A Bill for An Act to incorporate the Subscribers to the Bank of the State of Illinois.
|Section 1st. Be it enacted by the people of the
State of Illinois represented in the General
Assembly, That a Bank of the State of Illinois
shall be established, the Capital Stock whereof
shall be one million five hundred thousand
Dollars, to be (subscribed by Individuals and) divided
into Shares of One hundred dollars each, and
of which, One hundred thousand shall be
reserved, and may be subscribed for by the State of Illinois whenever the Legislature thereof may deem it proper to subscribe the whole or such parts thereof as the condition of the Treasury may justify.
Sec.[Section] 2. The said Capital Stock may hereafter be increased by individual subscriptions to an amount not exceeding one Million of Dollars, to be subscribed for and taken under the direction of the President and Directors of this Corporation, in the same manner as herein provided for the subscription to the original
<Page 2>Capital Stock.
Sec. 3 All persons who shall become holders of the Capital Stock of said Bank, pursuant to this Act, shall be and they are hereby constituted a body corporate, by the name of the President Directors and Company of the State Bank of Illinois; and such Corporation shall continue until the first day of January in the year one thousand eight hundred & sixty and by that name shall be competent to contract and be contracted with, sue and be sued, plead and be impleaded, answer and be answered unto, defend and be defended in all Courts and places and in all matters whatsoever.
Sec. 4 The said Corporation shall have power to carry on the buisness of Banking, by discounting Bills, Notes, and other evidences of debt, by receiving Deposites, and making all other Contracts involving the interests or uses of money, by buying or selling gold and silver bullion, foreign Coins and bills of
<Page 3>exchange, by issueing bills, Notes or other evidences of Debt; and by exercising such other incidental powers as shall be necessary to carry on all such buisness.
Sec 5 The real estate which it shall be lawful for said1 Bank to purchase, hold and convey, shall be, first—such as shall be required for its immediate accommodation in the transaction of its business, or such as shall have been mortgaged to it in good faith by way of security for loans previously contracted, or for monies due; or third, such as shall have been conveyed to it in satisfaction of debts previously contracted in the course of its dealings; or fourth, such as shall have been purchased at sales upon judgements, decrees, or mortgages obtained or made for such debts; and said Bank shall not purchase, hold, or convey real estate in any other case, or for any other purpose; and all such real estate, not absolutely necessary for the
<Page 4>convenient discharge of its business, shall be set up, at least once a year, at public Sale. And if the sum offered therefor, shall be sufficient to reimburse the principal and interest of the debt for which it was taken, by said Corporation it shall be absolutely Sold.
Sec. 6. The said Corporation shall not directly or indirectly deal or trade in buying or selling any goods, wares or merchandise, or commodities whatsoever.
Sec. 7 The said Corporation may have and use a common seal, the same alter, break, change or renew at pleasure, and may also make, ordain and establish & put in execution such bylaws, ordinances, rules and regulations as shall be necessary for the good government of the said Bank and the prudent and efficient management of its affairs. No by laws, ordinances, rules and regulations of the same, shall be in any wise contrary to the Constitution and Laws of this state, or of the United States.
Sec. 8. The principal Bank of said Corporation shall be located at Springfield and an Office of Discount & Deposite as a Branch thereof, shall be established at Vandalia and the President and Directors aforesaid may establish and discontinue such other Offices of Discount and Deposite as Branches within this state, whenever the interest of the community or Bank require it, in number not exceeding Six for the purposes of Discount and Deposite and the transaction of such other buisness as may be legally confided to them under the provisions of this Act; and to commit the management of all of the aforesaid branches under such regulations, as they shall from time to time deem prudent and necessary to adopt, to such number of persons as they shall choose.
Sec. 9 For procuring subscriptions for said Capital Stock, John Tillson jr, Robert K. McLaugh-
<Page 6>lin, Daniel Wann, A. G. S. Wight, John C. Riley, William H. Davidson, Edmund S. Kimberly, John Taylor, Samuel C. Christie, Edmund Roberts, Benjamin Godfrey, Thomas Mather, A. M. Jenkins, William Linn, W. S. Gillman, Charles Prentice, Richard J Hamilton, A. H. Buckner, Wm F. Thornton & Ed. D. Taylor are appointed commissioners to receive ^all^ subscriptions therefor, and said Commissioners or a majority of them, shall open one or more subscription Books for said stock, on such days and such places as they shall deem expedient, and shall for such purpose appoint a day, giving at least thirty days previous notice of such time and place, in one or more of the newspapers printed at the seat of Government of this state or elsewhere.
