PART I.

Association may reduce capital stock.

Notice to

dent to ex

assets.

device for counterfeiting bank notes, or any counterfeit or spurious bank notes, immediately after using them when necessary in evidence against the parties implicated, to surrender the same to the superintendent of the banking department to be destroyed under his supervision, and it shall be the duty of the superintendent to destroy all such plates, devices or notes thus surrendered to him, in the same manner as he is now authorized to do in the case of banks whose charters have expired or have become insolvent, and to report the same to the legislature in his annual report.

CHAP. 277.

AN ACT to provide for the reduction of the capital stock of banking associations.

PASSED April 13, 1859.

The People of the State of New York, represented in Senate and Assembly, do enact as follows :

$ 1. It shall be lawful for a banking association, now or hereafter to be organized, under the general banking laws of this state, to reduce its capital stock to an amount which shall be equal to the value of the property and effects of such banking association, above and beyond all its debts and liabilities, and thenceforth the capital stock of such association shall be such reduced amount, and the par value of the shares thereof shall be reduced in the same proportion; but in no case shall such capital stock be reduced below one hundred thousand dollars, the amount now required by law for a banking association.

$2. Whenever a banking association shall propose to reduce superinten its capital stock, according to the provisions of the first section of this act, due notice thereof shall be given to the superintendent of the banking department, signed by a majority of its board of directors, and accompanied by the written assent to such reduction, of at least two-thirds in amount of Superinten- the shareholders of such association. It shall be the duty amine of the said superintendent, upon the receipt and filing of such notice, and within a reasonable time thereafter, to make or cause to be made an examination of its books, property, effects and liabilities; upon which examination the officers thereof may be examined on oath as to the debts, liabilities, Determine property and effects thereof. From the result of such examination the said superintendent shall determine the value, in his judgment, of such property and effects, above and beyond the debts and liabilities aforesaid, and certify the same in writing, and the amount so determined and certified, shall be thereafter the capital stock of such banking association, and the par value of the shares thereof shall be proportionably reduced.

amount of capital

stock.

CHAP. XX

banker.

$3. The expense of the examination herein provided for, Expense to by the superintendent of the banking department, or caused be paid by to be made by him, shall be paid by the banking association for whose benefit the application shall be made.

to be re

54. The determination and certificate in writing, to be Certificate made by the said superintendent, of the amount to which the corded. capital stock of any banking association has been reduced under this act, shall be recorded in the office of the clerk of the county in which such banking association shall be located, and a certified copy thereof filed in the bank department of the state of New York, and the same shall be published by the said superintendent once a week for six weeks successively, Notice to bo in the state paper, and at least one newspaper in the county where such association shall be located, at the expense of the banking association applying for such reduction of its capital stock.

published.

not to be

$5. Nothing in this act contained shall in any way change Securities or lessen the liability of the stockholders of any banking asso- impaired. ciation reducing its capital stock under its provisions, to the bill holders or other creditors thereof, or any indebtedness or engagement now existing or that may so exist, either absolutely or contingently, against such association, prior to or at the time when such reduction shall take place, or by which the rights, remedies or security of the then existing creditors shall be weakened or impaired.

CHAP. 62.

AN ACT to authorize the incorporated banks of the state to take and hold any stock of the United States or of the state of New York.

PASSED March 27, 1862.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

$1. That it shall and may be lawful for any bank incorporated by any act of the legislature of the state of New York, or any banking association, or individual bankers to take and to become the owner of any stock of the United States or of the state of New York.

$2. That so much of the several acts incorporating such banks or authorizing the business of banking and the acts amendatory thereof as is inconsistent with the foregoing section be and the same is hereby repealed.

PART L

Authority.

Proceed

ings to consolidate.

Consent of stockhold

ers.

CHAP. 422.

AN ACT to provide for the consolidation of banking asso

ciations.

PASSED April 22, 1862; three-fifths being present. The People of the State of New York, represented in Senate and Assembly, do enact as follows:

S1. Any two or more banking associations, organized under the general banking laws of this state, and located in the same city, village or town, are hereby authorized to consolidate the same into a single association, to be located in the same place in the manner following:

$ 2. The directors of the said associations may enter into an agreement under their respective corporate seals, for the union or consolidation of the said associations, prescribing the terms and conditions thereof, the mode of carrying the same into effect, the name and duration of the new association, the number of directors, the names of the persons to constitute the first board of directors, the time and place of holding the first election of directors, the manner of converting the shares of each of said associations into the shares of the new association, with such other details and provisions as they may deem expedient, not inconsistent with the provisions of the act to authorize the business of banking, and the acts amendatory thereof. Notice of the intention to consolidate said associations shall be given personally or by mail to each stockholder of each of said associations, at least ten days previous to entering into said agreement.

