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;;trii.^:^;<':;JjJi:u-':';^:?-;''i^-





A Treatise



ox THE LAW OF



BANKS AND BANKING



By the Editorial Staff of The Michie Company



UNDER THE SUPERVISION OF



THOMAS JOHXSOX MICHIE



Volume I



Tni-: MrcHiE Company, Law Publishers
CuAi<i.()TTi:s\ii.i.i:, Va.



T



Copyright 1913

BY

The Michie Company



EXPLANATORY NOTE



This book is arranged on the KEY-Xl'MBER SYSTE^I. This means
that topics and section numbers of this book are identical with those in
Decennial Digest, and in American Digest, Kev-Xump.er Series, title,
"Banks and Banking." Moreover, the indexes in the advance sheets and
bound vokmies of the National Reporter System are arranged on the
same system, and are current supplements to this work.

Whenever you find a case in point in this work and wish to find otiier
authorities on the same point, turn to the same topic and section number
in these other digests and indexes.

Illustration : A legal proposition found in this work under

§ 5, "Charter Provisions," will also be found under

Banks and Banking, § 5, in the Decennial Digest ;
Banks and Banking, § 5, in the American Digest,

Key-Xumber Series, and
Banks and Banking, § 5, in all other Key-Xumber

Digests and Indexes.



687580



TABLE OF CONTENTS



\'OLUME I



CHAPTER I.

I. Control and Regulation in General.

5; 1. Right of Banking in General ^

§ 2. What Are Banks •* • • 6

§ 3. Power to Control and Regulate 1-^

§ 4. Constitutional and Statutory Provisions 15

§ 5. Charter Provisions 16

§ 6. Authority or License to Do Business 17

§ 7. Unauthorized Banking 1"

§ 8. In General 17

§ 9. -: Validity of Transactions and Liabilities Incurred 19

§ 10. Penalties and Actions Therefor 32

§ 10 (1) Statutory Provisions and Construction 22

§ 10 (2) Enforcement 23

§ 10 (2a) Petition — Sufficiency 23

§ 10 (2b) Replication to Plea 23

§ 10 (2c) Quo Warranto 24

§ 10 (2d) Jurisdiction and Venue 24

§ 10 (2e) Service of Process and Execution 25

§ 11. Criminal Prosecutions 25

§ 11 (1) Offense as Statutory One 25

§ 11 (2) Indictment 26

§ 11 (3) Information 26

§ 12. License Fees and Taxes 26

§ 12 (1) Power to Impose 26

§ 12 (2) Exemptions 28

§ 12 (3) Interest 28

§ 12 (4) Effect of Payment 28

S 13. Limitation of Indelitedness 29

S 14. Reserves 29

S 15. Safety Funds and Deposits of Securities '^O

§ 15 (1) Necessity and Constitutionality ■■2

§ 15 (2) Obligation Therefor and Payment -2

§15 (3) Lien of State — Substitution of Other Securities 32

§ 15 (4) Effect of Failure to Deposit ^'2

§ 15 (5) Loss ■'•'

§ 15 (6) Custody, Title and Control •'•*

§ 15 (7) Payment of Debts Therefrom '-^^

§ 15 (8) School Funds ^5

§ 16. Reports and Statements '^•'

§ 16 (1) Duty to Make and I-'.ffccl of I'ailurc •'•'>

§ 16 (2) Time to Make •^''



yi TAliLli OF COxXTIiNTS.

§ 16 (3) Form and Contents ^^

§ 16 (4) Veritication • ^^

§ 16 (5) Returns as Notice of Bank's Condition 38

tj 17. Public Examiners

!J 17 (1) Appointment

§ 17 (2) Compensation

§ 17 (3) Ueni.nal ^^

§ 17 (4) Powers ^^

§ 17 (5) Effect on 'J'itle to I'roperty and Rights of Action 41

§ 18. Foreign Banks ^•'■

§ 111. Penalties for \'ioiations of Kegulations 42

§ 20. Offenses liy Banks or I'.ankcrs 4^

§ 31. Offenses Ijy Persons Ucaling with Banks 42

CHAPTER II

II. P,.\.\KiN(; Corporations and Associations.
A. IxcoKi'oRAiiox, C)roantz.\tion, and Incidents of Existence:.

§ 22. Nature and Formation in General 45

§ 23. Incorporation 46

§ 23 (1) Power to incorporate 46

§ 23 (2) Conchtional Incorporation— Conditions Precedent and Begin-
ning of Corporate Existence 48

