SECTION 1. Be it enacted by the General Assembly of the State of Arkansas, That there shall be established in this State a bank, under the name and title of "THE REAL ESTATE BANK OF THE STATE OF ARKANSAS," with an original cash capital of two millions of dollars, to be raised by loans or negotiations, on the security of real property, at its cash value, with the guarantee of the public credit, as hereinafter provided; and the institution shall consist of a principal bank and three branches, until such time as the legislature, on petition of the stockholders of said bank, may deem it expedient and necessary to enlarge its capital andestablish others. SEC. 2. And be it further enacted, That the principal office of said bank shall be and remain at the city of Little Rock; and the said branches shall be located and established, one at Washington, in Hempstead county; one at Columbia, in Chicot county; and one at Helena, in Philips county; and the capital stock, authorized to be created by this act, shall be equally divided between said principal bank and the three branches specified, as the permanent capitals of each, unless otherwise directed in the manner hereinafter mentioned. SEC. 3. And be it further enacted, That the branches hereby established shall not be under the government or direction of the principal bank; but the board of directors of each shall be the judges, and have the entire control over the business belonging separately to each branch, so far as relates to the signing and emitting of notes, the extent of loans to be made, the purchase of exchange, and the deposit and direction of funds; Provided, The same is not done to the injury of the general interests of the institution; And provided further, That nothing herein contained shall be construed to extend powers or privileges beyond the control of the central board of directors, hereinafter created. And be it further enacted, That books of subscription, for the sum of two millions two hundred and fifty thousand dollars, divided into shares of one hundred dollars each, and intended to secure the said loan of two millions of dollars, shall be opened on the first Monday in March next, (notice being given in each and all of the newspapers published in this State for at least sixty days previous), at the following places, to wit: At Fayetteville, in Washington county, under the superintendence of Lodowick Brodie, William T. Larremore, and Willis S. Wallace. At Batesville, in Independence county, under the superintendence of John Ringgold, Lawson Henderson, and J. H. Egner. At Helena, in Philips county, under the superintendence of James H. McKenzie, George W. Ferebee, and Henry L. Biscoe. At Columbia, in Chicot county, under the superintendence of B. L. Miles, A. V. Brookie, and Peter Hanger. At Washington, Hempstead county, under the superintendence of Daniel T. Witter, Ephraim Mirick, and Allen M. Oakley. At the city of Little Rock, under the superintendence of James DeBaun, Edward Cross, and John McLain. And said books of subscription shall be kept open from day to day, for the term of forty days from the time of opening the same; at the expiration of which, the before mentioned superintendents shall close said books, and forward them to the managers hereinafter mentioned, together with all the titles and other documents that may have been deposited with them. SEC. 5. And be it further enacted, That immediately after the passage of this act, the governor shall appoint five managers, whose duty it shall be to meet at the city of Little Rock, on or before the first day of May next, and there receive the several books of subscription from the superintendents before mentioned, together with the titles and other documents accompanying the same, and proceed to make out a schedule thereof, stating the name of each subscriber, the county in which he resides, the number of acres of land embraced in his mortgage, its exact location, the amount and number of acres cleared, the character of the improvements thereon, the kind of cultivation, and the value fixed thereon by the appraisers hereinafter mentioned; and if, on examination of the books and documents returned by the superintendents, as required in the fourth section of this act, it should appear that a greater number than twenty-two thousand five hundred shares has been subscribed, then it shall be the duty of said managers to make a statement of the same, and deduct the surplus; first, by striking off all subscriptions that may have been made by persons incompetent to subscribe under any of the provisions of this act, or such as are based upon property, the title to which shall be found bad or doubtful; second, in case the amount subscribed by any person shall exceed the value of the property offered as a security, by reducing the amount of the subscription to the true value thereof; third, by deducting from the largest subscriptions in such manner that no 'subscription shall be reduced in amount while there remains one larger; but if, at the expiration of the said term of forty days, during which the said books of subscription are directed to be kept open in the first instance, the whole amount of twenty-two thousand five hundred shares shall not have been subscribed, then and in that case said books shall again be opened, on the first day of January following, by and under the superintendence of the member of the central board of directors, for the further subscription of such number of shares as shall make up the whole number of twenty-two thousand five hundred, and from year to year, until the whole of said capital stock shall be subscribed; and in case of an excess of subscription, up-n any re-opening of said books, as aforesaid, the reduction thereof and the partition among the subscribers, shall be made in the same manner and by the same rules as are hereinbefore prescribed. SEC. 6. And be it further enacted, That in order to appraise the property of subscribers for stock in said bank, and to fix upon its fair cash value, the governor, immediately after the passage of this act, shall appoint, in each county in this State, three appraisers, whose duty it shall be to examine and value the property of those who wish to become stockholders in said Real Estate Bank, as well as those desirous of obtaining loans on mortgage; and said appraisers shall deliver to all persons whose property they examine and appraise, detailed and authentic certificates of its cash value, the number of acres of which each tract of land is composed, how many acres are cultivated, and how many are not cultivated, the kind of culture, the number of, kind and quality of the buildings, and an estimate of each article; which said certificate shall be signed by said. appraisers, or a majority of them, and sworn to before a judge of the supreme, circuit or county court, or before some legally authorized justice of the peace. SEC. 7. And be it further enacted, That if, upon the return of the books of subscription to the managers before mentioned, it shall appear that eleven thousand two hundred and fifty shares of the capital stock of said bank have been subscribed for, and that all the mortgages intended to secure the same have been