rity or redemption of the circulating notes of said bank, shall be at the stock exchange, in the city of New York, for four consecutive weeks, at a price or rate less than the value at which such stock shall have been estimated when deposited, the treasurer shall receive and retain the interest or dividend on the stock pledged, until the interest so received when added to the market value of the stocks so deposited, to be ascertained as in this section before provi. ded, will be equal to the amount for which such stocks were deposited, or immediately give notice thereof to the president or cashier of said bank who shall forthwith return to said treasurer an amount of circulating notes so countersigned equal to the depreciation of said stocks.

aminati' nof

treasurer.

In ease of receiver to

&c.

Sec. 12. It shall be the duty of said treasurer to examine into Annual er the affairs and condition of said bank at least once in each year, b'ak by state and oftener if he should see fit; and for that purpose he shall have power to examine the books, papers, and personal property of said bank, and to administer all necessary oaths to the directors, officers, clerks or agents of said bank, and to examine them under oath in relation to the affairs and condition thereof; if the treasurer, auditor general and secretary of state, or a majority of them should decide at any time that said bank was insolvent, either upon the examination of the treasurer or upon satisfactory evidence to them that said insolvency. bank has refused to pay any of its circulating notes when lawfully be appoint'd demanded, in gold or silver coin, they shall forthwith appoint a receiver or receivers, and require of him or them such bonds and securities as they shall deem proper, who shall proceed to take possession of the books, records, and assets of every description of said bank, collect all debts, dues and other claims belonging to ceiver. said bank, settle and compound for all bad and doubtful debts, sell all the real and personal property of said bank, prosecute the stockholders of said bank in all cases where they are personally liable, and to pay over all moneys so made to the state treasurer. Said receiver or receivers shall receive such compensation as the state treasurer, auditor general and secretary of state, or a majority of them shall determine, which the state treasurer shall pay out of any money paid into his office by said receiver or receivers, and all other expenses shall be determined and paid in the same manner. The state treasurer shall cause notice to be given by advertisement in

Duties of re

Proof of de one daily paper published in the city of Detroit, and also in the state

mands and

daties of state treasurer in re

paper, for six consecutive months, calling on all persons who have claims against said bank, to make legal proof; and after the end of one year after the first publication of such notice, the trensurer, after full provisions shall have been made for redeeming the circulating notes of said bank, shall make a rateable dividend of the moneys so paid over to him by such receiver or receivers, on all such claims as may have been proved, and from time to time, as the proceeds of the assets of said bank shall be paid over to him, the said treasurer shall make further dividends, as uforesaid, on all claims proved: and the remainder, if any thing, shall be paid over to the stockholders of said bank, or their legal representative, in proportion to the stock by them severally held. Varation of The auditor general, secretary of state and state treasurer, or a of receiver, majority of them may, at any time, upon evidence satisfactory to

Appointm'at

ao.

them, vacate the appointment of any receiver or receivers, and appoint others, or they may reinstate said bank in the possession of any and all assets that may have been in possession or charge of said receiver or receivers: and any of the justices of the supreme court are hereby authorized summarily to make any order or issue any process which a court of chancery might make or issue to enable the said officers to carry out the provisions of this act. And said bank is hereby required on the demand of said treasurer to submit to full examination on the part of said treasurer, and any refusal to submit to said examination shall operate and be construed as a forfeit ure of its charter.

Sec. 13. The said bank shall pay the state treasurer on or before the second Monday of January 1850, and on or before the second Monday of January in each year thererfter, during its corporate existence, one per cent. on its capital stock, which shall be in lieu of all other taxes, provided that the value of real estate, as assessed by the proper township officers or estimated by the state treasurer, which may be owned in fee by said bank, shall be deducted from said capital stock, for the purpose of taxation; and all real estate owned by said bank, shall be taxed as other property in the sever al townships, cities and villages where the same may be situated.

Sec. 14. No more than seven per cent. per annum, in advance, shall be taken for any loan or discount, under any pretence what

count, pro⚫

gainst issue

assignments

ever, by said bank, and said bank shall not at any time issue or Rate of disput in circulation any note, draft, bill of exchange, acceptance, cer- hibition atificates of deposites, or other evidence of debt of its own emission, of certain which from its character or appearance shall be calculated or in bills, &c. tended to circulate as money, other than such notes or bills of circulation as are countersigned, as by this act provided, and which said bank is expressly authorized to issue for the purpose of being circulated as money. All transfers of the notes, bonds, bills of exchange, and other evidence of debt owing to said bank or of depos- Fraudulent ites to its credit, all deeds of conveyance of real estate, all assign- &c." ments of mortgages or other securities on real estate or of judgments or decrees in its favor, all sales, assignments, or other disposition of any personal property, or of any chose in action belonging to said bank, all deposits of money, bullion, or other valeable thing, for its use or for the use of any of its stockholders or creditors; all payments of money made after the commission of an act of insolvency, or in contemplation thereof, with a view to prevent the application of its assets in the manner prescribed by this act, or with a view to the preference of one creditor to another, shall be held utterly null and void.

