said sale, how

tisement, he shall cause the securities to be sold for cash under his own supervision, and shall, after deducting the expenses of Proceeds of such advertisement and sale, apply the proceeds to the redemp- applied. tion, pro rata, of all the notes in circulation, whether protested or not, made and put into circulation by the maker or makers of such protested notes; nothing in this act shall be considered as implying any pledge or undertaking on the part of the State for any payment beyond the faithful application of the securities deposited with the Auditor.

Appropria. tion of the

ro

ceeds of sale of securities by

the Auditor.

SEC. 107. If the proceeds of the sale of the securities should exceed the amount required to redeem and pay the circulating notes aforesaid in full, the Auditor shall pay over such excess into the general fund of the assets of the insolvent banker or banking company; but if the proceeds of such sale should be insufficient to provide in full for the circulating notes and he should declare a distribution, pro rata thereupon, he shall forthwith furnish to the commissioners or liquidators of the insolvent, a certificate in writing of the amount of the deficiency, which certificate shall be legal notice to them to reserve out of any assets of such insolvent, which may be in or come in to their hands, an amount sufficient to provide Manner of for such deficiency; and he shall further furnish to every holder ciency when of any note or notes presented to him for redemption, and the proceeds of redeemed in part, a certificate of the amount unpaid on such cient to pay the circulating notes, and such certificate shall entitle the holder to payment of the amount therein designated in full out of the assets of the insolvents herein directed to be reserved, if the assets should be sufficient to pay all of the notes in full; or ratably if they should not be sufficient, in preference to any other claims and debts whatever, except the cost of liquidation.

making up defi

sale are insufli

notes.

of stockholders

And should the proceeds of the sale of the securities be insuffi- Responsibility cient to redeem all the notes put in circulation by any corporation established by this act, then the stockholders of the corporation shall be liable for the amount of all unredeemed notes in the ratio of the stock which each one may own.

SEC. 108. The holder of any circulating note which may have Damages due been protested for non-payment, shall be entitled to damages at to holders of the rate of twelve per cent. per annum, in lieu of interest, until protested paper final payment, payable out of the general fund of the insolvent

party.

able by corpora

SEC. 109. Bankers and banking companies, doing business Rates of inunder this act, shall be entitled to charge and receive discount te est charge. at a rate not greater than the maximum allowed by law on tions. conventional obligations; and their other contracts shall be regulated by the laws in regard to interest upon contracts between individuals.

Amount of

and discounted paper banks are

SEC. 110. Every banker or banking company, doing business under this act, is required, in addition to securities for circulation cash, funds, bills deposited with the Auditor, to have on hand at all times, in cash, an amount equal to one-third of all their other cash liabilities, required to and for the other two-thirds of said liabilities, an equal amount in cash, bills of exchange or discounted paper, maturing within ninety days and not renewable.

have on hand.

Penalty for banks falling

SEC. 111. If at any time the cash, and short paper held by below the pro such banker or banking company, should fall below the propor portions to cash tions to cash liabilities prescribed in the preceding section, and liabilities provided in preced shall remain so for a space of ten days, it shall not be lawful thereafter for such banker or banking company to make any loan or discount whatever until its, or their, position, is reestablished according to the terms of the preceding section.

ing section.

Banking companies established out of New Orleans may have an

Orleans.

A violation of this provision shall be held to be an act of insolvency, and the Auditor shall cause the necessary steps to be taken for the liquidation of the affairs of such banker or banking company, as in cases of insolvency; and every director or manager of a banking company, who may participate in or assent to such violation, shall become individually liable for all debts and obligations.

SEC. 112. Every banker and banking company out of the city of New Orleans, doing business under this act, and issuing circulating notes as herein authorized, may keep an office or agency in New designate an agency in the city for redemption of their notes. The appointment of such officer or agent shall be made in writing, and filed with the Auditor, and in the office of the Recorder of Mortgages in which the charter is filed. But nothing herein contained shall be so construed as to authorize such banker or banking company to refuse to redeem its notes at the counter of the principal bank.

Powers and duties of the

State Treasurer

of State.

SEC. 113. The State Treasurer and Secretary of State shall supervise the execution of this act, and possess all the power and and Secretary perform all the duties which are conferred or imposed upon them by the laws in regard to incorporated banks. They may examine the affairs of bankers and banking companies doing business under this act, whenever they may deem it necessary to do so, and shall require from them quarterly statments, verified upon statement to be oath by the banker and his cashier, or by the president and cashier, which quarterly statements shall give the following particulars of the affairs of the bank:

1882-109.

Quarterly

mide by the

banking com.

panies.

Quarterly publication of

statements.

List of stock. holders to be furnished quar terly.

