33. At the time of making any such payment, the corporation Statement of making the same, shall cause to be delivered to the treasurer of this stuck paid in state, a statement, signed by the president and cashier of the corporation, and verified by their oath, duly made before some officer authorised to administer oaths, specifying the actual amount of the capital stock of such corporation paid in, and designating in such statement, the amount of said capital stock, as shall be owned by the

state.

$4. The said annual payments shall continue to be made until Bank fund. every such monied incorporation shall have paid into the treasury, three per cent. upon its capital stock, which shall be and remain a perpetual fund, to be denominated the "bank fund," and to be inviolably appropriated and applied to the payment of such portion of the debts, exclusive of the capital stock, of any of the said corporations which shall become insolvent, as shall remain unpaid, after applying the property and effects of such insolvent corporation, as hereafter provided.

and treasurer

$5. The comptroller and treasurer of this state, shall keep proper comptroller accounts of the said bank fund, separate and distinct from the funds to keep ne of this state; and the comptroller shall from time to time report to the counts. legislature the condition thereof.

$6. The said fund shall be the property of the corporations by Fund how to which the same shall be paid, in proportion to the amount which be invested. each of such corporations shall have contributed thereto; but the comptroller shall have power, and it shall be his duty, from time to time, to invest the same, and all monies belonging thereto, in the manner provided by law in respect to the common school fund. And whenever it shall become necessary for the purpose of meeting any charges on the said fund, to sell any stocks in which such fund or any part thereof may have been invested, the comptroller shall have power to make such sale.

payable.

$7. The income arising from said fund, after deducting thereout Income when the salaries of the bank commissioners herein after mentioned, shall and how annually be paid by the comptroller to the several corporations by which the said fund shall be created, in proportion to the amount which each of the said corporations shall have contributed thereto : but no corporation shall be entitled to any part of the said income, after it shall become insolvent, or shall be dissolved, or its charter shall expire.

cases of re

§ 8. Whenever the fund created by this act shall be reduced by the Payments in payment of the debts of an insolvent corporation, to be made as here- duction of in after provided, below the sum as provided in the fourth section of fund. this act, every monied corporation then existing, which shall be subject to this act, and every such corporation thereafter to be created, shall, on or before the first day of January in every year thereafter, pay to the treasurer of this state, such sum to be designated by the comptroller, not exceeding a sum equal to one-half of one per cent. on its capital stock, as herein before provided; which last mentioned annual payments shall continue to be made by every corporation subject to the operation of this act, until the aforesaid fund shall be reimbursed, and made to amount to the sum as provided in the fourth

Duty of court of chancery

becomes

insolvent.

section; after which, such annual payments shall be suspended, until it shall become necessary again to resort to the said fund, by reason of the insolvency of any such corporation, as herein after provided, when the said payments shall be resumed in manner aforesaid; and so on, from time to time, as occasion may require.

$ 9. Whenever any corporation subject to the operation of this act, when a bank shall become insolvent, and shall be proceeded against as herein after provided, it shall be the duty of the court of chancery, immediately after a final dividend of the property and effects of such insolvent corporation shall have been made among the creditors thereof, to cause an order to be entered on its minutes, setting forth,

Receiver.

Duty of comptroller.

In case of

1. The total amount of debts against the said corporation, ascertained and established by the said court, including lawful interest thereon:

2. The nett amount of monies derived from the property and effects of the said corporation, and applied, under the direction of the said court, towards the satisfaction of such debts: and,

3. The total amount of monies then requisite to pay off and discharge the said debts.

Such order shall also direct the receiver appointed to take charge of the property and effects of the corporation, to apply to, and receive from, the comptroller of this state, in the manner herein after provided, the sum which shall be required to pay off and discharge the said debts.

$10. Upon such receiver filing with the comptroller of this state, a copy of such order, duly certified by the proper officer, and countersigned by the chancellor, it shall be the duty of the said comptroller to draw his warrant on the treasurer, in favor of such receiver, for such sum, not exceeding the amount of the bank fund, as may have been declared by the said court of chancery to be necessary to satisfy the debts of the said corporation; and the monies paid to such receiver by such warrant, shall be paid out by him, under the direction of the court of chancery, to the several creditors of the corporation. $11. If at the time of filing with the comptroller the copy of such bank fund. order, the bank fund shall be insufficient to satisfy all the debts of the insolvent corporation, a sum sufficient to satisfy the residue of such debts as shall remain unpaid, shall be paid to such receiver, in the manner provided in the last preceding section, out of the first monies that shall thereafter be paid to the treasurer pursuant to the eighth section of this act; and the monies so paid to such receiver, shall be paid out by him in the manner required in the last preceding section. Mon is paid $ 12. The monies so paid out of the treasury, and all other monies required by this act to be paid out of the treasury, shall be a charge upon the bank fund hereby created.

deficiency of

how to be

charged.

