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of 1889.


good the deficiency so appearing. If any bank shall refuse or fail for ninety days after written requisition to make good the deficiency so appearing or found to exist, it shall be the duty of the Commissioner, with the concurrence of the Attorney General, to institute proceedings for the appointment of a receiver of such bank to wind up its business.

SEC. 43. On the thirty-first day of December the Commissioner of the Banking Department shall make an annual to report to the report to the Governor of the State, which report shall be published, and shall exhibit:



What report to exhibit,

Commissioner may call a meeting of stockholders of any bank, etc.

Record of stock.

be kept by bank.

First, A summary of the state and condition of every bank from which reports have been received during the year, with an abstract of the whole amount of capital returned by them, the whole amount of their debts and liabilities, the total amount of means and resources, separating the reports of such banks and other corporations, and specifying the amount of lawful money held by banks at the time of their several returns, and such other information in relation to such banks and corporations as in his judgment may be required;

Second, A statement of the banks and corporations whose business has been closed during the year, the amount of their resources and liabilities, and the amount paid to the creditors thereof;

Third, The names and compensation of the clerks employed by him, and the whole amount of expenses of the banking department during the year;

Fourth, The amount of fees received for the examination of banks or other corporations, and fines collected and paid over to the State Treasurer.

SEC. 44. Whenever the Commissioner shall deem it expedient he may call a meeting of the stockholders of any bank, organized under the laws of this State, by a personal notice of such meeting for fifteen days previous thereto, and in case a majority of the stockholders cannot be reached by personal notice, then by publishing such notice at least once in each week for four successive weeks previous to the meeting in a newspaper published in the city, village or county where the bank is located, and if no newspaper is published there, then in the newspaper published at the nearest county seat.

SEC. 45. A book shall be provided and kept by every holders, etc., to bank in which shall be entered the name and residence of the stockholders in the bank, the number of shares held by each, the time when each person became such stockholder, also all transfers of stock, stating the time when made, the number of shares, and by whom transferred. The said book shall at all times be, during the usual hours of transacting business, subject to the inspection of the directors, officers, stockholders and depositors of the bank. A neglect to pro

Subject to in. spection, by whom.



keeping record

provided, shall subject the officers of the bank, whose duty Penalty for not it is to provide and keep the same, to a penalty of one and for refusal hundred dollars for every day's neglect; and a refusal by to exhibit it. such officer to exhibit such book to any person rightfully demanding inspection thereof shall subject him to a penalty of fifty dollars; the said penalty may be sued for and How penalty recovered with costs by any person who will prosecute for the same in the name of the people of the State, and shall be paid to the State Treasurer for the credit of the banking department. In all actions, suits and proceedings under this Book to be act, the said book shall be presumptive evidence of the facts evidence.

therein stated.



SEC. 46. The stockholders of every bank shall be indi- Liability of vidually liable, equally and ratably, and not one for another, for the benefit of the depositors in said bank to the amount of their stock at the par value thereof, in addition the said stock; but persons holding stock as executors, administrators, guardians or trustees, and persons holding stock as collateral security, shall not be personally liable as stockholders, but the assets and funds in their hands constituting the trust shall be liable to the same extent as the testator, intestate, ward or person interested in such trust funds would be, if living or competent to act; and the person pledging such stock shall be deemed the stockholder and liable under this section. Such liability may be enforced in a suit at law or How liability in equity by any such bank in process of liquidation, or by enforced. any receiver, or other officer succeeding to the legal rights of said bank.

tions null and

SEC. 47. All transfers of notes, bonds, bills of exchange Certain transac or other evidences of debt owing to any bank, or of deposits vold. to its credit, all assignments of mortgages, or other security on real estate or judgments or decrees in its favor, or deposits of money, bills, or other valuable things for its use, or for the use of its stockholders or creditors, all payments of money, either after the commission of an act of insolvency or in contemplation thereof, with a view to prevent application of its assets in the manner prescribed in this act, or with a view to the preference of one creditor over another, shall be held to be null and void.


SEC. 48. Legal process against any such bank shall be service of legal served upon its president or cashier or treasurer in the process against county where its business office is located or the plaintiff resides, or by leaving any attested copy at its banking house during banking hours with the teller, clerk or any officer of the bank.


SEC. 49. All proceedings by any bank to enjoin the Com- Proceedings to missioner in the discharge of his duties under the provisions of this act shall be had in the county where said bank is located, or before the supreme court of this State.

General to

SEC. 50. All suits and proceedings arising out of the When Attorney provisions of law governing banks in which the State or any supervise suits of its officers or agents shall be parties shall be conducted under this act.


Coples of certain

papers, etc., evidence.

Liability of

banks, etc., for money, etc., limited.


Further proviso.

Amendment of 1891.

Proceedings when bank de


under the direction and supervision of the Attorney General. SEC. 51. Copies of all records and papers in the office of the Commissioner of the Banking Department certified by him, and authenticated by his seal of office, shall be evidence in all cases equally and with like effect as the original.

SEC. 52. The total liabilities of any bank or any person or of any company, corporation or firm for money advanced, including in the liabilities of the company or firm the liabilities of the several members thereof, except special partners, shall at no time exceed one-tenth part of the amount of the capital and surplus of such bank; but the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed: Provided, however, That the foregoing limitations shall not apply to loans upon real estate or other collateral securities authorized by this act: Provided further, That by a two-thirds vote of the directors the liabilities of any bank or any person or company or corporation or firm, may be increased to a sum not exceeding one-fifth of the capital and surplus of the bank.