§ 23 (3) Results of Incorporation 49

§ 23 (3a) As to Liabilities, Privileges and Powers 49

§ 23 (3b) Charter as Contract, and Amendment or Repeal.... 50

§ 23 (3c) Sale of Franchise and Effect 52

§ 23 (3d) Notice of Charter 52

§ 23 (4) Amendment 53

§ 24. Partnerships and Joint Stock-Companies : 53

§ 25. Special Charters or .Acts 53

§ 25 (1) Power to Grant • 53

§ 25 (2) Operation and Effect 54

§ 25 (3) Amendment, Renewal and Repeal 54

§ 26. General Laws 55

§ 27. Defective Incorporation or Organization 56

§ 28. Evidence of Existence 59

§ 28 (1) In General. 59

§ 28 (la) Presumptions and Burden of Proof 59

§ 28 (lb) Judicial Notice 60

§ 28 (Ic) As Question for Jury 60

§ 28 (Id) Of National Banks 60

§ 28 (2) Charter or Certificate 60

§ 28 (3) Parol Evidence 61

§ 28 (4) User and Repute 62

§ 29. Term of Existence 62

§ 30. Extension, Renewal or Transfer of Franchise 63

§ 30 (1) Extension or Renewal 63

§ 30 (2) Assignment and Transfer of Rights, Franchises, etc 63

§ 31. Name 64

§ 31 (1) Statutory Requirements 64

§ 31 (2) Change of Name 65



TABLE OF CONTEXTS. VII

§ 32. Location and Place of Business 66

§ 33. Branches 67

§ 33 (1) Distinct Corporate Existence and Authority 67

§ 33 (2) Creation 68

§ 33 (3) Powers 68

§ 33 (4) Actions 68

§ 34. Constitution, Charter and By-Laws 69

§ 34 (1) In General 69

§ 34 (2) Charter as Notice 69

§ 34 (3) By-Laws 69

§ 34J/2. Repeal or Amendment 70

CHAPTER III.

B. Capital, Stock and Dividends.

§ 35. Statutory Provisions 75

§ 36. Amount of Capital and Shares 75

§ 37. Increase of Capital Stock and Number of Associates 78

§ 37 (1) In General 78

§ 37 (2) Mode and Validity 78

§ 37 (3) Apportionment and Disposition of Increased Stock 79

§ 38. Reduction of Capital Stock 80

§ 38 (1) In General 80

§ 38 (2) Mode and Validity 80

§ 38 (3) Disposition of Proceeds of Surrendered Stock 80

§ 38 (4) Relief against Reduction 81

§ :'>8y2. Surrender of Stock to Bank 81

§ ;')9. Subscription to and Issue of Stock 83

§ 39 (1) Right to Subscribe 82

§39 (2) Form and Requisites, Validity and Effect 82

§ 39 (2a j Bona Fides of Subscription 83

§ 39 (2b) Form and Sufficiency 83

§ 39 (2c) Nature and Efifect of Obligation 84

§ 39 (2d) Rescission of Subscription 84

§ 39 (3) Oversubscription and Overissue 84

§ 39 (4) Stock Certificates 85

§ 39 (5) Payment 86

§ 39 (5a) Medium 86

§ 39 (5b) Time 87

§39 (5c) Assessments or Calls for Payment 88

§ 39 (5d) What Constitutes Payment 88

§ 39 (5e) Presuni])tii)n and Proof of Payment 89

§ 39 (6) Stock Mortgages and F)onds 89

§ 39 (7) Liability for and Collection of Unpaid Balances 91

§ 39 (7a) In General 91

§ 39 (7b) Persons Liable 92

§ 39 (7ba) State 92

§ 39 (7bb) Married Women 92

§ 39 (7bc) Trustees 92

§ 39 (7bd) Assignor or Transferrer 92

§ 39 (7be) Assignee or Transferee 93



VI I r



TABLE OF CONTKNTS.



