PART I Comptroller, when to lating notes tions. deposit with the comptroller, shall be New York state stocks, in all cases to be or to be made to be equal to stock producing six per cent per annum, or at least one half the amount so deposited shall be in the stocks of the state of New York, as before mentioned, and not exceeding one half in stocks of the United States, in all cases to be or to be made to be equal to a stock producing an interest of six per cent per annum; and it shall not be lawful for the comptroller to take such stocks at a rate above their par value or above their current market value. S2. The shareholders or a majority of them in amount, issue circu- who shall be owners of any incorporated bank continuing to associa the business of banking until the expiration of their charter, and who shall have associated themselves for the purpose of banking, under the provisions of the "Act to authorise the business of banking," passed April 18, 1838, and the amendments thereto, shall be entitled to receive from the comptroller, who is hereby authorised to issue to the association so formed, circulating notes in amounts of not less than ten thousand dollars, upon the deposit of securities of the kind described, required by the provisions of the above mentioned act and the amendments thereto, to an amount equal to the circulating notes so issued. But if such banking association so formed shall not have deposited with the comptroller during the three years next following the date of their articles of association an amount equal to that now required by law of banking associations as security for circulating notes previous to commencing the business of banking, the comptroller is hereby empowered to retain the interest accruing upon securities so deposited until such association has complied with the provisions of the act above recited in relation to the amount of security to be deposited in the office of the comptroller. Associations, how formed ration of charter. S3. If the shareholders or a majority of them in amount, of any incorporated bank, within one year of the expiration after expi- of its charter shall file with the president thereof a notice in writing that they intend to avail themselves of the provisions of the second section of this act to associate for the purpose of banking, it shall be lawful for the directors of said bank to purchase and hold such stock and other securities as the comptroller is or may be authorised to receive for circulating notes under the provisions of the act to authorise the business of banking, passed April 18th, 1838, and the various acts amending the same, to such an amount as they shall deem for the interest of the shareholders thereof. Provision relative to $ 4. An association heretofore or hereafter formed to take real estate. the place of an incorporated bank whose charter has expired or is about expiring may, where all the stockholders of such incorporated bank have assented to its organization under the act to authorise the business of banking, take and hold in addition to such real estate as is prescribed by the twenty fourth section of the act to authorise the business of banking, such other real estate as at the time of the transfer of the property of the incorporated bank, having been received by it in payment of debts previously contracted to said bank or purchased by it under judgments, or decrees in chancery in favor of said incorporated bank, according to law. CHAP. 437. AN ACT to amend an act relative to unclaimed bank dividends and deposits, passed May 9, 1835, and for other purposes. PASSED April 11, 1849. The People of the State of New York, represented in Senate and Assembly, do enact as follows: CHAP. XX. of unclaim ends to be $1. Every company or association now or hereafter incor- Statement porated or organized, or doing business under any general or ed divid special law of this state, on or before the first day of Sep- published. tember next, and annually thereafter shall cause to be published for six successive weeks in one public newspaper printed in the county in which such company or association may be located, and in the state paper, a true and accurate statement verified by the oath of the cashier, treasurer or presiding officer, of all deposits made with said company or association, and of all dividends and interest declared and payable upon any of the stocks, bonds or other evidence of indebtedness of said company or association which at the date of such statement shall have remained unclaimed by any person or persons authorized to receive the same for two years then next preceding. how to be 52. Such statement shall set forth the time that every such Statement, deposit was made, its amount, the name, and the residence if made. known of the person making it, the name of the person in whose favor the dividend or interest may have been declared, its amount and upon what number of shares and on what amount of stock, bonds or other evidence of judebtedness of any such company or association. $3. The term "association" shall include every individual Term a doing business alone, under any general or special law of this state. 27 B., 637. IV.-22 PART L Notes to b payable on interest. CHAP. 251. AN ACT to amend the act entitled "An act to amend the act entitled an act to authorize the business of Banking." passed May 14, 1840. PASSED April 10, 1850. The People of the State of New York, represented in Senate and Assembly, do enact as follows: S1. The fourth section of the act entitled "an act to amend the act entitled an act to authorize the business of banking," passed May 14, 1840, is hereby amended so as to read as follows: $ 4. No banking association or individual banker as such demand, shall issue or put in circulation any bill or note of said assoand without ciation or individual banker, unless the same shall be made payable on demand and without interest; except bills of exchange on foreign countries or places beyond the limits or the jurisdiction of the United States, which bills may be made payable at or within the customary usance or at or within ninety days' sight, and every violation of this section by any officer or member of a banking association or by any individual banker shall be deemed and adjudged a misdemeanor, punishable by fine or imprisonment, or both, in the discretion of the court having cognizance thereof. Final dis be made. 25 N. Y., 165. Ante, p. 135. CHAP. 331. AN ACT to provide for the final distribution of the funds held by the comptroller belonging to the creditors of insolvent banks and bankers. PASSED April 10, 1850. The People of the State of New York, represented in Senate and Assembly, do enact as follows: S 