Rules for the 1. At least two-fifths of the capital stock shall be reserved for the establish ment of banks and branches. 1823-(17) Preamble. Bank established. 'state. 2. A proportion of power in the direction of the bank shall be reserved 4. The remedy for collecting debts shall be reciprocal, for and against 5. No bank shall commence operations until half of the capital stock subscribed for, be actually paid in gold or silver, which amount shall, in no case, be less than one hundred thousand dollars. 6. In case any bank or branch bank shall neglect or refuse to pay, on demand, any bill, note, or obligation, issued by the corporation according to the promise therein expressed, the holder of any such note, bill, or obligation, shall be entitled to receive and recover interest thereon, until the same shall be paid, or specie payments are resumed by said bank, at the rate of twelve per cent. per annum, from the date of such demand, unless the general assembly shall sanction such suspension of specie payments, and the general assembly shall have power, after such neglect or refusal, to adopt such measures as they may deem proper, to protect and secure the rights of all concerned, and to declare the charter of such bank forfeited. 7. After the establishment of a general state bank, the banks of this state now existing, may be admitted as branches thereof, upon such terms as the legislature and the said banks may agree, subject, nevertheless, to the preceding rules. Whereas it is deemed highly important to provide for the safe and profitable investment of such public funds, as may now, or hereafter be in the possession of the state, and to secure to the community, the benefits, as far as may be, of an extended and undepreciating currency: § 1. Be it therefore enacted, &c. That a bank shall be, and is hereby established, in the name, and for the benefit of the state, to be known under the name and style of the "Bank of the State of Alabama," and the faith and credit of the state are hereby pledged for the state pledged support of the said bank, and to supply any deficiency in the funds for its sup- hereinafter specifically pledged, and to give indemnity for all losses. arising from such deficiency. Faith and credit of the port. University moneys to constitute part of the capital. Governor, president § 2. The moneys arising, or which may have arisen from the sale or rent of the lands given to this state, by the congress of the United States, for the support of a seminary of learning, shall form, compose, and constitute a part of the capital of said bank; and the governor, for the time being, together with the president and directors of the to issue stock said bank, or a majority of them, shall be authorized and required, for to trustees of and in behalf of the state, and with a pledge of the public faith and university. credit, to issue to the trustees of the university of Alabama, state and directors stock, or certificates of debt, bearing an interest of six per cent. per annum, payable half yearly to the said trustees, or kept subject to their order, according to the laws of the state, to the amount of such sum or sums, as may be from time to time paid over by the said trustees, to the president and directors of the said bank; the said interest to be forever applied to the use of said seminary: Provided, That the invested not amount vested as aforesaid, as part of the capital of said bank, shall 100,000 dolls. not exceed one hundred thousand dollars. Amount to exceed cent. fund to § 3. All the moneys which may arise from the three per cent. Three per granted to this state, by the congress of the United States, on the net form part of proceeds of lands which have been, or shall be sold by the United capital. States, within this state, from and after the first day of September, 1819, shall constitute a part of the capital of said bank, and shall be so vested, as the same may be received by this state; and the net proceeds, or banking dividends of said capital, shall be applied to the making of roads and canals, and improving the navigation of the rivers within this state, or be vested so as to augment the capital, until such application shall be directed by law. vernment tal. §4. All the moneys which may arise, or have arisen, from the grant Seat of goof the United States to this state, of sixteen hundred and twenty fund to form acres, for the seat of government thereof, shall form a part of the ca- part of capipital of said bank; and the net proceeds or banking dividends of said capital, be applied to objects connected with the seat of government, or be vested, so as to augment said capital, until such application may be directed by law. lease of salt springs. § 5. All the moneys which may arise from the lease of the salt- Proceeds of springs, granted to this state by the United States, shall form a part of the capital of said bank, and the proceeds shall be vested, so as to continually increase the capital, until otherwise provided for by law. § 6. All the moneys which may arise from escheats in this state Proceeds of shall form a part of the capital of said bank, and shall be so vested, escheats. whenever sums amounting to one hundred dollars, shall have accumulated in the treasury; but no investment shall be required to be made of a less sum than one hundred dollars, and the proceeds of the same shall be continually vested so as to augment the capital, until otherwise directed by law. § 7. All other public funds, which the state may hereafter become All other possessed of, shall form a part of the capital of said bank, should the public funds investment thereof be authorized by law. may be invested. and commis issue state deemable. § 8. The governor, and five commissioners, to be appointed by a Governor joint vote of both houses of the general assemby, shall be authorized sioners auto issue state stock, redeemable after a term of years, not exceeding ten thorised to years, or at the pleasure of the state, to an amount not exceeding one stock. hundred thousand dollars, bearing an interest not exceeding six Amount, inper terest, and cent. per annum, payable half yearly, at the treasury of this state, or when reat such place as the governor, and the said commissioners, may contract for in the issue of the said stock: the said stock, when so issued, to be in aid of the capital of the said bank; and all the moneys which Public funds may at any time be in the treasury, are hereby pledged for the regular the state payment of said interest, in time and manner as aforesaid, and the pub- pledged for lic funds of the state, of every nature and kind whatsoever, (the uni- tion. versity fund, and three per cent. fund excepted,) are hereby pledged to secure the principal of said stock, and also, the good faith and credit of the state, in any case of deficiency of the said public funds. 