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DIGEST OF BANKING AND COMMERCIAL LAWS COMPILED EXPRESSLY FOR EACH EDITION OF THE RAND McNALLY BANKERS DIRECTORY by prominent Attorneys in each State of the United States and each province of Canada, the name of the compiler appearing at the head of each State. The Laws are entered alphabetically according to States. Provinces of Canada are listed last. IMPORTANT: The states in which the Uniform Negotiable Instruments Law is in effect are listed on the index to Laws. For Tabulated Information, for quick reference in regard to Interest Rates, Days of Grace, and Statutes of Limitations, see page 1776. of payment is given to one or more creditors, shall enure to the benefit of all the creditors equally, but this section shall not apply to mort gages, pledges, or pawns given to secure a debt contracted contem poraneously with the execution of the mortgage. Ail assignments by a debtor made with intent to hinder, delay, or defraud creditors are void. All deeds of assignment for the benefit of creditors shall, a* soon as executed, be filed and recorded in the office of the judge of probate of the county in which the property is situated. Every judgment confessed, attachment procured by the debtor, or other dis position of property by which a debtor conveys all, or substantially ail, of his property which is subject to execution in payment or as security for a debt shall be deemed a general assignment. Attachment process will issue upon affidavit by the creditor or hi* agent of the amount due and that the debtor absconds, or resides, out of the State, or secretes himself so that process cannot be served upon him, or is about to remove out of the State, or has or is about to fraudulently dispose of his property, or fraudulently withholds money, chattels, or effects which are liable to the satisfaction of his debts; plaintiff must give bond in double the amount claimed. Attachments will issue for the following demands; 1. To enforce the collection of a debt, whether it be due or not, at the time the attachment is takon out. 2. For any moneyed demand, the amount of which can be certainly ascertained. 3. To recover damages for a breach of con tract when the damages are not certain or liquidated. 4. When the action sounds in damages merely in following cases, viz.: 1. Where defendant is a non-resident. 2. When the defendant has absconded. 3. When defendant has secreted himself. 4. When defendant is about to remove from the State. 5. When defendant is about to remove his property from State. 6. When defendant is about to or has fraudulently disposed of his property or fraudulently withholds same. One non-resident may sue out an attachment against another non-resident by making oath that the defendant has not sufficient property within the State of his residence wherefrom to satisfy the debt. Attachments may be sued out in aid of a pending suit when any of the above grounds exist by making affidavit and executing bond. Garnishment process will issue in aid of attachment in all such cases. Garnishment may be dissolved by giving bond. In all cases of attachments sued out by a resident solely upon the ground that the defendant is a non-resident, the attachment may issue with out giving bond, but if defendant appears and pleads, bond must be given or the attachment dismissed. Banks. State Banks of discount and deposit may be established by individuals or corporations, but before organization must obtain permit from Superintendent of Banks. Before issuing permit Super intendent of Banks must investigate as to public necessity of bank in community where same is proposed and the fitness and character of individuals proposing to organize bank, or if corporation, the character and fitness of stockholders proposing to incorporate bank. Appeal from Superintendent’s refusal to issue permit may be taken to State Banking Board. Paid capital stock of State Banks shall be not less than S25.0000.00 in cities of 2,500 or more inhabitants; not less than $15,000.00 in towns or villages of less than 2,500 and more than 1,000 inhabitants and not less than $10,000.00 in towns of 1,000 or less inhabitants. Reserves. Cash reserve of 15% of demand deposits required to be maintained; three-fifths of which amount may consist of balances due by banks and bankers. Reserve of 10% of net earnings required to be set aside annuallv until surplus equals 25% of capital stock. Dividends in excess of 90% of net earnings prohibited until such surplus equals 25% of the capital stock. There is no stockholder's liability in Alabama, other than amount subscribed to capital stock; in other words, if the subscriber has paid for his capital stock, there is no liability. Subject to the foregoing, banks are incorporated under the general incorporation laws of the State. There is no provision of law for the establishment of banks of issue. Open depositors and savings depositors are on equal footing in the event of insolvency. Banks are prohibited from receiving, directly or indirectly, a greater rate of interest than 8%. State Banks are under the jurisdiction and control of Superintendent of Banks, subject to review by State Banking Board. Examinations and Reports. Examination of bank by superintendent required to be made at least twice each year. All banks required to make reports on call of superintendent at least twice a year. Loan Limitations. Loans to officers and employees prohibited without approval of Board of Directors of Loan Committee; and in no event to be in excess of 25% of capital surplus and undivided profits. Loans in excess of 25 % of capital unimpaired surplus and undivided profits to any one person, firm or corporation prohibited. Loans exceeding 10% of capital surplus and undivided profits must be amply secured. Loan limitations do not apply to bona fide loans made on security of agricultural, manufactured, industrial products, livestock or other liquid securities having a market value and for which there is a ready sale in open market, title to which by appropriate transfer is taken in the name of the bank, in which event not more than S0% of market value shall be loaned thereon. Limitations do not apply to bonds of the United States, or this state or the several counties, districts of municipalities thereof. Loans on stock of own bank prohibited. Branch Banking. Recent Act permits banks having capital and surplus in excess of one million dollars and in counties in excess of 250,000 inhabitants to establish branch banks in such counties. According to present population this applies only to Jefferson County. Bills of Lading. Uniform bill of lading act in force. Bills to specified person non-negotiable. Bills to order of are negotiable. Blue Sky Law. It is unlawful to sell or offer for sale in this State any speculative securities without first obtaining permit from the State Securities Commission. Collaterals. Receipt must be given if demanded. Pledges or col laterals not transferable without transfer of the debt; after two days, notice in writing collaterals may be sold, by advertising for five day* at public outcry. Conditional Sales are good between the parties, but void where personal property delivered to vendee as against purchasers for a valuable consideration, mortgages, judgments creditors, and land lords with liens without notice, unless in writing and recorded in the office of the probate judge. SYNOPSIS OF THE LAWS OF ALABAMA RELATING TO BANKING AND COMMERCIAL USAGES. Revised by Ritter, Wtnn & Carmichael. Attorneys at Law. 610 First National Bank Bldg., Birmingham. (See Card in Attorneys List.) Acknowledgments or proof of real estate Instruments may be taken before one of the following officers: 1st. Within this State. Judges of the supreme and circuit courts and the clerks of such courts, chancellors, registers in chancery, judges of the courts of probate, justices of the peace, and notaries public. The official should certify that the person signing the conveyance is known to him and acknowl edges that “being informed of the contents of the conveyance he executed the same voluntarily on the day the same bears date." 2d. Outside of State—Judges and clerks of any federal court, judges and clerks of any court of record in any state, notaries public, or com missioners appointed by the governor of this State; beyond the limits of the United States, by the judges of any court of record, mayor or chief magistrate of any city, town or borough, or county, notaries public, or by any diplomatic, consular, or commercial agent of the United States. Foreign officers must attach official seal which fact must appear In certificate. For forms of deeds see “Conveyances.” Actions. All ordinary suits at law are commenced by suing out a summons which must be accompanied by a complaint stating the cause of action. Non-resident plaintiffs are required to give security for costs. When two or more persons are jointly bound by judgment, bond, or agreement, the obligation is several as well as joint. Actions on Account. Suits upon open accounts may be accom panied by itemized, verified statement of the account, which when filed with the summons and complaint may be admissible in evidence to prove the account unless its correctness is denied under oath by defendant within the time allowed for pleading. Such statements must be sworn to by a person having knowledge of the correctness of the account and must show that the amount is due and unpaid after allowing all offsets and counter claims and when sworn to out side State, must bear official seal of officer. Acceptance. Unconditional promise in writing to accept a bill before or after drawn is good in favor of all who take it upon faith thereof for value. The holder may decline a qualified acceptance and treat the bill as dishonored; if he takes qualified acceptance drawer and endorsers are discharged. A Check Is a bill of exchange on a bank payable on demand; must be presented within reasonable time after issue and if dishonored, notice must be given or drawer is discharged to the extent of loss caused by delay; does not operate to assign any part of drawer's funds In bank, and bank is not liable unless it accepts or certifies. If holder has check certified the drawer and endorsers are discharged. The making, uttering, drawing, or delivery of a check, draft, or order upon which payment is refused upon due presentation because of lack of funds shall be deemed prima facie evidence of intent to de fraud and party may be convicted of a misdemeanor. The present negotiable instrument law of Alabama, consisting of 196 sections went into force Ausugt 9, 1907. Its provisions do not apply to Instruments made prior thereto, and is substantially uniform negotiable Instruments Act. The act so materially changes the law In this State as to suggest the propriety of special examination in any doubtful case. Administration of estates is had in the probate courts of dece dents’ residence. All claims must be presented by filing a verified statement thereof in the office of the Judge of Probate in which letters are granted within six months after granting of letters testa mentary or of administration. Administration of intestate is granted, 1st: To the husband or widow; 2d: The next of kin entitled to share in the distribution of the estate; 3d: The largest creditor of the intestate residing within this State; 4th: The County or general administrator; 5th: Such other person as the judge of probate may appoint. There can be no appointment until after expiration of five (5) days from date of death. Preference must be exercised within forty days or rights relinquished. If several entitled to administer, men are pre ferred to women and whole blood to half blood. Nonresident execu tors and administrators may sue in this State by recording in probate judge's office copy of letters and giving bond to faithfully administer property. A nonresident may be appointed administrator or executor of a deceased resident’s estate. Administrations may be removed to court of equity. Affidavit* may be taken within the State before every judge or clerk of any court, justices of the peace, and notaries public or any other person Invested by law with judicial functions. Outside the State and within the United States may be taken before any judge or clerk of federal court, judge of any court of record in any state, notaries public and commissioners appointed by the governor. For eign officer taking affidavit must attach seal which fact must be recited in the jurat. Allens. “Foreigners who are, or may hereafter become, bona fide residents of this State, shall enjoy the same rights in respect to the possession, enjoyment, and inheritance of property as native-born citizens.”—Sec. 34, Const. Alterations. When a negotiable instrument is materially altered without the assent of ail the parties liable thereon, it is voided except as against a party who has himself made, authorized, or assented to the alteration and subsequent endorsers. But when an instrument has been materially altered and is in the hands of a holder in due course, not a party to the alteration, he may enforce payment thereof according to its original tenor. Material alterations consist of any changes in date; sum payable interest on principal; time or place of payment; number and relation of parties; medium or currency in which payment is to be made. Assignments and Insolvency. Every general assignment made by a debtor, or conveyance by a debtor of substantially ail of hi* property in payment of a prior debt, by which a perference or priority 92 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1747 1748 BANKING AND COMMERCIAL LAWS—ALABAMA Conditional contracts of sales must be recorded In office of tbs Judge of Probate of the county in which the property is located, to be valid against subsequent purchasers, judgment creditors, or mortgagees without notice, except in counties having a population of more than 80,000 when contract is for a less amount than $200.00. If the property is removed to another county, contract must be recorded in latter county within three months after removal. Conveyances. All persons of the age of twenty-one years, not laboring under some legal disability, may convey their real estate or any Interest therein by instrument in writing signed by the grantor or his agent duly authorized in writing, and attested by one witness, or If the grantor cannot write, by two witnesses who are able to write, and who sign their names as witnesses. If the grantor is not able to sign his name it must be written for him, and the words “his mark” written over or against it. The person writing his name must sign as a witness. A parol lease for less than one year is valid. A married woman over eighteen years of age may convey dower in her husband’s lands, and has generally the same rights as married women over twentyone years of age. The husband must join in any conveyance of the wife’s separate estate. Conveyances, to operate as notice, must be acknowledged and recorded. General acknowledgment must be signed to make instrument self-proving. Married women must acknowledge twice in the event the homestead is conveyed. Form of general acknowledgment is as follows: The State of Alabama,......................... County I.............................................................................................a (style of officer), hereby certify that......................................................... whose name is signed to the foregoing conveyance and who is known to me, acknowledged before me on this day, that, being informed of the contents of the conveyance, he executed the same voluntarily on the day the same bears date. Given under my hand and seal, this.....................day of .....................A. D (Seal' Notary Public No time is required within which conveyances shall be recorded. They operate as notices from date of delivery to probate judge for record. (See Acknowledgments.) They may be used as evidence without further proof of execution. Leasehold estates may be created to last not exceeding twenty years, but if longer void as to excess. A married woman must make the following acknowledgment to a conveyance of a homestead: State of...................... County of....................... I............................ judge of.................(or other officer) do hereby certify that, on the.................... day of............................ 19........... came before me the within named................................................ known to me (or made known to me) to be the wife of the within named.................................... who, being examined separate and apart from her husband touching her signature to the within...................... acknowledged that she signed the same of her own free will and accord, and without fear, constraint, or threats on the part of her husband. In witness whereof. I hereto set my hand and official seal this .........................day of..........................19... . (Official Character.) Corporation to make following acknowledgment: .................................................... that....................................................................... whose name as.........................................of the said corporation, is signed to the foregoing conveyance, and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he, as such officer, and with full authority, executed the same voluntarily for and as the act of said corporation. Corporations. All corporations are formed under the general state law; creation under a special act is not permitted. Three or more persons may incorporate and articles of incorporation are filed in the office of the Judge of Probate in the county in which the cor poration has its principal place of business. Certificate of incorporation must contain a verified statement showing the amount of capital stock paid in, which shall not be less than 20% of the total subscription. Stockholders are liable to creditors for unpaid subscriptions to the capital stock. Corporations may be sued in any county in which it does business by agent, Ways of Grace are abolished. (See Negotiable Instruments.) Depositions. In cases at law, depositions may be taken of wit nesses who cannot be present at the trial in the following cases: When the witness is a female; wrhen the witness is too sick to attend court; when the witness resides more than 100 miles from the place of trial, or is absent from the State; when the witness is about to leave the State, and not return in time for the trial; when the witness is the sole witness of the facts; when the witness is one of the officers desig nated in Code No. 4030. Affidavit must be made of one of the above facts, and of the materiality of the witness. May be taken on inter rogatories by a commissioner appointed by the court for that purpose. The commissioner may be any suitable person, need not be an officer. In equity suits, where witnesses live within 100 miles of the place of trial, depositions may be taken by oral examination before the regiter, or a special examiner, or commissioner appointed for the purpose. Descent and Distribution. The real estate of persons dying intestate, in this State, descends, subject to the payment of debts and the widow’s dower as follows: First to the children of the intestate or their descendants per stirpes in equal parts. Next, to the parents, if they survive, in equal parts. If only one parent survives, then one-half to such parent and one-half to the brothers and sisters of the deceased or their descendants, and if there be no brothers and sisters and their descendants, then the whole estate shall go to the surviving parent. If there are no children or their descendants, and no father or mother, then to the brothers and sisters of the intestate, or their descendants, in equal parts. If there are none of the above to take, then the whole to the husband or wife of the intestate, and if there be no husband or wife or none of the foregoing living, then to the next of kin in equal degree in equal parts. If there are no next of kin it escheats to the State. The personal estate is distributed the same as the real estate, except that if there are no children the widow is entitled to all of the personal estate. If but one child she takes onehalf. If not more than four children to a child's part and if more than four to one-fifth. Posthumous children take as others. Illegiti mate children inherit from their mother. The husband upon the death of the wife is entitled to half of her personal estate absolutely, and to the use of all of her real estate for life, unless he has been divested of all control over her estate by a degree of the chancery court. Damages recovered by personal representative for death of deceased are distributed according to statute of distribution and are exempt from payment of debts. Discovery. Either party to a suit at law or in equity may examine his adversary by filing written interrogatories and making affidavit that answers will be material evidence for him. Dower. Unless the wife has relinquished her right of dower in the manner provided by statute she is. upon the death of the husband, entitled to dower In all lands of which the husband was seized in fee during the marriage, or of which another was seized to his use or to which he had a perfect equity, having paid all the purchase money therefor. The dower interest is one-half when the husbana leaves no lineal descendants, and one-third when the estate is insolvent or the husband leaves children or their descendants. If the wife has at the death of the husbana a separate estate equal m value to her dower Interest, she shall not have dower, and if of less value is only entitled to such amounts as with her estate will make the full value of the dower. Executions. Property subject to: 1st: On real property to which the defendant has a legal title or a perfect equity, having paid the purchase money, or in which he has vested interest, in possession. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis reversion, or remainder, whether he has the entire estate, or is entitled to it in common with others. 2d: On personal property of the defen dant (except things in action), whether he has the absolute title there to, or the right only to the possession thereof for his own life, the life of another, or a less period. 3d: On an equity of redemption in either land or personal property, when any interest less than the absolute title is sold. The purchaser is subrogated to all the rights of the defendant, and subject to all his disabilities. Writ of fieri facias Is a lien only within the county in which it is received by the officer, on lands and personalty of defendant subject to levy and sale, from the time only that the writ is received by such officer and continues as long as writ is regularly delivered to the sheriff without the lapse of an entire term. A statement of a judgment certified by the clerk of the court may be filed in the office of the judge of probate, which makes the judgment a lien within the county in which it is filed for ten years thereafter. Execution may be issued on such judgment at any time. Executions issued by justices are liens on the property of the defen dant, on which they are levied, from the time of the levy. An order must be obtained from the circuit court for the sale of lauds levied on under execution from a justice’s court. No stay of execution in circuit court except by appeal, and supersedeas bond which delays collection until affirmance by supreme court, and entails 10 per cent damages, with legal interest and costs. In justice’s court stay is granted on good security, below $20, thirty days over $20, sixty days. Exemptions. Homestead not exceeding 160 acres and $2,000 In value. Personal property to the amount of $1,000. Exemptions of personal property may be waived by instrument in writing except as to certain household furniture and provisions and wages to amount of $25.00 per month. Foreign Corporations. Before engaging in business in the State, corporations are required to file in the office of the Secretary of State a certified copy of its charter and designate a known place of business in the State and an authorized agent residing in the State upon whom service of process may be had. Foreign corporations failing to comply with foreign corporation laws become liable for penalty of $1,000.00 for each act which constitutes doing business in the State. Agents of such corporations who have not complied with foreign corporation laws are also liable for penalty of $500.00 for each act, and all contracts of foreign corporations who have not complied with Alabama laws are void. Foreign corporations are required to pay license fees ranging from $25.00 upwards according to the amount of capital invested in the State and to procure a permit on the first of each year from the Secretary of State. Charge for this permit is $10.00 per year. Frauds, Statute of. In the following cases, every agreement, or note or memo thereof, expressing the consideration, is in writing anu signed by the party to be charged: 1st. Every agreement which by its terms is not to be performed within one year from the making thereof. 2d. Every special promise by an executor or administrator to answer damages out of his own estate. 3d. Every special promise to answer for the debt, default, or miscarriage of another. 4th. Every agreement, promise, or undertaking, made upon consideration of marriage, except mutual promises to marry. 5th. Every contract for the sale of lands, tenements, or hereditaments, or of any Interest therein, except leases for a term of not longer than one year, unless the purchase money, or a portion thereof, be paid and the purchaser be put in possession by the seller. Garnishment may issue in any case after suit commenced upon affidavit of necessity and bond as in attachment cases, or after judg ment. without bond. Holidays. The following are the legal holidays: Sundays: Janu ary 1 (New Year’s Day): January 19 (Robert E. Lee’s birthday); February 22 (Washington’s birthday); Mardi Gras Day, which is Tuesday before Ash Wednesday; April 13 (Jefferson’s birthday); April 26 (Confederate Memorial Day); June 3 (Jefferson Davis’ birthday); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Fraternal Day); November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day)’ If a holidays falls on Sunday, the following Monday is a holiday. Husband and Wife. The wife has full legal capacity to contract as if she were sole, except that she can not alienate or encumber her real estate without the husband joining in the conveyance, unless the husband be insane or has abandoned her, or is a non-resident, or is imprisoned under a conviction for crime for a period of two years or more, in which cases the wife may convey it as if she were sole. Husband and wife may contract with each other, but the wife can not be surety for the husband. All of the property and the earnings of the wife are her separate estate, and are not liable for the debts of the husband. The wife must sue and be sued alone for all matters relating to her separate estate or contracts, and for all torts to her person or property. Divorce bars dower and husband’s courtesy. Interest. Legal rate 6%; 8% permitted by contract. Judgments of courts of record are proved by a certified transcript. Judgment not a lien, but when a ceritfled statement thereof, made by the clerk of the court is filed in the office of the probate judge, it becomes a lien on all property of the defendant therein in the county, which is subject to execution for ten years, to enforce which execution may issue at any time within that period. Execution received by sheriff during life of defendant may be levied after his decease or alias execution issued and levied if there has not been lapse of entire term do as to destroy lien originally created. Above applies to executions from circuit and chancery courts. An execution issued by a justice of the peace is a lien only from time of its levy. All agreements to confess judgment, or to authorize another to confess judgment, made before the commencement of the suit in which such judgments are so confirmed are void. Lien for Rent. The landlords of any store house, dwelling house, or other building, shall have a lien on the goods, furniture and effects belonging to the tenant, and sub-tenant for his rent, which shall be superior to all other liens, except those for taxes, also on crops grown on rented premises for rent and advances. Limitations. Notes and stated accounts, six years; open accounts, three years; sealed instruments, real actions, and motions against officers, ten years; judgments, twenty years; actions on the case, one year. Bar created by statute can only be removed by a partial pay ment, made on the contract before the bar is complete, or by an uncon ditional promise in writing. If anyone entitled to bring an action, or make an entry on land, or defense founded on title to real estate, be at the time such right accrues, within the age of twenty-one years, or insane or imprisoned on a criminal charge for a term less than life, he shall have three years, or the period allowed by law. for bringing such action, if the period allowed by law be less than three years, after the termination of such disability to bring such suit, etc., but no action can be commenced after twenty years. Statutes of limitation apply to married women's separate estates. Actions founded on a promise in writing not under seal, or for trespass to person or property, must be brought within six years. Statutes of limitation are made appli cable to equitable as well as legal demands, but do not run against direct trusts. Any agreement or stipulation to shorten the period prescribed by law for the bringing of any action is void. Actions seeking relief on the ground of fraud where the statute created a bar. the cause of action begins to run upon discovery of the fraud by aggrieved party. No promise or acknowledgment is sufficient to remove the bar to a suit, except a partial payment made upon the contract by the party sought to be charged before the bar is complete, or an unconditional promise in writing, signed by the party to be charged thereby. Married Women. (See Husband and Wife.) Mechanics’ Lien. Contractors, including subcontractors, mechanics, material men, and laborers have a lien on houses built and the ground on which they stand upon complying with the law. BANKING AND COMMERCIAL LAWS—ALASKA Mortgages are executed and acknowledged in the same manner as deeds. May be foreclosed by bill in equity, or if there be a provision to that effect, by sale under power, upon such default as authorized a sale. All mortgages are void against creditors or purchasers without notice, unless recorded. Mortgages operate as notice from day of delivery to probate judge for record. There is no fixed time within which they shall be recorded. Homestead realty cannot be mort gaged or otherwise aliened without the voluntary signature and assent of wife, evidenced by acknowledgment, upon private examination separate and apart from the husband, and certified. All mortgages must be in writing, signed by the mortgagor. Payment of mortgage debt made before or after maturity of debt, revests in the mortgagor, or his assigns, the title to the real or personal property mortgaged, if made in the lifetime of the mortgagor; if made after his death, such payment revests title to personal property in the personal representa tive, and title to realty in the heirs, devises, or legatees of the mortga gor. Chattel mortgages must be in writing. When the mortgagor Is sued by the mortgagee for possession of the mortgaged property, he may defend by showing payment of the debt, or part payment and a tender of the balance, or may pay it after judgment. Negotiable Instruments. Uniform Negotiable Instruments Act adopted January 1, 1908. See full text of the law following “Digest of Banking & Commercial Laws.” Partition. Partition of real or personal property may be made, upon application of any tenant in common in either Courts of Probate or Courts of Equity, and may be sold for division if it can not be equitably divided. Powers of Attorney. Powers of attorney or other Instruments conferring authority to convey property must be proved or acknowl edged in the same manner and must be received as evidence to the Bame extent as conveyances (see Conveyances), and msut be executed as conveyances. A power of attorney to relinquish dower must be executed by husband and wife jointly. Her signature must be acknowledged as required for conveyances of land. Presentment. Is not necessary to charge one primarily liable except in case of bank notes; if payable at special place ability and willingness to pay it there at maturity is equivalent to a tender; if not on demand it must be presented on day it falls due, if on demand then within a reasonable time after its issue, except a bill of exchange must be presented within reasonable time after its last negotiation. Probate Law. A court of probate, consisting of one judge, is established for each county in the State. This court has jurisdiction of the probate of wills, of granting letters testamentary and of admin istration, and the repeal of revocation of the same; of the settlements of accounts of executors and administrators, of the sale and disposition of the real and personal property belonging to, and the distribution of. Intestates' estates. Also of the appointment, removal, and settlements of guardians for minors and persons of unsound mind, the binding out of apprentices, the allotment of dower, and the partition of land belong ing to joint owners. A court of probate must be held at the court house of each county on the second Monday of each month, and the judge may hold special or adjourned terms whenever necessary, but Buch court must at ail times be considered open, except on Sundays. It also keeps a record of deeds, mortgages, and instruments entitled to record. Promissory Note. (See Negotiable Instruments.) Protest. (See Negotiable Instruments.) Protest of Foreign Bills. (See Negotiable Instruments.) Replevin. Writ of replevin lies to recover property in custody of an officer of the law, and is limited to this. The action of detinue lies to recover personal property in all other instances. Sales. Uniform sales act in force. Sales in Bulk. Sales of all or substantially all of stock of mer chandise except in regular course of trade is prirna facie fraudulent and void against creditors unless they are notified in writing prior to the sale in manner prescribed by statute. Taxes become due October 1st, and delinquent on the 31st of December of the year for which they are levied and lands may be sold by proceedings had in the Probate Court commenced in the month of March following the due date of taxes provided the personal property is insufficient to pay taxes. The rate of taxation is 6J mills or sixty-five cents on each $100.00 on amounts assessed. This is for State purposes only. Municipalities may levy taxes at the rate of fifty cents on each $100.00 except that certain named municipalities of the larger class may levy a larger amount by special constitutional provision. Counties may levy similar amount to the municipalities except that certain special taxes varying in different counties are levied in addition. Assessments based on 60% of the valuation of the property. Counties may vote additional levies for specific purposes and may secure the same by bonds. The purchaser of lands sold for taxes receives from the tax collector a certificate of purchase showing a description of the property, the date and amount of assess ment, the taxes, costs, and fees, etc., and after the expiration of two years from the date of sale, the purchaser may get a deed from the Judge of Probate. The delinquent tax payer, has two years from date of sale in which to redeem. After purchaser goes into possession under a deed and keeps possession for three years recitals in the deed are held to be true and cannot be disproved. On redemption, the person redeeming pays the amount of taxes for which the land sold, costs of sale, with interest at 15% per annum and all taxes paid sub sequent to the sale by the purchaser with interest thereon at 8% per annum. Whenever land is sold for state or county taxes, and from any cause such sale is invalid to pass title to purchaser, sale operates as transfer to purchaser of lien of state or county, on the property for payment of taxes for which sold. All cotton factories or cotton mills which shall be constructed in this State within five years shall be exempt from taxation for a period of ten years, provided such mills represent an investment of $50,000. Wills. All wills of real or personal property must be in writing signed by the testator and declared his last will and testament in the presence of two witnesses who must sign as witnesses in the presence of testator. Unwritten will of personal property valid only when the property does not exceed $500 in value, and must be made dur ing last sickness by testator at his home. Persons present must be called on to witness tnat it is testator's will and must be re duced to writing by one of the witnesses within six days. Minor over eighteen may make a will of personal property. No will effective until probated. May be contested In probate or chancery court. Widow may within six months dissent and take dower. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1749 SYNOPSIS OF THE LAWS OF ALASKA RELATING TO BANKING AND COMMERCIAL USAGES Revised by M. E. Monagle, 200 Seward Bldg., Juneau, Alaska (see card in Attorneys List) Acknowledgments. (See Deeds.) Actions. The distinction between actions at law and suits in equity and all forms of pleading heretofore existing in actions at law and suits in equity are abolished, and there is but one form of action, denominated a civil action, for the enforcement or protection of pri vate rights and the redress or prevention of private wrongs. Every action must be prosecuted in the name of the real party in Interest, except that an administrator or executor, a trustee of an express trust, or a person expressly authorized by statute may sue without joining with him the person for whose benefit the action is prosecuted; but the assignment of a thing in action not arising out of contract is not authorized. Affidavits. An affidavit or deposition taken out of Alaska, other wise than upon commission, must be authenticated as follows; 1. It must be certified by a commissioner appointed by the governor of Alaska to take affidavits and depositions in the state, territory, district or country where taken; or, 2. it must be certified by a judge of a court of record having a clerk and a seal to have been taken and sub scribed before him at a time and place therein specified, and the existence of the court, the fact that such judge is a member thereof and the genuineness of his signature must be certified by the clerk of the court, under the seal thereof. In all affidavits or depositions witness should speak in the first person. Aliens. Any alien who is a bona fide resident of the United States, or who has declared his intention to become a citizen, or whose rights are secured by treaty, may acquire and hold lands upon the same terms as a citizen. Any alien may acquire lands by inheritance or in the ordinary course of justice in the collection of debts, and may acquire and enforce liens upon lands, but such lands must be sold within ten years. Any alien may also acquire and hold lots or parcels of land in any incorporated or platted city, town, or village, or in any mine or mining claim, but is not authorized to acquire title from the United States to any of the public lands. Associations. A non-profit Co-operative Association may be formed by fifty or more persons, a majority of whom are residents of the Terri tory, engaged in the production of agricultural or aquatic products. The corporation may be organized with or without capital stock. Articles must be subscribed by incorporators and acknowledged by at least one of them and filed in the manner of any corporation in the Territory. Meetings, other than those provided for in the by-laws, may be called by a petition of 40% of the members. Marketing contracts are provided for, but are not binding for a period exceeding ten years. Attachment. The plaintiff, at the time of issuing the summons or afterwards, may have the property of defendant attached in an action upon a contract, express or implied, for the direct payment of money, and, 1, which is not secured by mortgage, lien, or pledge upon real or personal property, or if so secured, when the security has been rendered nugatory by the act of the defendant; or, 2, against a non resident defendant. The writ issues whenever the plaintiff, or any one in his behalf, files an affidavit showing that defendant is indebted to plaintiff (specifying the amount of indebtedness over and above all legal set-offs or counter-claims) upon a contract, express or implied, for the direct payment of money; that the payment has not been secured by mortgage, lien, or pledge upon real or personal property; and that the sum for which attachment is asked is an actual, bona fide existing debt due and owing from plaintiff to defendant; and that the attachment is not sought nor the action prosecuted to hinder, delay, or defraud any creditor of the defendant. Plaintiff must also file an undertaking, with one or more sureties, in a sum not less than $100, and equal to the amount for which he demands judgment, conditioned that plaintiff will pay all costs adjudged and all damages sustained by reason of the attachment if the same be wrongful or without suffi cient cause, not exceeding the amount specified. Banks and Banking. The banking business is regulated by the Territorial Banking Board. Board may declare Banking Holiday at any time it sees fit. Every bank whether incorporated or private is required to make quarterly reports and also special reports to the Banking Board. Paid in capital stock of an incorporated bank must be not less than $25,000, except in towns that have a population of not to exceed 1,000 people within a five-mile radius thereof, the paid in capital stock may be not less than $15,000, providing the consent of the Banking Board is first obtained. Individuals and partnerships have the same require ments as to capital actually invested. However, with the permission of Banking Board a bank may reduce its capital stock to $15,000 where its deposits have not exceeded $100,000 at any time during past fifteen months. On the other hand Banking Board may require bank to increase capital stock to $25,000 where deposits have exceeded $150,000 for a period of nine months. (Laws 1917, c. 7, amending 1913, c. 48.) Three or more persons may incorporate to carry on the banking business, but one of said persons must be resident Territory. No bank incorporated within Territory is authorized to carry on their business until it meets the requirements covering paid up stock nor until said stock is paid in full. The list of subscribers to the Capital stock of an incorporated bank must be filed with Banking Board and give name, residence and amount subscribed by each stockholder. There are special corporate laws regulating the procedure of incor porating banks. No bank is allowed to make loans greater than the sum of $1,000 to any person without such loan having been approved by the Board of Directors; or a loan exceeding 35% of its combined capital and surplus In any case. Banks may not give preference except to Terri tory to secure Territorial funds and to the United States; but bank is allowed to borrow not to exceed its paid up capital, and may pledge not to exceed 50% of amount borrowed as collateral security. A reserve of 20% of its demand liabilities must be kept on hand at all times by every bank in the territory. Ch. 31 Laws 1915. Any authorized bank can postpone payment of deposits. Bank Collection Code. None in effect in Alaska. Bills and Notes. The uniform Negotiable Instrument act has been adopted. Chattel Mortgages. Any interest in personal property, capable of being transferred, may be mortgaged; but the mortgage is void as against creditors and subsequent purchasers and incumbrancers in good faith and for value, unless possession of the property be delivered to and retained by the mortgager or the mortgage provide that the property may remain in the possession of the mortgagor and be ac companied by the affidavit of ail the parties thereto that the same is made in good faith to secure the amount named therein, and without design to hinder, delay, or defraud creditors, and be acknowledged and filed. The mortgage must be acknowledged by the mortgagor as a conveyance of real property is and be filed in the office of the recorder of the precinct where the mortgagor resides and of the pre cinct where the property is. Within thirty days next preceding the expiration of one year from the filing, a true copy of the mortgage, with a verified statement of the interest of the mortgagee in the prop erty at the time the same is renewed, must be filed in the office where the original was filed, and the lien is thereby extended another year. 1750 BANKING AND COMMERCIAL LAWS—ALASKA Chattel mortgages are foreclosed In the same manner as mortgages and liens upon real property, but a clause may be inserted in a mortgage authorizing the marshal to execute the power of sale therein granted to the mortgagee. Corporations. Domestic Corporations. Three or more adult per sons may form a stock corporation for any lawful purpose, whose chief business shall be in the territory, except for purposes of banking. Insurance, brokerage, or loan, trust and guaranty associations. At least one director must be a resident of Alaska. Shares of stock are not assessable unless original or amended Articles of Incorporation expressly confer authority to levy assess ment, or unless stock cerificates provide for assessments. Foreign Corporations. Every corporation or Joint stock company organized under the laws of the United States or any state or territory shall, before doing business withtn the district, file in the office of the auditor of the district and in the office of the clerk of the district court for the division wherein it intends to carry on business a duly authenticated copy of its charter or articles of incorporation, and of any amendments thereto, and also a financial statement, giving certain statutory information, verified by tne oath of its president and secretary and attested by a majority of its board of directors. Thereafter such statement must also be so filed within sixty days after January first of each year. The corporation must also file in the same offices the appointment of a resident of Alaska upon whom service of statutory service or process may be made. The consent of the statutory agent is no longer required by statute, but since there is no cost for filing the consent it is better procedure to file same. Deeds. A conveyance of lands, or of any estate or Interest therein, may be made by deed, signed and sealed by the person from whom the estate or interest is intended to pass, and acknowledged or proved, and recorded, without any other act or ceremony, provided, however, that in all deeds or conveyances of the family home or homestead made by a married man, or a woman, the husband and wife shall join in such deeds or conveyances. A quit-claim deed passes all the estate which the grantor could convey by deed of bargain and sale. No covenants are implied in any conveyance. The term “heirs,” or other words of inheritance are not necessary to create or convey an estate in fee simple. Wife may convey her lands without joinder of husband. Within the district deeds must be executed in the presence of two witnesses, who shall subscribe their names as such; and the person executing a deed may acknowledge the execution before a judge, clerk of the district court, notary public, or com missioner within the district, and the officer taking the acknowledg ment must indorse thereon a certificate of acknowledgment and the true date of making the same under his hand. Depositions. The testimony of a witness, in the district, may be taken by deposition, in an action, at any time after the service of the summons or the appearance of the defendant, and in a special proceeding after a question of fact has arisen, when, 1, the witness is a party to the action or proceeding, by the opposite party; 2, the witness's residence is more than one hundred miles from the place of trial; 3, the witness is about to go more than one hundred miles beyond the place of trial; 4, the witness is too infirm to attend the trial; or, 5, the testimony is required upon a motion, or in any other case where the oral examination of the witness is not required. The testimony of a witness, out of the district, may be taken by deposition, by commission issued, upon eight days' notice to the other party, by the clerk of the court, or justice of the peace in a cause in his own court, to a person agreed upon by the parties, or, if they do not agree, to a judge, justice of the peace, notary public, or clerk of a court selected by the officer Issuing the commission. The amount of the commissioner’s fees should be indorsed upon the deposition. Descent and Distribution. The real property of an Intestate descends in equal share to children and to the issue of any deceased by right of representation; and if there be no child of intestate living at the time of his or her death, to all his or her other lineal descendants; and if all such descendants are in the same degree of kindred to the Intestate, they take equally; otherwise, by representation. 2. If Intestate leave no lineal descendants, to his wife; or if intestate be a married woman, to her husband; and if intestate leave no wife nor husband, to the parents equally or the survivor. 3. If intestate leave no lineal descendants, neither husband nor wife, nor parents, such real property descends in equal shares to his brothers and sisters, and to the issue of any deceased brother or sister by right of repre sentation. 4. If intestate leave no lineal descendants, nor father, brother, nor sister, living at time of his or her death then real property descends to mother, to exclusion of issue of any deceased brothers or sisters. 6. If intestate leave no lineal descendants, neither hus band nor wife, nor father, mother, brother, nor sister, such real property descends to his next of kin in equal degree, excepting that when there are two or more collateral kindred in equal degree but claiming through different ancestors, those who claim through the nearest ancestor are preferred. 6. If intestate leave one or more children, and the issue of one or more deceased children, and any of such surviving children due under age without having been mar ried. all such real property that came to such deceased child by Inheritance from such intestate descends in equal shares to the other children of such intestate and to the issue of any other children who have died, by right of representation. But if all the other children or Intestate be dead, and any of them have left issue, such real prop erty so inherited by such deceased child descends to all the issue of such other children of the intestate in equal shares, if they are in the same degree of kindred to such deceased child; otherwise, they take by right of representation. 7. If intestate leave no lineal descendants or kindred, such real property escheats to the territory of Alaska. Personal property same as real property except (1) apparel and ornaments to widow (2) payment of debts (3) same as real prop erty except (a) if husband and issue, half to husband; if no issue, all to husband; (b) if widow and issue, half to widow; if no issue, all to widow; (5) if no husband, widow or kindred, all escheats to territory. ..................... Property escheated to the Territory may be recovered by bringing petition for said recovery within seven years after judgment entered In escheat proceedings. Dower and Curtesy. The widow or every deceased person Is entitled to dower, or the use during her natural life of one-third part In value of all the lands whereof her husband died seized of an estate of Inheritance. Evidence. No person may be excluded as a witness on account of being a party or interested in the event of an action or proceedings, having been convicted of a crime, or his opinions on matters of religious belief. Persons of unsound mind and children under ten years of age who appear incapable of receiving just impressions of the fact respect ing which they are examined or of relating them truly may not be witnesses. An attorney may not. without his client's consent, be examined as to communications made by his client to him or his advice thereon. A priest may not, without the consent of the person making the confession, be examined as to any confession made to him in his professional capacity, in the course of discipline enjoined by the church to which he belongs. A physician or surgeon may not, against the objection of his patient, be examined, in a civil action, or proceeding, as to information acquired in attending the patient which was neces sary to enable him to prescribe or act. Executions. (See Judgment and Execution.) Non-residents and infants cannot be appointed or act as executor or administrator, but a married woman, if a resident, may act as either executor or administrator. Executors and Administrators. When a will is proven letters testamentary are issued to the persons therein named as executors, or to such of them as give notice of their acceptance of the trust and are qualified. Administration is granted as follows: 1. To the widow or next of kin. or both, in the discretion of the court; 2. To one or https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis more of the principal creditors; or, 3, to any other person competent and qualified whom the court may select. If deceased were a married woman administration shall in any case be granted to the husband; If qualified, and he apply therefor within thirty days. Claims are paid in the following order: 1. Funeral charges. 2. Taxes due the United States. 3. Expenses of last sickness. 4. All other taxes. 5. Debts preferred by the laws of the United States. G. Debts which at the death of the deceased were a lien upon his property, in the order of the priority of the liens. 7. Debts due for wages earned within ninety days immediately preceding death of decedent. 8. All other claims. Exemptions. 1. Earnings to amount of $100 of judgment debtor, for personal services rendered within thirty days next preceding the levy or execution or attachment, when necessary for the use of his family supported in whole or in part by his labor. 2. Books, pictures, and musical instruments owned by any person, to the value of $75. 3. Necessary wearing apparel owned by any person for the use of himself or family, but watches or jewelry exceeding $100 in value are not exempt. 4. The tools, implements, apparatus, team, vehicle, harness, or library necessary to enable any person to carry on the trade, occupation, or profession by which such person habitually earns his living, to the value of $500; also sufficient quantity of food to support such team, if any, for six months; the word “team” being construed to include not more than one yoke of oxen, or a span of horses or mules, or two reindeer, or six dogs. 5. The following prop erty, if owned by the head of a family and in actual use or kept for use by and for his family, or when being removed from one habitation to another on a change of residence: Ten sheep, with one year’s fleece or the yarn or cloth manufactured therefrom; two cows and five swine; household goods, furniture, and utensils to the value of $300; also food sufficient to support such animals, if any, for six months, and provisions actually provided for family use and necessary for the support of such person and family for six months. 6. The seat or pew occupied by the head of a family or his family in a place of public worship. 7. All property of any public or municipal corporation. No article, or the proceeds derived from its sale or exchange, is exempt from execution on a judgment recovered for its price. Life Insurance policies and reserves or present value thereof are exempt. Garnisbment. (See Attachment.) Holidays. The legal holidays are Sundays; January 1 (New Year’s Day); February 12 (Lincoln’s birthday); February 22 (Washington’s birthday); March 30 (Sewards Day in commemoration of the signing of the Treaty ceding Alaska to the United States); May 30 (Memorial Day); July 4 (Independence Day); the first Monday in September (Labor Day); October 18 (Alaska Day); November 11 (Armistice Day); December 25 (Christmas Day), and any day designated by public proclamation by the President of the United States or the Governor of the Territory of Alaska, as a legal holiday, or as a day of Thanksgiving; the day known and observed as Memorial or Decora tion Day and the day on which a general election is held throughout the Territory of Alaska. Homestead. The homestead of any family, or the proceeds thereof, is exempt. Such homestead must be the actual abode of. and owned by, such family or some member thereof, and not exceed $2,500 in value nor exceed 160 acres in extent, if not located in a town or city laid off into blocks or lots; or if located in any such town or city, one-fourth of an acre. This exemption does not apply to decrees for the foreclosure of any mortgage property executed; but If the owners of such homestead be married, the mortgage must be executed by husband and wife. Interest. The legal rate of interest is 6 per cent, but on contract Interest at the rate of 10 per cent may be charged by express agree ment of the parties. Judgments bear interest at 6%. If usurious interest has been received or collected the party paying the same, or his legal representatives, may, by action brought within two years, recover double the amount of such interest. If it is ascertained in any action upon contract that an unauthorized rate of interest has been contracted for, judgment must be rendered against the defendant for the amount due, without interest, and against the plaintiff for costs. If the rate contracted for is 8 per cent or less, the debtor may also agree to pay the taxes upon the debt, credit, or mortgage. Judgment and Execution. A judgment Is docketed Imme diately after entry. At any time thereafter while execution may Issue a certified transcript of the docket may be filed in the office of the recorder of any recording district, and from the date of docket ing a judgment or transcript thereof the judgment is a lien upon all the real property of the defendant within the recording district or districts where docketed, or which he may afterwards acquire therein during the time an execution may issue. If no execution Issues within ten years the lien expires, but is renewed if afterwards leave is given to issue execution and a transcript of the docket of the order docketed with the recorder. Execution may issue at any time within five years from the entry of the judgment, and thereafter on order of the court made on motion of the party in whose favor the judgment was given. Such motion must be subscribed and verified as a complaint, and summons must be served upon the judgment debtor or his representatives, to which he or they may demur or answer. The order made must be dock eted as a judgment. Execution may be against the property of the Judgment debtor, his person, or for the delivery of the possession of real or personal property, or such delivery with damages. Execu tion from the district court is returnable within sixty days; from the commissioner’s court within thirty days. Until a levy property Is not affected by the execution. Licenses. (See Taxes.) Liens. Every mechanic, artisan, machinist, builder, contractor, lumber merchant, laborer, teamster, drayman, and other person performing labor upon or furnishing material of any kind to be used In the construction, development, alteration, or repair, either in whole or in part, of any building, wharf, bridge, flume, ditch, mine, tunnel, fence, machinery, or aqueduct, or any structure or superstructure, has a lien upon the same for the work or labor done or material fur nished at the instance of the owner of the building or other improve ment or his agent: and every contractor, sub-contractor, architect, builder, or other person having charge of the work, in whole or in part, is. for this purpose, deemed the agent of the owner. Statutory liens given to: (a) person who makes, alters, repairs, or bestows labor on any article of personalty at request of owner or lawful possessor; (b) person who is a common carrier or who shall, at request of owner or lawful possessor, carry, convey, or transport personalty from one place to another; (c) any person who shall safely keep or •tore any grain, wares, merchandise, and personalty at request of owner or lawful possessor; (d) any person who shall pasture or feed any horses, cattle, hogs, sheep or other live stock, or bestow any labor, care or attention upon them, at request of owner or lawful possession; (e) laborers and loggers for labor on or in assisting to obtain any sawlogs, spars, piles, cordwood, fuelwood, shingle bolts, or other timer; (f) laborers, material men and contractors for work, labor and material! for the construction altering, digging, drilling, boring, operating, completing or repairing of gas wells, oil wells, or other wells, gas pipe lines or oil pipe lines; (g) laborers and material men for labor or materials furnished that contribute to the preparation of fish or aquatic animals for food, fish meal, fertilizer, oil or other article of commerce; (h) laborers, minors and watchmen for labor and work in, on or about mines and mining property. Limitations. Civil actions must be commenced within the following periods after the cause of action accrued: Within ten years—action for the recovery of real property, or the possession thereof; upon a judgment or decree of any court of the United States, or of any state or territory within the United States; upon a sealed Instrument. Within six years—action upon a contract or liability, express or implied, except judgment or sealed instrument; upon a liability created by statute, other than a penalty or forfeiture: for BANKING AND COMMERCIAL LAWS—ARIZONA waste or trespass upon real property; for taking, detaining, or injuring personal property, including an action for the specific recovery thereof on a mutual, open and current account. Within three years— action against a marshal, coroner, or constable, upon a liability incurred by the doing of an act in his official capacity or in virtue of his office, or by the omission of an official duty, including the non-payment of money collected upon execution, but not an action for an escape; action upon a statute for penalty or forfeiture, where the action is given to the party aggrieved, or to such party and the United States, except the statute prescribe a different limitation Within two years—action for libel, slander, assault, battery, seduc tion, false imprisonment, or for any injury to the person or rights of another not arising on contract; upon a statute for a forfeiture of penalty to the United States. Within one year—action against the marshal or other officer for the escape of a person arrested or imprisoned on civil process; upon a statute for the penalty given in whole or in part to the person who will prosecute, but if not com menced within one year by private party may be within two years by the United States. No acknowledgment or promise is sufficient to take the case out of the operation of the statute unless some memorandum is made in writing and signed by the party to be charged or some payment made on principal or interest. If case is with reference to realty the instru ment signed by the party to be charged must be acknowledged and recorded in the office where original instrument or contract filed or recorded. Statute does not run while party out of the Territory or concealed therein. Married Women. The property and pecuniary rights of every married woman at the time of marriage, or afterwards acquired by gift, devise, or inheritance, or by her own labor, are not subject to the debts or contracts of her husband, and she may manage, sell, convey, or devise the same by will to the same extent and in the same manner that her husband can property belonging to him. For civil injuries damages may be recovered from a married woman alone, and her husband is not responsible therefor. Contracts may be made by a wife, and liabilities incurred, and the same enforced by or against her to the same extent and in the same manner as if she were unmarried. All laws which impose or recognize civil disa bilities upon a wife which do not exist as to the husband are repealed. Wife may record list of her personal property and such list is prima facie evidence of her separate ownership, and property not so registered is deemed prima facie the property of the husband. Neither husband nor wife is liable for the debts or liabilities of the other incurred before marriage. Husband and wife may make conveyances and transfers and create liens between themselves, and either may con stitute the other his or her attorney in fact. A woman becomes of age at twenty-one or upon being married according to law. Mortgages. Mortgages are executed, acknowledged, and recorded In the same manner as deeds. No covenant is implied for the pay ment of the sum intended to be secured. Record of assignment is not notice to the mortgagor, his heirs, or personal representatives. Mortgage may be discharged by entry in margin of record signed by mortgagee or his personal representative or assignee and witnessed by the commissioner or deputy, or by certificate executed and ac knowledged as other conveyances. Foreclosure is by action of an equitable nature in which a deficiency judgment may be had. But judgment of foreclosure does not bar equity of redemption and property may be redeemed in the same manner and effect as real property sold on an execution issued upon a judgment for payment of an unsecured debt. No mortgage moratorium on foreclosure has been enacted. Negotiable Instruments. Uniform Negotiable Instrument Act (adopted ). (See complete text following “Digest of Banking and Commercial Laws.”) Records. An unrecorded conveyance of real property is void as against anv subsequent innocent purchaser in good faith and for a valuable consideration whose conveyance is first duly recorded. A commissioner is ex-officio recorder of a recording district, the boundaries of which are fixed by the court. Conveyances of lands not in any recording district are recorded with the clerk of that divi sion of the district court within the limits of which such lands are situated. Replevin. The plaintiff, at any time after the commencement of an action to recover the possession of personal property and before Judgment, may claim the immediate delivery of such property upon filing an affidavit showing that he is the owner of the same or entitled to the possession thereof; that the property is unlawfully detained by defendant; the alleged cause of detention; that the same has not been taken for a tax assessment or fine, pursuant to a statute, or seized under an execution or attachment against the property of the plaintiff: or, if so seized, that it is exempt: and the actual value of the property and by delivering an undertaking in twice the value of the property to be replevined to the Marshal or officer retaking the property. Service. (See Actions.) Supplementary Proceedings. (See Judgment and Execution.) Taxes. No general property tax except in Municipal corporations’ but both the United States and the territory levy and collect license taxes upon occupations and businesses, the amount of which differs on the several different occupations and businesses. Profit taxes on sale, where lien continues in favor of Territory for six months after report of taxes due said Territory. Uniform laws: Negotiable instruments act; bills of lading act; air licensing act; general partnership act; limited partnership act; foreign acknowledgements act; sales act; stock transfer act; warehouse receipt act; conditional sales act; desertion and non-support; federal tax lien registration act; foreign depositions act; foreign executed wills; extradition of persons of unsound mind; tax on transfer of personal property of non-resident; proof of statutes. Wills. Every person of twenty-one years of age, of sound mind, may dispose of all his or her property by will, saving a widow’s dower and a husband's rights as tenant by the curtesy. Will must be in writing, signed by the testator, or under his direction, in his presence, and attested bv two or more competent witnesses subscribing their names in the presence of the testator provided that olographic wills, with or without attestation, shall be admitted to probate the same as other wills and proved the same as other private writings. "Will” includes “Codicils.” A will by an unmarried person is revoked by his subsequent marriage. Children or descendants of children not named or provided for in the will take as if testator had died intestate. A mariner at sea or soldier in military service may dispose of his personal property as at common law. Proof of nuncupative will must be made within six months, and the words or their substance reduced to writing within thirty days after they are spoken. A person owning property in, but not an inhabitant of, the district may devise or bequeath the same according to the laws of his domicile. If such will be probated without the district, copies of the will and the probate thereof, certified by the clerk of the court in which it was probated, with the seal of the court affixed thereto, if there be a seal together with a certificate of the chief judge or presiding magistrate, that the certificate is in due form, and made by the clerk or other person having the legal custody of the record, may be recorded, admitted in evidence, or contested and annulled as if executed and proved within the district. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1751 SYNOPSIS OF THE LAWS OF ARIZONA RELATING TO BANKING AND COMMERCIAL USAGES Revised by C. B. Wilson, Attorney at Law. Flagstaff, Arizona. (See Card in Attorneys List) Accounts. When stated draw interest; when action is upon open account and affidavit of party, his agent or attorney, is attached, stating that such “account is within affiant’s knowledge, just and true, that it is due, and that all just and lawful offsets, payments and credits have been allowed,” is prima facie evidence, unless at least one day before trial, defendant files written denial of any item under oath. Acknowledgments. The form of an ordinary certificate of ac knowledgment shall be substantially as follows: " State of Arizona, ) „„ County of.................................................................................... ) BS This Instrument was acknowledged before me this................day of.....................A. D......................... by (if by a natural person or persons here Insert name or names; if by a person acting In a representative or official capacity, or as attorney in fact, then Insert name of person as executor, attorney in fact, or other capacity; if by an officer or officers of a corporation, then insert name or names of such officer or officers as the president or other officer of such corporation, naming Notary Public. (Or other officer) (My commission expires............................................) ” Every instrument affecting real property in this state executed, acknowledged and certified in any other state or territory in accord ance with the laws of such state or territory, shall be valid and en titled to record as if executed in accordance with the laws of this state. Actions. Distinction in forms between law and equity are abol ished. Pleadings are: Complaint and answer, and in some cases a reply. Administration of Estates. Lie in Superior Court. No public administrator. Where person dies intestate letters shall issue. Affidavits. May be taken before any officer authorized to take acknowledgments. Aliens. Unless rights are secured by treaty cannot hold land in the state, may acquire by inheritance, or in ordinary course of jus tice in the collection of debts; may acquire liens on real estate, may lend money and secure same on real estate, but title so acquired must be sold within five years; may acquire patented mines and hold stock in domestic corporation owning unpatented mines. The laws provide that the laws of the state pertaining to aliens shall not be construed as to conflict in any manner with any rights existing under and by virtue of any treaty of the United States with any other country. Appeals. Appeals are allowed from Justice of peace to superior court in certain cases and from superior court to supreme court, except in actions of forcible entry and detainer where rental value of property is less than 8300 per year. Arrest. Abolished in civil cases, debtor fraudulently removing property out of territory or concealing it may be prosecuted criminally. Attachment. Writ will issue on affidavit showing: 1. That de fendant is indebted to plaintiff upon a contract, express or implied; for the direct payment of money and that such contract was made or is payable in this State, and that the payment of same has not been fully secured by mortgage or lien upon real or personal property, or pledge of personal property, or if originally so secured, that such security has, without any act of plaintiff or the person to whom the security was given, became valueless, and shall specify the character of the indebtedness, that the same is due to the plaintiff over and above all legal set-offs or counter-claims, and that demand has been made for the payment of amount due; or 2 That defendant is indebted to plaintiff, stating amount and character of debt; that same is due and payable over and above all legal set-offs and counter-claims, and that defendant is a non-resident of this State or is a foreign corporation doing business in this State; or 3. That the action is brought upon a judgment of another State or territory of the United States, or of the District of Columbia; or 4. That an action is pending between the iarties, and that defendant is about to remove his property beyond tha urisdiction of the court to avoid payment of judgment; and 5. That the attachment is not sought for a wrongful or malicious purpose, and that the action is not prosecuted to hinder or delay any creditor of defendant. No such attachment shall issue until suit has been duly instituted, but it may be issued in a proper case either at the com mencement of the suit or at any time during its progress. The writ may issue, although plaintiff’s debt or demand be not due and under specified facts of intent to defraud; no final judgment shall be rendered until such debt or demand shall become due. Writ may issue at or after action began upon plaintiff or some one in his behalf filing the affidavit, and upon filing a bond with two sureties in an amount equal to amount sued for. Sureties can be compelled to justify upon notice. When more than one attachment is levied on same property writs take priority according to time of levy. (See Liens, Garnish ment.) “Banks and Banking. All state banks are under the supervision of the State Banking Department under the management of the Superintendent of Banks. In addition to complying with the general corporation laws, banks must procure permit from Superintendent of Banks before transacting business. Term “bank” includes com mercial banks, savings banks and trust companies. Private or partnership banks are prohibited. Incorporators are governed by general corporation laws but shall be investigated as to character and integrity. Where bank is located in city of 20,000 or less inhabi tants, the directors must own at least $200.00 par value of the stock and at least $500.00 where located in city of more than 20,000 inhabi tants. Notice of personnel of directors must be posted. Officers must give bonds. Every bank other than mutual savings banks must have capital stock of not less than *25,000, and in cities of from 5,000 to 15,000 inhabitants not less than *50,000, in cities from 15,000 to 50,000 not less than *100,000, in cities of over 50,000 not less than *200,000. At least half the capital stock must be paid in cash before certificate of incorporation will issue. No banking corporation is required to have $2,000,000 capital. Of funds available for dividends not less than 25% of net profits shall first be carried to a surplus or reserve fund until such fund shall equal the capital stock. Com mercial banks must maintain as a reserve an amount equal to 15% of the aggregate amount of their deposits and demand liabilities, and. in cities of over 50,000 a 20% reserve shall be maintained. Savings banks must maintain a legal reserve equal to 10% of their deposit liabilities. Provision is made requiring every bank to make not less than three verified reports each year showing the financial condition, which reports must be published in a newspaper. The commercial banks must be examined at least twice a year and all other institu tions receiving deposits at least once a year. The total liability to any bank of any person for money borrowed shall at no time exceed 15% of the amount of the capital stock paid in and of the surplus earned and set aside; provided that loans may be made up to 25% when secured by readily marketable non-perishable, staple com modities in warehouse or in transit. Loans to officer or director shall not exceed 10%. Stockholders are subject to double liability. Banks may open branch offices by permission from Superintendent of Banks if they have a paid in capital and surplus of not less than $50,000 plus *15,000 of additional capital and surplus for each branch so authorized. J 1752 BANKING AND COMMERCIAL LAWS—ARIZONA Bills and Notes. The negotiable Instrument code adopted by the American Bar Association is in force. Joint obligor may be released without releasing others. (See Holdings.) Bonds. Any standard surety company, organized under laws of United States or of any state, may execute bonds in judicial proceed ings within the state when they have complied with license laws. (See Guaranty Companies.) Chattel Mortgage. To be valid against others than the parties thereto, chattel mortgage must set out the residence of the mortgagor and the mortgagee, the sum to be secured, the rate of interest to be paid and time and place of payment of the debt secured, and be accompanied by the affidavit of both mortgagor and mortgagee that the mortgage is bona fide and made without design to defraud or delay creditors. Void as against creditors of mortgagor and subse quent purchasers, mortgagees or lien holders in good faith unless immediate delivery of the mortgaged property is made to the mort gagee and the change of possession is actual and continued, unless the mortgage or a true copy thereof shall be forthwith deposited and filed in the office of the recorder of the county where the property shall then be situated. Removal sale, or other disposition of mortgaged property without consent of mortgagee entitles mortgagee to imme diate possession of it, and such removal, transfer, or sale, or subsequent encumbrance is felony. If mortgagee permits mortgaged property to be removed to another county, he shall within one month record his mortgage in such other county. Chattel mortgage may be fore closed by notice and sale or by proceedings in superior court. Mort gagee may obtain possession of property on default and sell after notice which must be served on owner. After notice mortgagor may contest as to amount due and right to foreclose and have procedings transferred to superior court. Upon stock of goods, wares, and merchandise with continued possession in mortgagor, void. If copy is filed with recorder, original must be acknowledged, and copy certified to by county recorder. Claim and Delivery. (See Replevin.) Collaterals. No statutory provisions—common law prevails. Community Property. (See Conveyances.) Conditional Sales. Where title remains in vendor until purchase price is paid, void as to persons not parties thereto, and persons without notice, unless subscribed, and filed with county recorder. Contracts. (See Bills and Notes.) One or more obligors on a Joint or joint and several instrument may be released without releasing the others, and may be sued separately under certain conditions with out releasing the others. Married women may contract as if sole. Conveyances. Conveyances of estate in lands for term more than one year shall be by instrument in writing subscribed by party making It, or his agent, duly authorized thereto by writing. A conveyance is not effectual against creditors or bona fide purchasers unless recorded In recorder's office in county where land is situate. A conveyance purporting to convey a greater estate than the grantor has passes only the estate that he actually has. A general grant or devise passes the fee unless expressly limited to a less estate. All deeds to community realty must be signed by both husband and wife except as to unatented mining claims. Deeds must be signed and must be acnowledged before some officer authorized to take acknowledgment, and properly certified by him to entitle same to registration. The use of the word “grant" or “convey” implies the following covenants and none other 1. That previous to the time of the execution of the conveyance the grantor has not conveyed the same estate, or any right, title or interest therein, to any person other than the grantee. 2. That such estate is at the time of the execution of such conveyance free from incumbrances. Married women 21 years of age and upward may convey their own lands without being joined by their husbands. (See Acknowledgment, Dower, Husband and Wife, Homestead.) Corporation Commission, organized under Chapter 90, First Session, Laws 1912. Has general supervision of corporations. Corporations In General. Any number of persons may become Incorporated for the transaction of any lawful business. Before com mencing any business, they must adopt articles of incorporation which shall be signed and acknowledged by them as deeds and be filed In the office of the Corporation commission at the State Capital and a certified copy thereof filed in the office of the County Recorder In each county in the state in which they transact business. The articles of incorporation must contain: 1. The name, residence and Post Office address of incorporators, the name of the corporation, which name shall indicate the character of business to be conducted, and its principal place of transacting business. 2. The general nature of the business proposed to be transacted. 3. The amount of capital stock authorized and the times when and conditions upon which it is to be paid in. Stock without par value may be issued. 4. The time of the commencement and termination of the corporation. 5. By what officers or persons the affairs of the corporation are to be conducted, and the times at which they are to be elected. 6. The highest amount of indebtedness or liability to which the corporation is at any time to subject itself, which must not exceed two-thirds of its capital stock. In case no par value stock indebtedness shall be computed by rules and regulations of Corporation Commission. Provided such limitation shall not apply to indebtedness authorized by three quarters of the votes cast with respect thereto, in conformity with provisions of Articles of Incorporation and by-laws of any such corporation, at a lawful meeting of the stockholders thereof, and approved by the Corporation Commission; the rediscounting of securities representing lawfully made loans, or the pledging or guaran teeing of said securities, with the Federal Intermediate Credit Bank, the Regional Agricultural Credit Corporation, or any other Federal Agency or any Bank or Banking institution, if authorized by Articles of Incorporation, and approved by the Corporation Commission, shall not be construed as a creation of indebtedness within the meaning of this section. 7. Whether private property is to be exempt from corporate debts. Unless so exempted stockholders are liable for the debts of the corporation in the proportion which their stock bears to the whole capital stock. Must be published for six times in some newspaper in the county where the principal business is located. Proof of publication must be filed with the Corporation Commission. Corporations to endure for twenty-five years. Corporation must file In office of Corporation Commission an appointment of agent who is a bona-fide resident of this state for three years prior thereto, on whom all notices and process including summons, may be served and constitutes personal service. Charges for incorporation. Recorder’s fees, 20 cents folio. Recorders fees, certified copy, 20 cents folio. Recorder’s fees certificate to copy, 75 cents. Corporation Commis sion's fees, filing cost copy, $10. Certificate of filing Articles of In corporation $5.00. Certificate of incorporation $10.00. Corporation Commission’s fees, filing appointment of agent, $5.00. Where charter provides assessments may be levied on shares to par value. Corporations, Foreign. Before it can transact business it must file certified and duly authenticated copy of Articles with Corporation Commission and also an appointment of agent upon whom a service personal to the corporation may be made in each county in which it transacts business. Publish its Articles of Incorporation and file affidavit thereof as required of domestic corporations. Pay license fee of $16.00. Corporations, Insurance. May be organized under provision peculiarly applicable to insurance companies. Corporations, Railroad. Are organized under a statute espe cially providing for them. Corporations. Savings and Loan. (See Banks and Banking.) Corporation Stock, Transfer of. Transfer of stock shall not be valid, except as between the parties thereto, until the same is regularly entered upon the books of the company, so as to show the names of the person by whom and to whom the transfer is made; the number of their designation of the shares, and the date of the transfer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Costs. Plaintiffs who are non-residents, or those who own no property upon which execution may be levied, are required to give security for, within ten days after order made; bonds for, must authorize judgment to be entered against sureties. Courts. Are the Supreme Court of the State, the U. S. district court for the District of Arizona; one superior court for each County, except In counties having over certain population in which event two superior courts, justices of the peace, police courts, recorders of cities. The superior court of the several counties is a court of general jurisdiction, both civil and criminal. It has both original and appellate jurisdiction. Its original jurisdiction extends to all civil cases where the amount Involved exceeds $200 exclusive of interest, and in all cases involving the title to or possession of real estate. Justice courts have general Jurisdiction when amount in controversy does not exceed $200.00, except when title to real estate is involved. (See Jurisdiction.) Days of Grace. None. Depositions. May now be taken either upon oral examination, and cross-examination or upon written interrogatories and cross interrogatories, as is generally provided. Descent and Distribution. The law of community property prevails. Upon the death of husband or wife intestate, one-haif of the community property goes to the survivor and the other half goes to his or her descendants. In the absence of such descendants the entire community estate goes to the survivor. The interest of either spouse in the community is subject to testimentary disposition. The entire community estate is charged with debts against it. The separate estate of intestate shall descend as follows: Personal Property: one-third to the surviving spouse and the remaining twothirds to descendants. In absence of such descendants the entire personal estate goes to surviving spouse. Real Estate. Estate for life in one-third with remainder to de scendants. If no descendants one-half to surviving spouse and the other one-half shall pass according to rule of descent and distribution; provided that if the intestate leaves neither father nor mother, then the surviving spouse shall be entitled to the whole of such real estate. If no husband or wife survive intestate, the separate property shall pass as follows: 1. to children of intestate and his or her descendants. 2. If no such children or descendants then to father and mother in equal proportions. If only one parent survives, then one-half will pass to such parent and the other half to brothers and sisters of intestate and their descendants. If no brothers or sisters, then the whole estate shall pass to the surviving parent. If no brothers or sisters or parents then the inheritance shall divide into moites, one of which shall go to the paternal grand parents and their descendants and the other to the maternal grand parents and their descendants (See Dower, Husband and Wife, Homestead). Dower. Dower is abolished. Evidence. The common law rules have not been codified. Parties may be examined and the other side not concluded thereby. Statutes of other states and territories purporting to be printed under authority may be read. No one is incompetent to testify because of religious belief. Certified copies of all records in state may be read. Certi fied copies of records of all notaries may be read. Court may order Inspection or copy of documents. Executions. Upon a judgment of superior court, executions may be issued to any county; Lien of dates from levy, and if on real prop erty, the description Is endorsed on execution and filed with county recorder. A range levy may be made upon all of stock under a certain brand in same manner as upon real estate. (See Judgment, Liens.) Proceedings supplemental to execution—when returned unsatisfied creditor is entitled to an order requiring debtor to answer concerning his property, but not elsewhere than in the county of his residence. Third parties may, upon affidavit, be required to surrender property. Court or judge may order suit brought to determine the denial of owning or of having property. Exemptions. Every person who is the head of a family, and whose family resides within this state, may hold as a homestead, exempt from attachment, execution and forced sale, real property to be selected by him or her. which homestead shall be in one com pact body, not to exceed In value four thousand dollars, upon filing affidavit designating such homestead In the Office of the County Recorder in county where property is situated. Such homestead exempt from date of filing said affidavit. The following property shall be exempt from execution, attachment, and sale on any nrocess Issued from any court: 1. The family bible. 2. A seat or pew in any house or place of public worship. 3. A lot in any burial ground. 4. Necessary household, table and kitchen furniture, including viz: 6. The tools or implements of a mechanic or artisan necessary to carry on his trade, etc. 6. The sewing machine and implements of a seamstress actually used in pursuing her vocation. 7. One watch, one sewing machine, one typewriting machine, and one bi cycle. 7a. Five milch cows. 8. The camping outfit of every prospector in this state, including his mining tools, saddles and burros. 9. The farming utensils and implements of husbandry of the debtor, etc. 10. Poultry not exceeding in value twenty-five dollars. 11. Two horses and two mules and their harness; one cart or wagon; one dray or truck; one coupe; one hack or carriage for one or two horses or one automobile by the use of which a carman, drayman, truckman, huckster, hackman, teamster, chauffeur, or other laborer habitually earns his living, and one horse with vehicle or harness or other equipment used by a surgeon, physician, constable or clergyman In the legitimate practice of his profession, with food for such horses or mules for one month. 12. Fuel necessary for the use of the debtor and his family for the period of six months. 13. The presses, stones, type, cases and other tools and implements used by any person or copartnership in printing or publishing a newspaper or in conducting any printing establishment or by any person hired to use them; not exceeding two thousand dollars in value; together with stock in trade not exceeding four hundred dollars in value. 14. The library and philosophical and chemical or other apparatus belonging to and used for the instruction of youth in any university, college, seminary of learning or school. 15. All moneys received by or payable to a surviving wife or child upon the life of a deceased husband or father, not exceeding ten thousand dollars. 16. All moneys arising from fire or other insurance upon any property exempt from sale on execution. 17. All moneys, relief, or other benefits payable to or to be rendered by any police department association, fire department association, beneficiary association, or fraternal benefit association, and any person entitled to assistance therefrom, or to any certificate holder thereof or beneficiary under such certificate. 18. Any claim for damages recoverable by any person by reason of any levy upon or sale under execution of his exempt personal property or by reason of the wrongful taking or detention of such property by any person, and any judgment recovered for such damages. 19. The earnings of the minor child of any debtor or the proceeds thereof by reason of any liability of such debtor not contracted for the special benefit of such minor child. 20 One half of the earnings of the wages or salary of any person for Lis per sonal services rendered at any time within thirty days next pre ceding the levy of attachment, garnishment or execution when it appears by the affidavit of the debtor or otherwise that such earnings are necessary for the use of the family residing in this state, supported in whole or in part by him. 21. All arms, uniforms and accoutre ments required Dy law to be kept by any person, ana also one gun to be selected by the debtor. 22. All fire engines........... of any fire department. 23. All courthouses, jails, etc. The property de clared to be exempt by this chapter shall not be exempt from at tachment or sale in any action brought or judgment recovered for the purchase price of such property so long as such property remains in the possession of the original purchaser. (See Homestead, Liens.) BANKING AND COMMERCIAL LAWS—ARIZONA Frauds and Fraudulent Conveyances. Agreements must be In writing and signed by the parties to be charged: 1. By an executor or administrator to answer for the debt of his testator or intestate out of his own estate. 2. By a person to answer for the debt, default or miscarriage of another. 3. To charge any person upon an agreement made upon consideration of marriage 4. For sale of real estate or lease thereof for a term longer than one year. 5. Those which are not to be performed within the space of one year after the making thereof. 6. A contract to sell or a sale of any goods or choses in action, of value of *500.00, or upwards, unless buyer accept and actually receive the same or give something in earnest to bind the contract. 7. An agreement authorizing or employing an agent or broker to purchase or sell real estate, or mines, for compensation or commission. 8. An agreement which is not to be performed during lifetime of the promisor, or an agreement to devise or bequeath any property, or to make any provision for any person by will. Every gift, conveyance, or assignment, or transfer, or charge upon any estate, real or personal; any suit commenced on decree, judgment, or executions suffered or obtained, or any bond or other writing given with intent to delay, hinder, or defraud creditors, purchasers or other persons, shall to such persons be void. All bargains, sales, and other conveyances of lands, tenements, and hereditaments, deeds of settlement of marriage, deeds of trust, and mortgages, are void as to creditors and subsequent purchasers, without notice, unless properly recorded. The creditor must be a judgment creditor, and notice must be prior to date of judgment lien. A judgment creditor may be an innocent purchaser. Every gift, conveyance, assignment, transfer or charge made by a debtor, which is not upon consideration deemed valuable in law shall be void as to prior credi tors, if debtor had not then other property in the State sufficient to pay all his indebtedness. Not on that account, however, void as to subsequent creditors. No gift of any goods and chattels shall be valid unless duly acknowledged, or proven and recorded, or by will, or unless actual possession shall have come to and remained with the donor or some one claiming under him. Fraudulent intent Is a question of fact and not of law. Conveyance shall not be adjudged fraudulent merely because not for valuable consideration. If any person shall do or transact business as a merchant or trader, with the addition of the words agent, factor, company, or & Co., or words of like significance or import, and shall fail to disclose the name of his principal, or partner, or other person who may be interested in such business by a sign in letters easy to read, placed conspicuously at the place where such business is transacted, or if any person shall transact business in his own name, without any such addition, all the property, stock, money and choses in action used or acquired in such business except such property as may be exempt from execution, shall, as to the creditors of any such person, be liable for his debts, and be, in all respects, treated in favor of his creditors as his property. Criminal prosecution for fraud is provided. (See Conditional Sale.) Garnishment. Writ may issue: 1. Where writ of attachment has issued. 2. Upon affidavit that the debt is just due, and unpaid, and that defendant has not, within affiant’s knowledge, property in his possession subject to execution sufficient to satisfy such debt, and that the writ is not sued out to injure either the defendant or garnishee. 