Sec. 10 The Books for subscription shall be kept open until all the original stock to be subscribed by individuals shall have
<Page 7>been taken and the sum of ten dollars on each share subscribed for, shall be paid to the said Commissioners at the time of making such subscription. Such payment shall be made in specie, Bills of the Bank of the United States, or Certificates of Deposite in any of the Deposite Banks of the United States in New York or Philadelphia, as soon as Directors shall have been chosen, and the Commissioners hereby appointed shall have been notified of their election, they shall pay over the whole amount of subscriptions severally paid to and received by them, in the same descriptions of money so by them received, into the hands of the President and Directors of the said Corporation, taking their receipts therefor, to be delivered over to the Cashier of said Corporation so soon as he shall have given Bond according to Law. ^add^
Sec. 11. The Stock, property and prudential concerns of said Corporation shall be
<Page 8>conducted by nine Directors being stockholders and Citizens of this State, but no person shall be a Director who shall not, at the time of his appointment, hold at least ten shares of the Stock of the Incorporation.
Sec. 12 The election of Directors under the Act shall be held at such time and place in the Town of Springfield as shall be directed by the said Commissioners, who or a majority of whom, are hereby appointed Inspectors of the first election, and the persons then elected as Directors, shall hold their offices until the second Teusday of June 1836 and until others are elected.
Sec. 13 The Directors for every subsequent year, shall be elected on the second Teusday of June, in every year, at such time, of the day and at such place within the Town of springfield, and under the directions of such persons as a majority of the Directors, for the time being, shall by a resolution, to be entered in their minutes
<Page 9>appoint, and shall hold their offices for one year, or until others are elected in their Stead.
Sec. 14. Each Stockholder, at the time of the election of Directors, shall be entitled to one vote on each share of stock, which he shall have held in his own name at least thirty days previous to the time of voting.
Sec. 15 All elections shall be by ballot and the nine persons who shall have the greatest number of votes, shall be the Directors; and if at any election, two or more persons have an equal number of votes for Directors, then the Directors who shall have been duly elected, shall proceed by ballot, and by plurality of votes, determine which of the said persons, so having an equal number of votes, shall be Director or Directors, so as to complete the whole number; and if any Director shall cease
<Page 10>to be a Stockholder to the amount of ten shares, his office shall be vacant, and whenever any vacancy shall happen among the Directors, from such, or any other cause such vacancy shall be filled for the remainder of the year, in which, it shall happen, by the Directors for the time being, or a majority of them.
Sec. 16 The Directors elected, as soon as may be after the election shall proceed to choose by ballot, one of their number to be their president, who shall preside in the [
...?] Board until the next annual election; and in case of his death or resignation, they
may proceed to fill the vacancy created thereby for the residue of his term. They
shall have power to appoint a cashier and all subordinate officers of the said Corporation fix their compensation, define their powers and prescribe their duties: who shall
give such bonds, and in such penal
<Page 11>sums, with such conditions and with such securities, as the Directors shall prescribe and hold their several offices during the pleasure of a majority of said Directors.
Sec. 17. That a general meeting of the Stockholders shall be held on the second Monday of June 1836, and on the second Monday of June annually thereafter, at the time and place of holding the election for Directors, and the Directors for the year immediately preceding shall present an exact and particular statement of the state, condition and affairs of said Bank and the stockholders present shall have power, to examine into all matters connected with said Bank, its pecuniary concerns and general welfare, and to adopt such measures as shall appear to them needful & proper
<Page 12>touching the management of said Corporation, and its effects, as shall not be inconsistent with the provisions of this Charter.
Sec. 18 The said corporation shall have power to receive on Deposite or borrow at such rate of interest as may be agreed upon, any sum of money not exceeding One million of Dollars and the same to loan on bond and mortgage of unincumbered real estate, within the State, but no loan on such real estate, shall be made in any case for more than one half of the appraised value thereof, for a term of time, not exceeding five years and at no higher rate of interest than ten per centum, per annum.
Sec 19 The said corporation shall not commence business until two hundred and fifty thousand dollars of the capital stock shall have been paid to said corporation, in specie; and as soon as such payment shall have been made, the said Directors shall notify the Governor of this state that they are ready to commence business, and thereupon the said Governor shall appoint some suitable person or persons to examine and count the money paid in on account of said capital stock, and then being actually in the vaults or possession of the said corporation, whose duty it shall be, at the expense of said corporation, to make such examination, and ascertain by the oath of the President and Cashier of the said corporation, that the said capital has been bona fide paid in by the stockholders of the said corporation in payment of instalments, under the regulations of
<Page 14>this Charter, and for no other purpose whatever; and that it has actually been received as part of said Capital stock, and thereupon such person or persons so appointed by the Governor, shall forthwith make due return of such examination and the facts connected therewith to the Governor, and when the return shall be made to him as aforesaid, that the said sum of two hundred and fifty thousand dollars of the capital stock of the said Corporation has been paid in and actually exists in the vaults or possession of said Corporation, he shall cause proclamation to be made of the same, which shall be published at the expense of the said Corporation, in at least four of the newspapers printed in this State, and on the first publication of such proclamations it shall be lawful for the said Corporation to commence business, and not before.
Sec 20. The Directors shall have power to require the stockholders, respectively, to make payment of all sums of money, by them subscribed and remaining unpaid, at such times and in such proportion as such Directors shall see fit, under the pain of the forfeiture of the shares upon which such payments are required, and all previous payments thereon, to the said Corporation.
