12 March 1842 § 8. P. L. 72. 22 March 1817 § 2. 6 Sm. 441. Penalty for issuing notes by any but incorporated banks. Ibid. § 3. prosecu Mode of 99. No medium shall be received in the payment of tolls, taxes or other revenue of the commonwealth, other than gold and silver, or the notes of specie-paying banks. XII. Penalties for unauthorized issue of notes. 100. No incorporated body, public officer, association or partnership, or private individual, other than such as have been expressly incorporated or established for the purpose of banking, shall make, issue, re-issue or circulate any promissory note, ticket or engagement of credit in the nature of a bank-note, of any denomination or amount whatsoever, other than such as have been issued by banks lawfully and expressly established:(n) and from and after the first day of May next, no such incorporated body, public officer, association or partnership, shall receive any such note, ticket or engagement of credit, other than those above excepted, or those made and issued by it or himself, or under its or his immediate authority, and that for the mere purpose of cancelling or destroying the same, under the penalty, in the case of a public officer, of ten dollars, and in the case of a corporation, association or partnership, fifty dollars for each and every note so made, issued, re-issued, circulated, paid or received, to be recovered by any person or persons suing for the same, before any alderman or justice of the peace within this commonwealth, as debts under one hundred dollars are by law recoverable.(0) 101. The mode of proceeding against any bank or other corporation under this act, shall be by summons served on the president, cashier or other chief officer, tion for violation. director or manager of such bank or corporation, and where judgment shall be entered thereon, such judgment shall be as well against such bank or corporation as against such president, cashier, chief officer, manager or director, or so many of them severally whereon such service shall have been made, and execution may thereupon forthwith issue as well against such bank or corporation, to be levied upon any debts due to them, as upon the shares of their capital stock or other property, real, personal or mixed, and against each such president, cashier, chief officer, director or manager, to be levied on his personal or real property, or if a sufficiency thereof cannot be found, or plaintiff shall so require, against their and each of their persons, to be proceeded on as is usual in the case of a capias ad satisfaciendum. Ibid. § 4. Penalty for second and subsequent violation. Competency of witnesses. Ibid. § 5. Quo warranto may unpaid. 102. For a second and each subsequent act of making, issuing, re-issuing, circulating, passing or receiving, otherwise than is hereinbefore excepted, any of the notes, tickets or engagements of credit aforesaid, the penalty or sum to be recovered, shall be increased in an amount equal to the original penalty or sum(p) mentioned in the first section of this act, but shall in no case exceed fifty dollars on an individual not a president, cashier, chief officer, director or manager of any bank or corporation, association or partnership, or five hundred dollars in the case of such bank or corporation, association or partnership; any such penalty or debt to be recovered, where it exceeds one hundred dollars, before the court of common pleas of the proper county, in the manner and by means of process, judgment and execution, as is described in the 2d section of this act; and all sums recovered under this act shall be one-half thereof paid to the person or persons suing for the same, to his or their own use, and the other half into the hands of the treasurer or county commissioners of the county wherein the recovery shall be had, for the use thereof Provided always, That no public officer or private individual shall be excluded from the performance of his duties, or from being a competent witness in any suit under this act, by reason of his being subject to the payment of county rates and levies therein, or by reason of one moiety of the sums to be recovered being payable to the county treasurer or commissioners, as is hereinbefore directed. 103. Whenever judgment shall have been had against any such bank or corporation, in any two suits in the court of common pleas, or before two different justices issue after two con- of the peace, and certified copies or transcripts of such judgments filed with the victions remaining prothonotary of the court of common pleas of the proper county, and the same should have remained unpaid for three months, it shall be the duty of the attorneygeneral, or his deputy in such county, to file in said court an information in the nature of a quo warranto, to the process awarded on which shall be served by the sheriff or his deputy, on the president, cashier or other chief officer, or any director or manager of such bank or corporation, and on a return of service in manner aforesaid, to the satisfaction of such court, they shall proceed therein as nearly as may be in the manner directed and practised under writs of quo warranto; and in case of a verdict for the commonwealth, the court, instead of the usual judgment in such cases, shall have power to inflict a penalty not exceeding five thousand Charter may be declared void. (n) As to the notes prohibited by the clause, see Megargell v. Hazleton Coal Co., 8 W. & S. 342. Hazleton Coal Co. v. Megargell, 4 P. S. 324. Sylvester v. Girard, 4 R. 185. And as to what is sufficient evidence of making and issuing within the act, see Hazleton Coal Co. v. Megargell, 4 P. S. 324. It is, nevertheless, an indictable offence to utter and pub- dollars, and to adjudge the