ARTICLE VIII- Continued. Debts of corporations. SEC. 2. Dues from corporations shall be secured by such individual liability of the corporators and other meals as may be prescribed by law. Corporations defined. SEC. 3. The term corporations as used in this article shall be construed to include all associations and jointstock companies having any of the powers or privileges of corporations not possessed by individuals or partnerships. And all corporations shall have the right to sue and shall be subject to be sued in all courts in like cases as natural persons. Summary proceedings to enforce individual liability, are valid. Empire City Bank, 18 N. Y. 199. A provision in a railway charter that the Supreme Court alone shall issue injunctions against it, is invalid. Story v. N. Y. El. R. Co., 3 Abb. N. C. 478. See Van Vranken v. City of Schenectady, 31 Hun, 516. Charters for Banks. *SEC. 4. The Legislature shall, by general law, conform all charters of savings banks, or institutions for savings, to a uniformity of powers, rights and liabilities, and all charters hereafter granted for such corporations shall be made to conform to such general law, and to such amendments as may be made thereto. And no such corporation shall have any capital stock, nor shall the trustees thereof, or any of them, have any interest whatever, direct or indirect, in the profits of such corporation; and no director or trustee of any such bank or institution shall be interested in any loan or use of any money or property of such bank or institution for savings. The Legislature shall have no power to pass any act granting any special charter for banking purposes; but corporations or associations may be formed for such purposes under general laws. *As amended by vote of the people, November 3, 1874. ARTICLE VIII- Continued. The United States Trust Company is not within this prohibition. U. S. Trust Company of N. Y. v. Brady, 20 Barb. 119. The People's Safe Deposit Company is legally authorized to issue certificates for deposits of money. Pardee v. Fish, 60 N. Y. 394. Specie payments. SEC. 5. The Legislature shall have no power to pass any law sanctioning in any manner, directly or indirectly, the suspension of specie payments, by any person, association or corporation issuing bank notes of any description. Registry of bills or notes. SEC. 6. The Legislature shall provide by law for the registry of all bills or notes, issued or put in circulation as money, and shall require ample security for the redemption of the same in specie. Individual responsibility of stockholders. SEC. 7. The stockholders in every corporation and jointstock association for banking purposes issuing bank notes or any kind of paper credits to circulate as money, after the first day of January, one thousand eight hundred and fifty, shall be individually responsible to the amount of their respective share or shares of stock in any such corporation or association, for all its debts and liabilities of every kind, contracted after the said first day of January, one thousand eight hundred and fifty. This requires, in addition to the loss of the amount of capital stock paid in, the contribution of an amount equal to the amount of the respective shares of stock Empire City Bank, 18 N. Y. 199. This provision applies to banks chartered before the year 1846. Matter of Reciprocity Bank, 17 How. Pr. 323. Insolvency of banks. SEC. 8. In case of the insolvency of any bank or banking association, the billholders thereof shall be entitled to preference, in payment, over all other creditors of such bank or association. ARTICLE VIII - Continued. Incorporation of cities and villages. SEC. 9. It shall be the duty of the Legislature to provide for the organization of cities and incorporated villages, and to restrict their power of taxation, assessment, borrowing money, contracting debts, and loaning their credit, so as to prevent abuses in assessments, and in contracting debt by such municipal corporations. The right of the Legislature to delegate the power of taxation to village and municipal agencies is constantly practiced and recognized. Wallerstein v. Judge, 24 State Rep. 814. This does not prohibit the Legislature from granting to municipal corporations new and enlarged powers in respect to the creation of debt. Benson v. Mayor of Albany. 24 Barb. 218; Bank of Rome v. Rome, 18 N. Y. 38: Grant v. Courter, 24 Barb. 232; People, ex rel. Griffin v. Mayor of Brooklyn, 4 N. Y. 419. But a municipal officer may be authorized to place water meters and impose a lien for their use. Hill v. Thompson, 50 Super. 