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1063

BAN K L A W S.
Assignments—
ALABAMA—Every general assignment made by a debtor, or a convey­
ance by a debtor of substantially all of his property in payment of a prior
debt, by which a preference of priority of payment is given to one or
more creditors over the remaining creditors shall be and inure to the
creditors equally. No preferences.
ARIZONA—Assignments shall provide for the distribution of all
real and personal property, not exempt among creditors in proportion to
their respective claims. Preferences are void.
ARKANSAS—Assignments can be made of any property, real, per­
sonal, or mixed, or choses in action, for the payment of debts. Prefer­
ences are allowed by all except corporations, when wages of employes
alone are preferred. No preferences after the assignment, though fraudu­
lent, are allowed to be obtained by attachments or otherwise to the exclu­
sion of other creditors (and proceedings to contest it must be within six
months), by proceedings in chancery, where, if. the assignment is declared
void, the chancery court shall distribute the assets equally among all
creditors
CALIFORNIA—An insolvent debtor may, in good faith, execute an
assignment of property to the sheriff of the county of his residence in
trust for the satisfaction of his creditors. A debtor is insolvent when he
is unable to pay his debts from his own means as they become due. A
debtor may pay one creditor in preference to another, or may give one
creditor security for the payment of his demand in preference to another;
but a preference by a debtor, to any creditor within 1 month of the filing
of a'petition in insolvency by or against such debtor is void and the
assignee may recover property transferred, or the value thereof, as assets
of such debtor.
COLORADO—Assignments must be made for the benefit of all credit­
ors. No preferences are allowed.
CONNECTICUT—Assignments in insolvencv are made to an assignee,
who becomes a trustee on approval of the court.
DELAWARE—Voluntary assignments for the benefit of creditors may
be made. No preferences are allowed.
DISTRICT OF COLUMBIA—Voluntary assignments for the benefit of
creditors may be made as at common law, except that no preferences are
allowed. All assignments for benefit of creditors must contain a list of
creditors, their places of business and the amount of their demand. (See
Act of Congress approved February 24, 1893.)

whose claim s exceed the amount of property assigned, except proceed­
ings be brought in insolvency court within six months of assignment, or
by parties proving fraud. All acts done in good faith by assignee under
such an assignment are valid, even though the same be afterward set
aside, if the assignment was. assented to in writing by a majority in num­
ber and value of creditors not having security. The assignee must, on ac­
ceptance .of the same, give notice in writing to all known creditors, of the
assignment and his acceptance thereof, and must deposit with the Clerk
of the town or city in which the debtor makes his principal place of busi­
ness a copy of the same.
MICHIGAN—Assignment for benefit of creditors must be of all the
assignor’s property not exempt from execution, and must be without
preference.
MINNESOTA—An assignment may be made of all assignor’s property,
and must be without preference. Each creditor desiring to share in the
estate assigned must prove his claim to the assignee within 20 days after
notice of the assignment. Before he can receive any dividend he must
file with the clerk of the court a release in full of all his claims against
the assignee. Assignor may by petition require all creditors residing in
the state, and all who have in any manner appeared in the cause, to show
cause why he should not be discharged from his debt. Creditors mayhave jury trial. Upon final determination by court or jury that debtor has.
complied with the law, he shall be fully discharged from his debts. This,
binds all creditors served with notice within the state and all who have
proved 4heir claims or in any way appeared in thé assignment proceeding.
MISSISSIPPI—Debtor may make assignments to secure creditors, and
may prefer creditors, but no benefit, direct or indirect, may be reserved td
the debtor.
MISSOURI—Every voluntary assignment must be for the benefit of all
the creditors of the assignor in proportion to their respective claims.
MONTANA—An insolvent debtor may make an assignment to one or
more assignees for the benefit of his creditors. A debtor is insolvent
when he is unable to pay his debts as they become due. In all assign­
ments the wages of employes for services rendered within 60 days pre­
vious to such assignment not to exceed $200 for each person, are preferred
claims. Assigneels required to give bond fixed by the court, and must
file inventory and statement of debts in the district court within whose
judicial district he is.
NEBRASKA—An assignment must include all property of assignor, and
no preferences are allowed. A debtor in failing circumstances, however,
may prefer a creditor by a separate conveyance unconnected with the
transaction of making an assignment.

FLORIDA—Assignments may be made by deed and recorded in the
clerk’s office of the county in which the property is situated. Not valid
unless in writing and providing for an equal disposition of all assignor’s
property, both real, personal or mixed, except such as is by law exempt
from levy and sale among his creditors.

NEVADA—Every insolvent debtor may be discharged from his debts
upon executing an assignment of all his property, real, personal, or
mixed, for the benefit of all his creditors, and upon compliance with the
general provisions of the Insolvent Act.

GEORGIA—Transfers or assignments of real or personal property by
insolvent debtors are fraudulent and null and void as against creditors,
where any trust or benefit ¿s reserved to the assignor or any person
for him. Every conveyance of real or personal estate by unity or other­
wise and every contract of every description had or made with intention
to delay or defraud creditors is void and such intention known to the
Party taking a bona fide transaction for a valuable consideration and
without notice or ground for reasonable suspicion shall be valid.

NEW HAMPSHIRE—Assignment must include all the debtor’s prop­
erty. except what is exempt from attachment, for the equal benefit of all
his creditors.
NEW JER SE Y —Assignments by debtors for the benefit of creditors
must be without preference, and all others are void.

IDAHO—An insolvent debtor owing debts exceeding $300, and having
been a resident of county for six months, may be discharged of his debts
by executing an assignment of all his property, real and personal. No
preferences are allowed in the assignment.
ILLINOIS—Any debtor may make an assignment for the benefit of his
creditors. No preferences are allowed.
INDIANA—Any debtor may make a general assignment of all property
in trust for the benefit of bona fide creditors. The assignor is not forbid
den to make preferences to bona fide creditors, provided the preference;
be made before the deed of assignment and in no way co-ordinate with it
The assignor is not relieved from his debts.
INDIAN TERRITORY—Assignments can be made of all the property
or a part thereof. Any creditor or creditors may be preferred.
IOWA—No geneial assignment of property by an insolvent, or in con­
templation of insolvency, for the benefit of creditors, shall be valid, un­
less it be made for the benefit of all his creditors in proportion to the
amount of their respective claims. No preference is allowed to any cred­
itor. Claims m ust'be filed within three months of first publication of
notice of assignment by the assignee.
KANSAS—Assignments can be made for the benefit of all creditors
without preference.
KENTUCKY—Voluntary assignments for the benefit of all creditors
are governed by act of March 16,1894. The county court has jurisdiction to
settle them, but not to the exclusion of the circuit court, and suit to settle
the trust in the circuit court brought on behalf of creditor or creditors
representing one-fourth of the liabilities ousts the county court of juris­
diction. Disposing of property by an insolvent debtor for the purpose of
preferring creditors operates under statute as an assignment for the
benefit of all the creditors if an action is brought claiming the same
within six months from act of preference.
LOUISIANA—An insolvent debtor may make surrender of property to
creditors, or an involuntary surrender may be forced by any creditor who
shall have issued an execution which is returned unsatisfied.
MAINE—No statute provision relating to common law assignments.
Any debtor may apply by petition to the judge for the countv within which
he resides, setting forth his inability to pay all his debts, and his willing­
ness to assign all his estate and effects, not exempt by law from attach­
ment and seizures upon execution, for the benefit of his creditors. Invol­
untary assignment may be compelled by creditors on petition to the court.
MARYLAND—Assignments may be made by deed, but should not or­
dain any preference, and should convey whole estate and provide for dis­
position of same, and cannot require release of debt. Merchants, bankers
and brokers may be declared insolvent and their affairs wound up, upon
petition of a creditor or creditors whose debt or debts amount to over $250,
in cases where the debtor has committed an act of insolvency by making
assignment to prefer or making preference in any way when insolvent, or
fraudulently stopping payment of commercial paper for twenty days.
MASSACHUSETTS—A voluntary assignment for benefit of creditors
may be made by debtor and cannot be set aside if assented to by creditors
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NEW MEXICO—An insolvent debtor may make a voluntary assignment
for the benefit of his creditors. No preferences allowed. Tne assignee is
required to settle up the estate within 12 months.
NEW YORK—Voluntary general assignments for the bénefit of credit­
ors may be made. Preferences to the extent of one-third of the assigned
estate, after deducting wages or salaries, áre allowed. Assignee must
advertise for claims and they should be proved to obtain dividend. Bal­
ance of account is not discharged.
NORTH CAROLINA—Any person has the right to make an assignment
of his property for the benefit of his creditors. No preferences allowed.
If preference is given the deed is void as to existing creditors.
NORTH DAKOTA—No assignment laws for the benefit 'Of creditors.
Voluntary and involuntary dissolvency is provided.
OHIO—An insolvent debtor may make an assignment in trust for the
benefit of creditors. An assignment made with intent to prefer one or
more creditors inures to the benefit of all creditors.
OKLAHOMA TERRITORY—Voluntary assignments, without prefer­
ence, for the benefit of creditors, may be made by debtors of all their
property (but they may except property exempted by law). Creditors may
be preferred by a chattel mortgage before assfc-nment.
OREGON—No general assignment by an insolvent, or in contemplation
of insolvency, for the benefit of creditors, is valid unless made for the
benefit of all his creditors in proportion to the amount of their respective
claims.
PENNSYLVANIA—Assignments maybe made for the benefit of all cred­
itors, but there is no provision for the discharge of the debtor. Debtor
cannot prefer any creditor by his deed except for wages of labor.
RHODE ISLAND—Common law assignments may be made for equal
benefit of creditors, but subject to provisions of United States Bankruptcy
Law.
SOUTH CAROLINA—Assignments for the benefit of creditors may be
made. No preferences are allowed, but a release may be required oi all
creditors sharing benefits of assignment.
SOUTH DAKOTA—An insolvent debtor may execute an assignment of
property for the satisfaction of his creditors; but such an assignment
cannot contain any trust or condition-by which any creditor is to receive a
preference over any other creditor. Property exempt from execution does
not pass to assignee unless instrument specially mentions same and de­
clares an intention that it shall pass thereby.
TENNESSEE—Assignments for the benefit of creditors are allowed.but
without preference.
TEXAS—Assignments of all a debtor’s estate for distribution among all
his creditors may be made. Insolvent debtors may make assignments for
benefit of such creditors only as will accept their pro rata in discharge of
all liability; provided the creditor receives as much as one-third of the
amount due him.
;
UTAH—Assignments by insolvents for the benefit of creditors are made
and administered according to statute, under the supervision of the Dis­
trict Court of the county where debtor resides, but preferences are al­
lowed. Preferences are therefore allowed, and accepting a dividend from
the assignee does not operate to discharge debt-or from further liability.

10 6 4

BAN K L A W S.
VERMONT—Assignments of all property without preference may be
made for benefit of all creditors.

FLORID A—Attachments may issue on debt actually due when defend­
ant is removing, or about to remove either himself or his property
! without the limits of the state or the judicial circuit in which he resides,
VIEGINIA—There is no insolvent law, but an insolvent debtor may I or lives, or without, the limits of the state, or is secreting or fraudulently
make a voluntary assignment for the benefit of creditors, and may prefer ! disposing of his property, or that he will fraudulently dispose of his prop­
certain creditors to others.
erty before judgment can be obtained against him, conceals himself so
as to avoid service of process or is absconding, or resides beyond the
WASHINGTON—Insolvent debtor may be discharged from debts of
limits of the State. When debt not due but will become due within nine
creditors within the state upon executing an assignment of all his prop­
months, attachments may issue whenever debtor is actually removing his
erty for benefit of his creditors, if done in good faith and without fraud.
property beyond the limits of the State, or is fraudulently disposing of
his property for the purpose of avoiding: the payment of his just debts or
WEST VIEGINIA—Assignments can be made for the benefit of credit­
demands, or is fraudulently secreting his property for such purpose.
ors without preference. Assignment to preferred creditors may be avoided
by creditor’s bill in equity, brought within a year after its date and within
GEORGIA—Attachments may issue where the debtor resides out of the
four months after its admission to record.
state-; or where he is actually removing, or is about to remove, without
the limits of the county ; or where he absconds ; or where he conceals
WISCONSIN—An assignment carries all the property, real and personal,
himself ; or where he resists legal arrest ; or where he is causing his
of the assignor, excepting his exemptions. Wages of employes for three
property to be removed beyond the limits of the state ; or where he is dis­
months are preferred by law, and for six months may be preferred by
posing of, or threatens to dispose of, or conceals his property liable to the
insolvent, All other claims pro rata, and other preferences void the
payment of his debts, or makes a fraudulent lien thereon to avoid the
assignment. Confessed judgments and mortgages accepted with knowl­
payment of his debts. Attachment may issue for any creditor when debt
edge of insolvency within 60 days before assignment are void. Any act of
Is created for purchase of property known as purchase money attach­
preference may within thirty days thereafter be set aside and receiver
ment. Debt must be due and defendant in possession of property, or has
appointed on application of two creditors to amount of $200.
sold and has not been paid for the property. Such attachments date from
levy of attachment,
WYOMING—Any debtor may make a general assignment of all his prop­
erty in trust for the benefit of his creditors. No preferences allowed, ex­
IDAHO—Attachment may issue in any action upon a judgment or upon
cept wages of employes for 3 months.
contract for the direct payment of money where the contract is not se­
cured by mortgage or lien upon real or personal property, on affidavit
against both residents and non-residents. Any creditor who shall within
sixty days after an attachment has been made, secure judgment for his
claim shall share pro rata with the attaching creditor in the proceeds of
the defendant’s property when there is not sufficient to pay all judgments
in full against him.
ILLINOIS—Attachment may issue where the debtor is a non-resident
ALABAMA—Attachments may issue when defendant resides out of the
of the state : conceals himself so that he cannot be served with process,
state, or absconds, or secretes him self so that the ordinary process of
has left the state, or is about to depart from the state with the intention of
law cannot be served on him; or is about to removeout of the state; or is
having his effects removed, or is about to remove his property from the
about to remove his property out of the state, so that plaintiff will proba­
state, or has, within two years preceding the filing of the affidavit re­
bly lose his debt or have to sue for it in another state; or is about fraudu
quired, fraudulently conveyed, or assigned his effects, or a part thereof,
lently to dispose of his property; or has fraudulently disposed of his
or has within two years prior to the filing of such affidavit, fraudulently
property; or h a s moneys, property or effects, liable to satisfy his debts
concealed or disposed of his property, or is about fraudulently to conceal,
which he fraudulently withholds.
assign, or otherwise dispose of his property, or where the debt sued for
w as fraudulently contracted on the part of the debtor; provided the
AEIZONA—Attachment may issue when the action is on the contracl
statements of the debtor, which constitute the fraud, have been reduced
express or implied for the direct payment of money, made or payable in
to writing and signed by the debtor.
territory, and no security has been given for the satisfaction of the judg­
ment to be rendered, it shall specify the character of the indebtedness,
INDIANA—Attachment may issue where the defendant is a foreign
that same is due to plaintiff, over and above all legal set-offs or counter
corporation or a non-resident ; where the defendant is secretly leaving the
claims, and that demand has been made for the amount due; or that de­
state, or has left it, with intent to defraud his creditors ; where the de­
fendant is indebted to plaintiff, stating the amount and character of the
fendant so conceals himself that summons cannot be served upon him ;
debt; that the same is due over and above all legal set-offs and counter
where he ip removing, or about to remove, his property subject to execu­
claims, and that th e defendant is a non-resident of the territory, or is a
tion. o r a material part thereof, out of the state, not leaving enough to
foreign corporation doing business therein; or that an action is pending
satisfy the plaintiff’s claim ; where he has sold or otherwise disposed of
between the parties, and that the defendant is about to remove his prop­
his property subject to execution, or suffered or permitted it to be sold
erty beyond the jurisdiction of the court to avoid the payment of the
with the fraudulent intent to cheat, hinder, or delay his creditors ; where
judgment, and that the attachment is not sought for wrongful or ma­
he is about to sell, convey, or otherwise d is u s e of his property subject to
licious purpose, and the action is not prosecuted to hinder or delay any
execution with such intent.
creditor of the defendant.
INDIAN TEERITO R Y—Attachments may be made when the action is
AEKANSAS—Attachment may issue in actions for the recovery of . against one absent from the territory for more than four months when his
money when defendant is a foreign corporation or non-resident of the
residence is in the territory ; has left his residence to avoid the service of
state, or has been absent from the state four months, or has departed
summons; is about to or has removed his property, or a material part
from the state with intent to defraud his creditors, or has left the county
thereof, out of the territory, not leaving enough therein to satisfy plain­
of his residence to avoid the service of summons, or conceals himself
tiff’s claim ; conceals himself ; has sola his property with the fraudulent
that summons cannot be served upon him, or is about to remove, or has
Intent to cheat, hinder, or delay his creditors in the collection of their
removed his property, or a material part thereof, out of the state, not leav­
debts, or is about to do so.
ing enough therein to satisfy the claims of defendant’s creditors, or has
sold, conveyed-, or otherwise disposed of his property, or suffered or per­
IOWA—Attachments may issue for debts not due when nothing but time
mitted the same to be sold, with the fraudulent intent to cheat, hinder and
is wanting to fix an absolute indebtedness, attachment bond required in
delay his creditors, or is about to sell, convey, or otherwise dispose of
double value of property sought to be attached or three times the amount
his property with such intent. But attachments will not be granted
sued for and in no case less than $250 in District Court or $50 in Justice
against a defendant on the ground that he is a non-resident, except in
Court. Attachments may issue when the defendant is a foreign corpor­
actions arising upon contract.
ation, or acting as such, or is a non-resident of the state; or is about to re­
move his property out of the state without leaving sufficient remaining
CALIFORNIA—An attachment may issue in an action upon a contract,
for the payment of his debts ; or has or is about to dispose of his prop­
express or implied, for the direct payment of money, where the contract
erty, in whole or in part, with intent to defraud his creditors; or has ab­
is made, or is payable in this state, and is not secured by any mortgage or
sconded, so that the ordinary process cannot be served upon him ; or is
lien upon real or personal property, or any pledge of personal property;
about to remove permanently out of the county and has property therein
or, if originally so secured, such security has, without act of the plaintiff
not exempt from execution, and that he refuses to pay or secure the
or the person to whom the security w as given, becomes valueless in an
plaintiff ; or is about to remove permanently out of the state, and refuses
action upon a contract, expressed or implied, against a defendant not re­
to pay or secure the debt due the plaintiff ; or is about to remove his prop­
siding in this state.
erty, or a part thereof, out of the county with intent to defraud his cred­
itors ; or Is about to convert his property, or a part thereof, into money
COLORADO—Suit may b® brought by attachment where the defendant
for the purpose of placing it beyond the reach of his creditors ; or has
is a non-resident of this state, and in certain other cases, and upon debts
property or rights in action which he conceals ; or the debt was incurred
not yet due where fraud on the part of the defendant is alleged and proven;
for property obtained under false pretenses.
but the plaintiff must give bond in double the amount claimed for all dam­
ages in case the suit w as improvidently commenced.
KANSAS—An attachment will be issued when the defendant is a foreign
corporation or a non-resident of the state (but in this case for no other
CONNECTICUT—Attachments are by mesne or foreign process. They
Claim than a demand arising upon contract, judgment or decree, unless
are made upon the personal or real propertyof the defendant, or upon his
the cause of action arose wholly within the limits of this state); where
body if the cause of action permits it. W ages to the extent of $50 are
the defendant has absconded with the intent of defrauding his creditors ;
exempt from attachment. Wages may be garnisheed for a board bill.
where the defendant has left the county of his residence to avoid the
service of summons ; or so conceals himself that a summons cannot be
“ DELAWARE—A writ of domestic attachment may issue against an in­
served upon him; or is about to remove his property, or a part thereof,
habitant of this state when the defendant cannot be found and proof sat­
out of the jurisdiction of the court, with intent to defraud his creditors;
isfactory to the court of the cause of action, or upon affidavit made by the
or is about to convert his property, or a part thereof, into- money for th e
plaintiff or some other credible person and filed wTith the prothonotary,
purpose of placing it beyond the reach of his creditors; or has property or
that the defendant is justly indebted to the plaintiff in a sum exceeding
rights in action which he conceals; or has assigned, removed or disposed
fifty dollars, and has absconded from the place of his usual abode or gone
of, or is about to dispose of his property or a part thereof, with intent to
out of the state intent to defraud his creditors or to elude process, as it is
defraud his creditors; or fraudulently contracted or incurred the debt, li­
believed. A writ of foreign attachment may issue against any person not
ability or obligation; or when the debtor has failed to pay the price or
an inhabitant of this state after the return of a summons or capias issued or
value of any article or thing delivered, which by contract he w as bound to
delivered to the sheriff or coroner ten days before the return thereof, and
pay upon delivery.
showing that the defendant cannot be found and proof satisfactory to the
court of the cause of action; or upon affidavit made by the plaintiff or
KENTUCKY—Grounds of attachments being a non-residence of de­
some other credible person and filed with the prothonotary that the de­
fendant or foreign corporation: or has been absent from the state four
fendant resides out of the state, and is justly indebted to the said plaintiff
months; or has departed this state with intent to defraud creditors ; or has
in a sum exceeding fifty dollars.
left the county of his residence to avoid service of summons, or conceals
himself to avoid service of summons; or is about to remove or has re­
DISTRICT OP- COLUMBIA—Writs of attachment are issued when de­
moved his property or a m aterial part thereof out of this state, not leaving
fendant is a non-resident of the District; or, evades the service of ordi­
enough to satisfy plaintiff’s claim; or has sold or disposed of his property
nary process by Concealing himself or withdrawing from the District
with intent to defraud, hinder or delay creditors; or is about to sell,
temporarily; or, that he has removed, or is about to remove some of his
convey or otherwise dispose of his property with such intent or that de­
property from the District, so as to defeat just demand against him, or has
fendant has not property subject to execution sufficient to pay plaintiff’s
assigned, disposed of, or secreted, or is about to assign, dispose of, or
demand, and the collection of the demand will be endangered by the delay
secrete property with intent to defraud his creditors. Writs of attach­
of obtaining judgment or a return of “ No property found.”
ment are issued by the clerk of the Supreme Court of the District upon
the grounds mentioned above upon the filing of an affidavit by the plaint­
LOUISIANA—Attachment issues whenever the debtor resides out of
iff, his agent or attorney supported by the testimony of one or more
the state; has. or Î3 about permanently to leave it; conceals himself in or­
witnesses.
der to avoid service of citation; when he has mortgaged, assigned or dis-

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lO üö

BAN K LA W S.
posed of, or is about to mortgage, assign or dispose of, his property, rights
or credits, or some part thereof, with intent to def aud his creditors, or
gives an undue preference to some of them: when he has converted, or is
about to convert his property in money or evidences of debt, with intent
to place his property beyond the reach of his creditors. Whenever the
debtor is about to remove his property out of the state before the debt
becomes due. non-resident creditors are entitled to the writ to enforce
their claim s the same as resident creditors.
' MAINE—Attachments of real or personal property of defendant may be
made upon direction of the plaintiff. No bond or other formality re­
quired.
MARYLAND—Attachments may be issued on judgment in twelve years
from date of same by way of execution, and are liens from time of service.
’They are also issued where the defendant is a non-resident or where he
absconds; or by giving bond where debtor is about to abscond, or assign
his property or remove the same to defraud, or where debt is fraudulently
contracted and in last named cases where bond is given, attachment may
be had on debts not yet due and for unliquidated damages in certain cases.
MASSACHUSETTS—All real estate, goods, and chatties liable to be
taken on execution may be attached upon the original writ and held to
satisfy the judgment which may be obtained; but no attachment shall be
made if real estate on a writ returnable before a trial j ustice.municipal, dis­
trict, or police court, unless the debt or damages demanded exceed twenty
dollars. No preliminary bond is required. Perishable property,or that which
can only be kept at great and disproportionate expense.may be sold after it
is attached and the proceeds held subject to the attachment. Railroad cars
and engines and steamboats in regular use cannot be attached within for­
ty-eight hours previous to their time of departure, unless the officers have
made a demand for other property in order to attach it, and such demand
has been refused or compliance therewith neglected. Attachment may
be made while the suit is pending by special order of court. Attachment
may be dissolved by defendant giving a bond with sufficient sureties,
either to pay the judgment that may be recovered, or to pay the value of
the property.
i MICHIGAN—Attachments may be issued where the debtor has ab­
sconded or is about to abscond from the state,, or is concealed therein, to
the injury of his creditors; where he has assigned, disposed of, or con­
cealed any of his properly, or is about to do so, with intent to defraud his
creditors; where he has removed, or is about to remove, any of his pro­
perty out of the state with the intent to defraud his creditors; where he
fraudulently contracted the debt; where he is not a resident of this state,
and has not resided therein for three months before the commencement
of suit, or where the defendant is a foreign corporation. On order of court
showing reasons by affidavit for immediate issuance of writ, attachment
m ayb e levied before debt is due.