charter and corporate power of such bank or other 22 March 1817 § 5. incorporated company, thenceforth subject to be forfeited, annulled and declared for ever void by the legislature. (q) 6 Sm. 441. Ibid. § 6. lation of this act. 104. It shall and may be lawful for any justice of the peace, in every case where a second suit shall be brought against any incorporated road, bridge or canal com- Proceedings before pany, after a judgment under this act against such company, to call to his aid any justices in case of other justice of the peace of the same county, and they shall issue a precept second suit for viodirected to any constable, commanding him to summon five disinterested and judicious freeholders, named by said justices, to meet at a certain time and place in the said precept to be mentioned, of which meeting notice shall be given to the keeper of the gate or turnpike nearest thereto, and the said justices shall then and there, by the oaths or affirmations of the said freeholders, inquire whether such company or its officers, or any of them, after a judgment lawfully rendered against such company or its officers, or any of them, under this act, shall have a second time made, issued, re-issued, circulated, received or paid any note, ticket or engagement of credit not authorized by law, or contrary to the provisions of this act, and shall cause an inquisition to be made under their hands and seals, and under the hands and seals of the said freeholders, and if the said company or its officers, or any of them, shall be found by the said inquisition to have a second time made, issued, re-issued, circulated, received or paid any note, ticket or engagement of credit not authorized by law, or contrary to the provisions of the act, they shall so certify, and send one copy of the said inquisition to each turnpike or gate-keeper in the proper county, or in case of a bridge between two counties, to the toll-gatherers, if such there be, at each end thereof, and from thenceforth all tolls which might otherwise have been demanded by reason of the use or passage, on, through or over such road, canal or bridge, shall be suspended: Provided, Such suspension shall not, in the first instance, continue more than one week, for the second not more than two weeks, for the third three, and for each subsequent offence one calendar month: Provided also, That no certiorari shall Parties may apbe issued out of any court of record within this commonwealth, against any pro- rari to issue. peal, but no certiceedings had before any justice of the peace under the provisions of this act, but in all cases either party may appeal from their proceedings to the next court of common pleas. Ibid. § 7. 105. So much of any act of assembly heretofore passed, as deprives or prevents the holder of any note, ticket or engagement of credit in the nature of a bank-note, Suits may be mainfrom recovering from any individual, bank or corporation, association or partner- tained on notes so ship, by whom, or by any of whose officers or agents, the same has been made, signed issued. or issued, by reason of such note having been made, signed or issued without or in contradiction to law, is hereby repealed; and the holder of every such note shall have the same legal remedy for the recovery of the amount thereof, from the party or parties, whether corporate, association or partnership, or individual, who made, signed or issued the same, as can by the provisions of this act, or by the existing laws of this commonwealth, be had on a similar note, ticket or engagement of credit, that has been lawfully issued.(r) kind, not to be 106. It shall not be lawful for any person or persons, or body corporate, (s) with 12 April 1828 § 1. the intention to create or put in circulation or continue in circulation, a paper 10 Sm. 159. circulating medium, to issue, circulate, or directly or indirectly cause to be issued Notes under five or circulated, any note, bill, check, ticket or paper, purporting or evidencing, or dollars, of any intended to purport or evidence, that any sum less than five dollars will be paid to issued, as a circuthe order of any person, or to any person receiving or holding such note, bill, lating medium. check, ticket or paper, or to the bearer of the same, or that it will be received in payment of any debt or demand, or that the bearer of the same or any person receiving or holding the same, will be entitled to receive any goods or effects of the value of any sum less than five dollars and from and after the said first day of January next, it shall not be lawful for any person or persons or body corporate, to make, issue or pay away, pass, exchange or transfer, or cause to be made, issued, paid away, passed, exchanged or transferred, any bank-note, bill, ticket or paper, purporting to be a bank-note, of the nature, character or appearance of a banknote, or calculated for circulation as a bank-note, of any less denomination than five dollars. Ibid. § 2. 107. Any and every person and persons and body corporate offending against any of the provisions of the first section of this act shall forfeit and pay for every Penalty for so such offence the sum of five dollars, to be recovered by any person suing for the doing." same, as debts of like amount are by law recoverable, one-half for his own use, and the other half to be for the use of the overseers, guardians or directors of the poor of the city, county, district or township within which such offence shall have been committed.