In force Feb.[February] 27, 1841.
An ACT concerning the State Bank of Illinois.
25th section repealed.
Sec.[Section] 1. Be it enacted by the People of the State of Illinois, represented in the General Assembly, That the twenty-fifth section of an act entitled “An act to incorporate the subscribers to the Bank of the State of Illinois,” approved, February twelfth, one thousand eight hundred and thirty-five, be and the same is hereby repealed, and any forfeiture which may have accrued under the provisions of said section is hereby set aside: Provided, That when said bank shall resume specie payments for its evidences of indebtedness, if at any time after such resumption, the bank shall again suspend such payment for a longer period of time than is now allowed by its charter, then and in such case the General Assembly shall have the power to declare said charter forfeited.
Sec. 2. The said bank is hereby authorized to receive interest at the rate of seven per centum per annum, on all loans or discounts made by said bank for any period of time not exceeding six months; and for any longer period of time, the said bank is authorized to receive interest upon the same at the rate of nine per centum per annum.
Not dispose of specie.
Notes in circulation.
Shall receive money.
Per cent. on debts.
Sec. 3. The said bank is hereby authorized to issue notes of the denomination of one, two, and three dollars until the first day of January, A. D. one thousand eight hundred and forty-three, but not after that period: Provided, however, That the bank, in order to avail herself of the benefits of the foregoing provisions, shall agree to and conform with the following conditions, to wit: First. The said bank shall not directly or indirectly, during its suspension of specie payments sell, or in any manner dispose of any of its specie, or gold or silver bullion, except for the purposes of change to the amount of five dollars, or under the sum of five dollars. Second. That it will neither directly nor indirectly issue, or put in circulation during the period of its suspension of specie payments, any bank
<Page 2>bills or evidences of indebtedness by which its circulation will be increased beyond the amount of the capital stock actually paid in. Third. That it will receive upon deposite any funds belonging to the State which may be required to be so deposited, and pay the same out upon the order of the proper officer or agent of the State, in kind, and free of charge. Fourth. That it will purchase of the State six per cent. bonds at par, as follows, viz: on the first day of July next, fifty thousand dollars; on the first day of January, one thousand eight hundred and forty-two, fifty thousand dollars; on the first day of July, one thousand eight hundred and forty-two, fifty thousand dollars; and on the first day of January, one thousand eight hundred and forty-three, fifty thousand dollars; and the purchase money of such bonds shall be advanced at the abovementioned periods, by said bank, and applied exclusively to the redemption of bonds heretofore hypothecated by the Fund Commissioners, and to the payment of interest due on State indebtedness other than to said bank. Fifth. That during the time of the suspension of specie payments, by said bank, the citizens of this State, who are indebted to it on notes heretofore discounted, shall be allowed to pay their debts in instalments at the rate of ten per cent. upon each, and every renewal of the amounts now due, upon condition that such debtor shall execute new notes, with satisfactory security, and pay the aforesaid per cent, and the interest in advance according to the usages of banking.
Liability of directors.
Sec. 4. Hereafter no director of said bank, or firm with which he, or the president thereof may have been connected, shall become liable to the institution, either as principal or security for more than five thousand dollars at any one time.
Acceptance of act.
Sec. 5. Whenever said bank shall accept the provisions of this act, the president thereof shall file in the office of Secretary of State a certificate of such acceptance under the corporate seal of said bank, and from the time of filing such certificate the bank shall be entitled to the benefits of this act, and bound by all the conditions herein contained.
On state stock
To Fund commissioner.
When banks shall resume.
Sec. 6. The provisions of the second section of this act shall be applicable to the Bank of Illinois, if within sixty days from the passage of this act she shall, in the manner pointed out in the fifth section of this act, signify her acceptance thereof, and the said two banks shall also enter into bond with the Auditor of Public Accounts, for and on behalf of the State, that during their present suspension of specie payments they will not declare any dividends to private stockholders, but that the same shall be retained in such banks for the use of said private stockholders, and that they will also declare the just and proper dividends on her stock to the full amount of the same, and the portion thereof due upon the one hundred thousand dollars subscribed for under the act of March second, one thousand eight hundred and thirty-seven, shall be
<Page 3>paid over to the Treasurer of the State when the same becomes due, and the amount thereof due on account of the bank and internal improvement stock, shall be paid over to the Fund Commissioner as the same shall become due; and the said banks shall resume the payment of specie upon their evidences of indebtedness when the banks of the West and South-west shall generally resume the payment of specie for their evidences of indebtedness: Provided, That the thirty-first section of an act entitled, “An act to incorporate the subscribers to the Bank of the State of Illinois,” approved, February twelfth, one thousand eight hundred and thirty-five, be and the same is hereby suspended until said bank resumes specie payment.
Sec. 7. The said banks shall hereafter pay a bonus of one half of one per cent. per annum upon all bank stock now owned by the State, or hereafter to be owned, to the Fund Commissioner.
Approved, February 27, 1841.
Printed Document, 3 page(s),
Laws of the State of Illinois, Passed by the Twelfth General Assembly (Springfield, IL: William Walters, 1841), 40-42, GA Session 12-2,