Of the court, with the intent to defaud his creditors; where a defendant is
about to convert his property into money with intent to place it beyond
the reach of his creditors; where a defendant has assigned, removed,
disposed of, or is about to dispose of, his Droperty, or any part thereof,
with intent to defraud his creditors; where a defendant has fraudulently
or criminally contracted the debt or incurred the obligation for which
suit has been commenced.
' NEW HAMPSHIRE—In most actions, any property which may betaken
upon execution may be attached and hoiden as security for the judgment
the plaintiff may recover. The property of the defendant in the hands of
a third person, and debts due the defendant, may be attached bv
trustee process, service being made upon the defendant and trustee as
in other cases. Property attached is hoiden for thirty days from the ren­
dition of judgment and the levy of the execution must be commenced
within that time. No valid attachment can be made to secure claim s not
due at the commencement of the action. Attaching creditors acquire a
lien in the order of their attachments, and do not share in the attached
property pro rata.

NEW JE R S E Y —A creditor may attach the property of a non-resident
or absconding debtor by making oath to the fact, and to the amount of his
claim. Attachments are for the benefit of all applying creditors. Debts
not due may be proved under any attachment Issued, and receive their
pro rata dividend. The attaching creditor is, however, entitled to have
his claim paid in full before the applying creditors receive anything, and
the applying creditors are paid pro rata of fund Insufficient to pay them
in full.
NEW MEXICO—Attachments issue when the debtor is not a resident of
the territory of New Mexico; when the debtor has concealed himself or
absconded or absented himself from his usual place of abode in this tertitory, so that the ordinary process of law cannot be passed upon him;
when the debtor is about to remove his property or effects out of this ter­
ritory, or has fraudulently concealed or disposed of his property or ef­
fects; when the debtor is about fraudulently to convey or assign, conceal
or dispose of his property and effects: when the debt was contracted out­
side of this territory, and the debtor has absconded or secretly removed
his property or effects into the territory; when the defendant is a corpora­
tion whose principal office Or place of business is out of the territory, un­
less such corporation shall have a designated agent in the territory, upon
whom service of process may be made in suits against the corporation.

NEW YORK—An attachment will be granted when it is proven that the
defendant is either a foreign corporation or not a resident of the state; or
if a natural person and a resident of the state, that he has departed there­
from with intent to defraud his creditors, or to avoid the service of a
summons, or keeps himself concealed with like intent; or if the defendant
is a natural person or a domestic corporation, that he or it has removed,
or is about to remove, property from the state with intent to defraud his
MINNESOTA—Attachment issues when the defendant’s debt was fraud
or its creditors; or has assigned, disposed of, or secreted, or is about to
ulently contracted; or when the defendant is a foreign corporation, or a
assign, dispose of or secrete his property with like intent; or where for
non-resident of the state; or has departed therefrom, as deponent be­
the purpose of procuring credit or the extension of credit, the defendant
lieves, w ith intent to defraud his creditors, or to avoid the service of a
has made a false statement in writing signed by himself or an authorized
summons, or keeps himself concealed with like intent; or has disposed
agent with his knowledge and acquiescence, as to his financial responsi­
o r is about to dispose of, his property with intent to defraud creditors.
bility. In the city court of New York an attachment can be issued against
a non-resident of the city or a domestic corporation whose principal
MISSISSIPPI—Attachment may issue where defendant is a foreign cor- . place of business as named in the charter is not in such city. F irst attach­
poration or non-resident of the state; o r he has removed, or is about to
ment in hands of sheriff has priority,
remove, himself or property out of the state; or absconds or conceals him­
self so that he cannot be served with summons; or contracted the debt
NORTH CAROLINA—Attachments .may be granted for breach of con­
o r incurred the obligation in conducting the business of a ship, steamboat
tract, express or implied; wrongful conversion of personal property; any
o r other craft in some of the navigable w aters.of this state; or has prop­
other injury to real or personal property, in consequence of negligence,
erty or rights which he conceals and refuses to apply to the payment of
fraud or other wrongful act. That the defendant is either a foreign cor­
his debts; or is about to assign or dispose of his property; or has, or is
poration. a non-resident of the state, or if he is a natural person and a
about to convert his property into money or evidences of debt with intent
resident of the state, that he has departed therefrom, with intent to de­
to place it beyond the reach of his creditors; or that he fraudulently con­
fraud his creditors, or to avoid service of summons, or keeps himself con­
tracted the debt; or that within six months has dealt in “futures” or is in
cealed therein with like intent, or if the defendant is a natural person, or
default for public monies; or bank taking deposits knowing itself to be
a domestic corporation, that he or it has removed, or is about to remove,
insolvent; or making a false publication of its financial condition.
property from the state with intent to defraud his or its creditors; or has
assigned, disposed of or secreted, or is about to assign, dispose of or se­
MISSOURI—An attachment may be obtained at any time, by resident as
crete, property with a like intent.
well as non-resident plaintiffs, when it appears and can be proven that the
defendant is not a resident of this State; or, that defendant is a corpora­
NORTH DAKOTA—Attachment may issue against a foreign corpora­
tion whose chief office or place of business is out of this State; or, that
tion; or against a defendant who is not a resident of this state, or against
defendant conceals himself so that the ordinary process of law cannot be
a defendant who has absconded or concealed himself; or whenever the
served upon him; or, that defendant has absconded or absented himself
defendant is about to remove any of his or its property from the state; or
from his usual place of abode in this State, so that the ordinary process of
has assigned, disposed of, or secreted, or is about to assign, dispose of or
law cannot be served upon him; or, that defendant is about to remove his
secrete any of his or its property, with intent to defraud his creditors, or
property or effects put of this State with intent to defraud his creditors;
is about to remove from the county where he resides, with the intention
or, that defendant is about to remove out of this State with the intent to
of permanently changing his place of residence, upon failing or neglecting
change his domicile; or, that defendant has fraudulently conveyed or
to give security for the debts after its being demanded, or when the debt
assigned his property or effects so as to hinder or delay his creditors; or,
upon which the action w as commenced was incurred for property ob­
that defendant has, or, is about fraudulently fb convey or assign his prop­
tained under false pretense, or in an action to recover purchase money,
erly or effects so as to hinder or delay htr - 'tors; or, that defendant is
for personal property sold to defendent, the attachment may be levied on
about fraudulently to conceal, remove, or
“5fff his property or effects
such property.
so as to hinder or delay his creditors; or. i
.o cause of action accrued
out of this State, and defendant has abscv.— .d or secretly removed his
OHIO—Attachment may be had when the d efen d an ts a non-resident
property or effects into this State; or, that defendant has failed to pay the
or a foreign corporation; or has absconded or concealed himself; o r is
price or value of the article or thing delivered, which by contract ne was
about to remove, convert, or assign, or has concealed his property, with
bound to pay upon delivery; or, that the debt sued for w as frudulently
intent to defraud creditors; or where the debt is fraudulently contracted.
contracted on the part of the defendant. Attachment can be had for a
debt not yet due except the first four grounds for an attachment: but no
OKLAHOMA TERRITORY—Attachment will be granted when the de
j udgment till the debt matures.
fendant or one of several defendants is a foreign corporation or non­
resident of this territory (but no attachment shall be allowed on this
MONTANA—Attachments are allowed without any allegation of fraud
ground
for any claim other than a debt or demand arising upon contract,
in the affidavit therefor, if account or debt is due, where the contract is
judgment or decree); has absconded with intent to defraud his credit­
not secured by any mortgage or lien upon real or persona property bond
ors; has left the county of his residence to avoid the service of summons;
and affidavit are required,
so conceals himself that the summons cannot be served upon him; is
about to remove his property, or a part thereof; out of the jurisdiction of
NEBRASKA—Attachments may issue where the defendant is a non­
the court with the intent to defraud his creditors; is about to convert his
resident or foreign corporation; has absconded with the intent to defraud
property, or a, part thereof, into money for the purpose of placing it be­
creditors; has left the county of his residence to avoid service of sum­
yond the reach of his creditors; his property or rights in action which he
mons; so conceals himself that summons cannot be served upon him; is
conceals; has assigned, removed or disposed of, or is about to dispose of,
about to move his property out of the jurisdiction of the court with the in­
his property or pa,rt thereof, with intent to defraud his creditors; fraudul­
tention to defraud his Creditors:is about to convert his property into money
ently contracted the debt or incurred the obligation for which suit is about
for the purpose of placing it beyond their reach; has property or rights
to
be or has been brought, o r upon the failure to pay the price of goods on
in action which he conceals; has assigned, removed or disposed of. or is
delivery, when contracted to pay on delivery.
about to dispose of, his property with fraudulent intent; fraudulently con­
tracted the debt.
•
vin .t ° i attachment shall be issued when the defendant is
indebted to the plaintiff upon a contract, express or implied, for the direct
NEVADA—Attachment may issue in an action upon a contract for the
payment of money, and when the payment of the same has not been
direct payment of money made or by the term s thereof payable in this
secured by any mortgage, lien, or pledge upon any real or personal prop­
state, which is not secured by mortgage, lien or pledge upon real or per­
erty; and the sum for which the attachment is asked is an actual bona
sonal property situated or being in this state, and if so secured when such
d:u© and owing from the defendant to the plaintiff, anu
security has been rendered nugatory by the a ct of the defendant; in an
the attachm ent is not sought nor the action prosecuted to hinder, delay, or
action against a defendant not residing in this state; in an action by a
defraud any creditor of the defendant; or in action Upon contract express
resident of this state for the recovery of the value of property where such
or
implied
against
a defendant not residing in this state.
property has been converted by a defendant without the consent of the
owner:, where the defendant has absconded, o r is about to abscond, with
the intent to defraud his creditors; where a defendant conceals himself so
F
SYLVANIA—Attachments may issue whendebtor is about to rethat service of summons cannot be made upon him; where a defendant is
move his property or conceal it, with intent to defraud his creditors, or
has fraudulently contracted the debt
about to remove his property, or any part thereof, beyond the jurisdiction


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Federal Reserve Bank of St. Louis

m

1066

BAN K L A W S.

m eats cannot issue upon a debt not matured

returnable. Attach-

lIS E ^ S S P a ti

•defraud his creditors; has removed or is aoout to remove anv of hie r
J1?v?*'a*:® with intent to defraud his creditors; fraudulentlHonhimieS^be deb^or meurred the obligation respecting which the action is
brought: or is a non-resident of the state or is a foreign cornoratflu oS if
d domestic corporation, that all of the nroper officers to serve snllm on I
upon are non-residents or cannot be found, or do not exffit.
summons
WYOMING—Attachment may be had where the debtor is a foreign
roration, or a non-resident of W yom in g,oris about to 1become a I I I resi'
( ent thereof: has absconded with intent to defraud hiscredhOTs" has f in
toe county of his residence to avoid the service of summons- I I c l l l e a / I
himself that service of summons cannot be had upon hirn-i4 lbm?t to re?
move his property, or a part thereof, oat of the ju?isdicUo’n l f the emu^
d? fraud his creditors; is about to convert h ^ prop ertl l r a
part thereof, into money, for the purpose of placing it bevond the reach of
b s creditors: has property or rights of action w h ic h h% conceals^ h l l l l
signed removed or disposed of or is about to dispose of his nloneltv ma part thereof with intent to defraud his creditors; fraudulentlv l r crimin
to b|°or ifas'^beeilbrluigtit!DCUrred the obligation for which suit is about

against a defendant who has absconded or concealed him «¿if?

B H d M ftM fcl
K Ip S t m t w r e “ I S ? " ‘*7 ' 0 r ih e

01 « « o S S i j i t t ' S

S S l V^Jiere any person liable for any debt or demand residing

S i s s1;ate t " evade process!16 property has been f r a u d u l e n t l / ^ v ^ f e
d e n ® l^ ^

Ss^sasSiS«
a^fufflelent remaining for the payment © fi& ig ftS * * b l i l h b ^ i h b i i

lto rs io rSthat h^fs^about^o com ^rtids^pTOperiySr a >part'athereofC^e? -

M a is W ^
g

^

^

f p

I s

I M

s

I f s

soJafln d0reafi^oper™ .ent may b?m ade on mesne process, of bothperre sY | ?£ ^

with Intent to change his domicile; a defendant w hois 'remo vinv£n tend?
Estate* oVre th°er n r o c ^ ^ ^ eS the, sp?ci ? c Property su ed T o rT o /h is own

l i S
Sf S

S

F

“

n0«

^

S i c S , a ! g S . 0 r " nle D4rt *hereot- w l,h ‘» S i *0 Mnderfdelay

ordinary process of law cannot be served upon him1 or has
^sounded or absent ed himself from his usual place of abode in S i s state
soth at the ordinary process of law cannot be served upon him; or h is re• SEEil?* °5 ^8 about to remove any of his property from this state with
intent to delay or defraud liis creditors; or lias assigned secreted nrriia
E??gd-£ fA°i\ia fbout to assign, secrete ¿ r disposeof.any o f h i s nronertv
^rith intent to delay or defraud his creditors; or is about to convert h?a
property, or a part thereof, into money, for the purpose of Dialing Tt hi
his creditors; or h a i been gifiltvofa®f||ug3f |
^ t h e debt or incurring the obligation for which the action is brSulht
or that the damages for which the action is brought are for injuries nH«
ing from the commission of some felony.
injuries a n s
VIRGINIA—,Attachments will issue when defendant is a foreign
CS
a non-resident, or has left or is about to leave the state
with intent to defraud his creditors; or so conceals himself that a sum­
mons cannot be served upon him: or is removing or about to remove his
property, or a part thereof; out of this state with like intent- o M s^ In lert
enfi?ie!w h£
his property, or a part thereof, into monly or selike m te n t;0!: has assigned or disposed of his property or a
part thereof o n sa b o u t to do so with like intent; or has pro pert v o rriv h ts
incurred th l l i l b i m l “ ? , ? ^ t°h£hna? e traudulenti? «on t^ cted the debt o?
^Im lty^t^leastdoubie the^mmmfsued for?6 a b° nd muat be ^ n i n a
WISC °NSIN—Attachment is authorized when the defendant has ah.
seondedor is about to abscond the state, or is concealed therein to t he Ini
jury of his creditors, or keeps himself concealed therein with intent to
service of summons; has assigned, conveyed" disposed of or Sonsealed his property, or some part of it. or is about to do io, with i l t e l t to


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Federal Reserve Bank of St. Louis

B
a
n
kL
a
w
s
.v .^ IlABA?I.A'-B auks of discount and deposit may be established under
the general incorporation laws, but must be wound up at the end of twenty
years, or the General Assembly may extend the time. Depositors not
ulillt5!in^ intereat, are Preferred creditors in case of insolvency. Amfnumb®v p^ persons (not less. than three stockholders) may associate themselves together to establish a bank of deposit and discount; their capital
stock to be not less than $60,000, of which not less than 20 per c e lt Ind in
no case less than $25,000, must be actually paid by the subscribers for stock
dpc?-IraVm
of tbe declaration of incorporation. A transcript of the
m il of
L inc? rporat.10?v, “ U8t also be filled in the offlce of the Seerea
,issues to the incorporators a certificate of incorporation
laid lm
ckldeA
^ nbanker
ablepfowho
riih discounts
Hfd ebts ° l al\e
bank
onlyattoa greater
the extent
unPal,o
stock.
Any
bill
or note
rateofthan
aid ^ la u tCw ? l i l ni.orcE the eo?3,eetion of same except as to the principal
NVwiffimli “ t?reat b.as been paid it must be deducted from the principal.
Ao official exam inations are provided for.
.
v
v
a-.
A.-—Banfes of discount and deposit may b© incorporated under
dfeid
ci )rporatlon act. Banking business may be carried on bv individuais or firms, or by corporations organized for that purpose ‘The
Territorial Auditor is ex-officio bank comptroller. Every bank and banker
under ^ atf? t0 tbe bank comptroller not less than three reports each y e a r

ARKANSAS—Apy number of persons, not less than three, may form a
I I S ? I atl0n- Those proposing to form such a body must elect a
board of directors, a president, secretary and treasurer, and adopt articles
t
^ hlch, m.ust be ?.lel with the Secretary of State and with
of the C0l!? ;y
whlch the corporation is to transact business,
together with a certificate setting forth the purpose for which the cor­
poration is formed the amount of its capital stock, the amount paid in the
names of the stockholders, and the number of shares heldbyfeabh Stbckholders who own paid up stock are not liable for the debts of a corpora­
tion: but stockholders who own unpaid stock are liable for the unpaid
portion thereof as a debt due the corporation which creditors mav reach
SlvPIn18 arenre 9 uired to be made showing the financial condition of the
bank annually to the county clerk and by him recorded in a book kept for
a faiiureto make the.se reports render the president and
K ec S i S r di VldUallyliable ^or
debts of the bank during the period
CALIFORNIA—Corporations may be formed under general laws for
banking purposes. No corporation, association or individual shall issue
or put m circulation as money anything but lawful money of the United
btates. Bank commissioners must annually, or oftener, at their discretion examine the affairs of all banks. All banks are required to make
verified reports m writing at least three times each year. Savings banks
must publish every two years a sworn statement of unclaimed deposits
corporation must keep in its office, in a place accessible to
ita 5i°>c^ l older^ depositors, and creditors, a book containing a list of its
stockholders and the number of shares held by each. It must also post in a
con8picious place m its office a notice signed by the president or secrenames of the directors of the corporation and the number
and value of shares held by each. All foreign banking corporations must
make similar reports to those required by local banks, verified by the
^u?l„°tl; i IiSnag'er of the business, resident in California, and he shall be
subject to the same liabilities provided against directors and officers for
false statements. No bank failing to comply with the provisions of this
law can prosecute an action in the courts. There is no limitation of the
8ue a bailh, banker, trust company, saving or loan association for
money or property deposited with them.
Q
nJ?n2bef of persons, not less than three, may establish
a bank of discount and deposit, and savings bank, or a trust, deposit and
security association in this state under the general corporation laws of
ibejstate. Capital stock of banks of discount and deposit must not be
$30-0°°. 50 per cent to be paid in before opening, apd the balance
. F apital stock of savings banks must not be
I6ss tnan ^o,UUu paid, in cash; trusts, deposit and security companies must
have a capital of $50,000, of which $30,000 should be paid in before beginning
o l l tlev,8'VilI'ant-y oompames must have a capital of $100,000 fully
paid in. Shareholders in all banks in this state are held individually
“ fb le for all obligations of the bank, in double the amount of the par value
of the stock owned by them respectively.
v
0^ £ 9 F IiFi?^’i CU? 'r :BaTnks- ? a? not be, organized in this state except by
special charter of the Legislature. There are two hank commissioners.
apS9lnte<\ by tbe, Governor, with the advice and consent of the Senate;
and they have full power to at any time visit each bank and examine its
affairs, and are required to do so twice in each year. These commissioners make annual reports to the Legislature concerning the condition of
each bank. Said Bank Exam iners may prefer a complaint to the judge of
the superior court of the county or to a judge of the supreme court of
errors, who may, if necessary to protect depositors, enjoin any bank from
doing* business for a certain length of time, or may order the revocation of
its cnarter
vPFL A w A-RE-There is no general banking act and but one state bank
which was chartered by the Legislature in 1807. There are no official exammations and the bank is merely required to make a yearly report of its
condition to the Governor of the state. Banking companies can only be
formed by special act of the Legislature, and the holders of stock therein
are taxed at the rate of one-fourth of one per centum on the cash value of
each share of capital stock.
DISTRICT OF COLUMBIA—There is no statutory provision regulating
banks, private or other, except that savings banks may be incorporated