9. The following powers, rules, conditions, limitations, and restrictions shall be fundamental laws of the said bank, viz: and credit of its redemp directors. 1st. The president and directors for the time being, shall have Power of power to elect and remove the cashier; and they shall also have resident and power to appoint such officers, clerks, and servants under them, as shall be necessary for executing the business of the said corporation. 2d. They shall receive money on deposit, and pay away the same Shall receive to order, free of expense; deal in bills of exchange, and discount posit. notes made payable and negotiable at said bank, with two or more May deal in good names thereon, or secured by a deposit of bank or other public notes. stock, at not more than two-thirds of its value, at a rate of interest money on de bills and Discounts not to ex cecd 2,000 dolls. Debts not to exceed twice not exceeding six per cent. per annum. No individual, partnership, or body corporate, (the trustees of the university of Alabama in their official capacity excepted,) shall be indebted, either directly or indirectly, by discount as aforesaid, to the bank, in a greater amount than two thousand dollars. 3d. The total amount of the debts, which said corporation shall at the amount any time owe, whether by bond, note, bill, or contract, shall not exceed twice the amount of its capital, over and above the moneys then actually deposited in bank for safe-keeping, unless the contracting of any greater debt shall have been previously authorized by a law of this of capital. Directors to be individually liable for debts illegally con. tracted. state. 4th. In case of excess, the directors under whose administration it shall happen, shall be liable for the same in their private capacities, and an action of debt may, in such case, be brought against them, or any of them, their or any of their heirs, executors, or administrators, in any court of this state having jurisdiction, by any creditor or creditors of the said corporation, and may be prosecuted to judgment and execution, any condition, covenant, and agreement, to the contrary notwithstanding. But this shall not be construed to exempt said bank, or the lands, tenements, goods, or chattels of the same; and on their insufficiency, the state of Alabama, from being also liable for, and being chargeable with the said excess. Such of the said directors as dissenting, may have been absent when said excess was contracted or created, or may have dissented from the resolution or act, by which the same was contracted or created, may respectively exonerate themselves from being individually liable, by entering, if present, their dissent on the books of the bank, at the time the debt may be so contracted, and forthwith giving notice of the same to the comptroller of the state. Directors, absent or to be exonerated. President and directors by general 5th. Immediately after the passing of this act, the legislature shall to be elected proceed to elect, by joint vote, a president and twelve directors to manage and conduct the business of the said bank, whose offices shall continue for one year, and until their successors shall be duly qualified, and all future elections of the president and directors shall be by joint vote of the general assembly. assembly. Directors in their board, 6th. In case of vacancy occasioned by the death, resignation, or fill vacancy removal out of the state, of any director, a majority of the directors shall fill such vacancy, and the director so appointed shall hold his office during the unexpired term of service of the director so dying, resigning, or removing out of the state. or in the of dent. 7th. In case of the death, resignation, or removal out of the state, fice of presi- of the president, (unless such removal be temporary, and by permission of the board of directors,) the directors shall appoint one of their own body a president, who shall serve until the next session of the legislature, when such vacaney shall be filled by joint vote of both houses of the general assembly. Certain persons disqua lified from 8th. No person who is not a citizen of this state, or who is a director of any other bank, or copartner of any such director, shall be being officers eligible as president or director of this bank: nor shall any person of the bank. who is a member of the general assembly of this state, be eligible to any office in said bank, or any branch thereof, during the time for which he is elected. to constitute a board. Not less than 9th. Not less than five directors shall constitute a board for the five directors transaction of business, of whom the president shall always be one, except in case of sickness or necessary absence, in which case his place may be supplied by any other director whom he, by writing under his hand, shall nominate for the purpose, and in default of such nomination by the president, or in the case of the sickness or necessary absence of the person so appointed, in either event, the board of directors may appoint a temporary president. kept and pro 10th. The directors shall keep fair and regular entries of their pro- Books to be ceedings, in a well bound book, to be provided for that purpose; and on ceedings any question, where two directors shall require it, the yeas and nays entered. of the directors shall be duly inserted on the minutes, and those minutes shall be at all times, on demand, produced to the legislature, or any committee thereof, who may be legally authorized to require the same; and on all such questions, every member present shall be required to vote. cashier, tel 11th. Every president and cashier, before he enters on the execution President, of his duty, shall give bond with two or more securities, to the satis- ler, and clerk faction of the directors, in a sum not less than fifty thousand dollars, to give secuconditioned for his good behaviour; and the tellers and clerk shall give security in a sum not less than ten thousand, nor more than twenty thousand dollars. rity. &c. to take 12th. The president, directors, cashier, and all other officers and ser- All officers, vants shall take the following oath on entering on the duties of their respective offices:-"I, A. B. do solemnly swear that I will faithfully discharge the trust reposed in me as of the Bank of the State of Alabama. So help me God." Style of the 13th. This bank is hereby incorporated, and