; and every transfer of stock, spection. with the date of assignment, shall be exhibited in like

manner.

provisions of

§ 30. That each and all the provisions of this act shall Application of apply to and control, in all respects, any banker who shall this act. conduct business under the provisions of this law, whether the word banker is or is not used in any such provision.

powers and du

§ 31. At the next session of the general assembly after Bank comm'r, this act takes effect, and every fourth year thereafter, the appointment, governor shall nominate, and by and with the advice and ties of. consent of the senate appoint, three citizens of the state as bank commissioners, whose duties shall be to make annual examination in respect to the affairs and business of associations incorporated under the provisions of this act, and in respect to the condition and management thereof, and also to inspect the securities filed with the auditor and treasurer, so as to be able to determine whether or not any change has been made in said securities, as well as in respect to the sufficiency of such securities to meet the liabilities of the corporation, and to report thereon to the auditor and to each corporation. Such commissioners shall have power to examine all books, papers and documents appertaining to the business of the corporation, and to swear or affirm all officers, agents and others connected with the corporation, in respect to any matter or thing about which they have the right to enquire, and their reports shall be published at the seat of government, and such other papers as they may direct.

§ 32. If the said bank commissioners shall ascertain, Diminution of upon any examination which they may make, that any change remedied. securities, how has been made in the securities deposited with the treasurer, or that any part thereof has been lost, destroyed, or improperly withdrawn, or in any way or manner misused or misapplied, or that securities have from any cause become lessened in value or insufficient as security for the redemption of bills or circulation, they shall notify the president and cashier of such association or corporation liable to be affected by any such state of facts, of the discovery thereof, and require the transfer and deposit of other securities, of like kind and value with those originally transferred, to supply the place of those changed, lost, destroyed or improperly withdrawn, or which shall have become insufficient security as aforesaid, in a reasonable time, to be fixed by said commissioners; or that said association or corporation surrender to the auditor to be burned, a sufficient amount of bills to reduce the liability of such association to such sum as that the securities in possession of the treas

Quorum.

tor.

urer, will be sufficient for the redemption of all bills or notes not so surrendered; and in case of any failure to comply with any such requisition, the commissioners shall report the facts to the auditor as well as to all the other associations incorporated under the provisions of this ect; and the auditor shall thereupon proceed to put such defaulting association or corporation into liquidation, as provided for in cases of failure to redeem or pay notes or bills on demand.

§ 33. Any two of said bank commissioners shall constitute a quorum to transact business.

§ 34. Every banking association or individual banker Reports to audi- who shall hereafter carry on banking business under the provisions of this act, shall make out and transmit to the auditor of state a full statement of its affairs, as they existed on the first Monday of January, April, July and October of each year, verified by the oath of its president and cashier; which statement shall be deposited in the office of said auditor, by the twentieth day of each of said months in each year; which statement shall be published, quarterly, in the nearest newspaper; and such statement shall contain

Am't of stock.

Value of real es

tate.

Claims.

Debts.

Notes in eirculation.

Suspended debt.

1st. The amount of capital stock of the association or individual banker, paid in and invested according to law.

2d. The value of the real estate, specifying what portion is occupied by the association or individual banker for the transaction of business.

3d. The debts owing to the association or individual banker, and the date and amount of each bill or note discounted, and when the same was made payable.

4th. The amount of debts owing by the association or individual banker, and the amount deposited in other banks.

5th. The amount of notes or bills, then in circulation, of said association or banker; of loans and discounts, and specie on hands; what amount of notes of other banks is held by such banker or association.

6th. The amount of suspended debt held by such association or banker.

§ 35. Every association, or individual banker, that shall Penalty for neneglect or refuse to make out and transmit the statement glect to report. required in the section of this act, shall be restrained from the further prosecution of the banking business, and shall forthwith go into liquidation.

Securities, when

dered.

§ 36. Whenever any individual banker or association, desirous of relinquishing the banking business, shall have to be surren- redeemed, at least, ninety per cent. of their circulating notes, and shall produce a certificate of a deposit to his credit, in such bank as the auditor may approve, to an equal amount with the notes of such banker or association, it shall be lawful for the auditor to receive the same, and to give up all