the twenty-third, eighteen hundred and fifty-two, entitled "An act supplementary to an act to consolidate the city of New Orleans, and providing for the incorporation of the city of Lafay ette with the city of New Orleans," bonds which may be issued by the city of New Orleans, under the provisions of "An act to authorize the city of New Orleans to subscribe to the stock of the New Orleans, Jackson and Great Northern Railroad Company," approved March 15, 1854; or the bonds which may be issued by said city, under the provisions of "An act to authorize the city of New Orleans to subscribe to the stock of the New Orleans, Opelousas and Great Western Railroad Company," approved March 15, 1854, shall be entitled to receive from the auditor an equal amount of circulating notes in blank, of the denominations such as they may prefer, numbered, registered, countersigned and stamped as aforesaid. But such pub striction of, in lic stocks shall always be, or be made equal to stock of this Auditor, reState, bearing not less than six per cent. interest; and it shall taking stock. not be lawful for the auditor to take the bonds at a rate above their par value, or above their market value. Auditor, duty bonds and His duty in security. Sec. 287. The auditor shall collect, at the regular periods, the interest that shall accrue upon the bonds and stocks deposited with him as security for the circulating notes; and shall of, as regards pay over the same, on demand, to the parties from whom they the interest on were received, so long as the market price of the bonds and stocks. stocks does not fall below the rate at which they were taken by him. In the event of such a depreciation, the auditor is author- case of the deized and directed to retain the interest until the securities shall preciation of recover their full value as stated in their receipt on deposit, or until such further deposit shall be made as will fully make good the amount for which the circulating notes were issued. And the auditor is further empowered, in case of such depreciation in the securities deposited, to require from the banker or banking company either an additional deposit of bonds, to make up fully the original security for the notes issued, or the return and surrender, by the parties depositing, of so much of the circulation received from the auditor as will make good the deficiency of security produced by such a fall in the market value of the deposited securities; and on the failure of any banker or banking company to comply with such demand within twenty days when to Instiafter it shall be made, all the privileges acquired under this act tute proceedshall be forfeited; and the auditor shall inmediately take the banking comproper steps to cause the affairs of the defaulting banker or panies. banking company to be liquidated, as provided in cases of insolvency. ings against District Court. But the banker or banking company shall have the right to appeal from the decision of the auditor, within ten days, to the district court of the place where the banking company or Appeal to the banker have their domicile; and the court is required to hear and determine the issue, in preference to all other cases, either To be tried by in open court, or in chambers, and the decision of the district preference. Securities to demption of circulating notes. court may be appealed from to the supreme court then in session, at such time as may be fixed by the district court, in order to have the same as speedily disposed of by the supreme court, as the interest of the parties and the public may require; And provided, further, That during the pendency of the appeal all proceedings of the banker or banking companies as such shall be suspended. Sec. 288. All the securities deposited with the auditor shall be held exclusively for the redemption of such circulating notes be held for re- as have been issued thereupon; but he may, on application of the depositors, change and transfer them on receiving the amount of securities of equivalent value, receivable under this law, or on receiving and canceling an equivalent amount of the canceling of circulating notes for which they were pledged or deposited. He may also receive and cancel any mutilated notes, and issue in exchange other circulating notes of a corresponding amount, but the notes thus received shall be recorded and preserved as vouchers, until the annual examination of the legislative committees. Transfer and securities. Canceling of mutilated notes. Description of filed with the auditor and treasurer. Securities to be delivered to Sec. 289. Whenever the securities shall be assigned to and deposited with the auditor in the manner aforesaid, a full dethe securities scription of the same, signed by the auditor and the parties asdeposited to be signing and depositing the same, shall be filed and recorded in the office of the auditor, and also in the office of the treasurer of the State; and every change, transfer or substitution of the same shall be described, filed and recorded in the same manner. The securities shall be delivered to the treasurer for safe keepthe treasurer. ing, on his receipt to the auditor for the same; and any delivery of the same to the auditor, for any of the purposes of this act, shall be made on a written order of the auditor, specifying the purposes for which they are required; which order shall be filed and recorded in the treasurer's office with the auditor's receipt for the