1067

BAN K LA W S.
under the general statute, and when so incorporated they may continue
for twenty years, and are subject to examination and supervision of the
Comptroller of the Currency the same as national banks,
FLORIDA—Banking corporations may be established, by five or more
persons, in any incorporated town or city having 3.0U0 or more inhabitants
with a capital of not less than $50,000. In towns of not less than 3,000 in­
habitants the capital may, with the comptroller’s approval, be not less
than $15,(XK). Savings banks may have not less than $20,000 capital. Banks
are formed as other corporations are, and cannot begin business until au­
thorized by the comptroller. The comptroller of the state may inspect
and supervise the business of the bank, and inspect and examine its
books, papers, documents, minutes, and everythin»' pertaining to the acts
of the bank. Banks are required to make a semi-annual return to the
state comptroller of resources and liabilities, and advertise in January of
each year amount of stock, property, and contractual indebtedness. Be­
fore organization 50 per cent of the capital stock must be paid in cash; 1U
per cent each month thereafter. Stockholders are individually liable to
the extent of their stock at the par value thereof, in addition to the
amount invested in said shares. Directors must be citizens of the United
States, and own ten shares of stock of $100 per share. The directors must
not be less than five, three-fifths of whom must have resided in State of
Florida one year preceding their election, and must continue so to reside.
The comptroller, with the aid of the courts, winds up the affairs of in­
solvent banks.
GEORGIA—State banks must be chartered by legislative enactment.
There is a general law for their incorporation, approved October 21,1391.
Their stockholders are liable for all their debts to the extent of unpaid
subscriptions, but are further and additionally liable to depositors in an
amount equal to the face value of their respective shares of stock, in
some special charters passed before the general law, the “double liability
clause” is made to apply to all the debts of the bank. The State Treasurer
is ex-officio exam iner of state banks, and it is the duty of this office to
examine a lísta te banks at least once a year. All stats hanks must make
quarterly statements under oath to the state bank exam iner and publish
same in iocal papers at their own expense.
IDAHO—There is no statute law relating to banks. No charters can be
granted to banks except under the general corporation act and no pro­
vision is made for the supervision of banks or bankers by any stats offi­
cial or otherwise. License is required of money loaners.
‘^ILLINOIS—Associations may bs formed to do a general banking busi­
ness (except the issuing of bills to circulate as money), including loans
on personal and real estate security, and accepting and executing trusts.
The capital required is, in cities of 5,000 population or under, $25.000; be­
tween 5,000 and 10,000 population, $50.000; between 10,000 and 50.000 popula­
tion, $100,000 50,000 population and upwards. $200,000. Impairment of capi­
tal must be made good on notice from the State Auditor. The stock being
fully subscribed, a meeting of the stockholders, on not less than three
days’ notice, shall be held, at which the number of directors shall be de­
termined, and they elected. The directors thereupon organize and elect
officers, make by-laws, and arrange for transaction of business. They
are required to take an oath of fealty to the association and observance
of the banking act. Upon complying ivith these provisions, the Auditor
makes examination, and if satisfied that capital has been paid in, issues
a certificate of organization upon payment of reasonable expenses. This
certificate must be filed in the office of Recorder of Deeds of the county
where the bank is organized, and upon recording such certificate the as­
sociation may proceed to business. Stockholders are severally liable for
all engagements of the association to an amount equal to their respective
stockholdings, at par value, in addition to the amount invested in their
share of stock. Reports under oath of president or cashier shall be made
on call of the Auditor at least once in three months, showing resources
and liabilities in detail, which reports shall be published in some news­
paper of the place where the bank is located. At least Once a year the
Auditor shall cause an examination of the bank to be made by a suitable
person not a stockholder, officer, or employe of the bank, who shall make
a detailed report of his examination, and shall have power to examine
officers, employes, or agents on oath. There is no provision of law for
the inspection of private banking firms not organized under the statutes.
INDIANA—Any number of persons, not less than five, may entitle
themselves to a charter as a bans; of discount and deposit. The capital
stock must not be less than $25.000, divided into shares of the value of $100
each. There must not be less than three directors elected by the stock­
holders. These directors shall elect one of their number as president,
and shall also elect a cashier, who must give bond for the faithful dis­
charge of his duties, A corporation so formed may begin business as
soon as 50 per eent of its capital stock shall have been actually paid in;
and it shall have all the powers incident to the business of banking, ex­
cept the issuing of bank notes. A bank may purchase such real estate as
may be necessury for use in its business, or which may be taken by mort­
gage or conveyance in payment of debts; but all property not required in
transacting its business must be resold within five years. Stockholders
are individually liable for tbe debts of the bank to the extent of the par
value of the stock. The Auditor of the State, with the approval of the
Governor, shall, as often as he deems proper, appoint a suitable person,
o r more than one to make an examination of the affairs of all banks es­
tablished under the general banking law. The exam iner so'appointed
must make a full detailed report of the condition of each bank to tbe
State Auditor. Banks must also make at least five reports annually to
tbe Auditor of the State, verified by the president or cashier or other man­
aging agent, showing, in detail, the resources and liabilities of the insti­
tution.
* IOWA—Any number of persons may be incorporated for the transaction
of the banking business, under the general incorporation laws of the state,
but m eb association other than savings banks must have the word “State’;
incorporated in and made a part of the name of the corporation, and any
association not incorporated, partnership or individual, engaged in bank­
ing business is prohibited from embracing or including in the name of such
association, partnership or individual, the word “State.” The capital of
such banks must not be less than $50,000, except in cities or towns having
a population of 3,000 or less, where they may, be organized with a paid-up
capital of not less than $25,000. Stockholders are'responsible to the
amount of their stock'and an additional sum equal to the amount of stock
so held by them. In case of insolvency, bill holders are to be preferred.
Suspension of specie payment is not permitted. The General Assembly,
by a two-thirds vote, may amend or repeal any law, and no special or
exclusive privileges shall be given. 3 A full and accurate statement, veri­
fied by the oath of tbe president or vice-president, or casbier. or assist­
ant casbier and attested by the signatures of at least ttiree directors or
verified bv twn officers and attested by two directors, must be made quar­
terly to the Auditor of the State. The Auditor may cause to be made four
examinations per year of each bank. Corporations, to be known a s s a y ­
ings banks, may be formed under acts applying only to such banks, for
the purpose of receiving on deposit tbe savings and funds of others, and
preserving and safely investing the same, and paying interest or divi­
dends thereon; and any number of persons, not less than five, may or­
ganize such savings banks with a paid-up capital stock of not less than
$10,000 in cities or towns of 10.000 inhabitants or under, and a paid-up
capital stock of not less than $50 033 in citi33 of ovrr 19,333 inhabitants.


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Federal Reserve Bank of St. Louis

KANSAS—Any five or more persons In this state may organize them­
selves into a banking association and shall be permitted to carry on the '
business of receiving money on deposit and to allow interest thereon, giv­
ing to tbe person depositing credit therefor; and of buying and selling ex­
change, gold, silver, coin, bullion, uncurrent money, bonds of the United
States, of the state of Kansas, and of th è city, county and school district
in the state; of loaning money on real estate and personal security, a ga
rate of interest not to exceed tbe legal rate allowed to banks; and of dis­
counting negotiable notes and notes not negotiable. The name selected
for such bank shall not be the name of any other bank doing business in
tbe state and must have thé word “ State” included in it. The capital stock
shall not be less than $5,000, w hich shall be subscribed before tbe charter
is filed, and ali subscriptions to the capital stock shall be paid in cash.
Capital may be increased, the increase to be paid in full. Twenty per cent
of deposits must be kept on band or on deposit with solvent banks, at
least half of which must be in cash on hand. Not more than 15 per cent of
capital and surplus shall be loaned to one debtor. Officers criminally
liable for receiving deposits when bank is insolvent. Dividends can only
be paid out of net profits after deducting bad debts. Private banks •are
subject to the provisions of the law. The Bank Commissioner or deputy
must make examination of each bank at least once a year. Four reports per
annum are required and the Commissioner may call for others. The re­
ports are practically tbe same as those required of national banks. Re­
fusal to comply with tbe law forfeits charter. Double liability on stock­
holders sim ilar to National Banking act.
'KENTUCKY—Banks must incorporate under the general law by filing
articles with the county clerk for record, and are to report their con­
dition quarterly, and of tener if required, to the secretary of state. Minors
and married women may make deposits in their own names, and draw
checks on the same as if of full age or unmarried.
LOUISIANA—Banking corporations must be organized under the gen­
eral free banking laws. The number of persons organizing must exceed
five. No special acts of incorporation can be passed. There are no law s
requiring savings banks to invest in any particular class of bonds. There
are seven banks in the city of New Orleans still doing business under
state charters. Charters are granted for a period not exceeding ninetynine years. Notes for circulation, secured by public bonds deposited
with State Auditor, may be issued. Banks must make and publish quar­
terly statements. Stockholders are liable for the par value of stock only.
Savings, safe deposit and trust banks may be organized without power to
issue bank notes. A married woman may deposit money or funds m any
bank in the state and withdraw same without the authorization or inter
vention of her busband.
MAINE—Discount and savings banks created only by special ch arter;
subject to examination by the Bank Examiner, who may, at any time, call
for statements and make examination; may institute proceedings to wind
up; makes an annual report to the Governor and council. Capital stock
of discount banks must be paid, one-half in six months and one-half in
twelve months from the date of charter; they cannot go into operation
until one-half of the stock has been paid in; cannot circulate bills in exc e ss o f 50 per cent of their capital stock without $1 in specie for every $3
of such excess; nor, at any time, more than capital stock paid in and spe­
cie on hand; must keep 5 per cent of the capital stock in specie reserve;
must not owe more than tw ice the amount of the capital stock aside from
deposits. Directors incurring illegal debts or illegally impairing capital
are liable therefor. Stockholders are liable for an additional sum equal
to the amount of stock. Officers are, president, directors and cashier.
Report to examiners when required.
MARYLAND—The paid-up capital stock in the city of Baltimore must
not be less than $300,000; in shares of $100 each, witn privilege of increasing
the number of shares to 20,000. Outside of the city of Baltimore the paidup capital stock must be $50,000, in shares of $100 each, with privilege of in­
creasing to $5,000. Any five or more persons, citizens of the United States,
and a majority of them citizens of this state, may form a corporation for
banking under the provisions set forth in the code. But shall not be qual­
ified to do business until a majority of the directors shall have certified
to the Treasurer and Comptroller of the State that the required capital has
been fully paid in the “lawful money” of the United States, and a certifi­
cate of such organization shall have been transmitted to the Clerk of the
Court of Appeals, and by him filed among the records of his office. The
number of directors may not be more than seven, nor less than five. None
but a citizen of this state and a stockholder may be director or president.
No one may be a director of more than one bank in this state at the same
time. Semi-annual statements of the condition of state institutions must
be made to the State Treasurer, and be published. Stockholders’ liability
extends to amount of their stock. No official examinations are provided
for,
MASSACHUSETTS—Ten or more persons and their successors may
form a corporation for the purpose of carrying on the business of Banking.
The general court may, by special act, annul or dissolve any such corpor­
ation; but its dissolution shall not impair any remedy against the same
for liability previously incurred. The capital stock of each bank shall
not be less than $100,000 nor more than $1.000,000. The stock shall be paid
in gold or silver money, one-half before the bank goes into operation, and
the remainder within one year thereafter. Before commencing business
the president and directors shall make a certificate specifying the corpor­
ate name, which shall be different from any previously organized in the
commonwealth; the location of said bank; the amount and number of
shares of its capital stock; name and residence and number of shares of
each stockholder, and the time when it is to go into operation; a copy of
which certificate shall be filed with the secretary of the commonwealth. *
Every bank doing business in Boston, except in the suburban dis­
tricts which form a part of Boston, shall on every Monday morning
transmit to the Secretary of the ; Commonwealth a statement under
oath of the president or cashier, of the amount of capital stock, assets
and liabilities of the bank, including amount in Boston clearing house,
which statement shall be based upon the condition of the bank on
the day of the week next preceding said Monday. Monthly reports are
required from every bank in the state, not included in those above
mentioned, to be made to the Secretary of the Commonwealth.
MICHIGAN—Not less than five persons may establish banks and sav­
ings associations. The minimum amount of capital stock must not be
less than $100,000; except in towns of $1,500, and less, the minimum is $15,000, and in towns not exceeding 5JD0O, the minimum is $25.000, and in towns
not exceeding 25,000, it is $50,000. The articles of association shall specify:
The name or the bank, which shall not be similar to that of any other
bank; the county and city or village of its location; whether a commercial or savings bank, or both; the amount of its capital, which m ust be
divided into shares of $100 each; the names and places of residence of the
stockholders and the number of shares held by each; the period for which
the bank is organized, not to exceed thirty years. Fifty per cent of the
capital stock must be paid in before the bank can begin business, and the
remainder in monthly installments of 10 per cent each. Banks are to be
examined once in each year by the Commissioner of the State Banking
Department and report made to State Treasurer.
^MINNESOTA—Banks of issue, discount and deposit may be organized
by tue exécution and recording of a certificate containing the name, place

v

1068

BAN K LA W S.
of business, amount of capital stock, names and places of residence of
shareholders, and the period for which the organization is made. The
capital stock m ust amount to at least $10,000 in towns of population not
exceeding 1,000; $15,000 in towns not exceeding 1,500 people; $20,000 in towns
not exceeding 2,000; $25,000 in towns of more than 2,000 population. Such
association has the usual powers of banks. It may issue circulating notes,
to be secured by the assignment and deposit with the State Auditor of a
like amount of the public stock of a state of the United States, or the stock
or securities of the United States. Banks not of issue but of discount and
deposit only may be incorporated under the general law s of 1895, and in
such case the liability of the stockholder is equal to the amount of stock
held or owned by him.«. No deposit with State Auditor is neeessary.
Loans are limited to 10 per cent of the capital to any one firm or individual.
All loans made to a director or officer of such bank must be made
by full board, and acted on in the absence of the borrower. Private
banks are prohibited from doing business under an artificial or cor­
porate name. Banks are required to make at least four detailed re­
ports in each year to the State Auditor, and oftener if required by him, the
reports to be published in a newspaper at the direction of the State
Auditor. The Public Exam iner is required to examine the books, ac­
counts, and securities of all banks in the State at least once in each year,
and report such examination to the Governor, and the Governor is to pub­
lish such report. Stockholders are liable to creditors to double the amount
of stock held or owned, and such liability continues for one year after sale
or transfer of stock.
MISSISSIPPI—No special laws relating to banks, except that they are
required to furnish, not less than four times a year, sworn statements,
which are to be published. The auditor of public accounts may call for
such statem ent at any time.
i

NEW JER SE Y —Any number of persons, not less than seven citizens
of the state, may associate to establish a bank or a banking company,
but the aggregate amount of the capital stock of ary such association
shall not be less than $50,000 nor more thon $2,000,000.. The persons so a s ­
sociating shall,under tneir hands and seals, make a certificate, by the
term s of which such association shall be bound, which shall specify the
name assumed to distinguish such association; the place where the
business is to be carried on; the amount of the capital stock, and the
numoer of shares; the naines and placés of residence of the share­
holders, and the number of shares held by each of them, and the period
at which such associations shall commence and terminate, which shall
not be for a longer term than twenty years. This certificate shall be
proved or acknowledged in the same manner as deeds, and recorded in
the office of the Secretary of State and in the Clerk’s office of the county
where the office of such association shall be established; but it shall
not be lawful for any association to locatetheiroffi.ee m an y other than
one of the county towns, except by permission of the Commissioner of
Banking and Insurance, to whom all m atters relating to banks are com­
mitted, and in whom lies the right of examination. The Legislature may
dissolve any company created by virtue of this act. The chancellor may
order an examination on application of creditors or stockholders. An
individual, partnership or joint stock association may do a private bank­
ing business under the supervision of the Commissioner of Banking.
The Commissioner must make a thorough examination as to capital,
assets and property in the business, and issue a certificate to such
parties before they do business. Banks usually publish a statement, and
make annual reports to the State Treasurer.

NEW MEXICO—Any number of persons, not less than three, may be
chartered as a bank. The capital shall not be less than 30,000, one-half
of which must be paid in before beginning business, and the remainder
MISSOURI—Any five or more persons may associate themselves for
within one year. Statements are required to be sent twice a year to the
the purpose of establishing a bank of deposit, or discount, or both, by fil­
Territorial Treasurer, sho wing the condition of the bank, on the first Mon­
ing articles of association with the Secretary of State, who issues the
day of January and July, and these statements are required to be pub­
certificate of incorporation. The cash capital must not be less than
lished for three consecutive weeks in a newspaper of the county where
$15,000 or m ore than $5,000,000. In cities having a population exceeding
the bank is located. The officers and stockholders of every bank are
100,000 inhabitants, the capital stock shall not be less than $100,000. The individually liable for all debts contracted during the time that they were
entire capital must be subscribed and one-half thereof actually paid up
such officers or stockholders ratably to the extent of their r§spective
before corporate existence can be acquired, and the other half within one
shares.
year. No person can be a director wno is not a resident of this state, nor
NEW YORK—Banks may be chartered under general laws of the State.
at the same tim,e a director in two state banks, or in a state bank, or in a
In places of 2,000 inhabitants or less the minimum capital must be $25,000;
national bank. The Secretary of State or some one appointed by him is
in places of 30,000 inhabitants or less the minimum capital must be $50,000;
to examine banks and if the eapital is impaired or the bank is doing an
in places with upwards of 30,000 inhabitants the minimum capital must
illegal business the Secretary of State has authority to compel the dis­
be at least $100,000. The capital stock of a bank shall be paid up in full
continuance of such illegal practices, or wind up the affairs of the bank
before it begins business. A deposit is required to be made with the
Sworn statem ents of the condition of the corporation must be filed in the
banking department to secure the bank’s circulating notes, and $1,000 must
office of the Secretary of State whenever by him required, but not less
also be deposited as a guarantee of compliance with the banking law s,
than tw ice in each year. False statements as well as the receip to r
which the Superintendent of the Banking Department is authorized to
assent to the reception of deposits, with knowledge of the fact th at the
apply to the extent required in payment of any penalty incurred by the
bank is insolvent or in failing circumstances, are punishable by a fine or
bank or any assessment imposed upon it. Banks located in cities hav­
imprisonment. Loans of more than 25 per cent of its capital stock to any
ing a population of 800,000 or over shall at all times have on hand in lawful
ihdivdual, corporation or company are forbidden. No person or company
money of the United States an amount equal to at least fifteen per cent of
of persons may engage in the business of banking as private bankers
the aggregated amount of their deposits, and an amount equal to at
without a paid-up capital of not less than $5,000.
least ten per cent if located elsewhere. Stockholders in banks of
issue are liable to the amount of their respective shares, for its debts.
MONTANA—Three or more persons may form a bank of discount and
Holders of the bank’s notes in case of insolvency are entitled to a prefer­
deposit with a paid-up capital of not less than $20,000. Savings banks
ence
over all other creditors. A Savings Bank must not be located in the
must have a capital stock of not less than $100,000 fully paid in. A certifi­
same room or in anv room communicating with a bank of discount. Any
cate, under oath, of the president and cashier must be made to the effect
officer, director, clerk or agent of any discount or savings bank is for­
that all the capital has been paid in, which certificate is filed with the
bidden to borrow money from the corporation with which he is con­
State Auditor, and in the office of the Clerk and Recorder of the county
nected without the consent of the majority of the board of directors. A
where the bank is to be located. This certificate must specify the name
majority of the board of trustees of a savings bank shall not belong to
of the bank, the county and town where located, the amount of the capi­
the board of directors of a bank of discount. Reports must be made
tal, the number of shares (which must be of the par value of $100 each), the
every
three months to the Superintendent of Banking on a day designated
names and residences of the stockholders, the number of shares held by
by him, which report is required to bepublished in a newspaper of the
each, and the time when the association shall begin and terminate. One
place where the bank is located. The superintendent has visitorial
copy of this certificate must be filed with the Secretary of State, and one
powers, and is required to make an annual report to the Legislature of the
with the Clerk and Recorder of the county where the bank isto be situated.
performance of his duty.
Every director must be a citizen of the United States, and at least threefourths of them must be residents of the state, and each must own at
NORTH CAROLINA—Banking corporations can be organized only by
least ten shares of stock. Eaeh must take an oath that he will diligently
special act of the Legislature. The personal liability of stockholders de­
and honestly administer the bank’s affairs. No bank can hold any real
pends upon the term s of the charter. There is no statute regulating the
estate except such as may be neeessary for the transaction of its busi­
transfer
of bank stock or providing how a stockholder shall put an end
ness and such as shall be mortgaged or conveyed to it as security for
to his liability. All joint-stock companies organized under the laws of
debts previously owing and such as it may purchase a t judicial sales.
the
state,
for the purpose of conducting a banking business, whether
The chief officer shall, on the first Monday of January and July and at
savings or general, and all private banks and bankers that solicit or re­
other times when called upon make a statement to the State Auditor of the
ceive deposits, are required to make to the State Treasurer statements of
hank’s affairs. Officers and stockholders are individually liable for all
their financial condition at such times as national banks are required to
debts equally and ratably, to the extent of their stock. Such liability
make statements to the Comptroller of the Currency. Statements are to
ceases at the expiration of six months after the sale of stock.
be published as in the case of national banks, and shall be hiade in ac­
cordance with the form to be prescribed by the State Treasurer; one copy
NEBRASKA—Any number of persons may form a corporation for
of the statement is to be filed with the State Treasurer and another in the
banking purposes. They must adopt and record, in office of the County
office of the bank, banking institution or banker.
Clerk of the county where the business is to be transacted, their articles
of association. Notice must be published in a newspaper in the pro­
NORTH DAKOTA—Three or more persons, two-thirds of whom shall
posed place of business, giving the name of the bank, its place of busi­
be residents of the State, may form a banking corporation, who shall
ness, capital, tim e and condition of payment of the capital, the beginning
make an organization certificate which must be acknowledged and re­
and termination of corporate existence, the maximum liability th at may
corded in the office of the Register of Deeds in the county where such
be incurred, and the names of the officers. The liabilities of the bank
bank may be established, and such certificate also recorded in the office
must not exceed two-thirds of the capital stock, except in eases of banks
of the secretary of State. It is made a misdemeanor to carry on a bank
of deposit only. All banks must publish quarterly statements of their
without forming such association. The capital is graded according to
assets and liabilities, and stockholders are liable to the creditors of the
the population of the town or city. At least five reports shall be made
bank in an amount equal to the par value of the stock held by them in
each year to the public exam iner and published, and the exam iner is em­
addition to the cost of said stock. The cash capital of banks must be as
powered to call for special reports at any time. Penalty; of $200 for not
making same. Statute is substantially the same as National Bank Act.
follows: In villages of less than 1,000 population, $5,000 and upwards;
those of 1,000 to 1,500 population, $10,000 and upwards; in cities of 1,500 to
The stockholder’s liability shall be to the extent of the amount of his stock
2,000, $15,000; of 2,000 to 3,000, $20,000 and upwards; those of 3,000 to 5,000 popu­
therein at the par value thereof in addition to the amount invested in and
lation, $25,000 and upwards, and those of 5,000 to 10,000 population, $30,000 and
due on such snares.
and upwards; more than 10,000 population, $50,000. Reports must be made
by the bankofflcers not less than three times per year, to the state board,
OH1Ô—No law can be passed authorizing the establishment of banks
consisting of the State Auditor, State T reasurer and Attorney-General,
until the same be submitted to the people at a general election and ap­
proved by them, and no such law has been adopted since this prohibition
showing the bank’s condition.
has been inserted in the constitution of the state. The supreme court h as
held, however, that building and loan associations, organized under the
NEVADA—Three or more persons may form a banking company upon
Act of 1808, and savings and loan associations, organized under the Act of
signing and acknowledging a certificate stating the corporate name of
1873, may be formed, and numbers of these are doing a banking business.
the proposed bank, the amount of its capital, the time for which it is to
There are no banks of issue in the state. All banks are required to make
exist, the number of shares into which the capital is to be divided, the
a report to the State Auditor tw ice a year, showing the condition of their
number and names of the persons who are to act as trustees for the
afiairs on the first Monday of April and October. This report must be
first six months, and the name of the place w here the business is to be
published in a newspaper. No visitorial powers, however are granted
transacted, and filing and recording this certificate in the office of the
to the State Auditor.
Clerk of the county within which the principal place of business of the
bank is to be located, and having a certified copy thereof filed in the
OKLAHOMA TERRITORY—All banks must be incorporated. T hree
office of the Secretary of State. There is no provision made for official
or m ore persons m ay organize. Governor, Auditor and Secretary consti­
visitation; nor are banks required to make report of their condition.
tute T erritorial Board of Control. One-third of stock must be paid in,
either in cash or note. Board of Directors not less than three nor m ore
NEW HAMPSHIRE—State banks are chartered by the Legislature
than thirteen. Majority must be residents. Report to Territorial board
only and capital must be fully paid up in actual cash before business is
in January and June. Must make statem ents ten days after Comptroller
begun. E ach stockholder is liable only fo r the par value of his stock.
of United States m akes call for statem ents from National Banks. Must
Statement of condition to be made once in three months to the Secretary
keep reserve fund of 15 per cent of deposits. Cannot loan funds to
of State. Three Bank Commissioners appointed by the Governor ex­
officers, except by order of Board of Directors. Receiving deposits when
amine all banks at least once every year and report their condition to
in failing circum stances, with knowledge of condition, a felony; failure
the Governor
of bank prima facie evidence.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