§ ;^9 (7c) Facts Relieving from Liability.



§ 39
§ 39
§ 39
§ 39
§ 39
§ 39
§ 39
§ 39
§ 39
§ 39
§ 39

§ 39
§ 39



(Tea) Banks Having No Legal Existence

(7cb) Irregularity of Organization

(7cc) Irregularities in Subscription

(7cd) Fraud and Misrepresentation

(7ce) Agreements Relieving against Liability

(7cf) Payment, Release or Discharge

(7cg) Redemption of Share of Bank's Bills

(7ch) Reduction of Capital Stock

(7ci) Part of Shares Assessed

(7cj) Estoppel of Director Who Became Creditor..
(7ck) Collusion between Bank and Judgment Cred-
itors

(7cl) Purchase of Shares by Bank

(7cm) Illegal Transaction of Business

§ 39 (7d) Ascertainment of Balances Due and Adjustment of

Liabilities

§ 39 (7e) Operation of Assignment for Benefit of Creditors....

§ 39 (7f) Enforcement

§ 39 (7fa) Levy of Assessment and Sale of Stock

§ 39 (7fb) Nature and Form of Action

§ 39 (7fc) Jurisdiction

§ 39 (7fd) Limitations and Time to Sue

§ 39 (7fe) Appearance and Process

§ 39 (7ff) Parties

§ 39 (7flFa) Parties Plaintiff

§ 39 (7ffb) Parties Defendant

§ 39 (7fg) Pleading

§ 39 (7fh) Set-Off

§ 39 (7fi) Evidence

§ 39 (7fj) Findings and Judgment

§ 40. Transfer of Stock

§ 40 (1) Assignability

§ 40 (2) Persons Who May .\cquire or Sell

§ 40 (2a) In General

§ 40 (2b) Directors of Bank

§ 40 (2c) Bank Itself

§ 40 (2d) Bank Purchasing Stock in Other Bank

§ 40 (3) Validity, Manner and Sufficiency

§ 40 (3a) Fraud or Misrepresentation

§ 40 (3aa) Effect

§ 40 (3ab) Rescission

§ 40 (3b) Authority from Holder or Power of Attorney

§ 40 (3c) Form and Sufficiency

§ 40 (3ca) In General

§ 40 (3cb) Certificate Containing Blank Form of .Assign-
ment

§ 40 (3cc) Compliance with Formalities and Rules

§ 40 (3cca) In General

§40 (3ccb) Right to Establish and Enforce

§ 40 (3ccba) In General

§ 40 (3ccbb) Particular Rules and Formali-
ties



93
93
94
94
94
95
96
96
96
96
96

97
97
97

97
97
98
98
99
100
100
100
100
100
101
101
101
102
102
102
102
103
103
103
103
104
104
104
104
105
105
106
100

107
108
108
108
108

108



TABLE OF CONTENTS. IX

§ 40 (Sccbba) Consent of Directors.... lOS
§ 40 (Sccbbb) Production and Cancella-
tion of Old Certificates. 108
§ 40 (3ccbbc) Entry on Bank's Books'. 109
§ 40 (3ccc) Waiver of Compliance with By-Laws.. 112