securities, or any portion of them delivered to him. A report from the auditor of every sale and disposition of the securities shall also be filed in the office of the treasurer. Redelivery of securities. ditor counter Sec. 290. It shall not be lawful for the auditor to countersign Penalty for au- bills for any banker or banking company, to an amount in the signing bills aggregate beyond the amount of stocks or bonds deposited, at their rate of value estimated under this law. A violation of this provision shall subject the auditor, on conviction, to a fine of five thousand dollars, and imprisonment for ten years at hard beyond the amount of stocks depos ited. be kept by the labor. D. Sec. 874. Sec. 291. The plate, dies and materials procured by the auPlates, etc., to ditor for the engraving and printing of the circulating notes, auditor. shall remain in the custody and under the direction of the audiExpenses of tor. The necessary expenses incident to procuring the plates, etc., to be paid dies and materials, the printing, numbering, countersigning and by the banks. registering of the same, shall be paid by the respective bankers engraving, and banking companies for whose use they were incurred, before the notes shall be delivered by the auditor. He is further authorized to charge and receive from every banker and banking company such rate per cent. as may be sufficient to defray his or their equitable proportion of the general expenses incident to the execution of this act. Sec. 292. Bankers and banking companies, receiving such circulating notes from the auditor, are authorized to execute and Form of the sign them in such manner as to make them obligatory in law as notes of corcirculating promissory notes, payable to bearer on demand, and without in- porations. terest, at the place of business of the banker or banking companies, and not elsewhere, except as otherwise provided by this act; and may circulate and use the same as money, according to the general course of banking business as defined in this act and regulated by the laws and usages of the State. All circulating notes shall be signed by the banker and his cashier, or by the president and cashier of the banking company issuing them, and by no other person whatever for them; Provided, That no individual, firm or corporation, except the legally chartered banks Penalty for now existing, shall issue and circulate as money, any note, ex-thorized issu cept such as are authorized by this act, under a penalty of one circulating the thousand dollars, to be recovered with costs of suit, one-half of such penalty for the use of any person who shall sue for the same to a final judgment. persons not au ing notes and same as money. specie on de Sec. 293. In case the maker of any note, countersigned, registered and issued, as aforesaid, shall at any time within the Proceedings on usual hours of business, at the place where the same is made failure to pay payable or redeemable, refuse to pay or redeem the same on de- mand. mand, in lawful money of the United States, the owner of such note may cause it, or so many of such notes as he may present and demand payment of, to be protested for non-payment; and the auditor, on receiving and filing such protested notes, shall forthwith give notice to the makers of the notes to pay the same, and all costs, and if they shall omit to do so for three days after the service of the notice, the auditor shall thereupon give public notice, through the official journal of the State and one other daily newspaper in the city of New Orleans, and if Auditor to give the official journal be not published in the city of New Orleans, in at least two daily journals published in the city of New Orleans, and also in the newspaper published in the place of business of the makers of such notes, if out of the city of New Orleans, if there be one published there, that all the circulating notes, issued by the makers of the notes, will be redeemed by him, out of the trust funds deposited in his hands. public notice. Sec. 294. Whenever a notice of protest for non-payment of any note, as described in the preceding section, shall be lodged Mode of proin the district court, verified by the affidavit of the creditor that ceeding to put. the amount is still due and unpaid, it shall be the duty of the liquidation judge of said court forthwith to order notice of the same to be served upon the attorney general of the State; and it shall be after protest.. All transfers after protest. prohibited Notes protest the duty of the attorney general receiving said notice, immediately to ascertain whether there be any legal or equitable defense to the payment of said note; and if, in his opinion, there be no such defense, he shall forthwith apply to said court, by petition, for a writ of sequestration against all the property and assets of the bank whose note has been protested as aforesaid, and for judgment of forfeiture, upon filing said petition, such sequestration shall issue; and it shall be the duty of the court at once to appoint three liquidators, who shall give such security as the court may order. Said bank shall be allowed three days to answer said suit; the cause shall be heard in preference to all other cases, and should there be no sufficient legal or equitable defense established to the payment of said note, judg ment of forfeiture shall be entered up, and the liquidation of said bank shall proceed as hereinafter provided; and such liquidators shall