3. Upon judgment, when affiant makes affidavit that the defendant has not, within his knowledge, property in his possession within this State sufficient to satisfy said judgment. Proceedings under sub division 2 requires a bond in double the amount of the debt, condi tioned that plaintiff will prosecute the suit to effect, and pay all damages and costs that may be adjudged against him for wrongfully suing out the garnishment. The proceedings are docketed and judg ment rendered as if in an independent proceeding. Salaries of a public officers of the State of Arizona or any of its political subdivisions are subject to garnishment. (See Attachment.) Holidays. The following days are legal holidays: Sundays; January 1 (New Year’s Day); February 14 (Admission Day—state hood); February 22 (Washington's birthday); second Sunday in May, known as Mother’s Day; May 30 (Memorial Day); July 4 (Inde pendence Day); first Monday in September (Labor Day); October 12 (Columbus Day); general election day; November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day); and Arbor Day, which is Friday following April 1 in Apache, Navajo, Coconino, Mohave and Yavapai counties, and Friday following February 1, in all other counties. Any promissory note, bank check, bill of exchange, acceptance, or other negotiable instrument, made payable at any future period, which falls due on any of these days mentioned, shall be considered due and collectible on the day following, and when any holiday, except Mother's Day, shall fall upon Sunday, then the Monday following shall be considered as a legal holiday. Writs of injunctions, attachments, replevin, and prohibition may be issued and served on. Homestead. Deed to, must be signed by husband and wife. (See Exemptions.) Husband and Wife. All property, both real and personal, of the husband or wife, owned or claimed by him or her before mar riage, and that acquired afterward by gift, devise, or descent, as also the increase, rents, issues, and profits of the same, shall be his or her separate property. The earnings and accumulations of the wife and her minor children in her custody while she has lived or may live separate and apart from her husband, shall also be the separate property of the wife. All property acquired by either husband or wife during the marriage, except that which is acquired by gift, devise, or descent, or earned by the wife and her minor children while she has lived or may live separate and apart from her husband, shall be deemed the common property of the husband and wife, and during the coverture personal property may be disposed of by the husband only. Married women of the age of twenty-one years and upwards shall have the same legal rights as men of the age of twenty-one years and upwards, except the right to make contracts binding the common property of the husband and wife; and shall be subject to the same legal liabilities. (See Dower. Conveyance.) Injunction. Is issued, where party is entitled to relief and restraint, is required of some prejudicial act; where, pending litiga tion, an act is done which tends to render judgment ineffectual, and when applicant is entitled under principles of equity. Under certain conditions may be granted ex parte at chambers or by consent. Bond may be fixed by judge and approved by clerk, except to restrain collection of money judgment, when it must be double the amount of such judgment. Injuries—Personal. Workmen’s Compensation Act in force. Insurance. (See special chapter pertaining to Insurance.) Interest. May contract, in writing, for any rate of, not exceeding 8 per cent per annum. Any rate exceeding this is usurious. When no express contract, on bond, bill, note, or instrument of writing, or judgment, for money lent, or due on settlement of accounts from date of ascertained balance, and money received for use of another. Interest is computed at 6 per cent per annum. Judgments. Judgments of superior courts become a lien upon all real estate of judgment debtor in the county as soon as entered and docketed. Upon filing with the clerk of the superior court a transcript of judgment from justice court or of superior court of another county, the same becomes a lien on all real estate of judgment debtor in the county. No execution can be issued on any judgment after the expiration of five years from the date of its rendition and entry, unless such judgment be revived by scire facias or action for debt be brought thereon within such five years. Judicial Bonds. (See Bonds.) Levy. (See Executions.) Licenses. For gambling prohibited. Liens. All persons who may labor or furnish materials in the con struction or repairing of any building, superstructure, canals, dams, mines, or other improvement, or cuts cordwood. shall have a lien on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1753 the same, and in case of buildings and superstructures, on the lot of land whereon the same is situate and connected therewith. To fix and secure the lien, the person performing labor or furnishing material must, within sixty days after the completion of such labor or the fur nishing of materials, file his contract in the office of the county recorder where the property is situate. If the contract be verbal, a duplicate copy of the bill of particulars should be made, under oath, and one delivered to the recorder and filed for record and the other furnished the party owing the debt, or his agent. Laborers’ and like liens are preferred to all subsequent liens, mortgages, and incumbrances, and such as lien claimant had no notice. Suit to foreclose such liens must be commenced within six months after filing the same in the recorder's office. In case of the levy of writ of attachment or execution, clerks, laborers, and employes of debtors have a preference claim for wages for service performed sixty days before levy of writ, not exceeding *200. upon filing notice of claim unpaid with creditor, debtor, and officer executing writ. Proprietors of hotels, boarding houses, and lodging houses have special lien on all property or baggage deposited with them by guests for price of guests' entertainment. Agister and liveryman, garagemen, have lien by statute. (See Judgment, Mort gage.) Limitations. To recover realty against person in peaceable and adverse possession under color of title, three years; against such posses sion where person pays taxes and has deed recorded, five years, other wise ten years; to recover lots in city or village against person having recorded deed, and pays taxes, five years; where party in possession claims by right of possession only, two years. Personal Actions— One year: Malicious prosecution, false imprisonment, libel, slander, seduction, breach of promise. Action on liability created by statute, other than a penalty or forfeiture must be brought within one year from discovery of fraud. Two years: Personal injuries, trespass to property, detention or conversion of personal property to own use. taking and carrying away goods and chattels: and injuries to person wnere death ensues,to accrue from date of death. Three years; Actions for debt not in writing; on stated or open accounts other than mutual between merchants or their factors and agents: all accounts, except as between merchants and factors and agents, limi tations run from date of each item of delivery. Actions for relief on ground of fraud or mistake. Four years: For penalties or dam ages on any bond to convey real estate; between partners for settle ment of partnership accounts; on mutual or current accounts between merchants, their factors or agents, to accrue from cessation of deal ings; upon judgment or instrument without the State; bonds of executors, administrators, or guardian, after death, removal, etc.; specific performance: to contest will after discovery of fraud; and where no provision is otherwise made. Five years: On domestic judgment where execution has been issued within one year after rendition. Six years: debt evidenced by writing within the state. Action to foreclose lien of mechanic or materialman must be brought within six months after filing for record. Mines unpatented are real estate for the purpose of inheritance and conveyance. Location requires seven monuments, three at each end, and one at discovery, in which notice is to be placed on discovery; title work consisting of a shaft 4x6x8 feet deep, or its equivalent in an open cut so that mineral in place is discovered 8 feet from the surface must he done and notice recorded within three months, and annual assessment work amounting to *100, maintained each year thereafter, until patent is ordered. Minors. (See Savings Banks.) Mortgages. All mortgages of real property and all deeds of trust In the nature of mortgages shall, notwithstanding any provision in the mortgage or deed of trust, be foreclosed by action in a court of com petent jurisdiction. Courts authorized to grant continuance for period of two years from March 4, 1933, upon conditions respecting ossession and payment and application of rentals and income to and y clerk of Superior Court. Failure of mortgagee to lawfully release a satisfied mortgage for ten days after demand for the release, subjects him to liability for *100 and actual damages. Mortgages on real estate are executed, acknowledged and recorded as conveyances of real estate. (See Conveyances, Chattel Mortgage, Acknowledgments, Redemption.) Negotiable Instruments. Uniform Negotiable Instruments Act adopted. See complete text following “Digest of Banking & Com mercial Laws.” Notary Public. In all certificates and acknowledgments the date of expiration of commission must be stated, as “commission expires". Notary must reside in county for which appointed and has no juris diction outside of said county. Notes and Bills of Exchange. (See Bills and Notes). Partnerships using fictitious names must file with County Recorder certificate showing names of partners and their residences, which must be signed and acknowledged by all partners. Powers of Attorney. No special statutory provisions relative to. To confess judgment must be executed subsequent to maturity of debt confessed, and must be acknowledged. To convey lands or release mortgages should be acknowledged as deeds, and recorded. Probate Law. (See Savings Banks and Administration of Estates.) Protest. Liability of drawer or indorser of bill or note may be fixed by regular protest and notice, etc., according to the negotiable instruments code. (See Bills and Notes.) Records. The superior courts of each county are courts of record. The recorder’s office in each county relates to titles of real estate and personal property, and probate record instrument therein is uotice. The minutes of the Sanitary Live Stock Board are notice of all brands and marks of live stock. Redemptions. From Sheriff or judicial sales, six months, by Judgment debtor, or successors in interest. Senior creditor subsequent to judgment having a lien on the premises sold, may redeed within five days after expiration of said six months, and each subsequent lien holder, according to priority of lien, within five days after time allowed the prior lienholder, by filing with County Recorder statutory notices of intention to redeem. The same rule applies to foreclosure of mortgages and trust deeds. Redemption from tax sales 3 years. Replevin. For possession of specific personal property which has not been seized under any process, execution or attachment against the property of the plaintiff. Sales. The "uniform sales law” is in force. Seals. Addition or omission of seals or scrolls to instruments of writing in no way affect the force and validity of the instrument. Instruments executed by corporations must have a corporate seal attached. Service. All summons upon persons shall be personal, or by leaving a copy with copy of complaint at the usual place of residence, of defendant, with a member of his family over the age of sixteen years; against incorporated city, or town, or village; upon major, clerk, secretary, or treasurer; against incorporation or joint stock associa tion, upon president, secretary, or treasurer, director or local agent representing company, or by leaving a copy of summons and com plaint at the principal office during office hours; upon any railroad, telegraph, or express company, or any agent of such company who resides in or may be found in the county where suit is brought; upon domestic corporation by serving on statutory resident agent, and where there is no officer upon whom service can be made in the State, ser vice may be had by delivering duplicate copies of summons and com plaint to the secretary of the Corporation Commission, and upon foreign corporation by delivery to statutory agent. Personal service of summons may also be had by serving upon defendant by registered mail, as provided in statutes. Suits. (See Actions.) 1754 BANKING AND COMMERCIAL LAWS—ARKANSAS Taxes. Aside from those levied by legislative enactment for specific purposes, as for the construction and maintenance of public institutions, etc. State taxes are levied by the State Board of Equal ization; county taxes by the boards of supervisors of the several tounties, and city taxes by the common councils of the various cities. Railroads are valued for the purpose of taxation by the State Board of Equalization. Other property is valued by county assessors. The assessing of value begins in January of each vear. The lien attaches on the first Monday of January of each year. One-half of taxes be come due and payable on first Monday in September and become delinquent on the first Monday in November next thereafter. Re maining one-half become due and payable on first Monday in March and become delinquent on first Monday in May next thereafter. The penalty for delinquency is 4 per cent added thereto and interest from date of delinquency until paid at rate of 10 per cent per annum. County Treasurer shall advertise property for sale for delinquent taxes and sell same not earlier than the first of October nor later than the first day of November. Transfer of Corporation Stocks. (See Corporations.) Warehouses. Personal property in, may be sold for unpaid charges. Wills. Wills must be in writing, signed by the testator, or by some one for him, in his presence and by his direction, and must be attested by two or more credible witnesses above the age of fourteen years, in the presence of each other and the testator. When the will is wholly written by the testator, no witnesses are necessary. Nun-cupative wills may be made when property willed does not exceed in value $50, unless it be proved by three credible witnesses that the testator called on some person to take notice and bear testimony that such is his will, and that the testimony, or the substance thereof, was com mitted to writing within six days after the making of such will; in such case the amount willed is not limited. Wills are revocable by subsequent will, codicil, or declaration in writing, executed with like formalities as in execution of will, or by testator destroying, canceling, or obliterating the same, or causing it to be done in his presence, or by subsequent marriage, and no provision is made for wife. Foreign wills, the probate whereof is duly authenticated, may be probated here. Contests of wills can not be initiated after one year from date of probating. SYNOPSIS OF THE LAWS OF ARKANSAS RELATING TO BANKING AND COMMERCIAL USAGES. Revised by Geo. W. Emerson, National Standard Life Bldg. Attorney at Law, Little Rock. (See Card in Attorneys’ List.) Accounts verified by the plaintiff as just and correct prove them selves in suits thereon unless denied under oath. Acknowledgments may be taken within the State before the supreme or circuit court, or a judge thereof, county and probate court, or by county or probate judge, or clerk of any court of record, or if acknowledgment is taken before a Justice of Peace it should be a Justice of Peace of its county where real estate is located, or notary public: elsewhere in the United States before any court having a seal, or clerk of such court, notary public, unless taken out of state, com missioner of Arkansas; without the United States before any court having a seal, mayor of a city having a seal. United States consul, or any officer authorized by the laws of such country to probate conveyances of real estate, provided he has a seal. Actions. Suits are prosecuted under a reformed code of civil pro cedure differing from the New York code chiefly in maintaining the distinction between law and equity. Administration of Estates. Executors and administrators must be residents of the State and must give bond in double the value of the property. Foreign executors and administrators can maintain actions in our courts. Claims are paid in the following order: First, funeral expenses; second, expenses of last illness; third, judgments which are liens on the lands of the deceased; fourth, demands presented within six months; fifth, demands presented within one year. All demands not presented in one year are barred. Demands must be authenticated by an affidavit to the effect that nothing has been paid or delivered toward their satisfaction except what is credited thereon, and that the sum demanded, naming it, is justly due. Demands must first be presented to the executor or administrator, and if disallowed by him may be presented to the probate court, or sued upon in any court of competent jurisdiction. Notes and debts secured by mortgages or deeds of trust must be probated as any other claim, anti if not pre sented to the executor or administrator within one year after ap pointment, are barred by the statute of non-claim of one year. When the note or debt is barred this carries with it a barring of the mortgage or deed of trust given to secure the notes or debts.” Affidavits in this State are made before a judge, justice of the peace, notary public, or clerk of the court; without the State before a judge, mayor, notary public, justice of the peace or commissioner for this State. Aliens may hold and transmit property in all respects as residents. Arbitration. Controversies may be submitted to arbitration, and the award of the arbitrators is filed in court, and is subject to review on equitable principles only, and not for matters of form. When not 6et aside they are entered of record and become the judgment or decree of the court. Arrest. Defendants may be arrested for debt only when the plaintiff files an affidavit charging that the debt was fraudulently con tracted; that it is just, giving its amount, and that he believes that the defendant is about to depart from the State, and with intent to de fraud his creditors, has concealed or removed from the State his property or so much thereof that the process of the court after judg ment can not be executed; or that the defendan thas money or securi ties in the possession of himself or of others for his use, and is about to depart from the State not leaving sufficient property therein to satisfy the plaintiff’s claim. Bond must be given conditioned to pay the defendant all damages that he may sustain if wrongfully arrested, but attachment under such conditions is the usual and better practice. Assignments for the Benefit of Creditors may be general or partial, with or without preferences, and where all the debtor’s prop erty is conveyed, may exact releases as a condition of preference. The assignee must file an inventory of the property assigned and give a bond conditioned that he will execute the trust confided to him, sell the property to the best advantage and pay the proceeds to the credi tors mentioned in the assignment according to its terms, and faithfully perform his duties according to law. He must sell within 120 days all property except the choses in action, which he is required to collect, the sale to be at public auction after thirty days’ notice. Assignments are vitiated by the fraud of the assignor alone or by any provision varying from the requirements of the statute. All state insolvency laws are held in abeyance since the Bankruptcy laws of 1898 and amendments th ereto. Attacks upon them are made by proceedings in equity, and, if they are set aside, the proceeds are distributed equally among all the creditors. Assignees close up their accounts under the direction of the ch ancery courts. Corporations can not prefer creditors. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Attachments may be sued out where the defendant is a foreign corporation or non-resident, or being insolvent has been absent from the State four months, or has left the State with intent to defraud his creditors, or has left the county of his residence to avoid the service of summons, or conceals himself so that summons can not be served on him, is or about to remove or has removed a material part of his prop erty out of the State, not leaving enough to satisfy his creditors, or has sold, conveyed or otherwise disposed of his property, or suffered it to be sold with the fraudulent intent to cheat, hinder, or delay his creditors, or is about so to do. It is obtained by fll'ng an affidavit stating the nature of the plaintiff’s claim, that it is just, its amount and the exist ence of the ground, and by giving bond conditioned to pay all damages the defendant may sustain if the attachment is wrongfully sued out. The defendant is allowed to traverse the attachment, and the affidavit and traverse then stand as pleadings upon which the issue is tried. If the attachment is dissolved, the defendant may have an assessment of damages upon the bond in the same suit. Persons claiming the attached property may interplead in the same action. Attachments maybe sued out before the debt is due where the defendant has sold, conveyed, or otherwise disposed of his property, or permitted it to be sold with the fraduient intent to cheat, hinder or delay his creditors, or Is so to do. or is about to remove his property, or a material part thereof, out of the State with the intent of cheating, hindering or delay ing his creditors. Banks. The banking business Is controlled by a state bank depart ment under the direction of a bank commissioner. Any five or more persons, the majority of whom must be residents of this state, may apply to the commissioner to be incorporated and the shares of capital stock shall be not less than $25 nor more than $100 each; application may also be made by an individual or firm and shall then be in such form as the commissioner may prescribe and such individual or firm shall adopt a name which will show that it is not incorporated; all property owned by such bank shall be held in the name of the bank and not in the name of the individuals composing the firm and all assets of any such private bank are exempt from execution by any creditor of such individual or firm until all liabilities of the bank have been paid; upon the death of an individual banker his widow is not endowed of any property of the bank except such as remains after the payment of all depositors and other creditors. No corporation, firm or individual may do a banking business until a fee of one-fifth of one per cent on the authorized capital stock shall have been paid to the bank commissioner. Fees at the same rate must be paid on each increase of the capital stock and for each amend ment or supplement to the articles of agreement, except for an increase of capital stock, there shall be paid an additional fee of $10. There Is also due the commissioner an annual fee of $15 in addition to a pay ment of fifty cents on each $1,000 of the bank’s capital stock. The fully paid-up capital stock of any bank organized after the pas sage of the banking act (March. 1913) cannot be less than $10,000 in cities having less than 2,500 inhabitants, not less than $20,000 in cities having more than 2,500 and less than 5.000 inhabitants, not less than $25,000 in cities more than 5,000 and less than 10,000 inhabitants and not less than $50,000 in cities having more than 10,000 inhabitants. The banking act does not apply to trust companies whose minimum capital stock is $50,000. The affairs of an incorporated bank are controlled by a board of directors choseu from the stockholders; each director must be the owner of not less than $500 worth of stock, par value, fully paid-up and not hypothecated; every bank must have on hand at all times as a reserve as much as 15 per cent of the aggregate of its deposits. Stockholders are liable for the debts of the bank in the sum of the par value of their stock in addition to the amount invested in such stock. (Act No. 113. Acts of 1913, page 462). Receivers, liquidating agents of insolvent banks, building and loan associations and other money lending institutions, administrators, executors, guardians and other trustees may exchange home mort gages held by them for bonds and other benefits provided for by the act of Congress creating Home Owners’ Loan Corporations and for the approval of such transactions by the Court, State Bank Com missioner or other officers, as the case may be, having jurisdiction of the estate in liquidation, and for other purposes. (Act 10 of Special Acts of 1933 and 1934.) All banks which are by law authorized to accept deposits of public funds may tender, and all officers or boards whose duty it is to award contracts for the deposit of public funds and all officers or boards whose duty it is to accept security for the deposit of public funds may accept bonds of the Home Owners’ Loan Corporation as security for deposits of public funds at the face value of said bonds. (Sec. 1, of Act 26 of Special Acts of 1933 and 1934.) Act No. 15 of the Special Acts of 1933 and 1934, is an act to qualify state banks for deposit insurance under Congressional statute, and to recognize the rights of, and permit the Bank Commissioner to co-operate and deal with, Federal Deposit Insurance Corporation in respect to State Insured Banks and State Member Banks of the Federal Reserve System, as contemplated by said Congressional Statute; to authorize and validate the issuance by State Banks in certain cases of common and/or one or more classes of preferred non assessable and single-liability capital stock; and to reaffirm the legal and equitable remedies of creditors and other interested parties against banks under management of the Bank Commissioner. Bills. Exchange and Promissory Notes. The Negotiable Instruments Law went into effect on April 22, 1913. No person can be charged as an acceptor of any bill of exchange unless his acceptance shall be in writing. If the acceptance is written on another paper than the bill, it shall not bind the acceptor except In favor of the person to whom such acceptance shall have been shown, and who, on the faith thereof, shall have received the bill for a valuable consideration. Every holder of a bill presenting It for acceptance may require an acceptance on the bill; otherwise the bill can be protested for non-acceptance. Notwithstanding the above provisions any one promising to accept a bill is liable to any person to whom a promise to accept it may have been made; and who. on the faith of the promise, has drawn and negotiated the bill. Any person on whom a bill is drawn, and to whom the same may be delivered for acceptance, who shall destroy it or refuse within twenty-four hours or such time as the holder may allow to return the bill accepted or not accepted to the holder, shall be deemed to have accepted the same. When the bills become due on any holi day, they are payable the next succeeding business day. Instru ments falling due (or becoming payable on) Saturday are to be pre sented for payment on the next succeeding business day; except that insturments payable on demand may be presented for payment before 12 o'clock on Saturday if it is not a holiday. The following damages are allowed where a bill is protested for non-acceptance or non-payment: If the bill is drawn on any place in this State, 2 per cent; if payable in the states of Alabama, Louisiana, Mississippi, Tennessee, Kentucky, Ohio, Indiana, Illinois, or Missouri, or any point on the Ohio River, 4 per cent, if drawn on any other place in the United States, 5 per cent: if beyond the limits of the United States. 10 per cent. If the bill be drawn by any person at any place within this State, at the rate of 2 per cent; if drawn by any person at any place without this State, but within the limits of the United States, d per cent; if drawn by any person without the limits of the United States, 10 per cent. The holder of any bill protested for non-pay ment or non-acceptance is entitled to costs of protest and interest at the rate of 10 per cent per annum on the amount of the bill from date of protest. The term Bill of Exchange includes all drafts or orders drawn by one person on another for the payment of a sum of money specified therein. Bills and notes given for patented machines. Implements, substance, or instruments of any kind, given to any citizen of this State, are not commercial paper, unless executed on a printed form, and showing for what consideration they were exe- BANKING AND COMMERCIAL LAWS—ARKANSAS cuted. This applies to patent rights and rights to use any patented thing of any kind. But this provision does not apply to merchants and dealers who sell patented things in the usual course of business. Ail blank assignments are taken to have been made on such day as shall be most to the advantage of the defendant. In other respects the general rules of commercial law apply. Bills of Lading. (See Warehouse Receipts and Bills of Lading.) Blue Sky Law. The State Bank Department is constituted and delegated with full power and authority to permit or prohibit the sale of contracts, stocks, bonds or other securities in Arkansas, and application must be made and his permission obtained before foreign or domestic corporations, copartnerships or unincorporated associa tions offer their securities for sale. The act was passed in 1915 and amended in 1923, and may be found in Crawford & Moses’ Digest of the Statutes of Arkansas, sections 750-771. It is a misdemeanor to sell, or offer for sale, contracts, stocks, bonds, or other securities without first obtaining authority or a permit from the Blue Sky Department. Collaterals are governed by the law merchant. Contracts touching commercial matters are governed by the law merchant. Conveyances may be either witnessed by two witnesses or ac knowledged. (See Acknowledgments.) If witnessed they are proved by the oath of two witnesses, and are then entitled to record as though acknowledged. Dower can be relinquished only by the wife joining the husband. The wife may convey property acquired since October 30, 1874, by deed as a single person without her husband joining her. or by joining with him in the form above. The wife may convey by power of attorney and make executory contracts of sale. Deeds which have been recorded and are properly acknowledged prove them selves. Any substantial departure from the form of acknowledgments prescribed by the statute, such as the omission of the words “con sideration” or “purposes,” makes the acknowledgment and record void; but statutes have been passed from time to time curing defec tive acknowledgments previously made. Sucn a statute was passed In 1907. A new Curative Act was passed and approved Febru ary. 10. 1911. Corporations are organized only under general incorporation laws. Business corporations must consist of not less than three persons who shall elect a board of directors. The president and secretary are to be elected by the board and the president must be a member of it. The secretary and treasurer must reside and keep the books of the com pany within the State. The articles of association must be signed by the president and a majority of the directors, and must be accom panied by a certificate signed in a like manner and sworn to by the president and a majority of the directors, setting forth the purpose of the corporation, the amount of its capital stock, the amount actually paid in, the names of its stockholders and the number of shares held by each respectively, and the articles and certificate must be filed in the office of the clerk of the county in which the corporation is to transact business and then with the clerk’s endorsement in the office of the secretary of State. The stock can be transferred by delivery of the certificate endorsed in blank or to some specified person, or by delivery of the certificate and a separate document containing a written assignment or power of attorney to transfer. The corpora tion has no lien on its stock for debts due by its stockholders unless such lien is stated upon certificate. The president and secretary are required to file with the county clerk an annual statement of its financial condition, and in case of a failure to do so become liable for its debts. If the directors declare a dividend when the corporation is insolvent they become liable for all the corporate debts. Any corporation which is insolvent or has ceased to do business may be wound up on the suit of any creditor or stockholder by a decree of the chancery court. Preferences by insolvent corporations are for bidden. Shares of stock are in denominations of $25 or $100 or non par value. Before any corporations, foreign or domestic, can do any business in this State, an annual franchise tax must be paid to the State Treasurer, to wit: Eleven one-hundredths (11-100) of one per cent each year upon the proportion of the outstanding capital stock of the corporation represented by property owned and used in business transacted in this state. Every corporation doing business for profit and organized as a mutual life, fire, accident, surety, health or other insurance company not having a capital stock and not organized for charitable purposes shall pay an annual tax of $100.00. All foreign or domestic insurance companies, of whatsoever nature, doing business in this State and having an outstanding capital stock of less than $500,000 shall pay an annual tax of $100; and such com panies having a capital stock of $500,000 or more an annual tax of $200. this tax being in lieu of the tax on the capital as provided in other cases. Every investment company, foreign or domestic, except National banks and corporation not organized for profit, incorporated or unin corporated, which shall sell or negotiate the sale of any stocks, con tracts, bonds or other securities of any kind or character other than bonds of the United States, or of some municipality authorized to issue bonds of the State, and notes secured by mortgages on real estate located in the State, or sell building stock or loan investments, shall file in the office of the Railroad Commission, together with a fee of $5.00, in addition to the fees required of all incorporations, the following documents: A statement showing in detail the plan upon which it proposes to transact business; a copy of all contracts, bonds or other instruments which it proposes to make with or sell to its contributors: a statement showing name and location of company and an itemized account of its actual financial condition and any other such information which the Railroad Commission may require: If such company be a co-partnership or unincorporated association, it shall also file a copy of its articles of co-partnership or association and ail other papers pertaining to its organization; if it be an Arkansas corporation it shall file a copy of its articles of incorporation, con stitution and by-laws and all other papers pertaining to its organiza tion; if it be organized under the laws of any other state or territory or government, incorporated or unincorporated, it shall file a copy of the laws of such state or government under which it exists or is incor porated, and also a copy of its charter, articles of incorporation, constitution and by-laws and other papers pertaining to its organi zation. The Railroad Commission shall examine all such papers and may admit or reject such company in its discretion; a company rejected, or whose right to do business is revoked by the Railroad Commission, may, within twenty days, appeal to the chancery court of any county in the state where its principal office is located or principal agent resides. If it be found that the refusal or revocation was justified, the cost shall be paid by the company; otherwise by the state as provided by statute. Any individual or persons, co-partnerships, corporation, companies or association, domestic or foreign, which shall sell any building or Investment contracts or like securities on which payments are to be made from time to time, shall first enter into a bond with the State of Arkansas in the sum of $20,000 for the faithful performance of its contract. Foreign Corporations shall, before doing business in the State, by Its president file in the office of the secretary of State a certificate under the seal of the company naming an agent, who shall be a citizen of this State upon whom service of process can be made. The certi ficate shall state the principal place of business of the corporation; and service on the agent shall bind it. The corporation must also file a certified copy of its charter together with a statement of its assets and liabilities, and the amount of its capital employed in this state in the office of the secretary of State, and in the office of the county where it opens an office, and must pay same fees as are required of home corporations. It must also file a resolution of its board of directors consenting that service of process on any of its agents or on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1755 the secretary of State shall be a good service. If it sues in the federal court or removes a suit there without consent of its adversary, its right to do business is revoked. Doing business nere without compli ance with the law subjects the corporation to a fine of not less then $1,000. These requirements do not apply to railroad or telegraph companies that had built lines in the State prior to Feb. 16, 1899. If any corporation fails to appoint an agent, service of process on the auditor of State shall bind it. No foreign corporation can sue on any contract made in this State until these provisions are complied with. Courts. The supreme court Is held at Little Rock and has juris diction of appeals from the circuit and chancery courts. In all coun ties separate courts of chancery have been established. The estates of deceased persons are entrusted exclusively to the probate courts, with right of appeal to the circuit and thence to the supreme court. Claims against counties are heardby the county court, as also matters touching paupers and the like. The justices’ courts have jurisdiction of matters of contract not exceeding $300, and matters of tort not exceeding $100. Two terms of the circuit and chancery court and four of the county and probate courts are held in each county per year. Courtesy. (See Dower.) Deeds. (See Acknowledgments and Conveyances.) Depositions may be taken In the State before any judge or clerk of a court of record, justice of the peace, mayor, or notary public; out of the State before a commissioner for this State, judge, justice of the eace, mayor, notary public, or person commissioned by the court or y consent of parties. Descents and Distributions. Property descends to children and their descendants in equal parts; if no children, then to father, then to mother, then to brothers and sisters and their descendants in equal arts, and in default of such to the nearest lineal ancestor or hia escendants in equal parts per stirpes. Illegitimate children inherit and transmit an inheritance from the mother in the same manner as If' legitimate. If the parents of illegitimate children subsequently Intermarry and the father recognizes them as his, they shall be deemed legitimate. In default of heirs the whole nroperty goes to husband or wife, and in their default to the State. If tne estate is ancestral it goes to the blood of the ancestor from whom it was derived. Rela tions of the half-blood inherit equally. Heirs take as tenants in common-. Divorce. It is necessary that a person be a resident of the State for at least two (2) months prior to the filing of the complaint in the divorce action, and a final decree cannot be had unless he has been a resident at least three (3) months in the State at the time decree js entered. Dower. Where there are children the wife takes one-third of the husband’s personal estate absolutely and one-third of the real estate of which he was seized at any time during the marriage, for life. Where there are no children she takes in a new acquisition one-half of the real and personal estate absolutely as against heirs, or one-third absolutely as against creditors. If it is an ancestral estate, she takes one-half for life against heirs and one-third for life against creditors. Husband takes same interest in wife’s property by courtesy after death of wife. If wife kills husband or husband kills wife and is convicted of murder in first or second degree for such homicide their dower and curtesy rights are forfeited. Executions from the circuit court are returnable In sixty days, those from justices’ courts within thirty. They may be stayed for six months by giving bond. They are a Hen on the personal prop erty of the defendant in the county from the time they come to the officers’ hands. The officer before levying on personal property, the title to which is doubtful, may require the plaintiff to give him an Indemnifying bond, and then suit must be brought by the claimant upon the bond. The defendant and other judgment creditors have one year in which to redeem from the sale of real estate. In case the writ is returned nulla bona the plaintiff may proceed by bill of dis covery against the defendant and examine him on oath, and enforce a surrender of concealed property by imprisonment. Exemptions. Unmarried persons are entitled to $200 and married persons and heads of families to $500 in selected articles of nersonal property as exempt against debts by contract. No personal property exempt as to tort judgments but homestead is so exempt. Persons who are married or heads of families are entitled to a homestead as against all debts, except the purchase-money, specific liens, laborers, and mechanics' liens, taxes and claims for trust funds converted. The homestead in the country is not to exceed 160 acres, and in town not to exceed one acre, nor to be worth more than $2,500, but the country homestead is not to be reduced to less than 80 acres nor the town homestead to less than one-fourth of an acre, regardless of value. The homestead goes to the widow and minor children after the hus band’s death. The homestead can only be conveyed by deed in which the wife joins and which is acknowledged by her, and if the husband neglects to claim the homestead the wife may do so. Fraud. The English statute of fraudulent conveyances has been re-enacted in this State. Garnishments may be sued out pending suit upon giving bond in double the amount garnished, or after judgment without bond. Garnishment may be discharged and funds or property in hands of garnishee released by filing bond for double the amount of sum garnished. Upon judgment being rendered against defendant sum mary judgment may be rendered against sureties on bond. Act 177 of Acts 1925. Holidays. The legal holidays are: Sundays; January 1 (New Year's Day); January 19 (Robt. E. Lee’s birthday); February 22 (Washington’s birthday); Arbor Day (first Saturday in March, a special day); June 3 (Jefferson Davis’ birthday); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); general election day; November 11 (Armistice Day); Thanks giving Day; and December 25 (Christmas Day). When bills become due on any of these days, they are payable the next business day. October 12th is Columbus Day (a public holiday, but not affecting commercial paper, or the execution of written instruments, nor Interfering with judicial proceedings). Husband and Wife. (See Married Women.) Injunctions may be issued by circuit Judges, chancellors, or the Judge of any court in which suit is brought. The person applying for the injunction must give bond as the court or judge may direct in absence of both circuit and chancery judges, county judge may issue injunction. Insolvency. The Supreme Court has held that the Federal Bank ruptcy Act has suspended the State insolvency laws. Interest. The legal rate of interest Is 6 per cent, but parties may contract in writing for not exceeding 10 per cent. Interest exacted in excess of 10 per cent forfeits the debt. In computing the interest commissions paid to the agent of the lender are counted as interest. Where usury is charged the borrower may go into equity and have the debt and securities cancelled without tendering the amount lawfully due. Judgments bear the same rate of interest as the obligation sued on. Judgments against counties bear no interest. Judgments (See Interest) are liens upon the real estate of the debtor in the county where rendered for three years only. The lien may be renewed and continued for three years by scire facias. Judg ments of the United States and other courts can be made liens on lands In counties other than that where they are rendered by filing a certified copy in the office of the circuit clerk. A judgment survives for ten years and cannot be revived after ten years from date of same. Jurisdiction. (See Courts.) Liens. Mechanics, builders, artisans, laborers, and others doing any work upon or furnishing any material for any building or erection under any contract with the owner or his agent, contractor or sub- 1756 BANKING AND COMMERCIAL LAWS—CALIFORNIA contractor, shall have for such work or material furnished a lien on the building or improvement together with the land on which it stands to the extent of one acre if in the country; if in a city the lot or land upon which the erection is situated. Hotel keepers have lien on baggage and personal effects of guests. Liverymen have lien on all •tock and property left In their care. Limitations. Suits for the possession of real estate must be brought within seven years, saving to minors and lunatics three years after their disabilities are removed. Actions for recovery of lands sold at Judicial sales must be brought within five years, saving to minors and lunatics three years after removal of disabilities. Actions for the recovery of lands held under tax title must be brought In two years. Actions for forcible entry and detainer, on contracts not in writing, for trespass and for libel, within three years. Actions for criminal conversation, assault and battery, false imprisonment, and slander, within one year. Actions on written instruments, within five years; on judgments, within ten years; on bonds of executors and administrators, within eight years. In all cases, except actions for the recovery of lands, minors and lunatics have, after removal of their disability, the statutory period in which to sue. Verbal promises or acknowledgments do not take a claim out of the statute. One year is allowed after dismissal of a suit in which to begin a new action. No person can avail himself of a disability which did not exist at the time the right of action accrued. No endorsement of pay ment made by the payee or on his behalf is sufficient proof to take the case out of the statute. Limited Partnerships may consist of one or more general, and one or more special partners. The latter of whom shall constitute in cash a specific amount as his share of the capital, beyond which he is not liable for firm debts. Those forming such partnership must make and file in office of circuit clerk of county, and principal place of busi ness, a certificate showing name of firm, names of partners, distin guishing between general and special, nature of business, amount of capital contributed by each partner, period of commencement and termination of partnership. Business to be conducted by general partners and suits brought by or against them. Married Women. The property, real and personal, of married women remains their separate estate as long as they choose, and may be devised or conveyed without the husband’s assent, and is not subject to his debts. If she dies without making any disposition of her real estate, he is entitled to curtesy if they have or have had issue born alive. She may carry on any business or perform any services on her own account, and her earnings are hers, and she may sue alone in respect of her separate property. She can bind herself by contract only in reference to her separate estate or business. She can not enter into partnership with her husband. If she does not file a schedule of her personal property, the burden of proof is on her to show that it is hers. Mines and Mining. Under control of commissioner of mines. All documents relating to mines must be recorded in the recorder's office of the county; and miners of the county may make by-laws regarding the time, manner, and amount of work necessary to hold claims and other rules and regulations not in conflict with law. Exten sive provisions are made for the protection of the health and safety of miners. (Acts 1893, p. 213.) Miners have a lien on the output, machinery, and tools used to secure payment for work done. Three years' possession of a mine with work reauired by law, gives possessory right. Mortgages are not liens as against any one, though such person has actual notice of their existence, until they are acknowledged in the form prescribed and filed for record. Mortgages of real estate are recorded in the county where the land lies, and mortgages of personal property in the county of the mortgagor’s residence. If the mortgagor of personality is a non-resident the mortgage is recorded In the county where the property is situated. Sales under mortgages and deeds of trust can be made only after appraisement, and the property must bring two-thirds of the appraised value. In case it is offered and fails to bring the required amount real estate may be offered again after one year and personal property after sixty days, and is then sold for what it will bring. The mortgagor of real estate has one year from the date of sale in which to redeem. In action to foreclose a mortgage, it is sufficient defence that the debt (which it recites), is barred by statute of limitations. Chattel Mortgages may be acknowledged and filed as other mort gages, or they may be endorsed “This instrument is to be filed but not recorded,” signed by the mortgagee, and may then he filed in the recorder's office with the same effect as though recorded. Mortgagee of personal property reserving in the mortgagor the power of disposi tion are fraudulent. Mortgages and Deeds of Trust may be enforced by foreclosure at any time within the period prescribed by law for foreclosing mort gage or deed of trust so far as the property mentioned and described in such mortgage or deed of trust is concerned, but no claim or debt against the estate of a deceased person shall be probated against such estate whether secured by mortgage or deed of trust or not except within the time prescribed by law for probating claims against said estate. Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following “Digest of Banking and Commercial Laws.” Bowers of Attorney. Lands may be conveyed by power of attor ney, which is acknowledged as deeds and recorded in the county where the lands lie. Probate Law. (See Administration of Estates.) Protests. (See Bills of Exchange and Promissory Notes.) Records. (See Acknowledgments, Conveyances, Mortgages. Chattel Mortgages, and Powers of Attorney.) Redemption. (See Executions and Mortgages.) Owners of real estate sold for taxes may redeem from such sales within two years after sale. Replevin. The plaintiff in replevin may file an affidavit describing the property, stating its value and the amount of damages he expects to recover, his title, that the property is wrongfully detained by the defendant, that it has not been taken for a tax or under process against plaintiff, and that his cause of action has accrued within three years, and upon giving bond in double its value, the property shall be taken from the defendant and given to the plaintiff pending the suit, unless the defendant within two days after it is taken gives a cross-bond. Revision. The last revision of the statutes was in 1921. Taxes. All property should be assessed for taxes between the first day of May and the first day of June in each year, except in counties where the population exceeds 75,000, In which taxes should be assessed between the first day of January and the 10th day of April. State Tax Commission has general supervision and control over tax matters. Taxes must be paid between January 1st and April 10th of the year following the assessment. After April 10th penalty of 25 per cent will accrue. Taxes are first and paramount ien upon real and personal property after first Monday in June of the year in which assessment is made, which lien continues until such taxes with penalty shall be paid. Testimony. (See Evidence.) Transfer of Corporation Stock. (See Corporations.) Trust Companies must have a paid-up capital of $50,000, and In counties with a population exceeding 50,000, they must have a sub scribed capital of not less than $100,000. They may exercise all the powers commonly conferred on such companies. Wages. No assignment or order of wages to be earned in the future to secure a loan of less than $200, shall be valid against any employer or the person making such assignment or order, until such assignment or order is accepted in writing by the employer and the said assignment or order and the acceptance of same has been filed with the recorder of the county where the party making the assign ment or order resides, if a resident of the state where he is employed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No assignment or order of wages to be earned in the future shall be valid when made by a married man unless the written consent of his wife to making such an assignment or order for wages shall be attached. Warehouse Receipts and Bills of Lading shall not be given except where the commodities mentioned are received on the premises, and are under the control of the warehouseman at the time of its Issuance. No warehouseman shall sell, encumber, ship, or remove any such commodity for which a receipt has been given without the written assent of the holder of the receipt. The same provisions cover owners and agents of boats and vessels. All warehouse receipts and bills of lading are made negotiable by written endorsement and delivering the same as bills of exchange and promissory notes, and no printed or written conditions, clauses, or provisions inserted in or attached to them shall in any way limit their negotiability or impair the rights and duties of the parties thereto, or persons interested therein, or such conditions shall be void. Warehouse receipts given by any warehouseman or other person for goods and other com modities deposited, and all bills of lading given by any carrier, boat, vessel, railroad, transportation, or transfer company may be trans ferred by endorsement and delivery; and the transferee shall be deemed to be the owner of such commodities so far as to give validity to any pledge, lien, or transfer given, made, or created thereby; and no property so stored or deposited shall be delivered except on sur render and cancellation of such receipts and bills of lading, unless such receipts and bills of lading have the words “not negotiable” plainly written or stamped on their face. A carrier may however deliver to shipper or consignee goods without presentation of bill of lading upon receiving from such shipper or consignee bond in double the value of the goods conditioned for delivery to the carrier there after the original bill of lading (acts 1907). Penalties are denounced against any warehouseman or other person who shall violate any of the provisions of this statute. So much of the act as forbids the delivery of property except the surrender and cancellation of the original receipt or bill of lading shall not apply to property replevined or removed by operation of law. Wills. A will must be subscribed by the testator or by some person for him at his request in the presence of two attesting witnesses, and he must acknowledge it to be his will to each of them. He must declare at the time of his subscription or acknowledgment to the witnesses that the instrument is his will and testament. The witnesses must sign their names at the end of the will as witnesses at the request of the testator. If, however, the entire will is in the hand-writing of the testator, it need not be attested, but may be proved by three witnesses familiar with the hand-writing. Such will, however, can not be pleaded in bar of an attested will. Wills are revoked by marriage and birth of issue, unless provision for such issue is made by settlement, or is provided for in the will. The will of an unmarried woman is revoked by her marriage. Afterborn children, not mentioned in the will, take their regular distributive share. If the testator fails to mention in his will any child, or its legal representatives, living at the time of executing the will, he shall, as to such child, or its represent atives, be deemed to have died intestate, and such child, or its rep resentatives. is entitled to its regular share. SYNOPSIS OF THE LAWS OF CALIFORNIA RELATING TO BANKING AND COMMERCIAL USAGES. Revised by Tanner. Odell & Taft, Attorneys at Law, Suite 524 Van Nuys Building, Los Angeles. (See Card in Attorneys’ List.) Accounts. An account is assignable, and the assignee may main tain an action thereon, although the account is assigned merely for collection. An action to recover a balance due upon a mutual current and open account or upon an open book account is barred after four years. The cause of action on an open account is deemed to have accrued from the date of the last item. In the case of a book account consisting of a single item it becomes outlawed four years after its date. (See Actions and Limitations.) Acknowledgments. Before an instrument can be recorded, Its execution must be acknowledged by the person executing it, or if executed by a corporation, by its president or secretary, or other person executing the same on behalf of the corporation, or if a part nership by a member thereof (to be so identified in the acknowledge ment) or proved by a subscribing witness, or by judgment in an action brought for the purpose. The proof or acknowledgment of an instrument may be made at any place within the State before a justice or clerk of the supreme court, and within the city, county or township for which the officer was appointed or elected, before either: (1) A clerk of a court of record; (2) a county recorder; (3) a court commissioner: (4) a notary public: (5) a justice of the peace. Officers taking and certifying acknowledgments or proof of instruments for record must authenticate their certificates by affixing thereto their signatures, also their seals of office, if by the laws of the State or coun try where the acknowledgment or proof is taken, or by authority of which they are acting, they are required to have official seals. Acknowl edgments taken out of this State but within the United States, to be used within this State, may be taken before a notary public, a com missioner appointed by the governor of this State, a judge, or clerk of a court of record, or in foreign countries a minister, counsul, viceconsul, or consular agent of the United States, or a judge of a court of record or a notary public. Actions. All civil actions are commenced by filing a complaint upon which plaintiff may, at any time within one year thereafter, have a summons issued. There is but one form of action and the onlypleadings allowed are: 1. The complaint. 2. The demurrer. 3. The answer. 4. The demurrer to the answer. 5. The crosscomplaint. 6. The demurrer to the cross-complaint. 7. The answer to the cross-complaint. 8. The demurrer to the answer. Motions to strike and to make more certain may be made. Bill of particulars may be demanded. Administration of Estates. Estates are administered in a department of the Superior Court under a Probate Code. For intestates letters of administration are issued upon petition. For wills the nominated executor takes out letters testamentary, or some one eligible petitions for letters of administration w-ith the will annexed. Rights to letters begin with surviving spouse and proceed through ten classifications, preference being given those of the whole blood over those of the half. Six months is given after the first publication of notice to creditors for presentation of claims. Rejected claims must be sued upon within 30 days after notice of such rejection. Claims are marshalled under nine preference provisions. Estates of $2500 or less are subject to summary disposition. BANKING AND COMMERCIAL LAWS—CALIFORNIA Affidavits. An affidavit to be used before any court, judge, or officer of this State may be taken before any officer authorized to administer oaths. In this State every court, every judge or clerk of any court, every justice and every notary public, and every officer or person authorized to take testimony in any action or proceeding, or decide upon evidence, has power to administer oaths and affirmations. An affidavit taken in another State of the United States to be used in this State, may be taken before a commissioner appointed by the governor of this State to take affidavits and depositions in such other State, or before any notary public in another State, or before any judge or clerk of a court of record having a seal. An affidavit taken in a foreign country to be used in this State, may be taken before an ambassador, minister, consul, vice-consul, or consular agent of the United States, or before any judge of a court of record having a seal, in such foreign country. Aliens. 1. All aliens eligible to citizenship may take, hold and dispose of property, real and personal, within this State. 2. All aliens not eligible to citizenship may acquire and possess land In accordance with the terms of any existing treaty with any foreign country of which such alien is a citizen, and not otherwise. Nor can such be guardian of any estate consisting in part or whole of real estate. No non-resident alien can take by succession unless he appear and claim within 5 years after death of decedent. No alien may be employed upon any public work except in cases of extraordinary emergency. No alien may own or possess or have under his control any firearms capable of concealment. Arrest. In an action for the recovery of money, upon a contract, express or Implied, the defendant may be arrested if about to depart from the State with intent to defraud his creditors, upon order of court based upon affidavit therefor, also in an action for money or other property embezzled or fraudulently misapplied by a public officer, officer of a corporation, or an attorney, factor, broker, agent, or clerk in the course of his employment, or by any person in a fidu ciary capacity; also in actions to recover the possession of personal property where it has been concealed or removed or disposed of to prevent its being found; also in cases where the defendant has been guilty of a fraud in contracting the debt or obligation for which action is brought; or in concealing or disposing of property; also when the defendant has removed or disposed of his property or Is about to do 60 with intent to defraud creditors. Bail given upon arrest is liable upon judgment secured. Assignments for the Benefit of Creditors. There are statutory provisions for assignments but they are so seldom resorted to that their place in the state’s commercial code is negligible. Attachments may be issued at the time of or any time after issuing the summons, and prior to judgment, where amount sued for is not less than $15.00 (no attachment issues from small claims court) as is hereinafter provided. All property not exempt from execution may be attached. If attachment is to recover for necessaries the affidavit must so state. An attachment lien upon real property continues for three years and may be extended for two years more and thereafter from time to time. On personal property an attach ment continues three years. Attachment issues upon affidavit alleging (1) indebtedness made and payable in this state and not secured; or (2) defendant is non-resident or cannot be found; or (3) that cause of action is damages, fraud or wrongful act of defendant; (4) that attach ment is not sought to delay or defraud creditors. Bond must be filed with the clerk before writ issues, to protect de fendant if plaintiff fails to recover. Banks. The business of banking may be carried on only by corporations organized for such purpose under the California Bank Act and National Banks. But three classifications are permitted: Commercial banks, savings banks, trust companies. Banking cor porations may be organized by not less than three persons. Stock holder is liable ratably for debts of the bank to the amount invested in said shares plus the par value of stock held by him. This liability does not apply to stock issued after Oct. 25, 1933, provided the deposits of the bank are insured by the Federal Bank Deposit Insurance Corporation. Directors must each own stock of the par value of not less than $500. Provisions are made for branch banks. A bank organized under the laws of another state must comply with all the requirements of the California Bank Act. A banker has a general lien dependent upon possession of all property in his hands belonging to a customer for balance due from customer in the course of business. Every bank must designate the character of its business. By virtue of the existing California Bank Act all banks, foreign and domestic except National Banks, are under the supervision of the State Superintendent of Banks and must obtain a certificate of authority to do a banking business. The Act sets forth the minimum requirements regarding capital and surplus, such requirements being identical for both commercial and savings banks, as follows; $50,000 in cities of less than 25,000 inhabitants; $100,000 in cities of from 25,000 to 100,000 inhabitants; $200,000 in cities of from 100,000 200,000 inhabitants; $300,000 in cities of over 200,000 inhabitants. Commercial and savings banks must have a surplus of 25 per cent of capital stock. Capital and surplus must be at least 10 per cent of deposit liabilities up to $1,000,000—5 per cent of any amount in excess of $1,000,000. For savings banks a decreasing per cent on larger amounts. Special reserves against unsecured deposits are required of commercial banks, unless they are members of the Reserve bank. Amount of reserve is regulated by statute. Bank officers cannot be borrowers from their bank. All state banks are eligible to become members of the Federal Reserve Bank. Any bank to become member of the Federal Home Loan Bank must have the previous written consent of the superintendent of banks. Trust companies likewise operate under the supervision of State Superintendent of Banks, and must deposit cash or securities with State Treasurer to insure faithful performance of trusts. The minimum deposit required is $100,000, and the amount varies according to population and amount of the res. Any savings bank may discount or purchase bankers’ acceptances eligible for discount by the Federal reserve bank, and may purchase, hold or sell real or personal property, as follows: (1) The real estate, furniture, fixtures, etc., in which its business may be conducted, such real estate, etc., not to be carried on the books of such bank as an asset to an amount exceeding one-half its paid-up capital and surplus except with the written consent of the Superintendent of Banks. Commercial banks are restricted to one-half such amount. 2) Such as may have been mortgaged, pledged or conveyed to it in (trust for its benefit in good faith, or money loan in regular course of business. (3) Such as may have been purchased at sales under pledge, mortgage or deed of trust made for its benefit or money loaned and such as may be conveyed to it by borrowers in satisfaction and discharge of loans. (4) Gold and silver bullion, and United States Mint Certificates. (5) Bonds and other securities of certain classes as are set forth in Section 61 of California Bank Act. Savings banks may not make loans for longer periods than ten years. There are many other minor restrictions on loans. With some exceptions no commercial bank can lend more than 10 per cent of its capital stock on unsecured loan, or 15 per cent, in addition to the amount that may be loaned without security, upon security worth at least 15 per cent more than the amount loaned so secured, provided the total amount cannot exceed 25 per cent in all and separate note must be taken for the unsecured and the secured loan, or 25 per cent upon security worth at least 15 per cent more than the amount of the loan so secured, or 40 per cent upon commercial or business paper actually owned by the person negotiating same to the bank and are endorsed by such persons without limitation. But commercial banks may accept drafts or bills of exchange having not more than six months sight to run growing out of transactions involving importation or exportation of goods or involving domestic shipment of goods providing shipping documents are attached as security or are secured by ware house receipts or other muniment of title. No bank shall hold as security for loans more than 25 per cent of the capital stock of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1757 another bank, nor loan in excess of 10 per cent of its assets upon the security of capital stock of any corporation. A bank organized or doing business in this state may refuse payment of check or draft, except cashier’s check or bank draft, if presented for payment more than six months from its date unless expressly instructed to pay by drawer or maker, and no liability shall attach to drawer or maker by such non-payment. Any bank may purchase Class A stock in the Federal Bank Deposit Insurance Corporation and with the approval of the superintendent of banks may become a member of the Temporary Federal Deposit Insurance Fund. Bills and Notes. The Uniform Negotiable Instruments Law is In force. Statutes of 1917. Chapter 751. Bulk Sales. (See Fraudulent Sales and Conveyances.) Chattel Mortgages may be made upon all personal property, including growing crops, except such as is not capable of manual delivery. If on stock of a merchant and similar property it is void as to creditors, unless seven days’ notice of intent be previously recorded by the county recorder. Also void as to creditors unless accompanied by an affidavit of good faith executed by both parties and acknowledged for record and recorded. Recording must be in county where the property is situated, and if migratory must also be recorded in county to which property is removed. On a motor vehicle the instrument must be deposited with the state motor vehicle depart ment in lieu of recording. Collaterals. Are governed by the law relating to pledges of per sonal property. Delivery of the thing pledged is essential to the validity of the bailment. Before the property can be sold the pledgee must demand performance from the debtor, if he can be found, and must give actual notice to the pledgor of the time and place at which the property pledged will be sold, at such a reasonable time before the sale as will enable the pledgor to attend, but notice of the sale may be waived by the pledgor at any time. The sale must be by public auction. The pledgee, or a pledgeholder, may purchase the property pledged when the same is sold at public auction. A pledgee can not sell any evidence of debt (collateral) pledged to him, except the obligations of governments, states, or corporations; but he may collect the same when due. Contracts. Certain contracts are invalid unless the same or some note or memorandum thereof is in writing. (See Statute of Frauds.) A contract for personal services cannot be enforced specifi cally but its breach may be compensated by damages. Conveyances. An estate in real property, other than an estate at will, or for a term not exceeding one year, can be created or transferred only by operation of law, or by an instrument in writing, subscribed by the party disposing of the same, or by his agent thereunto authorized in writing. Leases of agricultural land for a longer period than fifteen years and of city property for a longer period than ninety-nine years are void with some exceptions. A fee simple title is presumed to be in tended to pass by a grant of real property, unless it appears from the face of the grant that a lesser estate was intended. A grant of real property may be made in the following form: “I, A. B., grant to C. D. all that real property situated in (insert name of county) county. State of California, bounded (or described) as follows: (Here insert description, or if the land sought to be conveyed has a well-established descriptive name it may be described by such as for instance: ‘The Norris Ranch. ’) Witness my hand this (insert) day of (insert month). 19—A. B.” “Grant” implies present ownership in grantor, free from incumbrances made or suffered by grantor. Subsequently acquired title passes to grantee. Instruments entitled thereto must be recorded in the county where the property is situated. An instrument of later date, acquired for a valuable consideration in full faith, takes precedence of one of earlier date but subsequently recorded. Corporations. Private corporations may now be formed by three or more persons and if the name be followed by the word “limited” stockholders are only liable to loss of tho investment. The former provisions holding each stockholder liable for a pro rata of debts have been repealed. All original papers for organization are now filed with the secretary of state. Capital stock can only be issued under author ity of the State Commissioner of Corporations. Courts. Each county has a Superior Court, with from one up to fifty judges. Several of the larger cities have Municipal Courts with jurisdiction in law cases to $2,000. Such cities also have police courts, and there are also justice’s courts in two classes according to limit of jurisdiction. Between the Supreme Court of seven judges and the trial courts there are District Courts of Appeal, of which there are six divisions of three judges each. The bulk of appeals goes first to these inter mediaries, from whoso decisions the Supreme Court may, in its dis cretion, grant a further hearing before itself. Criminal cases involving capital punishment and other of the more important cases are appealed directly to the Supreme Court. All appellate courts have original jurisdiction for writs of mandamus, habeas corpus, etc. Depositions. The deposition of a witness out of this State may be taken upon a commission issued from the court under the seal of the court, upon an order of the court, or a judge or justice thereof, on the application of either party, upon five days’ previous notice to the other, plus one day’s additional notice for each one hundred miles of travel between residence of witness and place of deposition or by stipulation of the parties without an order of Court. If the court be a justice’s court, the commission shall have attached to it a certificate under seal by the clerk of the superior court of the county to the effect that the person issuing the same was an acting justice of the peace at the date of the commission. If issued to any place within the United States, it may be directed to a person agreed upon by the parties, or if they do not agree, to any notary public, judge or justice of the peace or commissioner selected by the court, or judge, or justice issuing it. If issued to any country out of the United States, it may be directed to a minister, ambassador, consul, vice-consul, or consular agent of the United States in such country, or to any person agreed upon by the parties or judge of a court of record in such country. Depositions must be taken in the form of question and answer. The words of the witness must be written down, in the presence of the witness, by the officer taking the deposition or by some indifferent person appointed by him. It may be taken down in short hand in which case it must be tran scribed to long hand by the person who took it down. When com pleted, it must be carefully read to or by the witness and corrected by him in any particular, if desired, by writing, or causing his corrections to be written at the bottom of the deposition, and must then be sub scribed by the witness. Corrections must be initialed by officer before whom deposition is taken. If the parties agree in writing to any other mode, the mode so agreed must be followed. Depositions in this State. The testimony of the witness in this State may be taken by depositions in an action at any time after the service of summons or the appearance of defendant, and in a special proceeding after a question of fact has arisen therein, in certain enumerated cases. Depositions for use out of the State. Any party to an action or special proceeding in a court or before a judge of a sister state, may obtain the testimony of a witness residing in this State, to be used in such action or proceeding, in the cases mentioned following: If a commission to take such testimony has been issued from the court, or a judge hereof, before which such action or proceeding is pend ing. on producing the commission to the Clerk of the Superior Court of the county in which suen witness is to be examined, with an affi davit satisfactory to him of the materiality of the testimony, he may issue a subpoena to the witness, requiring him to appear and testify before the commissioner named in the commission, at a specified time and place. 1758 BANKING AND COMMERCIAL LAWS—CALIFORNIA Descent and Distribution of Property. There is no dower right, but all property acquired during continuance of the marriage relation (except by gift, devise or inheritance) is community property, one-half of which goes to the surviving spouse, and in absence of testamentary disposition the survivor takes all. A widow, however, may have the whole estate, if less than $2,500, set off to her. All property not community is separate, and if not disposed of by will is distributable; first to the surviving spouse and children. If no sur viving spouse then all to child or children. If surviving spouse and one child, half to each; if more than one child one-third to surviving spouse, remainder to issue; in absence of children one-half to the sur viving spouse remainder to lineal descendants of decedent or their children. Those next entitled to inherit are, in their order; father and mother, or if neither, then brothers and sisters; if there are none of any of these the surviving spouse takes all. If there be no sur viving spouse then the next of kin take in equal degree. Illegitimate children inherit from the mother, and from the father where parentage has been acknowledged in writing. Where widow or widower dies intestate, and there has been no issue, community property goes half and half to the lineal descendants of each spouse. Exemptions. Exemptions from attachment, judgment and forced sale are very liberal, and the list is gradually increasing to include some of the later inventions and implements of labor and production. An automobile is now exempt if of value of $100 only. Fraud. (For Fraudulent Debtors, see Arrest.) In certain actions involving money where fraud is charged, the debtor is subject to arrest. These include actual fraud, always a question of fact, and promises made without any intention of performing; misdirecting a prospective hotel guest is a misdemeanor. Fraudulent Sales and Conveyances. Sale, transfer, or assign ment of a substantial part of stock in trade, except in ordinary course of business, and sale, transfer, assignment, or mortgage of fixtures or equipment of merchant is void as to existing creditors unless seven days prior thereto seller or purchaser record with County Recorder a notice of such intended sale, transfer, etc. The notice must conform to certain statutory requirements. Holidays. The legal holidays are: Saturdays after 12 noon for all public business; Sundays; January 1 (New Year’s Day); February 12 (Lincoln's birthday); February 22 (Washington’s birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in Sep tember (Labor Day); September 9 (Admission Day); October 12 (Columbus Day); general election day; November 11 (Armistice Day); Thanksgiving Day; and December 25 (Christmas Day). Monday is holiday if holiday falls on Sunday. Injunctions and writs of prohibitions may be issued and served on any day. Contracts made on a holiday are valid. In the larger counties a designated judge of the superior court is available nights and every day in the year for issuing and approving bail, original writs and issuance of release for a person’s property or title thereto. Homestead. The homestead consists in the interest of the claim ant, divided or undivided, in the dwelling house in which the claimant resides, and in the land on which the same is situated, selected, if the claimant be married, from community property, or the separate property of the husband, or. with the consent of the wife from her separate property. The homestead can not be selected from the separate property of the wife without her consent, shown by her making or joining the declaration of homestead. The homestead is exempt from execution or forced sale, except in satisfaction of judgments obtained. 1. Before the declaration of homestead was filed for record, and which constitutes liens upon the premises. 2. On debts secured by mortgage or trust deed, of date prior to declaration, or proper execution subsequent. Homesteads may be selected and claimed: 1. If not exceeding $5,000 in value by any head of a family. 2. If not exceeding $1,000 in value, by another person. Upon death of either spouse, if homestead is selected from community property or from separate property of spouse joining therein, title thereto vests in survivor otherwise to the heirs or devises of the person whose property was selected. Husband and Wife. The husband is the head of the family. He may choose any reasonable place or mode of living, and the wife must conform thereto. In other respects their interests are separate. Neither husband nor wife has any interest in the separate property of the other, and either may enter into any engagement with the other, or with any other person, respecting property, which either might if unmarried. All property of either, owned by him or her before marriage, and that acquired afterward by gift, bequest, devise or descent, is the separate property of such person. All other prop erty acquired after marriage by either husband or wife or both, is community property, except that a married woman may acquire and hold shares in building and loan associations as her separate property; may transfer shares of corporate stock generally as if unmarried. Property conveyed to a married woman by an instrument in writing is presumed to be her separate property. Property conveyed to husband and wife as such is presumed to be community property. A married woman may become a sole trader by authority of court, thus converting a limited amount of community property into her separate estate. The husband has the management and control of the com munity property, with absolute power of disposal other than testa mentary, provided that he cannot make a gift of the same or convey the same without valuable consideration, unless the wife consents in writing, either personally or by her authorized agent, and provided that in the execution of any instrument by which community real property, or any interest therein is leased for a longer period than one year, or is sold, conveyed, or encumbered, the wife must join with him in the execution of any such instrument. The community property is not liable for the contracts of the wife made after marriage, unless secured by a pledge or mortgage thereof executed by the hus band. Except for the necessaries of life the husband is not liable for damages or torts committed by wife except in a case where he would be jointly liable with her if the marriage did not exist. Neither the separate property of the husband nor his earnings after marriage is liable for the debts of the wife contracted before marriage, and the separate property of the wife is not liable for the debts of her husband, but is liable for her own debts contracted before or after marriage. A husband and wife may hold property as joint tenants, tenants in common, or as community property. Upon death of husband or wife intestate, the entire community property goes to the survivor. Either the husband or the wife may subject one-half of the community prop erty to testamentary disposition by will, the wife’s right so to do being subject to special statutory conditions. Interest. The legal rate of interest is 7 per cent and is due upon Judgments after rendition and upon other obligations unless there is an express contract in writing fixing a different rate. The parties may agree, in writing, to a higher rate of interest, but not exceeding 10 per cent for one year and not exceeding that rate for a longer or shorter time. They may also agree in writing for compound interest provided the maximum rate of 10 per cent is not exceeded. (An exception allows a greater interest rate to personal property brokers. The Commissioner of Corporations may license Personal Property Brokers who shall be authorized to charge 3 per cent per month on unpaid balances of sums loaned up to an including $300, and 2 % per month on sums in excess of that amount, but may not receive or retain any greater amount under any pretext whatsoever. Such brokers shall be under $1,000 bond for the benefit of persons who have cause of action against them for violation of the statute.) Usury is a misdemeanor and works a forfeiture of all interest and liability for treble damages. Judgments. Judgments (including those of inferior courts if an abstract be recorded with the county recorder) are a lien on real property for five years, and may be renewed by an action, or still enforced by order of court. The lien expires, however, unless the judgment is renewed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Liens. Mechanics, material-men, contractors, sub-contractors, artisans, architects, machinists, builders, miners, teamsters, dray men and all persons and laborers of every class performing labor upon or furnishing material to be used in or furnishing appliances, teams ana power contributing to the construction, alteration, or repair of any building, wharf, bridge, ditch, flume, aqueduct, well, tunnel- fence, machinery, railroad, wagon road, or other structure, have liens upon the property upon which they have worked or fur nished material, and any person performing labor in a mining claim has a lien upon the same, and the works owned and used by the owners for reducing the ores from such mining claim, for the work or labor done. The common carrier has a lien upon the luggage of a passenger for the payment of his fare. One who sells real property has a ven dor’s lien thereon. Improvers of personal property, depositaries for hire, veterinary surgeons, garages, livery stable keepers and persons pasturing horses or stock, have a special lien, dependent upon posses sion. Factors, warehousemen, banks, and laundry proprietors have a general lien, dependent on possession, on any personal property in their hands. Seamen have general liens independent of possession. Owners of animals used for propagating purposes have a lien for the agreed price upon the offspring. Loggers rendering services upon logs, holts and other timber have a lieu thereon for the amount due for their personal services. A personal judgment may be had against the debtors with or without attachment for security, without infringing the right to a mechanic’s lien when legally established. Every person performing work or labor in, with, about, or upon any threshing machine or engine, horse-power, wagon, or other appliance thereof, while engaged in threshing, has a lien thereon to the extent of the value of his services, for ten days after ceasing work or labor, provided, within that time, an action is brought to recover the amount of the claim, persons repairing or altering any personal property have a lien for the reasonable value of such service. Pest destruction in orchards by authority of statute creates a lien against the realty involved in favor of the county causing such destruction. Limitations. If real estate is held adversely for five years, such adverse possession ripens into title if claimant pays taxes for five years, except against infants and persons under disability. The periods pre scribed for the commencement of actions other than for the recovery of real property, are as follows: Within six years, upon certain corpora tion bonds and notes. Within five years: (1) An action upon a judgment or decree of any court of the United States, or of any State within the United States. (2) An action for mesne profits of real property. (3) Action by heir unknown at time an escheat estate is distributed, counting from date of decree. Within four years; (1) An action upon any contract, obligation or liability founded upon an instrument in writing, executed in this State. (2) An action to recover a balance due upon a mutual open and current count or upon an open book account. Within three years: (1) An action upon a liability created by statute, other than a penalty or forfeiture. (2) An action for trespass upon real property. (3) An action for taking detaining or injuring any goods or chattels, including actions for the specific recovery of personal property. (4) An action for relief on the ground of fraud or mistake, the cause of action in such case not to be deemed to have accrued until the discovery by the aggrieved party of the facts constituting fraud or mistake: Within two years: (1) An action upon a contract, obligation or liability not founded upon an Instrument of writing, (2) An action on a debt, liability or obligation evidenced by an abstract, guarantee or certificate of title; and such action shall not be deemed to have accrued until the discovery of the loss or damage. (3) An action for foreclosure of a lien securing an assessment against real property for strict improvement: but time does not commence to run until the last installment becomes due. (4) An action against a sheriff, coroner, or constable, upon a liability in curred by the doing of an act in his official capacity, and in virtue of his office, or by the omission of an official duty, including the non-pay ment of money collected upon an execution; but this subdivision does not apply to an action for an escape. Within one year: (1) An action upon a statute for a penalty or forfeiture, when the action is given to an individual or to an individual and the State, except when the statute imposing it prescribes a different limitation. (2) An action upon a statute, or upon an undertaking in a criminal action, for a forfeiture or penalty to the people of this State. (3) An action for libel, slander, assault, battery, false imprisonment, or seduction, or for injury to or for the death of one caused by the wrongful act or neglect of another, or by a depositor against a bank for the payment of a forged or raised check, or a check that bears a forged or unauthor ized endorsement. (4) An action against a sheriff, or other officer for the escape of a prisoner arrested or imprisoned on civil process. (5) An action against a municipal corporation for damages or injuries to property caused by a mob or riot. Within six months. (1) An action to recover property seized by tax collector. (2) To recover corporation stock sold for delinquent assessment. To actions brought to recover money or other property deposited with any bank, banker, trust company, or savings and loan society, there is no limitation. If when the cause of action accrues against a person, he is out of the State, the action may be commenced within the term herein limited, after his return to the State, and if, after the cause of action accrues, he departs from the State, the time of his absence is not part of the time limited for the commencement of the action. And if the person entitled to bring the action be, at the time the action accrued, either a minor, insane, imprisoned for a term less than life, or a married woman, and her husband is a necessary party with her in commencing such action, the time of such disability is not a part of the time limited for the commencement of the action. No acknowledgment or prom ise is sufficient to take a case out of the operation of the statute of limitations, unless the same is in writing, signed by the party to be charged. Part payment will not take the case out of the statute of limitations. Where a cause of action has arisen in another State, and would be barred by the statute of limitations of that State, an action cannot be maintained here, except in favor of one who has been a citizen of this State and has held the cause of action from the time it accrued. There is no limitation upon actions to recover money or property with banks or trust companies. (See Accounts.) There are now in force various moratorium acts concerning mortgage foreclosures, tax redemptions, building and loan operations and similar matters, which for the present modify former statutes of limitation, which are of a temporary character, and changed with each session of the legislature. Married Women. A married woman may be sued without her husband being joined as a party and may sue without her husband being joined as a party in all actions, including those for injury to her person, libel, slander, false imprisonment, or malicious prosecution, or for the recovery of her earnings or concerning her right or claim to the homestead property. A married woman may become a sole trader by the judgment of the superior court of the county in which she has resided for six months next preceding the application. The husband of the sole trader is not liable for any debts contracted by her in the course of her sole trader's business unless contracted upon his written consent. A married woman may convey her separate property without consent of her husband, and is not liable for the debts of her husband, but is liable for her own debts contracted before or after her marriage. She may contract as a femme sole so as to bind her separate property. The wife may make a will of her separate property and under statutory conditions of one-half the community roperty. The earnings of the wife are not liable for the debts of her usband unless it be community property. Mechanics’ Liens. (See Liens.) Mortgages. Any interest in real property which is capable of being transferred may be mortgaged. A mortgage can be created, renewed, or extended only by writing executed with the formalities required in the case of a grant of real property. It requires the signature of the wife except as to property which is the separate estate of the husband, and in practice the wife’s signature should BANKING AND COMMERCIAL LAWS—COLORADO always be required. Every transfer of an interest in real property, other than in trust, made only as the security for the performance of any act, is to be deemed a mortgage, and the fact that the transfer was made subject to defeasance on a condition may, for the purpose of showing such transfer to be a mortgage, be proved (except as against the subsequent purchaser or encumbrancer for value and without notice) although the fact does not appear by the terms of the instru ment. A mortgage is a lien upon everything that passes by a grant of the property. A mortgage does not entitle the mortgagee to the possession of the property. The assignment of a debt secured by a mortgage carries with it the security. When a mortgage is satisfied or the mortgage indebtedness paid, the mortgagee must satisfy the mortgage oi record under penalty. A mortgagee may foreclose the right ot redemption of the mortgagor unless expressly stipulated the mortgage is not a personal obligation on part of mortgagor. (See also Trust Deeds.) Moratorium legislation in 1933 provides against deficiency judgment after a sale on foreclosure and for relief from foreclosure when the right of foreclosure has been accelerated by defaults in the terms of the obligation. This legislation is of a temporary nature extending to Sept. 1, 1935. The Act itself remains effective until Sept. 1, 1936. Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following “Digest of Banking and Commercial Laws.) Notes and Bills of Exchange. (See Bills and Notes.) Pledge. (See Collaterals.) Powers of Attorney. An attorney in fact may be appointed for any purpose for which an agency can lawfully be created. Powers of attorney can only be conferred by an instrument in writing subscribed by the principal which must particularly specify the powers con ferred. If the instrument contains a power to convey or execute instruments affecting real property, it must be duly acknowledged and must be recorded in the county within which the real property to be conveyed or affected is situated. No such instrument which has been so recorded is revoked by any act of the party by whom it was executed, unless the instrument containing such revocation is also acknowledged or proved, certified, and recorded in the same office in which the instrument containing the power was recorded. When an attorney in fact executes an instrument transferring an estate in real property, he must subscribe the name of his principal to it. and his own name as attorney in fact. Probate Law. The superior court has jurisdiction of proceedings in probate, which must be instituted (1) In the county in which the decedent was a resident; (2) in the county in which he may have died, leaving estate therein, he not being a resident of the State; (3) in the county in which any part of the estate may be, if the decedent died out of the State and was not a resident. (4) In any county in which any part of the estate may be, or the decedent not being a resident of the State nor leaving an estate in the county of death. (5) In other cases where application is first made. Any person interested may petition for probate of a will or may contest such probate before letters issue or thereafter within six months. If no homestead has been previously selected, the court must select, designate and set apart and cause to be recorded a homestead for the use of the surviving husband or wife, or of the minor children, or if there be no surviving hus band or wife, then for the use of the minor children out of the common property, or out of the real estate owned in common by the decedent and the person or persons to whom the homestead is set apart, or if there be no common property and no such jointly owned property, then out of the real estate belonging to the decedent as his own separate property. Property so set apart is not subject to further admin istration. If upon the return of the inventory it appears that the value of the whole estate does not exceed $2,500, the court may set apart the whole of the estate for the use and support of the widow of the deceased, and if there be no widow, then to the minor children of deceased. (See Administration of Estates, Claims against Estates, Descent and Distribution.) Protest. (See Bills and Notes.) Replevin. There is no action of replevin In this State, but the action of claim and delivery is a substitute and very similar in its provisions. Sale of Stock Shares. Permit must be obtained from State Cor poration Commissioner on all original issues. We have an elaborate "Blue Sky” Law. Statute of Frauds. A will must be in writing, except a nun cupative will. (See Wills.) An agreement not to be performed within a year from making it must be in writing; also a special prom ise to answer for the debt, default, or miscarriage of another with certain statutory exception which in the State are similar to those in most other jurisdictions; also agreements made in consideration of marriage other than a mutual promise to marry; also an agreement for the sale of goods and chattels or things in action at a price not less than $500, unless the buyer accept and receive part of the same or pay any part of the consideration. Goods manufactured especially for the buyer, not suitable for general sale, are excepted from this rule. No estate in land will pass other than leases not to exceed one year, unless in writing. An agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation or for a commission; an agreement by its terms not to be performed in the lifetime of the promisor or to make, devise or bequeath or make any provisions for any person by will, must be in writing. No evi dence is admissable to charge a person upon representations as to the credit of another, unless the representations be in writing. However, where promisor has received property to apply pursuant to promise or a discharge of an obligation in consideration of the promise, or where a creditor parts with value or where the new promise is sub stituted for the old debt, or where levy or execution is released or there is benefit moving to promise from any party or where a factor undertakes for a commission to guarantee a sale, contracts to answer for the default of another need not be in writing. Transfer of personal property capable of manual delivery, except wine in cellars and tanks, when not accompanied by delivery and change of possession are deemed fraudulent as to third parties unless notice of intention of sale is recorded seven days before transfer is made in accordance with law. Supplementary Proceedings. When an execution is returned unsatisfied, the judgment creditor can obtain an order requiring the judgment debtor to appear and answer concerning his property before the judge or referee. Taxes. On the fifth day of December of each year taxes become delinquent, except the last installment of the real property taxes, and thereafter 8 per cent is added for delinquency; provided, that if they be not paid before the 20th day of April next succeeding, 5 per cent is added for delinquency. On the 20th day of April, of each year, all the unpaid portion of the remaining one-half of the taxes on all real property is delinquent, and thereafter 3 per cent is added for delin quency; and provided further, that the entire tax on any real property may be paid at the time the first installment as above provided is due and payable; and provided further, that the taxes on all personal property, unsecured by real property, shall be due and payable immediately after the assessment of said personal property is made. Legislation of 1935 imposes income taxes of practically 51% of those provided by Federal laws. There is also a sales tax of 3% except on foods. Both are under attack by referendum. Trust Deeds. Trust deeds as security are in general use, and are usually preferred to mortgages by banks and other lenders, as a right of redemption does not exist after foreclosure of trust deed by-trustee's sale. Also, the method of foreclosure is more simple. To foreclose the beneficiary must record with the County Recorder a three-months notice of his election to cause the property to be sold and thereafter https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1759 the trustee must give notice of time and place of sale by posting in statutory manner and by publishing copy once a week for twenty days in newspaper of general circulation. Should such sale result in a deficiency, judgment for same may be recovered in appropriate action, but action therefor must be begun within three months after the time of sale. (See Mortgages). Temporary moratorium acts also modify foreclosure proceedings under trust deeds. Wills. Every person over the age of eighteen years, of sound mind, may, by last will, dispose of all his estate, real and personal. A married woman may dispose of all her separate estate by will with out the consent of her husband, and may alter or revoke the will in like manner as if she were single; she may also under certain conditions, dispose of by will one-half of the community property. Her will must be executed and proved in like manner as other wills. Every will other than a nuncupative will must be in writing, and every will other than an holographic will and a nuncupative will, must be executed and attested as follows: 1. It must be subscribed by the testator himself, or some person in his presence, and by his direction must subscribe his name thereto. 2. The subscription must be made in the presence of the attesting witnesses, or acknowledged by the testator to them to have been made by him or by his authority. 3. The testator must, at the time of subscribing or acknowledging the same, declare to the attesting witnesses that the instrument is his will, and 4. There must be two attesting witnesses, each of whom must sign his name as a witness at the end of the will, at the testator's request, and in his presence. An holographic will is one that is entirely written, dated, and signed by the hand of the testator himself. It is subject to no other form, and may be made in or out of this State, and need not be witnessed. A nuncupative will may dispose of personal property only and of value not exceeding $1,000. A witness to a will should always write his name and residence. All devises or gifts to a sub scribing witness are void unless there are two other competent sub scribing witnesses unless such witness is entitled to a share, if there had been no will. No will made out of this State is valid as a will in this State, unless executed according to the provisions of the code, except that a will made in a State or country in which the testator is domiciled at the time of his death, and valid as a will under the laws of such State or country is valid in this State as to personal prop erty. Wills proven out of state may be recorded in county where testator has left real estate. Ancillary administration is usually necessary. Bequests for charity are void unless made more than thirty days before death and must in no case exceed more than one-third of the estate unless there are no legal heirs, except that bequests to the State or a political subdivision or to educational institutions exempt from taxation, are not limited to one-third. Also, bequests to charity by will made six months or more before death are not so restricted unless there are living spouse, child, grandchild or parent, and these may in writing executed at least six months before the testator’s death waive the restriction. Wills are revoked by marriage unless provision for the same or an intention not to provide clearly appears. SYNOPSIS OF THE LAWS OF COLORADO RELATING TO BANKING AND COMMERCIAL USAGES Revised by Mr. Bentley M. McMullin, Attorney at Law, First National Bank Bldg., Denver. (See Card in Attorneys List.) Acknowledgments. The statutory form and manner of real estate acknowledgment are as follows: STATE OF... COUNTY OF The foregoing instrument was acknowledged before me this........... day of......................... 19.......... by............................................................... (if by natural person or persons here insert name or names; if by person acting in representative or official capacity or as attorney-in-fact, then insert name of person as executor, attorney-in-fact or other capacity or description; if by officer of corporation, then insert name of such officer or officers as the president or other officers of such corporation, naming it. If acknowledgment is taken by notary public, the date of expiration of commission shall also appear on the certificate.) WITNESS my hand and official seal. (If acknowledged before notary, the date on which his commission expires must be here stated.) Title of Officer. For chattel mortgage form, see “Chattel Mortgages.” The acknowledgment may be before the clerk of any court of record, commissioner of deeds, or notary public, or certain other specified officers. Administration of Estates. All demands not exhibited in six months are barred, unless such creditor can find other estate of the deceased not inventoried. Claims are classified for payment, ordinary debts being in the fifth class. Creditors having liens can foreclose at any time by court action, but cannot foreclose without court action within one year without permission of court. Administration is granted to surviving husband or widow, or next of kin of an intestate, if they will accept or are not disqualified; if no such relative appears within twenty days after death of intestate, administration may be granted to a creditor; if no creditor appears in ten days after twenty days from death of intestate, or if next of kin files written relinquish ment county judge may select administrator. In counties having a population of more than 50,000 on default of relatives administration is made by public administrator. An abbreviated form ot adminis tration is provided for estates of $2,000 or less, and where less than $300, administration may be waived. (See Wills; Husband and Wife; Descents and Distributors.) Assignments. Assignments for the benefit of creditors are pro vided for. Assignments of wages not due at the time of the assign ment, or of other sums to become due to the assignor, are invalid unless recorded with the recorder of the county where the wages are to be earned, or the sums are to become due, within five days from the date thereof. If the assignor is a married man or woman, residing with the wife or husband, he or she must join in the assignment. There are also provisions regulating assignments to wage-brokers and others. 1760 BANKING AND COMMERCIAL LAWS—COLORADO Attachments. In actions on contracts, express or implied, or in tort against a non-resident, the plaintiff may have the defendant's property attached, upon filing a bond in double the amount sued for, with affidavit ‘‘showing the existence of statutory grounds, consisting, in general, of the defendant’s non-residence or fraud.” Garnishee pro cess will issue in aid of attachment when money or property of the debtor is found in possession of third persons. Banks. Kinds Permitted. Banks of Deposit and Discount, which may have a savings department and a trust department; Trust, Deposit and Security Companies; Trust companies, which may engage in general banking; Industrial Banks; Credit Unions. The discussion which follows is necessarily limited to Banks of Deposit and Discount. Supervising Authority. The State Bank Commissioner. Incorporators. Any number of persons not less than three. Officers and Directors. The officers, usually a president, vicepresident and cashier, are elected annually by the board of directors. The directors may be from three to twenty-one in number, must give bond, must own a fixed amount of stock free from indebtedness, and must never have been convicted of a felony or a violation of banking laws. They must attend meetings monthly. Capital Stock and Surplus Requirements. The minimum paid-up cash capital required to commence business is $25,000 in cities or towns of 4,000 or less; $50,000 in cities of from 4.000 to 50,000; $100,000 in cities of more than 50,000; to which must be added, in each case, a cash surplus of 10% of the capital stock. The capital and surplus thereafter maintained must also equal 10% of the average daily deposits for the preceding calendar year. Reserves. Reserves are required to be maintained in an amount equal to 15% of all deposits. Examinations and Reports. Examinations by the State Bank Commissioner are made at least twice a year; directors must prepare and file a detailed report at least three times a year. The dates of examinations and reports are determined by the State Bank Com missioner. Loan Limitations. No loans are permitted on a bank’s own stock or to its officers. Loans on real estate cannot exceed 25% of its interest bearing securities except that up to 50% of its savings deposits may be so invested. No commercial loan can exceed 15% of the bank’s capital and surplus except that loans fully secured by collat erals of definite value in excess of the loan are not so limited. Stockholders’ Liability. Shareholders are individually liable for the corporations’ indebtedness to the extent of double the amount of their stock therein, at par, in addition to the amount invested in such shares. This liability is not subject to offsets on account of deposits. Branch Banking is prohibited. Federal Deposit Insurance. No legislation on this subject has been passed. Banks, Miscellaneous. Savings Banks, Trust Companies, either independent or as a part of a bank. Industrial Banks and Credit Unions are all authorized and are regulated by the State Bank Com missioner. Blue Sky Law. All corporations organized in Colorado who desire to place on sale to the public, securities in certain classes must comply with the “Securities Act” or “Blue Sky Law” of 1923 as amended in 1931, which provides that two copies of prospectus issued shall be filed with the Secretary of State setting forth certain information with reference to the company and the Secretary of State shall charge and collect a fee of $10 for the filing of such prospectus. Securities salesmen must further register under the Act of 1931 with the Secre tary of State. In 1933 an amendment was passed extending the scope of the former acts, and empowering the Secretary of State to prohibit the sale of securities by insolvent, unlawful, fraudulent or unsound issuers. Building & Loan Associations are authorized and are regulated by a Building and Loan Department under a complete code adopted and in effect June 8, 1933. Chattel Mortgages as between the parties are good until the Indebtedness is paid or barred by limitation. To be valid as to third persons they must state the amount and maturity of the debt, describe the property, and be acknowledged and filed or recorded. The form of acknowledgment is “This mortgage was acknowledged before me this................day of............................ 19...., by.............................................. mortgagor”; if by a corporation or partnership, the form is varied to read Y‘ by........................................... for............................................ mortgagor.” The notary must state when his commission expires. The lien remains good until the maturity of the indebtedness but not to exceed two years if for not over $2,500, for five years if for from $2,500 to $20,000, and for ten years if for over $20,000, but as to mortgages for over $2,500 a sworn statement must be filed every two years beginning with the second anniversary showing good faith and the amount unpaid. Possession may be taken at any time within six months after the maturity named, or to which it may have been extended, and the mortgage may be extended or further extended by filing or recording a sworn statement showing total payments, amount unpaid, that the debt is due, and that it is extended to a definite stated time, not exceed ing two years. During said six-month period the debt may be paid and the lien discharged as at maturity. Mortgages of stocks of goods which reserve possession and power of sale to mortgagor, are void as against creditors and bona fide purchasers. Disposing of mortgaged property is larceny. Chattel mortgages upon household goods used by the family, when made by husband or wife residing with the other, must be made by husband and wife jointly. Collaterals. Shares of stock may be validly pledged only by delivery of the certificate properly indorsed. Persons holding stocks in corporations as collateral security are not personally liable as stock holders for corporate debts. A pledgee of stock may represent same at corporate meetings. Commercial Paper is governed by the uniform Negotiable Instru ments Act adopted in 1897. See complete text of uniform law else where in this publication. Conditional Sales. Conditional sales contracts give the seller no rights as against purchases for value without notice from .a buyer in possession, and should never be used in this state, a chattel mort gage being the only satisfactory form of security. Conveyances. No joint tenancy In real property unless expressly declared in the deed, except in certain particular cases. Unless so declared grantees shall be deemed tenants in common. Lands not in possession may be conveyed. Not necessary for wife to join In deed except in a conveyance of or a mortgage of a homestead, entered as such of record. Witnesses are unnecessary. Seals are not necessary excepting in the case of corporations, but a printed or ink seal is advisable. Unacknowledged deeds are deemed notice from the date of filing but they can not be read in evidence unless subse quently acknowledged or proved, unless they are on record for over twenty years. (See Acknowledgments; Husband and Wife.) Corporations. Colorado corporation laws are broad and flexible Three or more residents or non-residents may form a Colorado corp oration by signing, acknowledging and filing with the Secretary of State a certificate stating the name (containing “Association,” "Com pany,” "Corporation,” "Club," “Incorporated,” “Limited,” “So ciety.” “Union,” "Syndicate,” “Co.,” “Inc.,” or “Ltd.”), objects, term of existence, which may be perpetual, the amount of stock which may have any or no par value and may be divided into classes with respect to voting power, preferences, participation, etc., the number of directors, who may be classified according to term of office, location of principal office, and whether cumulative voting is allowed, and, if desired, special provisions limiting or regulating powers of the company, directors, stockholders or any class thereof, providing for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis compromises between the corporation and Its creditors or stock holders, giving the board of directors power to sell or mortgage, giving to stockholders a preemptive right to subscribe to additional stock Issues, requiring more than the legal proportion of voting for cor poration action, or permitting the directors to meet out of the state or to make by-laws. Piling fees are $20 plus 20c per thousand capital in excess of $50,000 capital or shares of no par stock, plus $5.00 for certificate. Stock may be issued full paid and non-assessible for prop erty or services. Stockholders are liable for the amount remaining unpaid on stock. When fully paid a certificate thereof should be filed. Stock is transferred only by delivery of the certificate, unless the by laws otherwise provide for. Unless the certificate of incorporation otherwise provides, mining and manufacturing companies can encum ber their property only by authority of a majority of stockholders. The certificate may be amended in any respect excepting to change its original purpose. The term of existence may be extended from time to time and the corporation may be dissolved by a vote of two-thirds of the stockholders. Foreign corporations are prohibited under penalty from transacting business until they file a copy of their charter of incorporation and a certificate identifying the act under which it is organized and a certificate appointing an individual or corporate agent for the service of process and pay a fee of $30 plus 30c on each thousand dollars in excess of $50,000 represented by capital in Colo rado, plus $5.00 for a certificate of authority and $5.00 for designating agent. Foreign corporations cannot mortgage property as against citizens without published notice. Every corporation foreign or domestic must on or before March 15th. or the next business day, file an annual report as to its officers, stock and condition, on forms furnished by the Secretary of State, paying a fee of $5.00, unless the capital is $10,000 or less when the fee is $1.00, and for wilful con cealment of any material fact or failure to file such report the directors and officers become liable for the debts contracted In the preceding calendar year up to $1,000 each. An annual license tax of $10.00 plus 10c per thousand dollars capital or shares of no par stock above $100,000 must be paid by all foreign or domestic corporations on or before May 1st, failure to pay resulting in forfeiture or right to do business subject to reinstatement within two years. Special statutory provisions in addition to those governing general business corporations apply to title and guaranty, banking, insurance, mining, telegraph, ditch and reservoir, flume and pipe line, water users, toll road, bridge and ferry, gas, cemetery, cooperative, religious and for non-profit and other corporations. Other provisions of the Revenue bill, approved August 4, 1917, and this act regarding annual reports, assessment of tangible and Intangible property, etc., too voluminous to be quoted, make It advisable that care should be exercised by both domestic and for eign corporations operating in the State to acquaint themselves fully with its requirements. Depositions. The deposition of a witness out of the State shall be taken upon commission Issued by the clerk of the court where the suit is pending on the application of either party on five days’ revious notice to the other, which notice shall be accompanied y a copy of the interrogatories to be attached to the commission. It may be issued to a person agreed upon by the parties or to any judge or justice of the peace, or to a commissioner appointed by the governor of the State to take affidavits and depositions in other States and Territories, or to a notary public. The adverse party may file and have attached to the commission such cross-interrogatories as he may desire. Parties may agree by written stipulation to take the deposition orally, or, upon proper cause shown, may obtain an order of court directing it to be so taken. Depositions can be taken at any time after starting suit. Either party may have a deposition taken in this state at any time after commencing suit and may therein examine the adverse party as under cross-examination. Descents and Distributions. The estate of an intestate descends one-half to the surviving husband or wife, and the residue to the surviving children and descendants of children, if any; if none, then the whole descends to such surviving husband or wife. Except as enumerated the estate of every intestate descends; 1. To his children surviving, and the descendants of his children who are dead, the descendants collectively taking the share which their parents would have taken if living. 2. If no children nor their descendants, then to his father and mother, share and share alike, and if one dead, then to the other; if no father or mother, then to his brothers and sisters, and to descendants of brothers and sisters who are dead, the descendants collectively, taking the share of their immediate ancestors in equal parts. 3. If none of the foregoing living, then to the grandfather, grandmother, uncles, aunts and their descendants, the descendants taking collectively the share of their immediate ancestors in equal parts. 4. If none of the relatives above enu merated be living, then to the nearest lineal ancestor and their descend ants, the descendants collectively taking the share of their immediate ancestors in equal parts. All posthumous children or descendants of the intestate, inherit as if born in the lifetime of the intestate, and ail children of the half blood and all legally adopted children shall inherit as children of the whole blood. Illegitimate children Inherit if parents subsequently intermarry. Convicted Murderers shall not inherit property of victim. Dower. Common Law Dower and curtesy are abolished, as such, but neither husband nor wife can by will devise more than one-half of her estate away from the other without his consent. Exemptions. These consist, in brief, of a $2,000 homestead, 60% of the wages of the head of a family, and specified personal property of certain classes of persons of from $100,00 to $300,00 in value. Frauds, Statute of. The following must be In writing: Con tracts for leasing of land for period longer than one year or for the sale of lands, or any interest in lands; every agreement which by Its terms is not to be performed within one year: every special promise to answer for the debt, default or miscarriage of another; every agreement, promise, or undertaking made upon consideration of marriage, except mutual promises to marry, and every contract for the sale of any goods, chattels, or things in action, for the price of $50 or more, unless the buyer accepts and receives part of such goods or the evidence of some of them, or the buyer at the time pays part of the purchase money. Garnishment. (See Attachments.) Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 12 (Lincoln’s birthday); February 22 (Wash ington's birthday); May 30 (Memorial Day); July 4 (Independence Day); August 1 (Colorado Day); first Monday in September (Labor Day); October 12 (Columbus Day); general election day; November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day). If any such holiday falls on Sunday, the Monday following or the preceding Saturday in the case of November 11th are legal holidays for all purposes including presentment of commercial paper. Third Friday in April, second Friday in May, and October 12th are holidays not affecting business transactions. Saturday afternoon in cities of 25,000 and over in June, July and August, on which days commercial paper may be presented in the forenoon or the following Monday. Husband and Wife retain their separate property, real, personal and mixed owned at marriage, and any such property which shall come to either of them by descent, devise, or bequest, or the gift of any person, for their own separate use Such property of the wife is not liable for the husband’s debts except as hereinafter stated. Wife may carry on trade or business, sue and be sued, contract debts, and execute promissory notes, bonds, bills of exchange, and other instruments precisely as if sole and may convey real estate without the husband joining in the deed. Any chattel mortgage upon, or sale of, the household goods used by the family, and any conveyance of, or mortgage upon, a homestead, and any assignment of future wages, or sums to be come due in the future, when made by husband or wife BANKING AND COMMERCIAL LAWS—CONNECTICUT residing with the other, must be joined in by that other. A married woman may make a will, but neither husband nor wife shall devise or bequeath more than half of his or her property away from the other without the consent in writing of the other, executed after death of the testator or of testatrix. Marriage revokes a will previously made. The husband is liable for the debts and liabilities of the wife contracted before marriage to the extent of the real and personal property he may receive with or through her. or derive from the sale or rent of her lands, and no further. The expenses of the family and the edu cation of the children are chargeable upon the property of both husband and wife, and in relation thereto they may be sued jointly or severally. Either husband or wife living together can separately declare property of record in the name of the other “A Homestead/' by an entry of record over his or her signature. Neither can mortgage nor convey homestead without the signature of the other. Interest. The legal rate was 8% from the organization of the state up to March 7, 1935, when it became 6%, but any other rate may be ft xed by agreement with the exception of loans of $300 or less upon which the maximum rate is 12 per cent. Judgments. A transcript of judgment may be filed in the office of the county clerk and recorder of any county in the State, and thereupon such judgment becomes a lien upon all real property owned by the judgment debtor in that county. The lien holds for six years from the date upon which filed, and successive transcripts may be filed. Justice court judgments expire in six years; judgments of courts of record in twenty years, unless revived by appropriate proceedings. (See Executions.) Limitations—Personal Actions. All actions upon any con tract or liability express or implied must be begun within six years next after the cause of action accrues. In actions on account the last item proved fixes the date. Bill of relief in the case of equitable trusts shall be filed within five years; personal actions on any contract other than the above and bills for relief on the ground of fraud shall be filed within three years. The doctrine of laches applies in equitable proceedings. Additional statutes govern limitations in certain unusual proceedings. The limitation does not apply to minors, married women or persons insane, in prison or absent from the United States, who have one year from the removal of disability to sue. Payment, new promise or absence from the state extend the period. —Real Actions. Actions to recover real property must be brought within not more than 18 years after the right accrued as defined by extensive statutory provisions. If the claim be against an actual resident holding under fee or tax title, or against a person in possession of land under claim or color title or having color of title to vacant land, and having paid taxes for seven years, the action must be brought within seven years after the right accrued. Married Women. (See Husband and Wife.) 1 Mechanics’ Liens. Mechanics, material-men, contractors, sub contractors, builders, miners, and all persons of every class performing labor upon, or furnishing materials used in the construction or repair of any building, or any other structure or improvement upon land, also all who have rendered their professional, skilled service upon such structure, have a lien upon the property, also those who work or furnish materials or machinery for the working of a mining claim or mineral deposit shall have a similar lien. Liens rank in the follow ing order: 1. Laborers or mechanics working by the day or piece, without furnishing material. 2. Sub-contractors and material-men. whose claims are either entirely or principally for materials, machinery or other fixtures. 3. All principal contractors. Laborers are allowed one month, material men two months, and the original contractor three months after the completion of the structure, within which to file claim of lien. Action to enforce such lien must be commenced within six months after completion of the building upon which it Is claimed. Mortgages. Ordinary mortgages on realty are in common use: also deeds of trust to a public trustee and to private trustees. A trust deed to private trustee is foreclosed as a mortgage. In case the public trustee is named, the property is sold by him as provided In the deed, after advertisement in a newspaper designated in the trust deed, and such advertisement shall not be less than four weeks. Upon a sale by the public trustee, a certificate of sale is issued. Re demption may be made by the grantor within six months. Within 10 days thereafter, if notice of intention to redeem has been filed within six months, subsequent encumbrancers or lienors may redeem in order of priority. Negotiable Instruments. LTniform Negotiable Instruments Act adopted 1897. (See complete text following “Digest of Banking and Commercial Laws.) Partnerships. General partnerships are governed by the rules of the common law ordinarily applicable, without statutory change, excepting that individuals or partners doing business under any name other than their personal names must file an affidavit showing the real persons represented, or may not bring suits upon debts due, and may be convicted or fined. Limited partnerships are organized under the uniform limited partnership act adopted in 1931. A limited partnership is formed by signing a certificate in statutory form. A limited partner is not liable to creditors beyond the amounts stated In such certificate unless he takes control of the business. The rights of the partners, rights of third persons, method of conducting the partnership, its dissolution, etc., are minutely provided for. Powers of Attorney. Powers of attorney for the conveyance of lands must be acknowledged in the same manner as deeds, and must be recorded in the same county wherein the real property to be conveyed is situate. Sales of Personal Property. Every sale or assignment of goods and chattels in the possession or under the control of the vendor Is void, as against creditors or subsequent purchasers in good faith, unless accompanied by immediate delivery and followed by actual and continued change of possession. Sales of any portion of a stock of merchandise otherwise than in the ordinary course of trade are prima facie fradulent and void against creditors, unless seller and purchaser together, before sale, make inventory, showing quantity and cost price of the various articles; and unless purchaser makes full inquiry of the seller as to names and addresses of all creditors of seller, and the amount due to each, and obtains an answer; and notifies each creditor of the proposed sale, the cost price, and the proposed selling price; and unless the purchaser retains the inventory and written answer at least six months after the sale. This act does not apply to sales by legal representatives of public officers conducting sales in their official capacity and there are some other exceptions to this law. (See Husband and Wife.) Securities Act. See Blue Sky Law. Taxes. A schedule of taxable property in each county with the owner’s valuations must be filed between April 1 and May 20. Taxes are assessed after a review of valuations in August. Taxes levied are a lien on real estate until paid, as also upon stocks of goods includ ing new goods added thereto. Taxes may be paid in two semi-annual Installments; the first on or before the last day of February, and the residue on or before the last day of July of the year following the one in which they are assessed. Tax sales are held in November when tax certificates are given to purchasers on which treasurer’s deed may issue after three years. Prior to sale delinquent taxes bear interest at 6 per cent per annum from March 1 to July 31 and at 8 per cent per annum from July 31 to date of sale; plus a 10 per cent penalty if the first half be not paid by April 30; after sale at 18 per cent per annum for the first six months. 12 per cent thereafter. Household goods to the value of $200 belonging to a head of a family are exempt from taxation. A graduated sales tax law was passed in 1935 to raise revenue for relief. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1761 Unclaimed Dormant Bank Deposits. A list of all deposits with names and last known addresses of depositors which have remained unchanged except for credits for interests for ten years or more or which have for ten years remained unclaimed shall be published in one issue of a newspaper of general circulation in the city where the deposit is located, sworn to by the cashier at any convenient day during March in each year. Wills. Males of the age of twenty-one years, and females of the age of twenty-one years, may dispose of their real and personal roperty by will but personal property may be disposed of by will y any person of the age of seventeen years. For restrictions as to married persons, see “Husband and Wife.” All wills, whether of realty or personalty shall be in writing signed by the testator or some one for him in his presence and at his direction, and attested In his presence and in the presence of each other by two or more credible witnesses. Unless otherwise expressed in the will an afterborn child will share in the property. Devises and bequests to wit nesses are null and void, unless the will be attested by a sufficient number of witnesses exclusive of such persons. No will can be revoked otherwise than by the subsequent marriage of the testator, or by burning, tearing, or obliterating the same by the testator, or in his presence and by his direction and consent, or by another will or credit, declaring the same, duly signed and witnessed. The property devised by will must be administered by the county court, and all property of non-residents must generally be administered to clear title to real property situated in this State. (See Husband and Wife. Descents and Distributions. Administration of Estates.) SYNOPSIS OF THE LAWS OF CONNECTICUT RELATING TO BANKING AND COMMERCIAL USAGES Revised by Nelson R. Durant, Attorney at Law, 129 Church St., New Haven. (See Card in Attorneys List) Accounts. In all actions for a book debt, the entries of the parties in their respective books shall be admissible in evidence. (For limitation of actions on accounts, see Limitations to Suits.) Acknowledgments. (See Conveyances.) Administration of Estates. The Drobate court has jurisdic tion of deceased estates. Bonds which must be furnished by the administrators or executors, are usually made double the estimated value of the personal property. Bonds of surety companies authorized to do business in the State may be accepted. Not less than six months are limited for the presentation of claims against deceased estates. Such claims are presented to the administrator or executor if the estate is solvent, or to commissioners appointed by the probate court if the estate is insolvent. Creditors not inhabitants of this State may exhibit their claims against any estate which has not been repre sented insolvent, at any time within one year after order of notice, and if presented more than six months after order of notice, shall be entitled to payment only out of the clear estate remaining after pay ment of claims exhibited within time limited. Twelve months is the usual time allowed for the settlement of deceased estates. Affidavits. Civil actions do not ordinarily have to be supported by affidavits. Affidavits have no weight as evidence, and are never admitted as such. Allens. Any alien resident of any of the United States, and any citizen of France, so long as France shall accord the same right to citizens of the United States, may purchase, hold, inherit, or transfer real estate in this State in as full a manner as native-born citizens. Arbitration. Parties to any controversy desiring to submit the same to arbitration under a rule of court, and having signed and sworn to an agreement to that effect, may, upon filing this agree ment in the court having jurisdiction of tbe subject matter, have this agreement entered of record and obtain a rule of court that the said parties shall submit to and be finally concluded by such arbitration. Assignments In Insolvency. Operation of this section sus pended during continuance of U. S. Bankruptcy Act. Attachments. Attachment may be made upon the original process, and is served by attaching the goods or lands of the defend ant, or, if sufficient goods be not found, the person in actions where there is fraud in contracting the debt or concealing property or refus ing to pay an admitted debt. Attachments may be granted upon all complaints containing a money demand. Supplemental attachment may be ordered by the court upon application at any time during the pendency of the action. If the plaintiff be a non-resident, he Is required to furnish a bond for prosecution from twenty dollars to one hundred and forty dollars, according to amount attached. An attach ment lien expires unless execution is levied within sixty days after final judgment upon the attached personal property, or within four months upon the attached real estate. (See Exemptions.) Banks State and Trust Companies. Capital Stock. $100,000.00 in cities of less than 50,000 population: $200,000.00 in cities of over 50,000 population, par value not less than $50.00. The capital stock, together with a surplus of at least 100% of the amount of such capital stock, must be paid in cash. Charier Fee. $1.00 for each $1,000.00 of the capital stock. Reserves. 12% of demand and 5% of time deposits. Incorporators. Nine or more persons. Officers and Directors. Usual officers—by-laws are subject to approval by the Bank Commissioner. Director must be a stockholder and own at least $500.00 of the capital stock. Supervising Authority. Bank Commissioner, State Capitol, Hartford, Conn. Examinations and Reports. All banks are examined annually or oftener by the Bank Commissioner. Banks are required to make not less than three reports annually within ten days after request from the Bank Commissioner. Loan Limitations. No one person, corporation or firm may borrow more than 10% of the amount of the capital stock. Paper of executive officers and clerks may not be discounted. No director may be obligated in an amount exceeding 5% of the combined capital and surplus. Penally. $1,000.00 or not more than one year or both. Stockholders Liability is limited to payment in cash for stock pur chased. No double liability. Bills of Exchange. (See Notes and Bills.) Bills of Lading. Uniform Bills of Lading Act passed In 1911. Chattel Mortgages. (See Mortgages, Conditional Sales, and Interest.) Collateral Inheritance or Succession Tax. (See Taxes.) Conditional Sales. All contracts for the sale of personal property, conditioned that the title thereto shall remain in the vendor after delivery, shall be in writing, describing the property and all conditions of such sale, and Bhall be acknowledged before some competent authority and filed within a reasonable time in the town clerk’s office in the town where the vendee resides; but the provisions of this act shall not apply to household furniture, musical instruments, phono graphs, phonograph supplise, radios, bicycles or property exempt from attachment and execution. If not made as required, they are held to 1762 BANKING AND COMMERCIAL LAWS—CONNECTICUT be absolute sales, except as between the vendor and vendee or their personal representatives. A crime to conceal or convey personal property held on such conditional sale. Conditional Sales Concerning Building Equipment. Any contract for the sale of a portable garage or other portable building, or electric light fixtures, or plumbing fixtures, or elevators, or building materials, or any equipment used in any building and so placed as to apparently form a part of such building, conditioned that the title thereto shall remain in the vendor after delivery, shall be in writing, describing the property and all the conditions of the sale, and shall be acknowledged before some competent authority, and filed within a reasonable time in the office of the town clerk in the town where the real estate upon which such articles are placed is situated. The vendor’s rights under such conditional sale contract shall not be valid or enforcible against any bona fide purchaser or mortgagee of the real estate upon which such property shall be placed unless and until such contract, together with a statement of the name of the record owner of such real estate,shall be filed in the land records of the town in which such real estate is situated as provided for in sec tion one hereof: and any bona fide interest in such real estate ac quired for value after the date of such contract and recorded in said land records before such conditional sale contract shall be filed as provided in section one hereof shall be prior to and be protected against the claims of the vendor under such conditional sale contract. Contracts. Ordinary provisions of Statute of Frauds apply. Courts of probate having jurisdiction of the settlement of the estate of any deceased person may, concurrently with the courts of equity, authorize the executor or administrator to convey the title of the deceased in any real estate to any person entitled to it. by virtue of any contract of such deceased person, and the court of probate in which the guardian of any minor has been appointed may, in like manner, order such guardian to convey the interest of his ward in any real estate which ought in equity to be conveyed to another person. Contracts for the conveyance of lands or of any interest therein, may be recorded in the records of the town in which such lands are; and such record shall be notice to all the world of the equitable interest thus created. Gaming or wagering contracts are void. Contract of incapable person pending appointment of conservator or applicant. Void when select men have filed in town clerk's office certified copy of application in case of incapable person, and contract of spendthrift void when select men have filed in town clerk’s office certified notice of proposed appointment in case of spendthrift. No person who receives a valuable consideration for a contract, express or implied, made on Sunday, shall defend any action upon such contract on the ground that it was so made until he restores such consideration. The Uniform Sales Act passed in 1907 covers contracts to sell. (See Sales by Retail Dealers.) Conveyances. All conveyances of land must be in writing, signed, sealed, and acknowledged by the grantor, and attested by two subscribing witnesses. The word “seal” or the letters (L,. S.) may be used for a seal. The acknowledgment is made by the grantor before a judge of a court of record of this State or of the United States, a clerk of the superior court, court of common pleas, or dis trict court, justice of the pease, commissioner of the school fund, commissioner of the superior court, notary public, town clerk, or assistant town clerk, if in this State, and if in any other State or Territory of the United States, then before a commissioner appointed by the governor of this State and residing therein, or any officer authorized to take the acknowledgement of deeds in such State or Territory, and if in a foreign country, before any consul of the United States, or notary public, or justice of the peace in such foreign country. Conveyances of real estate situated in this State, executed and acknowledged in any other State or Territory, in conformity with the laws of such State or Territory, are valid. If the land conveyed belongs to the wife, the husband should join in the conveyance, if married before April 20, 1877. If the land conveyed belongs to the husband, the wife need not join in the conveyance. No separate examination of a married woman is required in taking her acknowl edgment. Conveyances, including leases for more than one year, to be effectual against any other person than the grantor and his heirs must be recorded on the town records of the town in which the land lies. Corporations. Corporations may be formed under the general laws by three or more persons for the transaction of any lawful busi ness except that of bank, savings bank, trust company, building and loan association, insurance company, surety or indemnity company, steam railroad or street railway company, telegraph com pany, and gas and electric lighting, water company, or any company which shall need to have the right of eminent domain. A certificate of incorporation must be filed, signed, and sworn to by at least three of the incorporators, giving the name and location of the corporation, the nature of the business, the amount of authorized capital stock, which must not be less than 82,000, number of shares and par value of each, amount of capital stock with which it will commence business, which shall not be less than $1,000. A certified copy must be filed in the town clerk’s office. The organization fee must be paid to the State, of one dollar, on every thousand of its authorized capital stock up to five million, no payment to be less than $50. Stock may be paid for either in cash or property, but if in prop erty, a majority of the directors must make and sign upon a record book a statement of the amount for which the property is received and its actual value. In case of fraud in such valuation, directors personally liable. Certificate of organization must be signed and sworn to by a majority of the directors and filed in the office of the secretary of state, setting forth the amount of stock subscribed for amount paid in cash and in property, amount paid on each share of stock which is not paid for in full, names and address of subscribers with number of shares subscribed for, statement that the directors are officers have been duly elected and by-laws adopted, names and addresses of directors, the location of the principal office in the State with the name of the agent in charge. There must be at least three directors: vacancies in directors may be filled by remaining directors. No stock can be issued until it has been paid for in full. Receipts for partial payments of stock may be issued by the treasurer. Cer tificates for fractional shares cannot be issued. The corporation has a lien on capital stock owned by any person for debts due to capital stock with the approval of stockholders owning three-fourths of its entire outstanding capital stock, given at a meeting called for that purpose. Stockholders’ meetings must be held in this State. Similar corporations may consolidate. A corporation may be wound up by voluntary agreement of all stockholders, signed and acknowledged, directors acting as trustees to wind up the business. Receiver may be appointed on application of stockholders own ing one-tenth of the stock, in case of fraud, mismanagement, or if assets are in danger of waste by attachment, or when corporation has abandoned its business. Annual statements must be filed in the office of the secretary of state and a certified copy thereof in the town clerk's office, either on or before the 15th day of February or August, giving the names and addresses of the officers and directors, amount of outstanding stock not paid for in full with the amount due thereon, the location of the principal office in this State with the name of the agent in charge on whom process may be served. For failure to file annual statement the corporation may forfeit $25 to the State. Stock of no par value may be issued. Costs. For case before justice of the peace, actual cash costs not less than $5; before city court from $10 to $50, according to amount involved: before court of common pleas or superior court. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis not less than $25; before supreme court of errors, not less than $50. Attorney’s fees not included. Attorney justified in asking deposit of $15 for case in justice’s court and $50 in any other court before bringing suit. (See Insurance Companies, Injunctions, etc.) Days of Grace. (See Notes and Bills of Exchange.) Deeds. (See Conveyances.) Depositions. May be taken in a civil action by a judge or clerk of any court, justice of the peace, notary public, or commissioner of the superior court, when witness lives out of the State, or more than twenty miles from place of trial, is over sixty years of age and unable to attend the trial, is going to sea, or out of the State, or by age and infirmity is unable to travel to court, or is confined in jail. Reaaonable notice must be given to adverse party. Deponents must be cautioned to speak the whole truth, ano carefully examined. They must subscribe their depositions and make oath before the authority taking the same who shall attest the same and certify that the adverse party or his agent was present (if so), or that he was notified, and shall also certify the reason of taking such depo sition, seal it up, direct it to the court where it is to be used, and deliever it, if desired, to the party at whose request it was taken. Depositions may be taken in any other State or country by a notary public, commissioner appointed by the governor of this State, or by any magistrate having power to administer oaths, and they may also be taken before a foreign minister, secretary of legation, consul, or vice-consul appointed by the United States, if taken out of the United States. A judge of the superior, common pleas, or district court can issue a “commission” to take the deposition of a person residing out of this State, to be used in a cause pending before such court. The superior court, upon petition, may allow depositions to be taken to perpetuate testimony concerning that which may there after be the subject of a suit. The person taking depositions may compel attendance of witnesses by subpoena and capias. Descent and Distribution of Property In Intestate Estates. (As to the share of a surviving husband or wife, see the title Husband and Wife.) After the share of the surviving husband or wife, the residue of the real or personal estate is distributed in equal propor tions among the children and the legal representatives of any of them who may be dead (children who have received estate by advance ment of the intestate in his lifetime being charged with the same in the distribution). If there be no children or legal representatives thereof, such residue shall be distributed to the parent or parents, then equally to the brothers and sisters of the intestate of the whole blood, and those who legally represent them; and if there be no such kindred, then equally to the brothers and sisters of the half blood and those who legally represent them; and if none, then equally to the next of kin in equal degree, kindred of the whole blood to take in preference to kindred of the half blood, in equal degree, and no representatives to be admitted among collaterals after the repre sentatives of brothers and sisters. Dower. (See Husband and Wife.) Evidence. (See Courts, Insurance Company. Corporations.) Executions. Issue on final judgment, and are returnable within sixty days. No execution issued in an action founded on contract merely can be levied on the body of the debtor except for breach of promise of marriage, misconduct or neglect in office or profes sional employment, or breach of trust and cases where the original attachment is against the body. Any judgment debtor, an execution against whom shall have been returned unsatiflsed in whole or in part, may be examined on oath touching his property and means of paying such judgment, and may be committed for contempt. (See Exemptions.) Foreign Attachments. Goods concealed in the hands of agents or debts due the defendant are reached by foreign attachment which takes the place of garnishment. No assignment of future earnings will prevent their attachment when earned unless made to secure a bona fide debt, due at the date of such assignment, the amount of which shall be stated therein as nearly as possible, nor unless the term for which they are assigned shall be definitely limited in the assignment, nor unless recorded before such attachment in the town clerk’s office in the town where the assignor resides, or if he resides without the State, in the town where the employer resides, and a copy left with the employer. (See also Exemptions.) Foreign Corporations. Every foreign corporation, except insur ance and surety companies and building and loan associations and Investment companies (a corporation which has power to or does sell or negotiate its own choses in action or sell, guarantee, or negotiate the choses in action of other persons or corporations as investments), shall, before transacting business in this State, file in the office of the secretary of the State a certified copy of its charter or certificate of incorporation, together with a statement, signed and sworn to by its president, treasurer, and a majority of its directors, show ing the amount of its authorized capital stock and the amount thereof which has been paid in, and, if any part of such payment has been made otherwise than in cash, such statement shall set forth the particulars thereof. Sec. 83.—Every foreign corporation with an office or place of business in this State, except insurance companies, surety companies, and building and loan associations, shall, before doing business in this State, appoint in writing the secterary of the State and his successors in office to be its attorney, upon whom all process in any action or proceeding against it may be served; and in such writing such corporation shall agree that any process against it which is served on such secretary shall be of the same legal force and validity as if served on the corporation, and that such appointment shall continue in force as long as any liability remains outstanding against the corporation in this State. Such written appointment shall be acknowledged before some officer authorized to take acknowledgments of deeds and shall be filed in the office of said secretary, and copies certified by him shall be suffi cient evidence of such appointment and agreement. Service upon said attorney shall be sufficient service upon the principal, and may be made by leaving a duly attested copy of the process with the secretary of the State or at his office. Everv foreign corporation doing business in this State shall, within thirty days after an increase or reduction of its capital stock file in the office of the secretary of the State a certificate substantially like that required of domestic corporations organized under the like conditions. The president and treasurer of every foreign corporation doing business m this State which is not required by law to make other annual returns in this State, shall, annually, on or before the fifteenth day of February or August, make, sign, and swear to and file in the office of the secretary of the State a certificate similar to the certificate rectuired of domes tic corporations (See Corporations), except that such certificate need not give the name of the agent or person in charge of its principal office upon whom process against the corporation may be served. The secretary shall thereupon record such certificate in a book kept by him for that purpose and shall furnish a certified copy to be re corded in the office or the town clerk of the town in this State in which such corporation has its principal office or place of business and said town clerk shall record the same in a book kept by him for that purpose. On the thirtieth day of March and September the town clerks of the several towns shall report to the secretary of the State the names of all corporations whose annual reports have been filed for record during the preceding six months, in accordance with the provisions of this section, and the secretary shall report to the attorney-general every six months the names of all corporations which have failed to comply with the provisions of this section, and the attorney-general shall collect all forfeitures due under this sec tion. Every corporation whose officers shall fail to comply with the requirements of this section shall forfeit to the State $100 for each failure. The attorney-general may remit this fine. BANKING AND COMMERCIAL LAWS—CONNECTICUT Foreign Judgments. Not conclusive on question of jurisdiction. A foreign judgment when used by way of defence, is as conclusive to every intent, as those of our own courts. In an action on a judg ment rendered in another State, evidence on the part of the defend ant that he had no legal notice of the suit and did not appear, is admissible, although the record of the judgment stated that the defendant appeared by his attorney. Where the foreign court has a peculiar and exclusive jurisdiction, its decree is binding upon the judgment of any other court, into which the same subject comes Immediately into controversy. A judgment rendered hy a court in one State has no efficacy when it is sought to be enforced in Con necticut, unless such court had jurisdiction of the person against whom it is rendered, acquired either by service upon him of the process in the suit, or actual notice to him of the suit, or at least by his having appeared in it, and thus submitting to the jurisdiction of the court. Jurisdiction presumed to have been properly exercised, if court once had jurisdiction. Notice presumed of resumption of jurisdiction if required by practice of foreign court. A judgment recovered in a sister State is a bar to the further prosecution of an action pending at the time in this State between the same parties on the same cause of action. It makes no difference that the judg ment of the sister State has been appealed from, and that the appeal is still pending, where by the laws of that State, such appeal operates only as a proceeding in error, and does not supersede the judgment. Only such pleas are pleadable to a foreign judgment, as are pleadable when rendered. Fraud. All fraudulent conveyances, suits, judgments, executions, or contracts, made or contrived with intent to avoid any debt or duty belonging to others, shall, notwithstanding any pretended con sideration therefor, be void against those persons only, their heirs, executors, administrators, or assigns, to whom such debt or duty belongs. Garnishment. (See Foreign Attachments.) Guaranty Companies. (See Surety Companies.) Holidays. The legal holidays are: Sundays: January 1 (New Year’s Day); February 12 (Lincoln’s birthday); February 22 (Wash ington’s birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); November 11 (Armistice Day); Thanksgiving Day; Decem ber's (Christmas Day). The Governor may declare a “Bank Holiday” or whenever any of such days shall occur upon Sunday, the Monday next folio-wing such day, and any day appointed or recom mended by the governor of this state or the president of the United States as a day of thanksgiving, fasting or religious observance, shall each be a legal holiday. Husband and Wife. In all marriages contracted after April 19, 1877, neither husband nor wife acquires by force of the marriage any right to or interest in any property held by the other before the marriage or acquired after the marriage, except as to the share of the survivor in the property of the other as hereinafter stated. Wife married subsequent to April 19, 1877, may hold and convey real estate separate from her husband. Separate earnings of the wife are her sole property. On the death of the husband or wife the survivor shall be entitled to the use for life of one-third in value of all the property, real or personal, owned by the other at the time of his or her decease, after the payment of all debts and charges allowed against the estate. The right to such third can not be defeated by will. Where there is no will the survivor shall take such third absolutely, and if there are no children, shall take all of the estate of the decedent absolutely to the extent of $2,000, and one-half absolutely of the remainder of said estate, and if there are no children of the decedent or representatives of children, and no parent, the survivor shall take all of the estate absolutely. Injunctions. Any judge of any court of equitable jurisdiction may, on motion, grant and enforce writs of injunction, which shall be of force until the sitting of such court and its further order therein, unless sooner dissolved. Superior court judge may dissolve tem porary injunction granted by other court. It shall be the duty of the court to continue said injunction until a final decision be rendered in the supreme court of errors. Insolvency. Suspended, owing to United States Bankruptcy Act. Interest. Legal rate, in absence of express agreement, 6 per cent; no more than 6 per cent can be recovered in either case after debt becomes payable. Express agreements in which 12 per cent is charged are valid and any person making a greater charge is liable to fine and imprisonment. There is no limit to the interest charge which can be made by any National Bank or any Bank or Trust Company, incorporated under the laws of this State nor is there any limit to the interest charge on a bona fide mortgage of real property exceeding the sum of five hundred dollars. Special law for pawn brokers. Loan companies licensed by Bank Commissioner may charge not to exceed 36 per cent per annum on unpaid balances on all loans up to $300. Jurisdiction. (See Courts.) Liens. (Mechanics’ Liens.) Any person having a claim for materials furnished or services rendered, exceeding the sum of $10.00, in the construction, erection, and repair of any building, or in the removal of a building, may have a lien on such building, and the land on. which the same may stand, and said premises may be fore closed, in the same manner as if held by mortgage. No one other than the original contractor, or a sub-contractor under a written contract, assented to in writing by owner, shall be entitled to claim a lien unless, after starting and not later than 60 days after ceasing to furnish labor or materials, he gives written notice to the owner of his intention to claim and such lien. A certificate, subscribed and sworn to, describing the premises, the amount claimed as a lien thereon, and the date of the commencement of the claim, must be lodged with the town clerk of the town in which such premises are situated, within 60 days after the person performing such services or furnishing such materials has ceased so to do. Mechanics’ liens may be dissolved on substitution of bond. Such lien continues only 2 years after it is perfected unless foreclosure is commenced. Vessels can be subjected to a lien for moneys due for work or materials furnished in their construction, by recording claim hi town clerk’s office within 10 days after job is done. Persons keeping animals under contract with owner have lien for their contract charge. Mechanics’ liens, on claims for materials furnished or services rendered, under any contract with or approved by a railroad corporation owning or managing the railroad, are enforceable. The lien, however must be lodged with the Secretary of State. By Public Acts 1925, there is no priority among Mechanics’ lienors, unless some other incumbrance intervenes, in which case prior liens take precedence of incumbrance on pro rata basis as between themselves. Liens after the incumbrance yield to the incumbrance and as between themselves none has priority. The Mechanics’ lien attach subject to apportionment only to the amount which owner agreed to pay under the contract. Limitations to Suits. Open accounts and contracts not under seal, six years; contracts under seal and promissory notes not negoti able, seventeen years. Usual exceptions in favor of married women minors, lunatics, and those imprisoned. The time during which the party against whom there may be such cause of action shall be without the State shall be excluded from the conmutation. Title to real estate by adverse possession may be gained in fifteen years There Is no limitation against judgments but the common law pre sumption of payment after twenty years exists. Limited Partnerships. Such partnerships (except banking and Insurance) shall consist of one or more partners, jointly and severally responsible, as in ordinary cases, to be called general partners: and one or more partners, furnishing capital to the partnership stock, whose liability shall not extend beyond the capital so furnished by 93 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1763 them, to De called special partners. Such partnerships shall be conducted under a company name, in which the name of one or more of the general partners shall appear; and if any special partner’s name shall be used in said company name, he shall be held liable as a general partner. No such partnership shall be deemed to be formed until the persons forming it shall make, and severally sign and acknowledge before any officer authorized to take the acknowl edgment of deeds, a certificate stating the company name and names and residences of all the partners designating which are general and which are special partners, and which of the general partners are authorized to transact the partnership business and sign the firm name, and also the amount of capital furnished by each special partner and the time at which the partnership is to commence and terminate; nor until such certificate, and also a certificate of the amount actually paid in by each special partner, signed and sworn to by such of the general partners as are authorized to transact the partnership business, shall be filed and recorded in the office of the town clerk of the town where the principal business of the part nership is to be carried on; and a copy of such certificate shall be prima facie evidence of the matters therein contained; and the part nership shall be responsible only for the acts of the general partners designated as specially authorized as aforesaid; and copies of said certificates shall. In like manner, be filed in every town where such partnership may have a place of business. Terms of such partnership must be published for six weeks in newspaper published in county where business is to be carried on. Any such partnership may be renewed by filing at any time before its expiration, with the town clerk, a sworn certificate of the general partners, setting forth the time for which said renewal is made, whether the special capital has been reduced or impaired since the last certificate filed by said partnership, and if so, to what amount, and by publishing not less than once a week for two weeks in a newspaper published in county, the time at which the said renewed partnership is to commence and terminate, signed by the partners thereto, and specifying which are general and which are special partners. If the requirements con cerning original certificate are not complied with, or false certificate be made, all special partners shall be liable as general partners. All advancements to the capital stock by the special partners shall be In cash and no part of the capital furnished by them shall be with drawn, either in the shape of dividends, profits or otherwise, at any time while such partnership continues: except that any special part ner may lawfully be paid from the assets of such partnership, each year during the continuance thereof, a sum not exceeding 10 per centum upon the cash contributed by him to the capital stock; pro vided that such payment shall only be made out of the net profits actually earned by such partnerships during the year for which such payment is made. No special partner shall under any circum stances be considered a creditor, or allowed to claim as a creditor. No special partner shall be joined as a party in anv action by or against such partnership unless liable as a general partner Married Women. (See Husband and Wife.) Mortgages of real estate are executed, acknowledged, and recorded in the same manner as deeds, and are foreclosed by strict foreclosure or by a decree of sale. Chattel mortgages to be good against third parties, where the mortgagor retains possession, must be executed, acknowledged, and recorded as mortgages of land, and can only be made of the following described personal property—with or without the real estate in which the same is situated or used—namely: ma chinery, engines, or implements situated and used in any manu facturing or mechanical establishment: machinery, engines, imple ments, cases, types, cuts, or plates situated and used in any print ing, publishing, or engraving establishment; household furniture in a dwelling house used by the owner therein in housekeeping; hay and tobacco in the leaf in any building. Piano, organ, melodeon, and any musical instrument used by an orchestra or band. Brick burned or unburned, in any kiln or brickyard. Hotel keepers may mort gage the furniture, fixtures, and other personal chattels contained and used in the hotels occupied by them or employed in connection therewith. Chattel mortgages are foreclosed by sale under order of court. In all cnattei mortgages there must be a particular descrip tion of each article of personal property. Judgment for deficiency after sale, permitted. Negotiable Instruments Act. Adopted. (See complete text following “Digest of Banking and Commercial Laws.) Notaries Public hold office for five years from first day of Feb ruary of year in which commissioned, unless commission is sooner revoked by governor. May exercise their function at any place In State. May take acknowledgments, administer oath, take deposition, subpoena witnesses to give deposition. The authority and official acts of any notary may be certified to by the clerk of the superior court of the county in which he resides, except in New London County, where the certification is made by the clerk of the court of common pleas. Powers of Attorney. Where a deed is executed by a power of attorney it is recorded with the deed. Powers of attorney to convey real estate must be executed and acknowledged in the manner required for the execution and acknowledgment of the conveyance itself. Private Banks. (See end of State Banks and Trust Companies.) Probate Law. (See Administration of Estates, Appeals, Assign ments and Insolvency, Collateral Inheritance Tax, Courts, Descent and Distribution of Property, Husband and Wife, and Wills.) Protest. (See Notes and Bills of Exchange.) Records. Warranty, mortgage, quitclaim deeds must be recorded In office of town clerk in town where land lies, also assignments of mortgage, conditional bills of sale, chattel mortgages, assignments of future earnings. Certificate of trade-mark to be filed for record in office of secretary of State. Certificate of unsatisfied judgment to be filed for record In town clerk’s office. (See Conveyances. Insur ance Companies. Limited Partnerships, Judgments, etc.) Redemption. (See Mortgages.) Replevy. Replevin lies for goods wrongfully detained. In which the plaintiff has a general or special property with right to immediate possession. Sale of Retail Business. Any person (including a person having an interest in a barber shop, dental parlor, restaurant, shoe shining, shoe repair or hat cleaning business), who makes it his business to buy commodities and sell the same in small quantities for the purpose of making a profit and desiring to sell the whole or a large part of his stock in trade, must file a notice of such intention in the town clerk’s office not less than fourteen, nor more than thirty days prior to such sale. Sales. Uniform Sales Act passed In 1907. Service. Service of a writ of summons in case of a resident Is made by reading it and the complaint accompanying it in the defend ant's hearing, or by leaving an attested copy in the defendant’s hands or at his usual place of abode; in case of a non-resident, the several courts, other than courts of probate, and the judges, clerks, and assistant clerks thereof, or any county commissioner, in term time or In vacation, may, except where it is otherwise specially provided by law, make such orders as may be deemed reasonable, in regard to the notice which shall be given of the Institution or pendency of all complaints, writs of error and appeal from probate, which may be brought to or pending in any court, when the adverse party, or any person so interested therein, that they ought to be made parties thereto, reside out of the State, or when the names or resi dences of any such persons in interest are unknown to the party instituting the proceeding; and such notice having been given and proved shall be deemed sufficient service and notice. 1764 BANKING AND COMMERCIAL LAWS—DELAWARE Surety Companies. Any corporation with a paid-up capital of not less than $250,000, incorporated and organized for the purpose of transacting business as surety on obligations for persons or corpora tions, on complying with certain requirements of law may be accepted as surety upon the bond of any person or corporation required by the laws of this State to execute a bond. Every foreign corporation before transacting any business in this State amust deposit with the Insurance commissioner a copy or Its charter or articles of association, ana sworn statement of the condition or its business. The insurance commissioner may thereafter issue to such company a license to do business in this State. Such company must appoint the insurance commissioner its agent on whom orocess may be served. Such com pany must file annually on or before March 1st, with the insurance commissioner a statement of the capital of such company and its Investments and risks. An annual license is granted if annual state ment be satisfactory. Local agents must procure certificates of authority to act as agent from the insurance commissioner. The insurance commissioner may also at any time examine the affairs of any surety company doing business in the State. A reserve fund must be maintained equal to 50 per cent of the gross amount of premiums received on business in force. No such company can incur on behalf of any one person or corporation a liability for an amount larger than one-tenth of its paid-up capital stock and sur plus without giving collateral security. Taxes. Land may be sold for delinquent taxes after due adver tising, only so much being sold as is necessary to pay taxes and costs. Owner has one year in which to redeem, by paying the purchase money, with 12 per cent interest. Bonds, notes, or other choses in action, except bonds and notes secured by mortgage on real estate situated in this State, may be exempted from all local taxation by paying to the State a tax of 2 per cent on the face amount thereof for five years, or at the option of the holder thereof for a greater or less number of years at a proportionate rate. Inheritance taxes are levied on all property within Connecticut possessed by any resident of Connecticut at the time of his decease, and all tangible property within Connecticut possessed by a non-resident at the time of his death which passed by gift, to take effect at death or by will to any person, corporation, voluntary association or society, with exemp tions in favor of charities and on certain particular kinds of property. Kates of the taxes are 1 per cent of the value of all property in excess of $10,000 passing to any parent, grandparent, husband, wife, lineal descendant, adopted child, adoptive parent and lineal descendant of any adopted child, up to $25,000 with graded increases; 2 per cent on property passing to the husband or wife of any child of such decedant to any stepchild, brother or sister of the full or half blood and to any descendant of such brother or sister in excess of $3,000 up to and including $25,000, with graded increases; 5 per cent of the value of all property in excess of $500 passing to any persons other than those above mentioned up to and including $25,000 with graded Increases. Only one exemption is allowed for each class. Transfer of Corporation Stocks. (See Corporations.) Trust Companies. (See State Banks and Trust Companies.) Warehouse Receipts. Uniform Warehouse Receipts Act passed In 1907. Wills. All persons of the age of eighteen years, and of sound mind, may dispose of their estate (real or personal) by will. No devise, except for public and charitable uses, or for the case of ceme teries or graves, shall be made to any persons but such as are at the time of the death of the testator in being, or to their immediate issue or descendants. Wills must be in writing, subscribed by the testator, and attested by three witnesses, each of them subscribing in his pres ence, but they will be effectual here if executed according to the laws of the State or country where executed. If after the making of a will, the testator shall marry or a child shall be born to the testator or a minor child shall be legally adopted by him, and no provision is made in such will for such contingency, such marriage, birth or adoption of a minor shild shall operate as a revocation ot such will. No will or codicil shall be revoked in any other manner except by burning, canceling, tearing or obliterating it by the testator or by some person in his presence by his direction or by a later will or codicil. A devise of bequest to a subscribing witness or to the husband or wife of a sub scribing witness, is void unless the will is otherwise legally attested, or unless the devisee or legatee be an heir to the testator. Wills are proved and estates settled in the probate court in the district where the deceased resided. Wills of nonresidents owning property in this State may be proved by filing exemplified copies thereof in district where property is located. Such course should always be taken in order to pass good title to real estate. Workmen’s Compensation Act. Passed in 1913. SYNOPSIS OF THE LAWS OF DELAWARE RELATING TO BANKING AND COMMERCIAL USAGES Revised by Hugh. M. Morris, Attorney at Law, 3018 Du Pont Bldg., Wilmington. (See Card in Attorneys' List.) The material contained in this synopsis states the laws of Delaware correctly as of Jan. 1, 1935. It does not contain any additions or other amendments enacted by the 1935 legislature since such laws have not yet been published. Acknowledgments, in Delaware, may be made in the Superior Court, before the Chancellor, or any judge or notary public or before two justices of the peace for the same county, or before the judge of the municipal court or the Mayor of Wilmington. Elsewhere in the United States, before any Federal Judge or judge in any court of record of any state or mayor or chief officer of any city or borough, with official seal attached; or before the clerk or other officer of said courts, or before any Commissioner of Deeds, or any notary public. In foreign countries, before any consul or representative of the United States, at his official residence, or any Commissioner of Deeds. In 1931, all deed records prior to January 1, 1931, were validated by statute where signed and sealed by the grantor, although the acknowledgment might be defective. Actions. Actions at law and suits in equity are, in general, accord ing to the common law. The distinctions between case and trespass, and covenant and debt are abolished. A simplified procedure is followed in suits on instruments in writing for the payment of money, book accounts, judgments and mortgages, wherein the plaintiff files an affidavit of demand; judgment is entered by default unless an affidavit of defense is filed. Affidavits, in Delaware, may be made before the Chancellor, any judge, justices of the peace, or notary public. In legal proceedings in Delaware, where an affidavit of a non-resident is required, it may be made before any person authorized to take acknowledgments. Aliens. Only such aliens as are eligible to citizenship, or otherwise entitled under a treaty of the United States, may hold real or personal property in the state; property which was acquired by others after April 7, 1921, escheats to the state. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Attachments. All corporations doing business In the State are liable to attachment, except banks, saving institutions, and loan associations. Insurance companies are only so liable for moneys due on the happening of risks provided in the policy. Auctions. Auctioneers must be licensed, except veteran soldiers or sailors of the Civil War who have had two years or more service. Fee is $10 for residents and $100 for non-residents. Banks. All banks are under the supervision of the State Bank Commissioner, and subject to examination by him annually or oftener. Federal Reserve members may be exempted by him from examination. He also has control of small loan companies. Banks may only be created by special act of the Legislature, and no corporation created under the general corporation law may be deemed to have banking powers. Banking powers may be exercised only by a duly chartered and authorized corporation. New banks must have a certificate from the State Bank Commissioner that they are duly authorized to do business. A certificate must also be had to open a branch office in the state. Merger of banks is prohibited unless approved by the Commissioner. In case of impairment of capital, the Commissioner must give a sixty-day warning, and if the deficiency is not corrected In that time, he assumes control of the business or has a Receiver appointed. Four reports a year of financial condition must be sent to the Commissioner. Strict limitations are put on cash reserves, loans, investments, equipment and pledging of assets. Directors must be shareholders. No double liability in this state. Use of the word "Trust” as a part of a corporate name is pro hibited. There is only one state bank, chartered in 1807. Minors are recognized as adults in banking. Passing worthless checks with Intent to defraud is a crime, and it is prima facie evidence of fraud if payment of check, fees and costs is not made within 10 days. The Bank Commissioner has jurisdiction over the business of receiving deposits or payments on income contracts, annuity contracts or cer tificates, or annuity bonds. Registration and a certificate of authority are required, but this does not apply to sellers of merchandise on installments, insurance companies, building and loan associations, banks or trust companies or surety companies authorized to do busi ness in the state. Companies engaged in making small loans are under rigid control by statute and the Bank Commissioner. The Federal Deposit Insurance Corporation is by statute sub rogated to the rights of the depositors in closed banks and trust com panies, in like manner as if assigned. Taxation is assessed on the true value of shares of stock. In savings banks or societies, where there is no capital stock, taxes are assessed on the average of deposits held during the preceding year. Such taxes are a lien on the property of uch savings banks or societies. Brokers must be licensed. An unlicensed broker cannot collect commissions and is guilty of a misdemeanor. Building and Loan Associations are under the jurisdiction of the State Bank Commissioner. The amount of fines is limited to 6 per cent per month for six months and Vi per cent per month there after. After six months’ arrearage, a shareholder may be forced to withdraw. All fees, etc., in any one association must be uniform. Funds may not be invested in corporate stocks. An association may issue bonds or certificates of indebtedness up to 25 per cent of dues paid in, at not over 6 per cent per annum. No more than 50 per cent paid in dues may be loaned on real estate security on other than first liens. The business must be licensed annually, and after July 1, 1931, it is a misdemeanor to solicit sales of shares on commission. An annual statement of business is required, and a list of accounts and standing thereof may be demanded. Failure to maintain standards will expose associations to suit by the Attorney General and assump tion of its business by the Bank Commissioner. Such associations are exempt from the attachment laws. No limitation is placed on the lien of judgments on the bonds for loans. Loans may be made with their own capital stock for security. Partial payments of their mortgages do not have to be recorded. If funds are in excess of requirements, they may be loaned to outsiders for not over 6 per cent. Foreign associations must deposit sufficient securities with the State Treasurer which, with the assets in the state, will be equal to the indebtedness to shareholders in the state. Chattel Mortgages. A bona fide mortgage of personal property duly signed and sealed and acknowledged is a valid lien on the property for five years, if recorded within 10 days of the date of acknowledg ment. It may be foreclosed in equity or by sci. fa. if defaulted for 60 days. Affidavit of bona fldes must accompany the mortgage. It Is unlawful for the mortgagor to remove the goods from the county without consent of the mortgagee. Contracts are joint and several, unless otherwise expressed. Bonds, specialties and notes in writing, payable to order or assigns, are freely assignable; suits thereon are brought by the real party in interest. Assignments of bonds and specialties must be under seal and before one credible witness. A sealed agreement has its common law significance. A sale of goods must be accompanied by payment or security for payment, or delivery; if such goods subsequently come into the vendor’s possession, they are liable to the demands of his creditors. No action shall be brought whereby to charge any person upon any agreement made upon consideration of marriage, or sale of lands, or any agreement not to be performed within one year, or any promise to answer for the debt, default or miscarriage or another, of any sum over $25, unless reduced to writing or memorandum signed by the party to be charged or his agent. Nor shall any action be brought whereby to charge the personal representatives or heirs of any deceased person upon agreement to make a will of real or personal property, or to give a legacy or make a devise, unless such agreement, if made after May 1, 1933, shall be reduced to writing, or some memo randum or note thereof be signed by the decedent, or his agent author ized in writing. Goods sold and delivered and other matters properly chargeable in an account are excepted. In such cases the oath of the plaintiff together with a book regularly kept, is recognized as evidence. Bulk sales are presumed fraudulent against creditors unless inventoried five days before sale and full information is given by the purchaser to all creditors of the seller; failure to comply is also a misdemeanor. Sales by personal representatives or public officers are excepted. Corporations. Not less than three persons may form a corpora tion for any business except banking, municipal government or charitable, penal, reformatory or educational institutions. The cer tificate of incorporation must set forth the name; principal place of business in the state: nature and purposes of the business: types and amount of stock authorized, minimum of capitalization being $1,000; name and residence of incorporators; term of existence, which may be perpetual; extent of liability of stockholders. Corporations have the ower to have succession in its corporate name, to sue and be sued, to ave a corporate seal, to hold real and personal property, to appoint officers and agents, to make by-laws, to dissolve according to law, to conduct business anywhere, and to exercise all the powers and privi leges insofar as may be necessary for the transaction of business. It may not issue currency, receive deposits of money, or buy and sell for eign money as a business. Corporations may hold and transfer their own shares, but cannot vote them. The certificate may be amended. Dividends are payable from annual net profits or net assets beyond capital. At least three directors are required; the president must be one. Other officers are elected by the board. Stock may be paid for by cash, labor done, or real or personal property. No-par stock is recognized, as are proxies, not over three years old, and voting trusts. Meetings may be held outside the state, if so provided by the by-laws. Shares of stock are intangible personalty. Fees are based on the number of shares of stock authorized: minimum, $10. Taxes are likewise so based; minimum, $5. maximum, $25,000. An annual BANKING AND COMMERCIAL LAWS—DELAWARE report Is reauired. Charters are avoided by proclamation if taxes are not paid for two years in succession; althougn action may be brought by the Attorney General for such taxes, and he may also have a receiver appointed for the corporation. Foreign corporations, except insurance companies, must register with the Secretary of State in order to do business in Delaware, show ing its charter, an authorized agent in the state for service of process, and a statement of its assets and liabilities, with a fee of $10. Excep tions; Mail order or similar business, one that merely employs sales men to solicit orders, one installing machinery sold outside the state requiring technical skill, and those engaged In wholly interstate business. Courts. Supreme Court: regular term at Dover third Tuesday In June and January; adjourned term is held first Tuesday after the fourth Monday in October; special sessions are had at the call of the Chancellor at Dover when deemed expedient by a majority of the members. Court of Chancery, Orphans Court: New Castle County at 'Wil mington, fourth Monday in March and second Monday in September. Kent County at Dover, third Mondays in March and September and second Mondays in June and December. Sussex County in George town, second Monday in March and first Mondays in June, Septem ber and December. Superior Court and Court of General Sessions: New Castle County at Wilmington, first Monday in January, March, May, and November and third Monday in September (for criminal cases only). Kent County at Dover, first Monday in July and third Mondays In Febru ary, April and October. Sussex County at Georgetown, first Mondays in February, April and October and last Monday in June. Court of Oyer and Terminer meets on call of Judges. The Superior Court has general jurisdiction in all civil cases, but if suit is brought for less than $50, costs can not be recovered. The Court of Common Pleas, for New Castle County, has contract Juris diction up to $1,000. Court of Common Pleas for Newcastle County now has a limited criminal jurisdiction. The Court of Common Pleas of Kent County, created in 1931, has both contract and tort juris diction up to $1,000, and a limited criminal jurisdiction; appeals are to the Superior Court of Kent County. The jurisdiction of the Justices of the Peace is limited to $500, exclusive of interest and costs. Curtesy. The conveyance or devise of a married woman will not divest the husband's right to curtesy in her real estate. If a wife dies intestate leaving a husband and issue, he is entitled to a life estate in half of her realty. If she dies without issue, he is entitled to a life estate in all of her realty. Death, Presumption of, arises after seven years, as at common law. Decedents Estates. Letters of administration are granted to (1) a person entitled to residue of personal property, or (2) a creditor, or (3) to any suitable person. Executors or administrators must give bond in double the estimated value of the personal property. The order of payment of claims is (1) funeral expenses, (2) medical serv ices during last illness, (3) household and farm servants wages, not over one year, (4) rent, not over one year, (5) judgments, (6) mort gages, recognizances, and other obligations of record, (7) sealed obliga tions, (8) contracts under hand for payment of money or delivery of goods, and (9) other demands. If real estate is sold upon order of the Orphans Court to pay debts, all liens thereon become of equal grade and must be paid from the purchase money before other debts. Banks are authorized to pay over personal deposits of decedents not exceeding $75, not less than 15 days after death to the wife, husband, children, father, mother, sister or brother (preference in order named) without requiring letters of administration; such payment is a full release for the amount so paid. The widow of any decedent shall be entitled, during the year of administration, to cash up to $500.00 which shall take priority over all unsecured debts and claims, expenses, legacies, and taxes, but such payment shall not affect any rights under the husband’s will, or the intestacy laws. A debtor, in order to recover from an estate, must make affidavit of non-payment of the debt by the decedent. One year is allowed for the settlement of estates, but an inventory is required within six months from granting of letters. Es cheat is recognized. Non-residents, banks and trust companies of Delaware or elsewhere (if permitted by their charters) may act as executor or administrator, but a foreign bank may only act to the ex tent that a Delaware bank may act in the place of incorporation of such foreign bank. General claims should be presented within six months. Letters granted in another state are sufficient authority for a personal representative to act in Delaware. Deeds. Warranty deeds are cu stomary. The words “grant” and “bargain and sell” imply a special warranty against the grantor and his heirs, and all claiming under him, in the absence of an express pro vision otherwise. Deeds must be under seal and either acknowledged or proved by a subscribing witness in open court to be acknowledged A deed of a corporation must be executed by the president or a vicepresident, duly authorized by resolution of the board of directors, or by the legally constituted attorney of the corporation; the seal of the corporation, attested by the secretary, must be affixed. If a deed is not recorded within three months from date of acknowl edgment, it does not avail against a subsequent creditor, mortgagee, or purchaser for a valuable consideration. A deed to two or more persons creates a tenancy in common, unless to husband and wife, when it creates a tenancy by the entireties. Depositions may be by written interrogatories or orally; they are taken before a Commissioner named by the applicant, by agreement, or by the Court. With the interrogatories must be filed a list of wit nesses, who alone may be examined. If oral, all questions and answers must be written down by the Commissioner or his duly qualified stenographer. Depositions may be taken to perpetuate tesitmony of aged, infirm or going witnesses, but may be used in evidence only in case those examined are unable to attend the trial. In cases of boundary dis putes, such testimony may be preserved by order of the chancellor. Registers and justices of the peace may take depositions of those beyond the reach of process or of those who are sick. Descent and Distribution. Real estate descends in fee unless otherwise provided, to (1) children in equal shares and lawful issue of deceased children by representation, (2) father and mother, as tenants by the entireties, unless divorced, in which case as tenants in common; if one only survives, then in fee. (3) (a) brothers and sisters of whole blood and lawful issue by representation, (b) brothers and sisters of half blood and lawful issue by representation. In either case brothers and sisters of blood of ancestor from whom intestate acquired land by devise or descent shall be preferred. (4) Next of kin, or lawful issue, with preference to those claiming through the nearest common ancestor. (5) Curtesy and dower are saved (see those titles). (6) If no kin or heir of intestate, then to his or her spouse in fee. Personal Estate (1) children and lawful Issue surviving deceased children, (2) father and mother in equal shares, or all to survivor, (3) brothers and sisters of whole blood and lawful issue surviving, (4) brothers and sisters of the half blood and lawful issue surviving, (6) next of kin in equal degrees, and lawful issue of such as are deceased. Provided, (1) if intestate is married person without issue, spouse takes entire estate, and (2) if with children, spouse takes one-third and children take two-thirds. Duly adopted children are recognized as of the whole blood. Ad vancements to children of real or personal property are deemed to be in lieu of their share pro tanto, but do not affect dower. Descent from an illegitimate child is first to its mother, and after that to her heirs. An illegitimate child shares with legitimate children or their https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1765 issue In property descending from the mother. A child legitimated by either marriage before birth or marriage after acknowledgment of paternity takes as though legitimate. A child acknowledged with out marriage cannot inherit from its father. Dower. A widow is entitled to a life estate in an undivided third of all real estate held by her husband, free from lien or other alienation unless relinquished by her. If the husband dies intestate, the widow becomes tenant in dower of one half, and if he dies without issue, then all of his real estate. Dower may be alienated by antenuptual contract. A widow has the election of taking dower or devise. Dower is barred by the widow’s having lived in adultery without her husband’s connivance or reconciliation. Dower may be barred by the wife’s deed, or upon sale of the lands by the executor or administrator to pay debts of the decedent. Executions. An execution becomes a lien on personalty when delivered to the sheriff, and binds all goods actually levied upon for 60 days. Priority of writs is based on the time of delivery. A sale cannot be had for 30 days after levy, unless goods are perishable. The lien is valid for 3 years as against subsequent execution on the same goods. Executions issued by justices of the peace must be levied on in 30 days and the lien continues for two years. Goods are liable to one year’s rent in preference to execution. There is no redemption of property sold on execution. A stay of six months is granted to defendant from judgment for want of an affidavit of defense, when security is posted. Before justices of the peace, six months stay may be obtained by pleading freehold and nine months by posting security. Exemptions. Family Bible, school books, family library, family pictures, seat or pew in church, lot in burial ground, all wearing apparel of debtor or his family, and, in addition tools or fixtures necessary to carry on a trade, value not exceeding $75 in New Castle and Sussex counties and $50 in Kent county. Sewing machines owned and used by seamstresses and private families are exempt, and pianos and organs which are rented are not liable to distress if the owner has notified the landlord of his title. The above exemptions apply to distress for rent as well as to ordinary executions. There is a further exemption to head of families of personal property of $200 in New Castle county and of $150 of household goods in Kent county; but this does not include goods bought to be sold in the regular transaction of business by the debtor. There is no such exemption in Sussex county. This latter exemption will not avail against a Judgment for work and labor held by an employee—60 per cent of all wages exempt in Kent and Sussex counties. In New Carlisle county, 90 per cent of all wages are exempt from attachment, and balance, not over $50, may be taken for board and lodging. No exemptions, are recognized on a sale for taxes. Any husband and wife may make a joint waiver of exemption. Frauds, Statute of, see Contracts. Fraudulent Sale of Securities. Jurisdiction has been conferred on the Chancellor to enjoin the fraudulent sale or exchange of securities in the State, upon the verified petition of the Attorney General. Holidays. The legal holidays are: Sundays; January 1 (New Year's Day); February 12 (Lincoln’s birthday); February 22 (Wash ington's birthday); Good Friday; May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day): October 12 (Columbus Day); November 11 (Armistice Day); General Election Day as it biennially occurs; Thanksgiving Day; December 25 (Christmas Day). In New Castle and Sussex counties, Saturday after noon after 12; but business done by a bank after 12 on Saturday is legal if it would have been legal, if done before 12 on the same Saturday. When a holiday falls on Sunday, the Monday following is a legal holiday. Homestead. There is no homestead law in Delaware. Insolvent Laws exist and may be applied in the absence of equiva lent provisions in the Federal Bankruptcy Act. They are seldom resorted to. There is no provision for a general discharge. Insurance. The insurance law was codified in 1931. The InsuranceCommissioner has complete supervision of all insurance companies, agents and brokers, including the collection of taxes. A certificate of authority to do business is required of all companies; it may be revoked for insolvency, fraudulent operation, insufficient assets, failure to comply with laws, or financial instability. A foreign or alien company must file copies of its charter, by-laws, policy forms, authorization to do business in its home state, and an appointment of the Commissioner as agent upon whom procass may be served. An annual statement of financial condition is required. The resident agent must countersign all policies. A domestic company cannot do business elsewhere without a certificate of authority. Political con tributions, defamation of rival companies, misrepresentations as to policies and rebates are prohibited. Real estate holdings and invest ments are strictly limited by statute. No person may insure the life or health of another without his consent, except a wife for her hus band, an employer for his employees collectively, or heads of educa tional institutions for health of students. Any minor fifteen years of age or more may validly contract for insurance on his or her person as though he or she were of full age. Insurance agents and brokers must be licensed to do business. The Insurance Commissioner likewise has jurisdiction over domestic and foreign surety and guaranty companies and title insurance companies. Interest. The legal rate is 6 per cent. No debtor shall be required to pay more than the legal rate, but may deduct any excess from the amount of the debt. If already paid, the debtor may recover the ex cess paid over the legal rate in an action if brought within one year from date of payment. Properly registered "small loan” companies, firms or individuals may charge 11 per cent (legal rate plus 5 per cent) on amounts not over $500. Banks are not entitled to such registration, unless such powers are acquired by merger with a registered loan com pany. State banks may not make a profit of more than one per cent for sixty days, but exchange charges may be added. Judgments are a lien from the date of signing or entry, or, if on a Jury trial, from the date of the verdict. If the amount is not deter mined, it is a lien from date of entry only if amount is ascertained and entered before the first day of the next term; otherwise, the lien com mences on date of entry of amount. No judgments are entered by confession in New Castle County, in spite of a statute permitting it. Satisfaction must be entered in 60 days. If a testatum fi. fa. is issued, the Prothonotary must notify other counties within thirty days. Failure to mark record creates liability to damage suit, and rule to ■how cause thereon may be served by publication. A foreign judgment will found an action in debt in Delaware. If the plaintiff files an affidavit of demand, with a certified copy of the Judgment, judgment may be had at the first term for want of an affidavit of defense, although appearance may have been entered. The only defenses recognized go to the jurisdiction of the court render ing the foreign judgment. Limitations. Six months: Mesne profits after ejectment or man date of affirmance if appeal is taken. No recovery is allowed for three years next preceding the ejectment. One year: Actions for personal injuries, forfeiture on a penal ■tatute, forcible entry, and any suit where prior suit failed for want of ■ervice or reversal on appeal. Two years: Forcible detainer. Three years: Guardian’s bond, recognizance in Orphans Court, official bond, waste, and all personal actions. Mutual running accounts do not accrue while open and current. Six years: Sheriff’s official recognizance, testamentary bond, bills, notes and acknowledgments of debt signed by the debtor. Seven years: After expiration of term of office of Escheator on hla bond. Twenty years: Real estate titles. Only ten years is allowed after removal of disability. 