§ 40 (3cd) Issue of New Stock Certificate 112

§ 40 (3d) Pledge or Collateral Security 112

§ 40 (3e) Gifts 114

§ 40 (3f) Usurious Transfers 114

S 40 (4) Operation and Effect 114

§ 40 (4a) In General 114

§ 40 (4b) Rights and Liabilities of Transferree 115

§ 40 (4c) Title, Rights and Liabilities of Transferree 115

§ 40 (4ca) In General 115

§ 40 (4cb) Liability for Unpaid Balances and Assess-
ment 115

§ 40 (4cba) In Absence of Contract 115

§ 40 (4cbb) Assumption by Purchaser 110

>; 40 (5) Refusal of Bank to Allow Transfer 117

§ 40 (5a) Right to and Liability for Wrongful Refusal 117

§ 40 (5b) Compelling Transfer and Action for Damages 118

§ 40 (5ba) Jurisdiction and Form of Action 118

§ 40 (5bb) Limitations 119

§ 40 (5bc) Process 119

§ 40 (5bd) Parties 119

§ 40 (5be) Evidence 120

§ 40 (5bf) Variance 120

§ 40 (5bg) Judgment 120

§ 40 (0) Restraining Transfer of Stock 121

§ 40K'. Liability of Stock for Debts of Stockholders 121

§ 40^ (1) In General 121

§ 40^ (2) Attachment, Execution, Judicial and Ta.x Sales 121

§ 41. Profits and Dividends 122

§ 41 (1) Power and Discretion of Directors 122

§ 41 (la) In General 122

§ 41 (lb) Insolvent Banks 123

§ 41 (Ic) Tax Dividends 123

§ 41 (2) Accumulation of Surplus Fund 123

§ 41 (3) Payment of Dividends 124

§ 41 (3a) Duty to Pay 124

§ 41 (3b) To Whom Payable 124

§ 41 (3c) Medium 125

§ 41 (3d) Application to Debt of Stockholders 125

§ 41 (3e) Interest 125

§ 41 (4) .Action to Recover or to ]{njoin Misapplication 125

§ 42. Lien of Bank on Stock and Dividends 12G

§ 42 (1) Creation and I'"xistence 126

S 42 (la) -At Common Law 126

§42 (ibj rndiT Charter or Statute 12()

§ 42 ( ] ba ) In General 120

§42 (111!)) krtroactive Effect of Statutes 127

§42 (llic) Ufscrvation by a By-Law 127

§ 42 (Ibd) Contract or Stipulation in Ccrtilicate 128



X TABLE OF CONTENTS.

§ 43 Uc) Stock on Its Face Transferable 129

§ 42 (Id) Stock Held in Trust 129

§ 42 (le) Shares Pledged to the Bank 130

§ 42 (If) Bank Prohibited from Dealing in Its Own Stock 130

§ 42 (Ig) Death of Stockholder 130

§ 42 (2) Nature, Operation and Effect 131

§ 42 (2a) In General 131

§ 42 (2b) As Extending to Dividends 131

§ 42 (2c) Debts Secured 13A

§ 42 (2d) Priorities and Rights against Persons Dealing with

Stockholders 133

§ 42 (2da) General Rule as to Notice of Lien 133

§ 42 (2db) Assignee and Purchasers 134

§ 42 (2dba) In General 134

§ 42 (2dbb) Indebtedness Incurred before Notice

of Transfer 134

§ 42 (2dbc) Debts Contracted after Notice of As-
signment 135

§ 42 (,2dbd) Loan to Stockholder Larger than Au-
thorized 135

§ 42 (2(lbe) Certificate for Repayment of Concelled

Stock 136

§ 42 (2dc) Pledges 136

§ 42 (2dd) Creditors and Purchasers at Execution of

Sheriff's Sale 137

§42 (2de) Right to Refuse Transfer 138

§ 42 (3) Discharge, Estoppel, Forfeiture, Release or Waiver 140

§ 42 (3a) Waiver or Discharge 140

§ 42 (3aa) Authority 140

§ 42 (3ab) What Constitutes 141

§ 42 (3b) Estoppel 142

§ 42 (3c) Forfeiture 14.'!

§ 42 (4) Enforcement and Settlement 143

§ 42 (4a) Manner 143

§ 42 (4b) Form of Action 144

§ 42 (4c) Jurisdiction 144

§ 42 (4d) Process 144

§ 42 (4e) Limitations 144

§ 42 (4f) Pleading 144

§ 42 (4g) Redemption ' 144

§ 421/4. Voting Power of Stock 145



CHAPTER IV.