State treasu

lish annual

Sec. 15. It shall be the duty of the state treasurer to cause to be published a statement of the affairs and condition of said bank, at rer to pub least once in each year, as ascertained when he may visit and ex- statement. amine the same, and the expenses of such visitation, publication, selling of stocks, and redeeming the bills or notes as provided in this act, and of the registering and countersigning of the bills as hereinbefore provided, shall be determined by the state treasurer and paid by said bank.

Sec. 16. The legislature may, at any time, alter, amend or repeal

this act.

Approved March 28, 1849.

[No. 136. ]

AN ACT to amend and consolidate the act to incorporate the Stockholders of the Michigan Insurance Company of Detrci', approved March seventh, eighteen hundred and thirty-four, and the severe acts amendatory thereto.

Section 1. Be it enacted by the Senate and House of Represen- Mich, Ensuatives of the State of Michigan, That the several persons now,

rance Co.

or hereafter stockholders of the Michigan Insurance company of Detroit, as organized under an act approved March seventh, eighteen hundred and thirty-four, and the several acts amendatory thereto, shall be and continue a body corporate and politic, in fact and in name, by the name of "the Michigan insurance company of Detroit," until the first Monday of June in the year eighteen hundred and sixty, and by their corporate name may sue and be sued in all courts, and in all manner of actions whatsoever, and have a common seal, and alter and change it at pleasure, and by their corporate name be capable of purchasing, holding and conveying any estate, real or personal, subject to the restrictions hereinafter mentioned. Sec. 2. A share in the stock of said company shall be thirty dol stock, direc- lars, and the number of shares shall not be less than five thousand, election,&c. nor more than ten thousand. The said company shall be managed

Shares of

tors & their

Powers of board of di

rectors.

eal estate

icompany.

by five directors, who shall be elected by the stockholders of said company, one of whom shall be president, who shall hold their offices for one year and until their successors are elected. The annual election shall be on the first Monday in June of each year. but in case of an omission it shall be lawful to hold the election subsequently on such other day as the by laws may provide, and the officers for the previous year shall continue to discharge their duties until such subsequent election is held. Each share of stock shall be entitled to one vote, and stockholders not present may vote by proxy.

Sec. 3. The board of directors, or a majority of them, shall have power to make such rules and regulations not inconsistent with this act, as to them shall appear needful, touching the management of said company; to appoint such officers and clerks as may be necessary to carry on the business of said company, and to call a meeting of the stockholders.

Sec. 4. The lands which it shall be lawful for the said company to hold, shall be such only as shall be required for the transaction of its business, or such as shall have been bonafide mortgaged to the said company by way of security, or which may be conveyed to it in satisfaction of debts previously contracted, or purchased at sales upon judgments in its favor; and it shall n›t deal or trade in buying or selling of goods, wares or merchandise unless they have been received in payment of debts. And it shall be lawful for said

Michigan insurance company to issue bills or notes to be loaned or Banking put in circulation as money, receive deposites, make discounts, and powers." transact a legitimate banking business, on the conditions and subject to the restrictions contained in this act. The said Michigan insurance company shall not issue bills or notes or other evidence of debt, of a less denomination than one dollar, or except the same shall be payable on demand in gold or silver coin, at the office or banking house of said company, in the city of Detroit.

refusal

Issue of

Liability of directors & stockhold's

Sec. 5. The said Michigan insurance company shall preserve entire and at all times have actually paid in, the present capital of bills. sixty thousand dollars, and may issue and put in circulation as money, notes or bills, registered and countersigned as hereinafter provided, an amount not exceeding one hundred and twenty thou sand dollars, and for all the bills or notes now issued or that may hereafter be issued by said Michigan insurance company, either under its present charter or as by this section provided, upon to pay the same by said Michigan insurance company, on demand at its office or banking house in business hours, or in case of insolvency, the directors and stockholders thereof, or any person who may have been a director or stockholder within two years previous to such refusal to pay, or insolvency, shall be jointly and severally liable in their individual capacities, and such directors and stockholders may be sued upon any such liability of said corporation, jointly or severaly, and judgment may be recovered against them or either of them for all such sum or sums as they fail to pay on such demand, and any refusal of payment by said corporation. of any such evidence of debt due by it, shall be presumptive evidence of insolvency. The bank note plates of said corporation state treasshall be kept in the custody of the state treasurer, and all bills or note plates notes issued or re-issued or put in circulation as money, after thirty days from the passage of this act, by said corporation, shall first be registered and countersigned by said treasurer and have printed or stamped thereon the words "secured by individual liability;" and said corporation shall be entitled to have thus registered, counter- Registry of signed and delivered, such an amount as it may be entitled to, but all of its issues or notes in circulation shall not at any one time exceed one hundred and twenty thousand dollars, or exceed twice the amount of that part of the above s xty thousand dollars, actually

urer to keep

of bank.

notes.