106 9

BAN K LA W S.
OREGON—There are no law s regulating banks or banking, and there
are no sta te banks.
PENNSYLVANIA—Any person or association of persons, not less than
five, may establish banks of discount, deposit and circulation with a
capital of not less than $50,000 nor more than $1,000,000. Whenever any as­
sociation desires to establish a bank, or increase the capital, a certificate
to that effect must be made for at least six months in at least three news­
papers, one published at the seat of government and the other tw o in the
city or county w here such bank is located. When a copy of this certificate
containing the name, place of business, amount of capital stock, with
the number of shares into which the same shall be divided, is certified
by the Attorney General, it is recorded after the manner of deeds, and the
Governor, upon a certified copy of such certificate being produced before
him, causes letters patent to be issued. Every person or corporation to
whom letters patent may be granted, is authorized to carry on business
for twenty years from date of patent. The Commissioner of Banking is
required to report annually to the Governor a summary of the condition
of every incorporated bank. The capital stock of each bank is divided
into shares of $50 each. It is the duty of every cashier to publish in the
newspapers a statem ent giving the amount of assets and liabilities, cir­
culation, deposits, gold and silver, w ith all evidences of debt, with, the
personal and real property of the bank; and semi-annual reports are r e ­
quired. The Commissioner of Banking is to require not less than two
statem ents a year from cashiers of the condition of banks. Stockholders
are individually liable for the notes issued bv the bank.
RHODE ISLAND—New Banks are organized under direction of three
commissioners appointed by the Governor. The Commissioners super­
intend the organization of bank until entire amount of Capital stock sub­
scribed is paid in in cash. Stockholders, unless exempted by charter, are
individually liable for all debts due from the bank for circulation, deposit
or otherwise, to the amount of the shares held by them, in addition to the
amount invested in such shares. The General Assembly, or Governor,
when the Assembly is not in session, may at any time appoint a special
commission, to visit and examine any bank, or institution for Savings,
and upon complaint of such the Supreme Court may restrain such bank
from doing business and appoint a receiver to wind up its affairs. Banks
and institutions for Savings are required to make returns annually to the
State Auditor,
SOUTH CAROLINA—All banks m ust be incorporated under general
law. Liability of stockholders in bank 100 per cent, over face value of
stock. No director is allowed to borrow from the bank. If any director
or officer be convicted of violating this provision he may be punished by
fine or imprisonment. No loans can be made for a longer period than
tw elve months. All state banks may invest their capital in the bonds of
the State or of the United States to an amount not exceeding one-half of
its capital. The notes of the bank in circulation must not exceed, for
more than four consecutive weeks, three times the amount of gold and
silver coin and bullion in its possession or subject to its control within
the state and to it belonging; and the bank is liable to a forfeiture of $500
for every successive week during which such excess shall exist. E ach
bank is required to transm it on Wednesday of each week to the Comp­
troller-General a certified account of the gold and silver coin and bullion
to it belonging, and it is liable to forfeiture of $100 per day to the state
if it neglect to transm it such report. If any officer of a bank receive any
deposit or trust, or create any debt oh behalf of thé bank after he is cog­
nizant of its insolvency, he shall be deemed guilty of felony, and shall
be liable also to the amount of speh deposit, trust or indebtedness to the
person injured. The comptroller is required to collate the various state­
ments in the returns made by the banks so as to present a comparative
view of the several items thereof and publish the same in a newspaper.
SOUTH DAKOTA—Banking corporations may be formed by three or
more persons, one-third of whom must be residents of the state, signing
articles of association which shall show: The name of the proposed
bank. The place where the business is to be conducted. The amount of
the capital and the number and the value of the shares. The names and
places of residence of the shareholders, and the number subscribed for
by each. The time when such bank-is to commence and terminate its
business. This certificate must be acknowledged and filed with the Sec­
retary of State, who then issues his certificate of authority for it to a ct as
a corporation. 3anks so organized cannot issue notes to circulate as
money. At least one-half of the capital stock must be paid in before it
can begin business. The shares shall be of the value of $100 each. Each
director must own at le a st ten shares of stock. Stockholders are individ­
ually liable ratably for all debts of the bank to the extent of the amount
of their stock in addition to the par value of the shares respectively held
o.v them. There can be no special or limited partnership formed for
banking purposes.

of the stockholders and the number of shares held by each; the number
and kind of officers who are to manage the affairs of the bank, and the
names of those who are to act for the first year. These articles m ust be
sworn to by th ree or more of the subscribers, and must show, among
othe~ things, th at 25 per cent of the capital has been paid in.iy The articles
mu^. he filed in th e office of the Clerk of the District Court, who is thereupr,-- required to issue a certificate showing that the articles of associa­
tion nave been filed, and th is certificate, and a copy of the articles, must
be filed in the office of the Secretary of State, who must issue a certificate
of incorporation. It shall have power among other things, to e xist for
fifty years. T he remainder due on stock must be paid in installm ents of
not less than 10 per cent monthly until the full amount is paid. The Sec­
retary of State is Bank Exam iner ex-officio and is required at least once
a year to examine every bank and make a detailed report of its condition.
VERMONT—Five or more persons*residents of the state, may associate
to establish banks of discount, deposit and circulation. The aggregate
amount of the capital stock must not be less than $50,000, nor more than
$500,000. No association can commence the business of banking until
its entire capital stock is paid in. Examinations of the condition of a
bank shall be made annually, or oftener, if necessary, by the Inspector of
Finance. Savings banks, savings institutions and trust companies are
created by special charter and are subject to general law s of the State
relating to them. The treasurer of every savings bank, savings institu­
tion arid trust company is required, on or before the loth of July of each
year, to report to the inspector of finance, showing accurately its condi­
tion at the close of business on the 30th of June. This report is to in­
clude the name of the institution, place of business, amount of deposits,
number of depositors, and all other particulars relative to the condition
of the institution.
VIRGINIA—The circuit and corporation courts have power to ch arter
any bank except a bank of circulation, which become effective only from
the time they are lodged in the office of the Secretary of Commonwealth.
Every such bank has power to prescribe, by its board of directors, by-laws
regulatings the manner in which its stock shall be transferred, its gen­
eral business conducted, and the privileges granted to it by law .exer­
cised and enjoyed. The affairs of such bank shall be managed by a board
of directors, consisting of not less than five persons, a majority of whom
shall be citizens of the state, and each director is required to own at least
$100 of the capital stock of the bank of which he is director. The board of
directors shall meet at least once a month. The directors shall be elected
at the snnual meeting ef the stockholders. E very such bank m ust make
statements to the Auditor of Public Accounts, identically as the national
banks are required to make to the Comptroller of the Currency, and must
publish such statements in a condensed form, as published by said na­
tional banks, and the auditor is required to call for such statements at
the times prescribed.
WASHINGTON—Two or more persons m aybe chartered as a bank by
subscribing articles of incorporation in triplicate, one of which must be
filed with the Secretary of State, one with the County Auditor of the
county where the bank is to be located, and the other is to be retained by
the corporation. Affidavit that three-fifths of capital has been paid in,
m ust be filed with the articles of incorporation. The minimum capital
stock is $25,000, divided into shares of $100 each. The whole must be sub­
scribed for, and three-fifths must be paid in before the bank begins busi­
ness, the remainder being subj ect to the call of the trustees. Stockholders
are individually ratably not one for another liable for all the debts accru­
ing while they remain stockholders to the extent of the par value of their
stock in addition to the amount invested therein. Any officer of a bank
receiving deposits after he shall have knowledge th at the banking insti­
tution is insolvent, shall be individually liable for such deposits so
received, and doing so is a felony. On the first Monday in June of each
year the bank is required to file with the auditor a report of its affairs.
WEST VIRGINIA—State banks may be formed under general banking
law. Stockholders are liable to the extent of stock held Dy them, and an
equal additional amount for debts accruing while they are such stock­
holders. Such double liability does not extend to stockholders in other
corporations than banking institutions. Embezzlement is larceny and
punishable as such. Fraudulent false entries by bank officer a felony.
Title and trust companies are authorized to do a general banking busi­
ness. The State Bank Exam iner is required, between April 1 and Sep­
tember 30 of each year, to examine the condition of each state bank and
report it to the State Auditor, who shall publish a statement in some
newspaper published in the county where the bank is located, in October
or November, and shall include it in his report to the Legislature.

TENNESSEE—Any company incorporated under the laws of Tennessee
having, by its charter, the right to receive money in trust or otherwise,
has the power to receive deposits and loan same and its capital on any
kind of commercial or business paper or real estate, buy and sell ex­
change and all kinds of public or private securities and commercial
paper. State banks may be chartered at any time in same manner as other
private corporations, and, if they so choose, may couple with the usual
banking business, a safe deposit and trust company. They may do all acts
usually performed by banks. Allow 3 per cent interest on deposits, ad­
vance money on real and personal property, and sell same; and if the safe
deposit and trust feature is added, may take on deposit jew elry and other
valuables and guarantee the preservation and delivery of sam e; guarantee
the titles to real estate and the payment of bonds and m ortgages; execute
trusts of every description; and own a vault and rent out boxes for the
keeping of valuables, but shall not be liable for loss by fire, theft or other
cause. Stockholders not liable except for payment of stock subscribed
by each. Every six months banks must publish a statement of their con­
dition. The Secretary of State is made a bank examiner, and required to
examine each bank quarterly and report to the Comptroller, and each
bank is subject to legislative inspection. There is no law regulating the
class of bonds in which savings banks may invest. Banks organized un­
der state laws are allowed to Issue notes of circulation upon depositing
sufficient securities as provided, with the State Treasurer.
, TEXAS—No statutes regulating operations of banks. There is no pro­
vision for official examination of affairs of any existing state banks, nor
are such banks required to make any statement of their condition.

WISCONSIN—Any number of persons may associate themselves to­
gether to form a bank of discount, deposit and circulation with an aggre­
gate capital of not less than $25,000 or more than $500.000. Such bank must
be located in a city, village or township containing at least two hundred
voters. It cannot issue circulating notes exceeding the capital, andmust
have at least $15,000 actuallypaid in and employed in the banking business.
The state treasurer is ex-officio Bank Comptroller, and issues bank notes
to the banks in sums not exceeding the amount of the United States or
state bonds deposited with him in trust as security for the payment of
said notes, and the director or stockholders of the bank must give bonds
with sureties resident in Wisconsin to the amount of one-fourth of the
notes issued. A correct list of the shareholders of each bank is required
to be filed in the office of the register of deeds of the county where the
bank is located, and also in the office of the comptroller on the first Mon­
day of January and July annually, at which time a report must also be
made under oath by the president or cashier to the comptroller concern­
ing the bank’s affairs, which it is his duty to publish in a newspaper at
the capital of the state. He must also transm it to the Legislature a sum­
mary of the condition of all banks in the state, and must publish a state­
ment of the financial condition of every bank, which must be furnished
him by its officers. Stockholders are liable only to the amount of the
shares respectively held by them. Private banking is permitted, without
state control or interference, apart from the usual civil and criminal lia­
bilities and remedies, except that the name of the person or firm must be
displayed. Most banking, not under national charters, is so conducted.
Savings banks may be organized by twenty or more persons.

UTAH—Six or more persons, two-thirds of whom must be residents of
this territory, may associate themselves together as a bank of discount and
deposit or as a savings bank. When $100,000 at least shall have been sub­
scribed and 25 per cent of the capital shall have been paid to the treasurer
of the association in cash, the subscribers may adopt articles of associa­
tion and elect five or more directors; provided,that in towns having from
10,000 to 20,000 inhabitants the capital of the bank must be at least $50,000; in
towns of less than 10,000 inhabitants the capital must be at least $25,000.
The articles of association must set forth that the object of the subscrib­
ers is to avail themselves, of the privileges of this act; the amount of the
capital stock and the number of shares; the names and places of residence

WYOMING—Banks may be incorporated with capital not less than
$10,000 in towns of 1,000 or less; not less than $25,000 in towns from 1.000 to
2,000; not less than $50,000 in towns from 2,000 to 5,000; not less than $100.000
in towns,over 5,000. Savings associations may incorporate. Loan and
trust companies may incorporate. All banks are required to make full
statements at the end of each quarter, showing their resources and liabil­
ities. The statement is required to be filed in the office of the County
Clerk of the county in which the bank does business and in the office of
the State Exam iner. In the case of a corporation, the report must be pub­
lished in a newspaper.

r.


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Federal Reserve Bank of St. Louis

107 0

BAN K L A W S.
Exemptions—
ALABAMA—A resident of Alabama is entitled to a homestead not ex­
ceeding in value $2,000, and in area 160 acres; and if he leaves surviving
him a widow and minor child or children, or either, during the life o n e
widow and minority of the child or children, such property continu"
empt from levy and sale for his debts. Personal preperty to the vai
$1,000 and wages to $25 per month are also exempt. A deotorm ay waiye
exemptions. W aiver as to homestead must be by separate instrument,
and if by a married man his wife must sign and assent to same as in the
conveyance of homestead,
ARIZONA—Head of family may own real property, selected to the value
of $4,000 and $1,000 worth of personal property.
ARKANSAS—The homestead outside of any city, town or village, shall
consist of not exceeding 160 acres of land, with the improvements thereon,
to be selected by the owner, not to exceed in value the sum of $2,500; and
in no event shall the homestead be reduced to less than eighty acres with­
out regard to value. The homestead in any city, town or village shall
consist of not exceeding one acre of land, with the improvements thereon,
to be selected by the owner, not to exceed in value .the sum of $2,500, and
in no event shall such homestead be reduced to less than one-quarter of
an acre of land, without regard to value. Unmarried persons are enti­
tled to $200 and m arried persons and heads of families toi $500 of personal
property. Time wages of laborers and mechanics, not exceeding sixty
days.
,
5CALIFORNIA—The head of a family is entitled to a homestead not ex­
ceeding $5.000; one not a head of a family, to a homestead not exceeding
$1,000 in value.
;
. COLORADO—E very householder, being the head of a family, is entitled
to a homestead exempt from execution and attachment, not exceeding the
value of $2,000. The homestead may consist of a house and lots in any
to w n o rcity .o r afa rm of any number of acres not exceeding the home­
stead value. Also $60in wages due for services; household goods, etc.,
$100; tools and implements, $200; professional library, $300; working ani­
mals, $200. Also persons not heads of families are entitled to $300 worth of
•tools, working animals and stock in trade.
CONNECTICUT—Homestead to the value of $1,000 is exempt if declara­
tion to hold it as such is recorded. Of the property of any one person, his
necessary apparel and bedding and household furniture necessary for sup­
porting life; arms, military equipments, uniforms, or musical instruments
owned by any member of the militia for military purposes: any pension
moneys received from the United States, while in the hands of the pen­
sioner; implements of the debtor’s trade; his library, not exceeding $500
in value; cattle, poultry, etc., not to exceed $325 in value; certain specified
family stores; the horse of any practicing physician or surgeon, of a value
not exceeding $200, and buggy; one boat used in the business of planting
or taking oysters, or- clams, or shad, with the sails, tackle, rigging, and
implements used in said business, not exceeding in value $200; one sewing
machine in use; one pew in church in use, and lots in burying ground, ap­
propriated by its owner for the burial place of any person or family; so
much of any debt which has accrued by reason of the personal services of
the debtor as shall not exceed $50.
DELAW ARE—No homestead law. Personal property, etc., to value of
$75 is exempt, depending upon the county in which the debtor resides. In
addition to the above, personal property, not exceeding in value $200, is ex­
empt from execution process where debtor is the head of a family. In
some of the counties the amount does not exceed $i50. Wages are exempt
from execution attachment in New Castle county.
DISTRICT OF COLUMBIA—The property of the head of a family is
exem pt from levy and sale as follows: Wearing apparel, household fur­
niture, etc., not exceeding $300 in value; provisions and fuel for three
months; implements of trade amounting to $200, and $200 worth of stock:
library and implements of a professional man or artist, of the value of
$300; one horse, mule, or yoke of oxen, harness, one cart, wagon or dray;
farming utensils, with three months’ food for team and to a farmer, farm­
ing tools of the value of $100; all family pictures, and the family library,
not to exceed $400 in value; one cow, one swine, six sheep. The earnings,
not exceeding $100 per month, of actual residents who are m arried or who
have to provide for a family, for two months prior to issuing any writ, are
3xempt.
FLORIDA—Real property to the extent of not exceeding 160 acres out­
side Of any incorporated town or city, and not to exceed one-half an
a cre within the limits of any such town or city, is exempt from forced
sale, together with $1,000 worth of personal property to every person who
is the head of a family residing in this state: and money due to such per­
son for personal labor or services is exempt from garnishment or attach­
ment.
GEORGIA—The head of every family, or the guardian or trustee of a
family of minor children, every aged or infirm person, or person having
the care and support of dependent females of any age, is entitled to have a
homestead set apart on realty or personalty, or both, to the value, in the
aggregate, of $1,600. No judgment, execution or decree may be enforced
against the property so set apart as a homestead, including improvements
made thereon from time to time, except for taxes, for the purchase money
of the same, for labor done thereon, for m aterial furnished therefor or
for the removal of incumbrances thereon. This right of homestead may
be waived in writing as against any particular debt, except as to wearing
apparel and $300 worth of household and kitchen furniture and provisions.
The homestead may not be alienated or incumbered, but it may be sold by
the debtor and his wife, if any, jointly, with the sanction of the Judge of
the Superior Court where the debtor resides, or the land is situated, the
proceeds to be reinvested upon the same uses.
5IDAHO—The homestead, consisting of a quantity of land, and a dwell­
ing house thereon, with its appurtenances, not exceeding the value of
$5,000, to be selected by the husband or wife, or both or by other head of a
family, and not exceeding $1,000 if claimant is not the head of a family, office
furniture and library, $100, necessary household and kitchen furniture
and provisions for family for three months; certain farm animals, etc.,
with food for three months; tools and implements of husbandry up to $200
Libraries of professional men, and team used by a laborer or team ster
are also exempt.
ILLINOIS—fevery householder having a family Is entitled to a home­
stead, valued at $1,000, and such exemption continues to the survivor after
the death of husband or wife, so long as he or she occupies it, and to the
children until the youngest is twenty-one years old. In addition, there is
also allowed to every person necessary wearing apparel, etc., and $100
worth of other property selected by the debtor. If the debtor is the head
of a family, and resiaes with the same, he is allowed $300 worth in addi­
tion, to be selected by him. But such selection cannot be made from anyi
money or wages due. Of wages there are $8 per week exempt from gar­
nishment to any one who is the head of a family residing with the same.
Wages earned are preferred debts in cases of insolvency of debtor owing
such wages. -


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Federal Reserve Bank of St. Louis

INDIANA—There is no homestead law. An exemption of $600 on any
contract liability is allowed to resident householders. One month’s wages
is exempt from garnishment and on proceedings supplemental to execution w hile the employment lasts. There is no exemption as against mechan­
ic s liens, purchase money, liens and taxation. The right of exemption
cannot be waived by contract.
TERRITORY—The personal property of any resident of the
Indian Territory who is not married or the head of a family, in specific
articles to be selected by such resident, nor exceeding in value the sum of
$200 in addition to his wearing apparel, provided that no property shall be
exem pt from the execution for debts contracted for the purchase money
therefor while in the hands of a vendee, or Umarried person or head of a
family, in specific articles to be selected by such resident not exceeding
in value the sum of $500 in addition to his or her wearing apparel and that
of his or her family, shall be exempt on debt of contract. À judgment is
not a lien on real estate. Improvements oh real estate in excess of 160
acresm ay be. subjected to the payment of judgment by an action in equity
and the appointment of a receiver when such improvements are sold at
execution sale. Only a citizen of the tribe in which the improvements are
situated may become a purchaser.
t

IOWA—The homestead must embrace the house used as a home by the
owner thereof ; and if he has two or more houses thus used by him at dif
ferent times and places, he may select which he will retain as his home­
stead. It may contain one or more lots or tracts of land, with the build
ings thereon, and other appurtenances, subject to the limitations below
set forth, but must in no case embrace different lots and tracts unless they
are contiguous, or unless they are habitually and in good faith used as a
part of the same homestead. If within a town plat it must not exceed
one-half acre m extent, and if not within a town plat it must not embrace
in the aggregate more than forty acres. When thus limited, if in either
case its value be less than $500, it may be enlarged until its value reac hes
that amount. It must not embrace more than one dwelling house, or any
other buildings except such as are properly appurtenant to the homestead
as such; but a shop or other building situated thereon, and really used and
occupied by the owner in the prosecution of his own ordinary business, and
po t exceeding $300 in value, may be deemed appurtenant to such homestead,
it is liable for taxes accruing thereon, is subject to m echanics’ liens for
work, labor or m aterial done or furnised exclusively for the improve­
ment of the same, and may, after all other property is exhausted, be sold
on execution for debts contracted prior to its acquisition.except whenpurcrased with pension money. A conveyance or encumbrance of a home- '
stead by the owner is of no validity unless th e husband and wife, if the
owner be married, concur in and sign the same joint instrument. P er­
sonal property exempt includes tools, instruments, library, necessary
team, etc., of mechanic, farm er, teacher, or professional man; wearing
apparel, household and kitchen furniture, $200; certain farm animals;
poultry to the value of $50, and neftessary food for six months. Foregoing
relates only to residents being heads of families; unmarried persons and
non-residents being only entitled to retain their owii clothing and trunks
save and except pensioners. Where debtor is a printer, the printing press
and types, furniture and m aterial up to $1.200 are exempt. Earnings of
debtor who is the head of a family within ninety days of levy are exempt.
No exemption allowed against execution for purchase money. When
property of a company, corporation, firm or person is seized under court
process or placed in the hands of a receiver, trustee or assignee, debts
owing to employees for labor performed within 90 days next preceding the
seizure or levy and not exceeding $100 to each person, shall be preferred
and first paid.
KANSAS—One hundred and sixty acres farming land or one acre in in­
corporated city, with all improvements thereon, while occupied by fam­
ily of Owner, cannot be alienated except by joint consent of husband and
wife. No exemption for purchase money or for improvements erected on
homestead. Every person being the head of a family shall have exempt
certain live stock, household goods, etc., not exceeding $500; implements
etc., not exceeding $300; grain, meat, vegetables, groceries, etc., for thè
family for one year; the tools and implements of any mechanic, minor or
other person, and in addition thereto stock-in-trade not exceeding $400 in
value; library, implements, and office furniture of any professional man
Residents, not the head of a family, have tools, implements, and stock-intrade up to $400 exempt from execution.
KENTUCKY—Homestead notto exceed in value $1 ,000 is exem pt to the
head of the family when occupied by the family, and can be conveyed by
joint deed of husband and wife; also specified articles, tools of trade and
household goods and provisions for family, and exempt work beasts, for
one year, not to exceed in all $750.
LOUISIANA—To head of family, real estate, if owned and occupied as a
residence, together with certain furniture, stock, implements, provisions,
etc., the property not to exceed $2,000, and no exemption if wife has sepa­
rate property worth $2,000.
MAINE—Homestead, $o00, where duly registered; usual wearing ap­
parel; furniture, $100; bedding pictures, etc.; library, $150; stoves, fuel, and
lumber; provisions and seed grain, sewing machine; certain working
animals; a team not exceeding $300 in value, and a boat of two tons burdendomestic fowls worth $50, and two shares stock building and loan associ­
ation. Tools of trade and material for carrying on same not exceeding $50.
-¡'‘MARYLAND—There is no homestead law. Usual wearing apparel
$100 worth of personal property and wages of employes to the amount of
$100 are exempt.
MASSACHUSETTS—A householder can create estate of homestead to
the value of $800, and no more; in lands and buildings owned or rightly
possessed by lease or otherwise and occupied by him as a residence
and there is no exemption unless a homestead is particularly creatednecessary wearing apparel of family, certain specified articles of house­
hold furniture, and $300 worth in addition thereto; library, $50; tools and
implements; $100, boats and fishing tackle, etc., $100: one cow, six sheep
one hog and two tons of hay; sewing machine, pew m church, etc
t
MICHIGAN—A home of one lot in any town or city, or not more than
forty acres of land outside, not exceeding $1,500 in value, owned and occu­
pied by a resident of thé state, is exempt from execution; apparel; books
to the value of $150; family pictures, two cows, five swine, with provisions
and fuel for six months; tools, team of horses, wagon necessary to carry
on trade, business or profession, not exceeding in value $250; to each
householder, goods,furniture,etc.,notexceeding in value$250. Also every
householder having a family shall be exempt the sum of $25 for personal
labor.
MINNESOTA—A homestead, consisting of land not exceeding eighty
acres and the dwelling house thereon, and its appurtenances, to be se­
lected by the owner thereof, and not included in-the platted portion of
any incorporated town, city or village, or. instead thereof, at the own­
er s option, a quantity of land not exceeding in amount one lot, if within
the platted portion of any incorporated town, city or village having over
5,COOinhabitants, or one-half acre, if within the platted portion of any in­
corporated town, city or village having less than 5,000 inhabitants, and