Sec 21. The Directors shall give notice of every such call, by notice to be published at least once a week, for eight weeks successively, in two or more newspapers in this State, one of which shall be at the seat of Government of this state; which notice so to be published, shall be a sufficient call on such stockholders to authorize, in case of default to comply therewith, the forfeiture above provided.
Sec 22. The obligations, contracts, bills, notes and other evidences of debt, made
<Page 16>or issued by the said Corporation, shall be obligatory on the said corporation, and be assignable and negotiable in like manner as if made or issued by a private person, and those payable to bearer by deliver; and every evidence of debt, assigned by the said Corporation by endorsement thereon, shall ennable the assignee thereof to maintain an action thereupon in his ^12^ own name; but every note, bill, or evidence of debt, purporting to be a bank note, to be issued by the said Corporation, shall be deemed and taken to be payable at the banking house of the2 said Corporation, unless otherwise specified on its face.
| Sec 23. It shall be lawful for the
said Corporation, and they are hereby
authorized to demand and receive
for all sums of money loaned by
them, the following rates of interest,
to wit: On loans for sixty days or under,
|at the rate of six per cent per annum;
(on loan for four months or under, at the
rate of seven per cent. per annum; on
loans over six months and under twelve,
eight per centum per annum; (on all loans
over one year and not exceeding five years,
ten per cent. per annum). ^Provided, that the interest may be taken, in advance, & in accordance with the usual practice of all Banking Institutions^
Sec 24. The said Corporation shall not issue, or have in circulation, at any time, an amount of notes or bills put in circulation as money, exceeding twice and a half its Capital stock paid in and possessed, exclusive of the sums due on deposites; nor shall its loans and discounts, at any time, exceed three times the amount of such stock, exclusive of the deposites ^as^ aforesaid; and in case of excess, the Directors under whose administration it shall have happened, shall be liable in their natural and private capacities. Any Director or Directors, who may be absent when such excess is created or contructed, or who may have
<Page 18>dissented from the Act whereby the same was created or contracted, may respectively exonerate themselves from being so liable, by entering his protest to the Same on the book of the minutes of the proceedings of the said Corporation.
Sec 25. If at any time the Corporation hereby Created, shall neglect or refuse, for ten days after demand, at the banking house, during the regular hours of business, to redeem, in specie, any evidence of debt issued by the said Corporation, the said Corporation shall discontinue and close all its operations of business, except the securing and collection3 of debts due or to become due to the said Corporation, And the Charter hereby granted shall be forfeited.
Sec 26. The said Corporation shall be liable to pay to the holders of every evidence of debt made by it, the payment of which shall have been demanded and refused
<Page 19>damages for the non-payment thereof in lieu of interest at and after the rate of ten per centum per annum, from the time of such refusal until the payment of such evidence of debt and the damages thereon.
Sec 27. The stock of the said Corporation shall be assignable and transferable according to such rules as shall be adopted, in that behalf, by the by-laws and ordinances thereof.
Sec 28. Whenever the one hundred thousand dollars reserved in this Charter to be subscribed for by the state of Illinois, of shall have been, by virtue of Law, subscribed for and the amount thereof paid in by the said state, the Governor shall nominate, and by and with the advice and consent of the Senate, appoint two Directors on the part of the State, to represent her in the said Corporation, whose rights, powers and
<Page 20>duties shall be, in all respects the same, as those of the Directors chosen by the Stockholders.
Sec. 29. It shall be the duty of the Directors of the said Corporation to make Dividends, half yearly or otherwise, of so much of the surplus profits arising from the buisness of the said Corporation, as they or a majority of them, shall deem advisable.
Sec. 30 The expenses incured by Commissioners in executing any duties required by this act, shall be paid out of the monies received by them from the subscribers out of the Capital Stock.
Sec. 31 The Legislature of this state shall never pass any law retarding, obstructing, staying, protracting or in any wise, suspending the collection of any Debt or debts due the said Bank.
Sec. 32 This Act shall be taken and received by all Courts and by all
<Page 21>Judges, majistrates and other public officers, as a public Act and shall be construed liberally for all beneficial purposes therein intended, and all printed Copies of the same, which shall be printed by or under the authority of the General Assembly, shall be admitted as good evidence thereof without any other proof whatever.
Sec. 33 All conveyances of real Estate shall be made and signed by the President of this Corporation and shall have affixed to said Conveyance the seal thereof.
Sec. 34 It shall not be lawful for this Corporation under penalty of the forfeiture of its charter to issue any Bank-bills of a less denomination than five dollars; and the power is hereby reserved to the Legislature fifteen years after the passage of this Act, should it be considered advisable, to further restrict the corporation from issuing any Bank-bills of a less denomination of
<Page 22>than ten dollars.
Passed Senate Jan 28, 1835Leod White
Handwritten Document, 22 page(s), Folder 216, SB 58, GA Session: 9-1, Illinois State Archives (Springfield, IL)