stato siccks

netes there

paid in and preserved entire; unless the same shall be secured by pledge of stock as hereinafter provided.

Deposite of Sec. 6. Said Michigan insurance company, shall 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 register 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 state treasurer Registry of written beneath the same. The state treasurer shall keep a register 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.

such potes.

Description of stick to be deposited, &c.

Proceedings

in case of

deetu notes

state treasu

deeming the

same.

Sec. 7. Before the state treasurer shall deliver to said company any bills or notes for circulation based upon any increase of the capital stock of said company, paid in after this act shall take ef fect, the said company shall transfer to said treasurer in trust, public stocks of the United States, of the 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 returned by the bank to said treasurer, which stocks shall be estimated at their market value in the city of New York,

Sec. 8. If the said company shall at any time, or under any prefailure to re- tence, refuse, on demand at its office, where the notes are payable, & duties of during the usual and regular banking hours, to pay its notes in the rer on re- lawful currency of the United States of America, the holder of said notes may make and file his affidavit of that fact with the state treasurer, who shall thereupon give notice that the notes of said company will be redeemed at the office of the 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 from 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

deposited with him, as shall be necessary to redeem any notes of said company, and apply the proceeds 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 time of each sale, nor shall stock he sold on credit; and for any deficiency in the sale of said stocks 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 stockholder or stockholders upon their individual liability.

Amount of

bills to be is

su'd by trea

shall be en

ceive the

on stocks

except in

ses.

Sec. 9. The stocks deposited with the state treasurer, for the security of the circulating notes by him countersigned and delivered to said company, shall be held by him exclusively for that purpose, Burer. 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- Company pany shall be entitled to receive the interest, or dividend, on all titled to restocks deposited under the provisions of this act, unless they fail to dividends redeem their circulating notes as provided in this act: Provided how- deposited, ever, That whenever the price of any of the stocks pledged for the certain caf security or redemption of the circulating notes of said company 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 stocks 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 to 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 forthwith return to said treasurer an amount of circulating notes, so countersigned, equal to the depreciation of said stock.

Annual ex- Sec. 10. It shall be the duty of said treasurer to examine into the

amination

the treasu

Ter.

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; if 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 forthwith appoint a receiver or receivers, and require of him or duties, &c. them such bond and securities as they shall deem proper; who

In case of

a receiver

to be appointed; his

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 notice to be given by advertisement, in one daily paper published in the city of Detroit, and also in the state paper, for six consecutive months, calling on all persons who have claims against said company, 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 tate 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

Proof of demanda

Duties of

rer in re

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 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 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 charter.

Sec. 11. The said company shall pay the state treasurer on or State 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 fee by said company shall be deducted from said capital stock, for the purpose of taxation, 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.

Rate of dis

count.

on issue of

er banks.

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 paying 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 othdence 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 expressly authorized to issue for the purpose of being circulated as mo- assignments ney. All transfers 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

Fraudulent

&c.

of annual

gages or other securities on real estate or of judgments or decrees in its favor; all sales, assignments, or other disposition of persona! 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 stockholders or creditors; all payments of money made after the commission of an act of insolvency, or in contem plation 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 utter.y null and

void.

Publication Sec. 13. It shall be the duty of the state treasurer to cause to b statement. published a statement of the affairs and condition of said company at least once in each year, as ascertained when he may visit and examine the same, and the expenses of such visitation, publication. selling of stocks, redeeming of the bills or notes as provided 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 shall be de

posite i.

Repeal of former acts.

Assent of compano to be filed.

Sec. 14. To entitle the stockholders to the benefits of this act there shall be deposited with the state treasurer fifty thousand dollars in said state stocks, or in United States stocks, on or before the firs: day of October next, and the said company shall not use or pay out or encumber the amount of capital. means or assets now existing, in the purchase of any stocks which they may deposit with the state treasurer, and the amount of stocks so deposited shall not at any time after the first day of October, eighteen hundred and fifty, be less than one hundred thousand dollars.

Sec. 15. The act entitled "an act to incorporate the stockholders 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 this act.

Sec. 16. This act shall take effect within thirty days from and af ter its passage: Provided, The said company, under its corporate seal and the hand of its president and secretary, shall within that