C. Stockholders.

§ 42^. Persons Who May Be Stockholders 151

§ 43. Rights and Liabilities as to Bank 152

§ 43 (1) Right to Inspect Books 152

§ 43 (2) Ownership of Capital Stock 153

§ 43 (2a) General Rule .^.....^. Ib^

§ 43 (2b) Trust Fund for Benefit of Creditors 154

§ 43 (2ba) In General 154



TABLK OF CONTEXTS. XI

§ 43 (2bb) Priority of Bank Bills 154

§ 43 (2bc) Following Capital Stock as Trust Fund alter

Distribution 154

§ 43 (2c) Payment to Enable Bank to Resume Business 157

§ 43 (3) Power to Bind Corporation 157

§ 43 (4) Dealings with Bank ' 157

§ 43 (4a) As Principle or Surety on Note 157

§ 43 (4b) Sale of Stock to Bank I57

§ 44. Constitutional and Statutory Provisions I57

§ 44>4. Shareholders' Meetings I57

§ 45. Suing or Defending on Behalf of Bank I57

§ 45 (1) Failure or Refusal of Bank to Sue 157

§45 (2) Enjoining Illegal Acts and Practices 159

§ 45 (3) Recovery for Fraudulent or Illegal Acts or Practices 159

§ 45 (4) Quo Warranto and Proceedings in Nature Thereof 159

§45 (4a) Testing Legality of Incorporation I59

§ 45 (4b) Testing Validity of Election of Officers 160

§ 46. Liability for Debts and Acts of Bank 160

§ 47. Xature and Extent 160

§ 47 (1) In General I60

§ 47 (1^) Stockholders' Agreements I61

§ 47 (2) Charter and Statutory Provisions 161

§ 47 (2a) Special Charter Provisions 161

§ 47 (2b) Constitutional and Statutory Provisions 161

§ 47 (2ba) Constitutionality Generally 161

§ 47 (2bb) Applicability and Rules of Construction 162

§ 47 (2bc) Retroactive Efifect 162

§ 47 (2bd) Exterritorial Operation 162

§ 47 (2be0 Repeal 162

§ 47 (3) Contractual 163

§ 47 (4) Primary and Secondary Liability 163

§ 47 (5) Joint or Several 164

§ 47 (6) As Principle or Surety 164

§ 47 (7) Banks to Which Applicable 165

§ 47 (7a) What Constitutes a Bank 165

§ 47 (7b) Specially Chartered Banks 165

§ 47 (7ba) In General 165

§ 47 (7bb) Change of Name under General Law 165

§ 47 (7c) Banks of Issue Vel .\..n 166

§47 (7d) Pre-Existing and Future Banks 166

§ 47 (7e) Illegally or Irregularly Organized Banks 168

§ 47 (7f) Reorganized Banks 169

§ 47 (7g) State Banks 1 60

§ 47 (7h) National Banks 170

§ 47 (8) Stockholders Who .\re Liable 170

§ 47 (8a) Stockholders Defined 170

§47 (8b) Subscribers and Stockholder^ of Record 170

§ 47 (Sba) General Uul,- 170

§ 47 (8bb) Rcfjuisites and Sufficiency of Sul)>cri])lion or

Acquisition of Shares 170

§ 47 (8c) Agent or Broker I73

§ 47 f 8d) Pledgee .' 173

§47 (8e) I\ei)re-.entati\ es and 'rru>lfi's 173



XII TA]!LE OF CONTENTS.

