Cashier, &c., to give bond.

What real es

tate may be held.

Proviso.

What bank may deal in.

ART. 12. Every cashier or treasurer before he enters upon the duties of his office, shall be required to give bond, with two or more securities, to the satisfaction of the president and directors, in a sum not less than fifty thousand dollars for the larger banks, nor less than twenty thousand dollars for those banks whose capitals do not exceed three hundred thousand dollars, with a condition for the faithful discharge of their duties.

ART. 13. The lands, tenements and hereditaments which it shall be lawful for the said corporation to hold, shall be only such as shall be requisite for its immediate accommodation in relation to the convenient transaction of its business, and such as shall have been bona fide mortgaged or conveyed to it, by way of security, or in satisfaction of debts contracted in the course of its dealings, or purchased at sales upon judgments which shall have been obtained for such debts; provided, however, that it shall not be lawful for any such corporation to hold any real estate purchased at sales upon judgments as aforesaid, for more than three years, from and after the time of such purchase, when judicious sale thereof may be effected within the said three years.

ART. 14. The corporation shall not deal or trade in anything except bills of exchange, promissory notes and bullion, or in the produce of their lands or of such goods and effects as shall have been bona fide pledged or mortgaged to it by way of security, or conveyed to it in satisfaction of debts contracted in the course of its dealings, or purchased at sales upon judgments, which shall have been obtained for such Proviso as to debts; provided, however, that nothing herein contained shall be construed to prevent the said corporation from making temporary investments of its funds in purchase of the public debt of the United States, or any one of the United States, or of the city of Baltimore, or of the county or other city in which said corporation may be located, as the president and directors for the time being may deem safe and beneficial.

temporary investments.

by president,

without seal.

ART. 15. All bills or notes which may be issued by Bills.&c., signed order of the said corporation, signed by the president, &c. binding and countersigned by the principal cashier or treasurer thereof, promising the payment of money to any person or persons, his, her or their order, or bearer, though not under the seal of the corporation shall be binding and obligatory upon the same, in the like manner, and with the like force and effect, as upon any private person or persons, if issued by him or them, in his, her or their private or natural capacity or capacities; and shall be assignable and negotiable in like manner as if they were so issued by such private person or persons, that is to say, those which shall be payable to any person or persons, his, her or their order, shall be assignable by endorsement in like manner and with Negotiable and the like effect as foreign bills of exchange now are, and those which are payable to bearer, shall be negotiable, or assignable by delivery only.

assignable.

ferable.

ART. 16. The shares of capital stock of the corpora- shares transtion shall be transferrable on the books of the corporation only, according to such rules as shall be established by the president and directors, but all debts actually due and payable to the corporation by a stockholder requesting a transfer, must be satisfied before such a transfer shall be made, unless the president and directors shall direct to the contrary.

shall not be

ART. 17. No loan shall be made by the said cor- To whom loans poration for the use or on account of this state, or the made. United States, to an amount exceeding fifty thousand dollars, or to any other state of this union, or to any foreign prince or state, to any amount whatever, without the previous consent of the legislature; and the capital stock and funds of the corporation shall deemed perbe deemed and taken to be personal and not real

estate.

Capital stock

sonal estate.

of annual elec

ART. 18. The president and directors, for the time Public notice being, shall give three weeks public notice, in at least tion. two daily newspapers published in the city of Baltimore, of the time and place of holding the annual election of directors, if the corporation be located in

holder before voting.

the city of Baltimore, or in at least two newspapers published in the county, if there be two newspapers published in the county where the corporation may be located, if not located in said city.

