PREFACE TO FOURTH EDITION. PURSUANT to chapter 289 of the Laws of 1889, Commissioners of Statutory Revision were appointed by the Governor. In their report to the legislature the succeeding year, these commissioners submitted a plan for a complete compilation and revision of all the general statutes of this State. In their judgment the revision and consolidation of the existing laws in systematic order was exceedingly desirable. Their plan, which also contemplated a classification of all the general laws, except the codes, by chapters, so that each chapter should, so far as might be, embrace all the laws specially relating to a given subject, was approved by the legislature in the year 1892. As a part of said plan, the revisers submitted a draft of a new banking law, being, with some alterations, a consolidation of all the law relating to banking and other moneyed corporations, except insurance corporations, which was passed by the legislature, and thereafter approved by the Governor on the 18th day of May, of that year. The commissioners at this time were Daniel Magone, Eli C. Belknap and Charles A. Collin, and, in the author's opinion, they have done their work exceedingly well. The new law, designated by statute as "The Banking Law," is divided into eight articles, the first of which contains the general provisions applicable to all corporations. under the supervision of the banking department, each of the remaining articles being exclusively devoted to a special class of the corporations which may be formed under the law. The following are the principal changes which have been made, and to which the attention of the reader is especially called. 1. The extension of the jurisdiction of the banking department to all moneyed corporations except insurance corporations, and an increase of its powers. 2. The provisions of chapter 8 of the act of 1882, sections 179 to 188, have been made applicable to all corporations under the supervision of the superintendent of banks. It had been held that these provisions were not applicable to banks organized under the Law of 1838, but to the other moneyed corporations referred to in the act of 1882. 3. The omission of all the provisions of chapter 409 of the Laws of 1882, sections 129 to 165 inclusive. These provisions relating to the appointment and proceedings of receivers properly belong to the Code of Civil Procedure, and they will be enacted together in a law to be known as the receivers' law, and which will form a supplemental chapter to the Code. 4. The transfer to the stock corporation law of all the provisions of the former law (1882) which were, or, with slight changes, could be made, applicable to moneyed corporations in common with other stock corporations. These provisions relate mainly to the conduct of elections, the increase or reduction of capital stock, and the liability of stockholders. 5. The liability of stockholders has been made to conform to the provisions of the national banking law, so that stockholders of all banks became ratably responsible for the debts of the corporation according to the amount of stock held by them. This liability, heretofore, applied only to stockholders of banks issuing circulating notes; but as State banks had ceased to issue notes, there was practically no liability. The stockholders are also made subject to the liability imposed by the stock corporation law, which ceases when the capital stock has all been paid in, and a certificate to that effect filed. The only continuing liability of the stockholder is the one first mentioned. 6. Directors are required to own at least one thousand dollars in value of its stock in banks having a capital of fifty thousand dollars or over, and at least five hundred dollars in banks having a capital of less than that amount, and if a director shall cease to own the requisite number of shares, he thereby (ipso facto) ceases to be a director. Vacancies in the board shall be filled by election of the stockholders, but vacancies not exceeding one-third of the whole number may be filled by the directors until filled by election of the stockholders at a special or annual meeting. Directors are also required to take an oath of office, which is to be filed with the bank superintendent. 7. The insertion of a provision (sec. 44) requiring every bank or individual banker, to keep a "lawful money reserve," which, in cities having a population of eight hundred thousand or over, has been fixed at fifteen per cent., and elsewhere throughout the State at ten per cent., of the aggregate amount of its deposits. 8. An enlargement of the classes of securities in which savings banks may invest, to include all District of Columbia bonds, and, by a special act (ch. 706, Laws 1892), warrants of the city of Buffalo are also included. A statute adopted during the present year permits investments in the bonds of certain cities. All penal provisions are transferred to the Penal Code. To render the work complete, the statutory construction law, general corporation law, stock corporation law, and those sections of the Code of Civil Procedure, Penal Code and tax laws, and unrepealed laws, or parts of laws specially applicable or relating to moneyed corporations, have been added. A schedule of laws repealed is appended to each act except the stock corporation law. 36 WALL STREET, NEW YORK, December 18, 1893. W. S. P. PREFACE TO FIFTH EDITION. TEN years have elapsed since the last edition of this work. Several revisions of the statutes affecting banking and many changes in the law have been made; thus a new edition has become necessary. An effort has been made to keep the same within the limits of the previous issues. The numerous decisions reported in the interval have been added, bringing the cases, as well as the official opinions, down to date. 56 BROADWAY, NEW YORK, October 1, 1903. W. S. P. [xii] |