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of stick to be
paid in and preserved entire; unless the same shall be secured by
plodge of stock as hereinafter provided. Deposite of Sec. 6. Said Michigan insurance company, shull deposit with the and issue of state treasurer, as hereinafter provided, stocks of the United States of
America, of the state of New York or six per cent stocks of the state of Michigan, on which interest is paid; and for the amount of stocks so deposited the state treasurer, shall countersign and regisier an equal amount of the notes or bills of said company, of such denomination, not less than one dollar, as said company may desire, and on said bills or notes shall be printed or engraved the words "secured by
pledge of public stocks” with the signature of the siate treasurer Registry of written beneath the same. The state treasurer shall keep a regis
ter of all notes countersigned and delivered to said company showing the number and denomination of each note and the date of delivery, also showing which are secured by pledge of stock and which
by individual liability. Description Sec. 7. Before the state treasurer shall deliver to said company deposited,
any bills or notes for circulation based upon any increase of the capital stock of said company, paid in asier this act shall take eflect, the said company shall transfer to said treasurer in trust. pubJic stocks of the United States, of tho state of New York, or six per cent stocks of the state of Michigan, on which interest is paid, to the full amount of the bills or notes so delivered to said company, and new notes may at any time be exchanged for any mutilated notes relurned by the bank to said treasurer, which stocks shall be
estimated at their market value in the city of New York. Proceedings Sec. 8. If the said company shall at any time, or under any prefatiure to re-tence, refuse, on demand at its office, where the notes are payable, & duties or during the usual and regular banking hours, to pay its notes in the
lawful currency of the United States of America, the holder of deeming the
said notes inay make and file his affidavit of that fact with the stato treasurer, who shall thereupon give notice that the notrs of said company will be redeemed at ihe office of ihe said treasurer; those bills or notes secured by the pledge of stocks as soon as said stocks can be sold, and all other notes or bills, as soon as the same can be, from the assets of the bank, or froin the liability of the stockholders; the state treasurer is authorized and required to sell, at public or private sale, within twenty days, so much of any stocks
in case of
state treasurer on re
su'd by trea Birer.
deposited with him, as shall be necessary to redeem any notes of said company, and apply the procreds of said stocks, first in the ro demption of such notes as were issued upon the pledge of stocks; no stock shall be sold at private sale for less than the par value Thereof, nor for less than the market value in the city of New York, at the line of each sale, nor shall sink he sold on credit; and for any deficiency in the sale of said suks to pay the holders of its notes, whether the same are secured by pledge of stock or otherwise, the directors and stockholders shall be individually liable. The treasurer shall first pay the full amount of notes or bills, out of any money he may receive, whether from sale of stocks, from the assets of said company or from the receiver or receivers; and for any deficiency to redeem such notes or bills from the sale of said stocks, the receiver or receivers shall prosecute and collect the same of any stack holder or stock holders upon their individual liability.
Sec. 9. The stocks deposited with the state treasurer, for the security of the circulating notes by him countersigned and delivered bills to be i to said company, shall be held by bien exclusiyely for that purpose, until such notes are redeemed, except as herein otherwise provided. The bills or notes so secured shall be thus countersigned and delivered to the amount to which said company has entitled itself, on the written order of the president or cashier. The said com- Cornpany pany shall be entitled to receive the interest, or dividend, on all itled to restocks deposited under the provisions of this acı, unless they fail to dividendo redeein their circulating notes as provided in this act: Provided how- deposited, erer, That whenever the price of any of the stocks pledged for the certain cal security or redemption of the circulating notes of said company shall be at the stock exchange, in the city of New York, for lour consecutive weeks, at a price or rate less than the value at which such blocks were estimated, when deposited, the treasurer shall receive and retain the interest or dividend on the stock pledged, until the interest so received, when added 10 the market value of the stocks so deposited, to be ascertained as in this section before provided, will be equal to the amount for which such stocks were deposited; or immediately give notice thereof to the president or cashier of said company, who shall forth with return to said treasurer an amount of circulating notes, so countersigned, equal to the depreciation of said stock.
