Instalments

on stock,

and to whom

stockholder

state to pay

stalments on

ty therefor by

mortgage.

Sec. 53. The subscribers for stock at each of the branches, shall, at the time appointed by the president and directors of the state when, how, bank, pay in specie, twenty per cent of the amount subscribed, to paid. the commissioners having charge of the stock subscription books for the respective branches, as the first instalment on their stock; and the residue of said stock shall be paid in specie or its equivalent, in four equal semi-annual instalments of twenty per cent each. Each resident stockholder in said branches shall have the Resident right of having the instalments that shall become due on his stock may require paid for by the state of Michigan, in specie or its equivalent to the certain inproper branch, upon securing the amount of the same to the state, giving securito be repaid on or before the expiration of nineteen years from the bond and year eighteen hundred and thirty-nine, with interest thereon at the rate of seven per cent per annum, payable semi-annually, and securing the same to the state by giving a bond and mortgage on the fee simple of unincumbered improved real estate, the fair cash value of which shall be (exclusive of perishable improvements or timber standing thereon,) at least equal to twice the amount of such loan, or on unimproved land, which shall not be valued over two dollars per acre, the said bond and mortgage to be taken in the manner and subject to the provisions hereinafter specified. Any Stockholder stockholder who in executing any mortgage as aforesaid shall be fraud in givguilty of any fraud or deception, in regard to his title, shall forfeit to forfeit his his stock and the amount paid thereon to said branch bank.

guilty of

ing mortgage

stock.

bank to

stock in

pay the same.

Sec. 54. As soon as the stock shall have been subscribed and When state paid for at any of the branches as aforesaid, it shall be the duty subscribe for of the president and directors of the state bank to subscribe for branch and the stock on the part of the state, in such branch; and at the first general meeting of the board of directors of the state bank, after the organization of the board of directors of any such branch, they shall pay in specie to said branch or branches the first instalment of twenty per cent on the part of the state; and they shall in like manner pay each succeeding instalment of said stock subscribed as aforesaid on the part of the state: Provided, however, That the balance of the stock due from other stockholders shall be first paid or secured as aforesaid.

Proclama

zing bank

Sec. 55. When the president and directors of the state bank tion authoriand any of the branches shall have been qualified by taking their and branches oath or affirmation of office, and shall have organized themselves, and informed the governor that they are prepared to enter upon

to commence business.

Directors of state bank to

laws, bills,

&c., to branches.

the business of banking, he shall, by proclamation, authorize said state bank and branches to commence their business operations.

Sec. 56. At the first general meeting of the bank directors of deliver by the state bank, they shall deliver to the president and directors of each branch, the by-laws, rules and regulations for the same, together with the bills, notes, checks, books and papers provided for such branch, taking the necessary receipts therefor, and also for the amount of stock paid on the part of the state, in such branch; a duplicate of which receipts shall be filed by the president and directors of the state bank, in the office of the treasurer of state.

Failure on part of stock

first or

instalment.

Sec. 57. Should any failure of payment on the first or any holder to pay subsequent instalment take place on the part of any subscribers subsequent for said stock, then and in such case, the party failing shall forfeit and pay, if for the first instalment, the sum of ten dollars per share to the president and directors of the state bank, to be recovered by an action of debt; and in case of a failure to pay any subsequent instalment at the time required by this charter, the president and directors of the branch shall be at liberty to sell and transfer any such share or shares of stock at public auction, after giving ten days' notice thereof in writing, put up at the door of said bianch bank, and any surplus remaining after paying the amount due, and incidental charges, with ten per cent on the amount paid on such share or shares on which such instalment shall be due, shall be paid over to the owner or owners of such stock previous to the sale thereof; and if the same cannot be sold for sufficient to pay up the instalment then due thereon, the same shall be forfeited and become the property of the proper branch.

Dividends, to whom to be paid.

Sec. 58. The dividends declared by the directors of the state bank on the state stock, and on such portions of the stock belonging to the other stockholders who have had their stock paid for through the medium of the state loan, and which shall not have been paid for by such stockholders, shall be paid by the directors of the state bank and branches to the board of fund commissioners and not otherwise, unless upon the written instruction of the board to that effect; and it shall be the duty of the directors of the state bank to ascertain at the times of making their dividends, the amount due on the loan of the state to such stockholders, and declare the dividend thereof accordingly; and the dividends accruing on the stock, or such portions of the stock as shall not be

required to be paid to said board, shall be paid on demand to the holders thereof respectively, except in cases expressly provided for by this charter.

dends on

which state advanced

money insufficient to pay

Sec. 59. In case the amount of such dividend on individual When divistock so herein provided to be paid to the board of fund commis-stock on sioners shall not be sufficient to pay the interest due from the owner of such stock for the money so loaned to him by the state, interest. then it shall be lawful for said commissioners to demand and receive of said bank a sufficient sum from the dividends due on the residue of the stock of such owner as will pay the balance of such interest.

ceive note, &c., in pay

instalment, or discount it

purpose, &c.

