PART I. Notes S3. It shall not be lawful for any incorporated banking inunder par. stitution within this state, or any association, or any individual or individuals authorized to carry on the business of banking by virtue of the said act entitled "An act to authorize the business of banking," directly or indirectly to lend, or pay out for paper discounted or purchased by them, any bank bill, or note or other evidence of debt which is not received at par by the said banking institution, association or individual for debts due to the said banking institution, association or individual. Penalty. 19 N. Y., 39. S4. Every corporation, and every association and individual authorized to carry on the business of banking, who shall offend against any of the provisions of the previous sections of this act, shall forfeit for each and every offence the sum of one thousand dollars, to be recovered with costs of suit in the name and for the use of any person who shall sue for the same and prosecute such suit to judgment in any court having cognizance thereof; and every officer and clerk of such corporations and associations, and every such individual banker and his clerks and servants, who shall knowingly act or assist in any violation of any provision of this act, shall, upon conviction, be deemed guilty of a misdemeanor, and shall be punished by fine or imprisonment, or both, in the discretion of the court before which such conviction shall be had; but such fine shall not exceed five hundred dollars, and that such imprisonment shall not exceed six months. Agents to be appoint York or Albany. AN ACT relating to the redemption of bank notes. PASSED May 4, 1840. The People of the State of New York, represented in Senate and Assembly, do enact as follows: $1. Every moneyed incorporation in this state having ed in New banking powers and issuing bills or notes of circulation, and every banking association and individual banker, carrying on banking business under the act to authorize the business of banking, except those whose place of business is in the cities of New York, Albany or Brooklyn, shall, on or before the first day of July next, appoint an agent, who shall keep an office in the city of New York or Albany, for the redemption of all circulating notes issued by such corporation, banking association or individual banker, which shall be presented to such agent for payment or redemption. See Laws of 1851, ch. 203. CHAP. XX. be filed in comptroller's office. $2. Such agent shall be appointed in writing, and such Their com appointment in writing shall be delivered to the Comptroller missions to on or before the day above mentioned and filed in his office; and any corporation having banking powers, banking association, banker or other person, may be an agent for the purposes of this act; and if any such incorporation, association cr banker, shall omit to appoint such agent within the time above mentioned, the Comptroller shall appoint such agent for such corporation, association or banker. agents to ed. $3. The Comptroller, immediately after the said first day List of of July, shall publish, during such time as he may deem pro- be publishper, a list of such agents in the state paper, and in at least two daily newspapers in the city of New York, the expense whereof shall be paid by the corporation, associations and bankers above mentioned. redeemed. S4. It shall be the duty of every such corporation, banking Notes to be association and individual banker, out of the cities of New York, Albany and Brooklyn, to redeem and pay on demand all circulating notes issued by such corporation, banking association or individual banker, presented for redemption or payment at the office of their said agent in the city of New York or of Albany, at a rate of discount not exceeding onehalf of one per cent. See Laws of 1851, ch. 203; 21 N. Y., 494. for neglect. $5. Every such corporation, banking association or indi- Penalties vidual banker, whose agent shall neglect or refuse to redeem their notes on demand as aforesaid, shall pay to the person making such demand interest upon the notes so demanded, at the rate of twenty per cent per annum; and if such redemption and payment of interest is not made at said office within twenty days from the time when first demanded, such corporation, banking association or individual banker shall be liable to be proceeded against by the bank commissioners, in the same manner and with the like effect as any incorporated bank may be proceeded against for a violation of its charter; and such corporation, banking association or individual banker, shall not thereafter issue or put in circulation any of their bills or notes; and the Comptroller shall, in that case, proceed in the same manner as is directed in the fourth section of the act entitled "An act to authorize the business of banking," passed April 18, 1838. be appoint associa $6. Every association and individual banker who shall Agents to hereafter commence business under the act to authorize the ed by new business of banking, shall, upon first receiving any circulating tions. notes from the Comptroller, appoint an agent for the purposes of this act, and be subject in all respects to the provisions of this act; and the Comptroller is hereby directed not to deliver any circulating notes to such association or banker, until such appointment is made and filed in his office; and such appointment shall be immediately published by the Comptroller in manner aforesaid. PART I Appoint $7. Appointments of agents made in pursuance of this act, be revoked, may be revoked, and new appointments of agents may be made, from time to time, by delivering such revocation and appointment to the Comptroller, who shall cause the same to be published as aforesaid. A number of banks may appoint a common agent. Saving clause. $8. It shall be lawful for any number of incorporated banks, banking associations and private bankers, by agreement, to associate together for raising a joint fund to be placed in the hands of their common agent, for the redemption of their circulating notes in the city of New York or Albany, and also the circulating notes of other incorporated banks, banking associations and individual bankers, in such manner and under