PUBLIC ACT NO. 205, 1887. [No. 205.] AN ACT to revise the laws authorizing the business of banking, and to establish a banking department for the supervision of such business. establishing SECTION 1. The People of the State of Michigan enact, That Association for any number of persons, not less than five (5), may associate to banks, etc. establish offices of discount and deposit to be known as commercial banks, and also to establish offices of loan and deposit to be known as savings banks, or to establish banks having departments for both classes of business, 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 bank Capital stock. shall not be less than one hundred thousand dollars ($100,000), except that banks with a capital of not less than fifteen thousand dollars ($15,000) may be organized in a city or village the population of which does not exceed one thousand five hundred (1,500) inhabitants, and banks with a capital of not less than twenty-five thousand dollars ($25,000) may be organized in a city or village, the population of which does not exceed five thousand inhabitants, and with a capital of not less than fifty thousand dollars ($50,000) in a city or village the population of which does not exceed twenty thousand (20,000) inhabitants. No bank shall take as security for any loan or discount a lien security required upon any part of its capital stock. The same security in kind and amount shall be required of stockholders and of persons not stockholders. No bank shall be the holder or purchaser of Bank not to hold any portion of its capital stock unless such purchase shall be capital stock, etc. necessary to prevent loss upon a debt previously contracted in good faith. Stock so purchased shall in no case be held by the bank for a longer time than six months, if the stock can be sold for what it cost, and it must be sold for the best price obtainable within one year, or canceled as hereinafter provided for the reduction of capital stock: Provided, That the provisions of Proviso as to this act as to the amount of capital shall not apply to any bank capital stock. now organized and doing business at the time of the passage of this act. for loans, etc. amount of SEC. 2. The persons associating shall execute articles of Articles of |