made a corporation and Bank incorbody politic, by the name and style of The President and Directors ported. of the Bank of the State of Alabama, and so shall continue until the corporation. first day of January, one thousand eight hundred and forty-five; and by that name shall be, and is hereby made, able and capable in law Powers. to sue and be sued, plead, and be impleaded, answer, and be answered, defend, and be defended in courts of record, or any other place whatsoever; and also to make, have, and use a common seal, and the same to break, alter, and renew, at their pleasure; and also to ordain, establish, and put in execution, such by-laws, ordinances, and regulations, as shall seem necessary and convenient for the government of the said corporation, not being contrary to the laws, or to the constitution of this state, and generally to do and execute all and singular, such acts, matters, and things, which to them it shall or may appertain to do subject, nevertheless, to the rules, regulations, restrictions, limitations, and provisions, prescribed in this act. to issue notes. 14th. The president and directors shall have power to issue notes, Empowered signed by the president, and countersigned by the cashier, not under the denomination of one dollar, on the behalf of said corporation, for such sums, and with such devices, as they may deem most expedient and safe. grant of 15th. They shall also be capable of exercising such other powers General and authorities, as may be necessary for the well-governing and ordering the affairs of the said corporation, and of promoting its interests and its credit. powers. seal assigna. § 10. The bills obligatory, and of credit, under the seal of said Bills under corporation, which shall be made to any person or persons, shall be ble by en assignable by endorsement thereupon, under the hand or hands of dorsement. such person or persons, and of his, her, or their assignee or assignees, and so as absolutely to transfer and vest the property thereof, in each and every assignee or assignees, successively; and to enable such assignee or assignees, to bring and maintain an action thereupon, in his, her, or their own name, or names. And bills or notes which may be issued by order of the said corpora- Other notes tion, signed by the president and countersigned by the cashier thereof, and bills as promising the payment of money to any person or persons, his, her, or the notes signable as and bills of private per sons. No director, &c. to loan out money at an illegal rate of inter est. their order, or to bearer, though not under seal of the said corporation, shall be binding and obligatory upon the same in like manner, and with the like force and effect, as upon any private person or persons, if issued by him, her, or them, in his, her, or their private or natural capacity or capacities, and shall be assignable and negotiable in like manner as if they were so issued by such private person or persons; that is to say, those which are or shall be payable to any person or persons, his, her or their order, shall be assignable by endorsement, in like manner and with the like effect as foreign bills of exchange now are; and those which are or shall be payable to bearer, shall be negotiable, and assignable by delivery only: Provided, That all bills or notes issued by said bank, shall be payable on demand in specie, at the principal bank. § 11. No director, officer, clerk, or servant of the said corporation, shall be concerned, either directly or indirectly, in the practice of advancing or loaning out moneys, at an illegal rate of interest, whether the same be done or effected under the form and color of a purchase or exchange of notes, acceptances, due-bills, checks on banks, acknowledgments, or in any other way or manner whatsoever; and every such director, officer, clerk, or servant of this bank, who shall be concerned as aforesaid, in any such practices, shall, in addition to the usual penalties imposed by law, forfeit and pay for each offence, the sum of two thousand dollars, to be recovered by action of debt in any court of record in this state, one-half to the use of the informer, How recover and the other half to the use of the state; and to be levied of the goods and chattels, and houses, lands, tenements, and other hereditaments and real estates of the person or persons so offending, if any he or they shall have. Penalty. ed and levied. Unable to discharge penalty, to ed six months at least. And on failure of any property to answer the said penalty, by a return of nulla bona, the person or persons so offending, shall and be imprison- may be taken on execution upon a capias ad satisfaciendum, and being so taken, shall not be entitled to the benefit of any act made for the relief of insolvent debtors, until he or they shall have remained, and been confined in prison for the term of six months at least. And any such person being convicted by the verdict of a jury, of any of the practices aforesaid, whether he be a director, or officer, or servant of this bank, shall on motion of any director, be dismissed from the service of said bank. furnished with state bank's trans situation. General as- § 12. It shall be the duty of the president and directors to furnish sembly to be to the general assembly within the first week of every session, statements of the amount of capital stock of said corporation, and of the debts ments of the due to the same; of the moneys deposited therein; of the notes in circuactions and lation, and of the cash on hand, together with all other property of said bank, both real and personal. And the general assembly shall have a right to inspect such general accounts in the books of the bank, as shall relate to the said statement; and shall, whenever it may be deemed necessary, appoint a joint committee of both houses of the general assembly for that purpose, with full powers to send for persons and papers. Comptroller And it shall also be the duty of the comptroller to inspect such general account in the books of the bank as often as he may please; and it shall, report to the and it is hereby declared to be his duty, faithfully to report all and every violation of the fundamental rules of this corporation to the legislature: Provided however, That nothing in this clause shall imply a right of inspecting the account of any private individual or individuals, or any body politic or corporate, with the bank. to inspect books, and legislature. Notes receivable for all § 13. The bills or notes of the said corporation, originally made public dues. payable, or which shall have become payable on demand, in gold or |