1766 BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA Infancy, coverture or mental incompetency will bar the running of the statute. If the defendant is absent from the state when the action accrues, the limitation runs from the entry into the state. Absence after accrual bars running of the statute until return. Appeals from an interlocutory decree in equity must be presented at the first day of the next term of the Supreme Court; from a final decree, six months from signing the decree; taking exceptions to account of executor or administrator, three years; partition, three months. In other cases, rules of court apply. Married Women may freely alienate all property and contract as though unmarried. A married woman may not affect her husband's right of curtesy, unless he has abandoned her without just cause. She may sue and be sued. A husband is liable on his wife’s mortgage bond only if he joins in executing it. Mechanics Liens. The contractor has a lien on buildings and land for money due for construction or repairs; his claim must be filed within thirty days after ninety days have elapsed from the com pletion of the work. All other claims must be filed within the ninetyday period. Proceedings are by sci. fa., and judgment may be had for failure to file an affidavit of defense. Execution is by levari facias. Mortgages are executed like deeds, usually accompanied by bond. Foreclosure must be by intervention by the proper court. Priority of mortgages is based on the date of recording. Lien of purchase money mortgage is superior to all other liens on the property, if recorded within five days from date of ‘sale. Satisfaction must be entered on the record within sixty days from payment; failure to do so will render the mortgagee liable to court action and for damages. One witness is required on an assignment. Release of part of lands does not affect the balance, but it must be under seal and recorded within sixty days. Negotiable Instruments. Uniform Negotiable Instruments Act adopted January X, 1912. (See complete text following “Digest of Banking and Commercial Laws.”) Partnerships, associations and persons using trade names must register them with prothonotary, together with the full names of each and every person comprising such firm. Jurisdiction of dissolution of partnerships is in the Court of Chancery. Limited partnerships may be formed for any business but banking and insurance. A record of members and their liability must be filed with the Recorder of every county in which the firm does business. Protest is required on foreign bills, otherwise optional. (N. I. L., §118.) Sales. See Contracts. Tax Liens. Taxes are a primary lien on all real estate for two years from July first of year imposed. If land is sold by order of the Orphans Court the lien transfers to funds in the hands of the officer so selling, and continues as a lien on the land for balance due. Taxes in New Castle county are a primary lien now for ten years. A tax lien against banks is discharged only by payment. Trade Marks may be registered with the Secretary of State, as may be labels or forms of advertisement, by filing two copies thereof with him. The remedy for infringement is by bill for injunction. There is also a criminal penalty for unauthorized use. Trustees. Trust companies incorporated under the laws of Dela ware and having their principal place of business there may be appointed to any office of trust without giving surety on their bond for faithful performance. A liability growing out of a trust estate is a first lien on the company’s real estate. National banks located in the state are accorded the same powers, and security on their bonds may not be required, in the discretion of the appointing authority. Trustees must file a just and true account at least every two years with the Register in Chancery. Trust Investments may be any of the following: (a) Those specified by trust deed, (b) Bonds of the United States, or any State; of any county, school district or incorporated city or town of Delaware; of any city in United States of over 100,000 population, if net debt is not over 10 per cent of assessed valuation of taxable property; first mortgage bonds on real estate without prior encum brance, and not exceeding 60 per cent of the value of the land when Invested; bonds of railroads whose earnings for five years average one and one-half times the fixed charges; bonds of transportation or public service companies whose earnings for five years average two times the fixed charges; bonds of industrial companies whose earn ings for five years average three times the fixed charges; equipment trust obligations, covering not over 80 per cent of the cost, which mature in 15 years payable in installments beginning not later than three years from date of issue; bonds of railroad or transportation companies guaranteed by a corporation whose bonds satisfy require ments above; and securities of any kind approved by the court having jurisdiction. Responsibility for due care in selection still rests upon fiduciaries. Other property may be taken and held while prudent, but may not be purchased. Investments legal under prior laws may be retained, but when sold, the proceeds must be applied in accordance with the above. Uniform Acts adopted are: Aeronautics, Bills of Lading, Condi tional Sales, Federal Tax Liens, Fraudulent Conveyances, Negotiable Instruments, Non-Support; Warehouse Receipts, Sales Act. Wills. Any person of the age of twenty-one or upward, of sound mind, may make a will. It must be in writing and signed by the testator or some person subscribing the testator’s name in his presence and by his express direction. It must be attested and subscribed by two or more credible witnesses. Nuncupative wills are accorded a limited recognition. Probate proceedings are held before the Register of Wills of the county in which the decedent was a resident. Appeals are usually to the Superior Court, although exceptions to accounts of executors are heard by the Orphans Court. Probate of foreign wills is authorized when there is filed with the Register of the county where the property is located, a certified copy of the probate proceedings from the place of the testator’s domicile; such wills are recognized as to personal property although they may not conform to local requirements. Devise without limitation passes a fee. After-acquired land passes by will. A will is revocable by cancellation, a writing executed by the testator in testamentary form, by implication. After-born children take their intestate share of the estate, in the absence of provision to the contrary. Marriage after the execution of a will by a husband entitles his widow to her intestate share, which must be contributed ratably by all the beneficiaries. Posthumous children born alive are considered as after-born children. A devise or legacy to a child, lineal descendant, brother, sister, nephew or niece does not lapse on his or her decease prior to that of the testator, but passes to their surviving issue. A legacy is not satisfaction of a debt, unless a contrary intent clearly appears. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF THE DISTRICT OF COLUMBIA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Dulany & Mann, Attorneys at Law, 815 15th St., Washington, D. C. (See card in Attorney List.) Acknowledgments. The deed of a corporation shall be executed by having the seal of the corporation attached and being signed with the name of the corporation, by its president or other officer, and shall be acknowledged as the deed of the corporation by an attorney appointed for that purpose, by a power of attorney embodied in the deed or by one separate therefrom, under the corporate seal, to be annexed to and recorded with the deed. Acknowledgment of Deeds. When any deed or contract under seal relating to land is to be acknowledged out of the District of Columbia, but within the United States, the acknowledgment may be made before any judge of a court of record and of law, or any chancellor of a State, any judge or justice of the supreme, circuit, or territorial courts of the United States, or any justice of the peace or notary public; Provided that the certificate of acknowledgment aforesaid, made by any officer of a State or Territory, not having a seal, shall be accompanied by a certificate of the register, clerk, or other public officer that the officer taking said acknowledgment was in fact the officer he professed to be. Deeds made in a foreign coun try may be acknowledged before any judge or notary public, or before anysecretary of legation or consular officer or acting consular officer of the United States as such consular officer is described in section 1674 of the revised statutes of the United States, and when the acknowl edgment is made before any other officer other than a secretary of legation or consular officer or acting consular officer of the United States, the official character of the person taking the acknowledgment Bhall be certified in the manner prescribed as to deeds out of the Dis trict of Columbia but within the United States. No deeds of con veyance of either real or personal estate by individuals shall be exe cuted or acknowledged by attorney. Actions. The common law forms of actions are used except as modified by statutes. Administration. The probate court, a special term of the supreme court of the District of Columbia, has exclusive jurisdiction of the settlement of estates. A written petition stating the facts In the case must be filed with the register of wills. This petition is acted upon by a Justice of the supreme court of the District, who sits daily. All executors and administrators and guardians are required to give bond with security to be approved by the court. The testator may waive the giving of bond, but the court always requires a bond sufficient to cover the debts and legacies of the deceased not to exceed double the value of the personal estate. By act of Congress, certain trust companies incorporated thereunder may act as executor or ad ministrator without bond, and corporations having power under their charters may act as sureties in all cases where individuals can. Credi tors may be barred in thirteen months provided the required notice is properly published. Probate court may order sale of real estate to ay debts, in case personal assets are insufficient. Assets of non-reslents in District of Columbia are subject to claims of local creditors for one year after death. Affidavits. Affidavits for use in the District of Columbia should be taken before a justice of the peace, notary public, judge of any court of record, or a United States commissioner. If taken before a justice of the peace, a certificate of his official authority from a clerk of a court of record should be attached. Allens. Aliens may hold real and personal property in the District of Columbia, and may acquire real estate by descent. Alien corpora tions are prohibited from acquiring real estate. Corporations of which over 50 per cent of the stock is or may be owned by persons or asso ciations not citizens of United States can not acquire or own real estate in District of Columbia. Appeals. Appeals from the Municipal Court to the Supreme Court of the District are now abolished. Writs of error from the Court of Appeals of the District may issue to the Municipal Court for the review of judgments on questions of law. Appeals may be taken from the supreme court of the District of Columbia to the court of appeals of the District of Columbia. Certain cases are appealable direct to the Court of Appeals. Appeals may be taken from the court of appeals to the supreme court of the United States; 1. In cases where jurisdiction of trial court is in issue. 2. Prize cases. 3. Constitutional questions or treaties involved. 4. Where validity of any authority exercised under U. S., by an officer is in question and 6. Construction of any law of U. S. Is drawn in question. Arrest. There is no imprisonment for debt in the District of Columbia. The court has the power to imprison for non-payment of alimony in divorce cases, and for contempt of court. Attachments. In any action at law in the Supreme Court of the District of Columbia or the Municipal Court of said District, for the recovery of specific personal property, or a debt, or damages for the breach of a contract, express or implied, if the plaintiff, his agent or attorney, either at the commencement of the action or pending the same, shall file an affidavit showing the grounds of his claim and setting forth that the plaintiff has a just right to recover what is claimed in his declaration, and where the action is to recover specific personal property stating the nature and, according to affiant’s belief, the value of said property and the probable amount of damages to wnich the plaintiff is entitled for the detention thereof, and where the action is to recover a debt stating the amount thereof, and where the action is to recover damages for the breach of a contract setting out, specif ically and in detail, the breach complained of and the actual damage resulting therefrom, and also stating either, first, that the defendant is a foreign corporation or is not a resident of the District, or has been absent therefrom for at least six months; or, second, that the defendant evades the service of ordinary process by concealing him self or temporarily withdrawing himself from the District; or, third, that he has removed or is about to remove some or all of his property from the District, so as to defeat just demands against him; or, fourth, that he has assigned, conveyed, disposed of, or secreted, or is about to assign, convey, dispose of, or secrete his property with intent to hinder, delay, or defraud his creditors; or, fifth, that the defendant fraudulently contracted the debt or incurred the obligation respecting which the action is brought, the clerk shall issue a writ of attachment and garnishment, to be levied upon so much of the lands, tenements, goods, chattels, and credits of the defendant as may be necessary to satisfy the claim of the plaintiff: Provided, That the plaintiff shall first file in the clerk’s office a bond, executed by himself or his agent, with security to be approved by the clerk, in twice the amount of his claim, conditioned to make good to the defendant all costs and damages which he may sustain by reason of the wrongful suing out of the attachment. Banks. All banking institutions are under supervision of the Comptroller of the Currency. No banking business may now be done in the District except by corporations previously organized and doing such business or organized in accord with the incorporation BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA laws of the District of Columbia or United States. Limit of liability of any person to banks is determined by same limits applying to national banks. Non-member banks of the Federal Reserve System are required to maintain reserves on the same basis as national banks doing business in the District. Liquidation of any banking business is provided for by a two-thirds vote of shareholders. Many other sections of the national banking laws are extended to apply to all banks. Criminal laws applicable to member banks of the Federal Reserve System are also in force. Bills and Notes. Uniform Negotiable Instruments Act in force, adopted January 12, 1899. Chattel Mortgages. No bill of sale or mortgage or deed of trust to secure a debt of any personal chattels whereof the vendor, mort gagor, or donor shall remain in possession, is valid and effectual to pass the title herein, except as between the parties to such instru ment and as to other persons having actual notice of it, unless the same be executed and acknowledged and within ten days from the date of such acknowledgment recorded in the same manner as deeds of real estate: and as to third persons not having notice of it, such instrument shall be operative only from the time within said ten days when it is delivered to the recorder of deeds to be recorded. Collaterals. The holder of the note as collateral security for debt stands upon the same footing as the purchaser and may maintain suit thereon for his own benefit. The collateral pledged may be sold in accordance with the terms of the collateral note which usually pro vides that the collateral may be sold upon non-payment of the prin cipal of the note, either at public or private sale, and in such cases the purchaser at any such sale obtains a valid title to the collateral sold. Contracts. Every contract and obligation entered into by two or more persons, whether partners or merely joint contractors, whether under seal or not, written or verbal, and whether expressed to be joint and several or not, is for the purposes of suit deemed joint and several. On the death of one or more of such persons, his or their executors, administrators, or heirs are bound by said contract in the same manner and to the same extent as if the same were expressed to be joint and several. In actions ex contractu against alleged joint debtors it is not necessary for the plaintiff to prove their joint lia bility in order to maintain his action, but he is entitled to recover, as in actions ex delicto, against such of the defendants as shall be shown by the evidence to be jointly indebted to him, or against one only, if he alone is shown to be indebted to him, and judgment will be rendered as if the others had not been joined in the suit. Any of several joint debtors, when their debt is overdue, may make a separate composition or compromise with their creditors. Corporations. Any three or more persons may form a company for the purpose of carrying on any enterprise or business which may be lawfully conducted by an individual, excepting banks of circulation or discount, railroads and such other enterprise or business as is other wise provided for. Such corporations may have a perpetual existence. No such company is authorized to transact business until 10 per cent of the capital stock shall have been actually paid in, either in money or property at its actual value: and the recorder of deeds, before filing any certificate of incorporation, must be satisfied that the entire capital stock has been subscribed for in good faith. All of the stock holders of such company are severally and individually liable to the creditors of the company in which they are stockholders for the unpaid amount due upon the shares of said stock held by them respectively, for all debts and contracts made by such company, until the whole amount of capital stock fixed and limited by such company shall have been paid in, and a certificate thereof shall have been made and recorded. Every such company must annually, except insurance companies, within twenty days from the first of January, make a report, which shall be duly published and which report shall state the amount of capital and the proportion actually paid and the amount of existing debts. Foreign corporations doing business in the District of Columbia are subject to service of process on their agents or on the persons conducting their business, or by leaving copy thereof at the principal place of business of such company, or at the residence of its agent. The affairs of the corporation shall be managed by not less than three nor more than fifteen trustees, a majority of whom must be residents of the District, to be annually elected, except for the first year, by the stockholders, at such time and place as may be rovided by the by-laws. The fee of the recorder for filing all certicates of incorporation where? capital stock is authorized is forty (40) cents on each $1,000 of the amount of the capital stock of the corporation, as set forth in its certificate, provided that no fee shall be less than $25. Courts in session continuously throughout the year. Suits on contracts, accompanied by sufficient affidavit of right to recover, is result in judgment in twenty days, exclusive of Sundays and legal holidays, after day of service on defendant, unless defendant file and affidavit setting forth facts which, if true, would in law constitute a valid defense. Days of Grace abolished. Deeds. The following form of deed is now all that is required in the District of Columbia to convey a fee simple title to real estate: This deed, made this... .day of............. in the year.......... by me,.... of............. witnesseth: That in consideration of (here insert con sideration), 1. the said............. do grant unto (here insert grantee's name), of..............all that (here describe the property) Witness my hand and seal. .................................. (Seal.) A deed must be acknowledged and recorded with the recorder of deeds and takes effect from the time of recording. A scroll is considered a sufficient seal. Depositions. Depositions of witnesses to be used in any civil cause whether the case be at issue or not, may be taken under any of the following conditions: 1. Where the witness lives beyond the District of Columbia. 2. Where the witness is likely to go out of the United States or out of the District and not return in time for the trial. 3. Where the witness is infirm or aged, or for any reason the party desiring his testimony fear he may not be able to secure the same at the time of trial, whether the said witness resides within the Dis trict or not. 4. If during the trial any witness is unable, by reason of sickness, or other cause, to attend the trial, the deposition of such witness may, in the discretion of the court, be taken and read at the trial. The deposition may be taken before any judge of any court of the United States; before any commissioner or clerk of any court of the United States, or any examiner in chancery of any court of the United States: before anv chancellor, justice, or judge or clerk of any court of any State or Territory or other place under the sover eignty of the United States, or any notary public or justice of the peace within any place under the sovereignty of the United States: Provided, that no such person shall be eligible to take such deposition who is counsel or attorney for any party to the cause, or who is in anywise interested in the event of the cause. Descent and Distribution. Real Estate, Lands of intestate descend, first, to child or children equally. If there be children of a deceased child, these children take (equally) the share of their immedi ate ancestor. If no child or descendant of such child, and the estate descended to intestate on the part of the father, then it goes to the brothers and sisters of the intestate of the blood of the father, and their descendants equally. If there be no such brothers or sisters or descendants, then it goes to the grandfather on the part of the father: and if no such grandfather living, then it goes to the descend ants of such grandfather, and their descendants in equal degree equally: and so on, passing to the next lineal male paternal ancestor, and if none such, to his descendants in equal degree equally, without end; and if no paternal ancestors or descendant from such ancestor, then to the mother of the intestate, and if no mother living, then to her descendants in equal degree equally: and If there be no mother living or descendants from such mother, then to the maternal ancestor and P https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1767 their descendants in the same manner as above directed as to the paternal ancestors and their descendants. If the estate descended to intestate on part of mother, then it follows the mother’s line, and afterwards that of the father, in manner above indicated. If the estate vested in intestate by purchase, and was not derived from or through either of his ancestors, and there be no child or descendant of such intestate, then it descends to brothers and sisters of whole blood, and their descendants in equal degree equally: next to brothers and sisters of half blood, and their descend ants; next to father of intestate: next to mother; then to grandfather on father’s side, or his descendants: then to grandfather on mother’s side, or his descendants, and so on, alternating next male paternal ancestor and his descendants, and next male maternal ancestor and his descendants. Personal Estate. Surplus of personal estate of an Intestate, after paying debts and expenses of administration, is to be distributed as follows: If the intestate leave a widow or surviving husband and no child, parent, grandchild, brother, or sister, or the child of a brother or sister of the said intestate, the said widow or surviving husband shall be entitled to the whole. If there be a widow or surviving husband and a child or children, or a descendant or descendants from a child, the widow or surviving husband shall have one third only. If there be a widow or surviving husband and no child or descendants of the intestate, but the said intestate shall leave a father or mother, or brother or sister, or child of a brother or sister, the widow or surviving husband shall have one half. The surplus, exclusive of the widow’s share, or the whole surplus (if there be no widow), shall go as follows: If there be children and no other descendants, the surplus shall be divided equally among them. If there be a child or children and a child or children of a deceased child, the child or children of such deceased child shall take such share as his, her, or their deceased parent would, if living, be entitled to, and every other descendant or descendants in existence at the death of the intestate shall stand in the place of his, her, or their deceased ancestor. If there be a father and no child or descendant, the father shall have the whole; and if there be a mother and no father, child, or descendant, the mother shall have the whole. If there be a brother or sister, or child or descendant or a brother or sister, and no child, descendant, or father or mother of the intestate, the said brother, sister, or child or descendant of a brother or sister shall have the whole. Every brother and sister of the intestate shall be entitled to an equal share, and the child or children, or descendants of a brother or sister of the intestate, shall stand in the place of their deceased parents respectively. After children, descendants, father, mother, brothers, and sisters of the deceased and their descendants, all collateral relations in equal degree shall take, and no representation among such collaterals shall be allowed. If there be no collaterals, a grandfather may take, and if there be two grandfathers they shall take alike; and a grandmother, in case of the death of her husband, the grandfather, shall take as he might have done. If any person entitled to distribution shall die before the same shall be made, his or her share shall go to his or her representatives. Posthumous children of intestate shall take in the same manner as if they had been born before the decease of the intestate, but no other posthumous relation shall be considered as entitled to distribution in his or her own right. In the distribution of personal estate there shall be no distinction between the whole and half blood. Dower. A wife is entitled to dower in all real estate owned by the husband at the time of his death, including equitable as well as legal estates. Evidence. (See Depositions.) Executions. Executions may be levied upon all goods and chat tels of the debtor nob exempt, and upon gold and silver coin, bank notes or other money, bills, checks, promissory notes or bonds, or certificates of stock in corporations owned by said debtor, and upon money owned by him in the hands of the marshal or of the constable charged with the execution of such writ, and also upon all legal lease hold and freehold estates of the debtor in land. Executions on judg ments before justices of the peace may be superseded, according to the amount of the judgment, upon good and sufficient security being entered by a person who may at the time be the owner of sufficient real property located in the District, above all liabilities and exemp tions, to secure the debt, costs and interests from one to six months, but there can be no stay of execution for wages of servants or common laborers, nor upon any judgment for less than $5. Exemptions. (Actual residents.) In addition to wearing ap parel, etc., household furniture to the value of $300, implements of debtor’s trade or business to the value of $200, stock for carrying on business to amount of $200. one horse, harness and cart, wagon or dray, and earnings of married men or heads of families, not to exceed $100 per month for two months. Exemptions are only allowed where the party claiming such is the head of a family or householder residing in the District. Foreign Judgments. Suits may be instituted in the supreme court of the District of Columbia on any judgment of a court of record In any other jurisdiction. The declaration in any such case must be accompanied by a transcript of the record of such judgment verified according to the act of congress in such cases made and provided, and judgment in due course may be rendered on such transcript as in any other case. Garnishment. After judgment the writ of garnishment may Issue against specific property or credits in the hands of the garnishee and on the return of the writ, if there be credits, the judgment or condemnation follows. The writ of garnishment can not be issued against the United States or the District of Columbia. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 22 (Washington’s birthday); May 30 (Memo rial Day); July 4 (Independence Day); first Monday in September (Labor Day); Thanksgiving Day; December 25 (Christmas Day); and day of the inauguration of the President, in every fourth year. Every Saturday is a legal half holiday and notes falling due on that day are not payable until Monday. Husband and Wife. The wife’s property is exempt from the hus band's debts. The husband may convey direct to his wife. The wife may use ail of her property of every description as fully as if she were unmarried, and may dispose of the same by deed, etc., as fully as if she were unmarried. She also has power to trade and to sue and be sued, but no married woman under the age of twenty-one years can make a valid deed or conveyance. On the death of a married woman the husband is entitled to an estate by courtesy in her fee simple prop erty of which she dies intestate. The husband is not liable for the debts of his wife contracted before marriage. A husband, who wil fully neglects to provide for wife or minor child under sixteen years. In destitute circumstances, may be adjudged guilty of a misdemeanor, and may be fined, or imprisoned, by the court having jurisdiction. Interest. The legal rate of interest in the District of Columbia Is 8 per cent, and in any suit where the contract is tainted with usury the plaintiff forfeits the whole of the interest so contracted to be received, and where usurious interest has been paid it can be recovered pro vided action for such recovery be brought within one year. In an action on a contract for the payment of a higher rate of interest than Is lawful in the District, made or to be performed in any state or territory of the United States where such contract rate of interest is lawful, the judgment for the plaintiff shall include such contract Interest to the date of the judgment and interest thereafter at the rate of 6 per centum per annum until paid. By express contract this rate may be increased to 8 per cent. Judgments. Every judgment is good and enforceable by an execu tion issued thereon for a period of twelve years from the date when an •xecution might first have been issued thereon or from the date of the 1768 BANKING AND COMMERCIAL LAWS—FLORIDA last revival thereof by scire facias. Judgments of the municipal court are good for six years, but are not liens on real estate until recorded in the supreme court of the District of Columbia. Jurisdiction. (See Actions, Appeals, and Municipal Court.) Limitations. Fifteen years for recovery of lands, tenements or hereditaments; executor’s or administrator’s bond, five years; instru ments under seal, twelve years; simple contracts and recovery of per sonal property and damages for its unlawful detention, three years; statutory penalty or forfeiture, libel, slander, assault, battery, may hem, wounding, malicious prosecution, false arrest or imprisonment, one year; all other actions three years. Usual exceptions in favor of persons under disability. Acknowledgment to revive action on debt must be in writing. Part payment will take debt out of statute. Actions may not be maintained against District for unliquidated damages unless written notice of time, cause, place is given within six months of damage. Married Women. (See Husband and Wife.) Mortgages. Mortgages are almost entirely supplanted by deeds of trust, requiring no court proceedings to foreclose. Joining the wife is necessary to bar dower. Municipal Court. By an act of Congress, effective June 1, 1921, the Municipal Court of the District of Columbia was made a court of record. It now has exclusive jurisdiction in all civil cases in which the claimed value of personal property, debt or damages exclusive of interest and costs, does not exceed $1,000. When the value in controversy shall exceed $20, and in all actions for the recovery of the possession of real property, either party may demand a jury trial. Judgments rendered by the Municipal Court remain in force for six (6) years and no longer, unless it shall be docketed with the clerk of the Supreme Court oi the District of Columbia, when it remains in force for twelve (12) years. No judgment shall be a lien upon the defendants real property until so docketed. Partnerships. Limited partnerships for the transaction of any mercantile, mechanical, or manufacturing business within the District may be formed by any two or more persons, but the number of special artners is limited to six. The special partners are not liable for le debts of the partnership beyond the fund contributed by them to the capital. A certificate setting forth the firm name; general nature of the business to be conducted; names of all the general and special partners interested therein, distinguishing which are general and which are special, and their respective places of resi dence; the amount of capital contributed by each special partner to the common stock; and the period at which the partnership is to commence and terminate must be filed with the clerk of the supreme court after having been acknowledged in the manner prescribed for deeds. Protest. May be made by a notary public under his hand and seal; or by any respectable resident of the place where the bill is dishonored, in the presence of two or more credible witnesses. Where a foreign bill, appearing on its face to be such, is dishonored by nonacceptance, it must be duly protested for same; and where such a bill which has not previously been dishonored by non-acceptance, is dishonored by non-payment, it must be duly protested for same. If it is not protested the drawer and indorsers are discharged. Where a bill does not so appear to be a foreign bill, protest thereof in case of dishonor is unnecessary. The protest must be annexea to the bill or contain a copy thereof and must state the (1) time and place for presentment; (2) the fact that presentment was made and the manner thereof; (3) the cause or reason for protesting; (4) the demand made and the answer given, if any, or the fact that the drawer or acceptor cannot be found. Records. The exemplification of the record under the hand of the keeper of the same, and the seal of the office or court where such record may be made, is good and sufficient evidence to prove any record made or entered in any of the States or Territories of the United States; and the certificate of the party purporting to be the keeper of such record, accompanied by such seal, is prima facie evidence of that fact. A copy of the record of any deed or other instrument In writing not of a testamentary character, where the laws of the State, Territory, or country where the same may be recorded require such record, and which has been recorded agreeably to such laws, and the copy of any will which said laws require to be admitted to probate and record, by Judicial decree, and of the decree of the court admitting the same to probate and record, under the hand of the clerk or other keeper of such record and the seal of the court or office in which the record has been made, is prima facie evidence to prove the existence and contents of such deed, will, or other instru ment in writing, and that it was executed as it purports to have been. Taxes. The rate of taxation is now subject to the will of Congress to be fixed each year as may be expedient. At present the rate is $1.80 per hundred upon assessed values of real and personal property. Assessments of real estate are fixed at the fair cash value. Penalty of 1 per cent per month for default in payment. A lien for real estate taxes accrues on the date taxes are assessed- July 1st. Taxes are payable, one-half on Sept. 1st and one-half on March 1st of each year, with 30 days grace ror payment betore penalty attaches. New assessments are made every year for real estate (unless improve ments are put on) and every year for personal property by a permanent Board of Assessors. Intangibles are taxed at the rate of one-half of one percentum of the fair value thereof. Trust Companies. Trust companies can be organized under the general provisions of the code on that subject. No trust company can be incorporated with less capital stock than $1,000,000. May do a storage business with a capitalization of not less than $1,200,000. Foreign companies desiring to operate in the District must first com ply with the provisions for the organization of trust companies under the laws of this District. Wills. All wills and testaments must be in writing and signed by the testator, or by some other person in his presence and by his express directions, and shall be attested and subscribed in the presence of the said testator by at least two credible witnesses. No will, testa ment, or codicil is effectual for any purpose whatever unless the person making the same be, if a male, of the full age of twenty-one years, and if a female, of the full age of eighteen years, and be at the time of executing or acknowledging it, of sound and disposing mind and capable of executing a valid deed or contract. Any will executed after January 17, 1887, and before January 1, 1902, devising real estate, from which it shall appear that it was the intention of the testator to devise property acquired after the execution thereof shall be deemed, taken and held to operate as a valid devise of all such property; and any will hereafter executed, which shall by word3 of general import devise all of the estate or all of the real estate of the testator shall be deemed, taken and held to operate as a valid devise of any real estate acquired, by said testator after the execu tion thereof, unless an intention shall appear to the contrary. Where a devisee or legatee dies before the testator, leaving issue, such issue stands in the place of the deceased devisee or legatee unless a contrary intention appear from the will. S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF FLORIDA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Williams & Williams, Attorneys at Law, 263 Palm Ave., Sarasota, Fla. Accounts. Open accounts are barred in three years. Acknowledgments must in every instance be under official seal. If made in the State of Florida, may be made before any judge, justice of the peace, clerk or deputy clerk of a court of record, or notary public; or if made out of the State, and within the United States, before a United States Commissioner of Deeds appointed by the governor of this State, or before a judge or clerk of any court of the United States or of any state, territory or district, having a seal, or before a notary public or justice of the peace of such state, territory or district, having an official seal, and the certificate of acknowledgment or proof shall be under the seal of the court or officer as the case may be. If made out of the United States, before any commissioner of deeds appointed by the governor of the State to reside in such country, or any notary public of such foreign country, or before any minister charge d'affaires, consul-general, consul, vice-consul, commercial agent, or vice-com mercial agent of the United States appointed to reside in such country. Conveyances of dower and powers of attorney for the execution of deeds to real estate must be executed in like manner as conveyances of real estate. A wife's acknowledgment must be taken separate and apart from her husband. Officers must certify that the grantors are known to him. The following is the usual form adopted, viz: State of Florida, 1 County of..............................J Before the subscriber personally appeared...........................................and his wife.................... known to me to be the individuals described in and who executed the foregoing Instrument who acknowledged that they executed the same for the uses and purposes therein expressed and the said..................................................................wife of the said............ ............................. being by me further and privily examined separate and apart from her said husband, acknowledged and declared that she executed the same freely and voluntarily, and without fear, appre hension, compulsion, or constraint of, or from her said husband, and for the purpose of renouncing and relinquishing all her right, of what soever kind, in and to said property. Given under my hand and seal official this................day of................. 19.... Notary Public. My commission expires.............................................................(See notaries.) Actions. Suits shall be begun only in the county (or if less than $100 in justice district) where the defendant resides, or where the cause of action accrued, or where the property in litigation is. If brought in any county where defendant does not reside, the plaintiff, or some person in his behalf, shall file with the praecipe or bill in chan cery, an affidavit that the suit is brought in good faith and with no intention to annoy the defendant. This latter provision does not apply to suits against non-residents. Where there are joint defendants suit may be brought in any court (or justice district) where any one of the defendants resides, or where the cause of action accrued or where the property in litigation is. Corporations (domestic) can only be sued in a county where they keep an office. Foreign corporations may be sued in any county where they have an agent, or where the cause of action accrued or where the property in litigation is. Administration of Estates. Upon the death of a person intestate or having made a will but appointing no executor, the county judge appoints an administrator, preferring first the next of kin; but if none such apply, then, upon notice given by publication, any creditor or suitable person. No minor can bo appointed. If no one applies for letters of administration within thirty days after death, the probate court must order the sheriff to act. The administrator appointed by the court must give bond in amount to be fixed by the probate judge, respect being had to the value of the estate. The sheriff when acting as administrator is liable upon his official bond. Claims against an estate are barred after one year from date of notice given by adminis trator to present same. Claims are required to be filed in the office of the County Judge. The compensation of the administrator is determined by the court and, in addition to compensation for his ordinary duties, not to exceed 6 per cent of money received for sales made of personal and real property. Administrators must make annual settlements before the first day of June each year or forfeit commissions. The Circuit Court is empowered to authorize admin istrator or executor to carry on deceased’s trade or business for a reasonable time. Administration of estates shall not be necessary where there is a sole heir and the estate is not indebted, or where the estate is not indebted and there are several heirs to make division of the property amicably among themselves, or where there is no property except the exempt homestead or exempt personal property, or where there is money in the bank less than $1,000.00, or where collections are to be made that will not cause the aggregate amount of personal property to exceed $1,000.00 (instead of the above you may merely state that under certain conditions administration of estates is unnecessary). Affidavits may be made before any judge, clerk of the circuit and supreme courts, justice of the peace, or notary public. Aliens. No distinction between any citizens, except that they are not allowed to vote. Appeals. Appellate proceedings for the common law side are by writ of error, except where certiorari or prohibition lie, which must be sued out within six months from the date of the judgment. The record must be filed in appellate court on or before the return day of the writ, under penalty of dismissal. Questions of fact can only be taken up by bill of exceptions, which must be presented within the term of the court unless by special order the time is extended. Appeals In Chancery may be taken within six months and the law governing writs of error as far as it relates to filing of transcripts of records and proceedings thereon and filing assignment of errors, the duty of appellate court in giving judgment, in causing execution of its decrees and quashing writs of error, are applicable to appeals in chancery. Notice of appeal in chancery must be filed with clerk and recorded in minutes. This gives appellate court jurisdiction. Assignments and Insolvency. Assignments by Insolvents are provided for by law. Preferences are not allowed. All property, except that which is exempt, must be surrendered to the assignee. Assignee gives bond and winds up estate. Attachment process may issue upon affidavit made, setting forth that amount is actually due; that plaintiff has reason to believe defend ant will fraudulently part with his property before judgment can be recovered or is actually removing his property, or is about to remove It out of the State, or resides beyond the limits thereof, or is actually removing or about to remove out of the State, or absconds or conceals himself or is secreting property or fradulently disposing of same, or actually removing, or is about to remove, beyond the judicial circuit In which he, she, or they reside. Attachment may also issue for a debt not due, upon affidavit stating that the debt is actually existing, and that the defendant is actually removing his 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 demands, or is fraudulently secreting his property for such purposes. The making of the affidavit causes all debts to mature for the purpose of the suit. Plaintiff must give bond, with two sureties in at least double the debt BANKING AND COMMERCIAL LAWS—FLORIDA or sum demanded. One surety is sufficient if that surety is a surety company authorized to do business in the state of Florida. Service of notice of the suit may be either personal or by publication where attachment is levied and property is not retaken by defendant. No arrest allowed in civil actions. Writs of garnishment may be issued both before and after judgment. If issued before judgment plaintiff, his agent or attorney must make affidavit that the debt for which the plaintiff sues is just, due and unpaid; that the garnishment applied for is not sued out to injure either the defendant or the garnishee; that he does not believe that defendant will have in his possession after execution shall be issued visible property in this state and in the county in which suit is pending upon which a levy can be made sufficient to satisfy the amount of plaintiff's claim, stating the amount, and, except in cases in which plaintiff has had an attachment or obtained his final judgment, he, his agent or attorney, must enter into bond payable to defendant in double the amount of the debt, condi tioned to pay all costs and damages which defendant may sustain in consequence of plaintiff’s improperly suing out the writ. Banks. Corporations for carrying on the business of banking may be formed by any number of persons not less than five, with a board of directors consisting of not less than five nor more than twenty-five. No banking company shall be organized with a capital of less than $50,000, except that banks with a capital of not less than $25,000 may, with the approval of the comptroller, be organized in any city or town containing not more than 3,000 inhabitants. The capital stock shall be divided into shares of $100 each. Stockholders of every banking, savings and trust company, shall be held individually responsible equally and rateably and not for one another for all contracts, debts and engagements of such company to the extent of the amount of their stock therein at the par value thereof in addition to the amount invested in such shares. Persons holding stock as executors, administrators, guardians, or trustees are not personally subject to any liability as stockholders; but the estates and funds in their hands are liable to the same extent as a testator, intestate, ward or person interested in trust funds would be if living and com petent to hold the stock in his own name. Banking corporations are formed as other corporations and cannot begin business until author ized by the comptroller. Directors must be citizens of the United States and at least three-fifths of the directors must have resided in the State of Florida for at least one year preceding their election as director and every director must own in fiis own right at least ten shares of stock. Every banking firm, banking company or trust company or liquidating agency, except national banks, shall be ex amined at least twice in each year by examiners appointed by the State Comptroller, and shall furnish financial reports whenever called upon by the State Comptroller. The comptroller on becoming satis fied of the insolvency of all banking corporations in the State except national banks, or that the affairs of any such bank are in an unsound condition or threatened with insolvency because of illegal or unsafe investments, or that it is violating any of the laws of the State relative to banking corporations, may in his discretion apply to the proper court and have a liquidator take charge of the assets and affairs of such banking corporation. Such liquidator is under the direct control of the comptroller and may be removed by the comptroller. No new private banks permitted after June 4, 1915. Banks and Trust Com panies may issue preferred stock but it cannot affect liability of com mon stock. Bills of Lading. Bills of lading are evidence against the carrier of the direction by which freights are to be received, carried, and delivered —collector or holder of commercial paper, attached to a bill of lading not a warrantor of the quantity or quality of the goods represented thereby, except by express contract in writing, and the officers, agents, and employes of the carrier are required to comply with the terms of the bill ot lading under penalty of criminal prosecution. Blue Sky La w. “On 7-1-31 the Uniform Sale of Securities Act went into effect and is administered by the Florida Securities Commission.” Chattel Mortgages and Deeds of Trust. All conveyances in tended to secure the payment of money are mortgages. Chattel mortgages must be recorded or the property delivered to mortgagee to make them effectual against bona fide creditors and purchasers for value. Injunction will be granted against the removal of mortgaged personalty from the State; can only be foreclosed by bill in chancery unless under $100, and upon personal property, when a common law action may be brought in justice of the peace court, and mortgage filed with precipe. The form and effect of trust deeds have not been dis turbed by statute. It is a criminal offence to mortgage personal prop erty more than once without the consent of first lienor. Collateral Security. It is a misdemeanor to sell, pledge, loan, or in any way dispose of collateral security without the consent of pledgor. A written agreement may be made at the time of making the pledge for the sale of the collateral in such manner and upon such terms as the parties may desire, but notice must be given to pledgor ten days prior to sale. Conditional Sales Contract. Conditional sales contracts are valid in Florida as such and may be either oral or in writing. No requirement as to recordation until the elapse of two years from date of delivery of the property. Invalid after two years against purchasers or creditors unless recorded. For purpose of recordation contract should be signed, sealed, witnessed and acknowledged before a Notary Public. Contracts. Statute of Frauds. In order to bind an admin istrator personally, or any one for the debt or default of another, or one upon an agreement made in consideration of marriage; or upon contracts for the sale ofiands,tenements,or hereditaments or any uncer tain interest therein or for any lease thereof for a period longer than one year; or upon an agreement not to be performed within one year, there must be an agreement, note, or memorandum thereof in writing signed by the party to be charged, or some one lawfully authorized by him. Contracts for the sale of personal property must be in writing or the property must be delivered or earnest money paid. News papers and periodicals must either be subscribed for or ordered in writing. Conveyances. (See Acknowledgments.) All conveyances of real estate, or any interest therein for a term of years of more than two years, must be by deed in writing, signed, sealed and delivered in the presence of at least two subscribing witnesses; and in order to be effectual against subsequent grantees or incumbrances, must be recorded. The wife’s separate estate can be conveyed only by the Joint deed of herself and husband, and confirmed by her acknowledg ment, taken separate and apart from her husband. Words of limita tion unnecessary. Husband may convey direct to wife, Corporations may be organized for any lawful business under the General Corporation Law of 1925, except banking, trust, safety deposit, building and loan, insurance, mutual fire insurance, surety, express, railroad and canal, telegraph and telephone, cooperative, fraternal, benefit, state fairs, and cemetery companies and corporations not for benefit, which are organized under special acts. In general corporations, stockholders are liable only for amount unpaid upon subscription. Charter fee, payable to the Secretary of State, is $2.00 for every $1,000. of capital stock up to $125,000; $0.50 per $1,000, on each additional $1,000, up to $1,000,000; $0.25 per $1,000 on each additional $1,000 up to $2,000,000; and $0.10 for each $1,000 in excess of $2,000,000. Corporations may have stock of no par value, and upon such stock the fee is $0.20 a share up to 1,250 shares; $0.05 a share in excess of 1,250 to 10,000 shares; $0.0025 a share in excess of 10,000 to 20,000 shares; and $0,001 a share in excess of 20,000 shares. Minimum fee $10.00. All corporations required to file annual report and pay annual tax on capital stock as follows: Capital stock author ized not exceeding $10,000, $10.00; exceeding $10,000 to $25,000, $25.00; exceeding $25,000 to $50,000, $50.00; exceeding $50,000 to $100,000. $75.00: exceeding $100,000 to $200,000. $100.00; exceeding https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1769 $200,000 to $500,000, $200.00; exceeding $500,000 to $1,000,000, $500.00; exceeding $1,000,000 to $2,000,000, $750.00; exceeding $2,000,000, $1,000.00. Corporations may pay annual tax of $1,000.00 and avoid filing report. Designation of resident agent for service of process required of domestic and foreign corporations doing business in the state. Costs. Non-resident plaintiff required to give $100 bond to secure costs. The defendant may have suit dismissed if bond is not given. Courts. Circuit courts have original jurisdiction in all equity cases and all cases at law not cognizable by inferior courts. County Courts, in such counties as have County Courts, have jurisdiction of amounts not exceeding $500.00. County Judge’s Courts have jurisdiction of probate matters and, in counties where there are no Civil Courts of Record, have civil jurisdiction up to $100.00. Justices of the Peace have civil jurisdiction up to $100.00. In counties having a population of more than 100,000 Civil Courts of Record are organized, with jurisdiction from $100.00 to $5,000.00. Creditors’ Bills may be brought before claim is reduced to judg ment, but suit at law must be first brought and judgment must be obtained before decree can be rendered. Days of Grace are abolished. Depositions may be taken upon commission when witness resides out of the county, or is bound for sea, or is about to go out of the State to remain until after the trial of the cause, or is very aged or Infirm; or when oath is made that a material part of the case or defense depends upon the testimony of such witness. The time for the suing out of the commission, the names of the witnesses, and the name of one commissioner must be given to opposite side a reasonable time before commission is issued. Printed instructions for the guidance of commissioners usually accompany commission. Fees or not less than $5 a witness are to be taxed as costs by the clerk and paid by losing party. Descent and Distribution of Property. Section 24: ORDER OF SUCCESSION—The real and personal property of an intestate shall descend and be distributed as follows: 1. To the surviving spouse and lineal descendants, the surviving spouse taking the same as if he or she were one of the children. 2. If there be no lineal descend ants to the surviving spouse. 3. If there be no surviving spouse to the lineal descedants. 4. And, if there be none of the foregoing, to the father and mother equally, or to the survivor of them. 5. And, if there be none of the foregoing, to the brothers and sisters and the descendants of deceased brothers and sisters. 6. And. if there be none of the foregoing, the estate shall be divided into moieties, one of which shall go to the paternal and the other to the maternal kindred in the following course: (a) To the grandfather and grandmother equally or to the survivor of them, (b) If there be no grandfather or grandmother, to the uncles and aunts and the descendants of such of them as may be deceased, (c) If there be no grandparent, uncle or aunt, or their descendants, to the great grandfathers and the great grandmothers equally, or to the survivor of them, (d) If there be ho great grandfather or greatgrandmother, then to the brothers and sisters of the grandfather and grandmother on the same side and to the descendants of such of them as may be deceased, (e) And so in other cases without end passing to the next lineal ancestors or ancestor, and for want of them, to the descendants of such ancestors. 7. And where the estate is hereinbefore directed to go by moieties to the pa ternal and the maternal kindred, if there should be no such kindred on the one part, the whole shall go to the other part; and if there be no kindred either on the one part or the other the whole estate shall go to the kindred of the deceased spouse of the intestate in like course as if such deceased spouse had survived the intestat and then died entitled to the estate. HALF-BLOOD. Half-bloods inherit only one-half. ILLEGITIMATES, inherit and transmit through mother's side as if legitimate, and also through father’s side when recognized by father. Adopted children inherit the same as children of blood and also Inherit from own parents, but such blood parents shall not inherit from such adopted children. Aliens have same right as citizens. There are no entailed estates nor right of survivorship. Dower. Deceased may not by will cut off his wife’s right to dower, but she shall be entitled to take dower consisting of one-third of all his real and personal property by electing to do so within prescribed period of time, without regard to number of children. The homestead shall not be included in the property subject to dower, but shall descend as provided by law. In addition to dower the widow of an intestate shall be entitled to retain necessary clothing, household goods, utensils and provisions necessary for family use, upon petition to the County Judge. Evidence. Witnesses not disqualified by reason of interest. In civil cases, husband and wife may testify for or against each other. In suits by or against lunatics or personal representatives, heirs-atlaw, next of kin, assignee, legatee, devisee, or survivor of a person deceased, no evidence of a transaction or communication between such lunatic or deceased person and the opposing party or those under whom he claims, can be given by the opposing party, unless such evi dence is first offered in behalf of such lunatic representatives legatees, devises, etc. No person is excused from testifying or producing documents in trials for bribery, burglary, larceny, gambling, or illegal sale of liquors, on ground that it may tend to convict him of crime but no such person shall thereafter be prosecuted or subjected to any penalty on account of anything concerning which he may so testify or produce evidence. Exemptions to every head of a family residing in the State home stead of 160 acres of land, and improvements, if in the country; onehalf acre of ground, if in an incorporated city or town, together with $1,000 worth of personal property. The exemptions in a city or town shall not extend to more improvements or buildings than the residence and business house of the owner. No property is exempt from sale for taxes or assessments, or for obligations contracted for its purchase, or the erection or repair of improvements thereon, or for house, field, or other labor performed thereon. Wages and salary of head of a family residing in the State is exempt from garnishment. Foreign Corporations. Commercial corporations can do business In this State without restriction upon complying with requirements as to foreign corporation, provided its name is not the same or so nearly similar to any domestic corporation as to cause confusion. (See Service of Process.) Subject to same charter fees and annual taxes except that it is based only on capital actually used in Florida. Foreign Judgments. Judgments obtained in the several courts of the State, may be recorded in any county and have same force and effect as if originally obtained therein. Judgments obtained in other States or countries, merely evidence, and have to be sued upon to be made effective as judgments. Fraud. (See Limitations of Actions.) Obtaining money or prop erty under false pretense or by falsely personating another, are punish able criminally. Guaranty Companies. Guaranty Companies are permitted to become surety upon bonds for all purposes after complying with certain statutory requirements. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); January 19 (Robert E. Lee’s birthday); February 22 (Washington’s birthday); and in cities or towns where carnival asso ciations are organized for the purpose of celebrating the same, the day in each year known as Shrove Tuesday ; Good Friday ; April 26 (Con federate Memorial Day); June 3 (Jefferson Davis birthday); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); Farmers Day ( ); general election day: November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day). 1770 BANKING AND COMMERCIAL LAWS—GEORGIA Husband and Wife. The husband has full control of wife’s prop* erty and is not chargeable by the wife with the rents and profits, but he cannot charge for his services. Must be joined with wife in sales of her property. Homestead can only be alienated by their joint deed. Estates by entireties as at common law. Husband not liable for wife’s antenuptial debts. Has no interest in her separate earnings. Has action for negligence causing her death; wife’s property not generally liable for husband’s debts. Wife may sue with respect to separate estate without husband joining. Infant wife may join husband in sale of real estate. Insolvency. Statutes suspended by national bankruptcy law. Insurance Companies. Foreign and domestic, are placed, by statute, under control of State treasurer. They must annually file a statement with, and obtain from the State treasurer, a certificate before being authorized to do business. Certificate may be revoked if company refuses to pay judgments which have been legally obtained against it. Interest. Eight per cent is allowed on judgments and contracts where interest is payable but no rate is specified. Contract for more than 10 per cent is usurious, and all interest forfeited. Judgments of a court of record are a lien for twenty years upon real estate of debtor within the county where rendered, and may be extended to other counties by recording certified transcript of judg ment in any county where a lien is sought. Judgments of justice of the peace may be made a lien upon real estate by recording in the office of clerk of circuit court. Liens. In order to secure a lien by lis pendens, a statement must be filed with the clerk of the circuit court, and recorded by him in a book kept for that mirpose. setting forth the names of the parties and the nature Oi the relief sought, and the description of the property upon which it is desired to obtain a lien. Statutory liens are given to laborers and material-men. Property for which materials are fur nished upon which labor has been done, is liable to persons not in privity with owner to the extent of the unpaid balance of debt due to contractor. Owner personally liable in like amount. Statutory liens upon real estate, in order to be available as against subsequent purchasers or lienors without notice, must be recorded, and suit must be brought within twelve months after the furnishing of the material, or the performance of the labor. Liens upon personal property exist only while possession is retained by lienor. Limitations of Actions. Civil actions can only be commenced within the following periods after the cause of action shall have accrued, to wit: Actions on Florida judgments, actions on con tracts or obligations in writing and under seal twenty (20) years; actions for the recovery of real property, actions on judgments of courts of the United States or any other state or territory seven (7) years. On contracts in writing not under seal, five (5) years. On all actions not herein and specifically mentioned, four (4) years. Trespass to realty, action upon liability created by statute other than a penalty of forfeiture, taking, detaining or injury to chattels, for relief on the ground of fraud, upon contract not founded upon Instrument of writing, including an action open account for goods, wares and merchandise, three (3) years. Actions for libel, slander, assault, battery, false imprisonment, or an action by another than the State upon a statute for a penalty or forfeiture two (2) years. Actions for wrongful death of a child, actions against railroad companies for killing cattle, and any action by the State for a statutory penalty or forfeiture, one (1) year. Married Women retain their property, real or personal, owned at marriage or acquired thereafter by gift, devise, descent, or purchase, and it is not liable for husband’s debts except by her written consent, executed according to law regulating conveyances of married women. Husband must join in all sales, transfers, and conveyances of the wife’s property except when he has been adjudged insane for more than a year. Wife may sue concerning her real estate without joining her husband with her in the suit. Widow entitled to take dower consisting of onethird of all deceased's real and personal property by electing to do so within prescribed period of time, without regard to number of children. If there are no children she will inherit all the property, real and per sonal. Wife by petition to proper court may be decreed a free-dealer and as such sue and be sued. (See also dower). Minors. Both sexes attain their legal majority at the age of 21 years. Minors who deposit in savings banks may control, transfer or withdraw the money so deposited. All other contracts made by them are voidable, except for necessaries. Marriage removes dis ability of non-age of male minor. Minors over 18 may have dis abilities removed by petition in chancery. Mortgages of real estate must be executed and proved or acknowl edged in the same manner as deeds, and they, likewise assignments thereof, to be effectual against creditors or bona fide purchasers, must be recorded. Are foreclosed by bill in equity in the circuit court. Chattel mortgages must be recorded unless property is delivered to mortgagee and remains in his possession; becomes subject to debts of mortgagee if left in his possession more than two years without the mortgage being recorded. Notaries. Both men and women over twenty-one years may be appointed notaries public. They must renew commissions every four years. May administer oaths, take acknowledgments and perform marriage ceremony. $500 bond is required to be given. Certificate must show date of expiration of commission. Negotiable Instruments. The Uniform Negotiable Instrument Act adopted. (See complete text following “Digest of Banking and Commercial Laws.”) Partnership, Limited, and Special. None. No uniform acts adopted. Common law rules apply. Powers of Attorney. Any contract or conveyance may be made by power of attorney. A conveyance of a married woman’s real estate by power of attorney in order to be valid the power of attorney must be acknowledged by her separate and apart from her husband, and the acknowledgment must state that she executes it freely and voluntarily, without compulsion, fear, apprehension, or constraint of or from her husband. The husband must join either in the deed or powers of attorney. Powers of attorney for the conveyance of real estate must be recorded. Probate Law. (See Administration of Estates.) The county judge has original jurisdiction of all matters relating to the administra tion of estates of decedents. Protest. (See Notes and Bills of Exchange.) Records. Records of deeds and mortgages are kept in the office of the clerks of the several circuit courts, and the original must be recorded in the county within which the property lies. Wills are required to be recorded with the several county judges and may be probated in any county in which the deceased left property, if he dies out of the State. If death takes place within the State, then in the county in which he has had residence, house, or other place of abode at the time of his death, and if he had none such, then in the county wherein he died. Redemption. None, excepting tax sales. Seal. A scrawl or scroll, printed or written, affixed as a seal to any written instrument, is effectual. Service of Process. Out of circuit court, made by the sheriff or his deputy. Out of county judge’s or justice of peace courts, may be made by sheriff or constable. Service in civil actions may be made either upon the person of the defendant, or by leaving a copy at his residence with some person over fifteen years of age. Process against a domestic or foreign corporation may be served upon any officer or business agent of said corporation residing in Florida. Domestic and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Foreign corporations are required to file with Secretary of State a certificate designating an office for service of process, which office must contain a sign with name of corporation and agent and must be kept open and agent must be present from ten A. M. to twelve noon each day except Sundays and Holidays. In lieu of such agent corporation may designate Clerk of Circuit Court. Failure to comply with act authorizes service by publication once each week for four weeks and carries penalty of one dollar per day up to Two Hundred Fifty Dollars. Service against dissolved corporations can be had by publication. Suits. Actions at law are commenced by filing a precipe with the clerk. Personal service is required except in suits by attachment and garnishment. Writs are returnable on the next rule day, provided ten days intervene; if not, then on the rule day in the next succeeding month. If no appearance of defendant, default is entered forthwith. Default may be entered for want of plea or other pleading on rule day. next after appearance day. Taxes. Taxes are not due and payable until the first day of Novem ber, and if not paid by first day of the following April property may be sold. Owner has two years within which to redeem. Taxes are a lien from the first day of the year of the assessment, and have the force and effect of a judgment upon which execution may issue. Testimony. (See Depositions.) Transfer of Stock. Stock is transferable In the manner prescribed In the by-laws. No stock can be transferred until, after all previous assessments thereon have been fully paid. The transferee succeeds to all the rights and liabilities of the prior holder. Warehouse Receipts. Uniform Warehouse Receipts Act adopted, and effective after July 31st, 1917. Wills. Who May Make a Will. Every person, male or female married or single, who is at least eighteen years of age and who is of sound mind may make a will. No other person may make a will. Property Which May Be Devised. Any property, real or personal, held by any title, legal or equitable, with or without actual seizin, may be devised or bequeathed by will; provided, however, that whenever a person who is head of a family, residing in this State and having a homestead therein, shall die and leave either a widow or lineal descend ants or both surviving him, the homestead shall not be the subject of devise, but shall descend as otherwise provided in this Act for the descent of homesteads. Requisites of Nuncupative Wills. No nuncupative will shall be good which is not proved by the oaths of three witnesses present at the making thereof, nor unless it be proved by the said witnesses that the testator at the time of pronouncing the same did desire the persons present, or some of them to bear witness that such was his will, or to that effect, nor unless such nuncupative will was made in the time of the last sickness of the deceased. Personal property only shall be subject to disposition by nuncupative wills. Execution of Wills. Every will, other than a nuncupative will, must be in writing and must be executed as follows; It must be signed at the end thereof by the testator himself, or some person in his presence and by his direction must subscribe the name of the testator thereto. The testator, in the presence of at least two attesting witnesses present at tha same time, must sign his will or cause his name to be signed as aforesaid or acknowledged his signature thereto. No will executed by a non-resident of Florida, is valid as a will in this state unless it is executed in accordance with the laws of this state in force at the time of its execution, except that a will valid under the laws of the state or country in which the testator is domiciled at the time of his death is valid in this state, so far as the same relates to personal property. A codicil shall be executed with the same formalities as a will. Revocation may be by fraud, subsequent inconsistent will, codicil, or by testator’s act. Neither subsequent marriage nor subsequent marriage and birth of issue shall revoke a will. SYNOPSIS OF THE LAWS OF GEORGIA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Colquitt, MacDougald, Troutman and Arkwright, Attorneys at Law, 1607 William-Oliver Bldg.. Atlanta Acknowledgments. (See Deeds.) Actions. Ail distinction between suits at law and in equity Is abolished. Equitable relief can be had in superior courts of law. Administration of Estates. Letters of administration issue in the line of preference, first to the husband or wife, second to the next of kin, relations by consanguinity are preferred to those by affinity. If there are several of the next of kin in the same degree, preference is given to that one selected in writing by those most interested in the estate. If no preference is expressed the ordinary exercises his discretion. If no application is made by next of kin a creditor may be appointed, and if no application is made the ordinary will vest the administration in a county administrator, an officer authorized by statute for that purpose. Administrators must give bond in double the value of the estate. Out of the estate of each deceased person, the first charge, after funeral expenses, is a year’s support for the family, to be laid off by commissioners according to the condition and standing of the family. Foreign administrators may act in this State on giving bond to the ordinary where they qualify. The bonds men must be residents of this State. A citizen of any other State may act as executor of the will of a deceased citizen of this State when he has the same interest and will give the same bond as in the case of foreign administrators. Administrators of other States may sue in this State by filing in the office of the clerk of the court, to which suit Is brought, a properly authenticated copy of their letters of adminis tration. Affidavits. Pleas and defenses in the courts of this State which are required to be under oath, may be made before any official of the State or county where the oath is made, who is authorized by the laws of such State or county to administer oaths. Prima Facie the official attestation of the officer is evidence that he was author ized to act. Any non-resident seeking equitable relief, when called on to verify proceedings, should be sworn before a commissioner of this State, or a judge of a court of record where the oath is made, with the attestation of the clerk of such court that the signature of the judge is genuine, and that the court over which he presides is a court of record. Allens. The subjects of governments at peace with the United States and this State are entitled to the rights of citizens of other States, resident here, in so far as they accord to them the privilege of purchasing, holding, and conveying real estate. Appeals. (See Courts.) Arbitration. Under the law of Georgia disputes and controversies relating to rights, or property, may be submitted to arbitration. Assignments. Assignments for the benefit of creditors are per mitted. Attachments. A summary process of attachment will lie In the following cases; 1. Where the debtor resides out of the State. 2. Where he is actually removing, or about to remove, without the limits of the county. 3. When he absconds. 4. When he resists a legal arrest. 5. Where he is attempting to remove his property BANKING AND COMMERCIAL LAWS—GEORGIA beyond the limits of this State. 6. Where he has disposed of, or threatens to conceal, his property, liable for the payment of his debts, or shall make a fradulent lien thereon to avoid paying his debts. Attachment will lie to recover the purchase money of an article sold when the debtor is still in the possession of the property. Attach ments may issue upon affidavit by the plaintiff, his agent or attorney, who must swear that one of the state of facts exists which authorize an attachment, and also as to the amount of the claim. Bond and security, in double the amount sworn to, must accompany the affidavit and the officers require personal security. Non-resident corporations are liable to attachments, and one non-resident may attach the property of another non-resident in this State, except for wages earned without the State. Banks and Trust Companies. Kinds of Banks permitted: Banks and Trust Companies. Capital Stock and Surplus Required: Minimum capital stock in cities of 6,000 population or less, $25,000.00; over 6,000 population, $50,000; all trust companies, $50,000. No increase in capital stock which would reduce surplus below 20% of capital stock. Reserves: Cash in hand, including amount due by banks and bankers, shall not be reduced below 15% of demand deposits. Incorporators: Minimum number is five. Officers and Directors: Board of directors to consist of not less than three or more than twenty-five of stockholders of two or more shares. Directors to examine affairs semi-annually. Supervising Authority: Superintendent of banks. Examinations and Reports: Semi-annual examinations by Super intendent of Banks. Reports four each year and oftener if required by Superintendent of Banks, on forms prescribed by latter, verified by president or cashier and certified by at least two directors. Loan Limitations: Individuals—maximum is 20% of capital and unimpaired surplus, and if more than 10%, must be amply secured and approved by directors. All loans to officers, directors and employees must be amply secured and approved by directors. Stockholders Liability: Unpaid stock subscription and amount equal to face value of shares. Branch Banking. Branch banks established prior to 1920 are permitted, but not permitted after that date. Bills of Lading. A bona fide assignee of a bill of lading of goods will be protected in his title against the seller’s right of stoppage in transit. Collaterals. The holder of a note as collateral security for a debt stands upon the same footing as the purchaser. Property left in pledge or pawn may be sold at public sale to the highest bidder, upon thirty days' notice. Corporations. Power to create corporations in this State is vested In the general assembly and the superior courts. Said courts may grant charters to all corporations except banking, insurance, canal, navigation, express, and telegraph companies and railroads. The Secretary of State may grant charters for the corporations above enumerated in manner prescribed by law in the particular case. A charter for a private corporation is obtained by a petition to the superior court, setting forth the object, particular business, corporation name, capital, place of business, time for which incorporation is desired, not exceeding twenty years. The petition and order granting the same constitute the charter. In such corporations the liabilities of the stockholder is measured by the amount of unpaid stock subscription due by him. In the charter of many banks heretofore organized under special act of the General Assembly the rule of personal liability varies. In some banks stockholders are liable as partners: In others liability exists under the general rule, viz., to the extent of twice the amount of stock held, and in some banks liability exists only to the extent of stock and unpaid subscriptions thereon. The payment of 10 per cent of the capital stock is necessary before commencing business. General powers of corporations are conferred on all corporations organized in this state. All corporations organized under the laws of the State or doing business therein are required to register with the Secretary of State and pay a graded license fee. with a minimum of $10, maximum $1000. Voluntary dissolution of a corporation may be granted by the Superior Court upon petition filed by the Corpor ation if authorized by two-thirds of capital stock. Lost stock certificates must be established by petition to Superior Court. Costs. A deposit of $10 is required In courts of record from non-resident plaintiffs before the filing of suits and a deposit of $6 in all divorce cases. Courts. The term, jurisdiction, etc., of the several courts of the State are as follows: JUSTICE COURTS hold monthly sessions and have civil jurisdiction up to $100. In criminal matters they are only committing courts. COURTS OF ORDINARY hold their sessions monthly and have jurisdiction over wills, administration of estates, and of the conduct of administrators, executors and guardians. COUNTY COURTS have monthly and quarterly sessions. Their jurisdiction is limited to controversies not exceeding $300. CITY COURTS hold four sessions per annum, but the city court of Atlanta has six terms. The jurisdiction of city courts Is unlimited except in matters of divorce, titles to land and administration of equitable relief. The municipal court of Atlanta, recently established, replaces the Justices Courts. Its jurisdictional limit is $2500. It holds one term eacn month. SUPERIOR COURTS have jurisdiction of ail suits and controversies and have exclusive jurisdiction in equity powers, divorce cases, and suits involving titles to land, and on the criminal side exclusive jurisdiction of all cases involving life or imprisonment in the penitentiary. Deeds. Deeds to real estate In Georgia must be In writing, and should be executed in the presence of two witnesses, one of whom shall be an officer authorized for that purpose. They should be recorded in the office of the clerk of the superior court of the county where the land lies, and all deeds, mortgages and other liens, should be recorded immediately to be available against third parties and innocent pur chasers. To authorize the record of a deed to realty, it must be at tested by or acknowledged before, if executed out of this State, a commissioner of deeds for the State of Georgia, notary public, clerk of a court of record, or a consul, or vice-consul of the United States (the certificates of these officers under their seals being evidence of the fact). When the deed is executed out of this State before a notary public, the attestation should be under his hand and official seal. In case of acknowledgment it is better, as a matter of precaution, always to have two witnesses, besides the officer who takes the acknowl edgment. If executed in this State, it must be attested by a judge of a court of record of this State, or a justice of the peace, or notary public, or clerk of the superior court, in the county in which the three last mentioned officers respectively hold their appointment, or if subse quent to its execution the deed is acknowledged in the presence of either of the named officers, that fact, certified on the deed by such officer, shall entitle it to be recorded. (Act of 1893.) Deeds to secure loans are in more common use than mortgages because they have been held to pass the absolute title and protect against year’s support and dower, the equity of redemption remaining in the maker, can not be levied upon until the debt secured by the deed has been paid off. Under the law of Georgia these deeds can not be foreclosed as mortgages, the notes they are given to secure must be sued to judg ment, the land must be re-conveyed to the grantor, and then levied on, but the lien of the judgment relates back to the date of the con veyance. In the Federal courts, however, foreclosure can be made in equity as in the case of ordinary mortgages. Usury will, however, void such a conveyance, only as to the Interest paid on such debt. Depositions. Testimony is taken In this State by written inter rogatories where the witness is a female, or where the witness does not reside in the county where the suit is pending, or by reason of disa bility is unable to attend court. In all counties within this State, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1771 depositions may be taken upon five days* notice to the other party of the time and place at which the witness is to be examined. This latter rocess cannot be used for taking testimony outside of the State. •epositions may be taken within or without the state, without com mission, before a notary public or any officer authorized to issue attachments. If within the state or if taken without the state, before any officer of the state or county where taken, authorized by laws of Georgia to attest deeds or take acknowledgments, upon 10 days’ notice to opposite party. In taking answers to interrogatories, which must be authorized by a commission issued for such purpose by the court here, two commissioners must act. Commissioners must be disinterested and not related to either party, or connected with the case; attorneys of the parties are incompetent. None of the parties to the case, nor their agents or attorneys, can be present when the commission is exocuted. The witness can only write his answer In the presence of the commissioners. It is usual, and the better practice, for one of the commissioners to write the answers of the witness as they are given. Depositions may be written with the typewriter, and commissioners may adjourn their sittings from day to day. The following instructions for taking testimony are important: Instruc tions for taking answers to interrogatories: x. Insert the commis sioners’ names in the commission; any two respectable citizens will do. 2. State the case as you find it. Then comes the caption, thus: State of.............................. (Here insert the county and State County of.............................. ss. where the commission is executed.) By virtue of a commission from the.................... court of...................... county, we have caused the person in said commission named to come before us, who being duly sworn true answers to make to certain interrogatories thereto annexed, deposeth and answereth as follows: (Here insert answers of the witnesses to each interrogatory in order 3. Let the witness sign the answers; then say: "Answered, sworn to, and subscribed before us, this... .day of.................... 19.... ’’ Then sign your own names, adding the words “Commissioner (L. S.) ’’ after each name. 4. Seal all up together, using two wafers, each com missioner writing his name with “Commissioner” across a wafer or seal. 5. State the case on the package, and address it to the clerk of the court issuing the commission. 