receive such compensation as the court may determine, which shall not exceed a salary at the rate of two thousand five hundred dollars per annum. Act 1858, p. 200. Sec. 295. No banker or banking company shall, after the protest of his or their note, make any assignment, transfer, conVeyance or sale of his or their property or assets; every such assignment, transfer, conveyance or sale, shall be null and void, and every banker, president, director, manager and officer assisting to such assignment, transfer, conveyance or sale of such property or assets, shall be personally liable in full for all the debts of the company, and may be adjudged guilty of a misdemeanor and punished on conviction by fine and imprisonment. The protest of the notes first protested shall constitute a lien ed to be a lien. for the benefit of the creditors of the bank upon all the assets of the bank not in the hands of the auditor. C. C. 1984 (1979), 3217 (3184); D. Sec. 2898. Sec. 296. The auditor immediately on giving the public noAuditor in cer- tice of the non-payment of any protested bills or notes, shall Bell the securi- proceed to advertise for sale at public auction, in the city of ties deposited New Orleans, the stocks or bonds deposited with him by the tain cases to with Proceeds of said sale, how applied. maker or makers of the protested notes. The advertisements shall be published at least twice per week for four weeks, in two daily newspapers printed in the city of New Orleans. On the day of sale, which shall not be less than thirty days from the first advertisement, he shall cause the securities to be sold for cash under his own supervision, and shall, after deducting the expenses of such advertisement and sale, apply the proceeds to the redemption, pro rata, of all the notes in circulation, whether protested or not, made and put into circulation by the maker or makers of such protested notes; nothing in this act shall be considered as implying any pledge or undertaking on the part of the State for any payment beyond the faithful application of the securities deposited with the auditor. auditor. Sec. 297. If the proceeds of the sale of the securities should exceed the amount required to redeem and pay the circulating Appropriation notes aforesaid in full, the auditor shall pay over such excess of sale of secuof the proceeds into the general fund of the assets of the insolvent banker or rities by the banking company; but if the proceeds of such sale should be insufficient to provide in full for the circulating notes, and he should declare a distribution, pro rata, thereupon, he shall forthwith furnish to the commissioners or liquidators of the insolvent, a certificate in writing of the amount of the deficiency, which certificate shall be legal notice to them to reserve out of Manner of any assets of such insolvent, which may be in or come into their making up dehands, an amount sufficient to provide for such deficiency; and the proceeds of he shall further furnish to every holder of any note or notes ficient to pay the circulating presented to him for redemption, and redeemed in part, a certif- notes. icate of the amount unpaid on such notes, and such certificate shall entitle the holder to payment of the amount therein designated in full out the assets of the insolvents herein directed to be reserved, if the assets should be sufficient to pay all of the notes in full; or ratably if they should not be sufficient, in preference to any other claims and debts whatever, except the costs of liquidation. ficiency when sale are insuf ers. And should the proceeds of the sale of the securities be insufficient to redeem all the notes put in circulation by any cor- Responsibility poration established by this act, then the stockholders of the of stockholdcorporation shall be liable for the full amount of all unredeemed notes in the ratio of the stock which each one may own. Sec. 298. The holder of any circulating note which may have been protested for non-payment, shall be entitled to dam- Damages due ages at the rate of twelve per cent. per annum, in lieu of inter- tested paper. est, until final payment, payable out of the general fund of the insolvent party. D. Sec. 1886. holders of pro est chargeable Sec. 299. Bankers and banking companies, doing business under this act, shall be entitled to charge and receive discount Rates of Interat a rate not greater than the maximum allowed by law on con- by corporaventional obligations; and their other contracts shall be regulated by the laws in regard to interest upon contracts between individuals. C. C. 1936 (1930), 2924 (2895); D. Sec. 316, 1887. tions. specie, specie discounted paper, banks have on hand. Sec. 300. Every banker or banking company, doing business under this act, is required, in addition to securities for circula- Amount of tion deposited with the auditor, to have on hand at all times, funds, bills and in specie, an amount equal to one-third of all their other cash liabilities, and for the other two-thirds of said liabilities, an are required to equal amount in specie, specie funds, bills of exchange or discounted paper, maturing within ninety days and not renewable. Sec. 301. If at any time the specie, specie funds, and short paper held by such banker or banking company, should fall Penalty for below the proportions to cash liabilities prescribed in the pre- below the proceding section, and shall remain so for a space of ten days, it portions to banks falling |