perfected to the satisfaction of said managers, they shall cause notice of the same to be given, in all the newspapers published in this State; whereupon the stockholders shall proceed, at the place appointed for the location of the principal bank and each of its branches, to elect a board of directors to consist of seven members, and the governor shall appoint two members on the part of the State, from among the stockholders, besides the seven elected by the stockholders, and who shall continue in office for the term of one year; and the said board of directors, so elected, shall immediately thereafter elect one of said directors to be president, except the directors of the principal bank. SEC. 8. And be it further enacted, That when the election and organization of the boards of directors of the several branches, as provided for in the seventh section of this act, each of them shall select two of their members, (one being a State director), who, with the president of said branch, and three members of the principal bank, shall become members of and form the central board of directors. SEC. 9. And be it further enacted, That the central board of directors shall consist of twelve members, as provided for in section eight of this act, whose duty it shall be, immediately after their appointment, to meet at the city of Little Rock, and elect, from among themselves, a president of said board, who shall also be the president of the principal bank, and hold his office for a term not less than focars; and, upon the final organization of said coal board of directors, they shall apply for and receive from the managers appointed by the governor, all the books, papers, titles, mortgages, and documents, of whatsoever kind they may have in possession, appertaining to the business of said bank, the said managers preserving a certified schedule of the same, as directed to be made in the fifth section of this act, and filing it in the office of the Secretary of State, when the duties of said managers shall cease. The said central board of directors shall also receive from the governor the bonds of the State, (as hereinafter provided for), and appoint two commissioners to negotiate and effect a sale of the same; Provided, That nothing less than the par value shall be received for the said bonds. They shall meet at the banking house of the principal bank, on the first Monday of November and first Monday of May, in each year; and, in case of the absence of the president of the said principal bank, they shall elect a president pro tempore; and the cashier of the principal bank shall be secretary of said board, and it shall be his duty to keep a regular account of its acts and proceedings; and the central board shall possess a revising and controlling power over all the acts and proceedings of the principal bank and branches, so far as may seem necessary and proper for preserving a common concert of operation,. with the view to the credit and welfare of the several banks. It shall assign and transfer any excess of subscription for stock, made at the principal bank or any of the branches, to the office where there is a deficiency of subscriptions, and the stock not taken. It shall lesson or withdraw the capital of any of the offices of said bank, where the same cannot be employed to profit and advantage, and where, after the first year, a dividend of six per cent. per annum cannot be divided, and transfer the same to such bank, branch or branches, as are deficient and in want of capital. It shall attend to the payment of the interest, as it becomes due, on the State bonds and all loans negotiated. It shall ascertain and strike the dividends of the profits, as well for the principal bank as for the branches, and attend to the payment of them to the individual stockholders, as hereinafter provided. It shall settle and control all the general accounts of the institution; and finally, it shall exercise such other powers, for the well-governing and ordering the affairs of the said banks, as may be deemed necessary and proper to advance the general interests; Provided, The same be not contrary to the provisions of this charter, or the laws of this State. SEC. 10. And be it further enacted, That in order to facilitate the said Real Estate Bank in the negotiation of said loan of two millions of dollars, the faith and credit of the State is hereby pledged for the security of the capital and interest; and that two thousand bonds, of one thousand dollars each, payable in twentyfive years, and bearing interest at the rate of five per cent. per annum, shall be subscribed by the governor, to the order of the said Real Estate Bank of the State of Arkansas, countersigned by the treasurer and under the seal of the State. Said bond to be in the following words, to wit: acknowledges to be indebted to the Real Estate Bank of the principal. In testimony whereof, The governor of the State of Arkansas has signed, and the treasurer of the State has countersigned these presents, and caused the seal of the State to be affixed thereto, at Little Rock, this day of in the year of our Lord one thousand eight hundred and The said bonds may be transferable, by the endorsement of the president and of the cashier of said bank, to the order of any person whomsoever; and the said endorsement shall fix the place the said principal and interest shall be paid, and all expenses attending the issuing said bonds shall be paid from the funds of the bank. SEC. 11. And be it further enacted, That both the capital and interest of the said bonds shall be paid by said bank, as the same shall become due and payable. SEC. 12. And be it further enacted, That there shall be allowed twelve and a half cents only for fixing the seal of the State to each of the bonds of the State mentioned in the tenth section of this act. SEC. 13. And be it further enacted, That all the subscriptions to the capital stock of said bank, shall be guaranteed and secured by mortgages and bonds, executed to said Real Estate Bank of the State of Arkansas, to be in all cases at least equal to the amount of stock subscribed, which said mortgage shall be conditioned for the payment of all moneys received from said bank on account of subscriptions for stock, and for the final payment of the bonds of the State and the interest thereon, subject to such rules, regulations and restrictions as may be hereinafter provided; which said mortgages shall form the basis of, and stand as a full security for, the loan or loans, and the interests thereon, which the said directors are authorized to make, and designated in the first section of this act, as forming the capital of said bank; and that it shall be competent to all persons, citizens of this State, who shall, in good faith, be the owners and possessors of real property within the State, to become subscribers to the capital stock of said bank, under the rules and regulations established by this act. SEC. 14. And be it further enacted, That, for the guarantee of the bonds to be emitted by the State, in favor of the said Real Estate Bank, and of the interest thereof. and for which, the State pledges its th hands mortgages executed for stock, are hereby transferred tourivileged |