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shall run to the Auditor of Public Accounts for the use of said bank or association, its creditors and stockholders, and shall undertake to indemnify and save harmless said bank or association, its stockholders and creditors, against loss on account of loans carried under the permit issued by the Auditor of Public Accounts in pursuance of the filing of such bond; and such securities shall be deposited under a like contract running to the Auditor of Public Accounts for the use of said bank or association, its creditors and stockholders, undertaking that such securities shall be held to indemnify and save harmless said bank or association, its stockholders and creditors, against loss on account of loans carried under the permit issued by the Auditor of Public Accounts in pursuance of the deposit of said securities with the Auditor: Provided, further, that if in the opinion of the Auditor of Public Accounts such bond or such securities shall become impaired in value, the Auditor of Public Accounts may revoke such permit unless such bank or association shall file with the Auditor of Public Accounts such additional bond or such additional securities as will, in the opinion of the Auditor of Public Accounts, fully indemnify such bank or association, its stockholders and creditors, against loss by reason of loans made under such permit.

And, provided, also, that the total liabilities of any such person, firm or corporation for money borrowed under the provisions of this section shall not exceed twenty-five per cent of the deposits of any bank or association, and also that such total liabilities shall at no time exceed the amount of the capital stock of such bank or association.

Every such loan made in violation of the provisions hereof shall be due and payable according to its terms and the remedy for the recovery of any money loaned in violation of the provisions hereof or for the enforcement of any agreement collateral or otherwise made in connection with any such loan shall not be held to be impaired, affected or prohibited by reason of such violation, but such remedy shall exist notwithstanding the same. But every director of any such association who shall violate, or participate in, or assent to such violation, or who shall permit any of the officers, agents or servants of the association to violate the provisions hereof, shall be held liable in his personal and individual capacity for all damages which the association, its shareholders or any other person shall have sustained in consequence of such

violation.

It shall not be lawful for any bank to loan to its president, or to any of its vice presidents or its salaried officers or employees, or to corporations or firms controlled by them, or in the management of which any of them are actively engaged, until an application for such loan shall have been first approved, both as to security and amount, by the board of directors.

11. Banks or banking associations may be organized under the provisions of this Act at any place in this State. If not within any city, town or incorporated village, with a minimum capital stock of ten thousand dollars ($10,000); if within a city, town or incorporated vil

lage, the capital stock shall be according to the population of such city, town or village, as determined by reference to the last preceding United States census, as follows:

(a) In all cities, towns and villages of not exceeding five hundred (500) inhabitants with a minimum capital stock of ten thousand dollars ($10,000).

(b) In all cities, towns and villages of over five hundred (500) inhabitants and not exceeding fifteen hundred (1,500) inhabitants, with a minimum capital stock of fifteen thousand dollars ($15,000).

(c) In all cities, towns and villages of over fifteen hundred (1,500) inhabitants and not exceeding five thousand (5,000) inhabitants, with a minimum capital stock of twenty-five thousand dollars ($25,000).

(d) In all cities, towns and villages of over five thousand (5,000) inhabitants and not exceeding ten thousand (10,000) inhabitants, with a minimum capital stock of fifty thousand dollars ($50,000).

(e) In all cities, towns and villages of over ten thousand (10,000) inhabitants and not exceeding fifty thousand (50,000) inhabitants. with a minimum capital stock of fifty thousand dollars ($50,000); but a bank so incorporated in a city, town or village of over ten thousand (10,000) inhabitants and not exceeding fifty thousand (50,000) inhabitants, with a capital stock of not less than one hundred thousand dollars ($100,000), shall not accept deposits in excess of five hundred thousand dollars ($500,000), so long as its capital stock is less than one hundred thousand dollars ($100,000). Such bank may at any time increase its capital stock to not less than one hundred thousand dollars ($100,000), and if the Auditor shall find the deposits in excess of the limitation contained herein, he shall order such bank to increase its capital stock to at least one hundred thousand dollars ($100,000) within ninety days from the date of such order.