§ 47 (Sf) Beneficiaries of Stock Held in Trust 174

§ 47 (8g) State 1^4

§ 47 (8h) Corporations and Other Banks 174

§ 47 (9) Creditors and Indebtedness Secured 174

§ 47 (9a) Retroactive Effect of Statutes 174

§ 47 (9b) Creditors Entitled to Enforce 175

§ 47 (9ba) General Creditors ■ 175

§ 47 (9bb) Bill Holder 176

§ 47 (9bc) Indorsers 176

§ 47 (9c) Indebtedness Secured 176

§ 47 (9ca) When Payable 176

§ 47 (9cb) Debts Due or Owing from Stockholder 176

§ 47 (9cc) Debts Incurred Prior to Purchase of Stock.... 177

§ 47 (9cd) Debts Contracted after Death of Stockholder. 177

§ 47 (9ce) Ultra Vires Undertakings 177

§ 47 (9cea) In General 177

§ 47 (9ceb) Establishment of Branch Bank 177

§ 47 (9cec) Agreements for Liquidation 177

§ 47 (9cf ) Particular Obligations 177

§ 47 (9cfa) Bank Bills or Notes 177

§ 47 (9cfb) Deposits 178

§47 (9cfc) Judgments against Bank 178

§ 47 (9cfd) Fees and Costs of Creditor's Suit.... 178

§ 47 (9cfe) Costs of Receivership 179

§ 47 (9cff) Loss. Occasioned by Receiver 179

§ 47 (9cfg) Agreements for Liquidation of Bank.. 179

§ 47 (10) When Liability Arises and Conditions Precedent 179

§ 47 (10a) When Liability Arises 179

§ 47 (lOaa) In General 179

§ 47 (lOab) Bank Bills and Notes 180

§ 47 (lOac) Public Funds 180

§ 47 (10b) Demand of Payment and Protest 180

§ 47 (10c) Proceedings against ]5ank and Receivership 181

§ 47 (lOca) Necessity anti Sufficiency Generally 181

§ 47 (lOcb) Filing Claim with Receiver 181

§ 47 (lOcc) Judicial Determination of Insolvency 181

§ 47 (lOcd) Judicial Ascertainment of Indebtedness and

Exhaustion of Assets 182

§ 47 (lOcda) In General 182

§47 (lOcdb) Exhaustion of Assets 182

§ 47*(l0cdc) In New York 183

§ 47 (lOce) Judgment against Bank, Execution and Re-'