(t) (q) This act has been suspended as to certain counties; see infra 114. (r) Notes issued by an unincorporated association are recoverable in an action against the members as partners; and although purporting to be payable "out of their joint funds, according to their articles of asso ciation," yet the members are personally liable. Hess v. Werts, 4 S. & R. 356. (s) This act applies to all corporations, municipal, public or private. McCormick v. Allegheny Citý, † L. I. 150. (t) See title "Limitation of Actions." The limita 12 April 1828 § 3. 10 Sm. 159. tained thereon. 108. No such note, bill, check, ticket or paper mentioned in the first section of this act shall be held or taken to be void or of null effect, by reason thereof; but Suits may be main- all suits and actions may be brought and sustained on such note, bill, check, ticket or paper, anything herein contained to the contrary notwithstanding; and in such suits or actions, if the same shall be determined in favor of the plaintiff, judgment shall be rendered for the principal sum due, on such note, bill, check, ticket or paper, together with the interest thereon at the rate hereinafter provided for, and full costs. 109. The drawer and acceptor of any such note, bill, check, ticket or paper, and every person or body corporate who shall indorse or in any way put his or their names upon the same, shall be liable to pay to any holder thereof, together with the principal sum expressed therein, interest thereon to be calculated at and after the rate of twenty per cent per annum, from the time when such note, bill, check, ticket or paper was first issued, and that without any demand upon the drawer or acceptor or any indorser or party to the same. 110. Any person or persons, or body corporate, who shall have paid away, passed, exchanged or transferred, any such note, bill, check, ticket or paper, shall be liable to any holder thereof, and shall pay to him or her, together with the principal sum expressed therein, interest thereon to be calculated at and after the rate of twenty per cent per annum, from the time when such note, bill, check, ticket or paper was first issued, and that without any demand on the drawer or acceptor, or any indorser or party to the same.(u) 111. In the trial or hearing of any suit or action, which may be brought upon any such note, bill, check, ticket or paper, if the time when the same was first issued shall not be clearly proved, then the same shall be deemed and taken to have been first issued one year before the bringing of such suit of action, and interest shall be calculated thereon at the rate of twenty per cent accordingly. (v) 112. It shall not hereafter be lawful for any banking institution, or other corporation or individual, to issue or put in circulation any note, bill, check or paper of any kind, to circulate as currency (w) under the denomination of five dollars, *** and upon conviction thereof of any president, cashier, clerk or other officer of any corporation or individual, before any court of quarter sessions, of issuing or putting the same in circulation, of which their name or signature to the said note, bill, check or other paper shall be evidence, the said president, cashier, clerk or other officer or individual shall be fined in any sum not exceeding five hundred dollars, at the discretion of the said court, one-half for the use of the prosecutor, and the other half for the use of the county, and the said bank or corporation shall forfeit its charter. 113. No bank, savings-fund, insurance or trust company shall, directly or indirectly, purchase, or be concerned in the purchase of the notes of any of the incorporated banks of this state, at less than their par value; and any and every of the officers of said institutions violating the provisions of this section, shall be deemed guilty of a misdemeanor, punishable, upon conviction, by a fine of not less than five hundred dollars, nor more than one thousand dollars; one-half to be paid to the informer, and the other half to the use of the commonwealth. 114. That the fines and penalties imposed by the 2d section of the act of 22d March, Anno Domini 1817,(x) the 1st and 2d sections of the act of 12th April, Anno Domini 1828, (y) and all other laws of the commonwealth imposing or inflicting fines and penalties, for issuing or circulating, or causing to be issued or circulated, any note, bill, check, draft, order, ticket or paper, intending the same to be used as a circulating medium, be and the same are hereby suspended in said counties of Tioga, Potter, McKean, Lycoming, Bedford and Warren,(z) for all violations of said laws prior to the passage of this act; and that no fines or penalties shall be inflicted or imposed upon any corporation, person or persons, within said counties, for the aforesaid violations of the law: Provided, however, That if any person or persons, having issued any such note, bill, check, draft, order, ticket or paper, shall neglect or refuse to pay the same, when presented in the manner stipulated in said note, check, bill, draft, order, ticket or paper, said person or persons shall not be entitled to claim the benefit of this act, but shall remain liable to all the penalties imposed by existing laws. tion does not affect the right of the holder to recover the amount due on such notes, with legal interest. McCormick v. Allegheny City, 7 L. I. 150. (u) A holder who brings his suit two years after their issue, would recover interest, to be calculated for the first year at six per cent, and at the rate of twenty per cent thereafter, until judgment. If interest be reserved by the notes, it is not to be added to the penalty. McCormick v. Allegheny City, 7 L. I. 150. XIII. Of bank statements. 