6. If it is to go by mail, get the postmaster to receipt on the package. “Received from one of the commissioners (giving his name) the within interrogatories, to be forwarded by due course of mail,” naming his post-office. Testimony thus taken must be sent by mail, or by some person specially author ized by the commissioner to carry it to the court. Descent and Distribution of Property. The husband is the sole heir to his intestate wife, unless she leave children, and in that event the husband and children shall inherit per capita, but the descendants of children shall take per stirpe. If a man die without children, or the descendants of children, leaving a wife, the wife is his sole heir. If there are children, or those representing deceased children, the wife shall take a child’s part, unless the shares exceed five in number, in which case the wife shall have one-fifth part of the estate. If the wife elects to take her dower, she has no further interest in the estate. Children stand in the first degree to the intestate, and inherit equally. Posthumous children stand upon the same footing with other children. Lineal descendants of children stand in the place of their deceased parents, and take per stirpe, and not per capita. Brothers and sisters stand in the second degree and inherit if there be no widow or children, or representatives of children. The half-blood on the paternal side inherit equally with the whole blood. The father, if living, inherits equally with brothers and sisters, and stands in the same degree. If there be no father, and the mother is alive, she shall inherit In the same manner as the father would. Real estate descends direct to the heirs, and personal estate to the administrator. But real estate is subject to administration for the purpose of paying debts, and if necessary, for distribution. Dower. In this State the wife is entitled to an estate for life In onethird of all lands of which the husband dies seized or possessed at the time of his death, or to which the husband obtained title In right of his wife. There is no necessity for renunciation of dower in this State, and a married woman, on that question, need not join with her hus band in conveying land, except in cases where, before 1866, he obtained real estate belonging to his wife, by virtue of the marital relation. Executions. Must follow the judgment or decree from which they Issue. They are good for seven years and may be renewed for a like period by entry nulla bona. Exemptions and Homesteads. Under the constitution and laws of Georgia, each head of a family or guardian, or trustee of a family of minor children, or of an aged or infirm person, or a person having care and support of dependent females of any age, who is not the head of a family, shall have exemption of realty, or personalty, or both, to the aggregate of $1600. The debtor shall have power to waive or renounce, in writing, his right to the benefit of exemption above stated, except as to wearing apparel and not exceeding $300 worth of household and kitchen furniture, and provisions. The homestead or exemption may be sold by the debtor and his wife, if any, with the sanction of the judge of the superior court of the county where the debtor resides, or the land is situated. The proceeds to be re-invested upon the same uses. A general waiver in writing, of the homestead, or exemption, is good. Foreign Corporations. All corporations, except those chartered and organized under the laws of this State, are held to be foreign corporations. Such corporations are recognized by comity only; they are subject to attachment, but have all the rights of replevy and defense. They cannot exercise any corporate powers or privileges which by the constitution and laws of Georgia are denied to domestic corporations or the exercise of which would be contrary to the public policy of this State. There is otherwise no restriction upon foreign corporations except in the case of insurance companies and building and loan associations, which are required to make deposits. All cor porations are subject to license fees for doing business and all are liable for taxes on property owned or held in the State' (See Corporations.) Fraud. Contracts, awards, marriages, judgments, sales, and wills are void when they are brought about and procured by fraud. Prom issory notes when procured by fraud are void in the hands of the holder, who so procures them. The statute of frauds, as of force in Georgia, requires the following obligations to be in writing, signed by the party, or his authorized agent, to be binding: 1. A promise by an executor, administrator, guardian, or trustee, to answer in damages out of his own estate. 2. A promise to answer for the debt, default, or mis carriage of another. 3. An agreement made upon consideration of marriage, except marriage articles as otherwise provided. 4. Any contract for the sale of lands, or any interest in or concerning them. 6. Any agreement that is not to be performed in a year. 6. A promise to revive a debt barred by statute of limitations or bankruptcy. 7. Any contract for the sale of goods, wares, and merchandise, in existence or not in esse, to the amount of $50 or more, except the buyer shall accept part of the goods sold and actually receive the same or give something in earnest to bind the bargain or in part payment. 8. An acceptance of a bill of exchange. Garnishments. This process may be invoked in any case, but wa ges or salaries are not subject until after judgment has been rendered. Garnishment may be dissolved by giving bond and a third party may claim a fund held up under garnishment and may release the fund by giving bond. Any person may claim exemption from garnishment as to wages to the extent of $1.25 per day and one-half of the remainder. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); January 19 (Robert E. Lee’s birthday); February 22 (Washington’s birthday); April 26 (Confederate Memorial Day); June 3 (Jefferson Davis' birthday); July 4 (Independence Day); first. Monday in September (Labor Day); October 12 (Columbus Day): November 11 (Armistice Day); Thanksgiving Day; and December 25 (Christmas Day). P 1772 BANKING AND COMMERCIAL LAWS—IDAHO Interest. The legal rate of interest in Georgia is 7 per cent, but 8 per cent is legal when contracted for in writing. But 1 y2% Per month may be charged under Small Loan Act up to $300. Parties charging usury forfeit the excess if usury is set up. Usury has no present penalty in Georgia, except forfeiture of all interest paid upon the debt. Judgments create liens from their rendition upon the real or per sonal property of the defendant; all judgments at the same term rank equally, and property sold by a debtor after judgment is obtained against him is only discharged from the lien of such judgment, if real estate, after four years’ possession by the vendee, and in cases of per sonal property, after two years’. Judgments, whether in the United States court, or in any State court, obtained in any other county than that in which the defendant resides have no lien on the property of the defendant in any other county, unless the execution thereon is recorded in the county of the defendant’s residence. Unless such execution is recorded as so required within thirty days, its lien will only date from the time of record. (See Actions.) Jurisdiction. (See Title Courts.) License. No license is required of commercial travelers. Itinerant traders must pay license fees. Liens. Under the laws of Georgia mechanics, material-men, ma chinists, employes of steamboats, millwrights, builders of gold mine machines, stone-cutters, and marble works laborers have special liens on property improved or worked on. Landlords have a general lien which takes effect from the levy of distress and a special lien on crops for rent of laud on which they are raised. Common law liens of inn keepers, factors, pawnees, carriers, attorneys and others are recog nized. Vendor's lien on land has been abolished. Attorneys have a special lien on papers in their hands and on property recovered in suits brought by them or successfully defended by them. Limitations. Suits on open accounts are barred after four years, on promissory notes and bills after six years, on instruments under seal after twenty years, on suits for personal injury after two years. Seven years’ adverse possession of real estate under color of title, and twenty years’ adverse possession without color of title, will bar the claims of all persons not laboring under disability. Infants have seven years to assert their rights, after becoming twenty-one years of age. This State does not require that notes or contracts under seal be witnessed, so that a note or contract under seal whether witnessed or not carries the twenty-year statute of limitation provision. Married Women. The wife may contract and sue and be sued In her own name in respect to her separate estate as a femme sole, except that she can not bind her separate estate by suretyship for any one, and any promise to pay her husband’s debt is void. She cannot sell to her husband or trustee for any purpose, except py order of the superior court. A wife or her heirs may sue and recover from any person money or property used by her husband to pay his debt where the creditor takes with notice. All the property of the wife at the time of marriage, and all she may acquire by gift, inheritance, or pur chase, shall vest in and belong to her, and shall not be liable for the debt, default, or contract of her husband. The wife with her children, if any, is entitled to twelve months’ support out of the estate of her deceased husband. The husband is bound to support and maintain the wife, and his consent is presumed to her agency in the purchase of necessaries. The wife’s separate property is not liable for debts con tracted by her as agent of her husband in the ordinary support of her self and children, but by special contract in her own capacity, and not as agent for her husband, she could bind her separate estate, for that purpose. A married woman can dispose of her property by will. Mortgages. Mortgages are only security for debts. They may embrace property in the mortgagor’s possession, or to which he has a right of possession. They may cover a stock in bulk, but changing In specifics, and after acquiring property. No particular form is necessary, but it must be cleared that the instrument indicates a lien, describes the property and specifies the debt it secures. Mortgages on land are not good against dower, and a wife cannot waive her dower as against this lien. Mortgages must be executed and attested In the same manner as deeds, except that in mortgages on personal property, only the official witness is necessary. Mortgages with power of sale are valid in Georgia. Homestead and exemption may be waived in the mortgage. All mortgages on personal property must be recorded in the county where the mortgagor resides and the prop erty is located. Mortgages on land must be recorded in the county where the land is situated. Negotiable Instruments. Uniform Negotiable Instruments Act (see complete text following “Digest of Banking and Commercial Laws”). Adopted August 18, 1924, with certain changes, i.e., may be made payable in cotton or other articles of value, omits provision authorizing confession of judgment if not paid at maturity, where instrument payable at bank it shall not be equivalent to an order to the bank to pay same for account of principal debtor. A contract to pay attorney’s fees cannot be enforced unless the debtor when served ten days before suit is filed with a written notice of intention to sue with amount and term of court to which suit will be brought, shall fail to pay such debt before return day. A waiver of homestead in a promissory note is a bar to such a claim as against the collection of such note. Promissory notes and contracts containing reservation of title to personal property must be executed before a notary public, justice of the peace, or clerk of a court of record, and must be recorded as mortgages to hold such property as against third parties or innocent purchasers. Any draft, bill of exchange or check, drawn upon an institution or person with which the drawer has not sufficient funds on deposit to meet the same, subjects the drawer to criminal liability. Notaries. Commercial notaries, male or female, are appointed for four years by the superior courts, and for the state at large by the State Librarian. They must have seals and are authorized to attest deeds and mortgages, and make protest of commercial paper. Probate Law. (See Administration oi Estates, Deeds and Mort gages.) Protests. (See Bills of Lading and Promissory Notes.) Records. (See Deeds and Mortgages.) Redemption. There is no redemption in this State under judicial sales except in case of sale of property under tax execution where parties may redeem in twelve months if improved land and wild land within two years. Replevy. All property seized under attachment, distress, or other similar process, may be replevied. Property seized under process and claimed by the third party may be delivered over upon bond and security for its forthcoming to answer final judgment of decree. Revision. (See Courts.) Sales. Sales may be made to pay debts, but any sale of stocks of goods in bulk is deemed fraudulent unless the seller delivers to the buyer a list of all creditors and the amount due each. It shall then be the duty of the buyer to notify the creditors of his purchase. This notice must be mailed five days before completion of the purchase. Taxes. Taxes are a lien upon all the property of the debtor, real or personal, and its lien is preferred as stated in section herein relating to distribution of the estates. Sales of property for taxes are con ducted in the same manner as other judicial sales. One year in which to redeem is allowed. Wills. All persons of full age and sound and disposing memory. Including married women, may make wills, and dispose of their estates. Wills must be executed in the presence of three witnesses, all of whom shall be present, must be called by the testator as witnesses, and must sign, and shall certify that they signed, in the presence of the testator, and in the presence of each other. Wills must be in writing, except nuncupative wills. Wills of citizens of other States, where executed according to the laws of the State, and probated in solemn form In such State, which dispose of real or personal property in Georgia, may https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis be admitted to probate In this State, when an exemplified copy of the will is presented. Wills are probated in the court of ordinary In the county where the testator resides at the date of his death. All wills executed out of this State by citizens of this State to dispose of property in Georgia must be executed according to our law. A foreign will, executed according to the law of Georgia, will constitute a muniment of title to real property without being probated in this State, when recorded on the record of deeds in the county where the land lies, together with an exemplification of record admitting it to probate in another State, certified according to the Act of Congress. SYNOPSIS OF THE LAWS OF IDAHO RELATING TO BANKING AND COMMERCIAL USAGES Revised by Chab. H. Darling, Attorney at Law, Boise. Acknowledgments. All conveyances and other instruments required to be acknowledged in this State must be acknowledged, if within the State, before a judge or clerk of a court of record, or the Secretary of State, as county recorder, a notary public, or a justice of the peace. The authority of a justice or clerk of the Supreme Court, or Notary Public, or the Secretary of State, to take acknowl edgments extends to any place within the state, and of the remaining officers authorized to take acknowledgments to the city, county or district for which said officer was elected or appointed. If without the State, but within the United States, they must be acknowledged before any such officer, or a commissioner of deeds for this State, or before any officer authorized by the laws of this State or Territory to take such acknowledgment. If without the United States, they must be acknowledged before a minister or charge d'affaires of the United States, resident and accredited in the country where the acknowledg ment is taken, before a consul or vice-consul, a judge of a court of record, a duly appointed commissioner, or a notary public. The certificate of acknowledgment, if made before a justice of the peace, when used in any county other than that in which he resides, must be accompanied by a certificate, under the hand and seal of the recorder of the county in which the justice resides, setting forth that such Justice, at the time of taking such acknowledgment, was authorized to take the same, and that the recorder is acquainted with his hand writing. and believes that the signature is genuine. Proof of the execution of an instrument may be made though It has not been acknowledged. Form of married woman’s acknowledgment the ■ame as that of a single person. The forms of certificates of acknowl edgment by trustees, executors, administrators, guardians, sheriffs, receivers, and other officials, and of partnerships, and of the state, and of any county or subdivision, are prescribed by Idaho Code Annotated. Secs. 54-710 to 54-714, Inc. (See Conveyances.) Actions. There is but one form of civil action in this State. An action is commenced within the meaning of the statute when the complaint is filed with the clerk. Every action must be prosecuted In the name of the real party in interest. Affidavits are used only to verify pleadings, to prove service of summons, notice, or other paper, to obtain provisional remedy. Aliens. Anti-Alien bill prohibits aliens not eligible to citizenship and corporations, a majority of whose members are such aliens, from acquiring or holding real estate except to the extent and for the pur poses prescribed by existing treaties between their countries and the United States, but permits such aliens to lease lands for not more than five years for agricultural purposes. Also prohibits such aliens from acting as guardian or trustee for any real estate and provides that lands hereafter conveyed to such aliens shall escheat to the State. (I. C. A., Sec. 23-102. et. seq.) Arbitration. Persons capable of contracting may submit to arbitration any controversy which might be the subject of a civil action between them, except a question of title to real property in fee or for life. Assignment for Benefit of Creditors. No assignment for benefit of creditors shall be valid unless made to a bona-fide resident of this state or to a corporation duly authorized to do business in this state. (I. C. A. Sec. 66-201.) Attachments. Attachments may be had in actions on judgments or contracts express or implied where defendant Is a non-resident or the debt is unsecured. Plaintiff at the time of issuing the summons or any time afterwards may obtain the attachment upon filing affi davit and undertaking and notice of attachment must be published. Bank Collection Code. Given directly following laws. Banks and Banking. Title 25 of Idaho Code Annotated, as Amended, entitled “Bank Act,” governs the formation, regulation and administration of banks. It is unlawful to engage in banking or trust business except by means of a corporation duly organized for such purpose, escept that any individual, copartnership or unincorporated association actually transacting banking or trust business as defined in the Act, on the effective date thereof. May 5. 1925, may continue in such business at the places where they are then located, subject to the provisions of the Act. Bank Act does not apply to national banks. Supervising authority is the Department of Finance of State. Banks are divided into the following classes: Savings Banks, Commercial Banks, Trust Com panies. Corporations may be organized by any number of natural persons—not less than five in any case—under the General Corporation Laws of the State and as provided in the Bank Act. Officers and Directors are as provided by the General Corporation Laws of the State. Capital Stock required varies in proportion to the population of the community, from $25,000 to $100,000. Articles of Incorpora tion must be prepared under the General Corporation Laws and must be approved by the Department of Finance before filing. No bank shall transact any business, except such as is incidental to its organi zation, without the written approval of the Commissioner of Finance and his Certificate stating that it has complied with the provisions of the Bank Act and all requirements of law. The entire Capital, plus 10% for Surplus, in cash, or property approved by the Commissioner of Finance, must be paid in before commencing business. As a pre requisite to obtaining the permit from the Department of Finance, Bank must file (1) Certified Copy of Articles, (2) Proof that entire Capital, plus 10% Surplus, is paid in, (3) Names and addresses of its Officers and Directors, (4) Names and addresses of all Subscribers to its Capital Stock and amount subscribed by each, (5) Financial State ment of each and every Subscriber, showing the property he owns, not exempt from execution, which must be at least three times the amount of subscriber’s subscription, (6) Oath of each Director. (7) Affidavit of Directors that corporation has complied with all provisions precedent to doing business. Every bank not a member of the Federal Reserve System shall, at all times, have on hand as a Reserve an amount equal to at least 15% of its aggregate deposits, in cash, in its vaults or held on deposit, subject to check, with other banks, which shall have been approved by the Commissioner of Finance. 33 % of Reserve may consist of U. S. Bonds not hypothecated. Any bank becoming a member of Federal Reserve System shall comply with requirements of Federal Reserve Act. Commissioner of Finance is required to examine State Banks twice each year and whenever he shall deem it necessary. Fees for exami nation are required to be paid by the bank. Every bank is required to make not less than three reports to Department each calendar year BANKING AND COMMERCIAL LAWS—IDAHO at the times reports are called for from National Banks. Department of Finance prescribes forms for reports. Total liabilities of any one person to any bank shall not at any one time exceed 20% of the aggregate paid in Capital and Surplus. In debtedness of an Officer who is actively engaged in managing of bank, or an Employee, shall not exceed 5% of paid up Capital and Surplus. No loan to Officer or Employee shall be made without being approved by majority of Board of Directors, and every such loan shall be acted upon in absence of applicant. Combined indebtedness of Directors, Officers and Employees shall not exceed 40% of paid up Capital and Surplus. No Officer or Employee may borrow except on good col lateral or other ample security. Loans to Officials of Department of Finance are prohibited. Except for the purpose of facilitating the sale of property owned by it, no bank shall make a loan on real estate unless it be a first lien thereon. The aggregate amount of real estate loans shall not exceed 15% of the total demand deposits, plus 50% of the Time and Savings deposits. No loan on real estate shall be made for more than 40% of the actual market value of the real estate. No bank shall accept as collateral or make loan on, or purchase any of its own Capital Stock or Shares of any other bank, except Stock of Federal Reserve Hanks, unless such security or purchase shall be necessary to prevent loss upon debt previously contracted in good faith, and Stock so purchased or acquired shall, within six months from date of acquire ment, be sold or disposed of at public or private sale. Excess or double liability of stockholders is prohibited by Section 17 of Article 11 of the State Constitution. Branch banks may be operated with approval of Commissioner of Finance, provided that any corporation operating branch banks shall have paid in Capital Stock of not less than $100,000 and Surplus of not less than 10% of Capital Stock. No corporation shall establish branch banking offices unless its paid-in Capital Stock shall, in the aggregate, amount to at least $25,000 for each of its banking offices and, after March 19, 1935, no corporation shall establish new branch banks unless it has, paid in, an unimpaired Capital Stock in amount not less than Minimum Capital Stock required by Subsections (C) and (D) of Section 36 of Title 12 of United States Code as Amended by Section 23 of Act of Congress approved June 16, 1933, for National Banking Associations. Branch banking offices shall not be established in any city or town in which is located a state or national bank regularly transacting banking business, unless corporation establishing such branch shall take over existing bank or obtain consent of all banks there located. No unit bank shall be acquired for t he purpose of establishing a branch bank until said unit bank shall have been in operation as a unit for a period of five years. Bills of Lading. Uniform act recommended by the American Bar Association. Blue Sky Law. Idaho has a blue sky law governing corporations, unincorporated associations and partnerships, domestic or foreign, dealing in stocks, bonds, and other securities, excepting United States bonds. State or municipal securities in Idaho, and Idaho real estate mortgages. This law requires the filing of various statements, accounts and other papers, and makes it unlawful to do business in the State without compliance. Securities issued or guaranteed by the United States, or any territory or possession thereof, or by any state, or by any foreign government with which the United States is maintaining diplomatic relations, securities issued by cooperative associations organized under the laws of Idaho, securities issued or guaranteed by public service utilities, securities appearing in lists on New York Curb, New York, Boston, San Francisco and Chicago Stock Exchanges, or other recognized exchanges which have been approved by the Commissioner of Finance, securities issued by or representing interest in, or a direct obligation of, a bank, trust com pany, or savings institution, or issued by a federal land bank or joint land bank or national farm loan association, or by any company created and acting as an Intrumentality of the government of the United States, any security other than common stock outstanding in the hands of the public for a period of not less than five years, upon which there has been no default in the payment of principal, interest or dividends for a continuous immediately preceding period of five years, securities evidencing indebtedness under any contract made pursuant to the provisions of any statute of any State of the United States providing for the sale of personal property under conditional sales contracts, and conditional sales contracts and promissory notes in the ordinary course of business, are exempt from the operation of the Blue Sky Law. The provisions of the Blue Sky Law do not apply to persons or corporations engaged in actual mining operations, developing mining property within the State, except that mining corporations must make an annual report. The provisions of the Act do not apply to any judicial sale, or to a sale by a pledgeholder, a bona fide sale by an owner who is not the issuer or underwriter of a security who sells the same for his own account, nor to transfers or exchanges by one corporation to another corporation in the course of a merger, nor to the bona fide sale of membership certificates by established enterprises actually engaged in business in this State where no compensation, fees or commissions are paid. Administration of Blue Sky Law by Dept, of Finance. Appeal is allowed from ruling of Commissioner of Finance to District Court, Ada County. (I. C. A.. Sec. 25-1601 et seq.) Collaterals. No statutory regulation. Collections. Uniform Bank Collection Code as recommended by American Bankers Association, see page 2333. Community Property. All property acquired after marriage other than by gift, bequest, devise, or descent, is community property. The personal earnings of the wife and the income from her separate property are community property unless she is living apart from her husband. Contracts. A written instrument is presumptive evidence of a consideration. Conveyances. Real estate is conveyed by instrument in writing, subscribed by the party or his authorized agent in writing. The community property can be conveyed or incumbered only by husband and wife joining in the execution and acknowledgment of the instru ment. During the continuance of the marriage the wife has the management, control, and absolute power of disposition of her separate property, and may bargain, sell, and convey her real and personal property, and may enter into any contract with reference to the same. In the same manner and to the same extent and with like effect as a married man may in relation to his real and personal property. Separate property of wife not liable for debts of her husband, wife is not liable as surety unless the obligation is for her benefit or benefit of her separate property. An instrument purporting to grant real property to take effect upon condition precedent, does not pass the estate upon the performance of the condition. Such instrument is merely an executory contract. (See Acknowledgments.) Corporations. Private corporations may be formed by three or more natural- persona of full age, at least two-thirds of whom are citizens of the United States. Such corporations are formed by execut ng articles of incorporation signed in triplicate by each of the incorporators and acknowledged by at least three of them before an officer authorized to take acknowledgments, and in addition to stating the name of the corporation, shall state in the English language: I. Its purpose. 2. Its duration. 3. Location and post-office address of its registered office in this state. 4. Total authorized number of par value shares and their aggregate par value, and if any of its shares have no par value, the authorized number of such shares. 5. Description of the classes of shares, if shares are to be classified, and a statement of the number of shares in each class and the relative rights, voting power, preferences and restrictions granted to or imposed upon the shares of each class. 6. The name and post-office address of each of the incorporators and a statement of the number of shares subscribed by each, which shall not be less than one, and the class of shares for which each subscribes. Triplicate originals of the articles https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1773 of incorporation shall be delivered to the Secretary of State, and if he finds that they conform to law he shall put an endorsement of his approval on each set and when all taxes, fees and charges have been paid as required by law, he shall file one of such sets in his office and record the same and shall issue and record a certificate of incorpora tion. One of the sets of articles of incorporation shall then be filed for record in the office of the County Recorder of the County in which the registered office of the corporation is situated, and the other shall be retained by the corporation. The articles may provide for the election of one-third of its directors annually. Railroad, wagon road, telegraph and telephone corporations must state also in their articles: 1. The kind of road, telegraph or telephone line intended to be con structed. 2. The estimated length of the road or line. 3. They may provide in their articles the number of directors which shall constitute a quorum for the transaction of business, the decision of the majority of such quorum to be a valid act. 4. Whether meetings of the board •hall be held within or without the State. 5. Whether stockholders shall be individually liable for debts of corporation. Railroad corpo rations must have subscribed, before filing articles, $1,000 per mile: wagon road corporations, $300 per mile; telegraph corporations, $100 per mile, and the articles must be verified by affidavit of president, secretary, or treasurer named in articles, that such stock has been subscribed. All corporations, except insurance, non-production min ing companies, co-operative telephone and irrigation companies, must pay between July 1 and September 1 of each year, a license fee based on the amount of authorized capital stock, varying from $10 to $150; a failure to make payment by September 1 entails a penalty of $10, and a failure to make payment by November 30 entails a loss of charter for domestic corporations and a loss of the right to do business within the State for foreign corporations. Between July 1 and September 1, all corporations must make an annual report. Corporations may be reinstated by paying all license taxes that have accrued and a penalty of $10 for each year they have failed to file their annual statement or failed to pay their annual license fee (I. C. A., Title 29, Chap. 1), styled the “business Corporation Act,” follows very closely the Uniform Business Corporation Act drafted by the National Conference of Commissioners on Uniform Laws. Corporation, Foreign. Foreign corporations desiring to do busi ness in this State, may have all the rights and privileges of like domes tic corporations, by filing with the secretary of state, a certified copy of the articles of incorporation, and in the office of the county recorder of the county where the principal place of business of such corporation is to be conducted, a copy of their articles of incorporation duly certified by the secretary of state of this State, and the designation of some per son residing in the county in which such principal place of business is to be located upon whom process issued by authority of or under any law of this State may be served. The original designation of agent must be filed with the secretary of state and a copy certified by the secretary of state must be filed in the office of the County Recorder in which its principal place of business is located in this State. Courts. Terms and Jurisdiction. The judge of the district court of each of the judicial districts of the State must annually fix the time for holding the district court in the several counties of his dis trict; and he may hold such special terms as he deems proper and necessary. District courts have original jurisdiction in all civil cases. Probate courts are held in each county continuously, and have juris diction up to $500, in civil cases and concurrent jurisdiction with Justice’s courts in all criminal cases. Justices’ jurisdiction, $300. Curtesy does not exist. Days of Grace abolished by statute. Depositions may be taken before any judge, justice of the peace, notary public, or commissioner appointed by the Court, upon notice ■erved upon the opposite party, stating the court, action, time, and place, and before whom the same will be taken, or they may be taken upon commission issued by the judge with interrogatories attached. Depositions shall not be taken before any person or the kin of any person interested in the action. Descent and Distribution of Intestate Estates. If a person dies intestate, surviving spouse takes all the community property, both real and personal. On death Intestate separate property, both real and personal, descends as follows: If decedent leaves spouse and one child, each entitled to one-half of decedent’s separate property; if more than one child, surviving spouse gets one-third and remainder goes in equal shares to children of decedent and to the lawful issue of any deceased child by right of representation, but if no children of decedent living at his death, remainder goes to all of his lineal descendants, and if they are in same degree equally, otherwise according to right of representation; if decedent leaves no surviving spouse but leaves issue, the whole estate goes to such issue or their descendants if deceased; If decedent leaves no issue, one-half goes to surviving •pouse and other half to decedent's father and mother in equal shares, or if either be dead, the whole goes to the other; if no Issue nor hus band or wife, estate goes to father and mother; if neither issue, hus band. wife, father nor mother, in equal shares to brothers and sisters of decedent and to their children by right of representation; if spouse •urvives decedent and there are neither issue, father nor mother, whole estate goes to such spouse; if decedent leaves neither issue, husband, wife, father, mother, brother, nor sister, estate goes to next of kin in equal degree, computed according to rules of civil law: if decedent leaves no heirs, property escheats to State. When any estate is devised or bequeathed to any child or other relative of the testator and the devisee or legatee dies before the testator, leaving lineal descendants, such descendants take the estate so given by the will in the same manner as the devisee or legatee would have done had he survived the testator. Dower does not exist. (See Curtesy and Community property). Employers and Employes. All persons employing mechanics or laborers in working mines, erecting or repairing buildings, construct ing canals, railroads, etc., must make, record, and publish a state ment, under oath, setting forth the following: The name of the owner of the premises where work is being done or upon which it is Intended to begin work; the name of the person or company engaged in or who contemplates engaging in work upon such premises; the conditions under which such person or corporation is prosecuting the work as agent, owner, etc., the principal office of the owner and the agent in this State; the time and place where payment of laborers and mechanics will be made. A copy of the statement must be posted at the place where work is prosecuted. Employer’s Liability Law. (See Workmen’s Compensation.) Executions issue at any time within five years after judgment. The only stay is by appeal, with supersedeas bond. One year allowed for redemption from execution and foreclosure sale. Exemptions. Homestead, not exceeding $5,000, If declaration of homestead is duly acknowledged and recorded; office furniture and library, $200; necessary household and kitchen furniture not exceeding in value $300, and provisions for family for six months; certain farm animals, etc., with food for six months; and water right of 160 inches, when actually used in irrigation; also crops grow ing or grown on fifty acres of land, leased, owned or possessed by person cultivating the same; tools or implements of mechanic neces sary for his trade of the value of $500: motor vehicles not exceeding $200 in value belonging to a farmer, mechanic or artisan; all instru ments of surgeons, etc., also all professional libraries; miner’s dwelling of value $500, and his pipes, cars, etc., of the value of $200; pack animals and equipments, not exceeding $250; team, wagon, etc., of drayman; 75 per cent of the personal earnings of a debtor within thirty days preceding levy, where earnings are necessary for use of family, residing in this State: the shares held by members of a Build ing and Loan Association to the value of $1,000; provided, such person has no homestead: all benefits arising out of life insurance, represented 1774 BANKING AND COMMERCIAL LAWS—ILLINOIS by an annua] premium of $250; all property of fire companies. All the above property may be sold under foreclosure of mortgage, which Includes same or execution issued on judgment for purchase price. Garnishment. Any personal property or credits in the hands of another, belonging to the defendant, is subject to garnishment, aa are debts owing to him from another if due. Guaranty, Title and Trust Co. May furnish abstracts, act as surety, trustee, fiscal agent. Paid up capital of $25,000 required. Capital deemed security for the performance of their duties. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 22 (Washington’s birthday); May 30 (Memorial Day); June 15 (Pioneer Day); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); general election day; November 11 (Armistice Day); Thanksgiving Day; and December 25 (Christmas Day). Husband and Wife. All the property of the wife owned by her before marriage, and that acquired afterwards by gift, bequest, or descent, or that which she shall acauire with the proceeds of her separate property, shall remain her sole and separate property, to the same extent and with the same effect as the property of a hus band similarly acquired. The wife has the management, control, and absolute power of disposition of her separate property, to the same extent and with like effect, as a married man may have in relation to his real and personal property. The separate property of the wife is not liable for the debts of her husband, but is liable for her own debts contracted before or after marriage. There is no estate by courtesy or in dower. Marriage settlements are provided for, and when properly executed and recorded may vary the statute governing the relations of husband and wife concerning property rights. Minors may execute valid marriage settlements. Interest. Where there is no express contract in writing fixing a definite rate of interest, the rate is 6 per cent per annum. Parties may agree in writing for interest at a rate not to exceed 8 per cent per annum. Judgments bear interest at the ra te of 6 per cent per annum. Compound interest allowed if aggregate does not exceed 8 per cent on principal. Judgments are liens on all real estate of debtor within the county, from time of docketing, and may be extended to other counties by filing transcript in recorder's office. Lien continues five years. Justice’s court judgments become liens when certified and recorded. May be revived by issuing execution within limitation. Transcript of judgment of U. S. Court must be filed with Clerk of District Court in any county in the State in order to make it a lien on real property. Liens, Mechanics’. Every person performing labor upon or fur nishing materials used in the construction or repair of any mining claim, building, or other improvement, has a lion thereon. Farm laborers have lien upon the crop and products thereof, upon which they bestow labor. All liens must be set forth by a statement in writing, showing the amount due, the facts connected with the matter, that there are no credits due on the claim, or offsets against the same; which statement must be verified by the claimant, and recorded In the office of the county recorder, if on claim of original contractor, within ninety days, if on claim of other persons, within sixty days from the time of the completion of the structure the completion of the labor, or the furnishing of the materials. Lien must be enforced by suit within six months, unless credit is given, expires at all events In two yearn. Limitation for Suits. Judgments six years; written contracts or for real property, five years; contracts or obligations not founded on writing including open accounts, four years; trespass, trover replevin and fraud, three years; personal injuries, two years; other relief, four years. Revivor: by acknowledgment of debt in writing or part payment of principal or interest. Action against a director or a shareholder of a corporation for illegal dividend must be brought within two years from the date of payment. Married Women. All property, real or personal, acquired before marriage and acquired after marriage, by gift, bequest, devise, or descent, is the wife’s separate property; all other property acquired after marriage, common property; wife must record inventory of separate personal property. No estate as tenant by courtesy allowed the husband nor dower to the wife. Mines and Mining. (Principal regulations under United States Statutes.) Quartz locations may be 1,500 feet long and 300 feet on each side of the middle of lode. Monuments must be established at all exterior angles of claim. Claim should be tied to some natural or permanent monument. Copy of location notice must be posted at discovery within three days after discovery. Notice of location must be recorded within ninety days after location; within sixty days ten-foot shaft must be sunk or its equivalent. Location notice must contain name of locator, name of claim, date of discovery, dimensions, distance from some permanent, natural, or artificial object; name of mining district, county, and state. Placer locations made in same manner as quartz locations, except that within fifteen days after making location, locator must excavate not less than 100 cubic feet for purpose of prospecting claim, and must record notice of location within thirty days after making location. Official patent survey of lode or placer claim by U. 8. Mineral Surveyor is labor performed upon and for the benefit of, said claim. Mortgages. A real estate mortgage must be acknowledged and certified, and recorded in like manner as conveyances and deeds of real proDerty, and is foreclosed by action in the district court. Deficiency judgment cannot be had for an amount greater than differ ence between indebtedness, plus costs of foreclosure and reasonable value of the mortgaged property. Chattel mortgages must be acknowledged as real estate mortgages and sworn to by the mortgagor that the same is made in good faith without any design to hinder, delay, or defraud creditors. Must be filed and a minute record made by recorder, unless mortgagee has possession. Survives as long as the debt. Mortgages are discharged by a satisfaction duly executed and recorded, or by entry on margin of the record, witnessed by recorder. Negotiable Instruments. Uniform Negotiable Instruments Act adopted. (See complete text of the law following “ Digest of Banking and Commercial Laws.”) Negotiable instruments are governed by the rules of the Uniform Negotiable Instrument Law, as recom mended by the American Bar Association. Notaries, when requested, to demand acceptance and payment of foreign, domestic, and inland bills of exchange or promissory notes and protest the same for non-acceptance and non-payment; exercise such other powers and duties as by the law of nations and commercial usage, or by the laws of any other Territory, State, govern ment, or country may be performed by notaries. Attach acknowl edgments or proof of powers of attorney; mortgages, deeds, grants, transfers, and other instruments of writing executed by any person. Give certificate of such proof or acknowledgment, to take depositions, affidavits, and administer oaths and affirmations in all matters incident to duties of the office. To keep a record of all official acts; when requested, and upon payment of his fees therefore, to make and give a certified copy of any record in his office; to provide and keep an official seal, on which must be engraved his name, the words “Notary Public," and “State of Idaho. To authenticate with his official seal all official acts. The commission is good throughout the State. Power of Attorney. Powers of attorney for grants of real estate and to execute a mortgage must be in writing, subscribed, acknowl edged or proved, certified and recorded as other instruments affecting real property. Powers of attorney which have been recorded must be revoked by revocation in writing, acknowledged, proved, certified, and recorded the same as original power. Probate Law. Probate courts have jurisdiction to open and receive proof of wills and admit them to proof; to grant letters testa mentary and guardianship and revoke same: appoint appraisers of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis estates, compel executors, etc., to render accounts; order sale of prop erty of estates and minors; order payment of debts due from estates, order and regulate distribution of property or estates; compel attend ance of witnesses and production of all instruments pertaining to estates and property of minors, and make such orders as may be neces sary to exercise all powers conferred. Proceedings of this court are construed the same as courts of general jurisdiction and like force given to its records. Protest. (See Notaries.) Records. All deeds, mortgages, real and chattel, and instruments affecting the title to lands must be recorded. Inventory of the separate personal estate of a married woman when recorded, become* prima facie evidence that the property therein enumerated is her separate property. In case of levy of attachment upon real estate, a copy of the writ, with a copy of the notice of levy attached thereto, must be filed in the office of the county recorder. Redemption. Property may be redeemed within one year after sale, on paying purchaser amount paid on sale and 6% interest addi tional. Property may be redeemed by successive redemptioners within sixty days from last redemption, and within one year from sale, by paying an additional 6% interest. In cases of tax sales, the owner may redeem in three years. Replevin. Action of, must be brought within three years from time it accrues. Plaintiff may sue for the possession without claiming immediate possession, or he may claim immediate possession at time of commencing suit or afterward. Affidavit showing that plaintiff is the owner, the detention, the unlawfulness of the detention, etc-. and bond with sureties required to obtain immediate Dossession. Defendant may execute undertaking, with approved sureties, for the retention of the property, and that it will be forthcoming, subject to the order of the court in which the action is pending, and thereupon retain the pos session of the property involved. Sales. Uniform sales Act recommended by American Bar Asso ciation. Seals. The distinctions between sealed and unsealed instrument* we abolished. Written contracts presumptive evidence of con sideration. Taxes. All property must be assessed with reference to its value at twelve o'clock noon on the second Monday of January of each year at its full cash value, and the owner or other claimant of the property shall have the same listed for taxation, and such taxes are a lien from and after that date. Personal property coming into State after second Monday in January subject to assessment with reference to its full cash value as to the date it comes into State for ■uch proportion of full value as is represented by that part of the year subsequent to its date of entry. If taxes are not paid by the fourth Monday in December they become delinquent, but half of the taxes may be paid before said date and the remaining half before the fourth Monday in June without delinquency. A penalty of 2 per cent is added on all delinquent taxes. Delinquency entries are made as of the first Monday in January in the succeeding year by the tax collector and have the force and effect of a sale to the county. They bear interest at the rate of 10 percent per annum from date and are not assignable. Redemption may be made within three years from the date of such entry. Notice of expiration of redemption period must be given by tax collector not less than three, nor more than five months before such expiration in order to entitle county to deed. Special provisions are made for redemption from taxes for years 1928 to 1933, inclusive. See 1935 Session Laws. Trust Companies. (See Guaranty Companies.) Warehouse Receipts. The Uniform Warehouse Receipts Act. recommended by the American Bar Association. Wills. Every person over the age of eighteen years, and of sound mind, may make a will. Every will, other than a nuncupative will, must be in writing, and every will other than an olographic and a nuncupative will, must be executed by the testator subscribing thereto or some person by his direction,.which must be done in the presence of two attesting witnesses, each of whom must sign his name and state that the testator requested him to witness the testator's signa ture. and the testator must also declare in the presence of the wit nesses that such is bis last will and testament. One-half of com munity property may be disposed of by will to the surviving spouse, his, her, or their children, the grand-children or parents of either spouse, or one or more of such persons, but not to exceed one-fourth to a parent or parents of either spouse, unless limited to an estate for life or less, and any part of the decedent’s share of the community property in excess of the unencumbered appraised value of $25,000 may be disposed of as the testator sees fit. Workingmen’s Compensation Act. The Workmen’s Compen sation Act of this state is based upon the Act recommended by the National Conference of Commissioners on Uniform State Law. (I. C. A. Title 43 Chapters 9-19 Inc.) The law provides Compensa tion for a workman for personal injury by accident arising out of and in the course of his employment. SYNOPSIS OF THE LAWS OF ILLINOIS RELATING TO BANKING AND COMMERCIAL USAGES Revised by Michael J. Stanton, Attorney at Law 536 So. Clark St., Chicago. Acknowledgments. Of deeds of real estate and other Instruments, may be taken before the following officers: Within this State before a master in chancery, notary public. United States commissioner, county clerk, justice of the peace, any court of record having a seal or any judge, justice, clerk, or deputy clerk thereof. Without this State, and within the United States, its territories, dependencies, or the District of Columbia, before a justice of the peace, notary public, master in chancery, United States commissioner, commissioner to take acknowledgments of deeds, mayor of a city, clerk of a county, or before any judge, justice, clerk or deputy clerk of the supreme, or district court of the United States, or before any judge, justice, clerk or deputy clerk, prothonotary, surrogate, or registrar of the supreme, circuit, superior, district, county, common pleas, probate, orphans or surrogate court of any of the States, Territories, or dependencies of the United States. In any dependency of the United States, such acknowledgement or proof may also be taken or made before any commissioned officer in the military service of the United States. When such acknowledgment or proof is made before a notary public. United States commissioner, or commissioner of deeds, it must be certified under his seal of office. If taken before a mayor of a city. It must be certified under the seal of the city; if before a clerk, deputy clerk, prothonotary, registrar, or surrogate, under the seal of his court; if before a justice of the peace or a master in chancery, there must be added a certificate of the proper clerk under the seal of his office setting forth that such person was a justice of the peace or master in chancery at the time of taking such acknowledgment or proof. An acknowledgment or proof of execution may be made in comformity with the laws of the State, Territory, dependency, or district where it Is made. Without the United States, before any court of any republic, dominion, state, kingdom, empire, colony, territory, or dependency having a seal, or before any judge, justice, or clerk thereof, or before any mayor or chief officer of any city or town having a seal, or before a notary public or commissioner of deeds, or any ambassador, minister or secretary of legation, or consul of the United States, or vice-consul deputy consul, commercial agent, or consular agent of the United States. The acknowledgment of a conveyance by a married woman BANKING AND COMMERCIAL LAWS—ILLINOIS may be made and certified as if she were single. An acknowledgment taken by any one interested in the conveyance is void. Actions. The Civil Practice Act of 1933 abolishes the common law forms of action and simplifies pleading; provides for uniform procedure in law and equity by, in most cases, making the equity rules applicable to both types of proceeding. Administration of Decedents’ Estates. Letters testamentary Issue to executor named in will, if he be a resident. If there be no will, or no executor named, or the executor is disqualified, or refuses to act, administration is granted to surviving husband, or wife, next of kin. or some competent person. The surviving husband or wife, or the person nominated by him or her, has preference. If none of the above named applies within sixty days from death of deceased, then administration is granted to the public administrator of the proper county. The administrator must be a resident of the State. A foreign executor or administrator, within the United States, may prosecute suits to enforce claims or to sell lands to pay debts. The Uniform Foreign Probate Act is in force in Illinois. The executor or administrator must file an inventory within three months from the date of his appointment and must fix upon a term of court, within six months from the time he qualifies, for the adjustment of claims, and publish notice thereof. The claimant should produce and file his verified claim, which, if not objected to, may be allowed without further evidence. If objected to, the claim is set down for trial. If the claim is not presented at the time fixed upon, it may afterwards, within one year, from the date of the issuance of letters of adminis tration, be filed with the clerk, whereupon a summons issues against the executor or administrator, and the matter is heard at a subsequent term. All claims not exhibited within one year from granting of administration are barred, except where newly discovered assets are found. Claims are classified as follows: 1. Funeral expenses and cost of administration. 2. Widow’s or children’s award. 3. Expenses of last illness, including physician’s bill, and demands due common laborers or household servants of deceased for labor. 4. Debts due common-school or township funds. 5. Trust funds. 6. All other debts. Claims have priority of payment in the above order. Affidavits. Within this State oaths and affirmations may be administered by any judge, justice of the peace, master in chancery, clerk of a court, police magistrate, or notary public, in their respective jurisdictions. Without the State the oath or affirmation may be administered by any officer authorized by the laws of the particular State, and if such officer has a seal, his certificate under his official seal is received as prime facie evidence of his authority. Aliens. The present law went into effect July 1, 1897. It does not affect the rights of aliens as to personal property, who still take the same as citizens. Its provisions are subject to treaties made by the United States with foreign countries. All aliens, subject to cer tain restrictions mentioned in the act, may acquire and for a limited time hold real estate situated in this State by deed, devise, or descent, and may transfer, devise or encumber it. Assignments. The operation of the Illinois Act relating to voluntary assignments for the benefit of creditors has been suspended by the national bankruptcy law. Attachments. A creditor, resident or non-resident, whose claim is due, may bring attachment in a court of record if the amount exceeds *20, and in justice court for any amount not exceeding $200. on any of the following grounds: 1. Where the debtor is a non-resi dent of this State. 2. Where the debtor conceals himself, or stands in defiance of an officer so that process can not be served upon him. 3. Where the debtor has departed from this State with the intention of having his effects removed from this State. 4. Where the debtor Is about to depart from this State with the intention of having his effects removed from this State. 5. Where the debtor is about to remove his property from this State to the injury of such creditor. 6. Where the debtor has, within two years preceding the filing of the affidavit required, fraudulently conveyed or assigned his effects, or a part thereof, so as to hinder or delay his creditors. 7. Where the debtor has within two years prior to the filing of such affidavit fraudu lently concealed or disposed of his property so as to hinder or delay his creditors. 8. Where the debtor is about fraudulently to conceal, assign, or otherwise dispose of his property or effects so as to hinder or delay his creditors. 9. Where the debt sued for was fraudulently contracted on the part of the debtor, provided the statements of the debtor, his agents or attorney, which constitute the fraud, shall have been reduced to writing, and his signature attached thereto by him self, agent, or attorney. The creditor must give bond in double the amount of the claim. Real estate or personal property may be attached or funds garnished. The property or funds may be released by the debtor giving a forthcoming bond, or entering into a recog nizance in court to pay the judgment. Banks and Banking. Under the state constitution stockholders have a double stock liability, and every bank must make, under oath, and publish each quarter a full and accurate statement of its affairs. An Act to revise the law in relation to banks and banking was passed and approved June 23. 1919. and ratified by referendum at the election of November 2. 1920. Banks may be formed under the statute for the purpose of discount and deposit, buying and selling exchange, and doing a general banking business, except the issuing of bills to circulate as money; may loan on both personal and retd estate security, and may accept and execute trusts. An association of persons, as hereinafter set forth may organize a bank by filing a statement with the Auditor. The minimum number of persons in such associations is fixed according to populations as follows: Populations No. of Persons 10,000 or less........................................................... 6 10,000 to 25.000.......................................................10 25,000 to 50,000.......................................................15 50,000 to 100,000.................................................... 20 Over 100.000.......................................................... .25 All such persons must be residents of place where bank is to be established and in places exceeding 100,000 population, 20 persons of the association must reside within 3 miles of the proposed location of the bank. Accompanying the application must be a statement made before some officer authorized to acknowledge deeds giving the net financial worth of each of the members of such associations together with at least three references as to personal character of each individual named therein. Whereupon the Auditor issues a permit to organize. The shares shall be not less than $10 nor more than $100 each. After the permit to organize is issued and the stock fully subscribed, the stockholders meet, fix the number of directors and elect the directors who shall manage the corporation for one year, or until their successors are elected. At the election of directors, stockholders have the right of cumulative voting. The directors elect one of their number President, appoint the necessary Officers and employes, fix their salaries and make by-laws. Each director shall file with the State Auditor an affidavit that he will faithfully perform the duties of his office in accordance with law; that he Is the owner in his own right, of ten shares of the stock of the bank, free from incumbrance. The directors must cause suitable books to be kept and file with the Auditor a list of stockholders and a copy of any other records the Auditor may require. Unless ano ther day is fixed by the by-laws of the Association, the stockholders shall meet the first Monday In January and elect directors. Vacancies are filled by vote of two-thirds of the directors. Each director must own shares of the stock of the bank of the par value of not less than $1000. and file a certificate or certificates thereof with the Cashier, to be held during his term as director. A quorum of the directors must meet once each month. Any officer, director or employe who shall make a false statement to any official authorized to examine the affairs of the bank, upon conviction shall be punished by imprisonment of not less than one or more than ten years. When the State Auditor is satisfied on https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1775 examination that the bank has been duly organized and its stock fully aid, he issues a certificate that the bank is authorized to commence usiness, which certificate must be filed with the Recorder of Deeds of the county in which the bank is to carry on its business. The double liability of stockholders applies to all debts contracted while they hold stock in the bank and is not released by an assignment of the stock. The President or Cashier must, within thirty days after organization file with the Recorder of Deeds, a complete list of stock holders and their holdings and record thereafter a certificate of all transfers within ten days after such transfers. A statement of the resources and liabilities of the bank must be filed with the State Auditor when required by him. The Auditor must call for such report at least once each three months. This report must be published in a news paper of the city or town where the bank is located. The State Auditor shall appoint a suitable person, not connected with the bank, to make a thorough examination of the affairs of each bank once a year, and report the same to the Auditor. A bank may hold only such real estate as may be necessary for a banking house or such as may be acquired in the collection of debts. Real estate acquired for debts must be disposed of within five years. No bank may establish branches. The total liability for money borrowed of any person, corporation or firm (including the members of the firm) to any banking association shall at no time exceed 15 per cent of the capital and surplus (not including undivided profits) of such bank and shall in no event exceed 30 per cent of the capital stock actually >aid in. Provided, however, that money borrowed within the meanng of the Act shall not include (1) the discount of bills of exchange drawn in good faith against actually existing values; (2) the discount of commercial or business paper actually owned by the person negoti ating the same; (3) the purchase of, or loaning money in exchange for. evidences of indebtedness which shall be secured by mortgage or trust deed upon productive real estate, the value of which, exclusive of buildings, as ascertained by the oath of two disinterested appraisers is double the amount of the principal debt secured; but in no event shall the liabilities of any such person, corporation or firm to such bank exceed the amount of its capital stock and unimpaired surplus or 25 per cent of its deposits. Directors are made personally liable for any violations of this provision to the extent of the loss occasioned thereby to the bank, its stockholders or any other party. No loan shall be made to the President, Vice-President or any employe of the bank until the loan shall have been approved by the Board of Directors. The minimum amounts provided for the capital stock of banks are as follows. In cities, towns and villages that have not exceeding ten thousand inhabitants, $50,000; between ten thousand and fifty thousand, $100,000; over fifty thousand, $200,000. Upon impairment of the capital stock the Auditor may require assessments of stock holders or a reduction of the capital. If he shall deem the bank Is being conducted in an unsafe, fraudulent or illegal manner, he may, for the purpose of reorganization, or liquidation through receivership take possession and control of such bank. Such receiver may upon order of Circuit Court borrow money and issue evidences of indebtedness therefor and may receive the payment of such loan by pledge of assets of such bank, for the purpose of facilitating liquidation, protecting or preserving the assets. Creditors may enforce stockholders liability by a bill in equity in the nature of a creditor’s bill. There are provisions for consolidation, change of name and voluntary dissolution. All banking associations heretofore organized by general or special Act, are made subject to all the provisions of this Act. After January 1, 1921, no natural person or natural persons, firm or partnership shall transact the business of banking or the business of receiving money upon deposit, or shall use the word “Bank" or “Banker” in connection with said business; provided, that nothing herein contained shall be construed to prohibit banks incorporated under the laws of this State or of the United States from appointing natural persons as agents to receive deposits of savings in and through the public schools. Any person violating the Act is guilty of a mis demeanor and is subject to a fine not exceeding *1,000, or imprison ment in the penitentiary for one year. A banker is liable to fine and Imprisonment if he receives a deposit after he knows the bank has become insolvent and thereby the depositor suffers loss. One drawing and delivering a check, draft, or order on a bank with Intent to defraud, and knowing at the time that he had not sufficient funds in or credit with the bank to pay the check, draft or order in full is guilty of a misdemeanor and is subject to a fine of *1,000 or imprisonment for one year, or both. (See Negotiable Instruments.) Bank Collection Code. Given directly following laws. Bills of Lading. The Uniform Bills of Lading Law is in force in Illinois. Blue Sky Law went into effect June 10, 1919, governing the ■ale of stocks of corporations. Securities are divided into four classes. Certain securities can be sold only after a full statement in regard thereto has been filed with the Secretary of State and a permit issued The law is stringent. Copies of the law and forms for use thereunder can be obtained by writing to the office of the Secretary of State. Springfield, Ill The act is entitled “The Illinois Securities Law.” Chattel Mortgages. No mortgage, trust deed, or other convey ance of personal property having the effect of a mortgage or lien, ia valid against third persons, unless possession be delivered to, and remain with the grantee; or the instrument provides for the possession of the property to remain with the grantor, and the instrument is acknowledged and recorded. Such instrument shall be acknowledged before any officer authorized by law to take acknowledgments of deeds. After acknowledgment and within ten days after its execution the Instrument must be filed for record with the recorder of the county in which the mortgagor resides when the instrument is executed, or, in case of a non-resident of the State, then in the county where the property is situated. The mortgage is a valid lien until ninety days after the maturity of the entire debt or obligation, not exceeding three years from the filing of the mortgage, and may be renewed for one year by affidavit which must also be filed for record. A note secured by chattel mortgage must state on its face that it is so secured, otherwise the mortgage is void. A mortgage may be released on the margin of the record, or by a release deed. Commercial Paper. (See Negotiable Instruments.) Consignments. Agreements to sell on consignment are valid. If a commission merchant, or party selling on commission, converts the property consigned, or after demand fails to account for the pro ceeds, he is subject to fine and imprisonment, and liable for double the value of the property so converted. Conveyances. (See Deeds.) Corporations. Corporations, except for charitable, educational, penal, and reformatory purposes, may be organized only under gen eral laws. (Const, art. XI, 1.) In all elections of directors every stockholder has the right to vote, in person or by proxy, for the number of shares of stock owned by him, or may cumulate his votes. (Const, art. XI. 13.) Corporations may be created under the act for any lawful purpose, or except for banking, insurance, the operation of railroads: and may be organized also for the purpose of acquiring and maintaining a uni form local transportation system comprising several means of transpor tation in cities of 500,000 or more. Corporations under the act have the following rights, powers, and privileges: (1) succession; (2) to sue and be sued in its corporate name; (3) common seal; (4) To hold, own and deal in and with, any real or personal property or any interest therein, situated in or out of the State, which may be appropriate to enable it to accomplish any or all of its purposes. (5) to sell and convey mortgage, pledge lease as lessor and otherwise dispose of all or any part of its property and assets; (6) to acquire and to own real property, improved and unimproved. S f 1776 BANKING AND COMMERCIAL LAWS—ILLINOIS and to lend money to its employees. lor certain purposes.; (7) to pur chase or otherwise acquire, hold, own and otherwise use, deal in, and with, shares or other interests in, or obligations of, other domestic or foreign corporations, associations, partnerships or individuals; (8) to make contracts and to incur liabilities which may be appropriate to accomplish its purposes; to borrow money without regard to the usury law of the State; to issue its notes, bonds and other obligations; and to secure any of its obligations by mortgage, pledge, or deed of its proper ty, franchises and income; (9) to invest its surplus funds from time to time and to lend money for its corporate purposes, and to take and hold real and personal property as security for the funds so invested or loaned: (10) to conduct its business, carry on its operations and have offices within and without the State and to exercise in any other state, territory, district or possession of the United States, or in any foreign country the powers granted by this Act. The defense of ultra vires is abolished as between the Corporation and any person not a stockholder. If a proceeding shall be brought by a stockholder against the corporation to injoin it from continuing an unauthorized Act the court may set aside and enjoin the unauthor ized Act, but in so doing shall deem to the corporation or the other party to the contract as the case may be, compensation for the loss or damage sustained by either of them. Anticipated profits shall not be allowed; (11) to elect officers, appoint agents, define their duties and fix their compensations; (12) to make by-laws not inconsistent with the laws of this State for the administration of the business and in terests of such corporation; (13) in time of war to transact any lawful business in aid of the United States in the prosecution of war, to make donations to associations and organizations aiding in war activities, and to loan money to the State or Federal Government for war pur poses; (14) to cease doing business and to surrender its charter; (15) to have and exercise all the powers necessary and convenient to carry into effect the purpose for which such corporation is formed. The board of directors must consist of at least three persons. The, directors exercise the corporate powers of the corporation. They may hold meetings and transact business outside of this State. They elect officers, adopt by-laws, and may appoint an executive committee. The name of a corporation must indicate that it is a corporation. If the name of a person or copartnership is used, it must be followed by the word “corporation,” “company,” “incorporated,” “limited,” or their abbreviations. The Secretary of State must be kept informed of any change of address of such office or place of business. Each Corporation shall maintain a registered office which may be but need not be the same as its place of business and a registered agent whose place of business shall be the same as the registered office. Such registered agent shall be the agent to receive service of process. In default of such appointment then the Secretary of State shall be irrevocably appointed as such agent for such corporation. No Certificate of Stock shall be issued for any share until such share is fully paid. Every certificate representing shares issued by a corpora tion which is authorized to issue shares of more than one class, shall state upon the face or back thereof, the rights of the shares of each class authorized to be issued. All stockholders’ meetings may be held within or without this State. Directors are elected at the regular annual meeting of the stockholders. No stock can be voted which shall have been transferred after the record date for closing the stock trans fer books. No proxy is good after eleven months unless otherwise pro vided in this proxy. Stockholders are liable to creditors of the corporation, only to the amount unpaid on the shares held by them. Corporation report between January 15 and last day of February each year to secretary of state. Decree in foreclosure. (See Mortgages.) Foreign Corporations. Each foreign corporation organized for profit (except banking, insurance, building and loan, and surety com panies), shall before it transacts any business or maintains an office in this State, procure a certificate of authority therefor from the Secretary of State. No foreign corporation shall engage or continue in any kind of business in this State, the transaction of which by domestic corpora tions is not permitted by the laws of this State. Each licensed foreign corporation shall keep on file in the office of the Secretary of State a copy of its charter and all amendments thereto. Foreign corporations are required to maintain a registered office and maintain registered agent and make the same reports as a domestic corporation. No foreign Corporation can maintain an action at law or in equity until a certifi cate of authority is obtained. Fees and Taxes. To the Secretary of State on filing a certificate of incorporation one-twentieth of 1 per cent upon the amount of the entire consideration received for issued shares of capital stock, but in no event less than $10. A foreign corporation, other than an insur ance company or building and loan company, upon obtaining a certifi cate to do business in Illinois pays the same fees upon the amount of its capital stock represented by business transacted and tangible pro perty in Illinois as similar domestic corporations pay upon incorpora tion. A domestic corporation or a foreign corporation licensed to do business in Illinois (except insurance companies), and which are re quired to make annual reports, must pay to the Secretary of State an annual license fee or franchise tax amounting to 1-20 of 1 % proportion of the amount received for its issued capital stock represented by busi ness transacted and property located in this State, but in no event shall any such license fee or franchise tax be less than $10 for any one year. The franchise tax is payable on July 1 for the succeeding twelve months. If a corporation fails to make an annual report within the time required, the Secretary of State assesses a franchise tax on the best available information, adding a penalty of 10 per cent on the amount of such assessment. Corporations are taxed on their tangible property, real and personal, within the State, and also upon the fair cash value of their capital stock, including franchises, over and above the assessed value of their tangible property. Shares of stock of domestic corporations, whose tangible property or capital stock is taxed, are not subject to taxation in the hands of owners. A corporation organized for the purpose of accepting and executing trusts may be appointed assignee or trustee by deed, and executor, guardian, or trustee by will, and any court may arpoint such com pany receiver, assignee, guardian, conservator, executor, adminis trator, or other trustee, provided such appointment apply to the estate only and not to the person. Such corporation is not generally required to give bond for the performance of a trust, but it is required to deposit with the Auditor of Public Accounts $200,000 in bonds of the United States, or in municipal bonds of this State, or real estate mortgages, and to make a statement, and file reports with the Auditor annually. There are special acts also as to the organization of cor porations not for pecuniary profit, religious corporations, loan asso ciations. co-operative associations for profit, insurance, etc. Cor porations, roreign or domestic, under certain restrictions may do a surety business. Courts. Supreme court (seven Judges); four appellate courts (Intermediate court of appeals, three judges each); circuit courts (in Cook County also superior court of equal jurisdiction); criminal courts; county courts (which also exercise probate jurisdiction in counties having less than 70,000); probate courts (in counties having over 70,000); municipal courts (Chicago has a municipal court with a chief justice and thirty-six associate judges and special practice): and justice courts. Days of Grace are abolished. (See Negotiable Instruments.) Deeds conveying land should be signed, sealed, and acknowledged by grantor. Scrawl seal is sufficient. No subscribing witnesses are required. Statutory forms of warranty and quit claim deeds and mortgages are provided. The words employed are (1) conveys and warrants, (2) conveys and quit claims, (3) mortgages and warrants. No deed releases the right of homestead unless it contains a clause substantially as follows: “Hereby releasing and waiving all rights under and by virtue oi the homestead exemption laws of the State https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis of Illinois," In which case the certificate of acknowledgment should contain the clause, “including the release and waiver of the right of homestead.” To release dower the husband or wife must join in the conveyance, except in the case of a mortgage for purchase money; otherwise the husband and wife may convey as unmarried. Deeds and other instruments affecting real estate should be recorded in the county where the real estate is situated; until so recorded they are void as to creditors and subsequent purchasers without notice. (See Land Registration.) Depositions. In chancery cases If the witness resides in the county, depositions may be taken on five days' notice; otherwise on ten days' notice and one day in addition for every fifty miles. At law, on like ten days' notice, where the witness resides in another county or is about to depart from the state. Where the witness resides out of the county or state, the deposition may be taken before a notary public or commissioner on a commission issued on ten days notice, either on written or oral interrogatories. If a witness sub poenaed to give his deposition before a notary public or other officer under commission issued by a court of this State, or of any other State or country, declines to appear or testify he may be cited before the circuit court of the county where he resides and be compelled to appear, testify, and produce documents. Descent and Distribution. Property In this State, both real and personal, of residents and nonresident proprietors in this State dying intestate, or whose estates or any part thereof shall be deemed and taken as intestate estate, after all just debts and claims against such estate are fully paid, shall descend to and be distributed in manner following, to wit: 1. To his or her children and their descend ants, in equal parts; the descendants of the deceased child or grand child taking the share of their deceased parents in equal parts among them. 2. When there is no child of the intestate, nor descendant of such child, and no widow or surviving husband, then to the parents, brothers and sisters of the deceased and their descendants, in equal parts among them, allowing to each of the parents, if living, a child's part or to the survivor of them if one be dead, a double portion; and if there is no parent living, then to the brothers and sisters of the intestate, and their descendants. 3a. When there is a widow or surviving husband and also parents, brothers and sisters of the deceased and their descendants but no child or children, or descend ants of a child or children of the intestate, then (after the payment of all just debts) one-half of the real estate and the whole of the personal estate shall descend to such widow or surviving husband as an absolute estate forever and the other half of the real estate shall descend to the parents, brothers and sisters of the deceased and their descendants in equal parts among them, allowing to each of the parents, if living, a child’s part to the survivor of them, if one be dead a double portion; and if there is no parent living, then to the brothers and sisters of the intestate and their descendants. 3b. When there is a widow or surviving husband and no child or children or descendants of a child or children of the intestate and no parents, brothers or sisters of the deceased and their descendants, then after the payment of all just debts, the entire estate, real and personal, shall descend to the surviving widow or husband outright. 4. When there is a widow or a surviving husband and also a child or children or descendants of such child or children of the intestate, the widow or surviving husband shall receive as his or her absolute personal estate, one-third of all the personal estate of the intestate; and he or she shall also receive as his or her absolute estate, in lieu of dower therein, one-third of each parcel of real estate of which the intestate died seized and in which such widow or surviving husband shall waive his or her right of dower. 5. If there is no child of the intestate or descendant of such child, and no parent, brother or sister, or descend ant of such parent, brother or sister, and no widow or surviving husband, then such estate shall descend In equal parts to the next of kin to the intestate in equal degree (computing by the rules of Civil Law), and there shall be no representation among collaterals, except with the descendants of brothers and sisters of the intestate; and in no case shall there be any distinction between the kindred of the whole and the half blood. 6. If any intestate leaves a widow or sur viving husband and no kindred, his or her estate shall descend to such widow or surviving husband. 7. If the intestate leaves no kindred, and no widow or husband, his or her estate shall escheat to and vest in the county in which said real or personal estate, or the greater portion thereof, is situated. (See Dower and Curtesy.) Dower. A surviving husband has dower (i. e., life interest in a third part of all lanas whereof deceased was seized of an estate of inheritance during marriage) the same as a widow. Equitable estates, and land contracted for before death, are subject to dower. If dower is waived, surviving husband or wife takes one third of the real estate and personal estate absolutely. Dower may be barred by jointure assented to; by devise, unless widow or surviving husband renounces benefit of devise within one year from date of letters of administration; by divorce as to the party in fault; and by abandonment coupled with adultery. There is no dower in land as against a purchase-money lien The husband or wife may renounce any devise under the will of the other and take if there be children, one third of the real estate, and one-third of personal estate, or, if no children, one-half of both real and personal estate absolutely. Executions. (See Judgments and Executions.) Executors and Administrators. (See Administration.) Exemptions. There is a homestead exemption to the extent of $1000. It may be extinguished by conveyance joined in by husband and wife properly acknowledged. (See Deeds.) The following personal property is exempt: 1. The necessary wearing apparel, Bibles, school books, and family pictures. 2. One hundred dollars worth of other property, to be selected by the debtor, and in addition, when the debtor is the head of a family and resides with the same, $300 worth of other property, to be selected by the debtor. Exemp tions can not be claimed out of partnership property. The wages of an employee being the head of a family ana residing with the same are exempt from garnishment to the amount of $20 per week. Frauds, Statute of. The following contracts should be in writing: J. A promise of an executor or administrator to answer any debt or damages out of his own estate. 2. A promise to answer for the debt, default, or miscarriage of another. 3. An agreement made in con sideration of marriage. 4. An agreement not to be performed within one year. 5. Any contract for the sale of lands, or any interest therein for a longer term than one year. 3. Express trusts relating to real estate. ” A contract to sell or a sale of any goods or cnoses in action of the value of five hundred dollars or upwards is not enforcible oy action, unless the buyer accepts part of the goods or choses In action so contracted to be sold or sold, and actually receives the same, or gives something in earnest to bind the contract, or in part payment, or unless some note or memorandum in writing of the contract or sale be signed by the party to be charged or his agent in that behalf. The act applies to sales for future delivery and to goods to be obtained or manufactured by the seller, but not to sales of goods to be manufactured on special order if they be not suitable for sale to others in the usual course of business." Garnishment. The funds or property of a debtor in the possession of a third party may be garnished in an attachment suit, or in a separate proceeding after judgment has been obtained against the principal debtor. (See Attachments.) Wages up to $20.00 a week are exempt from garnishment. Holidays. The legal holidays are: Sundays; January 1 (NewYear’s Day); February 12 (Lincoln’s birthday); February 22 (Washington’s birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); Thanksgiving Day; Tuesdays next after first Mondays in November in even years (election days); November 11 (Armistice Day); Decem ber 25 (Christmas Day); also every Saturday from 12 o'clock noon to 12 o'clock midnight. Where holidays fall on Sunday, the day following. BANKING AND COMMERCIAL LAWS—ILLINOIS Husband and Wife. (See Married Women.) Insuranee. Agents are required to have license. Write director of Trade and Commerce. Springfield. Ill. Insurance companies are bonded to state. Interest. Extreme contract rate, 7 per cent, except as to corpora tions, no limit as to corporations; legal rate, 5 per cent. Interestie allowed at the legal rate on moneys after they become due on any bond bill, promissory note, or other instrument in writing; on money loaned or advanced for the use of another; on money due on the settlement of an account, from the date of ascertaining the balance; on money received to the use of another, and retained without the owner’s knowledge; and on money withheld by an unreasonable and vexatious delay of payment. Judgments or decrees draw interest at 5 per cent. Penalty for contracting for more than 7 per cent is the loss of the entire interest, and only the principal sum can be recovered A written contract, wherever payable made, in this State between citizens of this State and of a foreign State (or secured by a mortgage on lands in this State) is controlled by the law of this State as to the rate of interest, and the penalty for usury. Usury must be specially pleaded. In all computations of time, and of interest and discounts, a month is considered to mean a calendar month, and a year twelve calendar months, and a day the thirtieth part of a month. A foreign corporation is subject to the same penalties for usurv as a citizen of this State. Justice of Peace has jurisdictionin all claims under #500 Judgments and Executions. A judgment is a lien on real estate situated in the county where the judgment is rendered, for seven years from its date, and to become a lien on land registered under Torrens System must be filed with registrar of titles. If an execution is not issued on a judgment within one year the judgment ceases to be a lien. A transcript of a judgment in another county may be filed and thereupon becomes a lien upon real estate of the defendant in the county where filed, and execution may issue there under. An execution becomes a lien on personal property from the time it is delivered to the officer to be executed. All goods and chat tels. including and money stock in a corporation, may be levied on. Personal property may be sold under execution on ten days’ notice. A forthcoming bond may be given by the defendant to the officer. A third party claiming the property levied on may have a trial as to the right of property in the county court. Judgments may be confessed by a debtor or his authorized attorney without process in term time or vacation. Land Registration Torrens System in use in Cook County. (See Mortgage Foreclosure.) Lien of judgment may be revived after expiration of seven years by scire facias, but not after twenty years. Liens. A landlord has a lien for rent upon crops growing on the demised premises. Hotel, inn, and boarding-house keepers have a lien upon baggage and other valuables of guests. Stable-keepers have a lien upon horses, carriages, and harness for the keeping thereof. Garage keepers are entitled to liens on automobiles, parts and acces sories, for keeping, repairing, materials furnished thereto, and the expenses bestowed thereon at the request of the owner, or the person having the possession thereof. Agisters and persons keeping, yarding andjeeding domestic animals have a lien therefor. All persons furnishing supplies, or doing work for any railroad organized under the laws of this State, necessary for the construction, maintenance, operation, or repair of the road, have a lien therefor on all the property of the company, which Is good as against mortgages and other liens acquired after the commencement of the delivery of supplies, or the doing of the work. Attorneys have liens on all demands, claims, and causes of action of their clients, after the service of notice upon the adverse party. Contractors and sub-contractors. Including architects, super intendents, timekeepers, etc., have liens on any real estate, interest therein, or improvements thereon, for all kinds of labor and services performed, and materials furnished for the erection of any building or the improvement of any real estate, or thing connected therewith! A person furnishing material, apparatus, fixtures, machinery or labor to a contractor for a public improvement, has a lien upon the money, bonds or warrants due or to become due under such contract- Pro vided, the claimant serves upon the municipality a notice of his claim before payment be made to such contractor; but the lien attaches only to the portions of the money, bonds, or warrants against which no voucher or other evidence of indebtedness has been issued and delivered to the contractor. Limitations. In personal actions as follows: Libel and slander, one year; actions for damages for injury to persons, two years (where death results, one year after death); for false imprisonment, malicious prosecution, for a statutory penalty, for abduction, seduction, or criminal conversation, two years; actions on unwritten contracts, express or implied, on awards of arbitration, to recover damages for injury to property real or personal, to recover possession of personal property, or damages for the detention of conversion thereof, and all civil actions not otherwise provided for, five years; actions on bonds, promissory notes, bills of exchange, written leases, written contracts, or other evidences of indebtedness in writing, ten years; but any payment or new promise to pay in writing renews the right of action on such instrument for ten years from the time of such payment or promise. A domestic judgment of a court of record, twenty years* of a foreign court of record, five years. Limited Partnership. There are statutory provisions as to the formation of limited partnerships, but such partnerships are not common in Illinois. Married Women. A married woman may sue, be sued, or defend, as if she were unmarried. When the husband deserts, the wife may prosecute or defend in his name. The husband has the same right upon the desertion of the wife. The husband is not liable for the wife s torts except in cases where he would be jointly responsible if the marriage did not exist. The husband or wife is not liable for the debts of the other incurred before marriage, or for the separate debts of each after marriage, except that the husband and wife are jointly and severally liable for the expenses of the family and the education of their children. The wife may contract as if unmarried. She may receive and use her own earnings free from the interference of the husband or his creditors. Neither the husband nor the wife can recover compensation for any labor performed or services rendered for the other. She may own in her own right real and personal property obtained by descent, gift, or purchase, and manage, sell and convey it to the same extent that the husband can property belonging to himbut no transfer of personal property between the husband and wife living together is good as against third persons, unless acknowledged and recorded as chattel mortgages are required to be. A married woman who without her fault lives apart from her husband may main tain an action for reasonable support and maintenance. The wife may insure her husband’s life. She may become surety for the hus band. She may execute a will, if over eighteen years of age, at which age she attains majority. Mortgages. Real estate mortgages should be executed and ac knowledged the same as deeds. The wife must ioin to bar dower, except in mortgages for purchase-money. Trust deeds are often preferred to mortgages because of the facility in the transfer of the security and, in case of non-resident creditors, in obtaining a release the trustee generally being a resident. Real estate mortgages may be released upon the record or by release deed. Mortgages and trust deeds must be foreclosed by scire facias or by regular foreclosure suit In a court of chancery. In extreme cases, where the mortgaged property is clearly of less value than the debt secured and the mort gagor is insolvent, there may be a strict foreclosure which cuts off the right of redemption, in which case the mortgagee takes the property in discharge of the debt. In other cases, after decree of foreclosure, the officer designated to execute the decree delivers a certificate of sale to the purchaser and files a copy thereof for record. The debtor may redeem within twelve months. Judgment creditor may redeem after twelve months, but within fifteen months; at the end of which time the purchaser is entitled to a deed. Corporations may waive https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1777 right of redemption by provision in any mortgage or trust deed waive right of redemption. The holder in due course of a note secured by a mortgage or trust deed on real estate in Illinois stands in no better position, so far as the enforcement of his security is concerned, than the payee or original holder; but this doctrine does not apply to cor porate bonds payable to bearer. Negotiable Instruments. The Uniform Negotiable Instruments Act (see complete text following ‘ Digest of Banking and Commercial A?iw?, ^ i? 'n force in Illinois, with the following modifications: 1. All Promissory Notes, Bonds, Due Bills, and other instruments in writing, whereby one promises or agrees, to pay any sum of money or articles of personal property, or any sum of money in personal property, or acknowledges any sum of money or article of personal property to be due, are negotiable. Except as to Promissory Notes payable in money due diligence must be used by the holder against the maker, if he be a resident and solvent, by suit at first term of Court after maturity, in order to hold the endorser. 2. Accommoda tion paper may be issued after maturity, if such was the intention of the accommodating party. 3. The addition of words of assignment or guaranty to a blank indorsement does not affect the signature as an indorsement unless otherwise expressly stated. 4. The defenses of fraud and circumvention In the execution of negotiable paper, or that the consideration arose out of a gambling transaction prohibited by sections 130. 131, and 136 of our Criminal Code, may be asserted as against a holder in due course. 5. The fact that a depositor makes his note payable at a bank does not authorize the bank to pay it out of his funds on deposit. 6. An alteration of an instrument voids it only when it is material or fraudulent, and made by the holder 7 A romise in writing to accept a bill made either before or after it Is rawn is deemed an actual acceptance as to the person receiving the bill on the faith thereof. 