If any such bank shall fail to increase its capital stock within said time, the Auditor of Public Accounts shall revoke and cancel the permit and authority of such bank to carry on such banking business, and shall file a duly certified copy of such revocation and cancellation at the office for the recording of deeds in the county where such bank has conducted such business, and upon the recording of said revocation, said bank shall cease to receive deposits and shall proceed to dispose of its assets and wind up its affairs within one year from the date of such revocation, and at the end of said year the authority of said bank to conduct any business under the provisions of this Act shall cease and determine.

(f) In all cities, towns and villages of more than fifty thousand (50,000) inhabitants, with a minimum capital stock of one hundred thousand dollars ($100,000); but a bank so incorporated in a city, town or village of more than fifty thousand (50,000) inhabitants, with a capital stock of less than two hundred thousand dollars ($200,000), shall not accept deposits in excess of one million dollars ($1,000,000), so long as its capital stock is less than two hundred thousand dollars ($200,000).

Such bank may at any time increase its capital stock to not less than two hundred thousand dollars ($200,000), and if the Auditor shall find the deposits in excess of the limitation contained herein, he shall order such bank to increase its capital stock to at least two hundred thousand dollars ($200,000), within ninety days from the date of such order.

If any such bank shall fail so to increase it capital stock within said time, the Auditor of Public Accounts shall evoke and cancel the permit and authority of such bank to carry on such banking business, and shall file a duly certified copy of such revocation and cancellation at the office for the recording of deeds in the county where such bank has conducted such business, and upon the recording of said revocation, said bank shall cease to receive deposits and shall proceed to dispose of its assets and wind up its affairs within one year from the date of such revocation, and at the end of said year the authority of said bank to conduct any business under the provisions of this Act shall cease and determine.

Should the capital stock of any bank organized under this Act become impaired, the Auditor shall give notice to the president to have the impairment made good by assessment of the stockholders or a reduction of the capital stock of such bank, if the reduction should not bring the capital below the provisions of this section; and if the capital stock of said bank shall remain impaired for thirty days after notice by the Auditor, he shall have power, and it is hereby made his duty to enter suit against each stockholder in the name of the People of the State of Illinois, for the use of said bank, for his or her pro rata proportion of said impairment, and when collected shall pay over the amount thereof to said bank, and the judgment in such case shall be for the amount claimed with all costs and reasonable attorney's fees, which fees shall be fixed by the court, or, if it appears from the reports made to the Auditor under this Act, or from any examination made by or on behalf of the Auditor that the conditions of any bank organized under this Act are such that the impairment of the capital stock cannot be made good or that the business of any such bank is being conducted in an illegal, fraudulent or unsafe manner, he may, in his discretion, without having taken the steps provided in this section to make good the impaired capital stock, forthwith appoint a receiver, and require of him such bond and security as he deems proper. Such receiver, under the direction of the Auditor, shall take possession of the books, records and assets of every description of such bank, collect all debts, dues and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such bank, on such terms as the court shall direct; and may, if necessary to pay the debts of such bank, enforce the individual liability of the stockholders.

The Auditor of Public Accounts shall, upon appointing a receiver, cause notice to be given by advertisement in such newspaper as he may direct for three consecutive months, calling on all persons who may have

claims against such bank to present the same, and to make legal proof thereof.

From time to time the Auditor of Public Accounts shall make a ratable dividend of the moneys collected by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such bank are collected, shall make further dividends on all claims previously proved or adjudicated; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such bank, or their legal representatives, in proportion to the stock by them respectively held.

Whenever any such bank against which proceedings have been instituted, or for which a receiver has been appointed as aforesaid, on account of any alleged impairment of its capital stock or alleged conduct of its business, in an illegal, fraudulent or unsafe manner, denies such grounds, it may at any time within ten days, apply to the Circuit Court of Sangamon County, Illinois, to enjoin further proceedings in the premises; and such court after citing the Auditor of Public Accounts to show cause why further proceedings should not be enjoined, and after the decision of the court or finding of a jury that such grounds do not exist, shall make an order enjoining the Auditor, and any receiver acting under his direction, from all further proceedings on account of such alleged grounds.