On expiration

$ 13. Whenever the charter of any monied corporation, subject to of a charter. the provisions of this act, shall expire, every such corporation shall be entitled to receive its proportional share of said bank fund, which such corporation may have contributed thereto, after deducting thereout a proportional part of the charges upon the said fund, and which share the comptroller is hereby authorised to pay to said corporation.

14. No creditor of any insolvent corporation shall, by virtue of Interesa this act, receive interest upon his debt against such corporation, from and after the time such order is made, as is required by the ninth section of this act: nor shall such creditor be entitled to interest anterior to the presentation of his demand against such corporation, to the receiver that shall be appointed to take charge of the property and effects of such corporations.

missioners

duty.

$ 15. Three persons, to be styled "the Bank Commissioners of Bank comthe state of New-York," shall be appointed in the manner herein after and their provided; whose duty, or the duty of one of whom it shall be, once at least in every four months, to visit every monied corporation upon which the provisions of this act shall be binding; and thoroughly to inspect the affairs of the said monied corporations; to examine all the books, papers, notes, bonds and other evidences of debt of said corporations; to compare the funds and property of said corporations with the statements to be made by them as herein after provided; to ascertain the quantity of specie the said corporations have on hand; and generally, to make such other inquiries as may be necessary to ascertain the actual condition of the said corporations, and their ability to fulfil all the engagements made by them.

$ 16. It shall be the duty of the said commissioners, or some one How often to of them, to visit and inspect the condition and affairs of any monied visit banks. corporation, more frequently than once in every four months, if required so to do, by any three of the monied corporations subject to the provisions of this act.

officers.

$ 17. The said commissioners, or either of them, shall have power To examino to examine upon oath, all the officers, servants or agents of said corporations, or any other person, in relation to the affairs and condition of said corporations; which oath the said commissioners, or either of them, are personally authorised to administer.

an injunction

$ 18. If the said commissioners shall ascertain from such inspection To apply for and examination, or in any other manner, that any of said corpora- in certain tions are insolvent, or shall have violated any of the provisions of their casos. act or acts of incorporation, or of any other act binding on such corporations, the said commissioners shall immediately apply to the court of chancery, upon bill or petition, for an injunction against such corporation and its officers; and the same proceedings shall in all respects be had, and the court shall possess the like powers upon such application, as are provided by law, in respect to such applications, when made by the attorney-general, or by any creditor.

ture.

$19. It shall be the duty of the said commissioners, in the month To report to of January in each year, to report to the legislature, the manner in the legisla which they have discharged the duties imposed upon them; and to accompany such report by such abstracts from the reports made to them, and by such other statements as they may deem useful.

Commission

appointed.

$ 20. The governor shall nominate, and with the consent of the senate, appoint one of the said bank commissioners; and the several er how to be monied corporations subject to the provisions of this act, shall appoint two of said commissioners, in the manner following: Each of said corporations existing in the first, second and third senate districts, shall choose one delegate, which delegates shall assemble in conven

Ib.

toin at the City-Hall of the city of New-York, at such time as shall be designated by the governor; the said delegates, or a majority of them, when so assembled together, on the day so designated, at the hour of four o'clock in the afternoon, shall proceed to organize the convention, by appointing one of their number chairman, and another of their number secretary; when so organized, the said delegates shall proceed to vote for one commissioner, by ballot; each delegate shall be entitled to one vote for every five thousand dollars of the capital stock of the monied corporation he represents, paid in, which shall be ascertained by the affidavit, duly made, of the president and cashier of each corporation, to be presented by the respective delegates at the time of such meeting; and the person receiving a majority of all the votes given by said delegates, for the said office of commissioner, shall be deemed duly appointed. A certificate of every such appointment, signed by the chairman and secretary of the convention, shall be filed in the office of the secretary of state.

$ 21. The monied corporations subject to the provisions of this act, existing in the fourth, fifth, sixth, seventh and eighth senate districts, shall likewise, by delegates, at the village of Auburn, at such time as shall be designated by the governor, choose one commissioner, in the same manner as is provided in the last preceding section. In case of va- $ 22. Whenever a vacancy shall happen in the office of either of the commissioners, the same shall be filled in the manner prescribed in the two last preceding sections.

cancy.