1071

BAN K L A W S.
the dwelling' house thereon and its appurtenances, owned and occupied
by any resident of this state, is not liable for debts of owner, except
mortgages and vendor liens created by act of husband and wife in writ­
ing. and except for labor or material furnished in building or improving
o r repairing same.
MISSISSIPPI—In the country 160 acres of land, not exceeding in value
452,000, is exempt to every citizen, male or female, being a householder and
having a family. In cities the land and building owned and occupied as a
residence not to exceed in value $2,000 is exempt from levy and sale under
execution or attachment.
MISSOURI—Homestead in the country shall not include more than 160
acres of land, or exceed the total value of $1,500; in cities having a popula­
tion of 40.000 or more, such homestead shall not include more than eigh­
teen square rods of ground, or exceed the total value of $3,000; in cities
having a population of 10,000 and less than 40,000 such homestead shall not
include more than thirty square rods of ground or exceed the total value
of $1,500; in cities and incorporated towns and villages having a popula­
tion of less than 10,000, such homestead shall not include more than five
acres of ground or exceed the value of $1,500. Personal property, such as
household furniture, etc., or general property to the value of $300. Also a
month’s wages to employes. Fo r personal services by house servant or
common laborer to amount not exceeding $90. No property is exempt if
suit be brought within six months.
MONTANA—Homestead of 160 acres if not in town, or one lot not ex­
ceeding one-fourth of an acre, if in town and buildings thereon, all worth
no more than $2,500, is exempt. Homestead declarations must be made and
filed before the rendition of the judgment against the debtor in order to
hold such exemptions.
NEBRASKA—There i-s exempt from judicial sale to every family a
homestead, not exceeding in value $2,000, consisting of a awelling-house
m which claim ant resides and its appurtenances and lands on which the
sam e is situated, not exceeding 160 acres, or if within an incorporated city
or village, a quantity of contiguous lands not execeeding two lots. All
heads of families who have neither lands, town lots Or houses subject to
exemption as a homestead shall have exempt $500 in personal property
besides certain specified articles, such as ordinary household goods; or,
if a farmer, a team and the ordinary farming implements. Provisions
for the family necessary for six months’ support. The tools of a mechanic
and the library and implements of a professional man. Sixty days’ wages
of laborers and mechanics who are heads of families.
NEVADA—A homestead not exceeding $5,000, to be selected by the hus­
band and wife, or either of them, or the other head of the family, is exempt
from forced sale on execution, or other process from the courts.
NEW HAMPSHIRE—The wife, widow and children of every person
who is the owner of a homestead, or any interest therein, are entitled to
so much thereof as does not exceed in value $500. If the wife owns a
homestead at her decease the life estate of the surviving husband, not ex­
ceeding the value of $500, is exempt to him. A homestead of the value of
$500 is also exempt to an unmarried person owning the same.
NEW JE R S E Y —House and lot to the value of $1,000. The conveyance
should show that the property is to be held as a homestead, or a notice to
th at effect should be recorded in the clerk’s office and published for six
weeks in one or more newspapers of the county.
NEW MEXICO—Husband and wife, widow or widower, living with an
unmarried daughter, or unmanned minor son, may hold exempt a family
homestead not exceeding $1,000 in value. Any resident of this territory,
who is the head of a family and not the owner of a homestead, may hold
exem pt real or personal property, to be selected by such person, not ex­
ceeding $500 in value, in addition to the amount of chattel property other­
w ise by law exempted.
NEW YORK—A lot of land with one or more buildings thereon, not
exceeding in value $1,000 owned and occupied as a residence by a house­
holder having a family, when designated as an exempt homestead as pre­
scribed by law, is exempt; also household articles, tools and imp ements
of mechanics not exceeding $25 in value, and in addition furniture, tearrfs,
professional instruments, and library not exceeding $250 in value.
NORTH CAROLINA—Every resident of this state is entitled to real es­
tate of the value of $1,000, and personal property of the value of $500 as a
homestead and personal property exemption, which property shall be e x ­
em pt from sale under-execution. The homestead remains exempt from
sale under execution to the widow during life if there be no children, or
to infant children, until the youngest child becomes 21 years of age.
NORTH DAKOTA—A homestead not exceeding in value $5,000 to be se­
lected and appraised as provided by statute, also $l,5d0 of personal pro­
perty is exempt to the head of a family from judgment lien and execution
of forced sale.
OHIO—Husband and wife living together, widow or widower, living
with an unmarried daughter or unmarried minor son, may hold exempt
from sale on judgment or order a family homestead not exceeding $1,000 in
value; the wife may make demand if the husband refuse, but neither can
make such demand if the other has a homestead. Where the homestead
is sold for the payment of liens thereon, after payment of such liens, the
owner may claim $500 out of the balance of the proceeds of sale, if any, in
lieu of a homestead.
OKLAHOMA TERRITORY—The homestead of a family not in a city or
town shall not exceed 160 acres. The homestead in a city or town shall
not exceed one acre with the improvements thereon.
OREGON—Homestead of any family is exempt from judicial sale for
the satisfaction of any liability hereafter contracted or judgment here­
after obtained on such debt to the extent of 160 acres when not located in
town or city ;or if so located to the extent of one block), and to the extent
of $1,500 in value.

a home by the owner, and if the owner has two or more such houses hp
may select which he will retain, as the homestead must only embrace
contiguous lots limited to one acre, of city property; 160 acres of farm
property limited, to $5,000 in value. Upon death of either the husband or
wife, the survivor may continue to occupy the homestead. Personal
property of the value of $750 is also exempt.
TENNESSEE—A homestead or real estate in the possession of, or be­
longing to, each head of a family, and the improvements, if any. thereon,
to the value of, in all, $1,000, certain household furniture, family supplies
livestock provender, farming implements, tools of trade &c., specified
by Statute, shall be exempt from sale under legal process during the life of
such head of the family, and which shall inure to the benefit of his widow
and children, and shall be exempt from sale in any way at the instance
of any creditor or creditors.
T E X AS—A suburban homestead consisting of not more than 200 acres of
land, which may be in one or more parcels with the improvements, th ere­
on. without regard to value; an urban homestead consisting of lot or lote
not to exceed in value $5,000 at the time of designation as the homestead
without reference to the valué of any improvements; provided that same
shall be used for the purpose of a home, or as a place to exercise the call­
ing or business of the head of a family, are exempt,
UTAH—The statute provides that if the debtor be the head of a family
there shall be exempt a homestead to be selected by the debtor, consist­
ing of lands not exceeding in value the sum of $1,500 for the judgment
debtor, and the further sum of $500 for his wife, and $250 for each other
paember of the family. If the homestead selected is of greater value than
is exempted, the judgment debtor has the option to permit sam e to be
partitioned or to be sold and to receive in money the value of the home­
stead. Also all of the earnings of the head' of the family for the sixty
days immediately preceding. Non-residents have no exemptions.
VERMONT—The law exempts a homestead to the amount of $500; also
personal property notiexceeding in value $200.
vVIRGINIA—A householder, the head of a family, is entitled to have real
and personal property exempt to the value of $2,000. This homestead ex­
emption can be waived, however, by a statement embodied in the note,
bond or other writing to that effect. And in case of householder or head
of family, who is a laborer, an wages not exceeding $50 a month are e x ­
empt. The homestead claimed to be exempt must be described in a
writing signed by the householder and duly admitted to record in the
county or corporation wherein the property claimed is located. The head
of a family is also allowed necessary articles of furniture, &c.
WASHINGTON—To every householder, being the head of a family, a
homestead to the value of $2,000 is exempt (a homestead may consist or a
house and lot or lots, or a farm) also family wearing apparel, fire arms
for use of family and other personal property to the value of $750. All life
insurance proceeds. In addition to this, special exemption of personal
property as follows: Farmer—Stock and farming tools not to exceed $500
m value. M echanic —'Tools and instruments of his trade not to exceed $500.
P h y s ic ia n —Library not to exceed $500, horse and buggy and harness, and
instruments and medicines not exceeding $200. A ttorney a n d other profes­
sionals— Library not exceeding $1,000. A homestead may be mortgaged.
When property that is exempt is insured and is destroyed by fire the insur­
ance money shall be exempt. Money received as a pension from the Gov­
ernment, whether in actual possession of the person, or deposited or
loaned by him, shall be exempt.
WEST VIRGINIA—A resident husband or parent,or the widow or the inían\£ílí, ren,ofdeceased parents, may have personal property not exceed
ing $200in value, exempt from forced sales; and since 1872, such husband
or parent, or widow, or the guardian of such infants, may have recorded a
claim of homestead, not exceeding $1,000 in value, as exempt from liability
fordebts, except such as were incurred for the purchase of such pro­
perty, or for permanent improvements or taxes thereon. Any resident
mechanic, artisan, or laborer, whether a husband or parent, of not, may
* Mntí}ei w°rking tools of his trade or occupation exempt to the extent
of $50, but not so as in any case to allow more than $200 exemption of per­
sonal property to one person.
WISCONSIN—Exemption from execution extends to forty acres of agri
cultural land, or one-fourth acre of village or city property, to be selected
by debtor, together with dwelling house and its appurtenances. Proceeds
of sale of homestead are exempt for two years while held in good faith
with Intent to procure another therewith.
WYOMING—Every householder in the state of Wyoming, being the
head of a family, is entitled to a homestead not exceeding in value the
sum of $1,500, which is exempt from execution and attachment arising
from any debt, contract, or other obligation entered into or incurred, but
is exempt only where occupied as such by the owner thereof, or the
person entitled thereto, or his or her family. Other exemptions: House­
hold goods, $500; tools or stock in trade, $300; wages not exceeding $501
Above exemptions do not apply where attachment or sale is upon execu­
tions for the purchase money of any article of property.

InterestALABAMA—Legal rate is 8 per cent. In case of usurious contract
where usury pleaded all interest forfeited and defendant recovers full
r?'te 181 Per cent per annum, and by contract any rate
may be fixed. There is no usury law.
J

PENNSYLVANIA—There is no homestead la w . Property, real' or per­
sonal, to the value of $300, besides wearing apparel, are exempt.

ARKANSAS—Legal rate is 6 per cent, but contracts may be made for
any rate not exceeding 10 per cent; usury forfeits principal and interest.

R :’ ODE ISLAND—No homestead law. Necessary wearing apparel of
deLt; .. and his family; necessary working tools, not exceeding $200, and
household furniture and family stores not exceeding $300 are exempt from
attachment and execution where the debtor is a householder.

CALIFORNIA—-Legal rate is 7 per cent per annum, but any rate may be
contracted for. There are no usury laws.

SOUTH CAROLINA—Homestead not to exceed in value $1,000. with the
yearly products thereof: and every head of a family residing in this state,
whether entitled to a homestead exemption in lands or not, personal
property not to exceed in value the sum of $500.
\S0UTH DAKOTA—The homestead, whether owned by husband or
wife, is exempt from judicial sale, judgment lien, and all process while it
possesses the homestead character. It must embrace the house used as


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Federal Reserve Bank of St. Louis

I COLORADO—Legal rate is 8 per cent per annum, but parties may con­
tract for any other or higher rate. There are no usury laws.
CONNECTICUT—Legal rate is 6 per cent. No penalty for usury,
DELAWARE—Legal rate is 6 per cent. Usury forfeits principal and
interest. If any bank incorporated by any law of this state shall engage in
any transaction, the amount of profit of which shall exceed the rate of 1
per cent for sixty days, such bank shall be deemed and taken to have
forfeited its charter, and the directors or managers of the bank shall be
guilty of a misdemeanor and shall be fined at the discretion of the court.

1072

\

BAN K LA W S.
DISTRICT OF COLUMBIA—Six per cent per annum i9 the legal rate;
parties may agree in writing for any interest not exceeding 10 per cent.
The penalty for usury is the forfeiture of the Whole of the interest, which
may he recovered hy corporation or person paying same by suit brought
within a year after such unlawful interest has been paid.
FLORIDA—Legal rate is 8 per cent, but parties can stipulate for any
rate not exceeding 10. Usury fo rfeits entire interest.
GEORGIA—Legal rate, except on contracts specifying another rate, is 7
per cent and no more than 8 per cent per annum may be contracted for,
even by written instrument. The penalty in cases where usury is con­
tracted for is the forfeit of the excess above legal interest, and where the
title of any property has been conveyed as security for the usurious debt,
such title is absolutely void. A mortgage, however, does not convey title
and is not so rendered void. Usury in a contract renders void the waiver
of a homestead.
IDAHO—Legal rate 7 per cent. Parties may agree in writing for 12
per cent. Above that rate, and agreement for interest on interest not due,
usurious. Usury penalty forfeiture of all interest and costs of action.
ILLINOIS—Legal rate is 5 per cent; 7 per cent may be contracted for on
all w ritten contracts. The penalty for usury is forfeiture of the entire
interest.
INDIANA—Legal rate is 6 per cent, but parties may contract in writing
for 8 per cent. Where a contract calls for usurious interest, it is void only
as to the interest in excess of 6 per cent.
INDIAN TERRITORY—Legal rate 6 per cent. By contract, not exceed­
ing 10 per cent. Contracts in excess of 10 per cent are void as to principal
and interest.
IOWA—Legal rate 6 per cent. Parties may contract in writing for 8 per
cent Usury works a forfeiture of 8 per cent of amount unpaid to school
fund, and plaintiff takes judgment for the principal without interest;
costs against plaintiff.
KANSAS—Six per cent. May contract in writing for 10; if more than 10
per cent is contracted for, double the excess of Iff per cent is forfeited.
Usury does not affect bona fide holder of negotiable paper without notice,
but after payment double the excess paid may be recovered back of per­
son originally exacting the usury, if suit be brought within ninety days
after maturity of such paper.
KENTUCKY—Legal rate is 6 per cent. All usurious contracts .are void
to the extent of the usury. Usury paid to assignee of the lender may be
recovered of the lender. Usury paid may be recovered.
LOUISIANA—Legal rate is 5 per cent, but 8 per cent mhy be agreed
upon. If higher than 8 per cent be charged, such charge forfeits eniire
interest. If paid, it may be sued for, and recovered within twelve months.
But a higher rate may be recovered if included in the principal of the note.
MAINE—Legal rate is 6 per cen t w here not stated in writing; any rate
legal if agreed to by the parties in w riting; no usury law.
MARYLAND—Legal rate 6 per cent. Usury forfeits excess, with in­
terest thereon.
MASSACHUSETTS—Legal rate is 6 per cent, which is allowed on judg­
ments. There are no usury laws, and any rate may be reserved or con­
tracted for in writing, except on loans of $1,000 or less, which shall not
exceed 18 per cent., and where loans are secured by m ortgage of house­
hold goods for $200 or less shall not exceed 12 per cent.
MICHIGAN—Legal rate is 6 per cent. Parties may contract in writing
for 8 per cent. The penalty for usury is a forfeiture of all interest.
Usurious interest, voluntarily paid, cannot be recovered.
MINNESOTA—Six
per cent is the legal rate. Parties may agree to
pay as high as 10 per cent per annum. All usurious contracts are void,
and court will decree cancellation. W here usurious interest has actually
been paid the entire interest may be recovered in a civil action, half to go
to party bringing action, and half to goto public schools, with allinterest
MISSISSIPPI—Legal rate is 6 per cent, but by written contract 10 per
cent may be provided for. If a greater rate than 10 per cent be stipulated
for or received in any case, all interest is thereby forfeited and may be
recovered back.
MISSOURI—Legal rate is 6 per cent. Parties may contract for 8 per
cent. Penalty for usury, forfeiture of interest atlOper cent to the common
schools and recovery by defendant of his costs. Usurious interest paid
shall be credited on principal debt. Judgments bear 6 per cent per annum,
unless the instrument sued on bears a different rate, not to exceed 8 per
cent. Interest on judgment compounds if rendered on compound interest
agreement.

NORTH CAROLINA—Legal rate is 6 per cent. Usury works a forfeiture
of the entire interest, and in case a greater rate has been paid, the person
paying the same, or his legal representative, may recover back by action,
twice the amount of the interest so paid, if action is brought within two
years.
NORTH DAKOTA—Legal rate is 7 per cent. Parties may contract
for 12 per cent. The law provides that when usurious interest has been
paid a civil action may be commenced to recover twice the amount of in­
terest paid, but if not paid the payee forfeits simply the interest.
OHIO—Legal rate is 6 per cent, but parties may contract in writing for 8
per cent. If a contract be made for a higher rate than 8 per cent the con­
tract as to interest is void, and the recovery is limited to the principal sum
and 6 per cent.
OKLAHOMA—Legal rate 7 per cent, contract may be 12 per cent. Usury
forfeits excess of interest only.
OREGON—Legal rate is 6 per cent, but contracts to pay not to exceed 10
per cent on special contracts, if there be an agreement to that effect, only,
may be enforced. Usury is punishable by forfeiture of the interest abso­
lutely, and of the principal to the common school fund
PENNSYLVANIA—Legal interest 6 per cent. Illegal interest does not
forfeit the debt or interest, but no more than 6 per cent can be recovered
Illegal interest can be recovered back if sued for in six months.
RHODE ISLAND—Legal rate is 6 per cent, but any rate agreed upon be­
tween the parties may be taken. There is no usury law.
SOUTH CAROLINA—Legal rate is 7 per cent, but 8 per cent may be con­
tracted for in writing. The receipt of any interest greater than that thus
allowed shall be attended not only with the forfeiture of all interest, but
lender shall be liable in a separate action for double the sum so usuriously
received.
.
SOUTH DAKOTA—Legal rate, 7 per cent; contract rate may be 12 per
cent. Usury forfeits double the amount of interest collected.
TENNESSEE—Legat.l rate is 6 per cen A defendant sued for money
may avoid the excess over legal interest by a plea of setting forth the
amount of the usury. If usurious interest has been paid, it may be recov­
ered by action at the suit of the party from whom it was taken.
TEXAS—Legal rate is 6 per cent; conventional, 10 per cent. Double the
amount of usury paid may be recovered at any time within two years after
the payment thereof.
UTAH—Legal rate, 8 per cent, but parties may agree in writing for any
rate of interest on any contract. There is no usury law.
^
•
VERMONT—Legal rate, 6 per cent. Usury foreits excess of legal
interest with interest on same from time of payment.
VIRGINIA—Six per cent; all contracts for more tare void, except as to
principal sum.
WASHINGTON—Legal rate of interest is 6 per cent per annum, and 12
per cent is allowed if agreed to in writing. Judgments bear the legal ra te
of interest, except on written contracts, when they Dear the same rate a s
contract. Penalty for usury, forfeiture of double the interest and costs
of prosecution.
/
WEST VIRGINIA—Legal rat§ is 6 per cent. Though a higher rate may
have been agreed upon, the excess may be avoided on a plea of usury,
except by an incorporated company. Corporations are authorized to borrow
money at higher rates. Illegal interest paid may be recovered within five
years.
WISCONSIN—Legal rate is 6 per cent with right of contract in writing
as high as 10. Penalty for higher rate is forfeiture of all interest. Any
parson having paid excessive interest may recover bank treble the excess
paid by action brought within one year after payment. Corporations are
barred from pleading the defense of usury.
WYOMING—Legal rate is 8 per cent, but any rate not exceeding 12 per
cent may be agreed upon in writing.

Legal Holidays—

NEBRASKA—Legal rate is 7 per cent, but by agreement may be 10 per
cent. The penalty for taking a greater rate of interest than 10 per cent is
loss of all interest and cost of an action.

Sunday is a legal holiday in ail States.
ALABAMA—Christmas, February 22, January 1, July 4. Thanksgiving,
Mardi Gras, Good Friday, April 26 (Memorial Day) and the first Monday i»
September (Labor Day). If any of these days fall on Sunday the Monday
following isithe legal holiday.
ALASKA—January 1, February 22, May 30, July 4, December 25, Thanks­
giving.
ARIZONA—January 1, February 22, May 30, July. 4, September 2 (Labor
Day), December 25, Thanksgiving, General territorial election.

NEVADA—Legal rate is 7 per cent, but parties may agree, in writing,
for any rate of interest whatever, on any contract. Banks are allowed
interest at the rate of 24 per cent per annum where there is no contract in
writing for a different rate, for all money due on instruments in writing
payable to them, and on overdrawn accounts with them, and on any judg­
ment recovered therefor.

ARKANSAS—July 4, Christmas, January 1, February 22 and Thanks­
giving.
CALIFORNIA—January 1, February 22, May 30. July 4, December 9
December 25, any public fast, Thanksgiving, Labor Day, State or general
election day.

NEW HAMPSHIRE—Legal rate is 6 per cent per annum, unless a lower
rate is stipulated. The penalty for usury is forfeiture of three times the
excess of 6 per cent paid.

COLORADO—January 1, February 22, May 30,July 4, December 25, Thanks­
giving, Labor Day and, in cities having 100,000 population or over, Saturday
afternoons during JUne, July and August.

NEW JE R S E Y —Legal rate is 6 per cent, and the penalty of usury is loss
of all interest and costs if suit be necessary to recover

CONNECTICUT—January 1, February 12 (Lincoln Day).February 2f. Hay
30, July 4, Labor (first Monday in September), Thanksgiving, December 25,
F a s t day.
D EL AW ARE—Christmas, January 1, February 22, July 4, May 30, Thanks­
giving, Labor Day.
v
DISTRICT OF COLUMBIA—January 1, February 22, Decoration Day,
July 4, Labor Day (first Monday in September), Thanksgiving, Christmas,
Inauguration day and every Saturday after 12 o’clock.

MONTANA—Interest is allowed at the rate of 10 per cent, but by special
contract any rate may be provided for, which will be allowed up to judg­
ment; interest on judgment 10 per cent. There is no usury law.