turn 183

§ 47 (lOd) Dissolution of Corporation 184

§47 (lOe) Exhaustion of Other Remedies 185

§ 47 (lOf) Order of Court Directing Receiver to Enforce 185

§ 47 (11) Facts Relieving from Liability or Defenses 185

§47 (11a) Illegality or Irregularities in Organization 385

§ 47 (llaa) In General 185

§47 (llab) Denial of Corporate Existence 186

§ 47 (lib) Invalidity and Irregularity in Issue of Stock 186

§ 47 (lie) Irregularities in Methods of Business 186

§ 47 (lid) Insolvency of Other Stockholders 187



TAl'.LE OF CONTEXTS. XIII

§ -IT (lie) Payment, Satisfaction and Discharge 1S7

§ 47 (Ilea) Payment by Stockholder and Agreements in

Respect Thereto 187

§ 47 (lleaa) Payment to Other Creditors 187

§ 47 Clleaaa) Payment before Suit 187

§ 47 (lleaab) Payment after Suit Commenced. 187

§ 47 (lleaac) Payment in Other Suits 187

§ 47 (lleab) Redemption of Bank's Bills and Notes

by Stockholder 187

§ 47 (lleac) Agreements Providing Funds to Cover

Bank's Liabilities 187

§ 47 (Head) Dividends Paid from Bank's Assets.. 188

§ 47 (lleb) Prior Recovery or Payment of Judgment 188

§ 47 (llec) Confession -of Judgment in Favor of Another

Creditor 188

§ 47 (lied) Subsequent Proceedings by Another to En-
force Same Liability 189

§ 47 (llee) Former Judgment against the Bank 189

§ 47 (llf) Bill Holders Entitled to Priority as to Suing Cred-
itors 189

§ 47 (llg) Release by Bank 189

§ 47 (llga) In General 189

§47 (llgb) Resolution of Board of Directors 189

§ 47 (llh) Assignment of Sufficient Assets for Payment 190

§ 47 (Hi) Reorganization of Bank 190

§ 47 (llj) Dissolution, Expiration and Forfeiture of Charter.. 190

§ 47 (Ilk) Discharge in Bankruptcy 190

§ 47 (111) Possession of Unreported Assets by Receiver 191

§ 47 (11m) Waiver and Estoppel 191

§ 47 (12j Measure or Amount of Liability 191

§ 47 (12a) In General.'. 191

§ 47 (12b) Ratable Shares 192

§47 (12c) Contingencies Which Enlarge Liability 193

§ 47 (I2d) Facts and Contingencies Reducing Liability 193

§ 47 (12da) Payment of Premium for Stock 193

§ 47 (I2db) Reduction of Capital Stock 193

§ 47 (12dc) Application of Collateral Security 193

§ 47 (12e) Interest ' 193

§ 48. Effect of Transfer of Stock 194

§ 48 (1) Liability of Original Holder 194

§ 48 (la) In General 194

§ 48 (lb) Requisites and Sufficiency of Transfer 195

§48 (Iba) Persons Making Transfer 195

§ 48 (Ibaa) Subscril)ers 195

§ 48 (Ibab) Pledgees 1 '.».-.

§48 (Ibb) Persons to Whom Transfer Made 195

§ 48 (Ibc) Time of Transfer 196

§ 48 (Ibd) Consideration 197

§ 48 (Ibe) Bona Fides of Transferee and Solvency of

Bank 197

§ 48 (Ibea) In General 197

§48 (Ibeb) Intent to .Avoid Lial)ility 197

§ 48 (Ibec) Colorable Transfers 202



XIV TABLE OF CONTENTS.

§ 48 (Ibed) Gifts 203

§ 48 (ibee) Transfer of Pledged or Hypothecated

Stock 203

§ 48 (Ibf) Entry on Stock Book 203

§ 48 (Ibg) Publication of Notice of Transfer 206

§ 48 (Ibh) Record in Clerk's Oiifice 207

§ 48 (Ic) Nature and Extent of Liability 207

§ 48 (lea) In General 207

§ 48 (Icb) Existing and Subsequent Creditors 207

§ 48 (2) Transferee's Liability 208

§ 48 (2a) In General 208

§ 48 (2b) Requisites and Sufficiency of Transfer 209

§ 48 (2ba) Consent of Transferee 209

§ 48 (2bb) Solvency, of Bank at Time of Transfer 209

§ 48 (2bc) Entry on Bank's Books 209

§ 48 (2bd) Pledgee 210

§ 48 (2be) Trustee and Representatives 211

§ 48 (2c) Nature, Duration and Extent 212

§ 48 (2ca) Duration 212

§ 48 (2cb) Liability for Antecedent and Subsequent Debts. 212
§ 48 (2cc) Dividends Fraudulently Received by Trans-
ferer 212

§ 48 (2cd) Indemnifying Transferer 213

§ 48J/2. Assessment by State Official to Make Good Impairment of Cap-
ital Stock 213

§49. Actions and Proceedings to Enforce 214

§ 49 (1) Nature and Forms 214

§ 49 (la) Legislative Regulations 214

§ 49 (laa) In General 214

4 49 (lab) Retroactive Effect of Statutes 214

§ 49 (lb) Statutory Remedy Exclusive 215

§ 49 ( Iba) In General 215

§ 49 (Ibb) Ancillary Suit in Other Jurisdiction 215

§ 49 (Ic) Forms of Action 216

§ 49 (lea) Creditor's Suit and Receivership 216

§ 49 (Icb) Action at Law by Creditor 218

§ 49 (Icba) Right to Sue 218

§ 49 (Icbb) Enjoining Creditors from Prosecuting

Suit 219

§ 49 (Ice) Action at Law by Receiver of Bank 219

§ 49 (led) Action by Attorney General to Dissolve Bank. 219
§ 49 (Icda) Right to Enforce Stockholder's Liabil-
ity 219