such regulations as may be agreed upon, and to employ such agents and clerks as they may deem necessary to carry on the business of such common agency; but nothing in this section contained shall authorize the redemption or purchase by such agency of any circulating notes at a discount of more than one half of one per cent, nor to relieve or discharge such incorporated bank, banking association or individual banker, from any duty or liability required or imposed by this act. $9. Nothing in this act contained shall be so construed as to authorize any incorporated bank, banking association or individual banker, to purchase, buy in, or take up, directly or indirectly, their circulating notes at an amount less than what purports to be due thereon at any other place, or in any other manner than is directed in and by this act. CHAP. 130. AN ACT respecting the appointment of receivers of moneyed institutions. PASSED April 27, 1841. [This chapter, included in the Legislative compilation of 1841, was repealed by Laws of 1842, ch. 3.] Actions may be CHAP. 56. AN ACT respecting suits and legal proceedings by or against banking associations. The People of the State of New York, represented in Senate and Assembly, do enact as follows: PASSED March 16, 1841. S1. Actions instituted against any association established commenced or to be established under the provisions of the "Act to by declara authorize the business of banking," passed April 18, 1838, or tion. of any act amending the same, may be commenced by decla ration, and copies of such declaration may be served on the president or cashier of such association, and in their absence on any director at the usual place of business thereof, or in such other manner as the court in which such action may be brought may direct. But all such actions shall nevertheless be commenced only against the persons and in the manner prescribed or permitted by the acts above mentioned. CHAP. XX. ers and as spectively snits other. § 2. Any person who shall be or shall have been an asso- Sharehold ciate or shareholder of any such association, may in respect sociations of any demand which he may have, either solely or jointly marve with any other person, against such association, commence maintain and prosecute, either solely or jointly (as the case may be,) against the any action suit or other proceeding in law and equity against the president of such association; and any president of such association may commence and prosecute any action, suit or other proceeding in law or equity, against any person who may be or may have been an associate or share-holder of such association, either alone or jointly with any other person against whom such association may have any demand whatever. All such suits or proceedings by or against such president, shall be conducted and have the same legal effect as if such associate or shareholder had never been a member of such association. Nor shall any action or suit be in any way affected by reason of the plaintiff's or defendant's or any other person who may be in any way interested in such action, being or having been a shareholder or associate of such association. Nor shall it be necessary in any process, pleading or proceeding in behalf of or against any such association, to name the individuals composing the same. interest in against de the associa $3. No claim or demand which any associate or share- Associates holder may have in respect to his share or interest in the stock not to capital or joint stock of any such association, or of any divi- be set off dends, interest or profit thereon, shall be capable of being set mands of off either at law or in equity against any demand which such tion. association may have against any associate or shareholder thereof. But all other demands may be set off in the same manner as in suits between individuals; and in any suit against the president of any such association as president thereof, he may set off demands belonging to it, in the same manner and with same effect as if such association was the nominal party in the cause. CHAP. 3. AN ACT to repeal an act entitled "An act respecting the appointment of receivers of moneyed institutions," passed April 27th, 1841, and to limit the compensation of re ceivers. PASSED January 22, 1842. The People of the State of New York, represented in Senate and Assembly, do enact as follows: 1. The act entitled "An act respecting the appointment of receivers of moneyed institutions," passed April 27th, 1841, is hereby repealed. $ 2. Receivers of moneyed institutions shall be entitled to the same commissions and compensation for their services as are now allowed by law to executors and administrators, and no greater or other commissions or compensation than is hereby allowed, shall be received or retained by them. CHAP. 218. AN ACT to abolish the office of Bank Commissioner, and for other purposes. PASSED April 18, 1843. The People of the State of New York, represented in Senate and Assembly, do enact as follows : $1. Every chartered bank shall take an account of its notes for circulation on the first day of July, eighteen hundred and forty-three, and shall return to the comptroller, under the oath of the president and cashier, a statement of all the notes of the bank which it has in possession, or in any way outstanding or in circulation on that day, specifying the amount of bills of each denomination, and the aggregate amount of the whole circulation, and shall, at the same time, deposit with the comptroller their plates, and no bank shall after the time in that day to which the return of the president and cashier is made up, issue any of its own notes which have not been countersigned and registered by the comptroller; but if the comptroller shall be unable to supply any bank with countersigned and registered notes as fast as such bank may require, on and after the first of July, eighteen hundred and forty-three, such bank may be permitted by the comptroller to re-issue so much of its old circulation within the limits prescribed by law, as may be necessary, not exceeding the amount returned to be outstanding on that day, nor shall any such issue take place until an application has first been made to the comptroller for countersigned and |