NEW MEXICO—Legal rate Is 6 per cent; parties may contract in writing
for 12 per cent. Usury is punished by fine, and forfeiture of double amount
of interest paid.
NEW YORK—Legal rate is 6 per cent. Demand loans with collateral for
$5,000 and over; any rate contracted for is legal. Penalty for usury is forfeit­
ure of principal and interest, except a state bank forfeits double the amount
of interest. Usurious interest may be recovered if action is brought there­
for with in one year. U sury is a misdemeanor. A corporation cannot in­
terpose the defense of usury.


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Federal Reserve Bank of St. Louis

FLORIDA—January 1, January 19, February 22, April 26, June 3, July 4,
Labor day, December 25, any general election day. Thanksgiving.

1073

BAN K L A W S.
GEORGIA—January 1. January 19 (Lee’s birthday), February 22, April 26,
June 3 (Jeff. Davis’ birthday), July .4, Labor Day, Thanksgiving, Christmas

VERMONT—January 1, February 22, May 30, July 4, August 16, Decem­
ber 25, Thanksgiving, first Monday in September.
VIRGINIA—January 1, February 22, July 4, Labor Day, December 25„
Thanksgiving, F a st day, January 19 and every Saturday after 12 o clock:
noon.
WASHINGTON—January 1, February 12, February 22, Decoration day,
July 4, December 25, Thanksgiving, Labor day, days of General election.
All of these are holidays for judicial business only and then certain ex­
ceptions.
WEST VIRGINIA—January 1. February 22 .July 4, December 25, Thanks­
giving, Labor Day, Election day.
WISCONSIN—January 1, February 22, May 30, July 4, December 25,
Thanksgiving, Labor Day, and every General election day. When any
such day is Sunday the succeeding Monday is a legal holiday.
WYOMING—January 1, February 22, May 30, July 4, Thanksgiving,
December 25, Electionday, Arbor day. Labor day.

IDAHO—January 1 February 22, July 4, December 25, Thanksgiving
general election, any day proclaimed a holiday by President or Governor.,
Possibly Friday »liter May 1 and first Monday in Sedtember.
ILLINOIS—January 1, February 12, February 22, May 30, July 4, Election
day, Labor Day, December 25, Thanksgiving, every Saturday after 12
o’clock noon.
INDIAN TERRITORY—January 1, February 22, May 30, July 4, First
Monday in September, Thanksgiving, Christmas. F a st day.
INDIANA—January 1, February 22, May 30, July 4, Labor Day, December
25, Thanksgiving, national and state election days.
IOWA—January 1, Feb ru ary 22, May 30, July 4, Labor Day, December 25,
day of the general election, Thanksgiving.
KANSAS—May 30, July 4, December 25, January 1, February 12,(Lincoln’s
Birthday), February 22, Labor Day, Public and Thanksgiving.
KENTUCKY—February 22, May 30, July 4, December 25. Thanksgiving.
Decoration Day and Labor Day.

Limitations of Actions.

LOUISIANA—January 1, January 8, February 22. Mardi Gras, in New
Orleans: April 6 (Confederate Decoration Day), July 4. December 25, Good
Friday, Labor Day, November 1, Thanksgiving, and in cities over 100,000
population every half Saturday after 12 o clock noon.
MAINE—Thanksgiving, May 30, July 4, February 22, Labor Day, Christ­
mas, January 1, Fastdays.
MARYLAND—Christmas, January 1, Good Friday, May 30, July 4, Feb­
ruary 22. Labor Day, Thanksgiving, or General and Congressional elec­
tion days, and every Saturday after 12 o’clock in Baltimore and Annapolis
only.
6
MASSACHUSETTS—Thanksgiving, Christmas, February22. July 4, April
19, May 30, F irst Monday in September.
MICHIGAN—January 1, February 22, May 30, July 4, December 25,
Thanksgiving, Labor Day, and Saturday afternoons for acceptance and
payment of notes, etc.
MINNESOTA—Thanksgiving, Good Friday, Labor Day, General elec­
tion day, Christmas, January 1, February 12, February 22, May 30, July 4.
MISSISSIPPI—January 1, February 22, July 4, Labor Day, Thanks­
giving and Christmas.
MISSOURI—January 1, February 22, May 30. July 4, Labor Day, Decem­
ber 25, Thanksgiving, and any general or state election day. In cities hav­
ing over 100,000 population every Saturday after 12 o’clock noon.
MONTANA—January 1. February 22. May 30, July 4, Labor Day, General
election day, December 25, and Thanksgiving. If any of these days fall
on a Sunday the Monday following is the legal holiday.
NEBRASKA—January 1, February 22, April 22, May 30, July 4, December
25, Public fast, Thanksgiving, and Labor Day.
NEVADA—January 1, February 22, May 30, July 4, October 31, December
25, and Thanksgiving day.
NEW HAMPSHIRE—Thanksgiving, F a st Day, Christmas, July 4, Feb­
ruary 22, May 30, Labor Day and biennial election days.
NEW JER SE Y —January 1, February 12, February 22, May 30, July 4,
Labor Day (first Monday of September), Thanksgiving day, December 25,
any General election day for members of the Assembly, and every Satur­ I
day after 12 noon.
NEW MEXICO—January 1, July 4, December 25, and all days for fasting
or thanksgiving.

I
I
NEW YORK—January 1, February 12, February 22, May 30, July 4, Labor I
Day, December 25, Thanksgiving. F a st Day, any General election day,
every Saturday from 12 o'clock at nbon.'
NORTH CAROLINA—January 1, January 19, February 22, May 10, May
20, July 4, December 25, Thanksgiving.
NORTH DAKOTA—January 1, February 12 and 22, July 4, December 25,
May 30, general election day and every day appointed by the President of
the United States or by the Governor for a public fast, Thanksgiving or
holiday.
OHIO—January 1, February 22, May 30, July 4, December 25, Thanksgiv­
ing, Labor Day.
OKLAHOMA TERRITORY—January 1, February 22, May 30, July 4,
Labor Day, Thanksgiving, F a st day, Christmas.
OREGON—January 1. February 22, May 30, July 4. December 25, Labor
Day, Public fast, Thanksgiving, and every General election day.
PENNSYLVANIA—January 1, February 12 (Lincoln’s Birthday), Febru­
ary 22, Good Friday, May 30, Labor Day, December 25, Thanksgiving, and
every Saturday after 12 o’clock noon, and General election day.
RHODE ISLAND—February 22, first Wednesday in April (State election
day) May 30, July 4, first Monday in September (Labor Day), December 25,
Arbor Day, National election day, and such days as the Governor or P res­
ident shall appoint as holidays. Banks close at 12 noon on Saturdays.
SOUTH CAROLINA—Thanksgiving, Labor day, Christmas, and all
General election days, January 1, January 19, February 22, May 10, July 4.
In Charleston every Saturday from 12 o’clock noon.
SOUTH DAKOTA—January 1, February 22, May 30. July 4, Labor Day,
Thanksgiving, Fast day, any General election day, Christmas.
TENNESSEE—January 1, February 22, July 4. December 25, Thanksgiv­
ing, Labor Day, Good Friday, Decoration day, Memorial day and election
days.
■ v.
TEXAS—January 1, February 22, March 2, April 21, July 4, Labor Day
December 25. F a s t day, Thanksgiving, election days.
UTAH—January 1, February 22, April 15, May 30. July 4 and 24, Labor
Day, December 25, and Thanksgiving.


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Federal Reserve Bank of St. Louis

ALABAMA—Judgments, tw enty years; actions founded on any con­
tract or w riting under seal; for the recovery of lands, tenements, heredi­
taments, or any part thereof, actions against officers, ten years; action oit
contracts in writing not under seal; for loans and upon stated or o th er
liauidated accounts; for use and occupation of lands; against- attorney»
at law for failure to pay over money; upon judgments obtained b efore
ju stices of the peace of th is state, six years; for money due by open o r
unliqudated account, three years.
ARIZONA—To recover real estate, three years after cause accrued,
where founded on possession, two years. Three years for debt, wherethe indebtedness is not evidenced by a contract in writing, upon stated oropen accounts. All actions for which no limitation is prescribed, except
to recover real estate, actions to contest wills and to cancel a will f o r
forgerv or fraud, two years after the discovery thereof. Five y ears,
judgment or actions for debt evidenced by, or founded upon contract in
writing, made within this territory. Actions upon a judgment or upon,
an instrument in writing executed without this territory. New acknowl—
edgment or promise must be in writing.
ARKANSAS—Accounts, three years; notes and other written evidence»
of debt, five years; (sealed instruments executed prior to March 29, 1889.
ten years); judgments, ten years. A written acknowledgment of indebted­
ness and promise to pay, or part payment, revives the debt. Lim itation»
of actions for the recovery of real estate, seven years. Where possession,
is held under a tax sale two, and under judicial sale five years, suits fo r
personal property three years. Suits to foreclose mortgages or tru st
deeds are barred, unless broug'bt within a period of limitation fixed by
law for suit on the debt or liability for the security of which they are?
given.
'
CALIFORNIA—Upon a judgment and for mesne profits of real property,
five years; upon any contract, obligation, or liability founded upon an
instrument in writing’, executed in this state, four years; upon a liability
created by statute other than a penalty or forfeiture, for trespass upon
real property; for taking, detaining, or injuring any goods or chattels, in­
cluding actions for the specific recovery of personal property; for relief
On the ground of fraud or mistake, and the cause of action does not
accrue until the discovery of fraud or mistake, three years; upon a con­
tract, obligation or liability not founded upon an instrument of w riting,
or founded upon an instrument of writing executed out of this sta.te, two
years.
COLORADO—All actions on contracts, judgments of courts of record,
for arrears of rent, for waste or trespass on land, replevin, all actions
which would have been on the case at common law, must be commenced
within six years. Actions for a balance upon an open account in six years
after the last item. Limitations apply to set off as well as demand. In.
actions accruing outside the state on contracts, sealed instruments or
judgments more than six years before the commencement of the action,
th e statute of limitation may be pleaded in bar.

CONNECTICUT—A ctions upon w riting under seal, or nonm egotiable
promissory notes, must be brought within seventeen years; upon sim ple
contract w ithin six years. But persons legally incapable of bringing an
action at th e tim e of the accruing of the right of action, may bring th e
same at any time, in th e case of specialties, w ithin four years, and in th e
case of sim ple contracts, within three years, after becoming legally
I capable. Actions founded on exp ress contract (other than actions o f
I book debt), not in w riting must be brought w ithin three years. A ctions
upon negotiable notes, fraudulently obtained, must be brought w ithin
one year after notice of the fraud, or six months after maturity.
,
DELAWARE—No action of trespass, replevin, detinue, no action of
debt not found upon a record or specialty, no action of account, no action,
of assumpsit, nor action on the case can be brought after the expiration,
of three years from the occurring of the cause of action. When the causeof action arises from a promissory note, bill of exchange or acknowl­
edgment of the party of a subsisting demand the action may be com­
menced at any time within six years from the accruing of such action.
All actions for the recovery of real property may be brought within
twenty years from the occurring of such cause of action.
DISTRICT OF COLUMBIA—Actions to recover usurious interests
must be brought within one year; actions upon simple contracts, book
debt or account, detinue and replevin, and for trespass for injuries caused
by negligence, must be brought within three years; actions on con tract»
under seal and on judgments must be brought within twelve years; to
foreclose mortgage or deed of trust within twenty years.
^FLORIDA—F o r the recovery of real estate: Under written instrum ent
or under decree or judgment of competent court, within seven years o f
the commencement of the adverse possession of defendent; without color
of title, within twenty years. Actions other than real actions: Upon a.
judgment or decree of a court of record in this State and an action upon,
any contract, obligation or liability founded upon an instrument of w rit­
ing under seal, within twenty years: upon a judgment or decree of any
court of the United States or of any State or territory of the United States,
or of any foreign country, within seven years.
e
Upon any contract, obligation or liability founded upon an instrum ent
of writing not under seal, within five years; for an article charged in %
store account, within four years: upon a liability created by statute, other
than a penalty or forfeiture, an action for trespass upon real property, an
action for taking, detaining or injuring any goods or chattels, including-

107 4

BAN K L A W S.
actions for the specific recovery of personal property, an action for relief three years from the time of the accrual of the action; if upon an open
on the ground of fraud, the cause of action in such case not to be deemed and running account, three years from date of last item thereof.
,
to have accrued until the discovery by the aggrieved party of the facts
■constituting the fraud, and an action updn a contract, obligation or liabil- j ’ NEBRASKA—Upon a contract not in writing, expressed or implied, four
ity not founded upon an instrument of writing, except an action on an years. Upon a specialty or an agreement, contract or promise in writ«
■open account for goods, w ares and merchandise, within three years ; oh ing, or foreign judgment, five years. Fo r the recovery of the title, or pos­
an open account for goods, ware3 and merchandise sold and delivered., session of land, tenements or hereditaments, including also mortgages,
ten years.
■within two years.
NEVADA—Upon a contract, obligation or liability, founded upon an in­
’ GEORGIA—Suits on bonds and other instruments under seal, should be
brought within twenty years from the accrual of thé right of action. strument in writing, except when a disability prevents the institution of
Suits on promissory notes and other sim ilar contracts in writing must be an action, within six years. An action on an open account far goods, w ares
brought within six years from maturity of such contract- Suits on and merchandise, sold and delivered; for any article charged in a store
cpen accounts, contracts not in writing, should be brought within four account; upon a contract, obligation or liability, not founded upon an in­
strument in writing, within four years.
years.
IDAHO—Six years on actions on judgments and to recover mesne
profits. Five years on action for real estate and on written contracts.
Fo u r years on actions on contracts not in writing and accounts. Three
years on actions for trespass on real property, taking, detaining or injur­
ing goods or chattels, for recovery of personal property, and for relief on
account of fraud or mistake, and for statutory penalty.
ILLINOIS—All actions for the recovery of possession of real property
must be commenced within twenty years. Actions on unwritten contracts,
•express or implied, or on awards of arbitration, or for recovery of dam­
ages for an injury done to property, real or personal, or to recover the
possession of personal property, or for damages for the detention or
eonversion thereof, and in all civil actions not otherwise provided for,
must be commenced within five years next after the cause of action
accrued. Actions on bond, promissory notes, bills of exchange, written
leases, written contracts or other evidences of indebtedness in writing,
m ust be commenced within ten years after the cause of action accrued.
INDIANA—On accounts and contracts not in writing, for use, rents
and profits of real property, and relief against frauds, six years; upon
promissory notes, bills of exchange and other written contracts for the
payment of money, ten years; upon actions not limited by statute, fifteen
years; upon contracts in writing other than those for the payment of
money on judgments of courts of record, and for the recovery of the pos­
session of real estate, twenty years.
INDIAN TERRITORY—All actions of debt founded on contract or lia­
bility not in writing; all actions of account, and the like, founded on any
■contract or liability expressed or implied, three years. Action on prom­
issory notes and other instruments in writing not under Seal, must be
commenced within five years, and not after; actions on bonds, writings
under seal and judgments and decrees, must be commenced within ten
years.
IOWA—On unwritten contracts, those brought for injuries to property
•or for relief on the ground of fraud in cases heretofore solely cognizable
in a court of chancery, and all other actions not otherwise provided for
in this respect, within five years. Those founded on written contracts,
on judgments of any courts except those provided for in the n ext sub­
division, and those brought for the recovery of real property, within ten
years. Those founded on judgments of a court of record, whether of this
state or any of the United States, or of the federal courts of the United
States, within twenty years, after rendition of same, as to domestic judg­
ments no suit can be brought until fifteen years after their rendition and
the limitation is twenty years after the fifteen years.
KANSAS—An action upon any agreement, contract, or promise in
writing, within five years. An action on acon tract not in writing express
■or implied, on a liability created by statute other than a forfeiture o r a
penalty, within three years. An action for trespass upon real property
for taking, detaining or injuring personal property, including replevin, for
injury to the rights of another not hereinafter enumerated, for relief on
the ground of fraud, within two years; in case of fraud, cause of action
does not accrue until discovery of the fraud.
KENTUCKY—On judgments, notes and bonds, fifteen years; contracts
not in writing, five years; for personal injuries, by railroads and other
companies, seduction, slander, etc., one year; the cause of as against
■sureties in written obligations, seven years; accounts between merchant
and merchant, five years; merchant and consumer, two years. F o r the
recovery pf real estate the action is barred ordinarily in fifteen years from
■the accruing of action.
LOUISIANA—Open accounts as prescribed, in three years; closed ac­
knowledged accounts in ten years; notes in five.
MAINE—Actions on judgments of courts of record of the United
•States or of the state, and justices courts in this state, twenty years. Re­
plevin, and other actions on the case, actions of debt on contract or lia­
bility not under seal, except judgments as aforesaid, within six years
Suits on witnessed notes and on contracts under seal twenty years.
MARYLAND—On open accounts, commercial paper, simple contracts
assumpsit replevin, rent in arrears, or trespass suit, must be brought
within three vears; on specialty, bond or judgment, in twelve years.
Limitations do not run in case of debtor residing out of the state; twenty
years possession gives title to real estate.
MASSACHUSETTS—Contracts or liabilities, express or implied, and
not under seal, six years; real actions, those upon an attested note and
personal actions on contracts not limited, twenty years.
MICHIGAN—On actions and notes and other sim ple contracts, six years;
■on sealed instrum ents and judgments, ten years. Revivor—part payment
■or prom ise in w riting to pay.
MINNESOTA—Actions for recovery of real estate, within fifteen years:
o n judgments, within ten years; upon any contract, obligation, or upon a
liability created by statutes, or to enforce a trust or compel an accounting,
w ithin six years.
MISSISSIPPI—Actions on open accounts and other unwritten contracts
m ust be brought within three years; on all other contracts, six years.
Actions on domestic judgments, seven years. A set-o ff held against a
■claim is not barred until the principal debt is barred.
MISSOURI—An action upon any writing, whether sealed or unsealed,
for the payment of money on property; second, actions brought on any
covenant of warranty contained in anv deed of conveyance of land and
upon j udgments within ten years. All actions upon contracts, obligations
o r liabilities, express or implied; an action for trespass upon real estate;
a n action for taking,detaining or injuring any goods or chattels, including
actions for the recovery of specific personal property, within five years
’ MONTANA—Limitations of actions on a judgment and for means pro
fils of realty Within ten years, on claim s evidenced by a, written m3tru
*nent, must be commenced within eight years, i f not a written instrumen


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NEW HAMPSHIRE—Actions for the recovery of real estate, upon notes
secured by mortgage and upon judgments (whether domestic or foreign),
recognizances and contracts under seal, must be brought within tw entears. Actions for trespass to the person and defamatory words must be
rought within two years, and all other personal action within six years
after the cause for action accrues. A debt is revived by any new promise,
verbal or written.
NEW JE R S E Y —Contracts not under seal, six years; real actions and
judgments, twenty years; bonds secured by mortgages and contracts
under seal, sixteen years. Notes not under seal run only six years.
NEW MEXICO—Within six years: upon any bond, promissory note, bill
of exchange or other contract in writing, or of any judgment of a court
not of record. Within four y ears: upon accounts and unwritten contracts,
injuries to property or the conversion thereof, and for relief upon the
ground of fraud, and all other actions not otherwise provided for.
* NEW YORK—Within twenty years: actions for the recovery of real
property or upon j udgment of a court of record, or upon a sealed instrument,
or for dower; within six years: an action upon a contract, express or im­
plied, except a judgment or sealed instrument; an action to recover
upon liability created hy statute, except a penalty or forfeiture; an action
to procure a judgment other than for a sum of money on the ground of
fraud.
NORTH CAROLINA—Actions upon any contract, obligation or liability,
or for trespass upon real property, or for taking, detaining, converting or
injuring any personal property shall be commenced within three years.
In actions on contracts under seal within ten years as against the prin­
cipal debtor, an acknowledgement in writing or payment of interest or
part of principal prevents the bar of the statute.
NORTH DAKOTA—An action upon a judgment or decree of any court in
he United States, or of any state or territory within the United States,
within ten years. Action upon a contract, obligation or liability, express
or implied; actions upon a liability created by statute other than a penalty
or forfeiture; for trespasson real property, within six years; an action for
slander, libel, assault, battery or false imprisonment; actions upon the
statute for a forfeiture or penalty to the people of this state, within two
years.
OHIO—Upon contracts not in writing, express or implied, six years:
specialty or any agreement in writing, fifteen years; real actions, twentyone years: an action may be taken out of the statute by part payment,
acknowledgment, or promise in writing.
OKLAHOMA TERRITORY—Suits to set aside deed must be brought in
fiy.e years, tax deed in two years, other actions for real estate fifteen
years; forcible detainer, or unlawful detainer two years; actions on
agreem ents and contracts in writing, five years; on contracts not in
writing, three years; actions for trespass and frauds, recovery of personal
property, two years; libel slander, assau lt and battery, one year, a suit on
a foreign judgment, one year, on Dond of executor, adm inistrator or sher­
iff, one year.
OREGON—On contracts not under seal, express or implied, six years:
on judgments or decrees of any court and sealed instruments, ten years:
recovery of real property, ten years; a part payment or a new promise in
writing revives the debt.
'PENNSYLVANIA—Book accounts, debts, notes, and contracts not
under seal expire by limitation in six years; contracts under seal, in
twenty-one years. •
RHODE ISLAND—Accounts, six years; simple promissory notes, six
years; sealed instruments and judgments, twenty years. An oral promise
and pa rtial payment revive a debt.
SOUTH CAROLINA—Actions upon a judgment or decree of any court of
the United States or of any state or territory, or upon a sealed instrument
other than sealed notes and personal bonds for payment of money only,
which are not secured ,by mortgage, must be brought within twenty years.
An action upon a contract, obligation or liability, express or implied, not
under seal, and upon sealed notes or personal bonds for the payment of
money only, which are not secured by mortgage, within six years.
SOUTH DAKOTA—Action must be commenced on judgments within ten
years; on contracts, express or implied, six years from the time a cause
of action accrued thereon; liability created by statute, six years; upon
real property, twenty years. Replevin and conversion, six years.
TENNESSEE—Upon bonds, notes, accounts and contracts generally,
six years; judgments or decrees of courts of record, and other cases not
expressly provided for, ten years.
TEXAS—Trespass, conversion, debt, where the indebtedness is not
evidenced by a contract in writing; statedor open account other than such
mutual and current accounts as concern the trade of merchandise, be­
tween merchant or merchants, their factors or agencs, two years. Debt
when evidenced by or founded upon any contract in writing; for penalty or
damages on the penal clause of any bond to convey real estate; action by
one partner against his co-partner for the settlement of partnership ac­
counts, or upon mutual and current accounts concerning merchandise,
between m erchant or merchants, their factors or agents; the cause of ac­
tion shall be deemed to have accrued on the cessation of the dealings in
which they were interested together, four years.
^ UTAH—Within eight years: on a judgment or decree rendered in any
court of the United States, or of any state or territory within the United
States; for mesne rents and profits of real property. Within six years:
on a contract, obligation, or liability founded on an instrument or writing,
except judgments of a court of the United States, or of a state or territory
within the United States. Within four years: on a contract, obligation, or
liability not founded on an instrument of writing, open account for goods,
etc. No limitation against actions to recover money or other property
deposited with banks, bankers, trust company, savings or loan society

1075

BAN K L A W S.
VERMONT—Actions for the recovery of lands or the possessions, must
be begun within fifteen, years after the cause of action first accrues. Ac­
tions of covenant other than the covenants of warranty and seisin con­
tained m deeds of land shall he brought within eight years. Actions of
debt on judgments shall be brought within eight years after the rendition
of such judgment. Actions on contracts, accounts, trespass and replevin,
six years. Action to recover on a note must be brought within six years
after becoming due, unless the note is witnessed, in which case action
may be begun at any time within fourteen years.
VIRGINIA—Upon any contract by writing under seal, within ten vears
upon an award, or upon a contract by writing, signed by the party'to be
charged thereby, or by his agent, but not under seal, within five years; if
it be upon any oral contract, express or implied, for articles charged in a
store account, although such articles be sold on a written order, within
two years; and if it be on any other contract, within three years.

sealf ö c e n f MPSHIRE—P ro te st50cents, demand 50 cents, certificate and
NEW JE R S E Y —Protest $1.30 under $100; $1.50 over $100.
NEW MEXICO—Protest $2, and 25 cents for each notice.
NEW YORK—Protest 75 cents, and 10 cents for each notice.
NORTH CAROLINA—Protest $1, and 25 cents each notice.
t , c S ^ e Hn t r K° TA- Pr0teSt

rec°rding 50 cents, seal 25 cents, no-

OHIO—Protest $1 and cos'ts.
OKLAHOMA TERRITORY—Protest 50 cents, notice 10 cents and post-

. ..yy^SHI^GTON—Upon foreign judgments a contract in writing, or lia­
bility, express or implied, arising out of a written agreement; or for the
rents and profits, or for the use and occupation of real estate, must each
be commenced Within six years. Actions on a contract, express or imnot in writing, for relief on the ground of fraud, must be commenced
within three years; for recovery of real estate the action must be
commenced within seven years, where party in possession has color of
title, otherwise ten years. Actions against executor or administrator for
mismanagement of estate must be commenced within one year from time
01 . final settlement. Claims disallowed by executor or administrator,
within three months of notice.

an d p ^ siag e^ ^ ^ 1^ - ^Protest$1.50,record 50 cents, each notice 25 cents-

, WEST VIRGINIA—Partnership accounts, and accounts concerning
trade between merchants, five years from last mutual dealings; contracts
in writing, whether under seal or not, ten years; other contracts five years.

notices. Recording $ 1.