165. Credit or money of the State not to be given or loaned. *SEC. 10. Neither the credit nor the money of the State shall be given or loaned to or in aid of any association, corporation or private undertaking. This section shall not, however, prevent the Legislature from making such provision for the education and support of the blind, the deaf and dumb, and juvenile delinquents, as to it may seem proper. Nor shall it apply to any fund or property now held, or which may hereafter be held, by the State for educational purposes. Not applicable to power of supervisors of New York city to levy tax. Sheperd's Fold v. Mayor, 96 N. Y. 137. Counties, etc., not to give or loan money or credit — Limitation of debts. * SEC. 11. No county, city, town or village shall hereafter give any money or property, or loan its money or credit to or in aid of any individual, association or corporation, or *Sections 10 and 11 added by vote of the people, November 3, 1874, and section 11 amended by vote of the people, November 4, 1881. ARTICLE VIII- - Continued. become directly or indirectly the owner of stock in, or bonds of, any association or corporation; nor shall any such county, city, town or village be allowed to incur any indebtedness except for county, city, town or village purposes. This section shall not prevent such county, city, town or village from making such provision for the aid or support of its poor as may be authorized by law. No county containing a city of over one hundred thousand inhabitants, or any such city, shall be allowed to become indebted for any purpose or in any manner to an amount which, including existing indebtedness, shall exceed ten per centum of the assessed valuation of the real estate of such county or city subject to taxation, as it appeared by the assessment-rolls of said county or city on the last assessment for State or county taxes prior to the incurring of such indebtedness; and all indebtedness in excess of such limitation, except such as may now exist, shall be absolutely void, except as herein otherwise provided. No such county or such city whose present indebtedness exceeds ten per centum of the assessed valuation of its real estate subject to taxation shall be allowed to become indebted in any further amount until such indebtedness shall be reduced within such limit. This section shall not be construed to prevent the issuing of certificates of indebtedness or revenue bonds issued in anticipation of the collection of taxes for amounts actually contained, or to be contained in the taxes for the year when such certificates or revenue bonds are issued and payable out of such taxes. Nor shall this section be construed to prevent the issue of bonds to provide for the supply of water, but the term of the bonds issued to provide for the supply of water shall not exceed twenty years, and a sinking fund shall be created on the issuing of the said bonds for their redemption, by raising annually a sum which will produce an amount equal to ARTICLE VIII- Continued. the sum of the principal and interest of said bonds at their maturity. The amount hereafter to be raised by tax for county or city purposes, in any county containing a city of over one hundred thousand inhabitants, or any such city of this State, in addition to providing for the principal and interest of existing debt, shall not in the aggregate exceed in any one year two per centum of the assessed valuation of the real and personal estate of such county or city, to be ascertained as prescribed in this section in respect to county or city debt. The Legislature may authorize a municipal corporation to subscribe for the stock of a railroad, which, by terminating within the municipal limits, is calculated to benefit the inhabitants. Bank of Rome v. Rome, 18 N. Y. 38; People ex rel. Albany, etc., R. R. Co. v. Mitchell, 35 id. 551. The Legislature cannot compel a town to become a stockholder in a railroad company without its consent. People ex rel. Dunkirk, W. & P. R. R. Co. v. Batchellor, 53 N. Y. 128. The Legislature may compel a town to pay bonds issued for a local improvement under an unconstitutional statute. Knapp v. Newtown, 1 Hun, 268. They cannot authorize a municipal corporation to issue its obligations for the purpose of raising money to pay a subscription of the corporation to the capital stock of a private corporation, and provide for the payment of such obligations by taxation. Weisener v. Village of Douglas, 64 N. Y. 91. The method of obtaining the assent of a town to subscribe and issue bonds is in the legislative discretion; the Legislature may authorize the assent to be given by an officer of the town. Even where they had previously clothed a majority of taxpayers with the authority, it may also take away previous conditions or impose new ones. Town of Duanesburgh v. Jenkins, 57 N. Y. 177. This section does not prohibit a statute authorizing two cities to construct a public bridge connecting them. People v. Kelly, 5 Abb. N. C. 383; 76 N. Y. 475. An act authorizing municipal corporations holding railroad bonds to sell them, is invalid. Town of Wheatland v. Taylor, 29 Hun, 70. See Sheperd's Fold v. Mayor, 96 N. Y. 187. Chapter 272, Laws of 1891. is within the saving clause for support of the poor. People v. Comm'rs, N. Y. Daily Reg., Dec. 4, 1883. A park is a "city purpose." Matter of Mayor, 99 N. Y. 569. So the construction and operation of an electric-light system by a city. Hequemborg v. City of Dunkirk, 49 Hun, 550. Issuing of bonds in aid of water supply is a debt created for "city purpose. Matter of Comstock, 26 State Rep. 612. A corporation may authorize an acknowledged debt. Hills v. Peekskill Savings Bank, 101 N. Y. 490. |