All expenses of any preliminary or other examinations into the condition of any such bank shall be paid by such bank. All expenses of any such receivership, including reasonable receiver's, solicitor's and attorney's fees to be approved by the Auditor of Public Accounts, shall be paid out of the assets of such bank.

No bill shall be filed or proceedings commenced in any court for the dissolution or for the winding up of the affairs or for the appointment of a receiver for any such banking corporation on the grounds of insolvency or impairment of the capital stock of such banking corporation or upon the ground that such bank is being conducted in an illegal, fraudulent or unsafe manner, except in the name and by the authority of the Auditor of Public Accounts, represented by the Attorney General.

At any time, whenever a majority in number and amount of the creditors of any such bank or association, after any such receiver shall have been appointed, shall petition the Auditor of Public Accounts for the appointment of any person nominated by them as receiver, who is a reputable person and elector of the county in which such bank or association is located, it shall be the duty of the Auditor to make such appointment, and all the rights and duties of his predecessor shall at once devolve upon such appointee.

12. Whenever the board of directors, managers or trustees of any corporation having any banking powers existing by virtue of any general or special law of this State, or any corporation with banking powers hereafter organized under the provisions of this Act, may desire to change the name, to change the place of business, to increase or decrease the capital stock, to extend the duration of its charter, to increase

or decrease the number of directors, managers or trustees, or to consolidate such corporation with any other corporation having banking powers which may hereafter exist, they may call a special meeting of the stockolders of such corporation for the purpose of submitting to a vote of sach stockholders the question of such change of name, change of place ef business, increase or decrease of number of directors, managers or trustees, increase or decrease of capital stock, extension of duration of its charter, or consolidation with some other corporation, as the case Lay be: Provided, that in changing the name of any corporation under the provisions hereof, no name shall be assumed or adopted by any corporation organized under the laws of this State without the consent of such other corporation, and that in no case shall the capital stock be iminished to the prejudice of the creditors of such corporation, or the number of directors, managers or trustees be reduced to less than three er increased to more than twenty-one.

Such special meeting shall be called by delivering personally, or by depositing in the postoffice at least thirty days before the time fixed for ch meeting, a notice properly addressed to each stockholder, signed by a majority of said directors, managers or trustees, stating the time, place and object of such meeting. A general notice of the time, place and obect of such meeting shall also be published for three successive weeks some newspaper printed in or nearest to the county in which the prinipal business office of said corporation is located. At any such meeting stockholders may vote in person or by proxy, each stockholder being entitled to one vote for each share of stock held by him, and votes reprenting two-thirds of all the stock of the corporation shall be necessary for the adoption of the proposed change of name, place of business, numfr of directors, managers or trustees, amount of capital stock, extension f duration of charter or consolidation with some other company. At ay regular meeting, or at the time and place specified in said notice of a special meeting called for that purpose, said propositions, or any of them, may be submited to a vote, and if it shall appear that two-thirds of all votes represented by the whole stock of such corporation are in favor of the propositions or any of them, so submitted, a certificate thereverified by the affidavit of the president, and under seal of the corporation, shall be filed in the office of the Auditor, and a like certificate ed for record in the office of the recorder of deeds of the county where the principal business office of such corporation is located; and upon the ng of such certificate the changes proposed and voted for at such meeting, as to name, place of business, increase or decrease of capital stock, number of directors, managers or trustees, extension of duration of Carter, or consolidation with some other company, shall be and is hereby declared accomplished in accordance with the said vote of the stockFolders: And, provided, further, that any corporation with banking powers availing himself of or accepting the benefits of, or formed under, this Act, and all corporations with banking powers existing by virtue of any special charter or general law of this State, shall be subject to the provisions and requirements of this Act in every particular, as if organized under this Act.

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