Sec. 60. And it shall not be lawful for said bank or any branch Not to re to discount or receive any note or other evidence of debt in pay-ment of any ment of any instalment due or to become due on any shares of its stock, or with the intent of providing the means of making such for such, payment, or to receive or discount any note or evidence of debt, with the intent of enabling any stockholder to withdraw any part of the money paid in by him on his stock; nor shall said bank or any branch make any loan of its specie, or discount or receive any note or other evidence of debt for the purpose of furnishing means for any new branch to organize, or to enable any subscriber for or holder of shares of the stock of any branch to make pay. ment of any instalment due thereon.

vency of

branch to be deemed

Sec. 61. The insolvency of said bank or branch shall be deemed When insolfraudulent, unless its affairs shall appear upon investigation to have bank or been legally administered, and with the same care and diligence fraudulent. that agents receiving compensation for their services, are bound by law to observe; and it shall be incumbent on the directors and stockholders of the bank, or any branch, should the same become insolvent, to repel by proof the presumption of fraud.

liable to

stockholders

fraudulent

Sec. 62. In case of the fraudulent insolvency of said bank or Directors any branch, the president and directors of said bank or branch creditors and respectively, by whose acts or omissions the insolvency was in case of wholly or in part occasioned, and whether then in office or not, insolvency. shall each be liable in the first instance, to the creditors and stockholders of the said bank or branch, or any or either of them, for his proportional share of their respective losses; the proportion to be ascertained by dividing the whole loss among the whole number of directors liable; and if any such president or director shall be unable, by reason of being insolvent, or for any other

Stockholders' liability to creditors.

Bank and

branches to receive and pay out all moneys of the state.

&c. to depo

with them.

cause, to pay his proportional part of such loss, then the residue of said loss shall be borne and paid in equal parts by the remaining directors liable as aforesaid, until the whole loss shall be reimbursed, or the whole property, rights, credits and effects of each of said directors shall have been exhausted towards the payment of such loss; but this section shall not be construed to diminish the liability of directors as before declared.

Sec. 63. If the moneys remaining due to the creditors of said bank or any branch, whose insolvency shall be adjudged fraudulent, after distribution of its effects, and after the property, rights, credits and effects of the president and directors of such insolvent bank or branch shall have been exhausted, shall not be paid by the stockholders, the deficiency shall be made good by the contributions of the stockholders of the branch becoming insolvent. The whole amount of the deficiency shall be assessed on the whole number of shares of the capital stock of said branch, and the sum necessary to be paid on each share shall then be ascertained, and each stockholder shall be liable for the sum assessed on the number of shares held by him, not exceeding the nominal amount of such shares in addition to the sum paid, or which he may be liable to pay, on account of these shares; but before such contribution shall be required or assessment made, on any shares when the whole stock had been paid, the instalments unpaid on any shares, shall be required to be paid up, and the estimate of the deficiency made accordingly.

Sec. 64. The said state bank and branches shall receive and pay out at their counter, the revenue and other funds of this state, under the direction and control of the treasurer of the state or fund commissioners, whenever the legislature may so direct, and so soon as said bank and any of the branches shall be organized Treasurer, and ready for business, it shall be the duty of the state treasurer site moneys and all other public officers having in their possession or under their control, in any bank, or otherwise, any moneys, or funds of any description, belonging to this state, to deposite the same in some one of said branches to the credit of the state, designating the particular fund to which it belongs, and to take a receipt therefor from the cashier, which shall be a sufficient voucher for any such officer, on settlement of his accounts; but it shall not be lawful for said bank or any branch thereof to charge the state for any such service or disbursement.

capital stock.

Sec. 65. The capital stock of said bank may be increased by Increase of individual subscriptions at any one or more branches, whenever the president and directors of the state bank shall consider such increase would promote the interest of the state and the welfare of the institution, reserving to the state the right to an equal increase of capital stock on her part: Provided, however, That such capital shall not be increased to exceed five hundred thousand dollars in any one year, and shall never exceed in the whole amount, the sum of five millions of dollars, and shall be apportioned by the directors of the state bank among the several branches, according to the forty-seventh section of this act.

establish

tional

Sec. 66. The state reserves the right of establishing three ad- State may ditional branches, at any time after said bank shall have been five three addiyears in operation, to be subject as near as may be, to all the branches. powers, privileges and restrictions of this charter.

fund commis

missioners to

take oath,&c.

Sec. 67. The president of said bank and the directors appointed Board of by the legislature, shall constitute a standing board of fund com- sioners; commissioners. The president of said bank shall be the president and give bond, the cashier of said bank shall be the clerk of said board, and the said president, commissioners and clerk shall, before entering upon the discharge of their respective duties, severally give bond to the state of Michigan, in a penalty of fifty thousand dollars, with security to be approved by the auditor general, the secretary of state and state treasurer, or a majority of them, conditioned for the faithful performance of the duties of their office, and the lawful and proper application of all funds belonging to the state, that may come into their possession, or under their control; which bonds shall be filed in the office of the secretary of state, and the legislature may at any time require additional bonds and further security from any or all of said officers; and if any such officer shall refuse or neglect to give bond and security as required by this section, for the space of thirty days after his election, or, after such requirement by the legislature, his office shall be considered as vacated, and the said president, commissioners and clerk, and all agents they may employ, shall also, before entering upon the discharge of their respective duties, take an oath or affirmation faithfully to discharge the trust reposed in them, and that they will truly and faithfully account for, and pay over to the state bank, or otherwise as required, all moneys that may come into their hands, or under their control, which oath or affirmation shall