ART. 19. At all meetings of the stockholders of the corporations created by this act for elections and other purposes, no person shall be allowed to vote on any share or shares of stock at such meetings, either in person or by proxy, unless the said person shall, if Oath of stock required by a stockholder, make oath before the judges of election, or other officers of the meeting, that he or she, as the case may be, is the lawful and bona fide owner of said stock, having purchased and paid, or secured payment for the same, a full consideration, or received the same by inheritance, bequest, marriage, distribution or gift, and without any understanding that the said stock is to be transferred to the party from whom it was received, or in case of voting by Vote by proxy; proxy or power of attorney, the person holding such proxy or power of attorney, shall make oath or affirmation, if required by a stockholder, that he believes his principal, for whom he offers to vote, bought and paid, or secured the payment for the said stock a full consideration, or that the said principal, to the best of his knowledge and belief, is the real bona fide owner of said stock, having acquired the same, as the case may be, by inheritance, bequest, marriage, distribution or gift; provided, however, that this provision shall only apply to such shares of stock in the corporations aforesaid as shall appear to have been transferred upon the books of the corporation within one year next preceding the meeting at which it is offered to vote upon them.

oath.

Proviso.

In what funds

to make payments.

ART. 20. It shall not be lawful for any of the banking institutions by this act incorporated, to make discounts in or pay out any funds or money other than the legal currency of the United States, notes issued by authority of their charter, and notes issued by other banking incorporations, received at their par value by the banks so paying them out.

stock for free

and charged.

ART. 21. In addition to the general assessments for Tax on capital the purposes of state and municipal taxation, there school fund. shall be annually levied and collected on the shares of the capital stock of all banking corporations organized under this act, the sum of twenty cents on every one hundred dollars thereof, to be applied in augmentation of the "free school fund" of this state, and for the effectual collection of the said tax, the president, or How collected other proper officer of such banking institution, shall make out and deliver to the assessors of the proper county or city, annually, an account of the stock in such corporation, and the same shall be valued at its actual cash value, in the name of the respective stockholders, and the taxes assessed on such stock shall be levied and collected from said corporation, and shall be charged to the account of the respective stockholders, and shall be a lien on the shares of stock held by said stockholders respectively, whether resident or non-resident within this state.

In case of non

notes, &c., by

may be recov

32. If at any time any of the said corporations shall, Ibid. s. 8. neglect or refuse to pay, in gold and silver, or lawful payment of money of the United States, any of its notes, bills, obli- bank, interest gations or money received on deposit in violation of ered. the contract, promise or undertaking of said corporation, the person or persons entitled to demand and receive such payment, shall respectively receive and recover interest on said bills, notes, obligations and deposits, until the same shall be fully paid and satisfied, at the rate of six per cent. per annum, from the time of such demand.

Rights of cred

itors.

33. If the said corporation shall neglect or refuse to Ibid. s. 9. pay as aforesaid, any of its notes, bills, obligations or money received on deposit, the holder of such note, bill or obligation, or the person or persons entitled to demand and receive such money, shall be respectively entitled only to demand and receive, as creditor or as debtor, to claim and set off such part of its assets as shall be actually distributable and payable to such creditor or debtor, at the time when such claim or demand may be made.

Ibid. s. 10.

Distribution of

34. If the said corporation shall, at any time, susassets in case pend its payments, the assets which said corporation may hold or be in any wise entitled to at the time of such suspension of payment, shall be rateably distributed to and among all the persons who shall be its creditors at such time, and to their assigns respectively.

Ibid. s. 11. Stockholders liable to the

amount of their stock.

35. The continuance of the said several corporations shall be on the condition that the stockholders and directors of each of said corporations shall be liable to the amount of their respective share or shares of stock in such corporation, for all its debts and liabilities upon note, bill or otherwise; and upon this further condition, that this act and every part of it may be altered from time to time, or repealed, by the legislature.

ap

36. The provisions of this act, so far as may be plicable in their privileges and restrictions to any and all banks now existing under charter from the general assembly of Maryland, may be availed of by said bank or banks.

37. If the president and directors should, at any time, suspend the active business operations or workings of any banking institution incorporated under this act, other than as now legally provided for, and a majority of the stockholders, in general meeting assembled, determine to close its banking operations, thenceforth it shall not be lawful for such corporation to resume the exercise of its banking powers and franchises, but the same shall be closed, and after the payment of its debts and liabilities, the remaining assets and property of such corporations shall be divided among the stockholders or their assigns.

Approved and in force April 4, 1870.

To continue in force until the 1st day of January, 1885, and to the end of the next session of the general assembly thereafter.