§ 49 (Icdb) Intervention by Creditor 220

§ 49 (Ice) Superintendent of Bank Authorized to Enforce. 220

§49 (Icf) Nonresident Stockholder 220

§ 49 (2) Jurisdiction 221

§49 (2a) Existence of Legal Remedy 221

§49 (2b) Court in Which Receivership Pending 221

§ 49 (2c) Courts of Foreign Jurisdiction 222

§ 49 (2d) Loss or Divesture 222

§ 49 (3) Courts and Venue 222



TABLE OF CONTEXTS. XV

§ 49 (4) Set-Off and Counterclaim 223

§ 49 (4a) Set-Off 2215

§ 49 (4b) Counterclaim 224

§ 49 (5) Time to Sue and Limitations and Laches 224

§ 49 (5a) Time to Sue 224

§ 49 (5b) What Statutes Applicable 225

§ 49 (5c) In What Actions Available 226

§ 49 (5d) When Statutes Begins to Run 226

§ 49 (5e) Period of Limitations and Suspension of Statute.... 227

§ 49 (5f) Operation and Stay of Proceedings 228

§ 49 (5g) Laches and Lapse of Time 228

§ 49 (51/2) Process and Appearance 229

§ 49 (6) Parties 229

§ 49 (6a) Parties Plaintiff 229

§ 49 (6aa) Necessity and Proper Parties 229

§ 49 (6aaa) Suit to Enforce Liability for Debts of

Bank 229

§ 49 (6aaaa) In General 229

§ 49 (6aaa.b) Creditors 229

§ 49 (6aaac) Corporation or Bank 230

§ 49 (6aaad) Receivers 230

§ 49 (6aaae) Assignees for Benefit of Credit-
ors 231

§ 49 (6aaaf) Trustees 231

§ 49 (6aaag) Superintendent of Banks 231

§ 49 (6aaah) Comptroller of Banks 231

§ 49 (6aaai) Attorney General 231

§ 49 (6aaaj) County Treasurer 232

§ 49 (6aab) Suit for Public Moneys 232

§ 49 (6aac) Suit on Stockholder's Bond 232

§ 49 (6ab) Interest 232

§ 49 (6ac) Joinder of Parties Plaintiff 232

§49 (6aca) Receivers and Creditors 232

§ 49 (6acb) Creditors and Assignee of Claim against

Bank 233

§ 49 6ad) Bringing in Parties Plaintiff 233

§ 49 ( 6b) Parties Defendant 233

§ 49 (6ba) Proper and Necessary Parties 233

§ 49 (6baa) Creditor's Suit against Bank 233

§ 49 («bab) Actions against Stockholders by Cred-
itors 233

§ 49 (6bb) Joinder of Parties 234

§ 49 (6l)ba) Joinder of Stockholders 234

§ 49 (fibbaa) Action at Law by Creditors 234

§ 49 (6bbaaa) In General 234

§ 49 ((il)baab) Stockholders Who Trans-
ferred Stock 234

§ 49 (6l)bab) Crediturs Suits 234

§ 49 ((;l)bal)a) In General 234

§ 49 (C.bbabl)) Nonresident Stockhold-
ers 2.34

§ 49 (Obbac) Actions by Receiver 234



XVI TABLE OF CONTENTS.

§ 49 (Gbbb) Joinder of Bank, Its Trustee or As-
signee '2'.)b

§ 49 (ebbba) Actions by Creditors 235

§ 49 (ebbbb) Actions by Receivers 235

§ 49 (6bc) Bringing in Parties Defendant... 236

§ 49 (6bd) Death of Party— Revival 236

§ 49 (6be) Dismissal and Striking Ofif Parties 236

§ 49 (6^) Dismissal of Suit 236

§ 49 (7) Pleading 237

§ 49 (7a) Complaint, Declaration or Petition 237

§ 49 (7aa) Necessary Allegations 237

§ 49 (7ab) Sufficiency of Allegations 239

§ 49 (7ac) Prayer for Recovery 241

§ 49 (7ad) Amendments and Aider by Verdict 241

§ 49 (7ae) Affidavit and Amount t)f Indebtedness 241

§ 49 (7b) Cross Bill 242

§ 49 (8) Evidence 242

§ 49 (8a) Presumptions and Burden and Degree of Proof 242



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