1st. Capital paid in. 2d. The amount of stock deposited with the Auditor, with a list of the same, and at the rate at which they were received for circulating notes. 3d. Amount of investments in real estate. 4th. Amount of investments on loans hav ing longer than ninety days to run, distinguishing whether on mortgage or otherwise, or loans on stocks, and what stocks. 5th. Suspended debt and protested paper. 6th. All other assets not realizable in ninety days. 7th. Loans on paper maturing in ninety days. 8th. Exchange, domestic and foreign. 9th. Deposits. 10th. Circulation. 11th. Other cash liabilities. 12th. Specie and cash assets, stating each item separately. ·

SEC. 114. The statement shall be regularly furnished; and, on the last Saturday of every quarter shall be signed by the Treasurer and Secretary, and published on the first Wednesday of every quarter as hereafter provided. They shall prescribe for each banker or banking company a period within which their quarterly statements shall be furnished, and published.

SEC. 115. A list of the stockholders in every banking corporation doing business under this act, verified by the oath of the

Banks to be banks of de

posit and dis

count as well as banks of circu.

president or cashier, shall be furnished quarterly to the Treasurer 1855-214. and Secretary, but need not be published with their reports. SEC. 116. All banks hereby established shall be banks of deposit and discount, as well as banks of circulation. SEC. 117. Bankers and banking companies doing business lation. under this act shall be taxed upon their capital stock at the Capital stock, same rate as other personal property under the laws of this State.

how taxed.

securities de

SEC. 118. Whenever any banker or banking company shall How banks have redeemed eighty per cent. of its notes, and delivered to the may take up Auditor a certificate of a deposit to the credit of the State posited with Treasury, in such bank as the Auditor may approve, to an equal Auditor. amount with the circulating notes still unredeemed, it shall be lawful for him to receive the same and give up all securities therefor deposited by such banker or banking company for the redemption of the circulating notes issued.

Notice to

holders of notes

to present the same to the

Auditor.

SEC. 119. Such banker or banking company, after having complied with the provisions of the preceding section, may give notice once a fortnight for one year, in the State paper, also in a paper published in the city of New Orleans, and in a paper pub. lished in the parish where the banker or banking company has its or their domicile, if any paper be published therein, that all the circulating notes issued may be presented at the Auditor's office within one year from the first publication of such notice, or presented withthat the funds deposited will be given up to such banker or banking company; and, on receiving satisfactory proof of giving notice for the time aforesaid, the Auditor shall surrender to the banker or banking company any funds which may he may hold for the payment of the unredeemed notes.

Notes to be

in one year.

Auditor may

approval of

ditional clerks.

SEC. 120. The Auditor of the State shall have authority, with the approval of the Governor, to employ in his office such addi- appoint, with tional clerk or clerks, as he may deem necessary, in order to Governor, adexecute the duties imposed upon him by this act, and to pay such Said clerks, compensation therefor as he may deem sufficient, the same to be how paid. paid by a general assessment upon the bankers and banking companies for whom the services were performed.

SEC. 121. The compensation and contingent expenses allowed Compensation to the Treasurer and Secretary shall be assessed upon all banks of Treasurer subject to their supervision under this act, as well as upon the and Secretary, incorporated banks, and paid in the same proportion and in the

same manner.

how paid.

and transferred,

SEC. 122. Whenever any person, permanently residing with- 1877-60. out the State, shall die, being the owner of any bank stock, Stock of perrailroad stock, insurance or other stock, in any bank or incor- ing non-resi sons dying, beporated companies of this State, or in any national banking dents, how sold association, located in this State, except the property banks, it except stock of shall be lawful for his heirs, executors or representatives to sell property banks. and transfer any or all stock, so held upon the books of such bank or incorporated company, or banking association, or in any other manner recognized by the charter of such bank, or incorporated company or banking association, without the necessity of having themselves recognized as such by, or obtaining from any court in this State, a decree for the sale and transfer of all or or any of such stock, or stocks.

SEC. 123. All the banks of this State are prohibited from

1855-214.

Penalties

against banks

buying, selling, bartering or trading for cotton, sugar or any other produce; and for any infraction of the provisions of this buying or sell section, the bank shall forfeit a sum not exceeding five thousand dollars, and every director assenting thereto shall be fined not exceeding one thousand dollars, and shall be responsible for all damages.

ing produce.

1866-58.

Bank dis

count.

1859-142.

1874-162.

claimed and un

to be published.

SEC. 124. The banking institutions of the State of Louisiana, are hereby authorized to discount paper at the rate of eight per cent. per annum interest.