WISCONSIN—Within twenty years: actions upon any judgment of a
court of record sitting without this state, and actions upon sealed instru­
ments accruing within this state not hereafter mentioned. Within ten
years; actions upon sealed instruments accruing without this state, ex­
cepting those hereinafter mentioned. Within six years, actions upon
judgments of courts not of record, upon any contract for payment of
money, sealed or unsealed, issued by any town, county, city, village or
school district; upon any other contract, obligation or liability created by
statute excepting penalties and forfeitures, where no other limitation is
provided by law. No evidences of debt issued by any bank are barred by
statute.
J
WYOMING—Fo r the recovery of title, or possession of real estate, ten
years; upon a specialy, or any agreement, contract or promise in writing,
five years. But on all foreign claims, judgments or contracts, express or
implied, contracted or incurred before the debtor becomes a resident of
this state, within two years from the time the debtor shall have estab­
lished his residence within this state. Upon contracts not in writing, ex­
pressed or implied, within eight years.

OREGON—Protest $3
PENNSYLVANIA—Protest $1.50,
RHODE ISLAND—Protest $ 1, each additional endorsement 25 cents,
SOUTH CAROLINA—Protest $2.10.

TEXAS—Protest $2.50, and 50 cents for each notice.
UTAH—Protest $1.50, and 35 cents for each notice.
VERMONT—Protest $1, and postage on notices.

.

VIRGINIA—P rotest $1, seal $1, and for each notice 10 cents.
En W ASH IN GTON-Protestjl, noting 50 cents, demand 50 cents, recording?
50 cents, notices of protest 25 cents. No fees allowed on domestic paper,
ViBSiNIA—Protest and two notices $1, and 10 cents for each,
additional notice and postage.
■
WISCONSIN—Protest $1, and 25 cents for each notice and postage,
WYOMING Protest $1, seal 50 cents, and for each notice 50 cents.

Notes andBills of Exchange.
Notaries Fees for Protest—
ALABAMA—Protest $1.50, and 50 cents each endorser.
ARIZONA—Protest $2.50, and 75 cents each notice.
ARKANSAS—Protest $1.65; 50 cents each notice.
CALIFORNIA—Protest $2, serving notice $1, recording protest $1.
COLORADO—Protest $1.75, and for notices 50 cents each.
CONNECTICUT—Protest $1 and 25 cents for each notice, also postage
and travel.
DELAWARE—Protest $1.25. Exemplication 25 cents, and 20 cents each
notice.
DISTRICT OF COLUMBIA—Protest $1.75, and 10 cents for each notice
FLORIDA—Protest $2.
GEORGiA—On amounts of $200 or less, 50 cents, $200 and not over $1000
one dollar, $1000 and not over $3000, two dollars, over $3000, three dollars
IDAHO—Protest $3, recording 50 cents, and $1 for each notice.
ILLINOIS—Protest $1.50, with 25 cents per notice additional.
INDIANA—Protest $1.25, and 25 cents for each notice.
INDIAN TERRITORY—Protest 75 cents, noting 50 cents, registration (0
cents, certificates 50 cents, each notice 50 cents.
IOWA—Protest $1.75 and additional 25 cents for each notice.
KANSAS—Protest and record of same 25 cents, each notice of probate
10 cents.
KENTUCKY- -Protest $1.25, and 25 cents for each endorser.
LOUISIANA—Protest $2.50 to $3.50.
MAINIu -Protest $1.50.
MARYLAND—Protest $2, plus postage and costs; for presentation and
ema.ud $ 1.
MASSACHUSETTS—Protest $1.50 under $500; $2 on $500 and over.
liHCHIGAN—Protest 50 cents, each notice 25 cents and postage.
MINNESOTA—Protest $1, each notice 25 cents, record 10 cents per folio
MISSISSIPPI—Protest $1.50.
MISSOURI—Protest $1.85, and 15 cents for each notice, milage 8 cents pe
mile.
MONTANA—Protest $1, drawing and serving notice $1, recording notice
$1 00.
NEBRASKA—Protest $1, copy 50 cents, each notice 25 cents id postage.
NEVADA—Protest $1.50 and 75 cents for each notice.


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Federal Reserve Bank of St. Louis

Payable in money at a bank or a certain
therein designated, and bills of exchange are governed
i ^aw-E
other instruments payable at a bank, o r
other designated place of payment, are governed by the com mercial law
as to days of grace, protest and notice. Three days of grace allowed on
commercial paper, and on sight bills. If last day of grace falls on a holi­
day, paperis due the next business day. No acceptance valid unless in
writing. Damages on protest for non-acceptance or non-pavment, 5 p er
cent. This covers all charges except interest and protest fees.
ARIZONA—A ll notes in writing shall be due and payable as therein
expressed, and shall have the same effect and be negotiable in like man­
ner as inland bills of exchange. The payees and indorsees of every such,
note payable to them or their order, and the holders of every such
note payable, to bearer, may maintain action for the sums of m onev
therein mentioned against the makers and indorsers of the sam e resp ec­
tively in like manner as in eases of inland bills of exchange, and not oth­
erwise. To charge a person within the territory as an acceptor on a bill
of exchange, his acceptance must be in writing, signed by himself or h is
lawful agent. Three days of grace shall be allowed on all bills of e x ­
change or promissory notes assignable or negotiable by law. Paper ma­
turing on a holiday becomes due the next business day. Damages for pro­
tested bills, 10 per cent.
°
^
ARKANSA8—The general rules of com mercial law prevail except
contracts for sale of patent rights or patent territory, such notes are sub­
ject to all defences. Three days of grace are allowed, except on demand
drafts. Paper due on holidays becomes payable on the preceding day.
Notice given of the dishonor of such paper the day after a holiday is
valid. Protests are in common form and made by notary public. Accept­
ances thereof must be in writing. Any person upon whom a bill of ex­
change is drawn and to whom the same maybe delivered for accep tan ce,
who shall destroy such bill, or refuse within twentv-four hours such delivery, or within such time as the holder may allow to return the bill ac­
cepted or unaccepted to the holder, is deemed to have accepted the sam e.
Damages two per cent on domestic bills, and on foreign, if payable i a
certain named states, 4 per cent; other points in United States 5 per cent.
Outside United States 10 per cent. Bills of exchange protested for non- pay­
ment or non-acceptance bear interest at the rate of 10 per cent per annum.
CALIFOItNIA—Bills of exchange and promissory notes, bank notes,
checks, bonds, and certificates 01 deposit are negotiable instruments*.
Paper maturing on a holiday becomes payable the business day th ere­
after-. Days of grace not allowed. Acceptances must be in writing by th e
drawee or by any acceptor for honor, and may be made by the accentorwriting m s name across the face of the bill with or without other words;
lh e acceptance of a bill of exchange by a separate instrument binds th e
acceptor to one who, upon the faith thereof, has the bill for value or oth er
good consideration. The protest of a notary, under his hand and official
seal, is prima facie evidence of the facts contained therein. A bill of ex­
change, if accepted with the consent of the owner by a person other than
the drawee, or an acceptor for honor, becomes, in effect, the prom issory
note of such person, and a._ prior parties thereto are exonerated. If a
promissory note, payable on demand or at sight, without interest, is n o t
duiy presented for payment witnin six months from its date, the indorsers,
thereof are exonerated, unless sue d presentation is excused.
COLORADO—Bills of exchange, notes, etc., are assignable by indorse­
ment, and the assignee may maintain the same kind of an action against
the m aker as could have the payee. A non-negotiable note cannot be
made. No m aker of any note, bond, etc., shall be allowed to allege pay­
ment to the payee made after notice of assignment as a defense against
the assignee. No days of grace allowed. Paper maturing on Ao_.da^ i s
payable the day previous. Protest necessary on bills of exchange drawn,
in this state upon non-residents. Damages for non-acceptance or non­
payment, 10 per cent.

1 07 6

BAN K L A W S.
CONNECTICUT—Prom issory notes made payable to bearer or order
fo r the payment of money only, are negotiable. All days of grace are
abolished. Paper maturing on a holiday becomes due the day followiAg.
In case a holiday falls on Sunday, when the following Monday is deemed
«udh holiday, notes, drafts, bills of exchange, etc., shall be presentable
•on the following Tuesday. Banking hours end at 12 o’clock on Saturdays
and for the acceptance and maturity of commercial paper Saturday is
treated as a holiday, but this does not apply to checks and demand drafts
presented before noon acceptance of bills of exchange must be in writing,
signed by acceptor or by his lawful agent. A negotiable promissory note
■payable on demand is regarded as dishonored if unpaid four months after
•«ate. Demand and reasonable notice are necessary to bind indorsers.
Damages for protested bills, foreign, are from 2 to 8 per cent, according
to location of state where protested. Protests of inland bills of exchange
and promissory notes, protested without this state, shall be prima facie
■evidence of the facts therein stated.
DELAW ARE—All checks, notes, draxts, or foreign or inland bilLi of
•exchange, payable without time or at sight, are due and payable on
1 resentation without grace. Notes due on a holiday must be paid the
t usiness day next preceding. To hold indorser note must be duly
presented, and notice of dishonor given to indorser.
DISTRICT OP COLUMBIA—P rom issory notes may be assigned or en­
dorsed and actions maintained thereon as on inland bills of exchange,
plaintiff or defendant recovering costs. Palling due on Sunday or legal
holiday, mature on the day after. T he law m erchant is in force with re­
gard to presentation, acceptance, indorsement and protest. Days of grace
abolished. Where money is payable by two or more persons jointly or
severally, as by joint covenantors, m akers, drawers or indorsers, all or
any of the parties by whom the money is payable may be included in the
sam e declaration, at the option of th e plaintiff. Defendant may move
th e court to limit plaintiff’s recovery of costs to those of a single action,
when he has prosecuted separate actions against several defendants who
anight have been joined in one action or process. See Act of Congress re­
lating to negotiable instruments in the District of Columbia. Approved
J a n . 12, 1899.
FLORIDA—Notes and bills of exchange are subject to a general statute
passed in 1897 known as “ Negotiable Instruments Law .
No days of
race are allowed. When the day of maturity falls upon Sunday or a
oliday the instrument is payable on the next succeeding business day.
Instrum ents falling due on Saturday are to be presented for payment on
■the next succeeding business day, except that instruments payable on
demand m ay. at the option of the holder, be presented for payment before
tw elve o’clock noon on Saturday, when that entire day is not a holiday.
M aker and endorser cannot be sued in same action.

f

GEORGIA—Bills of exchange and promissory notes made for the pur­
pose of negotiation, or intended to be negotiated at any chartered bank,
and which are not paid at maturity, must be protested in order to bind
th e indorser. Notice of non-payment and of protest, or non-payment, or
non-acceptance, must be given to the indorser within a reasonable time,
■either personally or by post. It will not be necessary to protest in order
to bind the indorser, except in the following cases: W here the paper is
made payable on its face, at a bank or banker’s office. Where it is dis­
counted at a bank or banker’s office. Where it is left at a bank or a banker’s
•office for collection. No days of grace are allowed on sight papers. When
paper matures on a holiday it is payable the day before. Whenever any
•such holidays shall fall upon Sunday the Monday next following shall be
«eemed a legal holiday and papers due on such Sunday shall be payable
•on Saturday next preceding and papers otherwise payable on such'Mon« a y shall be payable on the Tuesday next thereafter. When either of the
« a y s shall fall on Saturday the papers due on Sunday following shall be
payable on Monday next succeeding. When such days fall on Monday
papers otherwise payable on that day shall be payable the Tuesday next
succeeding. Accommodation indorsers, sureties and indorsers, m ay be
sued in the same county and in the same action with the maker, drawer
o r acceptor. Bills of exchange must be accepted in writing to bind ac­
ceptor. In this state a contract to pay attorney’s fees cannot be coliected
unless a defense is filed and not sustained.
IDAHO—Commercial paper becomes negotiable by being executed and
«eliyered. and is made negotiable by indorsement, what is called “in
Plank. ’ The protest of a notary, under his hand and official seal, of a bill
o f exchange or promissory note, for non-acceptance or non-payment,
stating the presentment for acceptance or payment and the non-accept­
an ce or non-payment thereof, the service of and mode of giving notice to
parties, and the reputed residence of the parties, is made by our statute
prim a facie evidence of the facts contained therein. Damages for pro­
tested bills range from 2 to 15 per cent. Days of grace are not allowed on
-either bills or note s. Paper maturing on a holiday becomes payable the
n e x t business day.
ILLINOIS—Any note, bond, bill or other instrument in writing made
payable to any person named as payee therein, shall be assignable by in­
dorsement thereon, under the hand of such person, and of his assignees,
in the same manner as the bills of exchanges are, so as to absolut i\y
transfer and vest the property thereof m each and every assignee successi vely. It is essential to the negotiability of promissory notes, bills, bonds
and other instruments in writing for the payment of money or other
articles of personal property by indorsement, that they be payable abso­
lutely and unconditionally—not depending on any contingency, either in
Tegard to the use of the fund out of which payment is to be made, or as to
ib e parties by whom or to whom the payment is to be made. Anynote.bond,
pill or other instrument in writing made payable to the bearer, may be
transferred by delivery thereof, and an action may be maintained thereon
an the name of the holder thereof; every indorser of such instrument shall
be held as a guarantor of payment, unless otherwise expressed in the en«orsem ent. Persons severally liable upon bills of exchange or notes pay­
able in money may all or any of them severally be included in the same
■suit, and judgment shall be without prejudice to the several defendants
am ong themselves. Whenever any bill of exchange drawn or indorsed
-within this state, and payable without the United States, is duly protested,
th e draw er or indorser thereof shall pay said bill, with legal interest,
tro m ÎP ? time such bill ought to have been paid, and 10 per cent damages
an addition, together with the costs and charges of protest. If any bill of
exchan ge, drawn upon any person or body politic or corporate, out of this
state, but within the United States, for the payment of money, shall be
duly presented for acceptance or payment, and protested, it shall be pay­
able, with legal interest from the time such bill ought to have been paid,
until paid together with costs and charges of protest. All days of grace
a r e abolished. Notes maturing on holidays are payable thé day following.
INDIANA—Prom issory notes payable to order or bearer at a bank m
th is state, and bills of exchange, are governed by the law-merchant.
Prom issory notes not payable at a bank are subject to any set off maker
m ay have against payee, or any subsequent holder, accruing before notice
of assignment. On these, maker must be exhausted before endorser can


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oesued. Protest is not-neeessary to hold endorsers of such notes» but to
hold them maker must be su?d at first term of court after maturity, unless
it can be shown that he was insolvent at the time of such maturity, Three
days of grace are allowed on all negotiable promissory notes and all bills
Of exchange payable within the state, whether sight or time bills. Paper
maturing on a holiday becomes payable on the day preceding. Damages
fo£rRrot,£stTTOILbills upon any person at any place out of this state, but
within the United States, 5 per cent; on bills drawn upon any person at any
place without the United States, 10 per cent.
INDIAN TERRITORY—Bills and notes are governed by the law-mer­
chant. The general rules of commercial law on these subjects prevail.
Notes to be negotiable must be expressed to be for value received. A
stipulation for fixed attorneys fees does not render paper non-negotiable;
but are not recoverable. Paper maturing on a holiday becomes payable
the day before. Protests are thS common form, and are made by notaries
public. Acceptances must be made in writing. If the drawe» destroy or
retain the bill, he is taken as having accepted it. The statutes fix in detail
the damages to be awarded the holder of a bill in case of non-appearance
or non-payment. Protested bills bear interest at the rate of 10 p ercent
per annum.
IOWA—Grace is not allowed on notes or bills of exchange or drafts
Paper falling due on holidays is payable the succeeding day. Damages
allowed on protested foreign but not inland bills 3 to 5 per cent. To hold
indorser, note must be duly presented, payment refused and indorsed
notified. Open accounts are assignable and assiguee will have right of
action in his own name, but subject to the same defences and counter
claims as would be available against assignor, before notice of such
assignment is given in writing by the assignee to the debtor. Defenses
to non-negotiable paper and accounts accrued after notice in writing of
assignment to maker invalid as against assignee. Providing that if
negotiable paper be obtained by fraud, the holder thereof shall recover no
greater sum than he paid with interest and costs.
KANSAS—All bonds, notes and bills of exchange, foreign and inland
drawn for any sum or sums of money, and made payable to any person or
order, or to any person or bearer shall be negotiable by indorsement
thereon, if payable to order, and by delivery if payable to bearer, so as to
absolutely transfer and vest the property thereof in each and everv in­
dorsee or holder, successively. No person or persons, bank or body
corporate, residing or doing business within the limits of this state can be
held liable for protest damages on any bond, note, or bill, protested for
non-acceptance or non-payment. All bonds, notes, and bills of exchange
except bank checks, and sight drafts made negotiable, shall be entitled to
three days of grace. Paper maturing on a holiday becomes due on the
n^ker^or indorser10*1 may 116 *)rouS'llt jointly or severally, against drawer,
KENTUCKY—All bills of exchange are negotiable, but notes are only
made so when payable and negotiable at a bank and discounted to a
bank incorporated in this State.” Non-negotiable instruments are
assignable so as to vest a right of action in the assignee, bm anv
defense good against the payee and arising before notice of the assignSieí?t -íl go,od against the assignee. Indorsers of non-negotiable notes can
be held only after suit and return of “ no property ” against the maker
commenced and prosecuted with due diligence. Three days of grace are
allowed by custom. Paper maturing on a holiday becomes due the dav
preceding. Protest should be made upon the last day of grace It is
essential to a recovery against indorsers on foreign bills of negotiable
notes placed in their rank, but an inland bill is not required .by law to be
protested, nor is a certificate of a notary of such protest evidence in itself
of aisnonor.
LOOTSIA-NA—Whenever a promissory lióte is indorsed for the benefit
of the maker thereof» if caused by the maker to be discounted in any bank
in operation within the state, or if the maker obtain any money in consid­
eraro n of said note from any person, the indorser shall be bound to the
holders of the nute as if it had been discounted or negotiated for his own
use or benefit. Bills and notes, or other obligations for the payment of
money, to be evidence of a debt, must express the whole sum in writing.
Bills and notes are entitled to three days grace except bills at sight or
order for money on demand, which are allowed no grace. Paper falling
due on holidays is payable the business day following.
„
paper, presumed to be taken in payment of debt or
Aability for which it is given. On notes payable at fixed place on demand
at or after a. time certain, no recovery unless demand proved there before
suit: usual demand and notice to charge indorser; notarial protest proves
it: but one indorsing note at inception before payee does is a maker.
W aiver, of demand and notice, acceptance of bill, draft or order must be
in writing ana signed. Recovery from indorser without suing maker.
Three days of grace on sight drafts, none on notes and bills. Paper maturing on a holiday is considered due and payable the day preceding, ex­
cept that if holiday is Monday and it is the third day of grace, or is
Saturday and the following Sunday is the third day of grace, or is Sunday
and it is the second day of grace, four days are allowed.
MARYLAND—The m aker or endorser of a promissory note or the
acceptor or endorser of a bill of exchange will be heldliable to an inno­
cent holder who takes the same before maturity for value and in good
faith, even though the note was made or the bill accepted without con­
sideration. No grace allowed. A protest duly made by a notary public of
a note or a bill is prima facie evidence of the facts pertaining thereto, and
as stated therein. Damages recoverable, in addition to principal, interest
and costs on protested bills, if drawn on any other state or territory 8 per
cent; foreign country, 15 per cent. Paper maturing on a holiday becomes
due on the next succeeding business day.
MASSACHUSETTS—Grace is not allowed on notes or bills oi ex­
change, Three days of grace is allowed upon a draft or bill of exchange
made payable at sight unless otherwise stipulated. Paper maturing on a
holiday, becomes due on the secular day next preceding. All bills cf exchange, drafts and promissory notes except those payable on demand
which would otherwise be payable on any Saturdav not a holiday accordmg to law, shall be deemed to be and shall be payable on the next sue.
ceeding secular or business day. The drawee of a bill or draft requiring
acceptance has till 2 o’clock p. m. on the next business day after present­
ment to decide whether he will accent. Orders and drafts for money pay­
able within this state, in which no time of payment is expressed, shall be
deemed to be payable on demand. All persons becoming parties to
promissory notes payable on time by a signature in blank on the back
thereof, shall be entitled to notice of the non-payment thereof the same
as indorsers. Checks drawn on a bank may be paid notwithstanding the
death of drawer, if presented within ten days after date, and a savings
bank order if presented within thirty days after date. To charge indorsers
of a promissory note payable on demand, a demand made at the expira­
tion of sixty days from date thereof, without grace, or at any time within
that term is necessary to fix the liability of indorser, and shall be deemed
to be made within a reasonable time. No presentmefit of such note to the
promisSor and demand of payment will charge the indorser, unless made

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BAN K L A W S.
on or before the last day of said terra of sixty days. The “negotiable in­
struments law” as adopted in Ne^' York and several other states is in
force in this state.
MICHIGAN—On all bills of exchange and negotiable notes and accept­
ances payable at sight or at a future day within this state, three days of
grace are allowed, and it is not necessary to protest the same for non-ac­
ceptance; but such bills of exchange and checks should be presented
within a reasonable time for payments to hold drawers or indorsers. P a­
per falling due on holidays is payable the next business day succeeding.
In all other cases demand, protest for non-payment, and the sending no­
tices of protest to the indorser, at his reputed place of business or resi­
dence, are necessary to bind the indorser. Indorsers other than payees to
paper, being such before indorsement by payee or at its inception, are
held as joint makers, and not entitled to notice of non-payment.
MINNESOTA—On all bills of exchange payable at sight, or at a
future day certain, and all negotiable promissory notes, orders, and
drafts payable at a future day certain, within this state, in which there is
no express stipulation to the contrary, grace is allowed of three days.
Paper falling due on a holiday is payable the preceding business day.
Notice of protest must be given immediately after protest is made by
mailing the same to each party protested against at his reputed place of
residence. The notary certifies to the giving of the notice upon the instru­
ment of protest, and records the latter in his register. Both register
and certificate aré prima facie evidence. Damages 5 per cent and legal
interest on domestic and 10 per cent and, legal interest on foreign paper
protested. Notes obtained by fraudulent representation without neglig­
ence on part of maker void.