115. It shall be the duty of the auditor-general to require the cashiers of the 16 April 1850 § 11. said banks, on some discount day to be designated by him, in every quarter of P. L. 484. the then current year, one of which shall be in the month of November, to make Auditor-general to and return to him the exhibits hereinafter provided for; which exhibits the audi- require quarterly tor-general shall prepare in tabular form, and communicate the same to both statements. branches of the legislature within ten days after their meeting. What such ex 116. It shall be the duty of the cashier of any such bank, for the time being, Ibid. § 12. to prepare, upon the requisition of the auditor-general, a just and full exhibit of the affairs and condition of the bank, on at least four different discount days of the hibits to contain. then current year, to be designated by the auditor-general, one of which shall be in the month of November, so as to exhibit the entire amount of the assets of the bank, and every item thereof, under the separate heads; and also of the entire amount of the indebtedness and liabilities of the bank, and every item thereof, under separate heads, setting forth, on the one side, particularly, so as to give a full and proper view of all the assets belonging to the bank, first, the amount of gold and silver in the vaults of the bank; the amount of current notes, checks and bills of other banks; the amount of uncurrent notes, checks and bills of other banks; the amount of any other obligations of other banks; the amount of bills and notes discounted, designating the amount under protest; the amount of the mortgages of the bank, and the assessed value, for the preceding year, of the real estate bound by such mortgages; the amount of prior mortgages, judgments and other liens; the amount of judgments held by the bank, and the assessed value, for the preceding year, of the real estate bound by such judgments; the amount of prior judgments, mortgages and other liens; the amount of the real estate held and owned by the bank, and the assessed value, for the preceding year, of each separate piece or parcel of real estate owned by the bank, and its location; the amount due from other banks that are solvent, giving the name of each bank from which the same is due, together with the amount so due by each one of said banks; the amount due from insolvent banks, the names of such banks, and the amount due from each one; the amount of public and corporate stocks and loans, the nature and kind of loans and stocks, designating particularly in what companies or corporations the stocks or loans are held, and the amount of stocks or loans of each company or corporation so held; the amount of bonds held, designating particularly the nature and character of the bonds held; the amount of treasury notes; the amount of claims against individuals or corporations that are disputed or in controversy; the amount of all the other debts and claims either due or to become due; and the value of any other property of the bank as the same stands charged on the books or otherwise; which said exhibit shall also set forth on the other side, the debts and liabilities of the bank on the discount days designated by the auditor-general, specifying separately, under distinct heads, the various kinds of liabilities and indebtedness; the amount of capital stock actually paid in; the amount of the circulation; the amount of deposits, (a) certificates of deposits; the amount due the commonwealth; the amount due to corporations; the amount due to banks; the amount due to individuals; and the amount of claims against the bank remaining in controversy; and any other items of indebtedness or liabilities not embraced in the foregoing specifications. Ibid. § 13. 117. It shall moreover be the duty of the cashier, in preparing the exhibit required in the preceding section of this act, for the month of November, preced- Cashiers to return ing the meeting of the legislature, to state, in regard to each item, and subdivision annually the marof the assets of the bank, what is, in the judgment of the cashier, the actual ketable value of marketable cash value of each item of the same; and the said amount of current notes of other banks on hand at the time the exhibit is made out; also the amount of uncurrent notes held by the bank. assets. Ibid. § 14. Exhibits to be 118. The exhibit agreeably to the 12th and 13th sections of this act, shall be verified and accompanied with the oath or affirmation of the cashier of the said bank, duly attested before some officer authorized by law to administer oaths, to verified by oath. the following effect, namely: that he, the cashier, has carefully examined the books and muniments of the bank, and has compared the same with the said exhibit, and that he verily believes the said exhibit or statement presents a true, fair and full view of the actual condition of the bank; and in addition to the above, the exhibit made for the discount day in the month of November preceding the meeting of the legislature, shall be accompanied with the oath or affirmation of the cashier of the said bank, setting forth that he has inspected the several items of assets, or the evidence thereof, in the said exhibit referred to; and that he has, (a) This does not authorize the receiving as a special deposit a sealed package of small notes, issued by a corporation without authority of law. And the receipt of such deposit by the cashier, without the permission of the directors, creates no contract for safe-keeping on the part of the bank. Lloyd v. West Branch Bank, 15 P. S. 175. See Bank of Carlisle v. P. L. 484. 16 April 1950 § 14. according to the best of his judgment and ability, valued each of said items of assets at the absolute cash price which it would produce at the time, and that, in his judgment, the actual assets of the bank are intrinsically worth the amount of the valuation so made by him. 13 Oct. 1857 § 2. P. L. 112. 