SEC. 125. It shall be the duty of the several banks and the various insurance companies incorporated in this State, except Annual state the incorporated savings banks of this State, on the third ments of un- Monday of April of each year, to cause to be published in the settled balances official journal of the State, once a week for four weeks in suc how and when cession a full and complete list of the names of all parties who may have in such institution any unclaimed or uncalled for sums of money, specifying also the several amounts thereof, beginning from the dates of their respective incorporation, whenever the same are of three years standing or more at the time of such publications; whether the same arise from deposits, dividends, interest scrip, or result from the non payment of any drafts, bills of exchange, certificates of deposit issued payable to bearer, and which have not been presented for payment or been paid, or otherwise, or drafts, bills of exchange, or certificates of deposit. drawn in favor of such persous, or any other parties, and not subsequently paid by such institution, or as in the case of certifi cates of scrip not subsequently paid or delivered to the owner thereof; also all interest on scrip due and unpaid for more than three years since the same became demandable, and generally all indebtedness of such institutions, in any manner whatever, of more than three years standing, or where the evidence of the fact or of the indebtedness is exclusively in possession of such institutions.

Publication, bow verified.

Omission to

lication sub

corpo

jects the tion to fine.

SEC. 126. The said duty of publication, according to the provisions of the foregoing section, is hereby imposed upon all incorporated institutions of this State, receiving deposits or declaring dividends on money, scrip or other evidences of indebtedness, except upon the incorporated savings banks of this State; and the same shall be verified by the affidavits annexed thereto of the president and cashier when they are made by a bank, and of the president and secretary when made by an insurance company.

SEC. 127. Each and every omission to advertise, in accordmake said pab- ance with the provisions of this act, shall subject the corporation so offending to a penalty of one thousand dollars, recoverable before any court of competent jurisdiction, at the domicile where such corporation is established, in the name and for the benefit of the Charity Hospital of New Orleans; provided, the publication herein directed is only required when the sum exceeds ten dollars, and that it shall be the duty of the public administrator, if there be one in the parish, or of a curator, appointed according to law, if there be none, to institute all such suits, and in case such bank or other incorporated institution shall, after the institution of such suit, still omit to make the publication herein required, such bank or institution, for such failure or omission

Administra

shall be subjected to a further penalty of two thousand dollars, during each and every month thereafter, to be sued for and recovered in the same manner as provided for the first omission. SEC. 128. In all cases where it shall appear that dividends of money or of scrips, or deposits, or drafts, bills of exchange, tion of divi certificates of deposit or otherwise, have remained uncalled for dends, etc. for a period of seven years or more, and such dividends or scrip, or interest of scrip, or drafts, bills of exchange, certificates of deposit or otherwise, have remained uncalled for during a period of seven years or more, and such dividends or scrip, or interest of scrip, drafts, bills of exchange, certificates of deposit or otherwise, shall stand in the names of persons who are absent and unrepresented, and have not been heard from within the period of seven years, the public administrator or curator shall proceed to administer upon the same in the manner now provided by law for the administration of vacant estates.

SEC. 129. All legal proceedings instituted under this and Legal pro ceedings tried other acts shall be tried by preference in the district courts and by preference. in the Supreme Court.

Session.

SEC. 130. Each and every banking institution located in the 1877–129. parish of Orleans, and organized under the laws of this State,Banking inand not coming within the provisions of Act number one hundred stitutions in and sixty-six, approved March fifteen, one thousand eight leans to make parish of Or hundred and fifty-five, entitled "An Act to establish a general reports. system of free banking in the State of Louisiana," shall make a report in duplicate to the State Treasurer showing the condition of said banking institution at the close of business on the last Saturday of every quarter; said report to be verified by the oath 1882-109. or affirmation of the president or cashier and two of the directors 1877-129. of said bank or banking institution, to be delivered to the State Treasurer, on the morning of the first Tuesday of every quarter. urer to publish The State Treasurer shall cause said statement to be published report. in one or more of the daily journals of the city of New Orleans on the first Wednesday of every quarter, and the cost of said publication shall be collected from said bank or banking institution by the said journal.

Extra Session.

State Treas

Penalty for

report.

SEC. 131. Any bank or banking institution neglecting to transmit its report to the State Treasurer on the day specified in failure to make the foregoing section, shall be subject to a penalty of thirty dollars for each day's delay, which penalty may be collected by a suit to be brought by the Attorney General, on the written. request of the State Treasurer, before any court of competent jurisdiction, and all moneys collected for penalties under this section shall be paid into the treasury of the State to the credit of general fund.

ing institutions

of Orleans.

SEC. 132. All banks and banking institutions located outside Report to be of the parish of Orleans, organized under the laws of this State made by bankand not operating under the provisions of Act number one hun- outside parish dred and sixty-six, approved March fifteen, one thousand eight eight hundred and fifty-five, shall make a report at the time and in the manner prescribed in section one hundred and thirty, and said report shall be mailed on the first day of every quarter to the State Treasurer, and said bank or banking institution shall cause said report to be published on the second Wednesday of To be pub every quarter, in a newspaper published at the place where the lished.