1. It shall be the duty of the comptroller to make a final tribution to distribution of the funds in his hands arising from the sale of securities deposited with him, under the act to authorise the business of banking by associations or individual bankers, which have failed, or may hereafter fail to redeem their circulating notes, which distribution shall be made in the manner herein prescribed. At the expiration of six years after the first sale made by the comptroller, of the securities of any such insolvent banking association or individual banker, the comptroller shall issue a final notice to the holders of the circulating notes issued by such banking association, or individual banker, requiring the presentation of such notes within six months after the date of said notice, and any of such CHAP. XX. tice. circulating notes which shall not be presented within the time thus specified, shall cease to be a charge or claim upon the funds of said banking association or individual banker remaining in the hands of the comptroller. Any of such Final nocirculating notes which shall be presented within the period above limited, shall be received and paid by the comptroller, at the same rate which shall have been paid on like notes previously presented, and if all the notes of any banking association or individual banker so presented shall have been redeemed at their par value, he shall pay to said association or banker the residue of the fund remaining in his hands belonging thereto. But in case said notes shall not have been redeemed at par, then the holder shall be entitled to a certificate showing the balance, if any, due thereon. to be csti $2. At the expiration of the notice of six months required Fund, how to be given, by the preceding section, the comptroller shall mated and ascertain the amount of the residue of the fund remaining in distributed. his hands belonging to the creditors of such insolvent association or banker, and after deducting therefrom all expenses justly chargeable thereon, he shall make a pro rata distribution of the residue upon the outstanding certificates given for the balance due to the holders of the circulating notes of said association or banker, which shall have been redeemed in part, and it shall be the duty of the comptroller to issue a notice to the holders of such certificates stating the rate or amount payable thereon, and requiring said holders to present the same within six months after the date of said notice; and any of said certificates which shall not be presented within the time thus specified, shall cease to be a charge or claim upon the residuary fund in the hands of the comptroller. § 3. After making the final distribution directed in the last Unclaimed preceding section, if any portion of said fund shall remain appropri unclaimed, the same shall be deposited in the treasury, and ated, applied towards paying the ordinary expenses of the free banking department. fund, how $4. The notice required to be given by this act to the Notice, how creditors of insolvent banking associations or individual published. bankers, shall be published at least six weeks in one or more newspapers which the comptroller shall deem best calculated to inform such creditors, and the cost of such publication shall be defrayed out of the fund to which said notice shall refer. CHAP. 164. AN ACT to organize a Bank Department. PASSED April 12, 1851; "three-fifths being present." The People of the State of New York, represented in Senate and Assembly, do enact as follows: $1. There is hereby established a separate and distinct Bank dedepartment which shall be charged with the execution of the partment. PART I. Superintendent. Salary laws heretofore passed, or that may be hereafter passed in relation to the banks, which are subject to the act to create a fund for the benefit of the creditors of certain monied corporations, and for other purposes, passed April 2, 1829, or in relation to banking associations and individual bankers, formed or transacting business under the act to authorize the business of banking, passed April 18, 1838, and the several acts in addition to or amendatory thereof. $2. The chief officer of the said department, shall be denominated the superintendent of the banking department. He shall be appointed by the governor, by and with the advice and consent of the senate, and shall hold his office for the term of three years. He shall receive an annual salary of five thousand dollars, to be paid quarterly, in the first instance out of the treasury on the warrant of the comptroller. He shall employ from time to time the necessary clerks to discharge such duties as he shall assign them, whose compensation shall be paid to them monthly on his certificate, and upon the warrant of the comptroller in the first instance out His deputy. of the treasury; he shall appoint one of the said clerks to be his deputy, who shall possess the powers and perform the duties attached by law to the office of the principal during a vacancy in such office, and during the absence or inability of his principal. Within fifteen days from the time of notice of their appointments respectively, the superintendent and his deputy shall take and subscribe the oath of office prescribed by the constitution, and file the same in the office of the secretary of state, and the said officers shall be in all respects subject to the provisions of the sixth title of chapter five of the first part of the Revised Statutes, so far as the same may be applicable. And the said superintendent of the banking department shall give to the people of this state a bond in the penalty of fifty thousand dollars with two sureties to be approved by the comptroller and treasurer of this state, conditioned for the faithful discharge of the duties of his office, and the said superintendent shall not, either directly or indirectly, be interested in any bank or banking association, or as an individual banker. Jath of office. Bond. superinten As amended by Laws of 1857, ch. 103. Post, p. 182. Powers of S3. The superintendent of the banking department shall dent. possess all the powers, perform all the duties and be subject to all the obligations and penalties now conferred by law upon the comptroller of this state, or to which the comptroller is subject in relation to banks, incorporated and banking associations formed and bankers transacting business under the laws specified in the first section of this act, and the said laws and all acts amendatory thereof, or in addition thereto are hereby modified and amended, so that every power and duty thereby conferred on the comptroller, shall from and after the appointment of such superintendent, be transferred |