In case of
to be ap
Annual er Sec. 10. It shall be the duty of said treasurer to examine into the of bank by affairs and condition of said company at least once in each year,
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 company, to administer all necessary oaths to the directors, officers, clerks or agents of said company, and to examine them under oath in relation to the affairs and condition thereof; is the treasurer, auditor general, and secretary of state, or a majority of them, should decide at any time that said company was insolvent, either upon the examination of the treasurer, or upon satisfactory evidence to
them that said company has refused to pay any of its circulating insolvency, notes, when lawfully demanded, in gold or silver coin, they shall
forth with appoint a receiver or receivers, and require of him or pointed; his duties, &c. them such bond and securities as they shall deem proper; who
shall proceed to take possession of the books, records, and assets of every description of said company, collect all debts, dues, and other claims belonging to said company, settle and compound for all bad and doubtful debts, sell all the real and personal property of said company, prosecute the stockholders of said company 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 noProof of demands
tice to be given by advertisement, in one daily paper published in the city of Detroit, and also in the state paper, for six consecutiva months, calling on all persons who have claims against soid com. pany, to make legal proof, and after the end of one year after the first publication of such notice, the treasurer, after full provisions
shall have been made for redeeming the circulating notes of said Pinte treasu- company, shall make a rateable dividend of the moneys so paid demption of 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 company shall be paid over to him, the said treasurer shall make further dividends as aforesaid on all claims proved; and the remainder, if anything, shall be paid over to the stockholders of said company, or their legal representatives, in proportion to the stock by them severally held. The auditor gener.
al, secretary of state, and state treasurer, or a majority of them may at any time, upon evidence satisfactory to them, vacate the appointment of any receiver or receivers, and appoint others, or they may reinstate said company 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 author. ized summarily to make any order, or issje 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 company is hereby required, on demand of the state treasurer, to submit to a full examination on the part of said treasurer, and any refusal to submit to such examination shall operate and be construed as a forfeit. ure of its charier.
Sec. 11. The said company shall pay the state trensurer on or stato far. before the second Monday of January, eighteen hundred and fifty, and on or before the second Monday in each year thereafter 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 see by said company shall be deducted from said capital stock, for the purpose of taxarion, and all real estate owned by said company shall be taxed as other property in the several townships, cities and villages, where the same may be situated.
Sec. 12. No more than seven per cent. per annum, in advance, shall be taken for any loan or discount, under any pretence whatever, by said company, nor shall said company pay out or put in circulation any bills or notes of other banks which are not at the time of such pay. ing out at par in the city of Detroit, and shall not at any time after the passage of this act, issue or put in circulation any note, draft, Restriction bill of exchange, acceptance, certificates of deposit or other evi- no es of osh
er banks. dence of debt of its own emission, which from its character or appearance shall be calculated or intended to circulate as money, other than such notes or bills of circulation as are countersigned and registered as by this act provided, and which said bank are ex
Fraudulent pressly authorized to issue for the purpose of being circulated as mo- assignneau ney. All tran-fers of the notes, bonds, bills of exchange or other evidence of debt owing to said company, or of deposits to its credit; all deeds of conveyance of real estate, all assignments of mort
Rate or dis count.
gages or other securities on real estate or of judgments or decrees in its favor; all sales, assignments, or other disposition of personal property or of any chose in action belonging to said company; ali deposites of money, bullion, or other valuable thing, for its use or for the use of its stock holders or creditors; all payments of mones made after the commission of an act of insolvency, or in contem. plation thereof, with a view to prevent the application of its as. sets in the manner prescribed by !his act, or with a view to the preference of one creditor to another, shall be uiter.y null and void.
Sec. 13. It shall be the duty of the state treasurer to cause to be olacement published a statement of the aff'sirs and condition of said company
at least once in each year, as ascertained when he may visit and esamine the same, and the expenses of such visitation, publication. selling of stocks, redeeming of the bills or noies as provide in this act and of the registering and countersigning the bills as hereinbefore provided, shall be determined by the state treasurer
and paid by said company. When sto'ks
Sec. 14. To entitle the stockholders to the benefits of this aci shall be depowiei.
there shall be deposited with the state treasurer filly thousand dollars in said state socks, or in United States stocks, on or before the firs: day of October next, and the said company shall not we or pay out or encumber ihe amount of copial. means or assets now exi-ting, in the purchase of any stocks which they may deposit with ihe state treasurer, and the amount of stocks so deposited shall not at any time after the first day of October, eighteen hundred and fity, be less
than one hundred thousand dollars. Repeal of
Sec. 15. The act entitled "an act 10 incorporate the sinckholders foriner acis. of the Michigan insurance company of Detroit," approved March
seventh, eighteen hundred and thirty-four, and the several acts amendatory thereto, are hereby repealed: Provided, That said repeal shall in no wise release or discharge the present stockholders of said company from the liability to redeem all bills, notes, and evidences of debt against said corporation, existing at the time the stockholders avail themselves of the provisions of ibis act.
Sec. 16. This act shall take effect within thiriy days from and af: be bied. ter its passag": Provided, The said company, under its corporate
seal and the hand of its president and secretary, shall within tha:
Ansent of compano to