$3. The written consent of stockholders, owning at least two-thirds in amount of the capital stock of each of said associations, shall be requisite to the validity of said agreement. Upon the presentation to the superintendent of the banking department, of the said agreement duly proved or acknowledged, together with satisfactory proof, by affidavit or otherwise, of the assent thereto of stockholders owning two-thirds in amount of the capital stock of each of said associations so proposing to consolidate, and of the service of notice upon each stockholder as aforesaid, the said superintendent shall, within a reasonable time thereafter, make or cause to be made an examination of the books, property, effects and liabilities of such associations; upon which examination the officers thereof may be examined on oath as to the debts, liabilities, Superinten property and effects of said associations respectively. From determine the result of such examination the said superintendent shall

dent to

value.

determine the value, in his judgment, of such property and effects above and beyond the debts and liabilities aforesaid, and certify the same in writing, and the amount so determined and certified shall be thereafter the capital stock of such consolidated banking association.

Expense.

$4. The expense of the examination herein provided for CHAP. XX. by the superintendent of the banking department, or caused to be made by him, shall be paid by the banking associations for whose benefit the application shall be made.

in writing

corded.

Filed in

$5. The determination and certificate in writing to be made Certificate by the said superintendent of the amount at which the capital to be restock of any banking association has been fixed under this act, shall be recorded in the office of the clerk of the county in which such banking association shall be located; and a cer- bank detified copy thereof filed in the bank department of the State partment. of New York; and the same shall be published by the said superintendent once a week for six weeks successively, in the state paper, and at least one newspaper in the county where such association shall be located, at the expense of the said banking association.

dated asso

$6. Upon the recording of the said agreement and certifi- Consolicate, the said consolidated associations shall be and become a ciation. single banking association, in accordance with the said agreement and certificate, with the same franchise, rights, powers and privileges, and subject to the same duties, conditions and limitations, as the several constituent associations; and such consolidated association shall be vested with all the estate, property, credits and effects of the constituent associations, without deed or other transfer, and shall be liable for all their contracts, debts, obligations and liabilities; and the separate existence and operation of such constituent associations shall thereupon cease and determine.

clause

suits.

$7. No action or other proceeding pending before any court Se as to or tribunal, in which either of the constituent associations may pending be a party, shall be deemed to have abated or been discontinned by reason of their consolidation; but the same may be prosecuted to final judgment and execution in the same manner as if this act had not been passed, or the said new association, by order of the court in which such proceedings may be pending, may be substituted as a party in place of either of the original associations, in any stage of such proceedings. $8. Nothing in this act contained shall in any way change Liability or lessen the liability of the stockholders, of any banking associations consolidating their capital stock under its provisions, to the bill holders or other creditors therefor; or any indebtedness or engagement now existing or that may so exist, either absolutely or contingently, against such association prior to or at the time when such consolidation shall take place; or by which the rights, remedies or security of the then existing creditors shall be weakened or impaired.

not changed

any stock

$9. If any stockholder in either of the associations availing Dissent of itself of the provisions of this act, who shall not have assented holder. to such consolidation, shall, within twenty days after the agreement and certificate hereinbefore mentioned shall be recorded in the clerk's office of the county in which such associations are located, object in writing to said consolidation,

PART I.

and demand payment for his stock, such consolidated association shall within three months from the filing of such dissent, pay to the dissenting stockholder the value of his stock, as determined in the certificate of the superintendent of the banking department aforesaid; and upon payment so made by the said association, the interest of said stockholder in the property and effects of said association shall cease, and the said stock may be held and disposed of by the said association for its own benefit.

Unclaimed dividends aud deposite to be reported.

Surplus fund.

Deposits.

CHAP. 347.

AN ACT in relation to savings banks.

PASSED May 6, 1839.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

S 1. The report and publication of the statement of unclaimed dividends and deposites, and of the names, residence and occupation of the depositors required to be made by the several savings banks in this state, by an act passed May 9th, 1835, shall only be in relation to such dividends and deposites, no part of which or of the interest accruing thereon, shall have been claimed or drawn out within three years next preceding the date of such statement; and such statement shall also be made annually to the comptroller of this state, on or before the first day of January in each year.

[Section 2 provides for an inspection by the Bank Commissioners.]

$3. The board of trustees of the said savings banks are hereby authorized to accumulate gradually and hold invested in like securities, as authorized by the act incorporating said banks, a surplus fund not exceeding ten per cent on the amount of deposites in said banks respectively, to the end that in case of a reduction in the market price of the securities or public stocks, held or to be held by the said banks, or any of them, below the par value thereof, any loss to the depositors by reason of such reduction may be prevented or made good to them by means of said surplus fund.

CHAP. 478.

AN ACT in relation to deposits by banks for savings. PASSED December 15, 1847. The People of the State of New York, represented in Senate and Assembly, do enact as follows:

1. It shall be lawful for the trustees of banks for savings, who are authorized to make temporary deposites in any of the incorporated banks, to make such deposites with any