To hold office for two years.

Oath of office.

Not to disclose names

&c.

$23. The said commissioners shall hold their offices for two years, but shall be at any time removable by the governor for misconduct or neglect of duty.

$24. Before the said commissioners shall enter the execution upon of the duties of their office, they shall severally take the constitutional oath of office, before the secretary of state or some one of the circuit judges, or judges of the county courts of any county; and within ten days thereafter shall cause such oath, certified by the officer before whom it was taken, to be filed in the office of the secretary of state.

$25. The said commissioners shall not disclose the names of the of debtors, debtors of any monied corporation examined by them, or any information obtained in the course of such examination, unless required in a court of justice, or in the course of some proceeding authorised by this act.

Their salaries.

Issues of

bank notes.

when to be

$26. There shall be allowed to each of said commissioners the annual salary of fifteen hundred dollars, to be paid quarterly, out of

the bank fund.

$27. It shall not be lawful for any such monied corporation, to issue, or to have outstanding or in circulation, at any time, an amount of notes or bills loaned or put in circulation as money, exceeding twice its capital stock then paid in and actually possessed; nor shall its loans and discounts at any time exceed twice and a half of the amount of its capital stock so paid in and possessed.

Corporation $28. If any such monied corporation shall violate the last preceddissolved. ing section, or shall neglect to make any annual payment to the treasurer of this state, required by this act, for the space of three months, after the time when the same ought to have been made, and after being

notified of such delinquency by the comptroller of this state; or shall have lost one half of its capital stock paid in; or shall have suspended the payment of its bills in specie, for ninety days; or shall refuse to allow the officers of such corporation to be examined upon oath by the said commissioners, in relation to the affairs and condition of such corporation, every such corporation may be proceeded against by the said commissioners, and dissolved by the chancellor, as an insolvent corporation, as herein before provided.

faise state

&c.

$ 29. Every officer, agent or clerk of a monied corporation, who Penalty for shall make false statements or false entries in the books of such corpo- ments, ration, or shall exhibit false papers with intent to deceive said commissioners as to the condition of such corporation, shall be deemed guilty of felony, and shall be subjected to imprisonment in the state prison, for a term not less than three, nor more than ten years.

$30. The fourteenth, fifteenth, sixteenth, seventeenth and eigh- Liability of teenth sections of the second Title of the eighteenth Chapter of the stockholders. First Part of the Revised Statutes, so far as they provide for the personal liability of the stockholders of any insolvent corporation, shall not apply to any corporation subject to the provisions of this act; but the directors of every corporation subject to this act shall be liable to the stockholders thereof, as provided in the said sections.

statement.

$31. The nineteenth, twentieth, twenty-first, twenty-second, twen- Annual ty-third and twenty-fourth sections of the second Title of the eighteenth Chapter of the First Part of the Revised Statutes, shall be and are hereby so far modified, in respect to the corporations subject to this act, that the statements therein required shall be made to the bank commissioners, instead of the comptroller; and the powers therein conferred on the comptroller, shall not extend to any such corporation.

stockholdors.

rest.

$ 32. No stockholder of any monied corporation, having banking Commissionpowers, shall be appointed a commissioner under and by virtue of this ers not to be act; and it shall not be lawful for the said bank commissioners, or either of them, directly or indirectly, to purchase or in any manner whatever to be concerned in any bank stock in this state. $33. Every monied corporation subject to this act, shall be enti- Rate of intetled to receive the legal interest, established, or which may hereafter be established by the laws of this state on all loans by them made, or notes, or bills, by them severally discounted or received in the ordinary course of business; but on all notes or bills by them discounted or received in the ordinary course of business, which shall be mature in sixty-three days from the time of such discount, the said monied corporation shall not take or receive more than at and after the rate of six per centum per annum in advance.

334. Every monied corporation subject to this act, hereafter to be Capital stock. created, shall, before it makes any loans or discounts, have all its capital actually paid in; which payment shall be proved, on oath, to the satisfaction of the bank commissioners, before any such loans or discounts shall be made; and every monied corporation, whose charter shall be hereafter extended, shall, within one year after such extension takes effect, pay in all its capital, to be proved in like manner, to said bank commissioners; but every such monied corporation, whose charter shall be so hereafter extended, shall be permitted to