SEC. 53. Any bank organized under the provisions of this cides to go into act may go into liquidation and be closed by a vote of its stockholders owning two-thirds of its capital. Whenever a vote is taken to go into liquidation it shall be the duty of the board of directors to cause notice of this fact to be certified, under the seal of the bank, by its president, cashier or treasurer, to the Commissioner of the Banking Department, and publication thereof, notifying creditors to present their claims against the bank for payment, shall be made once in each week for eight successive weeks, in a newspaper published in the city of Detroit, and also in a newspaper published in the city, village or county in which the bank is located, or if no newspaper is there published then in the newspaper published at the nearest county seat.

Consolidation of banks

When receiver may be ap pointed.

SEC. 54. A bank which is in good faith winding up its business for the purpose of consolidating with some other bank may transfer its assets and liabilities to the bank with which it is in process of consolidation; but no such consolidation of banks shall be made without the consent of the Commissioner of the Banking Department, and not then to defeat or defraud any of the creditors in the collection of their claims against said banks, or either of them.

SEC. 55. On becoming satisfied that any bank has refused to pay its deposits in accordance with the terms on which such deposits were received (if received in accordance with the provisions of this act), or that any bank has become insolvent, or that its capital has become impaired, or that any bank has violated any of the provisions of this act, or for any cause hereinbefore or hereinafter stated, the Com


may forthwith


of 1893.


possession of the books, records and assets of every descrip- Amendment tion of such bank, and hold the same, and said books, records and assets shall not be subject to any levies and attachments, until a court of competent jurisdiction can be applied to for the appointment of a receiver for such bank who, under the direction of such court, 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 sell or compound all bad or doubtful debts, and 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 all individual liability of the stockholders. Such receiver shall pay over all money so Duty of receiver. collected or received to the State Treasurer, and also make report to the Commissioner of all his acts and proceedings.

missioner on

SEC. 56. The Commissioner shall, upon the appointment Duty of Com of a receiver, as above provided, cause notice to be given by appointment advertising in such newspapers as he may direct once in of receiver. each week, for twelve successive weeks, calling on all persons who may have claims against such bank to present the same to said receiver and make legal proof thereof.


SEC. 57. From time to time, under the direction of the Dividends to Commissioner of the Banking Department, the receiver shall be made by make ratable dividends of the moneys realized or collected by him on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and the remainder of the proceeds, if any, after the costs and expenses of such proceedings and all debts and obligations of the bank are satisfied, shall be paid over to the stockholders of such bank, or their legal representatives in proportion to the stock by them respectively held.


SEC. 58. Every president, director, cashier, treasurer, teller, Penalty for clerk or agent of any bank, who embezzles, abstracts or will- etc." fully misapplies any of the moneys, funds, credits or property of the bank, whether owned by it or held in trust, or who, without authority of the directors, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment or decree, or who makes any false entry in any book, report or statement of the bank, with intent in either case to injure or defraud the bank, or any company, corporation or person or to deceive any officer of the bank, or any agent appointed to examine the affairs of such bank, and any person who with like intent aids or abets any officer, clerk or agent, in violation of this section, or who shall issue or cause to be issued, or put in circulation, any bill, note or other evidence of debt to circulate as money, upon conviction thereof, shall be imprisoned in the State Prison or in the State House of Correction and Reformatory at Ionia, not to exceed twenty years.

Taxation of

SEC. 59. All real estate owned by any bank may be taxed as other real estate in the city, village or township where bank property.

Act to apply to all State banks,

may re-organize.

the same may be situated, and the residue of its capital and surplus shall be taxed as personal property, but the assessment thereof for taxation shall not be at a greater rate than is assessed on money capital in the hands of individual citizens in the same city, village or township.

SEC. 60. The provisions of this act shall apply to and govern all State banks organized and now existing within this State, and all such banks shall, on or before the first day of January next following the time when this act becomes operative, file with the Commissioner of the Banking Department a certificate executed by the executive officers of each bank in substantial conformity to the requirements of original article of incorporation provided for in section two Existing banks (2) of this act; or any bank so existing may within the same time re-organize under this act, and when so re-organized all securities, real estate, property and assets of every kind shall become vested in such re-organized bank without any formal conveyance or transfer, but no such re-organization shall have the effect to discharge the original bank, its directors or stockholders from any liability to its depositors, or any other person, but the same shall continue until legally discharged, Re-organization and such re-organized bank shall be legally liable to pay every claim, demand and obligation existing against the bank whose assets and property, or any part thereof, it has received by virtue of such re-organization.

not to discharge existing liabil ities.

Penalty for

by officer, etc., of bank.

SEC. 61. Every officer or employé of a bank required by false swearing this act to take any oath or affirmation, who shall willfully swear or affirm falsely, shall be deemed guilty of perjury, and upon conviction thereof shall be punished as provided by the laws of this State in case of perjury.


exchange, etc.

Provisions for
this act.

Acts repealed.

SEC. 62. Nothing in this act contained shall be so construed as to prevent any bank organized or doing business under this act from making or issuing bills of exchange on foreign countries or places beyond jurisdiction of the United States; which bills of exchange may be made payable at or with the customary usance, and at or within ninety days' sight, but no such draft or bill of exchange shall be used or put in circulation as money by any such bank.

SEC. 63. The legislature may at any regular session thereof alter or amend this act, or any part thereof, by a vote of two-thirds of the members of the Senate and House of Representatives constituting said bodies; and hereafter it shall not be necessary to submit any such proposed alteration or amendment to the electors of the State for adoption or approval, but all such acts shall be valid and effectual when so passed by the legislature and approved as other laws are in accordance with the constitution of this State.

SEC. 64. All acts and parts of acts of which this act is amendatory or supplementary, inconsistent with the pro

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