119. In addition to all statements and returns, now required by law, each and every bank in the cities of Philadelphia, Pittsburgh and Allegheny, shall, on the first discount day in January next, and weekly thereafter, and every other bank ments to be made in this commonwealth, on the same day, and monthly thereafter, make up a statein Philadelphia, Weekly state Pittsburgh and ment, to be verified by the oath or affirmation of the president or cashier thereof, showing-1. The amount of its loans and discounts; 2. The amount of specie in the possession of and owned by such bank, and the balance due from other banks, in distinct items; 3. The amount of its notes outstanding; 4. The amount of deposits, including individual deposits and balances due to other banks: which statement shall be published in the next succeeding issue of a newspaper of the county in which the bank is located, or if there be no newspaper in such county, Penalty for omis- then in a newspaper of some neighboring county; (b) and any violation of this law, or failure to comply with its provisions by any president or any cashier of any bank, shall be a misdemeanor, and each of the said officers shall, upon conviction thereof, be punished by a fine of not less than five hundred dollars, nor more than one thousand dollars, at the discretion of the court; one-half to be given to the prosecutor, and one-half to the county in which such bank is located. sion. 17 April 1861 § 4. P. L. 343. Publication of bank statements. 16 April 1850 § 17. P. L. 456. Restriction of liabilities. 22 April 1854 § 1. P. L. 467. How estimated. 16 April 1850 § 18. P. L. 486. Auditor-general returns. 120. Each and every bank in the cities of Philadelphia, Pittsburgh and Alle gheny, shall make and publish a statement of its condition on the first discount days of each and every month of the year; and every other bank of this commonwealth shall publish such statements on the first discount days of February, May, August and November in each year. 121. The total liabilities of any such bank, exclusive of the capital stock, shall not, at any time, exceed three times the amount of the capital stock paid in;(c) nor shall the debts of any kind due and to become due to the bank, ever amount to more than four times the capital stock paid in; and the said banks shall neither loan nor discount when their circulation shall be equal, for thirty consecutive days, to three times the amount of specie, state and United States loans, and notes of specie-paying banks in their possession, belonging to said banks, and any balances standing to the credit thereof, in specie-paying banks, convertible into specie at the pleasure of the said banks. (d) 122. The total liabilities of any bank in this commonwealth, exclusive of the capital stock, shall not at any time exceed three times the amount of the capital stock paid in: Provided, That when the deposits shall exceed one-fourth of the capital stock, such excess shall not be counted as a liability in the meaning of the above prohibition, nor shall the debts due and to become due to any such bank, ever amount (to) more than four times the capital stock paid in, (in) loans to the commonwealth excepted. 123. The auditor-general may at any time require the cashier of any such bank to state and return, on oath or affirmation, the amount of the circulation of the bank for any consecutive period of thirty days, in the current year, which he may require special may designate; and also for the same period, the amount of specie, the state of Pennsylvania and the United States loans, and notes of specie-paying banks, in its possession, belonging to the said bank, and the balance standing to its credit in specie-paying banks, convertible into specie at the pleasure of the bank; and also, the whole amount of its liabilities and debts due and to become due; and if, upon the return so made, it shall appear that any of the provisions of the 17th section of this act have been violated for the said period of thirty days so desig nated by the auditor-general, he shall give notice thereof to the governor, who shall thereupon issue his proclamation, declaring the charter of the said bank to be forfeited. Charter to be forfeited in case of violation. Ibid. § 19. On forfeiture of charter, directors ment. 124. If the charter of any such bank shall be forfeited in manner provided in the preceding section, after proclamation made by the governor, then the directors of said bank shall forthwith make and execute an assignment, in the manner proto execute assign- vided in the 27th section of this act, (e) and thereupon proceedings shall be had in the manner provided in that section; if the directors of the said bank should neglect or refuse to make the assignment provided for in this act, every director so neglecting or refusing shall be guilty of a misdemeanor, and upon conviction in any criminal court in the commonwealth, be imprisoned in the jail of the proper county, for any period not exceeding two years, at the discretion of the court. 3 April 1840. P. L. 716. Punishment of false swearing to statement. 125. The wilful and deliberate false swearing by any officer or agent of any bank, or any other person, to or in relation to any statement or statements required by law to be made, or other duty enjoined by law, shall be deemed perjury in law, and punishable as such; (g) and the confinement within the peniten (b) See infra 120. (c) See act 22 April 1854, § 2, extending this and the 18th section (infra 91) to all banks chartered prior to 1850, P. L. 468. (d) See infra 142. (e) See infra 142. (g) To constitute the offence of perjury under this section, it must appear that the officers of a bank have wilfully violated the provisions of the act. Commonalth v. Megee, 2 Phila. 396. And see tit. "Crimes." |