and notes in out notice. promissory notes, payable to order or bearer, in the hands gotiable bills, of an endorsee or holder, who shall have received the same hands of in good faith, and for valuable consideration, and who had older withnot, at the time of discounting such bill or note, or paying such consideration for the same, actual notice, that such bill or note had been originally given, for a usurious consideration, or upon a usurious contract. [This Section amended by § 1 of the Act of May 15, 1837. See this act, post.] discover. § 6. Every person offending against the provisions of offenders this Title, shall be compelled to answer on oath any bill compelled to that may be exhibited against him in the court of chancery, for the discovery of any sum of money, goods or things in action so taken, accepted or received, in violation of the foregoing provisions, or either of them. &c., to bar § 7. Every person who shall discover and repay or re- Discovery, turn the money, goods, or other things so taken, accepted further ponor received, or the value thereof, shall be acquitted and aty. discharged from any other or further forfeiture, penalty or punishment, which he may have incurred by taking or receiving the money, goods or other thing so discovered and repaid, or returned as aforesaid. to pay inte loaned. 8. Whenever any borrower of any money, goods or Borrower things in action, shall file a bill in chancery for a discov-filing bill not ery of the money, goods or things in action taken or re- rest on sum ceived, in violation of either of the foregoing provisions, it shall not be necessary for him to pay, or offer to pay, any interest whatever on the sum or thing loaned; nor shall any court of equity require or compel the payment, principal Por or deposit, of the principal sum, or any part thereof, as a rowed. condition of granting relief, to the borrower in any case of a usurious loan forbidden by this chapter. Nor to pay days how to 9. For the purpose of calculating interest, a month Months and shall be considered the twelfth part of a year, and as con- be reckoned. sisting of thirty days; and interest for any number of days, less than a month, shall be estimated by the proportion which such number of days shall bear to thirty. culated in 10. Whenever, in any statute, act, deed, written or How inteverbal contract, or in any public or private instrument rest to be cal whatever, any certain rate of interest is or shall be men- certain case. tioned, and no period of time is stated for which such rate is to be calculated, interest shall be calculated at the rate mentioned, by the year, in the same manner as if the words "per annum" or "by the year," had been added to such rate. ACT OF MAY 15, 1837. (LAWS 1837, CHAP. 430, P. 486.) Amend. AN ACT to prevent usury. Passed May 15, 1837. The People of the State of New York, represented in § 1. The fifth Section of Title three, of chapter four, ment of fifth part two of the Revised Statutes is hereby amended so as to read as follows: section. Witnesses. Offenders compelled to answer. Bills in § 5. All bonds, bills, notes, assurances, conveyances, all other contracts or securities whatsoever (except bottomry and respondentia bonds and contracts), and all deposits of goods or other things whatsoever, whereupon or whereby there shall be reserved or taken, or secured or agreed to be reserved or taken, any greater sum, or greater value, for the loan or forbearance of any money, goods or other things in action, than is above prescribed, shall be void; but this act shall not affect such paper as has been made and transferred previous to the time it shall take effect. $2. Whenever in an action at law the defendant shall plead or give notice of the defence of usury, and shall verify the truth of his plea or notice by affidavit, he may, for the purpose of proving the usury, call and examine the plaintiff as a witness, in the same manner as other witnesses may be called and examined. § 3. Every person offending against the provisions of the said title, or of this act, may be compelled to answer on oath, any bill that shall be exhibited against him, in the court of chancery, for relief, or discovery, or both. 84. Whenever any borrower of money, goods, or things Chancery. in action, shall file a bill in chancery, for relief or discovery, or both, against any violation of the provisions of the said title or of this act, it shall not be necessary for him to pay or offer to pay any interest or principal on the sum or thing loaned; nor shall any court of chancery require or compel the payment or deposit of the principal sum or interest, or any portion thereof, as a condition of granting relief or compelling or discovering to the borrower in any case, usurious loans forbidden by said title or by this act. court. $5. Whenever it shall satisfactorily appear by the ad- cower of missions of the defendant, or by proof, that any bond, bill, note, assurance, pledge, conveyance, contract, security, or any evidence of debt, has been taken or received in violation of the provisions of said title or of this act, the court of chancery shall declare the same to be void, and enjoin any prosecution thereon, and order the same to be surrendered and cancelled. § 6. Any person who shall directly or indirectly receive any greater interest, discount, or consideration than is prescribed in the said title, and in violation of the provisions of said title or of this act, shall be deemed guilty of a misdemeanor, and on conviction thereof, the person so offending shall be punished by fine not exceeding one thousand dollars, or imprisonment not exceeding six months, or both. Punish ment. charge grand -jury. § 7. It shall be the duty of all courts of justice to Court to charge the grand jury especially to inquire into any viola-j tion of the provisions of the said title, or of this act. ment for false § 8. Every plaintiff examined as a witness pursuant to Punishthe provisions of this act, or any defendant under the pro- swearing." visions of this act, who shall swear falsely, shall upon conviction thereof suffer the pains and penalties of wilful and corrupt perjury; but the testimony given by any plaintiff, or the answer of any defendant, made pursuant to the said title or of this act, shall not be used against such person before any grand jury, or on the trial of any indictment against such person. § 9. So much of title third, chapter fourth and part Repeal. second of the Revised Statutes, as is inconsistent with the provisions of this act, is hereby repealed. § 10. This act shall take effect on the first day of July Act to take next. effect July 1, 1887. ACT OF APRIL 6, 1850. (LAWS 1850, CHAP. 172, P. 334.) Defence of usury. Corporation. AN ACT to prohibit corporations from interposing the defence of usury in any action. Passed April 6, 1850. The People of the State of New York, represented in § 1. No corporation shall hereafter interpose the defence of usury in any action. § 2. The term corporation, as used in this act, shall be construed to include all associations and joint stock companies having any of the powers and privileges of corporations not possessed by individuals or partnerships. §3. This act shall take effect immediately. Corporations, how created. Debts of CONSTITUTION OF THE STATE OF (Adopted in 1846.) ARTICLE VIII. § 1. Corporations may be formed under general laws; but shall not be created by special act, except for municipal purposes, and in cases where, in the judgment of the legislature, the objects of the corporation cannot be obtained under general laws. All general laws and special acts, passed pursuant to this section, may be altered from time to time, or repealed. § 2. Dues from corporations shall be secured by such corporations, individual liability of the corporators and other means as may be prescribed by law. • Corpora tions" defined 3. The term corporations, as used in this article, shall be construed to include all associations and joint stock 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. for banking 4. The legislature shall have no power to pass any Charters act granting any special charter for banking purposes; but purposes. corporations or associations may be formed for such purposes under general laws. § 5. The legislature shall have no power to pass any Specie paylaw sanctioning in any manner, directly or indirectly, the ments suspension of specie payments by any person, association or corporation issuing bank notes of any description. bills or notes. § 6. The legislature shall provide by law for the regis- Registry of try 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. responsibili § 7. The stockholders in every corporation and joint Individual stock association for banking purposes, issuing bank notes ty of stockor any kind of paper credits, to circulate as money, after holders, 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 and fifty. of banks, § 8. In case of the insolvency of any bank or banking Insolvency association, the bill holders thereof shall be entitled to preference. preference in payment over all other creditors of such bank or association. |