NEW MEXICO—In absence of any designated place of payment the
common law prevails. Three days of grace are allowed on promissory
notes. Any promissory note, due and payable on any holiday, shall be
construed to fall due and become payable on the next business day thereNEW YORK—Foreign bills of exchange, drafts, checks, and promissory notes payable to bearer, the m aker or his order, or the order of any
third party, are negotiable. Bills of exchange or drafts drawn payable at
sight at any place within the state, are made due at presentation, without
grace. Checks, bills of exchange, or drafts, drawn on banks or bankers,
and which are payable on a specified day, or in any number of days after
the date or sight thereof, are payable without grace, and it is not necessary to protest the same for non-acceptance. All bills, checks, notes, etc,,
falling due on a holiday are deemed payable the business day succeeding.
If not paid when due they may be protested, and the certificate of protest
is prima facie evidence of presentation and non-payment. To charge in­
dorser, notice of non-payment must at once be given to him.

NORTH CAi DLINA—All bills and notes bear interest from m aturity,
nnless otherwi je stipulated. An indorser of a note is deemed a surety,
and no demand on the m aker is necessary before commencing suit
against surety or indorser; but this does not apply to bills of exchange.
Grace is allowed on all time and sight drafts. Where a bill is drawn
or indorsed in this State upon any person or corporatioin any other
of the United States or any of the Territories and is protested, it shall
bear damages; viz., three per cent of the principal sum. A bill or
note may be protested by a notary public, justice of the peace or clerk of a
court of record. Bills of exchange and promissory notes are negotiable;
and all notes and bonds with more than one obliger are by statute joint
and several. To charge indorser of bill of exchange, notice of non-pay­
MISSISSIPPI—Domestic bills of exchange drawn and payable in this1 ment must be given him. Paper falling due on a holiday or Sunday is
state for less than $20 are not required to be protested, but demand and payable the day before except when a holiday occurs on Monday when
notice are necessary to fix liability of parties secondarily liable. Notes It is payable the day after.
and foreign bills are protestable. All notes, bills, drafts, etc., are assign­
able, and suit may be maintained in the name of the assignee; but defend­
NORTH DAKOTA—Bills of exchange, promissory notes, bank notes,
ant can make all defenses which he had against payee before notice of checks, bonds and certificates of deposit are negotiable instruments.
assignment unless payable to “ bearer,” in which case the title passes by When no place of payment is specified, they are payable at the residence
mere delivery, and the holder may sue in his own name as bearer, and or place of business, or wherever m aker may be found. Bill or note
the statute allowing defenses by the defendant does not apply. Foreign maturing on a holiday becomes due on next business day. No days of
bills of exchange payable out of the United States, protested for non- grace in this state.
acceptance or non-payment, draw 10 percent damages and legal interest;
bills drawn payable in the United States, protested for non-acceptance,
OHIO—Bonds, notes and bills payable at ! day certain after date, or
draw damages at the rate of 5 per cent, besides legai interest. Notes, after sight when made payable to order or bearer are negotiable by in­
bills, etc., and sight drafts are entitled to the usual days of grace. Pape
dorsement thereon, and vest the title thereof in indorsee. They need not
maturing on a holiday oecomes payable next day preceding. Domestic be payable at a bank, or any particular place, to be negotiable. No grace
bills of exchange drawn on and payable in this state for $20 or upward is allowed on commercial paper drawn or accepted on or after September
must be protested for non-acceptance, or, if accepted for non-payment, 1,1896. Bill or note maturing on a holiday becomes due the succeeding
they are governed by the same customs and usages as foreign bills of business day.
exchange, but no damage accrues.
r
v: , ,
i —o i l is oi excnange, promissory notes, bank
MISSOURI—The acceptance of a bill of exchange must be in writngi notes, checks, bonds and certificates of deposit, if without date, are pay­
signed by the acceptor. A promise in writing to accept a bill before it is able immediately, and if without specified place of payment are payable
drawn has the effect of an actual acceptance in favor of every person who where maker may be found. Three days of grace allowed on all bills of
on the faith thereof shall pay value for the bill. Every person on whom a exchaifge, or drafts payable at sight. Paper maturing on a holiday
bill is drawn and to whom the same shall be delivered for acceptance, becomes due on the next business day. Protest, presentment, and notice
who shall destroy it or refuse within twenty-four hours to return it, shall may be waived. W aiver of protest waives presentment and notice.
be deemed to have accepted it. Bills drawn or negotiated within this
®“ñí?. anr , Protested draw 4 per cent damages, if drawn on any person
OREGON—All negotiable instruments are com mercial paper. They
within this state: if on any person out of this state, but Within the United are not required to be paid at any particular place unless a place of pay­
States, 10 per cent; if on any person at a place without the United States
ment is specified in the instrument. No days of grace in this State.
20 per cent. Such damages are only recoverable by the holder of a bilí Negotiable instruments falling due on a holiday become due on the next
who shall have acquired the same for a valuable consideration. No business day. No person can be charged as an acceptor of a bill of
damages are allowed if the bill be paid within twenty days after de­ exchange unless the acceptance be in writing, signed by himself or his
mand. Promissory notes are governed by the same rule of damages
lawful agent. Indorsers, if properly charged by protest, are liable as
Three days of grace is allowed on all bills and notes except those payable long as the maker. Damages allowed on protested bills of exchange:
at sight or demand. Paper falling due on a holiday shall be considered domestic, five per cent: foreign, ten per cent. Judgment notes not
payable on the next succeeding day unless such succeeding day is a holi­ allowed.
day, in which, case they fall due the day previous.
PENNSYLVANIA—Bills of exchange, checks, promissory notes and
MONTANA—Notes and bills of exchange are negotiable obligations orders drawn or indorsed to order or bearer are negotiable. Days of
collected by and in the name of the holder and owners thereof. The grace are not allowed. A clause in the bill of exchange, draft, note,
holder may sue all the parties or any of them at his option. A negotiable etc., providing for the payment of attorney’s commissions, cost, etc..
instrument may contain any pledge or collateral security with authority destroy s its negotiability. All bills of exchange, drafts, checks, promis­
to dispose thereof. It may give to the payee the option between the pay­ sory notes, etc., otherwise presentable for acceptance or payment on any
ment of the sum specified therein and the performance of another actíbut holiday are presentable for acceptance or payment on the secular
as to tne latter the instrument is not within the provisions of the title or business day next succeeding. Paper cannot be protested on Saturday.
governing negotiable instrument. It may be with or without date, and
RHODE ISLAND—No days of grace are allowed on notes or bills of
with or without designation of the time or place of payment, and any date
m ay be inserted by its. maker whether past, present or future, and the exchange dated on or after July 1, 1898, unless expressly provided for
instrument is not invalidated by his death or incapacity at the time of the therein. Bills of exchange, notes or drafts falling due on a holiday are
(
Put the person to whom it is payable must be ascertainable payable on the secular day next following such holiday.
a t the time the instrument is made, and it must be payable in money and
SOUTH CAROLINA—Bills of exchange and promissory notes, drawn
without any condition not certain of fulfillment. It must not contain anv
other contract than those above mentioned, so that a contract for in the usual form, are recognized as com mercial paper and if drawn
attorney s fees renders it non-negotiable, Grace is not allowed. Paper payable at sight are entitled to days of grace. Paper falling due on legal
maturing on a log-il holiday shall be considered as due and payable the holiday to be paid the next day thereafter. No protest is needed on an
day following. The protest of a notary public under his hand and seal inland bill for less than $100. On all bills of exchange drawn on persons
resident within the United States, and without this State, and returned
is prima facie evidence of the facts contained therein.
protested, the damages are ten per cent, and any other part of North
NEBRASKA—Notes and bills of exchange and sight drafts are entitled America or in the W est India Islands, twelve and one-half per cent. On
to three days grace. Bank checks and instruments payable on demand all bills drawn on persons in any other part of the world the damages are
are not entitled to grace. When holiday occurs on Monday, notes, etc., 15 per cent.
falling due. on that day are payable the day thereafter, all other business
SOUTH DAKOTA—On all bills of exchange or sight drafts, whether
contracts, etc., remain unaffected by holidays. Foreign bills of exchange’
notes and drafts must be protested, and protest fees can be recovered. foreign or domestic, and on all promissory notes, bills of exchange and
drafts, on the face of which time is specified, and notes on demand for payDamages on domestic bills, 6 per cent, and on foreign bills, 12 per cent,
ment of same. Grace is allowed. Acceptances must "be in writing: by the
drawee or an acceptor for honor. Apparent maturity of a non-interest
NEVADA—Commercial paper includes promises to pay to order or bearing sight or demand note is ten days after date, in addition to the time
Dearer, without conditions, for a sum certain and at a time certain. No required for transmission; on interest-bearing notes, one year from date
requirement respecting place of nayment, but, if place of payment is Bills and notes falling due on a holiday are deemed due ana payable on the
named, demand should be made before protest at place named. Protest following day. To hold indorser, the instrument must be presented on the
and notice will hold the indorser, and the general statute of limitation day of maturity, and notice of dishonor given. Damages are allowed in
s ix years, and on open account, four years, is the limitation of the right of favor of holders for value on bills of exchange drawn or negotiated within
action. Fifteen per cent damages are allowed on domestic, and twenty the State and protested for non-acceptance or non-payment. Collection
Per cent on foreign bills protested. Three days grace is allowed on notes by Banks through regular correspondents considered due diligence.
and bills of exchange, but not on sight drafts. Paper maturing on a holi­
day is due and payable on the preceding day.
TENNESSEE—A verbal acceptance of bill of exchange communicated
to one who takes it on faith of such acceptance is valid.* Bills of
NEW HAMPSHIRE—Demand notes must be protested within sixty exchange, promissory notes, bank checks, and bonds for payment of
days from day of their indorsement to hold indcrsers. Days of grace are money are negotiable. When negotiable paper is taken in payment of a
not allowed. Paper maturing on a holiday is payable the preceding pre-existing debt, equities can be set up against the holder. Notary’s cer­
business day. Notaries public are the proper protesting officers. Notice tificate that he gave notice on protest of bill or note to drawer or indorser,
of the non-payment or the non-acceptance upon residents by mail is is prima facie evidence that such notice was given as therein stated.' All
sufficient.
warehouse receipts for cotton, tobacco, grain, hemp, whisky, or any kind
of produce, wares, merchandise, or of any description of personal prop­
NEW JE R S E Y —Inland bills of exchange are, in general subiect t,r> the erty, are negotiable in the same manner as bills or exchange, unless such
law of foreign bills; they must be protested. No grace allowed except on receipts shall have the words “ Not negotiable” plainly written or
notes made prior to July 4 , 1895. The action requiredto hold tadorser is stamped thereon. Damages recoverable on a protested bill of exchange
the same asunder the general mercantile law. Paper due on a legal holi- drawn or indorsed in Tennessee, are three percent if it was drawn on a
payable the day after, and notice of non-payment may be given person or corporation in any of the United States or Territories thereof;
S & W / I r K 1!? ,™ later< vif the legal holiday should fall upon a fifteen per cent if drawn on any person or corporation of or in any other
on^eclnes^i0nday’ ^lils are Payat)le on Tuesday, and notice may be given State or place in North America bordering on the Gulf of Mexico, or of


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3

BAN K LA W S.
or in any ot tue W est India Islands; twenty per cent if drawn on any per­
son or corporation of or in any other part of the world. Days of grace are
hot allowed. Paper maturing on a holiday becomes due on business day
succeeding.,
TEXAS—Unless otherwise provided, com mercial paper w ill.be con­
sidered payable at the residence of the m aker or acceptor, or other person
bound. Days of grace allowed on all negotiable instruments. Bill or
note maturing on a legal holiday becomes due on business day precedr
ing. Attorney’s fees may be stipulated for in note and recovered in case
of suit. The liability of any drawer or indorser may be fixed by insti­
tuting suit against the acceptor or maker, before first term of district or
county court, to which suit can be brought, or before second term, show­
ing good cause why not brought at first term; within jurisdiction of
justice, suit must be brought within sixty days. Such liability may also
be fixed by protest, according to the custom of merchants. The holder
of a protested draft or bill, drawn by a m erchant in this state, upon his
agent or factor without the state, may recover ten per cent damages
thereon, besides interest and costs.
UTAH.—Bills o f exchange, promissory notes, bank notes, checks, bonds,
and certificates of deposit are negotiable instruments and are gov­
erned by the statutes of the Territory. Notice of dishonor may be given by
the holder or any party to the instrument who may be called on to pay it,
and must be in writing. Days of grace are not allowed. Paper falling
due on a holiday becomes due the next preceding business day, except
when such preceding day is also a holiday, in which-event it becomes
due on the next succeeding business day.
VERMONT—Notes and bills of exchange are not entitled to grace.
Negotiable paper need not be made payable at any particu lar bank or
place. Notes payable on demand are considered overdue after sixty days
from date of demand and notice. W henever any bill or note shall fall
due on a Sunday or holiday, the same shall be considered as due on the
n e x t following business day, but if holiday comes on Sunday the preced­
ing Saturday shall be considered like Sunday.
VIRGINIA—No grace allowed except on notes made prior to July 1,1898.
.Vhere a bill of exchange drawn or indorsed within this State is protested
the party liable for the principal of such bill shall, in addition, pay
damages upon the principal at the rate of three per cent if the bill be
payable out of Virginia, and within the United States, and ten per cent, if
payable without the United States. All bills, notes, checks and other
negotiable instruments maturing on a legal holiday, shall become due
on a secular or business day next succeeding, and paper falling due on
Saturday must be paid before 12 o’clock noon.

WASHINGTON—Promissory notes payable to order or bearer have
the same effect and are negotiable in like manner as inland bills of ex­
change according to the custom of merchants. Days of grace are not
allowed. Paper maturing on a legal holiday becomes due the day after.
No person within the State shall be charged as an acceptor of a bil
of exchange, unless his acceptance shall be in writing, signed by himo^nis authorized agent. If such acceptance be written on a papei
other than the bill, it shall not bind the acceptor, except in favor of a
Person to whom such acceptance shall have been shown, and who, on the
thereof, shall have the bill for a valuable consideration. E v ery
polder of a bill, presenting the same for acceptance, may require that the
written on the bill; a refusal to comply with such request
deemed a refusal to accept, and the bill may be protested for
non-acceptance. In all promissory notes or sim ilar instruments, in
8 S'??8 maJ tie allowed when specially contracted to
be paid by the term s of the note. No protest fees allowed on domestic
Dills oi exchange.
WEST VIRGINIA—Every promissory note or check for money payaable in this state at a particular bank, or at a particular office thereof for
discount or deposit, and every inland bill of exchange payable in this
state, shall be deemed negotiable. Days of grace are not allowed. Com­
m ercial paper falling due on a holiday is payable on the next week day.
When a bill of exchange drawn or indorsed within this state is protested
for non-acceptance or non-payment, there shall be paid by the party
liable for the principal of such a bill, in addition to what else he is liable
for, damages upon the principal at the rate of 3 per cent if payable out of
the state and within the United States, and 10 per cent if payable with
out the United States.
WISCONSIN—The common law prevails as to the negotiability, pro­
test, and rights and liabilities of the various parties to. them. Warehouse
receipts are negotiable unless expressed not to be. Municipal bonds are
not negotiable, unless expressly authorized to be. Days of grace have
been abolished by statute. Bills of exchange and promissory notes are
protested for non-acceptance or non-payment, and written notice thereof
given to the drawer, maker, and each indorser, immediately on making
protest, b.v personal delivery or by mail, postage prepaid. Damages on
foreign bills, five per cent. One action may be brought against all partief
liable on a note or bill. Negotiable paper maturing on Sunday or aholidaj
becomes due on the next succeeding secular day.
WYOMING—Notes and bills of exchange are subject to a State law
which substantially enacts the law merchant. Grace is allowed on nego­
tiable instruments, except waived in note. Paper maturing on a holiday
becomes due the next business day preceding.

CANADA.
Assigns—

ONTARIO—Insolvency is under the control of the Dominion Parlia­
ment. and at present there is no Insolvency Act in force, but there is a
Provincial Act under which a debtor in insolvent circum stances may
make a voluntary assignment for the general benefit of his creditors, to
the Sheriff, or an assignee, who must be a resident of the Province. The
assets are to be distributed ratably without preference to ali creditors.

Attachments—

ONTARIO—Any person resident in Ontario and indebted to any one
person above $100, who leaves the Province with intent to defraud his
creditors, and is possessed of property not exempt from seizure, becomes
an absconding debtor and his property may be seized under an order of
attachment. The creditor, his agent or servant, must make affidavit set­
ting out cause of action, that debt exceeds $100, belief that debtor has left
Ontario with intent to defraud him or to avoid process or arrest, place to
which he is believed to have fled, if ascertainable, and that he possessed
at time of his departure property not exempt from seizure. Affidavits of
two ^other parties that they are acquainted with the debtor, that they
believe he has departed with similar intent, are required in addition.

Bank Laws—

This is a m atter which under the British North Am erica act is
within the legislative jurisdiction of the Parliament of the Dominion of
Canada and is governed by the Bank act of 1890. The law with respect
to banks is, therefore, uniform everywhere in Canada. Every public
bank must be incorporated by special act of the Parliament of Canada.
Persons carrying on business as private bankers are prohibited from
advertising or holding themselves out as banks or banking companies.
The Bank act applies to every bank incorporated after the first day of
January, 1890. By this act the charters of banks which were in existence
at that date are continued until the first of July, 1901, when they may be
renewed under a new act. The capital stock of a bank thereafter incor­
porated may not be less than $500,000, which amount is to be divided into
shares of $100 each. The paid-up capital must be at least $250,000, and this
amount is required to be deposited with the Minister of Finance. The
capital of any bank may be increased in the manner provided by the
Bank act.

Exemptions—

ONTARIO—Th& debtor’s ordinary bedding and apparel; furniture to
$150; fuel and provisions for 30 days, not exceeding $40; one cow, six sheep,
four hogs, twelve hens, not exceeding in all $75, and food for same for 30
days; tools and implements used in his business to $100; fifteen hives of
bees. All of these exemptions, excepting bedding and apparel, may be
seized in satisfaction of a debt contracted for the identical article. Lands
acquired by settlers under the Free Grants and Homesteads act are exempt
for 20 years from the date of the location, if they are still owned by the
settler, his widow, heirs or devisees.

Interest—

ONTARIO—Interest may be allowed in the discretion of the court
upon open accounts where a demand in writing has been made. Any rate
of interest may be agreed upon between the parties. The legal rate of
interest is 8 per cent.
QUEBEC—Any rate of interest which the parties may lawfully agree
upon may be charged. In the absence of an agreement fixing a rate of in­
terest per annum, the rate is fixed at 6 ber cent. Banks cannot charge
more than 7 per cent per annum.
NOVA SCOTIA—Interest may be allowed in the discretion of the court
upon open accounts where a demand in writing has been made. Any rate
of interest may be agreed upon between the parties, but. in the absence
of agreement, the legal rate is 6 per cent. Banks cannot charge more
than 7 per cent per annum.
NEW BRUNSWICK—Any rate of in terest may be agreed upon between


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Federal Reserve Bank of St. Louis

I the parties except in the ease of banks, which cannot charge more th an r
per cent per annum. In the absence of agreement, the legal rate is 8 per
cent.
MANITOBA—Any rate of interest m aybe agreed upon between the
parties. In the absence of agreement, the legal raté'is 6 per cent.
BRITISH COLUMBIA—Any rate of interest may be .agreed upon be­
tween the parties. In the absence of agreement, the legal rate Is 6 per
cent. Banks cannot recover more than 7 per cent.

Legal and Bank Holidays—
ONTARIO, NOVA SCOTIA, NEW BRUNSWICK, MANITOBA AND
BRITISH COLUMBIA. Sundays, New Years Day, Good Friday E a s te r
Monday, Queen’s Birthday (May 24th), Dominion Day (July 1st), La nor Day
(first Monday in September), Christmas Day and any other day appointed
by proclamation for a General Fast or Thanksgiving.
QUEBEC—The same holidays as in the other Provinces and, in addi­
tion, the following, viz: Epiphany, Ascension, All Saints and Conception.

Limitations of Actions—

ONTARIO.—All actions upon simple contracts and of account must be
brought within six years from the time when the cause of action first
arose. On contracts under seal within twenty year-t. On a covenant in a
Mortgage within ten years. A written acknowledgement of adebt signed
by the debtor or the duly authorized agent, or a piyment made on
account, at any time .before the right of action is barred will cause th e
Statute to run anew from the date of the acknowledgement or paym ent.
A judgment may be enforced for twenty years and may be renew ed.
Action upon a judgment- of a foreign Court must be brought within six
years.

Notaries Fees for Protest— I

ONTARIO—Protest 59 cents, and each-notice 23 cents. Postage addi­
tional,
QUEBEC—Protest $1.00, and each notice 50 cents. Postage additional.
NOVA SCOTIA—Protest 50 cents, and each notice 2.5 cants. Po stage
additional.
NEW BRUNSWICK—Protest and all notices $5.09. Postage additional.
MANITOBA—Protest $1.00, and each notice 59 cents. Postage addi­
tional.
BRITISH COLUMBIA—Protest and all notices $2.50.

Notes and Bills of Exchange—

The law upon this subject is uniform for all the pro vincas of Canada,
and is regulated by the Parliament of the Dominion of Canada. (Canada
Bills of Exchange Act, 1890).
Promissory notes and bills of exchange do not require to be stamped;
they are negotiable, and the general law regarding the same is almost
identical with that of England and very sim ilar to the law of m ost of the
United States of America.
To charge the endorser or drawer, a bill pr note must be presented the
day it falls due, and endorsers and parties secondarily liable are only
held by protest of the note or bill and notice of dishonor given or mailed
within one day.
When a particular place of payment is mentioned, presentment must
be made there. If payable at a bank, presentment may be made either
within or after the usual banking hours. Where no place of payment is
mentioned in the instrument, presentment must be made to the party
primarily liable either personally or at his domicile or office or usua
place of business.
In case a bill or note falls due and is payable on a legal holiday, it
must be presented the following day.
Unpaid bills and notes bear interest from maturity at 8 per cent,
whether so stated or not. Any rate of interest m i / be fixed by agree­
ment between the parties.
Three days’ grace are allowed on all bills and notes, except when
payable on demand.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102