8. Section 137 of the Uniform Negotiable Instruments Law, providing that the destruction by the drawee of a bill of exchange left with him for acceptance, or his refusal to return the same within twenty-four hours after delivery to him or within such further period as the holder might allow, should be deemed an acceptance of the bill, is omitted from the Illinois act. Except as otherwise provided by agreement and except as to sub sequent holders of a negotiable instrument payable to bearer or Indorsed specially or in blank, where an item is deposited or received for collection, the bank of deposit shall be agent of the depositor for its collection and each subsequent collecting bank shall be sub-agent of the depositor but shall be authorized to follow the instructions of its immediate forwarding bank and any credit given by any such agent or sub-agent bank therefor shall be revocable until such time as the proceeds are received in actual money or an unconditional credit given on the books of another bank, which such agent has requested or accepted. Where any such bank allows any revocable credit for an item to be withdrawn, such agency relation shall nevertheless con tinue except the bank shall have all the rights of an owner thereof against prior and subsequent parties to the extent of the amount withdrawn. A credit given by a bank for an item drawn on or payable at such bank shall be provisional, subject to revocation at or before the end of the day on which the item is deposited in the event the item is found not payable for any reason. Whenever a credit is given for an item deposited after banking hours such right of revocation may be exer cised during the following business day. An indorsement of an item by the payee or other depositor “for deposit” shall be deemed a restrictive indorsement and indicate that the indorsee bank is an agent for collection and not owner of the item An indorsement “pay any bank or banker” or having equivalent words shall be deemed a restrictive indorsement and shall indicate the creation of an agency relation in any subsequent bank to whom the paper is forwarded unless coupled with the words indicating the crea tion of a trustee relationship; and such indorsement or other restric tive indorsement whether creating an agency or trustee relationship shall constitute a guaranty by the indorser to all subsequent holders and to the drawee or payor of the genuineness of and the authority to make prior indorsements and also to save the drawee or payor harm less in the event any prior endorsement appearing thereon is defective or irregular in any respect unless such indorsement is coupled with appropriate words disclaiming such liability as guarantor. Where a deposited item is payable to bearer or indorsed by the depositor in blank or by special indorsement, the fact that such item is so payable or indorsed shall not change the relation of agent of the bank of deposit to the depositor, but subsequent holders shall have the right to rely on the presumption that the bank of deposit is the owner of the item. The indorsement of an item by the bank of deposit or by any subsequent holder in blank or by special indorsement or its delivery when payable to bearer shall carry the presumption that the indorsee or transferee is owner provided there is nothing upon the face of the paper or in any prior indorsement to indicate an agency or trustee relation of any prior party. But where an item is deposited or is received for collection indorsed specially or in blank, the bank may convert such an indorsement into a restrictive indorsement by writing over the signature of the indorser the words “for deposit” or “for collection,” or other restrictive words to negative the presumption that such bank of deposit or indorsee bank is owner; and in the case of an item deposited or received for collection payable to b»arer, may negative such presumption by indorsing thereon the words “received for deposit” or “received for collection” or words of like import. It shall be the duty of the initial or any subsequent agent collecting bank to exercise ordinary care in the collection of an item and when such duty is performed such agent bank shall not be responsible if for any cause payment is not received in money or an unconditional credit given on the books of another bank, which such agent bank has requested or accepted. An initial or subsequent agent collecting bank shall be liable for its own lack of exercise of ordinary care but shall not be liable for the neglect, misconduct, mistakes or defaults of any other agent bank or of the drawee or Dayor bank. Where an item is received on deposit or by a subsequent agent bank for collection, payable in another town or city, it shall be deemed the exercise of ordinary care to forward such item by mail, not later than the business day next following its receipt either (1) direct to the drawee or payor in the event such drawee or payor is a bank or (2) to another bank collecting agent according to the usual banking custom, either located in the town or city where the item is payable or in another town or city. Where an item is received on deposit or by a subsequent agent bank for collection, payable by or at another bank in the same town or city in which such agent bank is located, it shall be deemed the exercise of ordinary care to present the item for payment at any time not later than the next business day following the day on which the item is received either (1) at the counter of the drawee or payor by agent or messenger or (2) through the local clearing house under the regular established procedure, or according to the usual banking cus tom where the collecting or payor bank is located in an outlying district The designation of the above methods shall not exclude any other method of forwarding or presentment which under existing rules of law would constitute ordinary care. Where the item is received by mail by a solvent drawee or payor bank, it shall be deemed paid when the amount is finally charged to the account of the maker or drawer. Where an agent bank forwards an item for collection, it shall not be responsible for its loss or destruction in transit or. when in the possession of others, for its inability to repossess itself hereof, pro vided there has been no lack of ordinary care on its part. Where ordinary care is exercised, any agent collecting bank may receive in payment of an item without becoming responsible as debtor therefor, whether presented by mail, through the clearing house or over the counter of the drawee or payor, in lieu of money, either (a) the check or draft of the drawee or payor upon another bank or (b) the check or draft of any other bank upon any bank other than the drawee or payor of the item or (c) such method of settlement as may be cus- S 1778 BANKING AND COMMERCIAL LAWS—INDIANA toinary in a local clearing house or between clearing banks or other wise: Provided that whenever such agent collecting bank shall request or accept in payment an unconditional credit which has been given to it on the books of the drawee or payor or on the books of any other bank, such agent collecting bank shall become debtor for such item and shall be responsible therefor as if the proceeds were actually received by it in money. Where ordinary care is exercised, any agent collecting bank may receive from any subsequent bank in the chain of collection in remit tance for an item which has been paid, in lieu of money, the check or draft of the remitting bank upon any bank other than itself or the drawee or payor of the item or such other method of settlement as may be customary: provided that whenever such agent collecting bank shall request or accept an unconditional credit which has been given to it on the books of the remitting bank or on the books of any other bank, such agent collecting bank shall become debtor for such item and shall be responsible therefor as if the proceeds were actually received by it in money. Where an item is duly presented by mail to the drawee or payor, whether or not the same has been charged to the account of the maker or drawer thereof or returned to such maker or drawer, the agent collecting bank so presenting may, at its election, exercised with reasonable diligence, treat such items as dishonored by non-payment and recourse may be had upon prior parties thereto in any of the following cases: (1) Where the check or draft of the drawee or payor bank upon another bank received in payment therefor shall not be paid in due course: (2) Where the drawee or payor bank shall without request or authority tender as payment its own check or draft upon itself or other instrument upon which it is primarily liable: (3) Where the drawee or payor bank shall give an unrequested or unauthorized credit therefor on its books or the books of another bank; or (4) Where the drawee or payor shall retain such item without remitting therefor on the day of receipt or on the day of maturity if payable otherwise than on demand and received by it prior to or on such day of maturity. Provided, however, that In any case where the drawee or payor bank shall return any such item unpaid not later than the day of receipt or of maturity as aforesaid in the exercise of its right to make payment only at its own counter, such item cannot be treated as dishonored by non-payment and the delay caused thereby shall not relieve prior parties from liability. , „ ., Provided further that no agent collecting bank shall be liable to the owner of an item where, in the exercise of ordinary care in the interest of such owner, it makes or does not make the election above provided or takes such steps as it may deem necessary in cases (2). (3) and (4) above. , , ^ . . In case of the dishonor of an item duly presented by mail as pro vided for in the next preceding section, notice of dishonor of such item to prior parties shall be sufficient if given with reasonable dili gence after such dishonor; and further in the event of failure to obtain the return of any such item notice of dishonor may be given upon a copy or written particulars thereof, and delay in giving notice of dis honor caused by an attempt with reasonable diligence to obtain return of such item shall be excused. 1. When the drawee or payor, or any other agent collecting bank shall fail or be closed for business by the Auditor of Public Accounts in the case of banks incorporated under the laws of this State, or the Comptroller of the Currency in the case of banks incorporated under the Federal laws, or by action of the board of directors or by other proper legal action, after an item shall be mailed or otherwise entrusted to it for collection or pavment but before the actual collection or pay ment thereof, it shall be the duty of the receiver or other official in charge of its assets to return such item, if same is in his possession, to the forwarding or presenting bank with reasonable diligence. 2. Except in cases where an item or items is treated as dishonored by non-payment as provided in section 11, when a drawee or payor bank has presented to it for payment an item or items drawn upon or payable by or at such bank and at the time has on deposit to the credit of the maker or drawer an amount equal to such item or items and such drawee or payor shall fail or close for business as above, after having charged such item or items to the account of the maker or drawer thereof or otherwise discharged his liability thereon but without such item or items having been paid or settled for by the drawee or payor either in money or by an unconditional credit given on its books or on the books of any other bank, which has been requested or accepted so as to constitute such drawee or payor or other bank debtor therefor, the assets of such drawee or payor shall be impressed with a trust in favor of the owner or owners of such item or items for the amount thereof, or for the balance payable upon a number of items which have been exchanged, and such owner or owners shall be entitled to a preferred claim upon such assets, irrespective of whether the fund representing such item or items can be traced and identified as part of such assets or has been intermingled with or converted into other assets of such failed bank. 3. Where an agent collecting bank other than the drawee or payor shall fail or be closed for business as above, after having received in any form the proceeds of an item or items entrusted to it for collec tion but without such item or items having been paid or remitted for by it either in money or by an unconditional credit given on its books or on the books of any other bank which has been requested or accepted so as to constitute such failed collecting or other bank debtor therefor, the assets of such agent collecting bank which has failed or been closed for business as above shall be impressed with a trust in favor of the owner or owners of such item or items for the amount of such proceeds and such owner or owners shall be entitled to a preferred claim upon such assets, irrespective of whether the fund representing such item or items can be traced and identified as part of such assets or has been intermingled with or converted into other assets Ol such failed bank* In any case not provided for in this Act the rules of law and equity, including the law merchant and those rules of law and equity relat ing to trusts, agency, negotiable instruments and banking, shall continue to apply. Partnership. The Uniform Partnership Act and the Uniform Limited Partnership Act are in force in Illinois. Probate Law. (See Administration of Estates.) Recording Acts. In counties having a population of less than 60,000, the clerk of the circuit court is ex officio the recorder. In other counties a “recorder of deeds’* is elected. As to what instruments must be recorded, see respective titles. Replevin. The action lies for personal property wrongfully de tained. The action may be brought in any county where the property is or where any of the defendants reside or may be found. Before the execution of the writ, the plaintiff, or some one in his behalf, must give the officer a bond with sufficient security (a real estate owner of the county is generally required) in double the value or the property defendant may execute bond for double value of property conditioned on defense of suit and retain possession of property. Sales. The Uniform Sales Act has been adopted in Illinois. 8alee of securities are by consent of Illinois Securities Commission and ara classified. (See Blue Sky Law.) Sales In Bulk. Sales of the major part or all of a stock in trade, chattels or fixtures not in the ordinary course of business, are fraudu lent and void as to creditors unless the buyer obtains froin the seller an afflaavit giving a list of his creditors with addresses and amount* due each, and the buyer, five days before payment, gives notice to each creditor personally or by mail of the contemplated purchase. Trust Estates. Subject to rules of Chancery disbursements to be approved by court. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Warehouse Receipts. The Uniform Warehouse Receipts Law is in force in Illinois. Wills. Every male over twenty-one, and female over eighteen. Is competent to make a will. It must be signed by the testator or by some person in his presence and by his direction, and attested in his presence at his request by at least two witnesses. The witnesses should be disinterested. A devise to a witness is void unless the will be otherwise duly attested by two witnesses exclusive of such person. Where the subscribing witnesses are dead, secondary evidence of the execution is admissible. The will is proved, after notice to heirs and legatees, in the county (or probate) court, and may be contested, in chancery, within one year after its probate. Wills or authenticated copies, affecting estate within this State, duly proved outside of this State, in accordance with the law of the State where executed, accom panied with a certificate of the proper officer of that fact, may be recorded here. Wills executed and published out of this State may be admitted to probate in any county in this State where the testator had lands or personal property upon like proof as if executed and pub lished here, whether or not the will has been first probated in another state or county. The Uniform Foreign Probate Act is in force in Illinois. All originals wills, after being filed, must remain in the office of the county (or probate) court. Children may be disinherited. SYNOPSIS OF THE LAWS OF INDIANA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Vesey & Shoaff, Attorneys-at-Law Old First Bank Bldg., Fort Wayne, Ind. (See Card in Attorneys List.) Acknowledgments. All conveyances of real estate, except leasee for less than three years, must be in writing, and acknowledged and recorded at once, or they will not bind third Darties. Within the State acknowledgments may be taken before a judge or clerk of the court of record, justice of the peace, auditor recorder, notary public, member of the general assembly, or mayor of a city, and in other states and territories before the like officers, or a commissioner of deeds for Indiana. In any foreign country, before a diplomatic or consular officer of the United States. If such acknowledgment or roof is in some other than the English language, or is not attested y such official seal, it must be accompanied by the certificate of an officer of the United States, to the effect that it is duly executed accord ing to the laws of such foreign country, and that the officer has legal authority to certify to the proof or acknowledgment and the meaning of his certificate, if made in a foreign language. Wife must join in deeds and mortgages of husband’s lands in order to carry her in choate one-third interest in husband's lands. No separate acknowl edgment of wife necessary in order to convey her inchoate interest In husband’s lands, although she must acknowledge. The certifying officer should state the date when his commission expires. Actions. The distinction between actions at law and suits In equity, and the forms of each, are abolished. There is but one form of action for the enforcement of private rights and redress of private wrongs, denominated by the Code a civil action. Every action must be prosecuted in the name of the real party in interest, except in suits by an executor, administrator, guardian of an idiot or lunatic, trustee of an express trust, or person expressly authorized by statute, who needs not join with them the person for whom the action is prosecuted. All parties in interest must be joined as plaintiffs or defendants: and when a complete determination of the controversy can not be had without the presence of other parties, who have not been made plaintiffs or defendants, the court must cause them to be joined. Commencement. A civil action is commenced by filing in the office of the clerk a complaint and causing summons to issue thereon; and the action is deemed commenced from the time of issuing the summons, or, if publication be made, from the time of the first pub lication. Joinder of Causes. The plaintiff may unite several causes or action in the same complaint, but they must fall within the term of the statute, and causes of actions so joined must affect all the parties to the action, must not require different places of trial and must be separately stated and numbered. ...... Severance. Where causes of action are improperly joined the court is required by statute to cause as many separate actions to be docketed as there are causes improperly joined. Consolidation. The courts have inherent power to consolidate causes before them in the absence of statute, when necessary to the ends of justice and to avoid a multiplicity of suits. Joint Debtors. In an action against defendants jointly indebted on contract, plaintiff may proceed against such defendant or de fendants as are served. A judgment may be enforced againstjoint property of all and the separate property of those served. Where judgment is recovered against one or more persons jointly liable on contract, but judgment is rendered against only part of the persons jointly liable for the reason that others were not summoned or did not appear, plaintiff may proceed against those not summoned and not appearing, in the same manner as if they were alone liable, but the complaint must allege the facts aforesaid. Survival A cause of action for breach of promise to marry, or arising out of an injury to the person, dies with the person of either partv. with the following exceptions: (1) Statutory action for his injury causing death; (2) action for seduction; (3) action for false imprisonment; (4) action for malicious prosecution. All otl^er causes of action survive. Administration of Estates. Except where special statutes provide otherwise with respect to a particular county the Circuit Court has exclusive probate jurisdiction. In cases ot intestacy letters are granted in following order: 1. Widow or widower 2 Next ot kin. 3. Largest resident creditor. Letters of administration shall be granted in the county: 1. Where intestate was inhabitant at time or death. 2. Where, not, being inhabitant of the State he leaves assets. Where an intestate, not being an inhabitant, shall die out of the State, leaving assets in several counties, letters may be granted in any one of the counties in which such assets may be at time of death, and the administration first lawfully granted shall extend to all or the estate. Preference is given to foreign executor of a decedent not an inhabitant of State, if, before letters are granted in this State it appears that proper letters have been granted in another state, except there be resident creditors, legatees and heirs entitled to dis tribution, who are inhabitants of the State. No action shall be brought against an estate for any claim against the decedent; but the holder thereof, whether the claim be due or not, shall file a suc cinct and definite statement thereof in the office of the clerk of the court setting forth all credits to which the estate is entitled, and accompanied by the affidavits of the claimant, his agent, or attorney, that the claim is just and wholly unpaid. If claim be secured by a lien the lien shall be particularly set forth. The claim must be filed within six months from the notice of the administrator s appointment, or claimant must pay costs; and if not pied at least thirty days before the final settlement of the estate, it shall be barred, except that heirs, devisees and distributees shall be liable to the extent of the property received by them, to any unpaid creditor who six months prior to the final settlement was insane, an Infant, or out of the State,—suit to be brought within one year of removal of disability, and if upon claim of non-resident creditor, within two years of the settlement of the estate. E BANKING AND COMMERCIAL LAWS—INDIANA Affidavits may be taken before any officer qualified to take acknowl edgments (see above). Date of expiration of officer's commission must be certified by the officer himself. Allens. Resident aliens who have declared their intention to become citizens, may acquire, hold, and enjoy real estate, and may convey, devise, mortgage, or otherwise encumber the same, in like manner and with the same effect as citizens of this State. Aliens, whether resident or not, may own real estate not exceeding 320 acres lands in excess of that amount they must convey within five years or suffer escheat as to such excess. Assignments and Insolvency. Any debtor may make a general assignment of all property in trust for benefit of all bona fide creditors This trust is administered under the direction of the county court. Dividends are allowed on all claims allowed by the trustee or court. Debtor is not discharged from his liabilities. Attachment may issue against the property of a non-resident or foreign corporation, and against any who may have disposed of, or be about to dispose of, property, to cheat, hinder or delay creditors, or against a creditor who conceals himself so that summons can not be served upon him. An affidavit is required, and a bond to pay dam ages if the proceedings be wrongful or oppressive. Creditors who file under the original attachment, before final judgment, are required to furnish a like affidavit and bond, and all share pro rata in the proceeds of the attached property. The wages of a resident house holder, not exceeding one month at any one time, are exempt so long as debtor remains in such employment. It is a misdemeanor to send claims out of the State to be collected by attachment, or garnishment, when creditor, debtor, and person owing for earnings intended to be reached are all within the jurisdiction of the court of this State. The collection of claims so sent may be enjoined. Bank Collection Code. Given directly following laws. Adopted July 1, 1929, Acts 1929 Ch. 164. Banks and Banking. All financial institutions are controlled by the “Indiana Financial Institutions Act.” (1933, c. 40, as amended by Acts 1935, C. 5.) The Department of Financial Institutions has all powers formerly possessed by the banking department and is vested with control over organization, supervision, regulation, examination and liquidation of all financial institutions, which term includes every bank, trust company, building and loan association, credit union, rural loan and savings association, guaranty loan and savings association, mortgage guarantee company and credit union. No bank, trust company, building and loan association, savings bank or credit union may be organized unless, after investigation and public hearing, the Department approves its articles and the establish ment of such institution in the city or town where it is proposed to be established. Any existing private bank, bank of discount and deposit, trust com pany, loan and trust and safe deposit company, building and loan asso ciation or rural or guaranty loan and savings institution may reorganize under the Financial Institutions Act, with approval of two-thirds of the outstanding shares and of the Department. Organization. Ten or more persons, a majority of whom are citi zens of Indiana, may organize a bank or trust company. Articles of incorporation must set forth name, purpose, period of existence, ad dresses of principal officers, amount of capital stock, par value of shares, paid-in capital with which business will begin, and names and addresses of directors and incorporators. Name must include words to indicate power as bank or trust company, and may not include words indicating powers not possessed. Articles must be approved by Department and filed with Secretary of State. Bank or trust company may not begin business until: (a) Articles approved by Secretary of State have been filed in recorder's office of the county of location; (b) amount of capital stock prescribed has been paid in; and (c) affidavit of majority of directors, stating that capital has been paid in, is filed with recorder. Minimum Capital Requirements of bank or trust company are; $25,000 in cities or towns of less than 3,000 inhabitants; $50,000 in cities of 3,000 or more and less than 6,000 inhabitants; $100,000 in cities of 6,000 or more and less thaD 75,000 inhabitants; $200,000 in cities of 75.000 or more inhabitants. Amendment of Articles. Articles of incorporation of bank or trust company may be amended from time to time and capital stock increased or decreased. Reserve. Bank or trust company must maintain reserve balance equal to 12 of demand deposits and 3% of time deposits. Slock. Shares of a bank or trust company must be of $100 par value and may have only such preemptive rights as are stated in the articles. Bank or trust company may not purchase its own stock, except when same is taken on a previous debt, in which case it must be resold. Stockholders of a bank or trust company are liable for its debts and liabilities, to an amount equal to the par value of their stock, in addi tion to the amount paid therefor and/or unpaid thereon. General Powers. Every bank or trust company has power to: Act as fiscal or transfer agent; discount and sell negotiable or nonnegotiable instruments; purchase and sell securities without recourse; pur chase, hold and convey real estate; act as commissioner, guardian, trustee, receiver, executor or administrator; accept property manage ment; receive deposits for safekeeping and in escrow; become a member of Federal Reserve System. Loans and Discounts. The obligation of any person to any bank may not exceed 10% of the unimpaired capital and surplus and unimpaired proceeds of notes and debentures of any bank or trust company issued with approval of the department, except as follows: No limitation is placed on drafts or bills of exchange drawn in good faith against actually existing values, obligations arising out of discounts on paper actually owned by person negotiating, obliga tions drawn against existing values and secured by goods in process of shipment, or tax anticipation warrants or loans to National or Indiana State Banks. A 15% limitation applies to obligations as indorser of notes other than commercial paper of not more than six months owned by person indorsing, obligations of any person in form of notes or drafts secured by shipping documents or ware house receipts covering readily marketable non-perishable staples or live stock when market of such staples or live stock is not less than 115% of such obligation or obligations secured by bonds or notes of United States. Obligations in form of bankers’ acceptances, having not more than six months sight to run, if the accepting bank is secured by some adequate security are subject to a 90% limitation. The total loans to all directors or companies in which directors are interested may not exceed 15% of unimpaired capital and surplus. Loans on real estate are limited to that within fifty miles of bank, such loan constituting only a first lien not to run for more than five years nor to exceed 50% of cash value of real estate. The aggregate of such loans, together with loans on which the bank or trust company is liable as guarantor, may at no time exceed 35% of the deposits. Trust Department. Every bank or trust company exercising fidu ciary powers must maintain a trust department, keeping separate books of account and maintaining all trust securities segregated from other property of the bank. All trust money not directed to be spe cifically invested may be invested in: (a) Obligations of the United States; (b) obligations of municipalities or taxing districts of Indiana; (c) bonds, notes or mortgages with maturities of five years or less secured by first liens on fee simple of real estate in Indiana worth not less than twice the total obligation secured; (d) bonds issued by authority of Federal Farm Loan Act or Federal Home Loan Bank Act. No profit, other than interest at legal rate on a loan, may be received by any bank or trust company directly or indirectly out of the sale or purchase to or from any estate. All money not invested in accord ance with the Act is at the risk of the bank or trust company. Money awaiting investment or distribution may be kept on deposit pro vided sufficient book entries show true ownership of such money in both bank and trust departments, but no money In excess of $1 000 may be held uninvested for longer than six mouths unless the trust 94 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1779 provides otherwise. On liquidation of any bank or trust company, all persons beneficially entitled to receive property or proceeds held by it in trust have preference and priority in all the assets over general creditors for all uninvested funds, to the extent that such money is commingled with general assets and is not duly accounted for. Money in excess of $100, held in a fiduciary capacity, must be allowed interest at a rate not less than 3% for any period in excess of six months. Examinations and Reports. All financial institutions are subject to examination without notice and the Department may require sub mission and publication of as many statements of condition as are deemed necessary in any year. Consolidation or Disposition of Assets. Two or more banks or trust companies may consolidate if consolidation is approved by a majority of the outstanding shares and by the Department. Any bank or trust company may sell, lease, exchange or otherwise dispose of all its assets if such disposal is approved by two-thirds of the out standing shares and by the Department. In either event dissenting stockholders are entitled to receive the value of their shares. Voluntary Dissolution of a bank or trust company must have approval of a majority of the directors and of the Department. In such case, the directors, with approval of the Department, appoint a liquidating agent, who winds up the affairs of the corporation under supervision of the Department. Insolvency or_ Suspension. If any financial institution is insol vent, or in imminent danger of insolvency, or fails or suspends opera tion, the officers of such institution must notify the Department. The Department may take charge of the business of any financial institution, except a small loan company, when such institution; (a) Has violated its articles, law of State or regulation of Department : (b) is conduct ing its business in unauthorized or unsafe manner; (c) is in unsound or unsafe condition; (d) cannot with safety continue business; (e) has an impairment of capital; (f) has suspended payment of obligations; (g) has failed for thirty days to comply with order of Department essential to preserve solvency; (h) has refused to submit its records to Department; (i) has refused to be examined under oath regarding its affairs; or (j) is insolvent or in imminent danger of insolvency. When possession of the Department has once attached for any of the foregoing reasons it does not terminate until liquidation unless: (a) The Department approves resumption of business on conditions ap proved by it or with restricted deposits after consent by 75% of the unsecured creditors and depositors or two-thirds of stockholders; or (b) such institution, by proceedings instituted within five days after the Department takes possession, enjoins such possession; or (c) the institution has undertaken voluntary liquidation. When the Department takes charge of any such institution it must liquidate and distribute the assets of such institution. The circuit, superior or probate court of the county to which the Department must make application has certain powers with reference to liquidation, al lowance of claims and priorities, etc. The Department is vested with power to affirm or disaffirm leases and to enforce the shareholders’ liability. After liquidation proceedings are complete, the Department must file articles of dissolution of the institution. Institutions Other Than Banks or Trust Companies. The Financial Institutions Act contains detailed provisions with respect to the formation, management, etc., of various financial institutions other than banks and trust companies, such as building and loan associations, credit unions, etc. Foreign Corporations. A bank, trust company, or building and loan association organized under the laws of any other state, before transacting business in this state, must procure a certificate of admis sion from the Department and the Secretary of State. Before such certificate of admission is granted, such corporation must deposit $1,000 in money or bonds of the United States or of any state of the United States or of any municipal corporation of Indiana to the satisfaction of the Department, with the Department, or in lieu thereof, file a writ ten contract or bond executed by a responsible surety company to the approval of the Department, by the terms of which such surety com pany agrees that on notice by registered mail from the Department, it will pay indebtedness to citizens of Indiana up to $1,000. Such foreign corporation must also file with the Department a written instru ment agreeing that summons may issue against it from any county in the state by service on the Director of the Department. No foreign corporation may be admitted for the purpose of trans acting any kind of business in this state which a domestic corporation is not permitted by the laws of the state to transact, nor may any such corporation hold any real estate in this state, except such as may be necessary for the proper carrying on of its legitimate business. No foreign corporation admitted to do business in this state may have a name which a domestic corporation with like powers could not have. The application submitted to the Department and the Secretary of State must contain a copy of the articles of incorporation, and must state the name, principal place of business, states in which it is ad mitted or qualified to do business, character of business, authorized capital and amount thereof outstanding, amount of tangible property and estimated total of tangible property to be employed during current fiscal year and succeeding year, names of directors and officers and resident agent of corporation. The application must be approved or disapproved by the Department in like manner as in the case of domes tic banks and trust companies. In case of approval, the application is filed by the Secretary of State and a certificate of admission issued. Within ten days after admission of the corporation, there must be filed with county recorder of county wherein principal office is to be located, a duplicate certificate of admission. If any foreign corporation transacts business in this state, after it has received, but before it has recorded its certificate of admission, the officers and directors participating therein are severally liable for the debts of the corporation arising out of such business. The Depart ment has power at any time to interrogate the corporation in matters pertaining to its business. Application for withdrawal from the state by any corporation must be filed with and approved by the Department. The certificate of admission of any foreign corporation may be revoked at any time by the Department or by the Secretary of State with approval of the Department: (a) On failure of officer or director to answer interrogatories of Department; (b) on failure to file reports; (c) on failure to maintain a resident agent; (d) on failure to keep authenticated copies of instruments amending charter of corporation on file with Secretary of State; (e) on failure to file certificate of ad mission or amendments thereof with county recorder; (f) if corpora tion has not transacted business in state for a year and has no tangible property in the state; (g) on failure to pay fees required; (h) for willful misrepresentation of material matters in application, affidavits, or other papers. Foreign corporations entitled to transact business in the state when the Financial Institutions Act became effective are subject to the limi tations of the act. Corporation failing to maintain an agent for service of process may be served by issuing summons to the Director of the Department. Foreign corporation transacting business without procuring a certi ficate of admission may not maintain any suit or action in any courts of the state and such corporation is subject to a penalty not exceeding $10,000 to be recovered in a suit brought by the Attorney General. Taxes on bank shares, surplus, undivided profits and deposits and on building and loan associations, see Taxation. Fiduciaries. “Fiduciary” includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a cor poration, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate. “Person” includes a corporation, partnership, or other association, or two or more persons having a joint or common interest. 1780 BANKING AND COMMERCIAL LAWS—INDIANA ‘‘Principal" includes any person to whom a fiduciary as such owes an obligation. If a fiduciary in whose name are registered any shares of stock, bonds or other securities of any corporation, public or private, or company or other association, or of any trust, transfers the same, such corporation or company or other association, or any of the managers of the trust, or its or their transfer agent, is not bound to Inquire whether the fiduciary is committing a breach of his obligation as fiduciary in making the transfer, or to see to the performance of the fiduciary obligation, and is liable for registering such transfer only where registration of the transfer is made with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making the transfer, or with knowledge of such facts that the action in registering the transfer amounts to bad faith. If anv negotiable instrument payable or endorsed to a fiduciary as such is’endorsed by the fiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by a fiduciary em powered to endorse such instrument on behalf of his principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in endorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the Instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in transferring the instrument If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of his principal by a fiduciary empowered to draw such Instrument in the name o f the principal, the payee is not bound to inquire whether the fiduciary is committing a breach of his obliga tion in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instru ment amounts to bad faith. If, however, such instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary, to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of his obligation in drawing or delivering the Instrument If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, payable to the fiduciary personally, or payable to a third person and by him transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether In payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of his obligation in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation, unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with the actual knowledge that the fiduciary is committing a breach of his obligation in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary In fact commits a breach of his obligation in drawing or delivering the check. , . , . . , , If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal’s account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation In drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check Is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obliga tion in drawing or delivering the check. If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and en dorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation; and the bank is authorized to pay the amount of the deposit or any part there of upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith. When a deposit is made in a bank in the name of two qr more persons as trustees and a check is drawn upon the trust account by any trustee or trustees authorized by the other trustee or trustees to draw checks upon the trust account, neither the payee nor other holder nor the bank is bound to inquire whether it is a breach of trust to authorize such trustee or trustees to draw checks upon the trust account, and is not liable unless the circumstances be such that the action of the payee or other holder or the bank amounts to bad faith. In any case not provided for in this act, the rules of law and equity. Including the law merchant and those rules of law and equity relating to trusts, agency, negotiable instruments and banking, shall continue to apply. (Acts Feb. 23, 1927, effective May 16, 1927). Bills of Exchange and Promissory Notes. No grace Is allowed. Damages for protest on bills upon any person at any place out of this State, but within the United States, 6 per cent on bills drawn upon any person at any place without the United States, 10 per cent. The Uniform Negotiable Instrument Law has been in force in Indiana since 1913. Instruments calling for the payment of money containing a cognovit feature are void. It is a misdemeanor, punishable by fine to possess a cognovit note. (See Negotiable Instruments) Cognovit Notes. The execution, indorsement and procurement of such notes, and the taking of judgment thereon otherwise than by action of court upon a hearing after personal service upon the debtor, are prohibited. (Act March 10. 1927. effective May 16, 1927). Blue Sky Law (Enacted 1926). The Act known as the Indiana Securities Law was approved February 27, 1925, and was effective April 26, 1925. Provides for a Securities Commission. The Secretary or State shall constitute the Securities Commission with plenary power to administer the Act. "Security” shall include any note, stock, treasury stock, bond. debenture, evidence of indebtedness, certificate of interest or par ticipation, certificate of interest in a profit-sharing agreement, certifi cate of interest in an oil, gas, or mining lease, collateral trust cer tificate, pre-organization certificate, pre-organization subscription, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis beneficial interest in a trust or pretended trust, any transferable share, investment contract, or beneficial interest in or title to property or profits, income contracts, contracts for sale of securities on installment plan. "Person" shall Include a natural person, a corporation created under the laws of this state or any other state, country, sovereignty, or subdivision thereof, a partnership, an association, a joint stock company, a trust, a syndicate, a firm, and any unincorporated organiza tion. “Sale” shall Include every disposition or attempt to dispose of a security or interest in a security for value. “Dealer” shall include every person other than an agent, who In this state engages either for all or part of his time directly or through an agent in the business of selling any securities. The word “dealer” shall not include a person having no place of business in this state, who sells or offers to sell securities exclusively to a promoter or dealer actually engaged in buying and selling securities nor to banks and trust companies. Issuer” shall mean and include every person who proposes to issue, has issued, or shall hereafter issue any securities. Any natural person who acts as a promoter for and on behalt of a corporation to be formed shall be deemed to be an issuer. “Agent” shall include every natural person, other than a dealer, employed or appointed or authorized by a dealer or issuer to sell securities in any manner in this state. “Fraud” and “fraudulent” include any misrepresentations of a relevant fact which are intentional or due to gross negligence; any promise as to future not made in good faith; intentional failure to disclose a material fact. This Act shall not apply to the following classes of securities: (a) Any securities issued or guaranteed by the United States or any territory or insular possession thereof, or by the District of Colum bia or by any state or political subdivision thereof, having the power of taxation or assessment; or by any public instrumentality of a State or by any person acting as an instrumentality of U. S., or any security issued or guaranteed by any National, or State, or Federal Reserve Bank. (b) Any securities issued or guaranteed by any foreign government with which the United States is at the time of the sale or offer of sale thereof maintaining diplomatic relations if the security has been registered with the Federal Trade Commission and under the Securities Act of 1933 of the U. S. as amended. (c) Any securities issued or guaranteed either as to principal. Interest or dividend by a corporation owning or operating a railroad or any other public service utility: Provided, that such corporation Is subject to regulation or supervision as to the issue of its own securities by a public commission. (d) Any securities issued by a corporation organized under the laws of this state exclusively for educational, benevolent, fraternal, charitable, or reformatory purposes, and not for pecuniary profit (e) Securities appearing in any list of securities dealt In on any recognized and responsible stock exchange which has been previously investigated and approved by the commission: Provided, however, that the commission may at any time withdraw its approval of any such stock exchange or security. (f) Negotiable promissory notes or commercial paper. (g) Any security except common stock which has been issued and in banks of public without default for at least five years. (h) Common stock of any solvent Indiana or U. S. corporation in existence for fifteen years without reorganization, having earnings for each year of 6% of par value of common stock, price of which is reported daily in a New York or Chicago paper, and whose financial statements appear in an approved manual of securities. (i) Securities issued in exchange for outstanding securities under court authority. The Act does not apply to the sale of any securities at any judicial, executor’s, administrator’s, guardian’s, or conservator's sale, or at the distribution by a corporation of capital stock, to its stockholders as a stock dividend. The transfer or exchange by one corporation to another of their own securities in connection with a consolidation or merger of such corporations. No securities except those exempted shall be sold within this state unless and until such securities shall have been registered by notifica tion or by qualification. The following securities shall be entitled to registration by notifica tion: Securities Issued by a corporation, partnership, association, etc., which has been in continuous operation not less than three years, and which has shown during a period of not less than two years, nor more than ten years, next prior to the close of its last fiscal year preceding the offering of such securities, average annual net earuings. Securities entitled to registration by notification shall be registered by the filing by any registered dealer interested in the sale thereof in the office of the Commission of a written statement containing the following: Name of issuer. Brief description of the securities including the amount of the issue. Amount of securities to be offered in the state. Brief statement of the facts which show that the securities fall within one of the notification classes. The price at which the securities are to be offered for sale. The filing of such statement in the office of the Commission and the payment of the fee shall constitute registration of such security, and such security when so registered may be sold in this state by any registered dealer. Applicants for registration shall pay to the Commission a fee of one-twentieth of one per cent of the aggregate par value of the securi ties to be sold in this state, but in no case shall such fee be less than $5.00 nor more than $150.00. All securities required by this Act to be registered before being sold in this state, and not entitled to registration by notification, shall be registered only by qualification, as follows: Applications shall be in writing and sworn to upon prescribed forms. The applicant shall pay to the Commission a fee of one-twentieth of one per cent of the aggregate par value of the securities to be sold, but in no case shall such fee be less than $25.00. Upon application for registration by qualification, whether made by an issuer or registered dealer, where the issuer is not domiciled In this state, there shall be filed with such application the irrevocable written consent of the issuer that suits and actions growing out of the violation of any provision or provisions of this Act may be com menced against it in the proper court, said consent agreeing that such service of process shall be taken as valid and binding as if due service had been made. The Commission may revoke the registration of any securities upon cause, and the Commission shall have access to and may compel the production of all the books and papers of such issuer. No dealer or agent shall engage in the business of selling securities until he has been registered. ... The fees shall be $75.00 in the case of dealers and $5.00 in the case of agents. Registration may be refused such applicant or registrant upon Nothing in this Act shall be construed to relieve corporation from making reports now or hereafter required by law to be made to the Secretary of State or any other state officer, or paying the fees now or hereafter to be paid by corporations. This Act shall not be construed to repeal any law now In force regu lating the organization of corporations or the admission of any foreign corporations. BANKING AND COMMERCIAL LAWS—INDIANA An appeal may be taken by any person Interested from any Anal order of the Commission to the Marlon Circuit Court by serving upon the Commission within twenty days from the entry of such order a written notice of such appeal, and executing a bond in the penal sum of $500.00. The Act approved July 26, 1920, and amended March 9. 1921, entitled An Act to Prevent Fraud in the Sale and Disposition of Stocks, Bonds, and other Securities and real estate in certain cases in the State of Indiana,” and all acts and parts of acts in conflict herewith are hereby repealed as of the date of the taking effect of this act. Chattel Mortgages. Chattel mortgage on personal property left In the hands of the mortgagor with power to sell must stipulate that the money received by the sale be applied to the payment of the mortgage debt, and should be drawn in the form of an absolute bill of sale, must be acknowledged in the same manner as prescribed for the acknowledgments of deed, and recorded within ten days from execution, and in the county where the mortgagor resides. An assignment of goods, by way of mortgage, where such goods are not delivered to the mortgagee, shall not be valid against any other person than the parties thereto, unless such mortgage shall be acknowledged, and recorded within ten days after the execution thereof. Where delivery of the chattels to the mortgagee occurs at the time, record Is unnecessary. A mortgagee of household goods can not sell mort gaged property except under a judicial proceeding in the circuit or superior court. For certain restrictions on the lending of money on mortgage of household goods, see statutes. Conveyances as security by way of Trust Receipt are regulated by the Uniform Trust Receipts Act (Acts 1935, c. 206). Conditional Sales are regulated by the Uniform Conditional Sale Act (Acts 1935, c. 182) and by the Uniform Retail Installment Sale Act (Acts 1935, c. 231). Conveyances. All conveyances, mortgages or leases for more than three years shall be recorded and take priority according to time of filing as against good faith purchaser, lessee or mortgagee. Lands in this State may be taken, held, conveyed, devised, or passed by descent, by or from any citizen of the United States; or by or from any alien (see Aliens), with some provided exceptions as to descent or devise. Lands which may have come by descent or purchase to the wife of an alien, may be held, conveyed, devised and passed by descent by and from her, notwithstanding the fact of her residence with her husband In a foreign state or country. Except bona-fide leases for a term not exceeding three years, con veyance of lands, or of any Interest therein, must be by deed, sub scribed, and acknowledged by the grantor or by his attorney in fact. The joint deed of a husband and wife is sufficient to pass the lands of the wife. Except in cases of mortgages, conveyances in trust, conveyances to husband and wife, and cases of estates vested in executors or trustees, as such, and so held by them in joint tenancy, all conveyances and devises of lands, or of any Interest therein, made to two or more persons, shall be construed to create estates in com mon, and not in joint tenancy, unless it shall be expressed therein that the grantees or devisees shall hold the same in joint tenancy and to the survivor of them, or it shall manifestly appear from tenor of instrument, that It was intended to create an estate in joint tenancy. A deea of release or quit-claim shall pass all the estate which the trantor could convey by a deed of bargain and sale. If it be the ntention of the grantor to convey any lesser estate it must be so expressed in the deed. Liability on lineal and collateral warranties Is expressly abolished; a covenant or agreement of any person leaves heirs and devisees answerable thereon only to the extent of property descended or devised to them. Any conveyance of land worded— “A. B. conveys and warrants to O. D. (here describe the premises) for the sum of (here insert the consideration),” or “A. B. quit-claims to C. D. (here describe the premises) for the sum of (here insert the consideration),”—the same being dated, and duly signed and acknowl edged by the grantor,—shall, in the one case, be a conveyance in fee simple to the grantee, his heirs and assigns, with covenant from the grantor for himself and his heirs and personal representatives that he Is lawfully seized of the premises, has good right to convey the same, and guarantees the quiet possession thereof, that the same are free from all incumbrances, and that he will warrant and defend the title of the same against all lawful claims; and shall, in the other case, be deemed to be a good and sufficient conveyance in quit-claim to the grantee, his heirs and assigns. Any mortgage of lands worded —“A. B. mortgages and warrants to O. D. (here describe the premises) to secure the repayment of (here recite the sum for which the mortgage is granted or the note or other evidences of debt, or a description thereof, sought to be secured, also the date of the repayment”—the same being dated and duly signed and acknowledged by the grantor —is a sufficient mortgage to the grantee, his heirs, assigns, executors and administrators, with warranty from the grantor and his legal representatives of title perfect and unincumbered in the grantor. When a deed purports to convey absolutely any estate in lands, but Is made, or intended to be made, defeasible by force of a deed of defeasance, bond or other instrument for that purpose, the original conveyance shall not thereby be defeated or affected as against any person other than the maker of the defeasance, or his heirs or devisees, or persons having actual notice thereof, unless the instrument of defeasance shall have been recorded, according to law. within ninety days after the date of said deed. Every conveyance or mortgage of lands, or of any interest therein, and every lease for more than three years, shall be deemed fraudulent and void as against any subsequent purchaser, leasee or mortgagee in good faith and for a valuable con sideration. unless recorded in the recorder's office of the county whore such lands are situated. (See Acknowledgments, Married Women.) When either the husband or wife Is of unsound mind the party with the sound mind can either join in the guardian’s deed or make his separate deed and the effect would be the same as a joint deed of husband and wife both of whom are of sound mind. Collections. Uniform Bank Collection Code as recommended by American Bankers Association, see complete text back of Laws. Corporations. Three or more persons may form a corporation for any lawful purpose by filing articles of association with the Secretary of State and the Recorder of the County. Special charters are neces sary for banks, building and loan associations, insurance, security, railroad, telegraph, telephone, turn-pike company, etc. The liability of stockholders varies. In banking corporations the stockholder is responsible not only for his original subscription, but for an amount equal thereto. In all other corporations he is liable for the subscription price of his stock. A corporation act was passed by the legislature in 1929, which gives great liberality. A corporation may change its powers, increase or decrease its capital stock, change the par value of any class or classes of shares of its capital stock with par value, change the number of its outstanding shares of any class of stock into different numbers of shares of said class, increase its Board of Directors, fill vacancies therein, hold its meetings within or without the state, transfer its stock free of taxes and must report but once each year to the Secretary of State. This report is merely a formal one giving amounts of stock outstanding, list of officers, etc. The corporation is assessed for local taxes upon the value of its holdings within the State of Indiana and only upon such holdings. Foreign corporations, or their agents, before entering upon the duties of their agency in this State shall deposit in the Clerk’s office of the County where they propose doing business the power of attorney and appointment under which they act. They shall also file with the Secretary of State an application to do business in the State of Indiana, naming a resident agent therein. Foreign Corporations must pay a fee of $10 if proportion of its stock represented in Indiana is less than 1,000 shares and one cent a share if in excess of 1,000. Courts and Jurisdiction. Circuit Courts in all counties, original general jurisdiction in all civil causes, original general jurisdiction in all criminal causes, except in the counties of Lake and Marion in which there are criminal courts, probate jurisdiction in most counties, probate exclusive and concurrent jurisdiction in civil matters, also appellate jurisdiction in appeals from Justices of Peace, Mayors of cities and Board of County Commissioners. Superior Courts are established in many counties with original concurrent jurisdiction with the circuit courts in all causes except slander and libel, criminal causes, probate matters and concurrent appellate jurisdiction with circuit courts. Justices of the Peace in all townships, jurisdiction in civil actions for $200.00 or less, in the township, also jurisdic tion in petty criminal causes. Party may confess judgment in Justice's court for $300.00. In actions on written obligations for money of more than one party Justice has jurisdiction in township where either party resides and may issue process to any county In the state for other parties. Supreme Court is highest appellate court and has no original jurisdiction except in a few specified cases. Appellate Court has final appellate jurisdiction in many cases, no original jurisdiction. In some specified classes of cases defeated party may have cause transferred to Supreme Court. Both Supreme and Appellate Courts sit only in Indianapolis. Municipal Court, Marion County (Indianapolis), four judges. Original jurisdiction concurrent with Superior and Circuit Courts in all civil cases founded on contract or tort in which debt or damage or value of property sought to be removed does not exceed $500. Jurisdiction irrespective of value of property in possessory actions between landlord and tenant. Criminal jurisdiction as is now vested in city courts in cities of first class. Jurisdiction in cases involving violation of ordinances of cities and towns or other municipalities. Courts of record within their respective jurisdictions shall have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. Any person interested under a deed, will, written contract or other writings constituting a contract, or whose rights, status or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status or other legal relations thereunder. A contract may be construed either before or after there has been a breach thereof. Any person interested as or through an executor, administrator, trustee, guardian or other fiduciary, creditor, devisee, legatee, heir, next of kin, or cestui que trust, in the administration of a trust, or of the estate of a decedent, infant, lunatic, or insolvent, may have a declaration of rights or legal relations in respect thereto. The court may refuse to render or enter a declaratory judgment or decree where such judgment or decree, if rendered or entered, would not terminate the uncertainty or controversy giving rise to the pro ceeding. All orders, judgments and decrees under this act may be reviewed as other orders, judgments and decrees. (Act March 5, 1927, in effect May 16, 1927). Days of Grace are no longer recognized. Depositions. Depositions may be taken anywhere in the United States without a commission, before any judge, justice of the peace notary public, mayor, or recorder of a city, clerk of a court of record, or commissioner appointed by the court to take depositions. Per son taking deposition must not be of kin to either party or interested In the action. When taken outside of the United States they shall be taken pursuant to an order of the court, under a commission, with such reasonable notice of the time and place of taking the same as the court shall require, and they shall be certified and returned by the commissioner in such manner as the court shall direct. Notice of the taking of the deposition should be served upon the adverse party or his attorney, specifying the cause, the court or tribunal of trial, the time and place of taking, and the names of the witnesses. Reasonable time shall be allowed for the attorney so served to com municate with the client, and for travel to the place of taking, exclud ing the day of service, of the taking and intervening Sundays. The deonent shall be first sworn according to law. He shall then be examined y the party producing him, and then by the adverse party, and then by the officer, if he see cause. The deposition shall be written down by the officer, by the deponent, or by some disinterested person, in the presence and under the direction of the officer, and after the same has been carefully read shall be subscribed by deponent. The following facta shall be stated in a certificate to be annexed by the officer: 1. That the deponent was sworn according to law. 2. By whom the depo sition was written, and if written by deponent or some disinterested person, that it was written in the presence and under the direction of the officer. 3. Whether the adverse party attended. 4. The time and place of taking, and the officer shall sign and attest the certificate, and seal the same, if he have a seal of office. If he have no seal, his certificate shall be authenticated by the certificate and seal of the clerk or prothonotary or any court of record of the county in which certificate shall be authenticated by the certificate and seal of the clerk or prothonotary of any court of record of the county in which the officer exercises the duties of his office. The officer taking the deposition shall seal the same in a sufficient envelope and himself, post, or express, or deliver the same to the clerk, of the court in which the action is pending, endorsing on the envelope the names of the parties and of the court and of the witnesses whose depositions are enclosed. Adjournments may be had from day to day after the deposition has been begun, and for longer periods, upon written con sent of the parties, which written consent must be attached to the deposition. Adjournments should be noted at the place In the deposition when they occur. A narrative form may be used. A witness identifying a written instrument should attach it to his deposition, making it a part of his answer. Descent. The real and personal property of any Intestate shall descend to his or her children equally; and posthumous children Inherit equally with those born before the death of the ancestor. Children of deceased children take the share which would have descended to the father or mother and grandchildren, and more remote descendants, and other relatives, lineal and collateral, inherit by the same rule, excepting that if the heirs are all grandchildren they inherit equally. Where there are no heirs as aforesaid, onehalf of the estate goes to the father and mother as joint tenants, or to the survivor, and the other half to the brothers and sisters, and to the descendants of such as are dead, as tenants in common. If there be neither father nor mother, the brothers and sisters, and the other descendants, take the estate as tenants in common; or. per contra, the father and mother as joint tenants of the survivor. Kindred of the half-blood inherit equally with those of the wholeblood in property purchased by the ancestor; otherwise, as to property acquired by gift, devise, or descent. Illegitimate children inherit from the mother same as if they were legitimate, and vice versa. Tenancy by the curtesy ana dower are abolished, ana widows take one-third of the real estate in fee simple, unless the property is worth over $10,000, in which case, as against creditors, she takes one-fourth only; and where the real estate is worth over $20,000, one-fifth only as against creditors, but as against other heirs she takes one-third in fee simple, regardless of value, except where there is but one child. In which case each inherits one-half. A second or subsequent wife, however, takes only a life estate in her husband's lands, if there be a child or children by a previous marriage, and none by such widow. Other special provisions of the statute are too extensive to set out. The estate of a person dying intestate without kindred capable of inheriting will escheat to the State for the support of the common schools. Dower. (See Married Women.) Executions may issue at any time within ten years after judg ment and are returnable in 180 days. From a court of record may issue to any county in the State. Are a lien on personal property within the county from the time they are placed in bands of officer. f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1781 I 1782 BANKING AND COMMERCIAL LAWS—INDIANA The liens upon personal property attach in the order in which the officer receives them. When levy is upon real estate the dates of the judgment control the right to participate in the proceeds, and they must be applied according to their priority. Personal property taken in execution may be left with execution defendant by the giving to the officer of a delivery bond with sufficient surety; debtor may, by giving sufficient freehold sureties, have a stay of execution on any sum exceeding $100, for six months. Where the sum is less than $100, the stay is not so long, varying with amount of judgment. Lands sold under execution may be redeemed within one year by the owner, mortgagee or person having a lien thereon, the owner tetalning possession during the redemption year and being liable for reasonable rents and profits in case of failure to redeem. Exemptions. Property up to $600 is exempt in suits on contract where debtor is a resident householder. Resident householder Is entitled to exemption as well when in transit with his family and property as when permanently settled. The debtor must file a sched ule of all of his property, and select the property claimed, which is then appraised. Contract waiving exemption is void. Pension money in transit to pensioner is exempt, but when received by him and invested in other property is no more so than any other property. One month's wages also exempt if the debtor is still employed. Fraud. Assignments, in writing or otherwise, of any property made or suffered with intent to hinder, or defraud are void as to the persons defrauded. The question of fraudulent intent is a question of fact. Frauds—Statute of. The following contracts, if enforceable in court, must be in writing and signed by the party to be charged: 1. To charge an executor or administrator, upon any special promise, to answer damages out of his own estate. 2. To charge any person, upon any special promise, to answer for the debt, default, or mis carriage of another. 3. To charge any person, upon any agreement or promise, made in consideration of marriage. 4. Upon any con tract for the sale of land (except loan not exceeding the term of three years). 5. Upon any agreement not to be performed within one year from the making thereof. 6. Sale of goods exceeding $50 in value, unless part payment or part delivery be made. 7. Upon any representation made concerning the character, conduct, credit, ability, trade or dealings of any other person. Garnishment. If at the time an order of attachment issues, or at any time before or afterwards, the plaintiff, or other person in his behalf, shall file with the clerk an affidavit that he has good reason to believe that any person named has property of the defendant in his possession or under his control, which the sheriff cannot attach by virtue of such order; or that he is indebted to the defendant, or has control or agency of any money, property, credits or effects; or that defendant has any shares or interest in the stock of any association or corporation, the clerk shall issue a summons to such person, corpmation, or association, to appear and answer as garnishee in the action. From the service of summons the garnishee is accountable to plaintiff for the money, property, etc., in his hands, or due to defendant. If the summons issues before attachment, the affidavit must show some one of the causes authorizing attachment. The garnishee is required to furnish the sheriff, within five days after service, a certificate of the property, etc., of defendant in his hands or due to him, to be returned with the summons. If he fails or refuses the court may require him to appear and be examined under oath, or proceed against him on default to judgment. If it appear by affidavit that a garnishee is about to abscond before judgment can be had, an order of arrest may issue and he be held to special bail. Return of “No property found’’ on an order of attachment does not affect the proceedings against the garnishee. He may, before judgment against the de fendant, by delivery of all the defendant’s property in his possession to the sheriff, or payment of all money due him to the sheriff, or into court, discharge himself from the suit without costs, and from all liability to the defendant or the money or property so paid or de livered, not exceeding the plaintiff's claim. Clerks of the circuit courts, sheriffs, justices of the peace, constables and all other officers who may collect money by virtue of their office, executors, administrators, guardians, and trustees, are subject to garnishment as other persons. The wages of all householders in the employ of any person or corporation are exempt from garnishment and proceedings supple mental to execution, in the hands of the employer, so long as the employee remains in such employment, not exceeding twenty-five dollars at any one time, and the employee is allowed no other exemption as against garnishment. (Burns’ Ann. S. 1926. § 985.) Applies to householders in other jurisdictions. Resident householders still have six hundred dollars exemption. (Pomeroy v. Beach, 143 Ind. 511.) See also 15, 47, 50, 71, 114. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day) - February 12 (Lincoln’s birthday); February 22 (Washingtons birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day); November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day); and any election day. When any holiday (other than Sunday) comes on Sunday the Monday next succeeding shall be the legal holiday; Saturday afternoon is a legal half-holiday in all cities over 35,000 in population. However, banks may at their option open any legal holiday. Husband and Wife. (See Married Women.) Inheritance Tax. (See Taxes.) Interest. The legal rate is 6 per cent, but interest may be taken In advance. No agreement to pay a higher rate is valid unless the same be in writing, and in such case it is not lawful to contract for more than 8 per cent. When a greater rate is contracted for. the contract is void as to all interest in excess of 6 per cent, is usurious and illegal, and the excess may be recouped by the debtor whenever it has been reserved or paid before the bringing of the suit. Interest on judgments runs from the date of the verdict or finding, at the rate specified in the original contract, not exceeding 6 per cent, and if no contract has been made 6 per cent is allowed. Judgments of courts of record are a lien upon all real estate of defendant within the county for ten years. Judgment may be obtained at the first term of the court, after process has been served on debtor ten days prior to the first day thereof. Judgment in justice court becomes a lien on real estate of judgment defendant! rom time of filing a transcript in office of the clerk of circuit court. A certified copy of any judgment rendered by the District Court of the United States for district of Indiana may be filed with the county clerk. Liens. Liens are granted by statute to attorneys; to persons holding claims against watercraft on account of supplies furnished or work done; also for demands for damages arising out of freight con tracts. or for willfulness or negligence of the master, owner, or agent, or out of any contract relating to transportation, and for injuries to persons or property; also to employes of any corporation as against any of its corporate property or earnings for labor done; also to keepers of livery stables and all persons engaged in feeding stock, for the feed and care bestowed upon the same, also to blacksmiths; also to contractors, sub-contractors, mechanics, journeymen, laborers, and all persons performing labor or furnishing material or machinery for erecting, laboring, repairing or removing any house, mill, manufactory or other building, bridge, reservoir, system of water-works, or other structure, known as a mechanic’s lien; also to bailees and tradesmen for their valid and reasonable charges in the construction, repair, or alteration of any article of value; also to the bailee or keeper of personal property for any feed or care bestowed by him upon such property; special lien for storage or repair of motor vehicles; also to forwarding and commission merchants on goods which may have remained in store for one year or more- also to all persons, firms and corporations engaged in the business of storing, warehousing and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis forwarding, goods remaining in possession of such person, firm or corporation for more than six months may be sold at public auction to pay amount of lien; also to landlords upon crops. Persons storing, furnishing supplies or repairing a motor vehicle or garage owners have lien on motor vehicle which can be foreclosed within one year from failure of owner to pay charges. Judgments rendered in any county in the State are a lien upon the real estate situated in such county for a period of ten years from the rendition thereof and judg ments rendered in the federal courts are a lien upon any real estate In the State for the same period. Provision is made by statute, how ever, for the filing in the county where the real estate is situated of a transcript of any judgment rendered in the United States courts The office of the clerk of the circuit court in each county contains a public record known as the lis pendens record, in which notice of the filing of complaints to enforce liens are required to be recorded, and also in cases where real estate is seized by attachment or execution Unless so recorded the bringing suits does not operate as a constructive notice. Limitations to Suits. Actions for injury to person and cnaracter. and for statutory penalty or forfeiture, two years; against public officers relating to their official duties, and on public improvement assessments, five years; open accounts and contracts not in writing, for use, rents and profits of real estate, injuries to and detention of property, recovery of personal property and relief against frauds, six years: upon promissory notes, bills of exchange and other written contracts for payment of money, ten years; actions not limited bj statute, fifteen years; other written contracts, judgments of courts of record and real actions, twenty years. Revivor: part payment or new promise in writing. Except in favor of sureties, the statute of limitations does not run against the State. Married Women control their real and personal property. The husband is liable for the wife's debts contracted before marriage to the extent of the personal property he may receive from her, and no further, and her lands are liable for such indebtedness. A married woman may devise her separate estate; may sell and transfer her separ ate personal property; carry on any business, labor, or service, and receive the earnings accruing therefrom; enter into any contract In regard to her separate personal estate business, labor, or service, and her separate estate, real and personal, be liable therefor, the same as r femme sole; and her husband is not liable for such debts, nor for indebtedness created by the wife tor improvement of her separate real estate. She can make leases of real estate for terms of three years or less, and execute mortgages to secure purchase money, without husband joining. She is bound by covenants of title in convey ances of her separate real estate. Her deed conveying her real estate her husband not joining, is absolutely void. She may sue as a femme sole Tor any damage to her person or character. She is bound m like manner as principal on her official bond. Disability as to surety ship has been abolished, therefore, in making loans to married women it is not necessary for her to make an affidavit that the money used Is for her own benefit. She is entitled to hold as exempt from execu tion in any suit on contract property to the amount of $600. A widow takes one-third of her deceased husband’s real estate in fee, and free from all demands of creditors, where the estate does not exceed $10,000; one-fourth, if under $20,000, and one-fifth, if above that amount She also takes a child’s interest in the personality where the number of children does not exceed two, and where there are more than two, her interest shall not be less than one-third of the wnole of personalty after payment of debts, and in all cases takes $500 without accounting, and may occupy the dwelling of forty acres of her husband’s land for a year rent free. But the one-third of her real estate which the widow takes in fee, can not, upon her marrying again, be effectively conveyed or mortgaged by her, if there be a minor child or children, or their descendants, alive by the previous marriage. Real estate which husband and wife hold by title made to them as husband and wife, is held as an estate by entirety; it cannot be taken for the debt of either; is not subject to the lien of a judgment against either, except in case of the death of either or upon divorce granted, when the estate is destroyed and becomes subject to levy and sale; and a mortgage thereof by them both for a debt of the husband has no legal validity Mortgages. (See Conveyances.) Negotiable Instruments. Uniform Negotiable Instruments Act adopted 1913. (See complete text of the law following “Digest Banking and Commercial Laws.”) Power of Attorney must be executed and acknowledged, and d for the conveyance of real estate, or to affect real estate) recorded in the same manner that deeds are made. Probate Law. (See Administration of Estates.) Protest. The statutory damages on such protest are 5 per cent on the principal of a bill of exchange, if drawn or negotiated within this State, upon any person, at any place out of this State, but within the United States, and 10 per cent if upon any person, at any place without the United States. Replevin. When any personal property is wrongfully taken or unlawfully detained, or. if taken on execution or attachment, is claimed by a third party, the owner or claimant may bring an action for possession thereof. He may claim immediate delivery upon affidavit therefor, whereupon the sheriff takes possession of the property, and if delivery bond is given on behalf of the defendant within twenty-four hours, the property is returned to him. otherwise the plaintiff may give bond and take the property: failing to do so it is returned to the defendant. The plaintiff has twenty-four hours in which to file bond. Justices of the peace have jurisdiction in replevin suits involving property worth $200 or less. Procedure Is same before justice of the peace, except that the plaintiff must file bond in all such cases. Replevin may also be had without bond, by allowing defendant to retain possession of property pending suit. Suits. (See Actions.) Taxes. The general tax law of Indiana was revised and codified by the acts of 1919. p. 198. Personal property is listed for taxation between the first day of March and the 15th day of May of each year, with reference to t he quantity held or owned on the first day of March in the year for which the property is required to be listed. Realty is listed and assessed by the township assessor. Assessment lists of personal property are filed with the township assessor. From the assessment of the township assessor, an appeal may be taken to the county assessor and the county board of review. An appeal lies from the county board to the State Tax Board. Thereafter illegal taxes will be enjoined by the courts in accordance with the usual rules of law. Valuation. All property must be assessed and valued for taxation purposes at the true cash value thereof. (14034). Liens. Taxes attach as a lien on real estate on March 1 each year. The lien is perpetual and is not divested by any sale or transfer. The first half of taxes becomes delinquent if not paid on the first Monday in May of the succeeding year, and the second half on the first Monday of November following. (14288-95). Sales. If not paid by the first Monday of February following, the property, or so much thereof as may be necessary, will be sold for the payment of taxes and penalty. Sales of real estate for taxes are made on the second Monday in February, annually. (14300-10). Redemption. The property may be redeemed within 6 months by payment of the amount bid at the sale, with 10 per cent penalty: if redeemed after 6 months and within 12 months, the penalty is 15 per cent; after 12 months and within 2 years. 25 per cent; at the expiration of which time the purchaser is entitled to a deed, and no redemption may thereafter be made. But infants and insane persons may redeem within 2 years after removal of their disability. A tax deed may be set aside if any substantial provision of the law has not been complied with, and redemptions are generally favored by the courts, even after a deed has issued. (14311-24). BANKING AND COMMERCIAL LAWS—IOWA Intangibles. Intangible personal property is taxed by means of a stamp tax (Acts 1933, c. 81, as Amended Acts 1935, c. 294). Exemptions. The property of the U. S. and of this state, and the property of any county, city, town or township is exempt from taxa tion. Generally, and under certain conditions, the following property is exempt from taxation: property used for educational, literary, scientific, religious, fraternal, benevolent, or charitable purposes, battle grounds, and other historic sites and public libraries. Ceme teries incorporated under the law of this state, not for pecuniary profit, and certain funds for the care and maintenance of cemeteries, are exempt. Members of the state militia and every soldier and sailor in the service of the U. S. are exempt from paying poll or road tax. All bonds, notes and other evidences of indebtedness issued by the state or by municipal corporations within the state upon which the state or said municipal corporation pays interest are exempt. All bonds authorized by any county or township of the state for the purpose of building or constructing any free gravel or other improved roads are exempt, provided said bonds do not bear a greater rate of interest than 5 per cent. All bonds and other evidences of indebtedness hereafter issued by or in the name of any municipality or other political or civil subdivision of this state, or by or in the name of any taxing district in this state, for the purpose of paying the cost of improvement or maintenance of streets, highways, etc., and other improvements of public benefit, and which bonds, or other evidence of indebtedness are payable from special assessments or special taxes, are exempt from taxation. (14037). Income Tax. A tax is imposed on the gross income of all residents of Indiana and on all income arising from a business conducted on property located in Indiana (Acts 1933, c. 50). Inheritance Tax. (1931, c. 75.) Tax is imposed subject to con ditions and limitations, on all transfers in trust or otherwise of the following property or interests therein or income therefrom: When transfer is from a resident of state, real property situated in state, all tangible personal property except such as has an actual situs without state and all intangible personal property wherever situated; when transfer is from a nonresident, all real and personal property within jurisdiction of state. The following transfers are taxable: By will; by statute regulating descent; made in contemplation of death of transferor, if made within two years, it is presumed to be in contemplation of death, in absence of contrary showing, made by gift or grant to take effect in pos session or enjoyment after death of transferor; made in payment of debt created by antenuptial agreement by its terms payable by will or contract at or after death. If transfer is for a valuable considera tion; except love and affection, no tax is imposed on the value up to the money value of the consideration received by the transferor, but the excess is taxed. Where property is held in joint names of two or more persons as joint tenants or otherwise, except real estate held by entireties, or is deposited in banks, etc., in joint names and pay able to survivor or survivors, exercise of right of survivor or sur vivors is a taxable transfer; except such as may have belonged origi nally to survivor or survivors and never have belonged to decedent. Proceeds of insurance on decedent’s life, payable to his estate, are taxed; but insurance payable to some other person and not a part of decedent’s estate is not taxed. A transfer by deed of trust (before or after enactment of statute) wherein trustor reserved to himself any income or interest, or reserved powers of revocation, alteration or amendment, on exercise of which property would revest in him, is taxable on his death to extent of value of property subject to such powers and as to which such powers have not been exercised. Prop erty transferred to executors or trustees in lieu of commissions, allow ances or fees, is taxable on excess over commissions, etc., which would be payable in absence of any such transfer. Rates of tax and exemptions vary according to relationship of beneficiary and amount of transfer, as follows: Class A. Husband, wife, lineal ancestor or descendant, legally adopted child and child to whom transferor stood in acknowledged relationship of parent and child for not less than ten years prior to transfer. EXEMPTIONS Wife......................................................................................... $15,000 Child under 18 years of age........................................ 5,000 Other members of Class................................................ 2,000 RATES 1 per cent not exceeding............................ $25,000 2 per cent.......................................................... 25.000 to $50,000 3 per cent.......................................................... 50,000 to 200,000 4 per cent.......................................................... 200,000 to aoo.ooo 5 per cent.......................................................... 300,000 to 500,000 6 per cent.......................................................... 500,000 to 700,000 7 per cent.......................................................... 700,000 to 1,000,000 8 per cent.......................................................... 1,000,000 to 1,500,000 10 per cent.......................................................... Over Class 15. Brother, sister, or a descendant of a brother or sister. a wife or widow of a son, or the husband of a daughter. Exemption. $500. RATES 5 per cent not exceeding..............................................$100,000 8 per cent.......................................................................... 100,000 to $200,000 10 per cent.......................................................................... 200,000 to 500,000 12 per cent.......................................................................... 500,000 to 1,000,000 15 per cent.......................................................................... Over Class C. All others. Exemption. $100. RATES 7 per cent not exceeding.............................................. $ 100,000 10 per cent.......................................................................... 100,000 to $200,000 12 per cent.......................................................................... 200.000 to 500,000 15 per cent.......................................................................... 500,000 to 1,000,000 20 per cent.......................................................................... Over Rates above stated apply to entire transfer in excess of exemption. Following transfers are entirely exempt: To U. S., any state or territory or political subdivision thereof, or any corporation, in stitution, association or trust formed for charitable, educational or religious purposes, provided property is to be used exclusively for such purposes in Indiana. Tax is imposed on full, fair cash value of property, subject to exemptions above stated in case of transfers by will or intestate laws. Tax is payable at time of transfer and is a lien against the land Trustees, executors or administrators of estates are personally liable for the tax. Tax is determined by any court having probate jurisdiction, on appraisement by county assessor, or by inheritance tax appraiser in counties of 400,000 or more population. Provision is made for notice of appraisement, hearing upon report and rehearing to persons in terested or State Board of Tax Commissioners. The Board may move for a rehearing within 2 years after entry of delivery by the court if they believe appraisement was fraudulently, collusively, or erroneously made. Tax on resident decedent’s estate is payable to treasurer of county where court having jurisdiction is situated. If paid within 1 year after accrual, deduction of 5 per cent is allowed; if not paid within 18 months, interest at 10 per cent from date of accrual is assessed. Determination of tax on taxable transfers from nonresidents is under exclusive jurisdiction of Tax Commissioners. Appeal from appraisement lies to Marion county circuit court. Tax is payable to State Board of Tax Commissioners. Taxes erroneously assessed may be refunded on order of State Auditor and approval of Tax Com missioners. Person or institution permitting stock or personal prop erty or securities to be transferred without consent of Tax Com missioners is liable for the tax and subject to penalty of not more than $1,000 in addition. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1783 In case of contingent or expectant estate where taxes are not. presently payable, Tax Commissioners and Attorney General may enter into agreement with trustees, executors or administrators to compound taxes and grant discharges therefor. If agreement cannot be reached, tax is held in abeyance and trustees, executors or admin istrators must give bond for prompt payment. State Board of Tax Commissioners is charged with enforcement of the act and will provide forms required. W'ills. No will except a nuncupative will shall affect any estate unless it be in writing, signed by the testator or by someone in iiis presence, with his consent, and subscribed in his presence, by two or more competent witnesses in the presence of each other. A will made before marriage becomes void on marriage of testator. No nun cupative will shall be valid when more than the value of $100.00 is bequeathed, nor unless it is made in the last sickness of the testator, and the subject thereof be reduced to writing within fifteen days after it shall have been declared and proved by two competent witnesses who shall have heard the testator, in effect, request some of those present to bear witness thereto; and no such nuncupative will shall be proved after six months from the death of the testator, nor until his widow and heirs shall have reasonable notice of the time and place of proving the same Any soldier or sailor in actual service may dispose of his persona) estate, in his actual possession, and his wages, by a nuncupative will. Any person may contest the validity of any will or resist the probate thereof at any time within one year after the will has been offered for probate. Upon the death of any testator any person interested in any Dart of the estate specified in the will may have the will probated. A will in writing shall be proven by one or more ox’ the subscribing witnesses, or, if they be dead, out of the state, or have become incompetent from any cause since attesting the will, then by proof of the handwriting of the testator or of the subscribing witnesses thereto. SYNOPSIS OF THE LAWS OF IOWA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Maxwell & Ryan, Attorney* at Law. Suite 912 Valley National Bank Bldg., Des Moines, Iowa (See Card in Attorneys’ List.) Accounts. In all instances where any sum of money is claimed on an account, the same must be itemized. If suit is brought on such an account the items thereof must be consecutively numbered and the account must be sworn to. Such a sworn statement of account together with a petition which has been likewise sworn to, constitutes a prima facie case enabling the creditor to take judgment thereon in the event the debtor is unable to disprove the items. Acknowledgments. All instruments affecting real estate, includ ing mortgages, deeds of trust, powers of attorney relating thereto, and leases for more than one year, must be acknowledged or the execution thereof proved and the instruments must be recorded in the proper office, in order to affect third parties. The same is also true as to bills of sale of personal property. Conditional sales contracts or leases must be signed by both vendor and vendee, or lessor and lessee and acknowledged by one of them, and must be filed the same as chattel mortgages (see Chattel Mortgages). Articles of incorporation must also be acknowledged and recorded. Forms of acknowledgments are prescribed by statute, and must be substantially as follows: I. In the case of natural persons acting in their own right: State of................................. 1 County of............................ J On this day............ of............. A. D. 19... before me,................................ (Insert title of acknowledging officer).................to me known to be the person. . named in and who executed the foregoing instrument, and acknowledged that............ executed the same as............. voluntary act and deed. Notary Public in and for said County 2. In the case of natural persons acting by attorney: State of................................. j County of............................ j On this.............day of............... A. D. 19.., before me................................. (Insert title of acknowledging officer).............. personally appeared. . . . to me known to be the person who executed the foregoing instrument in behalf of..................................and acknowledged that he executed the same as the voluntary act and deed of said............................................. Notary Public in and for said County 3. In the case of corporations or joint stock associations: State of.................................1 County of............................ J On this............ day of............. A. D., 19.., before me, a.... (Insert title of acknowledging officer)............ , in and for said county, person ally appeared...................................... to me personally known, who being by me duly (sworn or affirmed) did say that he is............ (Insert title of executing officer)............ of said (Corporation or association)............. that (the seal affixed to said instrument is the seal of said) or (no seal has been procured by the said) (corporation or association) and that said instrument was signed and sealed on behalf of the said (corporation or association) by authority of its board of (directors or trustees) and the said..............................................acknowledged the execu tion of said instrument to be the voluntary act and deed of said (corporation or association) by it voluntarily executed. Notary public in and for said County (In all cases add signature and title of the officer taking the ac knowledgment, and strike from between the parentheses the word or clause not used, as the case may be.) Actions. The common law forms of pleading are not used, although the common law forms the basis of procedure. Pleading, practice, and procedure are statutory, and accord, in the main, with what is known as the reformed, or code procedure. Administration of Estates. When an executor is not appointed by will administration shall be granted to any suitable person or persons on the request and application of: 1. The surviving spouse. 2. The next of kin. 3. Creditors. 4. Any other person showing good grounds therefor. To each of the above classes in succession, a period of 20 days, commencing with the burial of the deceased, is allowed within which to apply for administration. A special administrator may be appointed to preserve property if for any reason general administration cannot be immediately granted. Administration shall not be originally granted after 5 years from the death of the decedent. Claims against the estate of a deceased person are payable in the following order: 1. Charges of the last sickness and funeral of the deceased. 2. Any allowance made by the court for the maintenance of the widow and minor children. 3. Debts entitled to preference under the laws of the U. S. 4. Public rate and taxes. 5. Claims filed within 6 months after the first publication or posting of the notice 1784 BANKING AND COMMERCIAL LAWS—IOWA given by the executors or administrators of their appointment. In this class, claims for labor performed within the next preceding 90 days of the death of decedent are preferred. 6. All other debts. 7. Legacies and the distributive shares, if any. All claims of the sixth of the above classes not filed and allowed, or if filed and notice thereof not served within 12 months from the giving of the notice of appointment are barred, except as to actions against decedent pending in the district or supreme court at the time of his death or unless peculiar circumstances entitle the claimant to equitable relief. Affidavits. Affidavits may be taken before any person authorized to administer oaths in the state where taken. If taken without the State of Iowa, the official character of the officer administering the oath should be evidenced id the same wav as the official character of an officer caking depositions. (See Depositions.) Affidavits may be taken within the State for any lawful purpose, of one unwilling to voluntarily make an affidavit, by filing a petition with an officer author ized to administer oaths, who may cause the person to come before him and make affidavit. This proceeding is statutory and must con form strictly to the statutes of Iowa. Affidavits for proving accounts and form: State of............................. County of.................... ss, I..................... being first duly sworn, on oath depose and say that I am (a member of the firm of.....................and that said firm is) the owner of the account hereto attached, marked exhibit A, and made a part hereof, that the same is correct in all particulars and that the articles named therein were sold and delivered to said.................... at the prices and times therein named and agreed upon, and that said articles were reasonably of the value charged, and that the said account is due and unpaid. That there is no legal set oil or credit to the same or any part thereof except as herein stated. Subscribed and sworn to before me, by the said.....................this.... day, etc. Aliens. Non-resident aliens or corporations incorporated under the laws of any foreign country or corporations organized in this country, one-half of the stock of which is owned or controlled by non resident aliens are prohibited from acquiring title to or holding any real estate in Iowa, but the non-resident alien widow, heirs, or devisees of an alien or naturalized citizen may hold the same for twenty years, and if not sold within that time, escheats to the State. Aliens may acquire property of any kind within a city or town or lands not exceed ing 320 acres or stock in any corporation for pecuniary profit and may alienate or devise the same, but this law does not affect personal property. A lien holder may acquire title to the property embraced in such lien but real estate so acquired must be sold within ten years after title is perfected in an alien, otherwise it will escheat to the State. Arrest. No person can be imprisoned for debt on either mesne or final process, unless in case of fraud. Debtors, however, may be ordered to appear before a court of record wherein a judgment has been rendered, and if the debtor is about to leave the State, or conceal himself, he may be arrested and compelled to give bond to appear before the court for examination, and in the meantime, not dispose of his property. (See Supplementary Proceedings.) Assignments and Insolvency. General assignments not valid unless for benefit of all creditors, when assent of creditors is presumed. The debtor must annex to the instrument of assignment a sworn Inventory and list of creditors; and such instrument must be acknowl edged and all of the papers recorded like a deed of real estate. The assignment vests in the assignee title to all property of the debtor. Assignee must give bonds, prepare a verified inventory and valuation, and notify creditors by mail to file claims within three months. All claims not filed within three months after notice published or within such extended time as the court grants, not exceeding nine months, including claims not yet due, can not be paid until all claims filed within said time are paid. An assignment does not discharge the debtor from his debts and liabilities, but only entitles creditors to share equally in his estate. All claims filed must be itemized and sworn to. Attachments. An attachment, auxiliary to the ordinary pro ceedings may be sued out at the commencement or during the progress of the proceeding if the petition is sworn to and states one or more of the following grounds: 1. That the defendant is a foreign corporation or acting as such. 2. That he is a nonresident of the state. 3. That he is about to remove his property out of the state without leaving sufficient remaining for the payment of his debts. 4. That he has disposed of his property in whole or in part, or is about to do so, with intent to defraud his creditors. 5. That he has absconded so that the ordinary process cannot be served upon him. 6. That he is about to remove permanently out of the county, or state, and has property therein not exempt from execution and that he refuses to pay or secure the plaintiff. 7. That he is about to remove his property or a part thereof out of the county with intent to defraud his creditors. 8. That he is about to convert his property or a part thereof into money for the purpose of placing it beyond the reach of his creditors. 9. That he has property or rights in action which he conceals. 10. That the debt is due for property obtained under false pretenses. Property of debtor may be attached for debt not yet due if his petition states one or more of following grounds: 1. That defendant is about to dispose of his property with intent to defraud his creditors. 2. That he is about to remove or has removed from the state, and refuses to secure the payment of the debt when it falls due, and which removal or contemplated removal was not known to the plaintiff at the time the debt was contracted. 3. That the defendant has dis posed of his property in whole or in part with intent to defraud his creditors. 4. That the debt was incurred for property obtained under false pretences. Special attachments are permitted in certain cases. On all above cases the plaintiff must file a bond in a penalty at least double the value of the property sought to be attached. Banks and Banking. Savings banks and trust companies may be formed by not less than five persons of lawful age, a majority of whom shall be citizens of the state. The minimum paid up capital depends upon the population of the city wherein the bank is located. Ten thousand dollars paid up capital stock is required for towns having a population of 3000 or less. In cities and towns having a population from 3000 but not exceeding 0000, $25,000 is the minimum. 6000 to 15,000, not less than $50,000. Over 15,000, $100,000 minimum. At least three-fourths of the directors must be citizens of this state and all must be shareholders. No banking institution organized under the laws of this state shall declare or pay any dividend until it has first established a surplus of at least twenty per cent of its capital except dividends required to be paid on Class “A” preferred stock held by K. F. C. Whenever such banking institution has created a surplus of twenty per cent, it shall credit to surplus from net earnings not less than 10 per cent thereof each year until a surplus of fifty per cent of the capital has been created. Thereafter each such institution shall maintain a surplus equal to at least fifty per cent of its capital, and any reduction of said surplus shall be restored in the same manner as originally created as provided herein. Bank drafts are preferred claims against the assets of the State, Savings Bank or Trust Companies issuing them. (Does not apply to private banks.) State banks, savings banks, and trust companies have a prior lien on their debtors' shares of stock for all obligations to the bank subject, however, to loans against the stock which the bank has acknowledged by written notice. State and savings banks and trust companies have power when so authorized by their articles of incorporation, to act as assignee or trustee by deed and guardian, executor, or trustee by will or to be appointed receiver, assignee, guardian, administrator or other trustee by any court of record in this state: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis National banks may exercise the same powers when so authorized by any law of the United States. Any state, savings bank or trust company, may become a member of the Federal Reserve System. It Is unlawful for any officer or employee of any bank or trust company to offer for sale or promote the sale of any stock, real estate, life insurance, fire insurance, bonds or other securities, unless the sale of the same shall have been sanctioned and approved by the Board of Directors and such approval entered of record. It is a misdemeanor for any officer or employee to violate the above. The president and cashier of every savings bank and every state bank shall cause to be kept at all times, a full and correct list of the names and residences of the officers, directors, examining committee and all the stockholders of the bank. This list shall also show the number of shares held by each. Such lists shall be subject to the inspection of all the stockholders and creditors of the bank during business hours of every day in which business may be legally trans acted. The president and cashier shall verify by oath a copy of the list and send the same to the Superintendent of Banking within ten days after each annual meeting. And the Superintendent may, if he desires, require the president or cashier to furnish him with financial statements of the stockholders. In the event any state bank, savings bank or trust company holding a charter to transact business within the state fails to transact business or perform the duties imposed on it by the banking law, such charter may be cancelled on proper hearing by the District Court. No person shall be eligible as a director of any savings or state bank or trust company unless such person owns shares of stock in that bank as follows: (a) In banks whose capital is less than $30,000 he must hold at least $200 worth of stock at par value. (b) In banks having a capital of $30,000 or more he must hold and own at least $500 worth of stock at par value. No state bank, savings bank or trust company shall pay interest on savings accounts or certificates of deposit or any other time deposit at a rate greater than 4 per cent per annum payable semi-annually. No interest in any event shall be paid upon such time deposits for any period less than three months. If, however, there are any savings accounts or time deposits bearing Interest at a rate greater than 4 per cent the same shall be considered borrowed money and shall be so reported to the superintendent of banking. Before any director of a state bank, savings bank, or trust company acts as such, he must take an oath that he will diligently, faithfully, and impartially perform the duties imposed upon him by law. That he will not violate nor permit to be violated any of the banking law, and that he is a bona fide holder in his own right of the number of shares required to be owned by him. and that the same have not been hypothecated. The Board of Directors must hold at least one meeting each calendar month. The State Superintendent of Banking may require, if in his opinion it would promote the banking industry to do so, that un secured loans in amounts exceeding $500, shall not be made except where the borrower submits a financial statement. No executive officer of any bank or trust company shall use directly or indirectly any money of the bank in excess of 10 per cent of the capital and surplus. Nor shall the total amount loaned to all executive officers of the bank exceed 25 per cent of the combined capital and surplus. No such loans can be made unless the same shall first be approved in writing by a majority of the board of directors, exclusive of the party borrowing. If any bank officer certifies a check In excess of the balance on deposit or issues a certificate of deposit when the full amount has not been deposited, he is guilty of a misdemeanor. No officer of any bank shall have power to pledge or hypothecate any obligations owned by the bank unless authorized to do so by a resolution of the board of directors. Any pledging or hypothecation without such authority is void and the party guilty is liable for imprisonment up to twenty years. All officers and employees of any bank having the care or custody of any funds or securities of the bank must furnish a bond subject to the approval of the board of directors. Any person knowingly issuing a false financial statement to a bank with intent to defraud respecting his financial condition, shall be guilty of a misdemeanor. All stockholders of savings and state banks shall be individually liable to the creditors of such corporations, over and above their stock to an amount equal to their respective shares, for liabilities accruing while they remained such stockholders. Whoever maliciously or with intent to deceive, makes or circulates any false report concerning any bank which tends to impute an unsound financial condition of the bank or cause a general withdrawal of deposits, shall be guilty of a felony and subject to fine and im prisonment. When any legal holiday falls on Sunday the following Monday shall likewise be a legal holiday as far as banks are concerned. Banks may with approval of Superintendent of Banking establish offices in their own county or in counties contiguous to the one in which the bank is located only for the purpose of receiving, depositing, paying checks, and performing other clerical and routine duties in connection therewith. The superintendent of banking upon application of the officers or directors of any state bank, savings bank, or trust company, or private bank doing banking business and consent of the executive council, or the governor or lieutenant governor, shall have power to take over the management of any such bank for a period not exceeding two years unless special consent to operate for a longer period is given by the executive council. The remedies at law or in equity of any creditor or stockholder against any such bank or trust company are suspended and the statute of limitations tolled during the period managed by the superintendent of banking. The governing board of any county, city, town, township, or school district, in its discretion may enter into depositors' agreements of unsecured and unpreferred claims for the reorganization, re-opening, or consolidation of the bank. The banking department, with the approval of the governor may designate what the officers, directors, and stockholders should be re quired to pay if the bank is reorganized. Preferred stock issued by any bank or trust company in this state shall be included in determining whether such banking institution has complied with the minimum capital requirements provided by law for banking institutions. Banks, as depositories of public funds, must pay to the State Treasurer as custodian of the State Sinking Fund for Public Deposits, interest thereon not exceeding two per cent and not less than one per cent on ninety per cent of average daily balance, except the months of April and October, the rate to be fixed by the Treasurer of State subject to approval of Executive Council. State banks, savings banks and trust companies may make loans pursuant to Titles I and II of the National Housing Act or amend ments thereto, and invest in mortgages insured and in debentures issued by the F. H. A. and invest in capital stock and securities of national housing associations or similar credit institutions. Any banking institution is empowered on the authority of its board of directors or majority thereof, with the approval of the Superin tendent of Banking, to enter into contracts, incur obligations and perform any other acts necessary to take advantage of membership in the F. D. 1. C. The F. D. I. C. is authorized to make examination of banking institutions incorporated under the laws of the State of Iowa BANKING AND COMMERCIAL LAWS—IOWA The taxable value of shares of stock in a state bank, savings bank or trust company shall be of the assessed value and shall be taxed as moneys and credits. Surplus and undivided profits after deduction of real estate, is also taxable as moneys and credits. Bills of Exchange. The uniform negotiable instruments law is in effect in Iowa. Blue Sky Law. A complete system of law for the regulation of the sale of securities known as the “Iowa Securities Law’’ is now In force. This act applies to sales and purchases within the State of Iowa of stocks, bonds, notes, debentures and practically all other evidences of indebtedness. A copy of this law in pamphlet form as well as all necessary blanks, etc., may be obtained free on application to the Secretary of State. Chattel Mortgages. No sale or mortgage of personal property, where the vendor or mortgagor retains actual possession, is valid against existing creditors or subsequent purchasers without notice, unless a written instrument conveying same, be executed acknowledged like conveyances of real estate, and such instruments, or a duplicate thereof duly recorded, or filed and deposited with the recorder of the county where the property shall then be situated or if the mortgagor be a resident of the state, then of the county where the holder of the property resides. No encumbrance of personal property which may be exempt from execution by the head of a family if a resident of the State shall be of any validity unless the same be by written instru ment and unless the husband and wife concur in and sign the same Joint instrument. Collateral Securities. There are special statutory provisions concerning the pledging of corporate stock, as security; and also upon the subject of sales of collaterals by action in court and judicial sale. Otherwise the subject is governed by the common law. Conditional Sales. No sale, contract, or lease wherein the transfer of title or ownership of personal property is made to depend upon any condition, shall be valid against any creditor or purchaser of the vendee or lessee m actual possession, obtained in pursuance thereof, without notice, unless the same be in writing, executed by the vendor and vendee, or by the lessor and lessee, acknowledged by the vendor or vendee, or by the lessor or lessee, and recorded or filed and deposited the same as chattel mortages. Conveyances. No particular form is necessary for conveyances or mortgages. The name of the parties, the description of the property, the consideration, the date, signature, and acknowledgment, is all that is necessary; as between the parties they are valid without being recorded. The wife must join with her husband in conveyances, and a conveyance of the homestead is of no validity unless husband and wife concur in and sign the same joint instrument. A corporation executes conveyances under its corporate seal, except where the corporation has not adopted a seal. Such conveyances must be signed In the name of the corporation by the officers authorized so to do, by the Articles of Incorporation, or By-Laws, or by resolution duly entered of record in the minutes of the corporation, and duly acknowl edged by such officers, as the act of the corporation. The legislature has by statute approved the foil owing forms: 1. Quit claim deed. For the consideration of $................ I hereby quit claim to................... all my interest in the following described tract of real estate: (De scribing it.) 2. For a Deed conveying fee simple without warranty: For the consideration of $..................I hereby convey to......................... the following tract of real estate (Describing it.) 3. For a Deed conveying fee simple with full warranty: add to number 2 the following: And I warrant the title against all persons whomsoever. 4. For a Mortgage; add to number 2 the following: To be void upon condition that I pay, etc. Of course, the above instruments must be signed by the grantor, and if he is married his wife must also sign to convey her dower Interest. If it is desired that any of the above instruments be recorded, then the same must be acknowledged. Corporations. Private corporations, sole or aggregate, may be formed for any lawful purpose. But there are special statutory provisions which must be complied with for the organization and government of insurance, banking, loan and trust, building and loan, and railway corporations. In all cases, the articles of incorporation must be acknowledged and recorded, in the manner provided by law, and approved hy the secretary of state. With a few exceptions, an incorporation fee of $25. plus $1 for each thousand dollars of capital in excess of $10,000 must be paid, upon the organization or renewal of a private corporation. The general term of the life of a private corporation is twenty years, renewable for a like term. Railroads, savings banks, and a few others may last fifty years, also renewable. Foreign corporations must obtain a permit to do business in the state. The statute provides in detail what the application shall contain, and must pay to the Secretary of the State a fee of $25 upon $10,000 or less of money and property of the company actually within the State, and $1.00 for each $1,000 of such money or property within the State in excess of $10,000. No foreign stock corporation doing business in this state shall maintain any action in this state upon any contract made by it in this state, unless prior to the making of such contract it shall have procured such permit. This prohibition shall also apply to any assignee of such foreign stock corporation and to any person claiming under such assignee of such corporation or under either of them. The Articles of Incorporation may prescribe any figure aB the par value of each share of stock, or the stock may be issued, “Without Par Value.” Courts. Terms and Jurisdiction. The district court has jurisdic tion of all actions, civil and equitable, and has criminal and probate Jurisdiction. Superior courts may be established by the vote of the people In any city of 4,000 inhabitants. It has jurisdiction to try all violations of city ordinances, and the same criminal jurisdiction as justice of the peace courts. It has jurisdiction to try and determine civil and criminal appeals and civil writs of error from justices of the peace, situated in the township where the court is located. Has the same jurisdiction as the district court to try all suits in law and equity, except grant divorces, alimony, and separate maintenance, and it has no probate jurisdiction. Transcripts from superior and Justice’s courts must be filed in district court to create a lien on real estate, and are then enforced as judgments of the district court; Justice's jurisdiction, $100, or, by written consent of parties, $300. The supreme court has only appellate jurisdiction and holds sessions at Des Moines, January to May, from May to September (less vaca tion). and from September to December. Municipal Court may be established by the vote of people in cities of 5,000 inhabitants. It has jurisdiction to try all violations of city ordinances, and the same criminal jurisdiction as Justice of the Peace court, and exercise the jurisdiction conferred on the District Court for the trial of misdemeanors. It has concurrent jurisdiction with the District court in all civil matters involving $1,000 or less, but has no Jurisdiction to grant divorces, alimony or separate maintenance, and has no probate jurisdiction. Transcripts must be filed In District Court to create a lien, and appeals are taken direct to the Supreme Court. Days of Grace. Every negotiable Instrument is payable at the lime fixed therein without grace. Depositions may be taken within the State, on notice, and within or without the State, on commission, issued after notice bv the clerk of the proper court. When to be taken on commission, defendant may elect, in writing, duly served, to cross examine orally; thereupon plaintiff may also elect in writing to examine orally. Exceptions https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1785 must be filed within three (3) days, after the filing of the deposition, but objections may nevertheless be made on the trial for competency, materiality, and relevancy. Descent and Distribution of Property. Subject to rights of dower and other charges thereon, and burdens imposed during the lifetime of the decedent, and in the absence of a valid will, the estate of one deceased shall descend in equal shares to his children. The heirs of any deceased child shall inherit in same manner as though such child had outlived his parents. If the intestate leave no issue the whole of the estate to the extent of $7,500 after payment of debts and administration expense, and one-half of the estate in excess of said $7,500 goes to the surviving spouse and the other half to the parents. If no surviving spouse, the whole thereof shall go to his parents or the survivor of them; and so on through ascending an cestors and their issue, if both parents be dead. Personal property not necessary to pay debts is distributed to the same persons, and In the same proportions as though it were real estate. Dower. Dower in Iowa is abolished, but the surviving spouse Is entitled to one-third in value of all the legal and equitable estates In real property possessed by the deceased spouse at any time during the marriage, which have not been sold on execution or any other Judicial sale, and to which such survivor has made no relinquishment of right. A spouse, heir or devisee feloniously taking or procuring the taking of the life of the other spouse, or decedent, cannot have dower or inherit power or take under the will of the decedent. (See Limi tations.) Employers Liability. Employers liability and workmen’s com pensation Is governed by statute. Executions may be stayed, according to their amount, for ninety days or six months, with a few specified exceptions, and the issuance of execution may be prevented by filing an appeal bond. Otherwise execution may issue immediately after rendition of judgment. The Judgment Is a lien on realty within the county where rendered, or by transcript, it may be made a lien in any other county. Executions become liens on personal property only from the time of the levy and seizure. Real estate is sold on execution subject to redemption within one year, except in appealed cases, or where the interest is a leasehold of two years or less. Creditors having liens, may redeem from the sale after six months and before nine months from date of sale. Per sonal property is sold without redemption. Exemptions. The head of a family Is entitled to a homestead of forty acres or less of farm land or half an acre or less in a city or town. When a debtor absconds and leaves his family, such property as is exempt to him shall be exempt in the hands of his wife and children or either of them. The statute provides for numerous exemptions of personalty to the head of the family including: 1. The proper tools. Instruments or books of the debtor, if a farmer, mechanic, surveyor, clergyman, lawyer, physician, teacher, or professor, except that no motor vehicle shall be held exempt from any order, judgment or decree for damages occasioned by the use of said motor vehicle upon a public highway of this state. None of the above articles are exempt for the purchase price thereof. 2. All money received by a person as pension money whether deposited loaned or invested by him. 3. Earnings for his personal services at any time within 90 days next preceding the levy. 4. Any compensation due or may become due under the workmens compensation act. 5. Until March 1st, 1937 livestock, farm products, or farming utensils and machinery, or other property, household goods of his own selection not exceeding in value the sum of $100.00 whether said exemption be waived or not by such debtor, all of his own selection, in an aggregate value of not to exceed $500,00. A policy of insurance on the life of an individual, in the absence of an agreement or assignment to the contrary shail inure to the separate use of the husband or wife and children of the said individual independently of all his creditors. The proceeds of an endowment policy payable to the assured on attaining a certain age shall be exempt from liability for any of his debts. Any benefit or indemnity paid under an accident policy shall be exempt to the assured, or in case of his death to the hus band or wife and children of the assured, from his debts. The avails of all policies of life or accident insurance payable to the surviving widow shall he exempt from liability for all debts of such beneficiary contracted prior to the death of the assured, but the amount thus exempted shall not exceed $15,000.00. There are statutory provisions concerning the creation of liens on exempt real or personal property and the assignment of exempt wages. There is no exemption to debtor under a decree for the support of minors. Nor is there any exemption for the payment of alimony unless the party in whose favor the decree was rendered remarries. Fraud. In actions for fraud, heretofore solely cognizable in a court of chancery, the cause of action shall not be deemed to have accrued until the fraud complained of shall have been discovered by the party aggrieved by the exercise of due diligence. In actions brought by a Judgment creditor to set aside a fraudulent conveyance of property from one spouse to the other and to subject said property to execution, either husband or wife may be compelled to testify against the other. Gross fraud is punishable by fine or imprisonment. Garnishments. (See Attachments.) Husband anil Wife. (See Married Women.) Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 12 (Lincoln’s birthday); February 22 (Washington’s birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); general election day; Novem ber 11 (Armistice Day); Thanksgiving Day: December 25 (Christmas Day). For all purposes relating to the presentation for payment or acceptance, and for the protesting and giving notice of the dis honor of bills of exchange, drafts, bank checks, orders and promissory notes, and bank or mercantile paper falling due on any of the above named dates, shall be considered as falling due on a succeeding business day. Interest. By written contract, maximum legal rate, 7 per cent. Judgments draw 5 per cent, or such rate as is fixed by the contract on which the judgment or decree is rendered, not exceeding 7 per cent per annum. Open accounts draw 5 per cent after six months from date of last item; money loaned, money due. money due on settlement of accounts, bear interest at 5 per cent per annum. Con tract for more than 7 per cent forfeits all interest and costs. Judgments in the district and superior courts may be obtained at first term after suit commenced, if undefended; an equitable action, except one for foreclosure of mortgage, or mechanic’s lien or for divorce, is triable at the second term after the case is at issue. Judgments of the district court are liens on real estate owned by the debtor at the time of rendition, if the lands lie in any other county, from the time of filing therein an attested copy of the judg ment. Lien also covers all lands which defendant may acquire within ten years from date of judgment, or upon which a levy Is made after ten or before twenty years from the date of the judgment, but this lien dates only from the time of the levy. Judgments of superior courts and justice of peace courts become liens on real estate by filing transcript in district court within county where obtained, and become liens in other counties in the same manner as if rendered In the district court. A judgment in an action for the foreclosure of a real estate mortgage or deed of trust or in any action on a claim for rent or judgment as signed by the receiver of the closed bank, or rendered upon credits assigned by the receiver of the closed bank, when the assignee is not a trustee for the depositors or creditors of the bank cannot be enforced nor execution issued thereon and no force or validity is given thereto except for the purpose of set off or counterclaim after the expiration of a period of two years from the entry thereof unless a voluntary written stipulation of the parties continuing it in force for a longer period is filed in the case. 1786 BANKING AND COMMERCIAL LAWS—IOWA Liens. These are mainly created by statute and are enforceable In equity. In a few cases, and under peculiar circumstances, equitable liens on real estate are established and enforced in equity. Limitations. Actions, according to their subject matter, have various periods of limitation, fixed by statute, extending from three months to ten years after the cause of action accrued. Actions upon judgments rendered in courts of record have a limitation of twenty years. There are special limitations barring action for interest in real estate based on defective trustees, guardians, administrators, executors and sheriffs deeds; also as to other defects in the title to real estate. Married Women may own in their own right, real and personal property, and may manage, sell, convey, and devise the same by will. Neither husband nor wife is liable for the debts or liabilities of the other incurred before or after marriage, nor are the wages, earnings, or property of either liable for the separate debts of the, other. Contracts may be made by a wife, liabilities incurred, and enforced by or against her, as if unmarried. Both husband and wife are liable for the reasonable and necessary expenses of the family, and the education of the children. Mortgages. Mortgages must be subscribed and acknowledged by the parties creating the lien and recording the same as deeds. The wife should join in the instrument, except mortgages for purchase money, and mortgages upon non-exempt personal property. When a mortgage is paid off, satisfaction thereof must be made on the margin of the record, or by a satisfaction piece, acknowledged and recorded. If no such satisfaction is entered within 30 days after request in writing, the mortgagee forfeits $25.00. The mortgagor has one year in which to redeem real estate after execution sale except where the period of redemption has not expired, the owner may make application to the court where the action was brought for an order that no sheriff’s deed shall issue until March 1st, 1937. The owner is entitled to possession and exclusive right to redeem during this period and the court in its discretion may appoint a re ceiver. The income shall be paid to the Clerk of the District Court to be applied in the following order: 1. Cost of Receivership; 2. Payment of taxes due and to become due during receivership; 3. To pay the insurance on buildings on the premises or such other benefits to the real estate as may be ordered by the court; 4. The balance shall be paid and distributed as determined by the court. (See execu tions, chattel mortgages, limitations.) Negotiable Instruments. Uniform Negotiable Instruments Act adopted April 12, 1902. (See complete text of the law following “Digest of Banking and Commercial Laws.”) Non-residents. Action may be brought against non-residents to enforce liens on any property within the state; to enforce any debt against a non-resident where action is aided bv attachment on prop erty found within the State. Personal judgment cannot in any case be rendered against defendants, not appearing, unless personal service is had on such defendants within the State. Non-residents may not sell at auction unless reciprocal legislation exists in the state of their residence. Notaries. These officers are appointed and commissioned by the governor, upon filing a bond and paying the fee required by law. They have power to administer oaths, take depositions, and the usual power of such officers concerning presentation, demand, protest, and notice of protest of negotiable commercial paper, only within the county in which commissioned. All notarial commissions expire July 4, 1935 and are renewable for three year periods commencing with that date. Partnerships, Limited and Special. Limited and special part nerships are permitted, but not favored. The statutes on this subject must be strictly complied with. A certificate showing prescribed details and particulars of the partnership must be signed, acknowl edged, and filed in the office of the clerk ot the district court of the county in which the principal place ot business is situated, to be there recorded and similarly recorded in each county where such partnership has a place of business. There must be an affidavit that the amount stated in the certificate has been actually contributed by each separate partner. Publication must be made ot the ce-tiflcate and affidavit for six weeks in two newspapers in each senatorial district in which the partnership is to transact business. Powers of Attorney. A power of attorney to convey, or in any manner affect real estate, must be acknowledged and recorded. A revocation of such power must be acknowledged and recorded in the same office wherein the original power of attorney is recorded. Receivers. A receiver may be appointed on the petition of either party to a civil action or proceeding wherein he shows that he has a probable right to or interest in any property which is the subject of the controversy and that such property is in danger of being lost or materially injured or impaired. When the property of any person, partnership, company or corporation has been placed in the hands of a receiver for distribution, after the payment of all costs, the following claims shall be entitled to priority of payment. 1. Taxes or other debts entitled to preference under the laws of the U. S. 2. Debts due or taxes assessed and levied for the benefit of the state, county, or other municipal corporations in the state. 3. Debts owing to employees for labor performed within the 90 days next preceding the transfer of such property. Records. Ail instruments conveying or creating liens upon the real or personal property and all conditional sales must, after having been signed and acknowledged, be recorded in the office of the recorder of deeds in the proper county or counties where the property conveyed is situated. Unless so recorded, such instruments are invalid as to a bona fide purchaser or encumbrancer. Redemption. Redemption from a sheriff’s sale of real estate, whether sold under a general or special execution, may be made by a creditor who has a lien on the property sold, at time after six months and within nine months from date of sale by paying to the clerk of the court the amount provided by statute, being generally, the amount of the purchaser’s bid, with interest at the same rate that the judgment bears. Within the time named creditors may redeem from each other. After nine months, and within one year’s from the date of sale the owner of the real estate sold has the exclusive right to redeem from such sale, and in so doing, the debtor must pay off the claims of judgment creditors, who have made redemptions as herein above stated, in addition to the amount originally bid. Redemptions. In actions for the foreclosure of mortgages or deeds of trust on real estate, the actions and issuance of sheriff's deeds have been continued until March 1st, 1937, which is shown under title of ‘mortgages'. Replevin. In actions for the recovery of personal property, the petition must be verified; and if plaintiff desires immediate delivery of the property, he shall execute a bond for double the value of the property sought to be recovered. The defendant may stay all pro ceedings and retain the property by executing a bond to the plaintiff with sureties to be approved by the clerk. Sales. This State has a uniform sales law. Sales of Goods In Bulk. The sale, transfer or assignment in bulk of any part of the whole or a stock of merchandise and fixtures per taining thereto otherwise than in the ordinary course of trade and In the regular orosecution of business, is void as against the creditors of seller: 1. unless at least seven days before the sale a detailed Inventory is made, and 2. unless the purchaser demands and receives from the seller a written list of names and addresses of the creditors of the seller, with the full amount of indebtedness due or owing to each and certified by the seller under oath to be a full, accurate and complete list of his creditors and of his indebtedness, and 3. unless https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the purchaser shall at least seven days before taking possession or paying the purchase price, notify personally or by registered mail every creditor whose name and address are stated in said list or to which he has knowledge, of the proposed sale and of the price, terms and conditions thereof. The bulk sales law does not apply to sales by executors, admini strators, receivers, trustees in bankruptcy, or any public officer under Judicial sale. A purchaser not complying with these provisions be comes a receiver and accountable to the creditors for all merchandise and fixtures coming into his possession by virtue of the purchase. Security for Costs. Nonresident and corporation plaintiffs may, on motion of defendant, be required to file a bond with sureties to be approved for security of costs either in Justice Court, Municipal Court, or District Court. Statute of Frauds. No evidence except in writing and signed by the party to be charged or by his authorized agent, is competent relative to the following contracts: 1. In relation to sale of personal property, when no part of the property is delivered and no part of the price is paid. 2. In consideration of marriage. 3. Wherein one promises to answer for the debt, default or miscarriage of another, Including promises by executors to pay the debt of decedent from their own estate. 4. For the creation or transfer of any interest in lands, except leases for a term not exceeding one year. 5. Those not to be performed within one year from the making thereof. Stocks and Bonds. The sale of stocks and bonds Is governed by what is termed a “Blue Sky Law." Supplementary Proceedings. When an execution has been returned unsatisfied, plaintiff may have an order for the appearance and examination of the judgment debtor; or such order may be obtained after execution has issued upon proof by plaintiff's affidavit or other proof that debtor has property which he unjustly refuses to apply to the satisfaction of the judgment. If any property be found by such examination it may be levied upon; if in the hands of others the court may require its delivery to satisfy the judgment, and appoint a receiver of debtors property, forbid the sale thereof and order Equitable interests in realty to be sold. Taxes. Property shall be taxed each year, and personal property shall be listed and assessed each year in the name of the owner thereof on the first day of January. Real estate is listed and valued every four years. All property is assessed at its actual value and taxed at 25 per cent of the actual value. All road taxes and one-half of the other taxes levied are payable without interest or penalty before April 1st. The balance is payable before October 1st. Delinquent taxes bear interest at the rate of % of 1 per cent per month. Real estate taxes are liens thereon and personal property taxes are liens upon the owner’s real estate except the homestead and may be continued as liens from year to year by compliance with the statute. Taxes upon stocks of goods or merchandise, fixtures and furniture in hotels, restaurants, rooming houses, billiard halls, moving picture shows and theatres are a lien thereon which continues when sold in bulk and the purchaser is personally liable therefor. They are also a lien upon buildings assessed separate from the real estate. Taxes assessed on personalty in this state owned by a non-resident is a lien thereon. Personal property may be levied on and sold for taxes by a distress and sale. Real estate is sold for unpaid taxes after notice by publication on the first Monday of December of each year subject to redemption in three years from the date of sale by payment to the county auditor the amount for which the same was sold and 4 per cent of such amount added as a penalty, with 6 per cent per annum on the whole amount thus made from the day of sale, and the amount of all taxes unpaid and delinquent the first day of April, the interest and costs paid by the purchaser, or his assignee for any subsequent year or years with a similar penalty added as before on the amount of the pay ment and each subsequent year, and 6 per cent per annum on the whole of such amount from the day of payment. Trust Companies. Domestic trust companies are organized under and governed by the general corporation laws of the State. Foreign trust companies doing business in this State are governed and con trolled by the general statutes concerning and relating to foreign corporations doing business in Iowa. (See Corporations.) Trust Heeds. They must be executed and foreclosed, and consid ered as mortgages. That is, the power of sale on notice is abolished, and they must be foreclosed by equitable action. Warehouse Receipts. Any person, firm, or corporation desiring to issue elevator or warehouse certificates (or receipts must file a written declaration with the recorder of deeds in the county where his or its elevator or warehouse is situated, setting forth the particu lars required by statute, which declaration must be recorded by the recorder of deeds. Thereafter he or it may issue certificates for commodities actually in such elevator or warehouse, but the certifi cates must conform to the statutory provisions. A register of certificates issued must be kept by the parties issuing them. A violation of these provisions, issuing double certificates for the same roperty, or selling or encumbering property included in any wareouse receipt, is made a criminal offense. There is also a criminal statute against issuing false warehouse receipts or certificates. Wills. Any person of full age and sound mind may dispose of his property by will, subject to the rights of homestead and exemp tion created by law and the distributive share In his estate given by law to the surviving 6pouse, except sufficient to pay his debts and expenses of administration. Wills, to be valid, must be written, witnessed by two competent witnesses, signed by the testator, or by some person in his presence and by his express direction. Sub scribing witnesses can derive no benefit from a will, unless there be two competent witnesses besides them. Wills executed outside of Iowa, in accordance with the laws of the State where executed or of the testator’s domicile, if in writing and subscribed by the testator are valid in Iowa. If probated in any other state or country they shall be admitted to probate in this State on the production of a copy of such will, and of the original record of probate thereof, authenticated by the attestation of the clerk of the court in which such proba tion was made or of the probate judge, under seal, if they have one. All wills must be probat ed before they can be effectual. BANKING AND COMMERCIAL LAWS—KANSAS SYNOPSIS OF THE LAWS OF KANSAS RELATING TO BANKING AND COMMERCIAL USAGES Revised by Doran, Kline, Colmert & Cosgrove, National Bank of Topeka Bldg.. Topeka. Kans. (See card in Attorneys List.) Acknowledgments. (See Deeds.) Actions. Civil actions are conducted as required by a code of procedure. Security for costs must be given or resident plaintiffs may deposit $15 in lieu of bond for cost. Nonresident plaintiffs may be required to give bond for costs. Administration of Estates. Probate courts In each county have Jurisdiction of estates. Demands against the estate are divided into the following classes: 1. Funeral expenses. 2. Expenses of the last sickness; wages of servants; demands for medicines and medical attendance during the last sickness and expense of administration. 3. Debts due the State. 4. Judgments rendered against the deceased in his lifetime; but if such judgments are liens upon real estate and the estate be insolvent, such judgments shall be paid without reference to classification, except the first two which have recedence. 5. All demands without regard to quality which shall e legally exhibited against the estate in one year after granting first letters of administration. 6. Demands not exhibited within one year are barred, except as to infants, persons of unsound mind or persons imprisoned or absent from the United States, who shall have one year after the removal of their disabilities. Foreign ex ecutors, and administrators with the will annexed, may sell real estate in this State in accordance with the power contained in the will, unless administration upon the estate has been granted in this State; provided that at the time of such conveyance an authenticated copy of such will has been recorded in the office of the probate court In the county in which the land is situated. Executors or adminis trators appointed in sister states or foreign countries, upon the filing of an authenticated copy of appointment in the probate court of any county of this State where there may be real estate of the deceased may sell real estate under order of court upon the same terms as if appointed in this State. Affidavits. Affidavits may be made in or out or the State by the same authority and with like authentication, as depositions. Aliens. Aliens may hold real estate. Rights of intestate alien forfeited to state if alien citizen of a foreign country which has no treaty relations with the United States affecting the rights of an alien to hold property in this country and such alien has no relatives or next of kin who are citizens of the United States. Arbitrations. Persons having controversies may submit them to the arbitration of any person or persons mutually agreed upon and may make such submission a rule of any court of record in the State. The parties may enter into arbitration bonds conditioned for the faithful performance of the award. Award to be filed in court agreed on and judgment entered as on a verdict of jury. Parties may have process, orders, and execution as in civil cases. Arrest. Upon the plaintiff filing a bond in double amount of his claim, a defendant may be arrested in a civil action upon filing an affidavit with the clerk of the court that he has removed or begun to remove his property out of the jurisdiction of the court with Intent to defraud his creditors; or has begun to convert his property Into cash, for the purpose of placing it beyond the reach of his creditors; or has property which he fraudulently conceals; or fraudulently con tracted the debt. Assignment (Voluntary) for Creditors and Insolvency. Such assignments may be made for benefit of all creditors and should be acknowledged and recorded in the same manner as real estate convey ances. Assignee in trust must file inventory within thirty days in office of clerk of district court of county in which assignor resides and give bond in double amount of appraised value of estate assigned. Only discharges debtor to amount of payments made. Attachment. At or after the commencement of an action an attachment may be had by plaintiff. The affidavit of the plaintiff his agent, <pr attorney must be filed, stating the nature of the claim that it is just, the amount affiant believes ought to be recovered, and the existence of some one or more of the following grounds: 1. That defendant is a foreign corporation or a non-resident of the State (but in this case for no other claim than a demand arising upon con tract, judgment, or decree, unless the cause of action arose wholly within the limits of the State). 2. That the defendant absconded with the intention to defraud his creditors. 3. That the defendant has left the county of his residence to avoid a service of summons. 4. That he so concealed himself that summons can not be served upon him. 5. That he is about to remove his property or a part thereof out of the jurisdiction of the court with the intent to defraud his creditors. 6. That he is about to convert his property or • part thereof Into money for the purpose of placing it beyond the reach of his creditors. 6. He has property or rights in action which he conceals. 8. Has assigned, removed, or disposed of, or is about to dispose of his property, or a part thereof, with the intent to defraud hinder, or delay his creditors. 9. Or fraudulently contracted or Incurred the debt on which the suit is brought. 10. Or that the su«t is brought for damages from the commission of some felony or misdemeanor. 11. Or that the debtor has failed to pay for any article or thing delivered for which by contract he was bound to pay upon delivery. A bond in double the amount of plaintiff’s claim Is required except where by the attachment affidavit defendant Is shown to be a non-resident of the State. Banks and Banking. There is no constitutional provision relating to banks, except banks of issue. Other banks are organized under a general act. The Charter, in addition to the requirements of the law relating to corporations, shall contain the names and places of residence of the stockholders and the amount of stock subscribed by each, and may contain such other provisions, not inconsistent with law, as the stockholders may deem proper, and shall be subscribed by at least five of the stockholders of the proposed bank who are residents of the State of Kansas. Board of Directors not less than five nor more than twenty-five in number, a majority of whom shall be resi dents of the county or adjoining counties to that in which the bank is located. The word “State” shall be included in the title. The full amount of the capital stock must be subscribed before the charter is filed. The bank shall transact no business, except the election of officers, the taking and approving of their official bonds, and the receipts of payments on account of subscriptions to its capital stock, until it has been authorized by the bank commissioner to commence business. Capital stock shall be subscribed in full before charter is filed. The capital stock shall be not less than $20,000 in unincor porated towns and in cities of the third class; not less than $30,000 in cities of second class; not less than $50,000 in cities of the first class with $100,000 required in cities of more than 75.000 population. Managing officers of banks must qualify by ownership of stock of par value of at least $500.00. No bank shall employ its money directly or indirectly in trade or commerce by buying and selling goods, chattels, wares and merchandise, and shall not invest in the stock of any bank or corporation except federal land banks, and banks may become mem bers of a federal reserve bank and may hold stock in any deposit guarantee corporation organized by the federal government, no bank may . . . make any loans on the security of the shares of its own capital. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1787 nor be the purchaser or holder of any such shares, except to prevent loss upon a debt previously contracted in good faith, nor loan more than 5 per cent of capital and surplus to any officer, agents, or employees or bank. All such property coming into the posession of the bank in the collection of debts shall not be considered assets after the expiration of six months. Banks must maintain a reserve consisting of 15 per cent of amount of its demand deposits and 5 per cent of amount of its time deposits. One-half of said reserve shall be in cash or balances in corresnondent banks as Drimary reserve: other half mav be in certain bonds as secondary reserve. Banks may borrow money for temporary purposes if not in excess of 100 per cent of paid-up capital and 50 per cent of surplus. Banks in liquidation or in charge of a receiver may borrow in excess of said percentages as bank commission er should permit. All banks may hold, purchase and convey real es tate for: (a) Building and furniture necessary in transaction of business; (b) Satisfaction of debts; (c) Purchase under judgment or mortgage foreclosure. Real estate acquired under (b) and (c) may be held five years, but must be sold at public or private sale within thirty days thereafter, unless Bank Commissioner grants extension for not to exceed four years. Officers are personally liable for paying overdrafts. Not more than 15 per cent of the capital stock and surplus can be loaned to any one person, company or corporation. Penalties are provided for false statements and for receiving deposits when the bank is in a failing condition. Private banks are subject to the provisions of the law. Since 1929 all banks must be incorporated. The Bank Commissioner or deputy must make examination of each bank at least twice each year. Four reports per annum are required and the commissioner may call for others. Has authority to examine any co-partnership, association or corporation located in or organized under the laws of Kansas or any other state, holding as much as 25 per cent of any capital stock of any banking or trust company doing business in Kansas (Chap. 83 Laws of Kansas, 1931); Banks may purchase, hold and convey real estate under certain conditions and for certain purposes to the extent of one-half of their capital and surplus. If paid up capital not less than $100,000 may exercise fiduciary powers. Application shall be made to Bank Commissioner and special permit secured. Bank shall segregate assets so held and keep separate books therefor. Bank shall not use such funds in conduct of bank's business without first setting aside in Trust Depart ment U. S. bonds or other securities approved by the Bank Commis sioner. Shareholders are additionally liable for a sum equal to the par value of stock owned and no more but banks may now issue pre ferred stock of one or more classes with right of cumulative dividend not exceeding six per cent and with assent of seventy-five per cent of the stock and approval of the bank commissioner, said stock carrying no liability for debts of bank or any assessment. If the Bank Com missioner finds a bank insolvent or violating any banking law. he shall take charge and may appoint a special deputy to handle affairs of the bank for a period of not longer than six months, at which time Commissioner must appoint receiver, who serves under orders of District Court. Claims of creditors must be filed with receiver within one year from appointment. National banks by vote of seventy-five per cent of stock and after examination by Bank Commissioner and approval of comptroller of currency may become state banks. Deputies for insolvent banks may, subject to approval of bank commissioner, borrow money and pledge assets. Receivers in charge of bank and creditors may reorganize the bank if approved by 80 per cent of depositors, general creditors and Bank Commissioner.' Credit unions are subject to exclusive supervision of the bank commissioner, and must file reports on forms provided by commis sioner. Bills of Exchange. (See Notes and Bills of Exchange.) Bills of Lading. These are governed by the common law. Bulk Sale. "The sale or disposal of any part or the whole of a stock of merchandise or the fixtures pertaining thereto, otherwise than in the ordinary course of his trade or business, shall be void as against the creditors of the seller, unless the purchaser receives from the seller a list of the names and addresses of the creditors of the seller certified by the seller under oath to be a complete and accurate list of his creditors and unless the purchaser shall, at least seven days before taking possession of the property, or before paying therefor, notify In person or by registered mail, every creditor whose name and address is stated in said list, or of whom he has knowledge, of the proposed sale.” In lieu of notice, seller may give to purchaser a bond conditioned upon the payment of debts due creditors of the seller and upon which creditors may sue in an amount equal to present value of the propertytransferred and signed by at least two resident sureties; the bond to be approved by and filed with the clerk of the district court of the county where the property is sold is located before purchaser takes posesssion or pays. Chattel Mortgages. A mortgage of personal property, where the property is not immediately delivered to the mortgagee who retains actual and continuous possession thereof, is void as against creditors of the mortgagor and as against subsequent purchasers and mortgages In good faith, unless the mortgage, or a copy thereof is filed in the office of the register of deeds in the county where the property is situated and if the mortgagor is a resident of the state, then also in the county of which he is at the time a resident. A mortgage so filed is invalid as against creditors or subsequent purchasers in good faith after two years unless within thirty days next preceding the expiration of such two years and each two years thereafter the mortgagee, his agent or attorney, makes an affidavit exhibiting the interest of the mortgagee in the property and showing the balance unpaid on the debt, and files the same in the same manner as the mortgage. In case of default the mortgagee may sell in the manner provided in the chattel mortgage. A mortgage of exempt personal property is Invalid unless executed Jointly by husband and wife where that relation exists unless it be given for the purchase price of the mortgaged chattel. Collaterals. Governed by the common law on Bailments and Pledge. Conditional Sales. Conditional contracts, by which the owner ship remains in the party proposing to sell until the purchase price Is paid, are treated as chattel mortgages and must be filed in the office of the register of deeds In the same manner as such chattel mortgages but remain in force without the renewal affidavit required In chattel mortgages. Contracts. All contracts which, by the common law, are jolut only, shall be construed to be joint and several. The use of private seals In written contracts (except seals of corporation) is abolished, and in suits upon written contracts, as to the performance of con ditions precedent, it is sufficient after setting out the contract to allege generally that plaintiff has fully performed the contract. Conveyances. (See Deeds.) Corporations. Corporations are formed under a general statute requiring five or more incorporators. Prospective corporations must apply to the charter board for a charter. A $25 application fee and $2.50 filing fee must accompany an application. Charter fee is onetenth of one per cent of its authorized capital stock upon the first $100,000; one-twentieth of one per cent on all in excess of $100,000. Forms for applications and charters furnished by the Secretary of State. Every corporation must commence active operations within one year after filing its charter with the secretary of state; failure to do so works its dissolution. Duration of charter is fifty years, or less, as may be specified in the charter. Every corporation must keep a genera] office including office of treasurer or person keeping the funds, earnings or corporation income within the State. No corporation texcept railroad, banking, and building and loan), can commence business until it file with the secretary of state an affidavit made by its 1788 BANKING AND COMMERCIAL LAWS—KANSAS president and secretary setting forth that not less than 20 per cent of Its capital stock has been paid in actual cash, or property equivalent thereto, but a corporation de facto exists if the 20 per cent has been paid even though the affidavit has not been filed. The name adopted must Indicate the nature of the business. The corporate name must begin with the word “the” and end with the word “corporation." “company,” “association,” or “society,” but this does not apply to banks, benevolent or religious societies. There must be at least three directors residents of the State. By-laws may be amended by a majority vote of capital stock at annual or special stockholders’ meetings. The annual statement shall be made by each corporation for profit except banking and insurance corporations and building and loan associations, on or before March 31 of each year on forms fur nished by Secretary of State, showing a complete detailed statement of the conditions of such corporation .... Failure to file this report within ninety days from time fixed works a forfeiture of the charter, and a penalty of $5 for each day the report is delayed. The capital stock can be increased to an amount not exceeding three times the original amount fixed in the charter and to any further amount of bona fide paid up capital. Preferred stock can be issued if all the holders of common stock consent. Non-par stock may be issued under authority. Dividends can not be declared from any source other than that which results from profits. If corporation has no non-par stock it may declare dividends out of net profits or surplus earnings. Corporations may borrow money and may pledge property and income thereof (Chap. 138, Laws of Kansas 1931); cannot engage in certain agricultural, dairying or horticultural business. Corporations (except banks, insurance, building and loan companies and those not organized for profit) must pay an annual franchise tax on paid-up capital as follows: Not over $10,000, $10; over $10,000; and not over $25,000, $25; over $25,000 and not over $50,000, $50; over $50,000 and not over $100,000, $100; over $100,000 and not over $250,000, $125; over $250,000 and not over $500,000, $250; over $500,000 and not over $1,000,000, $500; over $1,000,000 and not over $2,000,000, $1,000; over $2,000,000 and not over $3,000,000, $1,500; over $3,000,000 and not over $5,000,000, $2,000; over $5,000,000, $2,500. Costs. In the District Court a bond for costs or a cash amount of fifteen dollars in lieu thereof must be deposited by resident plaintiffs. Non-resident plaintiffs may be required by order of court to give additional security for costs. In Justice Courts cost deposits may be $3.00 to $5.00, depending on custom of Justice. In City Courts cost deposits are customarily $5.00., nonresident plaintiffs, $3.00 residents. Courts. Terms and Jurisdiction. District courts, holding two to three terms a year in every county, have general original jurisdiction In law and equity. Regular terms of the probate court are held in each county on the first Mondayin each month and special or adjourned terms may be held as business may require. Justice’s jurisdiction in civil actions for the recovery of money, $300; to recover specific personal property not valued in excess, $300. The supreme court is the court of last resort. City courts with jurisdiction in civil actions for amounts not in excess of from $300 to $1,000 are established in the following cities: Arkansas City, Atchison, Coffeyville, Kansas City, Leavenworth, Topeka, and Wichita. Procedure corresponds to that of justice courts. Days of Grace. Abolished. Deeds. No particular forms of conveyances are prescribed. As a rule the form used in other States is sufficient. As between the parties conveyances are valid without being recorded. Deeds may be valid as against attaching creditors without being recorded. The wife should join with her husband in the conveyance, and any conveyance or mortgage of the homestead without her uniting in the same is absolutely void. If the wife has never resided in the State her signature is not necessary. Grantors need not attach any seal or scroll to their signatures, and no witnesses are necessary unless grantors are unable to write. Corporations convey by deed, sealed with the corporate seal and signed by president, vice-president, pre siding member, or trustee. The acknowledgment must be before a judge or clerk of the district court having a seal, a justice of the peace, notary public, county clerk, register of deeds, mayor or clerk of an incorporated city. Every notary public shall add to his official signature the date of the expiration of his commission as notary public. In cases where the acknowledgment is made out of the State it must be made before a court of record, a clerk, or other officer having the seal thereof, a commissioner of deeds for Kansas, justice of the peace or notary public, or before any consul of the United States resident in any foreign country or port. Deeds and mortgages must be recorded in the office of the register of deeds of the county in which the land is situated, or they will be void as to subsequent grantees in good faith without notice. Deeds of Trust in the nature of mortgages are not used so far as sale by the trustee is concerned. (See Trusts, etc.) Depositions. Depositions are taken upon notice to the opposite party. Courts are also authorized to appoint commissioners to take depositions. The depositions may be taken before any person author ized to take acknowledgments. Each witness must sign his own deposition. The notice must be attached to the depositions and inclosed with them. Depositions should be taken on the date named and some portion on each successive day or the officer before whom the depositions are taken should note continuances or adjournments from day to day. Sundays and national holidays not being regarded. If taken by interrogatories and cross-interrogatories, under agreement or otherwise, each interrogatory and cross-interrogatory must be put to each witness and answered so far as he can answer it, and the answer written down. If the depositions are taken before the mayor, notary public, or commissioner appointed as aforesaid, they must be certified under his official seal. If before any officer not possessing a seal, a certificate must be annexed, under the seal of the county, or the great seal of the State, that the officer by whom the depositions were taken was, at the time of taking the same, such officer as he represents himself to be in his certiflctae. This should be attached to the certificate of the officer (not possessing a seal) who took the depositions. Descent and Distribution. The homestead is the absolute property of the widow and children—one-half in value to the widow, and the other half to the children, when both survive. The home stead can not be divided or sold by an action for partition until all the children attain majority. One-half of all real estate owned by husband during coverture, and not conveyed by husband and wife, nor sold at judicial sale, and not necessary to pay debts goes to the wife in fee simple; except of land sold by husband whose wife never before such conveyance resided in the State. Remaining real estate goes to the surviving children, and living issue of prior deceased children, children taking per stirpes, in equal shares, or, if none, the whole estate goes to the widow. For want of wife or child or living issue of deceased child the whole estate goes to the parents. The rules applicable to widow of deceased husband apply to husband of deceased wife. Illegitimate children inherit from the mother, ana also from the father, if his recognition has been general and notorious, or in writing. When a child would inherit from either parent, such parent will inherit from the child. Personal property descends in the same way as real estate except exempt household furniture is sole property of surviving spouse. Property descending by law or will is subject to an inheritance tax. varying in percentage according to relationship and amount. Special statute provides for administration and distribution of estate of persons dying without known heir or will. (Chapter 168, Laws. 1935.) Dower. Dower is abolished by law. (See Descent and Distri bution.) Executions may be ordered as soon as judgment Is obtained If stay has not been granted or supersedeas given. Executions running to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis the sheriff of the county where the levy is to be made, may be levied on property in any county of the State and issue only out of court where judgment obtained except where abstract or transcript of justice Judgment filed in district court of same county as that of the Justice court, execution will issue on said judgment only out of said district court. There is no stay of execution in the district court except by supersedeas bond which may be given on appeal. In justice’s courts, by filing bond, stays of execution are granted as follows. On any Judgment for $20 and under, thirty days; over $20 and under $50, sixty days; over $50 and not exceeding $100, ninety days; over $100, one hundred and twenty days. Real estate is only subject to execu tion issued out of district court of county wherein judgment rendered or abstract or transcript from justice of the peace filed. Executions are liens on personal property only from time of levy. Real estate sold on execution or order of sale, giving the debtor eighteen months in which to redeem. The debtor is entitled to ppssession of the property and rents and profits, during the period provided for redemp tion, except in case of waste. Receiver may be appointed to prevent waste and may use so much of rents and profits as are necessary to repair waste and pay costs of receivership. Surplus if any to be paid to judgment, debtor free from the lien of any judgment. Exemptions. Homestead of 160 acres of farming land, or of one acre within an incorporated town or city, with buildings thereon, appurtenant to the use of the property as a homestead, unlimited in value. To the head of a family the following articles of personal property: All books, pictures, musical instruments, pews in churches, burial lots; wearing apparel of debtor and family; beds and bedding, cooking utensils, stoves and appendages necessary for use of family; sewing machine and all other household furniture not exceeding $500; two cows, ten hogs, one horse or mule; yoke of oxen or In lieu thereof span of horses or mules; twenty sheep; food necessary for support or stock hereinbefore mentioned; also one wagon, two plows, one drag and other farming utensils not exceeding $300; all provisions and fuel necessary for support of family for one year; necessary tools and implements of mechanic, miner or other person used and kept for carrying on trade or business, and in addition thereto stock in trade not exceeding $400; library, implements and office furniture of professional man. Also personal earnings of the debtor earned during three months preceding the garnishment or attachment, and three months’ pension money, where such earnings or pension money is necessary for the support of the debtor’s family, but 10 per cent of such earnings may be required to be paid in and applied on the judgment. Foreign Corporations. A foreign corporation seeking to do business in this State must make application to the State Charter Board showing a copy of its charter, or articles of incorporation, the place where the principal office is located, place where the principal office in this State is to be located, nature and character of the business to be conducted in this state, names and addresses of officers, trustees or directors, statement of assets and liabilities subscribed and sworn to by president and secretary of the corporation, written con sent that actions may be commenced against it in courts of this state, and paying to the State Treasurer the same fees upon the amount of capital invested or used in this state as a domestic corporation. When it receives a certificate authorizing it to do business, it is then subjected to substantially the same provisions, and judicial control as a domestic corporation. Annual statements must be filed on or before March 31st, giving condition on the 31st of December preceding. If a foreign corporation fails to file with the secretary of state the state ment required by law within ninety days after the time provided for its right to do business in the State is thereby forfeited. A penalty is imposed of $100 and in addition $5.00 for each day this report is delayed. Foreign corporations must pay an annual franchise tax on that’portion of their capital represented by its property and business in Kansas on the same basis as domestic corporations. Failure of foreign corporations who transact business in Kansas, other than interstate commerce to comply with this law renders them subject to ouster and receivership proceedings on the part of the State but does not now affect the right of such foreign corporation to sue in the courts of this State. A foreign corporation transacting business in Kansas with a majority of its property located in Kansas must have two directors residents of the State. Fraud. (See Attachments, Arrest, and Assignments.) Garnishment. At or after the time of beginning an action to recover damages founded upon contract, judgment or decree, or after the issuance of an execution and before it is returned, if the plaintiff cause to be filed with the clerk an affidavit stating the amount of his claim over and above all offsets, that he believes that some person, naming him, indebted to, or has property in his possession or under his control belonging to the defendants, and that such defendant has no property liable to execution sufficient to satisfy his debt, and that the indebtedness or property so held is not by law exempt from seizure or sale upon execution, the clerk shall issue a garnishment summons. In justice courts the affidavit differs from that acquired in district court actions only in that affiant states that plaintiff is in danger of losing his claim, in lieu of the allegations that the defendant has not property subject to execution sufficient to satisfy the debt. In the district courts bond in double amount claimed is required on garnishments before judgment, except where defendant is a non-resident or when garnish ment is issued on a judgment rendered in any court. No bond re quired in justice courts. Defendant may at or after complaint is filed and before judgment, release garnishment by entering into undertaking with sufficient surety to the effect that they will pay on demand any judgment rendered against defendant. The bond shall be not less than double amount of plaintiff’s claim. Guaranty Companies. (See Trust Companies.) Holidays. The legal holidays are: Sundays; January 1 (New Year's Dav); February 12 CLincoln’s birthday); February 22 (Washington’s birthday): May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); October 12 (Columbus Day) (but does not affect commercial paper); November 11 (Armistice Day); Thanksgiving; and December 25 (Christmas Day). If any of these days fall on Sunday the next secular or business day is a legal holiday. Legal or business proceedings had on a holiday, except Sundays, are valid. Husband and Wife. (See Married Women.) Injunctions. Injunctions may be granted by a district court or by the judge thereof at the beginning of an action or afterwards, in his discretion. A bond must be given to protect the defendant against any loss in case the injunction is wrongfully obtained. In the absence of the judge from the county the probate judge may grant temporary injunctions. Insolvency. (See Assignments.) Interest. Legal rate, 6 per cent, but 10 per cent may be agreed upon. Excess of 10 per cent is forfeited, and in addition thereto there shall be deducted from the amount due for principal, with lawful Interest, an amount equal to the Interest contracted for in excess of 10 per cent. The legal interest originally contracted for continues until the debt is paid, and no additional interest can be charged by way of penalty for default except from date of default. A purchaser of a negotiable note in due course takes the note free of the usurious taint. Judgments. Judgments of courts of record are liens on the real estate of the debtor within the county from the first day of the term at which the judgment was rendered; but judgments by confession and judgments rendered at the same term during which the action was commenced are liens only from the day on which the judgment was rendered. Judgments lose their priority over subsequent judg ments unless execution is issued and levied within one year after Judgment. A certified copy of the judgment appearing of record In BANKING AND COMMERCIAL LAWS-KANSAS the district court may De filed in the office ot the cleric of the district court of any other county ana the judgment will then be a lien on real estate in that county. Abstracts or transcripts of justice court judgments may be filed in the district court oi the same county, are liens on real estate in such county from the date of filing, after which executions issue only out of said district court on such judgments. Jurisdiction. (See Courts.) Leases. In farm leases, burdensome provisions are unlawful and unenforceable, but a fair and reasonable rent is valid and may be secured by liens on total crops grown on the leased land and on live stock raised on share or lease and on receipts from pasture received by tenant. License. Agents of insurance companies are required to take out licenses from the superintendent of insurance. Cities are authorized to enact license ordinances and certain classes of husiness are required to take out a license. Transportation of motor fuels over highways must be licensed. Liens. Mechanics, material-men, and laborers, both original con tractors, and sub-contractors, and laborers of sub-contractors are entitled to obtain liens upon real estate for labor performed or material furnished in the erection or repair of any building. Sworn statements Itemized as fully as practicable as to the amount of the claim, for what and when it was rendered and by whom, giving names of con tractor and owner and description of property and date of last material furnished, must be filed in the office of the clerk of the court. Original contractor’s lien claim must be filed within 4 months from date of last materials, or labor furnished and others entitled to lien within sixty days after last materials or labor furnished. Lien claimants other than original contractors, must give immediate notice of filing of lien claim to owner or person In possession of the premises, where that may be done, otherwise must post notice on the premises. Action to foreclose lien must be begun within one year after filing claim Livery-stable keepers, forwarding merchants and common carriers have liens. (See Judgments.) Attorneys have lien on papers and funds in hand for general balance of compensation and have lien on moneys in hands clients adversary due client in any matter, action or proceed ing, in which the attorney was employed for services therein from the time of service on the adverse party, in the manner of a summons, of written notice of the lien. Blacksmith, horseshoer, wagon maker, keeper of garage or any other person shall have lien on any goods, chattels, horses, wagons, automobiles, etc. for value of labor and material used thereon as long as said property remains in his possession. Such person may retain lien by filing statement thereof under oath in office of Register of Deeds within thirty days after parting with possession. Such liens hold priority over prior recorded chattel mortgages. Threshers shall have lien on grain threshed and same must be filea within fifteen days from completing threshing and has priority over prior chattel mortgages. Action must be brought within ninety days after filing of thresher’s lien or same will be deemed to have been abandoned. Liens similar to ordinary mechanics lien are given by statute for materials and labor furnished on oil leases in their development and are foreclosed in like manner. Any rent due for farming land shall be a lien on crops growing or made on the premises. Limitations of Suits. An action for the recovery of real property, gold on execution or by executors, administrators, or guardians, brought by the execution debtor, or the heirs, ward, or guardians, within five £ears after the deed is recorded. Other actions for recovery of real property, within fifteen years, except recovery of prop erty sold for taxes or actions for forcible entry and detention or forcible detention which must be brought in two years. On official bonds and contracts in writing, five years. Contracts not in writing, three years. Trespass, detinue, replevin, Injuries not arising on contract, and relief on the ground or fraud, two years. Action for libel, slander, malicious transaction, or false imprisonment upon a suit for penalty or forfeiture, one year. Action for any other relief not before provided for, five years. In any case founded on contract, part payment, or an express written acknowledgement or promise, renews the contract. The statute runs from the date of such renewal. Con tractual limitations differing from the statutes are void. Married Women. The real and personal property owned by a woman at the time of her marriage, and any property which comes to her by descent, devise, or bequest, or gift of any person except her husband, remains her sole ana separate property notwithstanding her marriage, and'-, not subject to the disposal of her husband or liable for his debts. Married women may sell and convey their real and personal property and enter into any contract with regard to the same in the same manner and to the same extent as a married man may in relation to his property. She may sue and be sued in the same manner as if she were single. She may carry on any trade or business, perform labor or services for her separate account, and her earnings or proceeds from labor, trade, or business remain her separate property, and may be used and invested by her in her own name. Her husband is not liable for her debts incurred in her separate busi ness undertakings by virtue of the marriage relation. She may also contract with her husband with the same effect as though the married relation between them did not exist. Mines and Mining. The law provides for the appointment of a mine inspector with authority to require mine owners to provide certain facilities for the health and safety of persons employed and compel proper ventilation, regulate excavations, air courses, etc. This law Is quite elaborate and violations of the safety provisions of the act—resulting in injury to employees, usually results in liability even where the Kansas Workmen's Compensation Act does not apply, on the part of the mine operator to the employees because of the positive duty resting on the operator to comply with such statutory provisions. Mortgages. A mortgage of real estate, to be valid as against subsequent bona-fide purchasers without notice, must be duly ac knowledged and recorded in the office of the register of deeds of the county where the land is situated. Mortgages may be valid as against attaching creditors without recording. Mortgages may be discharged on margin of record by mortgagee or attorney or assignee by duly acknowledged power of attorney or assignment in presence of register, or by satisfaction entered on the instrument when copied on the margin by the register; or by an independent release duly acknowledged and recorded. Wife must join in all mortgages except those for purchase money, except in cases where she has never been a resident of the State. Mortgages are foreclosed by suit only. By an act of the Legislature which took effect May 18. 1893. real estate sold under foreclosure of mortgage is subject to eighteen months period of redemption. Period of redemption may be extended as the court may fix, but not beyond January 15, 1937, and provided mort gagor pays rental ordered by court. (Chapter 226, Laws of 1935.) Corporation mortgagor may agree for a shorter period of redemption or may wholly waive it. If the mortgage foreclosed is on abandoned property or not occupied in good faith and the court so finds, six months only is allowed for redemption. This act does not apply to mortgages executed prior to the date the act took effect. When a mortgage is assigned the assignment should be acknowledged and recorded. (For Forms, see Deeds: see Executions.) (For Mortgages on Chattels, see Chattel Mortgages; see Execu tions.) Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text of this law following “Digest of Banking and Commercial Laws.”) Notaries. Notaries are appointed by the Governor and serve for four years. They give bond in the sum of $1,000 and are required to affix the date of the expiration of their commission to all certifi cates. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1789 Notes and Bills of Exchange. Uniform Negotiable Instrument Act took effect June 8. 1905. Partnerships. Limited or special partnerships may be formed for any legal purpose except banking or insurance. Such partnerships may consist of one or more persons who are general partners, and one or more who contribute a specific amount of capital and shall be called special partners. The special partners are not liable for the debts of the partnership beyond the amount contributed by them respectively but the names of the special partners must not be used In connection with the business. Such a partnership is formed by executing a certificate stating the name, the nature of the business, the names of the general and special partners, and their place of residence, and the amount of capital contributed by each special partner, and the perioa when the partnership is to commence and terminate. The certificate must be acknowledged, filed and recorded In the office of the county clerk in county of principal place of business and copies in clerk’s office of all other counties where partnership maintains a place of business. Power of Attorney. (See Deeds.) Probate Law. (See Administration.) Protest. (See Notes and Bills.) Railroads. Every railroad organized or doing business in the State has the power to transport persons, property and mail by high way, air or water. Records. (See Deeds.) Redemption. (See Mortgages.) Replevin. The plaintiff in an action to recover the possession of specific personal property may claim the immediate delivery of the same by filing affidavit and giving bond double the sworn value of the property. Property replevined must be held by the officer taking it twenty-four hours, during which time the party from whom the property is taken may give bond to the plaintiff for not less than double the amount of the value thereof conditioned for the return of the same or its value in case it shall be adjudged the plaintiff is entitled thereto, and thereupon may have the property returned to him. Securities. An elaborate speculative securities law was enacted in 1929. No securities not exempt can be sold within the State unless such securities have been registered by notification or qualification. Those securities requiring registration by notification and those by qualification are classified under the statute. Registration by notifi cation is secured by filing in the office of the bank commissioner, a statement with respect to such securities containing the following: Name and location of issuer, location of issuer’s principal place of business, and principal office in this state, if any; brief description of the security including amount of the issue; the amount of securities to be offered in this state; price at which securities are to be offered for sale; rate of commission to be paid; a brief statement of facts which shows the security falls within one of the classes in the Kansas law. Registration by qualification is required of those securities not entitled to registration by notification, and is secured by filing with the bank commissioner, a copy of the security to be sold, a statement of assets and liabilities of the issuer including the total amount of such securities and any interest or lien authorized or issued by such person or company; the name of the fiscal agent or broker with a statement of the financial standing of such agent; a statement showing gross and net earnings of issuer; a statement of information relative to the character of security and earning power of issuer; a statement showing plan of business, charter and by-laws if issued by a corporation or articles of association if issued by partnership; a statement showing place at which security is proposed to be sold including amount for commission, location of issuer’s principal business office and office in this state, and all other matter as may be required by the bank com missioner. The corporation commission, after investigation and ex amination may grant or deny permit to sell securities registered with it, or cancel previously granted permits. The Commission may order an appraisal of all assets of any business issuing securities for sale in the state, said appraisal to be made by three appraisers appointed by the Commission. In the sale of deposits or installments on bonds or contracts issued or sold by any company having paid-up capital of less than $100,000 the Corporation Commission may require a deposit to be made with it of securities having a value of at least $25,000 and there must be maintained on deposit securities in an amount equal to at least 100 per cent of liabilities on contracts outstanding in the state. All books of account of persons and corporations within the Act are subject to examination by the Corporation Commission. Quarter annual statement of financial condition must be filed with the Com mission. Registration is required of all brokers doing business in this state and any such broker must file in the office of the bank commis sioner. a bond in the sum of not less than $5,000. Agents and salesmen must also be registered and pay a fee of $5.00. Broker’s registration fee is $100. General accounts and books of brokers sub ject to examination and audit by bank commissioner. Service. All service of process is made by the sheriff or by con stables, or by some one specially authorized in any particular case, and must be issued in the name of the state with the seal of the officer issuing the same affixed. Suits. (See Actions.) Taxes. All taxes are due on the first day of November of each year, and if half of the same are not paid on or before the 20th day of December, a ten per cent per annum interest charge on said first half is added, and if not paid by June 20 all unpaid taxes draw interest at ten per cent. If half of the taxes are paid by December 20, payment of the remaining half may be deferred until June 20 of the succeeding year without penalty. Payment of taxes in full on or before December 20 entitles payer to 2 per cent discount on last half of taxes. When the tax upon real estate is delinquent it is sold for taxes on the first Tuesday in September following. After sold it bears interest at the rate of 10 per cent per annum and the same rate upon subsequent taxes paid and indorsed on the tax certificate. Real estate may be redeemed from taxes at any time before March 1, 1937, without penalty, but interest charge of 6% per annum, commencing September 1, 1935, and must be paid upon redemption. The tax lien attaches to real estate on November 1, in the year in which the tax is levied. After land is sold for taxes, it may be redeemed within three years from date of sale. The interest of a minor may be redeemed at any time within one year after he attains his majority, and idiots and insane persons may re deem within five years after the sale. A registration fee of 25 cents on each $100 of the principal debt secured by real estate mortgage must be paid to the Register of Deeds when such mortgage is filed for record and thereafter such real estate mortage and the note which it secures is not subject to taxation. Trust Companies. Trust companies may be organized with a capital of not less than $100,000 and issue preferred stock of different classes carrying no liability or assessment and may receive moneys in trust and execute any trust committed to them, either by any person or by order of any court, and may execute or guarantee any bond required by law to be given in any proceeding in court, and act as agent for the investment of money, and for the purpose of issuing, registering, transferring or countersigning certificates of stock, bonds or other evidences of debt, act as guardian and guarantee the fidelity and per formance of duty of persons holding public offices or private trusts, and certify and guarantee title to real estate and sell all kinds of negotiable paper, and receive deposits from banks and other trust companies or public officers and with approval of banking board trust, company may receive deposits subject to check. They are required to keep on hand 25 per cent of deposits subject to check and 10 per cent of time deposits, in the same manner as state banks. Each director BANKING AND COMMERCIAL LAWS—KENTUCKY 1790 must be a stockholder in the sum of not less than $1,000. Trust com panies are under the supervision of, and subject to, examination by the bank commissioner, and the provisions of the banking law relating to impairment of capital, insolvency and shareholders’ liability, and the duty of the bank commissioner in such cases. Trust companies may own and hold real estate for: (a) Suitable building for transaction of business; (b) That which is acquired through collection of debts, ‘‘but the real estate so owned shall not exceed 50 per cent of the capital of the company for a longer period than six months. Whenever the value of real estate so owned shall exceed 50 per cent of the capital of the company, it must be reduced to the proper limit within live years” unless Bank Commissioner grants an extension which cannot be for more than two years. Trusts and Powers. All trusts concerning lands must be created In writing except such as arise by implication of law. Warehouse Receipts. Practically the Uniform "Warehouse Receipts Act.” Wills. Any person of full age and sound mind and memory, hav ing an interest in real or personal property, may give and devise the same to any person by last will and testament lawfully executed, subject, nevertheless, to the rights of creditors and the estate given a spouse by statute. Wills must be in writing, signed at the end by the testator, or another in his presence and by his express direction, and subscribed in his presence and at his request by two or more competent witnesses who saw him subscribe or heard him acknowledge It. Wills executed without the State in the manner prescribed by the law either of the place where executed or of the testator’s domicile or of the State of Kansas are declared legally executed. Compliance with these requirements should appear in the witnessing clause. A will executed, proved, and allowed in another State, in the court of original probate, according to the laws of that State, may, relative to property in this State, be admitted to record in the probate court of the county in which such property is situated, by producing an authenticated copy of the will and order of probate admitting it to probate by the proper court of the county and State of which deceased died a resident, after due publication of notice thereof. Every will, when admitted to probate, shall be filed In the office of the probate court and recorded. SYNOPSIS OF THE LAWS OF KENTUCKY RELATING TO BANKING AND COMMERCIAL USAGES Revised by Woodward, Dawson & Hobson, Attorneys at Law, 612-625 Kentucky Home Life Bldg., Louisville, Ky. (See Card in Attorneys' List) Acknowledgments. Deeds executed within the State may be acknowledged before the clerk of the proper county court or a notary public, or may be acknowledged before and proven by two subscrib ing witnesses. Deeds executed without the State and within the United States must be acknowledged before the clerk of a court or his deputy, notary public, mayor of a city, secretary of state, com missioner of deeds, or judge of a court, or before a justice of the peace; if executed without the United States must be acknowledged before a foreign minister, consul or secretary of legation of the United States, or the secretary of foreign affairs, or notary public of the nation in which the acknowledgment was made or judge of a superior court of the nation where the deed shall be executed, attested in either case by the officer's seal of office. When the acknowledgment is taken, the officer may simply certify that the deed was acknowledged before him, and when it was done. All deeds must show a source of grantor’s title. Actions. Actions are commenced by filing petition and causing summons or warning order to be issued. An action in the circuit court requires a deposit of $5.50 to cover probable cost and tax. Administration of Estates. An administrator must be a resident of the state prior to appointment. An executor should be a resident or intend to become a resident immediately upon appointment. Either may be removed if he moves from the state. Inventories of the estate must be filed within three months of qualification and settle ment within two years or as often as the court requires. Affidavits. An affidavit may be read to verify a pleading, to prove the service of a summons, notice, or other process, in an action; to obtain a provisional remedy, an examination of a witness, a stay of proceedings or a warning order or upon a motion. An affidavit may be made: 1. In this State, before a judge of a court, or a justice of the peace, examiner, notary public, clerk of a court, or master-commission er. 2. Out of this State, before a commissioner appointed by the governor of this State; or before any other person empowered by a commission directed to him by consent of the parties or by order of the court, or before a judge of a court, a justice of the peace, a mayor of a city, or notary public. Appeals. Appeals may be taken from magistrate’s court to quarterly court regardless of the amount involved; from the quarterly court to the circuit court when the amount, exclusive of interest and costs, exceeds Twenty-five Dollars; from the circuit court to the court of Appeals in all cases in which the title to land or the right to enforce a statutory lien is involved and in all cases where the amount in controversy, exclusive of interest and costs, amounts to $500 or more, as a matter of right, but when the amount in controversy exceeds $200 and is less than $500, the granting of the appeal is optional with the court of appeals. Assignments and Insolvency. A deed of Assignment for the benefit of creditors vests in the assignee the title to all of the assignor’s property except such as is exempt by law. Every voluntary assign ment made by a debtor to any person in trust for his creditors shall be for the benefit of all the creditors in proportion to their respective claims. Attachments. The writ may issue against a defendant who is a foreign corporation or non-resident of the State; or has been absent from the State four months: or has left the State with intent to defraud creditors; or has left his county to avoid service of summons; or so conceals himself that summons cannot be served; or is about to remove, or has removed his property or material part out of the State not leaving enough to satisfy claim of plaintiff or defendant’s creditors; or has disposed or is about to dispose of his property, with fraudulent intent to cheat, hinder or delay creditors. Also in action for money due upon contract judgment or award, if defendant have no property in State subject to execution, or not enough to satisfy plaintiff and collection will be endangered by delay in obtaining judg ment and return of nulla bona. Also in action for personal property ordered to be delivered to plaintiff which as to part thereof has been disposed of, removed, or concealed, so that order of delivery can not be executed. Affidavit as prescribed by civil code and bond required, except no bond or affidavit required in action upon nulla bona return. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Bank Collection Code. Given directly following Laws. Banks. Five or more persons may incorporate a bank. The minimum capital requirement is $15,000 and in cities of $50,000 or more, $100,000. When 50% of the capital stock is paid in in cash, the bank may do business. The remainder of the capital stock must be paid in in money within one year after bank is authorized to com mence business. No dividends may be paid to stockholders until there is a surplus fund equal to 10% of the capital stock. If any officer or director of a bank shall receive or assent to the receiving of deposits after knowledge of the bank’s insolvency, such officer or director shall be individually responsible for such deposits and be guilty of felony. All banks and trust companies are under supervision of the Banking & Securities Department in control of the Banking & Securities Commissioner. This department must make periodical examinations and reports of all banks and trust companies, the fees for such examinations to be paid by the institution examined. No bank may permit any person to become indebted to it in a sum exceeding 20% of the capital actually paid in and actual surplus unless secured by good collateral or mortgage on property, the cash value of which above all other encumbrances exceeds such indebtedness. If borrower is a director or officer of the bank he may not become indebted to it in excess of 10% of its paid up capital stock without first securing the excess by a mortgage or pledge of property double in value the amount of such excess. In no event may the indebtedness of any person exceed 30% of the bank’s paid up capital and actual surplus. Stockholders in banks, trust companies, guaranty companies, invest ment companies and insurance companies are liable individually for all contracts and liabilities of such corporation, equally and ratably, and not one for the other, to the extent of the par value of their stock, in addition to the amount of such stock, provided the action to enforce such liability shall be commenced within two years from the time of the transfer. The uniform bank collection code has been adopted. Any bank or trust company, or combined bank and trust company, heretofore or hereafter organized under the laws of this Common wealth. may issue non-assessable preferred capital stock, of one or more classes, to which the double liability shall not apply. Such preferred capital stock shall not be considered as any part of the minimum "capital stock’’ required by section 577 Kentucky Statutes, Carroll’s edition 1930, but shall be considered a part of the “capital stock” of such bank or trust company, or combined bank and trust company, for all other purposes, and in the case of existing corporations shall be issued in the manner now provided for increasing capital stock. The holders of such preferred capital stock shall bo entitled to receive such cumulative dividends at a rate not exceeding six per cent, per annum and shall have such voting and conversion rights, and such control of management, and such preference over the holders of common stock in the event of liquidation, as may be provided in the original or amended articles of incorporation under which said stock is issued. , No issue of preferred stock shall be valid until the par value of all stock so issued shall be paid in. Any bank or trust company or combined bank and trust company, organized tinder the laws of this Commonwealth, may subscribe to and own stock of the Federal Deposit Insurance Corporation, and may subscribe to and become a member of the Temporary Federal Deposit Insurance Fund, and may take any further steps necessary to obtain the benefits of Federal insurance of its deposits. Blue Sky Law. Kentucky’s Blue Sky Law is a comprehensive regulation of the sale of corporate securities. Before transacting business in Kentucky, investment companies must file a detailed statement of their organization and financial condition with the Banking and Securities Commissioner who has the power to investi gate, approve or disapprove any such business proposed. Non residents must appoint the Banking Commissioner as agent for service of process. Dealers and salesmen must obtain licenses from the Banking and Securities Commissioner. Chattel Mortgages and Deeds of Trust. Mortgages, deeds of trust, conditional sales contracts must be recorded to be valid against a purchaser for a valuable consideration notice or against creditors. It is a penal offense for any person to sell or remove from the state any personal property on which there is a recorded mortage with the intent to prevent the foreclosure of the mortgage. To be valid, an assignment of any chattel mortgage must be filed or recorded in the same manner as the original mortgage. Checks. Any person who with intent to defraud shall make or draw or utter or deliver any check, draft, or order for the payment of money upon any bank or depository, knowing at the time of such making, drawing, uttering, or delivery that the maker or drawer has not sufficient funds in or credit with such bank or other depository for the payment of such check, draft or order in full upon its presenta tion; or who after having made, uttered or delivered any check, draft, or other order for the payment of money upon any bank or other depository shall withdraw or cause to be withdrawn, the money or any part thereof to the credit of the maker of such draft, check or other order for the payment of money without leaving with such bank or other depository a sum sufficient to cover such check, draft, or other order for the payment of money, shall be guilty of a mis demeanor, if the amount of such check, draft or order be under Twenty Dollars, and if the amount of such check, draft or order be for Twenty Dollars or over, he shall be guilty of a felony.** The making, drawing, uttering or delivering of such check, draft, or order as aforesaid, shall be strong prima facie evidence of intent to defraud. Collections. Uniform Bank Collection Code as recommended by American Bankers Association, see page 2333. Contracts. A seal or scroll is In no case necessary to give effect to a deed or other writing. All unsealed writings stand upon the same footing with sealed writings, having the same force and effect, and the same actions may be founded upon them. The State or county seal, or the seal of a court, corporation, or notary to any writing has not. however, been dispensed with. Conveyances. (See Acknowledgments.) Corporations. Formed under the general laws for transaction of any lawful business. Special regulations prescribed for foreign cor porations doing business in the State, and for banking, building and loan, trust, insurance, and railroad companies. Cumulative voting for the election of directors prescribed. Stockholders in banks, trust companies, guaranty companies, investment companies and insurance companies are liable equally and ratably, and not one for the other, for all contracts and liabilities of corporation, to extent of the amount of their stock at par value in addition to amount of such stock: but persons holding stock, as fiduciaries, are not personally liable, but estates in their hands are in same manner and to same extent as other stockholders, and no transfer of stock operates as a release, of any such liability, existing at time of transfer, provided action to enforce the liability be commenced within two years from time to the transfer. Articles acknowledged and recorded like deeds in county in which principal place of business is situated, and a copy thereof filed and recorded in the office of the secretary of State. After such filing and recording, and payment to State of license tax of one-tenth of 1 per cent on its capital stock, corporation is deemed organized; but, before transacting business other than with its own stockholders, at least 50 per cent of stock must in good faith be subscribed, payable at such times as board of directors may require. The issue of no par value stock is permitted where provided for in the articles and such stock is deemed fully paid when consideration determined on by board of directors is paid. But for purposes of cor poration license or franchise taxes value is fixed at $100.00. BANKING AND COMMERCIAL LAWS—.KENTUCKY Courts. General civil and criminal jurisdiction Is vested In cir cuit courts which hold terms in each county as provided by statute. Credits. By an Act approved March 14, 1914, it is provided that a person who shall knowingly in person or through any agency make any false statement in writing with intent it shall be relied upou, respecting his financial condition, or means or ability to pay. for the purpose of procuring delivery of personal property, the pay ment of cash, the making of a loan or credit, or extension of credit, and procures upon faith thereof either or any of the things or benefits mentioned, shall be guilty of a felony and upon conviction, shall be confined in the penitentiary not less than one nor more than five years. Days of Grace. (See Notes and Bills of Exchange.) Depositions. Depositions may be taken in this state before an examiner appointed by a Judge of a circuit court, a Judge or Clerk of the court, Justice of the Peace and Notary Public. Depositions may be taken out of this state before a Commissioner appointed by Gov ernor of this state or before a Judge of a court, a Justice of the Peace, Mayor of the city, Notary Public or any other person empowered by a commission issued to him by consent of the parties or order of court If deposition is taken on interrogatories, neither party is allowed to be present, either in person or by counsel. The officer’s certificate must state when and where the deposition is taken, that the witness was duly sworn before giving it and that it was written and subscribed by him in officer’s presence, or was written by officer in presence of witness and read to and subscribed by witness in presence of officer. Descent and Distribution of Property. The real estate of a person dying intestate shall descend in parcenary to his kindred, male and female, in the following order, viz: (1) To his children and their descendants; if none, then (2) to his father and mother equally if both be living; if either be dead, the whole estate descends to the one living; if both be dead, then (3) to his brothers and sisters and their descendants; if none, then (4) one moiety of the estate shall pass to the paternal and the other to the maternal kindred, in the following order; (5) to the grandfather and grandmother, or which ever may be living; if both are dead, then (6) to uncles and aunts and their descendants: if none, then (71 to great grandfather and great grandmother, and so on in other cases without end, passing to the nearest lineal ancestors and their descendants. (8) If there Is no kindred to one of the parents, the whole shall go to the kindred of the other. If there is neither paternal nor maternal kindred, the whole shall go to the husband or wife of the intestate, or if he or she be dead, then to his or her kindred as if he or she had survived the intestate and died entitled to the estate. When any or all of a class first entitled to take are dead, leaving descendants such descend ants shall take per stirpes, that is to say, by representation, the shares of their respective deceased parents. Collaterals of the half blood shall inherit only half so much as those of the whole blood. In making title by descent, it shall be no bar to a party that any ancestor through whom he derives his descent from the Intestate, is or has been an alien. Bastard can inherit in the descending line only from the mother and her kindred, and can transmit inheritance in the descending line only to the mother and her kindred. Dower. (See Husband and Wife.) Escheats. Land held by a corporation for more than 5 years which is not proper and necessary to carrying on its legitimate business becomes subject to escheat. Land held by a non-resident alien for more than 8 years becomes subject to escheat. Executions may issue upon judgment any time until collection of It is barred by limitation, but no execution shall issue on any judg ment, unless ordered by the court, until after ten days from rendition. Execution constitutes lien on property of debtor from time it reaches hands of proper officer. Provided that such lien shall be void as to a purchaser for value without notice unless and until notice of such exe cution shall be filed in the office of the County Clerk. Execution may be replevied for three months, any time before sale under same, by delendant giving to the officer an obligation (replevin bond) payable to plaintiff, with good security for the amount thereof, interest and costs. A judgment to enforce a lien cannot be replevied. No replevy allowed upon judgment against any collecting officer, attorney at law, or agent, for a delinquency or default in executing or fulfilling duties of his office or place, or for failing to pay over money collected by him in such capacity, nor against a principal by his surety, nor upon a debt due by obligation having the force of a judgment, nor upon Judgment for specific property, or for the property, or its value. If land sold does not bring two-thirds of appraiser’s valuation, defend ant and his representatives have right to redeem within a year from the day of sale, by paying purchaser or his representatives original purchase money and ten per centum per annum interest. Land in which the execution defendant has a legal or equitable title or a con tingent remainder, a defeasible fee, may be taken and sold under execution. Exemptions. The following property of persons with a family resident in this Commonwealth, shall be exempt from execution, attachment, distress, or fee bill, namely: Two work beasts, or one work beast and one yoke of oxen; two plows and gear; one wagon and set of gear, or cart or dray; two axes, three hoes, one spade, one shovel; two cows and calves; beds, bedding and furniture sufficient for family use; one loom and spinning wheel and pair of cards; all the spun yarn and manufactured cloth manufactured by the family necessary for family use; carpeting for all family rooms in use; one table; all books not to exceed seventy-five dollars in value; two saddles and their appendages; two bridles; six chairs; or so many as shall not exceed ten dollars In value; one cradle; all the poultry on hand; ten head of sheep, not to exceed twenty-five dollars in value; all wearing apparel; sufficient provisions, including breadstuff and animal food to sustain the family for one year; provender suitable for live stock, if there be any such stock, not to exceed seventy dollars In value; and if such provender be not on hand, such other property \s shall not exceed such sum in value: all washing apparatus, not to exceed seventy-five dollars in value; one sewing machine, and all family portraits and pictures: one cooking stove and appendages, and other cooking utensils not to exceed in value twenty-five dollars; ninety per centum ol the salary, wages, or income earned by labor, of every person earning a salary, wages, or income of seventy-five dollars or less per month, provided that the lien created by service of garnish ment, execution, or attachment, shall only affect ten per centum of such salary, wages, or income, earned at the time of service of process; of the salary, wages, or income earned by labor, of very person earning a salary, wages or Income in excess of seventy-five dollars per month, sixty-seven and one-half dollars per month and no more shall be exempt. Tools of a mechanic, not exceeding one hundred dollars In value libraries of ministers of the Gospel, professional libraries of lawyers professional libraries and instruments of physicians and surgeons not to exceed in value five hundred dollars. In addition to personal property there Is for actual bona fide housekeepers with a family resident in this Commonwealth a homestead exemption of so much land Including the dwelling house and appurtenances owned by debtor as shall not exceed in value one thousand dollars. This does not extend to a mortgage on or purchase money due for the land or for debts or liability existing prior to the purchase of the land, or of the erection of the improvements thereon. Personal property or money on hand or In bank to the amount of *750.00 shall be exempt from distribution and sale and shall be set apart by the appraisers or the estate of an intestate to his widow and children, or, if no widow, to his infant children or child surviving him. The appraisers shall state in their appraisement the money or the articles and value of each set apart by them to the widow, or Infants. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1791 separately to the articles appraised for sale, but if the widow he present at the time of the appraisement, or any one authorized by her in writing, she may make her selection out of the property appraised to the amount of said $750.00 and said appraisers shall so report. The provisions of this section shall apply to cases where the husband dies testate, and tne widow renounces the provisions of the will in the time prescribed by law. ,T Holidays. The legal holidays are: Sundays; January 1 (New 1 ear s Day); January 19 (Robert E. Lee’s birthday); February 12 (Lincoln’s birthday); February 22 (Washington's birthday); May 30 (Memorial Day); June 3 (Confederate Memorial Day); July 4 (Inde pendence Day); the first Monday in September (Labor Day); Octo ber 12 (Columbus Day); November 11 (Armistice Day); Thanksgiving Day and all days appointed by President of the United States or by the Governor of this State as of days of fasting and Thanksgiving; and December 25 (Christmas Day). All such legal holidays shall be treated as Sunday. If any of those days named as holidays shall occur on Sunday, the next day thereafter shall be observed as a holiday. Husband and Wife. By an act which took effect Juno 12, 1894, the following important changes were made in the common law of coverture which theretofore prevailed in Kentucky. Marriage gives to the husband during the life of the wife no interest in any of the wife’s property. She has full power to contract and to bind herself and her property, except that she can not bind herself to answer for the debt, default, misdoing of another, except as to property set apart for that purpose by mortgage. She mav sell and dispose of personal property as if unmarried, but may not sell or convey real estate unless her husband unites in the contract, or conveyance unless empowered to do so by decree of court, in case of insanity conviction of felony, or abandonment by the husband. After the death of either husband or wife the survivor shall have a life estate in one-third of all the realty of which the decedent was seized in fee simple during the coverture unless such right shall have been for feited or relinquished. Such survivor has also absolute title to onehalf the personalty of the decedent left after the payment of debts Abandonment and living in adultery by either party, or divorce works a forfeiture of these rights. Interest. The lawful rate of interest is 6 per centum per annum and contracts for a greater rate are void as to the excess of interest’ 1 he Court of Appeals has refused repeatedly to allow attorneys fees to be collected. Under Sections 883 I—1, etc., a company engaged in making loans of $300.00 or less may obtain a license from the Banking Commissioner and legally charge 3 ]4 % per month on the unpaid balance, on loans of less than $150.00, and 2 y2% per month on unpaid balance on loans of more than $150.00 not exceeding $300.00. Judgments. A judgment does not constitute a lien on property In this State. All judgments bear interest from their dates. Judg ment can be kept alive for 15 years additional by having execution issued at any time within 15 years after date of judgment. (Spe Executions and Limitations.) Limitations. The following are the periods within which actions must be brought, the time commencing to run from the accrual of the cause of action. Fifteen years: Actions to recover real property; actions upon judgments and written contracts, except negotiant instruments actually negotiated. Seven years: Actions by senior patentees against junior patentees, who have held possession for seven years. Five years: Actions upon merchants’ accounts for goods sold; actions upon verbal contracts; upon a liability created by statute actions for trespass to real or personal property or for damages for withholding same; for the specific recovery of personal property actions upon negotiable instruments, though as to the makers of an undiscounted note it is fifteen years and as to sureties seven years; actions upon accounts between merchants, and actions for relief from fraud or mistake and all other actions not arising on contracts and not included in the 1 and 2 year statutes. One year: Actions for injury to person or character and for broach of promise of marriage. Merchandise in Bulk. An Act of the 1920 Legislature provides that when any one who shall buy any stock of goods in bulk or fixtures before he shall deliver to the vendor the purchase price or any promissory note therefor shall obtain from the vendor a verified written statement of all the creditors of the vendor together with their addressee and the amount of indebtedness due to each, also an accurate in ventory of the stock or fixtures to be purchased and making it the duty of the vendor to furnish such statement under oath. Upon receiving such a statement the purchaser shall notify, personally or by registered mail, each of the creditors of said vendor as appears on the list, of the proposed sale, the price to be paid therefor the conditions of the sale and a copy of the statement furnished by the vendor. This notice shall be given or sent at least ten days before r he completion of the sale. If any such purchaser fails to obtain a verified statement from the vendor or to give the notice to the creditors as above or to see that the proceeds of the sale are prorated among creditors according to dignity of their claims then such sale or transfei shall be fraudulent and void and shall operate as a general assignment for the benefit of the creditors of the vendor and the purchaser shall at the suit or option of the creditor be held liable to the creditors for the fair value of all property so bought or sold, provided, however such suit must be brought within four months. Negotiable Instruments. The Uniform Negotiable Instruments Law was enacted June 13. 1904. (See complete text following “Digest ot Banking and Commercial Laws.’’) Notes and Bills of Exchange. The uniform negotiable Instru ments law was enacted June 13, 1904. Section 1 declares that an Instrument to be negotiable must conform to the following require ments. (1) It must be in writing and signed by the maker or drawer. (2) Must contain an unconditional promise or order to pay a certain sum in money. (3) Must be payable on demand or at a fixed or determinable future time. (4) Must be payable to the order of a specified person or to bearer. (5) Where the instrument Is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. Days of grace are abolished The signature of any party may be made by an agent duly authorbed in writing thus differing from the uniform negotiable instruments law as enacted elsewhere. Every negotiable instrument is payable at the time fixed therein; when the day of maturity falls upon Sunday or a holiday, the instrument is payable on the next succeeding business day. The Negotiable Instruments Law has been amended and enlarged by Acts of 1930 which should be consulted by those interested. Powers of Attorney. Powers of attorney to convey real or per sonal property may be acknowledged, proved and recorded in the proper office in the manner prescribed for recording conveyances. If the conveyance made under a power is required by law to be recorded or lodged for record to make the same valid against creditors and pur chasers. then the power must be lodged or recorded in like manner. Protest. Where any negotiable instrument has been dishonored It may be protested for non-acceptance or non-payment as the case may be; but protest is not required, except in the case of foreign bills of exchange. It is the safer practice to protest in all cases, because In all cases notice of dishonor is necessary to charge parties secondarily liable. Sales. On March 24, 1928 the uniform sales act drawn by Professor Williston was enacted without change from the original as drawn by Professor Williston. Taxes. State and County taxes are due on March 1st annually unless otherwise provided. Assessments are made by the state anil counties as of July 1st in each year for taxes for the following year. The Sheriff is collector of state, county and school district taxes. Municipalities select their own collector. BANKING AND COMMERCIAL LAWS—LOUISIANA 1792 Municipal taxes are due at different dates as may be fixed by the municipal government. . _ , ^ „ . All taxes on real estate are a lien thereon from the date of assessment. The state gasoline tax is 5 cents per gallon. A sales tax of 3% of gross receipts is levied on the sales of practically every product with some minor exceptions. The state has no income tax. Unclaimed Bank Deposits. Every bank organized under the laws of Kentucky or doing business under any laws of Kentucky, must annually, in January, publish in at least two issues of a newspaper published in the County in which the bank is located, a statement under oath of its Cashier, of all deposits made with it and of all the dividends and interest declared and payable by it which, at the date of such statement, have remained unclaimed by any person authorized to receive the same for five years giving the time when, and the name of, the person by whom the deposit was made and the name of the person in whose favor the dividend or interest was declared and when and from what source derived. Wills, Any person of sound mind and over twenty-one years of age may make a will. Wills must be In writing with the name of the testator subscribed thereto either by himself or by some other person In his presence and by his direction. If not wholly written by the testator the subscription must be made or the will acknowledged by the testator in the presence of two witnesses, who shall subscribe their names In the presence of the testator. The will of a person domiciled out of this State is valid as to personalty, if executed accord ing to the law of the domicile; but to be valid as to lands, it must be executed as required by the law of this State. The county court has exclusive original jurisdiction over the probate of wills. Holo graphic wills are valid. SYNOPSIS OF THE LAWS OF LOUISIANA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Messrs. Merrick. Schwarz. Guste, Barnett & Rbdmann Attorneys at Law, Canal Bank Bldg., New Orleans. (See Card in Attorneys' List.) Accounts. (See Acknowledgments.) The uniform foreign (Act 154 of 1916), and domestic (Act 226 of 1920) acknowledgment laws have been adopted. Acknowledgments mav be taken within the state by a notary public or by a recording officer. Acknowledgments may be taken in the United States, outside of the state, by any judge, justice of the peace, notary, commissioner for Louisiana, or by any officer authorized to take acknowledgments where he acts. Acknowledgments may be taken In foreign countries by any am bassador, minister, envoy or charge d affairs of the United States, In the country to which he is accredited, or before any officer of the United States, a notary public, or a commissioner or other agent of Louisiana authorized to take acknowledgments, if such officers have an official seal, and are commissioned or accredited to act where the acknowledgment is taken. Any commissioned officer of the army or navy of the United States Is authorized to take acknowledgments in any foreign country in which he may be serving. (Act 192 of 1918.) All acknowledgments taken within the United States must be witnessed by two witnesses over the age of fourteen years, who must subscribe the certificate of acknowledgment. If the party making acknowledgment be blind, three witnesses are required. Witnesses are not necessary when acknowledgments are taken outside of the United States. The officer taking the acknowledgment must not act as a witness. While a female may act as a witness, this is of doubtful advisability. The acknowledgment of a married woman may be taken as though •he were single, separate examination being unnecessary. No authentication is required of certificates of acknowledgments taken in the state, or taken in foreign countries, or taken in the United States by notaries public, or commissioners for Louisiana, under their official seals. Certificates of acknowledgments taken in the United States before other officers must be authenticated by a certificate of a secretary of state as to the capacity of the officer. Authentication for use out of the state may be by the secretary of •tate, whose fee is one dollar, or by any clerk of a court of record, civil district or federal court, whose fee is fifty cents. Actions. Commenced by petition setting forth cause of action, articulated In numbered paragraphs, signed by plaintiff or his attorney and duly sworn to. Plaintiff must give resident security for costs or make deposit to cover same if demanded. (See Act 300 of 1914 regulating pleadings and practice as amended by act 27 of 1926.) After filing of petition, defendant is cited to appear ten days after re ceipt of citation in District Courts and Justice of Peace courts outside of city of New Orleans. One day additional for every ten miles his residence is distant from court. Delay in no case to exceed fifteen days. In city courts of New Orleans, defendant must appear three days after receipt of citation. Neither day of service nor day on which answer must be filed is included in delay. If defendant fails to appear, judge ment by default is rendered against him. In district courts such judge ment is confirmed two judical days after preliminary entry of default. In Justice of Peace courts judgment of default is confirmed the same day as that on which default is entered. Administration of Estates by executors, administrators, or tutors who are ex-officio administrators—also by dative executors where there is no heir present or agent of heir, pubhc administrator takes charge in New Orleans. A non-resident executor of a will must in all cases give bond; a resident does not unless required by creditors. Administrators and executors of other states must open succession of deceased in the courts of this State, and be recognized as such here before they can sue or be sued or transfer property in this State. Stock In local corporations may be transferred by non-resident executors, etc., without the necessity of securing an order from the local court, but no transfer can be made until the inheritance tax is adjusted. No debts can be paid by administrator without authorization of probate court The administrator or executor presents to the court an account or tableau of distribution setting forth the payments and disbursements he proposes to make. Parties interested are notified by publication to show cause within ten days why the account so filed should not be approved. Any party interested may ?PP<>se the account by opposition in writing at any time within the said ten days In absence of opposition account is homologated upon production of satisfactory evidence by administrator or executor, and the funds ordered distributed in accordance therewith. Acknowledgments. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Claims against estates should be presented in writing to the admin istrator or executor. Should he approve the same in writing, no further action is required except to see that the claim is placed upon his account when filed. Should he decline to recognize the claim, creditor may file suit against succession representative and obtain a Judgment to be paid in ordinary course of administration. If there Is no danger of prescription, creditor may await filing of account and then oppose same if claim is not included. Affidavits. (See Acknowledgments.) Aliens. No alien who is ineligible to citizenship of the United States may hold land or any real right. Aliens may not vote. Arbitration. Agreements to submit to arbitration recognized by law. “Louisiana Arbitration act” adopted Act 262 of 1928. Arbi trators must be sworn, otherwise decision is not binding. State board of arbitration of labor troubles established. [Act 139 of 1894.1 Assignments and Insolvency. State insolvent laws superseded by National Bankruptcy act. Attachment. Writs of attachment issue on application of credi tor, under oath, when debtor about permanently leaving state, without possibility in ordinary course of obtaining or executing judgment previous to departure, or when such debtor has already left state permanently, when the debtor resides out of the state; when he conceals himself to avoid being cited; when he has mortgaged, assigned or disposed of, or is about to mortgage, assign, or dispose of his prop erty rights, or credits, or some part thereof, with intent to defraud his creditors or give an unfair preference to some of them; and when he has converted, or is about to convert, his property into money or evidences of debt with intent to place It beyond the reach of his creditors, or. if debt not due. is about to remove his property out of the State. Creditor must furnish bond equal to the amount claimed to be due. with at least one solvent surety, residing within the juris diction of the court, conditioned for payment to any party injured by Issuance of writ of all damages sustained by him In case it is decided that the attachment was wrongfully obtained. (Act 119 of 1916). Bond for $250 is sufficient if debtor resides outside of state but bond may be increased to amount of claim upon order of court at demand of debtor. Garnishment may be had as an accessory either to a writ of attachment or fieri facias Attachment may now issue for an offense, quasi offense or tort if defendant is non-resident (Act 215 of 1920). Banks. Capital Stock and Surplus Requirements. Savings banks must have a capital stock of $30,000,00, all fully paid, m towns of less than 15,000 population; or $50,000.00 in towns of more than 15 000 population, and less than 30,000 population; or $100,000.00 in towns of more than 30,000 population. Corporations carrying on general banking business must have capital of $25,000.00 in towns ot less than 3,000 population; or $50,000.00 in towns of more than 3,000 population and less than 30,000 population; or $100 000.00 in towns of more than 30,000 population. Surplus of all banks must be 50% of the capital stock. Reserve. A cash reserve of 20% of the demand deposits is required, 4% to be kept on the premises or on deposit in the Federal Reserve Bank in cash. For the remainder of the liabilities for demand depos its, an amount equal thereto in discounted paper or bonds, stocks, etc., should be maintained as reserve. Incorporators. Not less than seven persons are required to form a corporation for the purpose of carrying on general banking business. Not less than five persons may form a savings or trust bank. Directors. There must be a board of directors of not less than five, nor more than 30 members, the majority of whom must be citizens of Louisiana, owning at least $100.00 of stock. Supervision—Examination and Reports. A State Bank Commis sioner is appointed by the Governor with the consent of the Senate, who examines the banks twice each year, and reports thereon to the Legislature at the commencement of each session. In addition all banks must file sworn reports with Commissioner four times each year. Loan Limitations. Loans cannot be made to one borrower for more than 20% of the bank’s capital stock and dec ared surplus. However loans secured by good collateral may be made to one bor rower for one-half of the capital and declared surplus and loans to one borrower of an amount not greater than the capital and declared surplus may be made when the loan is secured by the pledge of obliga tions of the W. S. or of the State of Louisiana. Loans to any em ployees are prohibited. Kinds of Banks. Companies organized under the banking laws of this state consist of banks of deposit, discount, exchange and circu lation, savings banks, safe deposit and trust banks. Branch Banks. No banking association or savings bank with capital stock of less than $50,000 capital may locate or operate branch offices The total number of branch banks permitted any one bank is determined according to a scale dependent upon the capital of the bank. Stockholder's Liability. No stockholder is liable for more than the unpaid portion of the original purchase price of his stock. Act No. 180 of 1934 authorizes banks of this State to contract for Federal Deposit Insurance. The act further provides that upon assuming the powers of receiver or liquidator of a bank in this State, the Federal Deposit Insurance Corporation shall have the right and power to enforce the individual liability, under the laws of this State, of each stockholder of anv such banking institution, when it ascertains that the assets thereof will be insufficient to pay its debts and liabilities. Chattel Mortgages. As provided for by Act 198 of 1918, any kind of movable property may be mortgaged for debts, for money loaned, future advances or to guarantee contractual obligations. The act ot mortgage must be passed before a Notary 1 ublic ana two witnesses and must be recorded in Parish where property is situated and Parish where mortgagor resides in order to affect third persons without notice. Chattel so mortgaged cannot be transferred from one parish of the State into another without written consent of mortgagee. Inscription of chattel mortgage must be renewed within five years. Collaterals must be delivered to be effectual. Act 9 of 1914 makes it a felony for a customer of bank to wrongfully dispose or collateral security pledged to bank. Uniform Bills of Lading law obtains. (Act 94 of 1912.) Conditional Sale. Act 119 of 1918 makes lawful a conditional sale of tank cars providing for retaking of car by conditional vendor without right of redemption being given to vendee, all payments of such date of retaking being forfeited. Act 111 of 1894 provides for conditional sale of railway equipment. Other conditional sales or movable property are ineffective as between the parties or innocent third persons. Conveyances. All agreements affecting real property must be In writing, and transfers and mortgages, etc., must be recorded in the place where the property is situated to affect the rights of third persons Deeds are made under private signature or by act passed before a notary public in the presence of two witnesses. Bpth vendor and vendee sign, though signature of vendee is not essential, as any act of acceptance will answer. The notary in Parish of Orleans pre serves the originals of deeds passed before him and certified copies given by him are received as evidence in the courts. Every notarial deed should contain (1) date of act and place where it was passed, (2) names and surnames and qualities of contracting parties, (3) descrip tion of the property, etc., (4) price of transfer and terms and conditions. (5) The marital status, of all parties must be given. Married women may now dispose of separate property without authorization of husband or court. The husband acts alone in the sale of community property; BANKING AND COMMERCIAL LAWS—LOUISIANA the iignature of the wife being unnecessary. Either husband or wife, if husband refuses to do so, may designate family home by registration. If so designated, wife's signature necessary to pass title. Corporations. Any number of persons, exceeding six. may form themselves into corporations for literary, scientific, religious, and charitable purposes; for works of public improvement, and generally all works of public utility and advantage; and any number of persons, not less than three, may form themselves into a corporation for the purpose of carrying on mechanical, mining, or manufacturing business, except distilling or manufacturing intoxicating liquors, with a capital not less than $5,000 or more than $1,000,000. Any number of per sons. not less than three, may form themselves Into a corporation on complying with the general corporation taws, ror the purpose of carry ing on any lawful business or enterprise not otherwise specially pro vided for. except banking and insurance, homestead and building and loan associations. By act 250 of 1928 the corporation law of Louisiana has been largely revised, generally along the lines of the uniform corporation law but with distinctive features. The act is effective as from January 1st, 1929. The legislature can not pass a special act conferring corporate powers. Corporation committing a trespass or damage may be sued at place where it occurred. [Act 130 of 1926.] (See Act 154 of 1902 for formation of corporations for works of public improvement.) Act 120 of 1902 provides for organization, etc., of local and foreign building and loan or homestead associations. No corporation can declare dividends out of its capital stock. Annual meetings of corporations may be held anywhere within or without the state. Foreign Corporations may be licensed and taxed by a mode differ ent from that provided for home corporations. No domestic or for eign corporations shall do any business in this State without having one or more known places of business and an authorized agent or agents in the State upon whom process may be served. All corpora tions (except mercantile corporations) domiciled out of the State and doing business in the State in default of filing with the secretary of state a declaration of the place of its locality or domicile together with a resolution authorizing the appointment of an agent together with a power of attorney appointing an agent in the State upon whom service of process may be made, may be sued upon any cause of action in any parish where the right of action arises and such corporation must show its principal place of business and the places of business it proposes to have in Louisiana. Foreign corporations must file in office of secretary of state a written declaration setting forth and containing the place or locality of its domicile, the places in the State where it is doing business, and the name of its agent or other officer in this State upon whom process may be served. (Act 54 of 1904 amended by Act 284 of 1908. Act 284 of 1908 amended by Act 243 of 1912. See Act 194 of 1912.) Act 107 of 1922 requires foreign corporations doing business in this state to pay a tax of one-twentieth of 1 per cent on the amount of the capital stock employed in this state. Act to operate prospectively only. Foreign Corporations are denied the right to sue in the courts of this state unless qualified to do business herein. (Act 27 of 3rd Extra Session of 1935.) A« to non trading corporations, see Act 259 of 1914. Act No. 16 of 1934 provides for the cancellation of the charter of any corporation failing to make any report or pay any tax as pro vided by law. Act No. 18 of 1934, as amended by Act No. 25 of the First Extra Session of 1934, provides for the levying of a franchise tax on corporations doing business in this state, and provides for annual report by them. Acts Nos. 12 and 23 of the Third Extra Session of 1934 provide that domestic and foreign corporations are required to keep detailed books showing stock, ownership, transfers of stock, assets, liabilities, and business transaction in Louisiana. Courts. Terms and Jurisdiction. In parishes other than Orleans; Justices’ courts, concurrent with District courts up to $100. 2. District courts, concurrent with justices’ courts, up to $100, exclusive for all civil matters over $100, and in all probate matters and appellate jurisdiction in all civil matters in justices’ courts. In Orleans parish, 1 City courts, exclusive up to $100. Concurrent with Civil District court from $100 to $300. 2. Civil District court, concurrent up to $300, exclusive over $300. Justices and city courts open at all times, in parishes other than Orleans, district courts shall hold continuous sessions during ten months of the year. In parish of Orleans, civil district court sits during 9 and ]4 months of the year, but shall remain open on all legal days during the whole year for granting interlocutory orders, issuing writs, trials of rules to quash same, trying proceedings Instituted or on appeal therein by a landlord for the possession of leased property, partition proceedings, and for sucn special probate and insolvency business, as the courts en banc may by rule determine. On all amounts up to $2,000 inclusive, and in suits for damages or death caused by wrongful injury, an appeal may be taken to the court of appeals, from the city and district courts respectively, and on all amounts over $2,000, except suits for damages or death caused by wrongful injury, to the state supreme court. An appeal lies on both law and facts. Appeals from the city courts shall be tried de novo, except suits for amounts between $100 and $300. Days of Grace. Abolished. Depositions. To take testimony of witness residing out of parish or State it is necessary to file motion duly sworn to showing non-resi dence and materiality of evidence. Written interrogatories are preared and served on opposite party, or his counsel, who has three days i which to cross. Commission then issues, directed to some proper officer, with interrogatories and cross interrogatories annexed^ who must cause witness to appear before him to answer under oath the direct and the cross interrogatories. He should reduce answer to writing, read same to witness and cause witness to sign same. The officer then prepares a process verbal of the whole, attaches it to the commission, interrogatories, etc., and should return same to the court Issuing the commission within the time fixed therein for taking the deposition. The deposition of a fugitive f rom justice is not admissible In evidence. (Also see Act 176 of 1910 and 98 of 1926.) The uniform foreign depositions act has been adopted (Act 34 of 1922). An additional method of taking depositions of witnesses residing out of the parish, but in the state, or residing out of the state is provided by Act No. 143 of 1934. B Descent. If one dies leaving no descendants, but a father and mother and a brother and sister, or descendants of these last, the succession is divided into two equal parts, one goes to father and mother, the other to brothers and sisters or their descendants. If either father or mother of deceased dies before him, the portion which would have been inherited by such deceased parent goes to the. brothers and sisters of the deceased, or tneir descendants. If deceased left neither descendants nor brothers nor sisters, nor descendants from them, nor father nor mother, but only other ascendants, they inherit to the exclusion of all collaterals. If ascendants in paternal and maternal lines are all of the same degree, the estate is divided into two parts, one goes to ascendants on the paternal and the other to ascendants on the maternal side. If there is in the nearest degree but one ascendant in the two lines such ascendant excludes all other ascendants of a more remote degrea If one dies leaving no descen dants, and his father and mother survive, his brothers and sisters, or their descendants, take half of his estate. If the father or mother only survive, brothers and sisters, or their descendants, take threefourths. If one dies leaving no descendants nor father nor mother, his brothers and sisters, or their descendants, take ail the estate. The partition of the half and three-quarters, or the whole of the suc cession falling to brothers and sisters, as above set forth, is made in equal portions, if they are of the same marriage; if they are of different marriages, the succession is equally divided between the paternal and the maternal lines of the deceased, the Germaine brothers and sisters https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1793 taking part in the two lines, the paternal and maternal brothers and sisters each in their respective lines only; if there are brothers and sis ters on one side only, they inherit the whole succession to the exclusion of all other relations of the other line. If deceased died without de scendants, leaving neither brothers nor sisters, nor descendants from them, nor mother nor father, nor ascendants in the paternal or ma ternal lines, his succession passes to his other collateral relations, the one nearest in degree excluding the others. When the deceased has left neither lawful descendants nor lawful ascendants, nor collateral relations, the law calls to his inheritance either the surviving husband or wife, or his or her natural children, or the State. If natural mother left no lawful children or descendants, her natural children, acknowl edged by her, inherit to the exclusion of her father and mother and other ascendants or collaterals of lawful kindred. Natural children inherit from their natural father, who has acknowledged them, when he has left no descendants nor ascendants, nor collateral relations, nor surviving wife, and to the exclusion only of the State. Donations inter vivos or mortis causa cannot exceed two-thirds of the property of the disposer if he leaves at his decease a legitimate child, one-half If he leaves two children, and one-third if he leaves three or more. If he leaves no descendants but a mother or father or both, cannot exceed two-thirds. The remaining half, third or fourth, as the case may be is the legitime of the child or children and father and for mother. Tax: To descendants, etc., 2 per cent from $5,000 to $20,000, 3 per cent above $20,000. To collaterals, 5 per cent on $1,000 to $20,000, 7 per cent above $20,000. To strangers 5 per cent from $500 to $5,000, 10 per cent above $5,000. Exemptions: $5,000 for direct descendant, ascendant, or surviving spouse, $1,000 to collaterals, $500 to strangers. Bequests to educational, religious or charitable institutions located within the state are exempt. R. C. C. 915 amended to read, “When either husband or wife shall die, leaving neither a father nor mother nor descendants, and with out having disposed by last will and testament of his or her share of the community property, such undisposed of share shall be inherited by the surviving spouse in full ownership. In the event the deceased leave descendants his or her share in the community estate shall be Inherited by such descendants in the manner provided by law. Should the deceased leave no descendants, but a father and mother, or either, then the share of the deceased in the community estate shall be divided in two equal portions, one of which shall go to the father and mother or the survivor of them, and the other portion shall go to the surviving spouse. Note: This article controls community property; for inheritance of separate property by surviving spouse see above. Divorce. (See Separation from Bed and Board.) Dower. (See Married Women.) Employers Liability Act. There is a general Employers Liability Act in the State setting forth special compensation for various injuries. Execution. Property taken under a writ of fieri facias must be advertised and appraised, and can not be sold for less than two-thirds of the appraised value, until it has been re-advertised. Advertise ments of movables three times in ten days—of real estate once a week for thirty days. If two-thirds of appraised value is not bid, property must be re-advertised for fifteen days, and sold on a credit for twelve months for whatever it will bring. There is no redemption of property sold under execution or mortgage. No stay of execution Is given except on appeal, and execution may issue at any time after the delay for appealing suspensively has expired. Act 113 of 1906 authorizes sheriffs and constables to put purchaser of seized property In possession. On proper petition the court can order an examination at a judgment debtor as to his assets and liabilities. (Act 198 of 1924,) Exemptions. 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, means or property of wife deducted from exemption of husband. If the property exceeds $2,000 in value, it may be sold. Beneficiary entitled to $2,000 of proceeds. No registry required In parishes other than Orleans. Surviving spouse or minor child or children may claim benefit of this exemption. Widow or minor children surviving, entitled to $1,000 out of deceased husband’s estate, if in necessitous circumstances, by pre ference over all other debts except those secured by vendor’s privilege, conventional mortgage, and expenses incurred in selling the property. Sheriff or constable cannot seize linen and clothes belonging to debtor or his wife, nor his bed, bedding or bedstead, nor those of his family, nor his arms and military accoutrements, nor the tools and instru ments and books and sewing machines, necessary for the exercise of his or her calling, trade or profession by which he or she makes a living; nor shall he, in any case, seize rights of personal servitude, of use and habitation, of usufruct to the estate of a minor child, nor the Income of dotal property, nor money due for salary of a Public Officer, nor the cooking stove and utensils of said stove, nor the plates, dishes, knives and forks, and spoons, nor the dining table chairs, nor washtub, nor smoothing irons and ironing furnaces nor family portraits belonging to debtor, nor musical instruments played or practiced on by any member of the family, nor any poultry or fowls belonging to debtor for family use. Also proceeds of life, health and accident insurance exempt, except for debt secured by pledge of policy or rights under policy. (Act 88 of 1916.) In the case of all other laborers, wage earners, artisans, mechanics, engineers, firemen, carpenters, bricklayers, secretaries, bookkeepers, clerks, employees on a commission basis, or employees of any nature or kind whatever, whether skilled or unskilled, 80% of the wage, salary, commission or other compensation thereof cannot be seized or garnisheed, but only 20% of such compensation shall be subject to such seizure or garnishment, and in no case shall the seizure or garnishment infringe upon a minimum of $60 per month of such salary, wage, commission or other compensation, which said $60 per month shall always be exempt. (Act. 183 of 1932.) Act No. 2 of the Second Extra Session of 1934 provides for the relief of debtors who are unable to meet their obligations for the time being, by petitioning to the State Bank Commissioner who shall act as the Debt Moratorium Commissioner, with the power to suspend all laws or parts of laws relative to the enforcement of public and private debts, after notice and hearing to the creditors. Fraud. Fraud vitiates of contracts. See Act 114 of 1912. Mis demeanor to purchase goods, wares or merchandise on credit and dis pose of same with intent to defraud and so forth. Unlawful to sell stock of goods, wares, merchandise and fixtures in bulk out of usual course of business without complying with “bulk Sales Law.” See Act 270 of 1926. Garnishment. Wages earned out of this State and payable out of this State, shall be exempt from attachment or garnishment in all cases where cause of action arose out of this State, and it shall be the duty of garnishees in such cases to plead such exemptions unless the defendant Is actually served with process. (Act 165 of 1904.) (See Attachment.) Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); January 8 (Battle of New Orleans); February 22 (Washington’s birthday); Good Friday; Junes (Confederate Memorial Day); July 4 (Independence Day); the first Monday in September (Labor Day); October 12 (Christopher Columbus Day); November 1 (All Saint’s Day); general election day; November 11 (Armistice Day); Thanks giving Day; December 25 (Christmas Day); Inauguration Day in the City of Baton Rouge. And every Saturday from 12 o’clock noon until 12 o'clock midnight, to be known as a half-holiday; and in the parishes of Orleans, St. Bernard, Jefferson, St. Charles and St. John the Baptist. Mardi Gras; and whenever January 1, January 8, February 22, June 3. July 4, October 12, November 1, November 11 and December 25 fall on a Sunday, the succeeding day shall be a legal 1794 BANKING AND COMMERCIAL LAWS—LOUISIANA holiday; and all promissory notes, bills of exchange and commercial paper maturing on Sunday, a legal holiday, or legal half-holiday, which, by law or commercial usage, are required to be protested for non-payment, shall be deemed to be, and shall be, due and payable on the first day, not a Sunday or legal holiday or legal half-holiday, succeeding the day of its maturity; and in computing the delay allowed for giving notice of non-acceptance or non-payment of bills of exchange or promissory notes or other commercial paper, the days of public rest or legal holidays or legal half-holidays, shall not be counted; and if the day or days next succeeding the protest for nonacceptance or non-payment shall be days of public rest or legal holi days or legal half-holidays, then the day next following shall be computed as the first day after protest. Provided, however, for the purpose of protecting or otherwise holding iiable any party to any bill of exchange, check or promissory note which shall not have been paid before 12 o’clock noon or any half-holiday, a demand or acceptance or payment may be made, and notice of protest or dishonor thereof may be given, on the next succeeding secular or business day. (Act 165 of 1932.) Husband and Wife. (See Married Women.) Interest. Legal rate is 5 per cent, but 8 per cent may be agreed upon in writing. If higher than 8 per cent is charged, it is reducible to 8 per cent. If paid, it may be sued for and recovered within two years. Judgments recorded in the office of the parish recorder become mortgages from date of record upon all real estate of the debtor, and may be thus recorded in any parish where debtor owns real estate They are valid for ten years, when they must be renewed Liens or Privileges. The following have special privileges, viz.: 1. Lessor’s privilege. 2. Privilege of the creditor on the thing pledged. 3. Privilege of a depositor on the price of a thing deposited. 4. Privilege for expenses incurred in preserving thing. 5. Privilege of the vendor of movable effects so long as they are in the possession of the vendee. 6. Privilege of the innkepeer on the effects of the traveler. Privileges resting upon immovables are as follows, viz.: 1. The vendor on the estate by him sold, for the payment of the price or so much of it as is unpaid, whether it was sold on or without a credit. 2. Architects, undertakers, bricklayers, painters, master builders, contractors, sub-contractors, journeymen, laborers, cartmen, and other workmen employed in constructing, rebuilding, or repairing houses, buildings, or making other works. 3. Those who have supplied the owner or other person employed by the owner, his agent, or sub-contractor, with materials of any kind for the con struction or repair of an edifice or other work, when such materials have been used in the erection or repair of such houses or other works. (Art. 3252.) Privilege on crops to be recorded (Act of 1890.) The vendor of an agricultural product of the Unitea States has a five days' privilege for unpaid purchase price in preference to all others. Privi lege granted employes in saw mills etc. (Act 145 of 1888. amended by Act 52 of 1910 and Act 23 of 1912.) Laborers have lien on oil and gas wells, rigs and machinery for wages. (Act 171 of 1928.) Widow and children left in necessitous circumstances are entitled to an amount in husband’s or father’s succession sufficient to make $1,000 inclusive of property already possessed by them. This privilege primes all others except vendor’s privilege, that for expenses of selling property and conventional mortgages, representing money actually loaned for not less than one year at not exceeding 6 per cent for interest, dis count and charges. Limitation of Actions. Limitation of actions, or prescription, under the law of Louisiana is a manner of acquiring ownership of property, or of discharging debts by the effect of time and under the conditions regulated by law Of the prescription by which the ownership of property is acquired. He who acquired an immovable in good faith and by a just title pre scribes for it in ten years, provided he has had continuous and uninterrupted possession during that time. This runs against minors In twenty two years from birth and all others excepted by law. Act 161 of 1920. The ownership of immovables is prescribed for by thirty years without any need of title, and without reference to good faith, pro vided there has been continuous and uninterrupted possession as owner during this time. If a person is possessed in good faith, and by a just title of a movable during three years without interruption he acquires the ownership by prescription, unless the thing was stolen or lost. When the possessor of any movable whatever has possessed It for ten years without interruption he shall acquire the ownership of it without being obliged to produce a title, or to prove that he did not act in bad faith. Prescription runs against all persons unless they are included in some exception established by law Minors and persons under interdiction cannot be prescribed against except in certain cases provided by law. Husbands and wives cannot prescribe against each other. Of the prescription which operates a release from debt. Various actions are prescribed by one year. Among these may be mentioned those of masters and instructors for lessons wnich they give by the month. Those of inn keepers, on account of lodging and board which they furnish. Those of retailers of liquors. Those of workmen, laborers and servants, for the payment of their wages, and actions for injurious words, whether verbal or written. Those for damages caused by animals, and all actions for damages or torts. This prescription runs against minors and interdicted persons, reserving, however, to them their recourse against their tutors and curators! Actions by or against common carriers for collection or recovery of freight charges or for loss of or damage to freight are prescribed by two years from date of shipment. The following actions are prescribed by three years, to wit; First— That for arrearages of rent charges, annuities and alimony, or for hire of movables and immovables. Second—That for payment of money lent. Third—That for the salaries of overseers, clerks, secretaries ana of teachers who give lessons by the year or quarter. Fourth—That of physicians, surgeons and apothecaries for visits, operations and medicines. Fifth—That of parish recorders, sheriffs, clerks and attorneys for their fees and emoluments. Sixth—That on accounts of merchants. Seventh—That on all other accounts. Eighth—Tax inscriptions. Ninth—Licenses. Tenth—Inheritance taxes as against purchasers and third persons in good faith. This prescription runs against minors and interdicted persons, reserving to them, however, their recourse against their tutors and curators. Four years’ prescription applies to special action—as action of minor against tutor respecting acts of tutorship; of minor for rescission of judgment; action of lesion. The following actions are prescribed by five years, to wit: Actions on bills of exchange, notes payable to order or bearer, except bank notes. Those on all effects negotiable or transferable by endorsement or delivery, and those on all promissory notes negotiable or otherwise. Inheritance taxes as against heirs in five years from opening of suc cessions. This prescription runs against minors and Interdicted persons, reserving to them, however, their recourse against their tutors and curators. 8econd—Action* for the nullity or rescission of contracts, testament or other acts. Third—Actions for the reduction of excessive donations. Fourth—Actions for the rescission of partitions. Any and all informalities of legal procedure connected with or growing out of any sale at public auction of real or personal property made by any sheriff of the parishes of this State, licensed auctioneer. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis or other persons, authorized by an order of the courts of this State, to sell at public auction, shall be prescribed against by those claiming under such sale after the lapse of two years from the time of making said sales, except where minors or interdicted persons were part owners at the time of making it, and in the event of such part ownership by said minors or interdicted persons, the prescription thereon shall accrue after five years from the date of public adjudication thereof. Act 231 of 1932.) All persona) actions, except those above enumerated, are prescribed by ten years. Actions for: mmovable property, or for an entire estate, as a suc cession, are prescribed by thirty years. Limitation on Tort Actions. All actions on torts are prescribed by one year. Limitations to Suits. Prescription — Accounts stated and acknowledged in writing are prescribed only by ten years. (Act of 1888.) Personal actions one year; action for torts of all kinds; for injury to or non-delivery of merchandise shipped on vessels; for fees of justice, notary, or constable; for innkeepers’ accounts; for accounts of retailers of liquors; for wages of laborers or sailors; for freight; and for tuition by month. Three years: Action for arrearages of rent charges, or hire of movables or immovables or money lent; for salaries of overseers, clerks, or tuition by quarter or year; for fees of physicians apothecaries, attorneys, sheriffs, clerks, and recorders; on open accounts of merchants, whether wholesale or retail, and others. Four years: Actions by minors against their tutors, counting four years from majority. Five years: Action on bills of exchange or promts sory notes, counting from maturity, and for nullity of contracts or wills; for recision of partitions; to set aside public and judicial sales for informalities. Ten years: All other actions; the right to a usu fruct or servitude, all judgments, whether rendered within or without the State, but judgments may be revived before lapse of ten years and are then good for ten years from date of revival. Prescription of ten and thirty years now runs against minors, interdicts and married women (Act 161 of 1920). Husband and wife can not prescribe against each other. Promise to pay or payment on account will interrupt prescription. Only written promise to pay will revive when prescription has accrued. Limited Partnerships. (See Partnership.) Married Women. Act 132 of 1926 and Act 283 of 1928 provide that a married woman, whether a resident of this state or not, shall be competent to contract debts, purchase, sell and mortgage, and to bind and obligate herself peisonally and with reference to her separate and paraphernal property; to appear in court and to sue and be sued; to sell, alienate or otherwise dispose of, and to mortgage and pledge, or other wise encumber, her separate arid paraphernal property for the benefit, of herself, her husband or any other person, and to bind and obligate her self personally or as surety for her husband or any other person; and that such rights may be exercised wit hout the necessity of obtaining the authority of her husband or the judge; provided, however, that the rights granted by said act shall not apply to married women under the age of eighteen years or to married women who are interdicted, nor shall anything therein contained be deemed or construed to affect in any way the statutes of this state establishing and regulating the matrimonial community of acquets and gains and prescribing what shall be deemed separate property of the spouses. Revenues of all separate property administered by the husband, and all property acquired by either husband or wife after marriage, except by donation or inheritance constitute part of community, unless bought with the separate means of either and as a separate acquisition. Wife has no dower in her husband’s real estate. The wife can have no claim upon the property of the husband to the prejudice of third parties, unless recorded. Where one of the spouses is agent for the other, he or she may be witness for the other in a matter connected with that trans action. Act 157 of 1916 permits but does not compel one spouse to be a witness either for or against the other in any proceeding, civil or criminal. After dissolution of marriage by death or divorce the survivor is entitled to one-half of all property remaining after payment of debts, acquired during marriage, and in case of death, if there is issue, the usufruct of the other half, unless this half is disposed of by will of deceased spouse. Wife cannot be a witness to husband's will. (See “Liens and Privileges.”) Monopolies or Trusts are regulated and rights are given against them similar to those existing under Federal Law. The state author ities may take action and the individual may recover threefold damages sustained. See Acts Nos. 11 and 12, extra session 1915. Mortgages can be foreclosed at any time after maturity of the debt, by instituting a regular suit and obtaining judgment thereon, or if the act imports a confession of judgment in favor of the holder, he can apply to the court for an order directing the sheriff to seize and sell the property. All mortgages must be recorded before they can have any effect as against third parties. Trust deeds are not legal, except as provided under "Trusts." There is no redemption of prop erty sold under mortgage. All tacit mortgages have been abolished since 1870. In making sales or giving a mortgage upon his property. It is not necessary for the husband to obtain the signature ot the wite. except as affecting the homestead and family home. A mortgage resulting rrom recording a judgment cannot have that effect until after adjournment of court. I Act 1888.] Lessee, sub-lessee or assignee of lease or sub-lease may mortgage his interest in such lease or sub-lease, together with his interest in buildings, etc., upon leased premises: provided, such mortgage shall not affect, diminish or destroy lessor’s privilege. Leases and contracts to explore for oil, gas and minerals may be mortgaged. [Act 232 of 1910.) Act 118 of 1934 authorizes the issuance of an order for executory process when there is a variance between an act of mortgage and the note, or notes issued in connection therewith, due to clerical error. Act 121 of 1934 authorizes administrators and executors to transfer property, encumbered with mortgages in excess of the value of such property, to the holder of such mortgage. Act 159 of 1934 provides for a general suspension on all foreclosures of mortgages of real estate. Act No. 199 of 1934 provides that mortgages on rural real estate shall not cover or affect the live stock and implements and machinery used in the farming thereof. Negotiable Instruments. Uniform Negotiable Instruments Act adopted Aug. 1, 1904, Act. No. 64 of 1904. (See complete text follow ing “Digest of Banking and Commercial Laws.”) Sec. 85 of the negotiable instruments act was amended by Act No. 89 of 1926, abolishing days of grace and providing that when the day of maturity falls upon Saturday, Sunday, or a holiday, the instrument is payable on the next succeeding business day which is not a Saturday. This amendment further provides that instruments payable on demand may at the option of the holder be presented for payment before 12 o’clock noon on Saturday, when the entire day is not a holiday, however, said holder shall not be guilty of neglect for failure to present on Saturday. Sec. 132 of the negotiable instruments act was amended by Act No. 189 of 1908, providing that the acceptance of a bill must be in writing. Partnership, Limited and Special. Stipulations that one shali participate in the profits and shall not contribute to losses is void. Doth as regards partners and third persons. Partnerships are divided as to their object into commercial and ordinary partnerships. Com mercial partnerships are such as are formed: 1. For the purchase of any personal property, and the sale thereof either in the same state or changed by manufacture. 2. For buying or selling any personal property whatever, as factors or brokers. 3. For carrying personal property or passengers for hire, in ships, vessels, or in any other vehicle of transportation. (Act 150 of 1932.) There is also a species of partnership which may be incorporated with either of the BANKING AND COMMERCIAL LAWS—MAINE other kinds, called partnership in commendam. It is formed by con tract, by which one person or partnership agrees to furnish another per son or partnership a certain amount, either in property or money, to be employed by the person or partnership to whom it is furnished. In his or their own name or firm, on condition of receiving a share in the profits, in the proportion determined by the contract, and of being liable to losses and expenses to the amount furnished and no more. Partner in commendam cannot bind other partners by his act. Part nership in commendam must be made in writing; must express amount furnished or agreed to be furnished; the proportion of profits which partner is to receive and expenses and losses he is to bear ; must state whether it be received in goods or money, etc.; must be signed by parties in presence of at least one witness and recorded in full within six days in mortgage office. If branch houses are established the con tract must be recorded in parish whore branches are located. If partner in commendam allow his name to be used, or if he take any part in the business of the partnership, he will be liable as a general partner. Ordinary partners are not bound in solido for debts of partnership, and no one of them can bind his partners unless they have given him power to do so; each is bound for his share of the debt In proportion to the number of partners. Commercial partners are each liable for the entire debts of the partnership. Powers of Attorney. May be written or oral. May be either general for all affairs or special for one affair only. One conceived in general terms confers only power of administration; to sell mortgage or do any other act of ownership, the power must be express and special. Probate Law. There is no special probate court. District courts are vested with probate jurisdiction. Successions are opened upon petition of interested persons in the parish where the deceased resided. If he had a domicile or fixed place of residence in the state; in the parish where he left his landed property, if he had neither domicile nor place of residence in the state: or in the parish in which it appears from the inventory that his principal property was situated, if he left property in several parishes; in the parish where he died, if he had no certain domicile nor any llxea Droperty. If presumptive heir does not begin legal proceedings to settle succession within ten days after death of “de cujus,” creditors may demand that he state whether he accepts or rejects succession, or if no heirs appear, that a curator ad hoc be appointed to settle the estate. The judge appoints an administrator when deceased leaves no will. Administrators must render annual accounts, and are allowed 2 34 per cent on the inven tory as commissions. Attorneys at law are appointed to represent absent heirs. Properties acquired during marriage are presumed to be community property, and surviving spouse is owner of one-hall. When either husband or wife dies, leaving no ascendants or descend ants. and without having disposed by will of his or her share in the community, such undisposed of share shall be inherited by the surviving spouse in full ownership. (See Successions). Protest. (See Negotiable Instruments.) Separation from Bed and Board. May be claimed reciprocally for; 1. Adultery. 2. When spouse condemned to infamous pun ishment. 3. Habitual intemperance, excesses, cruel treatment, or outrages, when such renders living together insupportable. 4. Public defamation of one spouse by the other. 5. Abandonment. 6. Attempt of one spouse against life of other. 7. When one spouse charged with infamous offense actually flees from justice. Divorce may now be obtained if both parties have lived separate for four years. Judgment of Divorce “a vinculo matrimonii" can be obtained immediately for first two causes. For other causes it is necessary first to obtain judgment of separation “a mensa et thoro.” After tudgment of separation from bed and board, if there has been no reconciliation, party in whose favor judgment is rendered can ohtai" final divorce one year after finality of judgment of separation Party against whom judgment is rendered must wait one year and sixty days When marriage is celebrated outside of state parties cannot obtain divorce in state on grounds occurring outside of state, except, as pro vided by C. C. Art. 142, as amended by Act No. 1 of the Second Extra Session of 1934, when the wife shall have been domiciled in Louisiana prior to the marriage. Taxes. Taxes on real estate cannot be enforced until the expira tion of the year for which they are levied and after legal notices to delinquents and advertisement. Lands sold for taxes are redeemable within one year, by the owner, his agent, or heirs, or any creditor, on payment of the purchase money, with 20 per cent interest and costs, and all subsequent taxes paid. Lands sold for taxes due prior to 1880 are not redeemable. State taxes are 5 34 mills on actual value, parish taxes not exceeding 4 mills. City of New Orleans taxes are 2734 mills on 85 per cent of actual value, other municipal taxes not to exceed 7 mills. Delinquent state taxes bear interest at 2 per cent a month, city taxes, 10 per cent a year. For temporary relief measures relating to current taxes, see Acts of Louisiana of 1932. Act No. 21 of 1934, as amended by Act No. 2 of the First Extra Session of 1934, and as amended by Act No. 7 of the Second Extra Session of 1934, provides for a state income tax of 2% on the first $10,000, 4% on the next $40,000, and 6% on any amount in excess of $50,000; allowing the following exemptions: $1,000 for a single person, $2,500 in the case of the head of a family or married person living with husband or wife, and $400 for each additional dependent. The act also provides for a tax of 4% upon the net income of every cor poration, in excess of $3,000. Trusts. Act No. 107 of 1920 permitting trusts to be established for 10 years has been repealed by Act No. 7 of 3rd Extra Session of 1935, thus prohibiting trusts in this state for any purpose other than for charity. Wills. There are four different kinds of wills, viz.: The olo graphic, nuncupative by public act, nuncupative by private act, and mystic (or sealed) will. The olographic will must be wholly written, dated and signed by the testator, and may be made within or with out the State. Nuncupative will by public act is written by a notary In presence of three witnesses, over the age of 16 years complete, not insane, deaf, dumb or blind, residing in the place where will is executed, or five witnesses not residents of the place, at the dictation of the testator. Nuncupative will by private act and mystic wills are subject to many formalities which may be best obtained by refer ence to Civil Code Arts, 1581-1587 both inclusive. All persons of sound mind over sixteen years of age may dispose of their property by will. Wills executed without the state given force and effect provided same be in writing and subscribed by testator and follows form of place where executed, or of testator's domicile. (See act 176 of 1912.) 95 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1795 SYNOPSIS OF THE LAWS OF MAINE RELATING TO BANKING AND COMMERCIAL USAGES Revised by Pulsifer & Lcdden, 68 Maine St., Lewiston, Me. (See Card in Attorneys' List.) Acknowledgments. (See Deeds.) Actions. At law begun by writ, under common law practice, but containing declaration. Suits in equity are begun by bill of com plaint, filed with clerk of court and subpoena issued by him, or may be inserted in writ of attachment and served by copy of bill and writ. On motion non-resident plaintiffs required to give security for costs. An affidavit in actions brought on an itemized account, made before a Notary Public having a seal makes a prima facie case, if without the State authority of Notary must be certified by clerk of court of record. Administration of Estate. (See Estates of Deceased Persons.) Affidavits. Affidavits may be made before a notary public or Justice of the peace. In some court matters authority of magistratr must be proved by certificate of clerk of a court of record. Aliens. Aliens may hold and convey real estate and personal property. Wills of aliens may be proved and allowed in this State. Widow of a citizen of United States who was an alien when she married him has right of descent in his estate (but see Married Women). Assignments. Common law assignments for the benefit of creditors may be made, and after four months will be good against bankruptcy proceedings. Assignments of wages must be recorded in town clerk’s office in town where assignor is employed. Invalid unless employer has notice. Attachment. All property not exempt attachable on mesne proc ess as of course without affidavit; security for costs by indorser of writ only if creditor is non-resident; lien by attachments in the order In which they are made continue for thirty days after judgment (extended where execution is delayed, appeal from taxation of costs is taken, or decision of law court certified down in vacation), within which time levy may be made. Personal property may be appraised and sold on mesne process to avoid expense, depreciation or loss, on request of either party and proceeds held by officer in lieu of the property, foreign attachment (garnishment), known as trustee process, attaches property by or debt due from trustee unless: 1. Due on negotiable paper. 2. Money collected on process by officer. 3. In hands of public officer. 4. Due on contingency. 5. Trustee liable to execution on same. 6. Twenty dollars wages, for personal labor of the debtor, wife or minor child within one month, and $10 exempt in all cases. 7. In certain cases money due on life and accident policies, and from fraternal beneficiary associations. (See Creditors' Bills.) Banks. Kinds permitted: Savings Banks, Trust Companies and Loan and Building Associations. Savings Banks. May be organized and certificate of authority issued by the bank commissioner. No capital stock and operates solely for the benefit of depositors. Under the supervision and examination of, and required to report to, the bank commissioner. Must not pay over 234% dividends semi-annually. Must pay one-half of 1% of net earnings to reserve until it equals 5%. Sub ject to varying loan limitations. Trust Companies. May be organized under the general statutes on approval of the bank commissioner. Must report to and subject to examinations and supervisions by the bank commissioner. Capital stock may be assessed to meet deficits. Directors and the officers personally responsible for loans illegally granted. Must carry 10% of annual net earnings to surplus until it amounts to one-half of capital stock. May have branches. Loan and Building Associations. May be incorporated and sub ject to the same supervision by the bank commissioner as Savings Banks. May issue permanent shares or serial maturing shares. Under the general management of a board of directors. Shares fully paid for not subject to assessment. Collaterals. (See Mortgages.! Conditional Sales, Consignments. No agreement that personal property bargained and delivered to another shall remain the propertj of the seller until paid for, is valid unless in writing and signed by the person to be bound. Such agreement, in whatever form it may be, is not valid except as between original parties, unless recorded in the office of the clerk 01 the town in which the purchaser resides at the time of the purchase Alls uch property whether said agreements are recorded, or not shall be subject to redemption. This does not apply to goods consigned for sale. Conveyances. (See Deeds.) Corporations. Three or more persons may rorm a corporation to carry on any lawful business excepting banking, insurance, construct ing and operating railroads, savings banks, trust companies, or cor porations intended to derive profits from the loan or use of money, and safe deposit companies, but corporations may be formed under the general law for the construction and operation of railroads ourside the Slate of Maine. Corporations for other purposes, excepting for municipal purposes, and where the objects of the corporation can not be attained without special acts, are also formed under gefieral laws. Organization becomes void unless corporation begins business within two years. Corporation may capitalize to an unlimited amount and may increase or decrease the amount of their capital or the par value of the shares. No portion of capital is required to be paid in; stock may be issued for property or for services and in absence of fraud the Judgment of the directors as to the value of such property or services is conclusive, the stock thereupon becoming fully paid. Only original subscribers and takers of stock are liable on same to extent of unpaid par value and then only for debts contracted during their ownership of stock, and action to enforce such liability must be commenced within two years and can be maintained only by a judg ment creditor of the corporation who shall have begun proceedings to obtain such judgment against the corporation during the owner ship of such stock or within one year after its transfer by such stock holder Is recorded on the corporation books. Directors must be stockholders or members of another corporation which is a stockholder If corporation fails for six months to elect directors, court may appoint. Corporations must pay to the State upon organization, a fee as fol lows: $40 for each $100,000 stock up to $1,000,000 sliding scale above. Other fees for organization are: attorney-general’s fee $5; register of deeds $5, secretary of state $5. The annual franchise tax is as follows: $5 provided authorized capital does not exceed $50,000: exceeding $50,000 and up to $200,000, $10; exceeding $200,000 and up to $500,000, $50; exceeding $500,000 and up to $1,000,000, $75; and the further sum of $50 per $1,000,000 or any part thereof in excess of $1,000,000. Corporations which have suspended busi ness temporarily and have been excused from filing returns of amount of capital stock, etc., are not liable for franchise tax. Meetings of stockholders must be held within the State. Clerk must be resi dent and keep stockholders’ records in the State. His records are open to inspection bv stockholders but not by mere creditors. With t he exception of banking corporations no public reports are required except one to the secretary of state showing names and residences of officers and amount of capital stock. Delivery of certificate of 1796 BANKING AND COMMERCIAL LAWS—MAINE stock to bona fide purchaser or pledgee for value together with written transfer of same or written power of attorney to sell, assign, and transfer same, signed by owner of certificate, transfers title against all parties. Foreign corporations have practically same rights as domestic, but are required to file copy of charter with secretary of state, also a copy of the by-laws, and are also required under severe penalties to file certificate showing among other things the names of officers, amount of capital stock authorized, amount issued and amount paid in; also must file certificate showing any change in above particulars. Such corporations must also appoint a resident of Maine, having an office or a place of business in the state, to be its attorney on whom process may be served in any legal proceeding. Corporations may dispose of their franchises on majority vote of the stockholders; may sue and be sued, and have generally the powers of individuals. Public service corporations are subject to a Public Utilities Com mission. Creditors’ Bills. Bill In equity may be maintained to reach property of debtor which cannot be reached by process at law, and la not exempt from attachment; also property conveyed in fraud of creditors and property secreted so that it is not repleviable. Days of Grace. (See Negotiable Instruments.) Deeds. Any owner of real estate having right of entry may con vey it by deed. No estate greater than tenancy-at-will can be created except in writing. Deeds must be acknowledged by a grantor or one of them or by an authorized agent, executing the same, before a justice of the peace, notary public having a seal, or woman qualified to take acknowledgments; outside the State, and in the United States, before a clerk of a court of record having a seal, notary public; or commissioner of deeds for this State, and in a foreign country before a notary public, or a consul or minister of the United States, but if magistrate acting outside of State has no official seal, his authority and the genuineness of his signature must be authenticated by the secre tary of state or the clerk of a court of record in county where he resides. Unacknowledged deeds cannot be recorded. No special form of acknowledgment required. Deeds must be recorded to be valid against parties without notice of the conveyance. Deeds must be under seal, but witness is not required for validity although usual to have one. Leases for more than two years should be acknowledged and recorded to be effectual except between the parties. Trusts concerning real estate can be created only in writing, except those aris ing by implication of law. Depositions. Depositions may be taken by disinterested justice of the peace or notary public; may be taken when deponent is unable through age, infirmity, or sickness to attend at place of trial; when deponent resides out of, or is absent from the State; when deponent resides in town other than that in which trial is to be held, etc. Depo sitions so taken may be used in all civil suits or causes, petitions for partition of land, libels for divorce, prosecutions for the maintenance of children, petitions for opinions in trial before courts of arbitrators, referees and county commissioners, and in cases of contested senatorial or representative elections. Depositions or affidavits may also be taken in applications for pensions, bounty, or arrears of pay under any law of the United States. Courts may issue commissions to take depositions out of the State, or they may be taken out of State by a justice, notary, or other person empowered, but In the latter case it is within the discretion of the courts to admit or reject them. Descent and Distribution of Property. (See Estates of De ceased Persons.) Dower. Abolished by laws of 1895, chap. 157, taking effect as to persons not then married. May 1, 1895; as to others, Jan. 1, 1897. Wife or husband may bar the right by inheritance to one-third or one-half, as the case may be, of realty by joining in the other's deed, or by sole deed, or by ante-nuptial settlement, or by jointure. Either refusing to join in other’s conveyance (or if incapacitated with no guardian in this state, other being a non-resident) may be barred of Inheritance upon application to supreme judicial court and decree after hearing. (See Estates of Deceased Persons.) Estates of Deceased Persons. One year after notice of ap pointment. allowed creditors to present claims and suit must be begun and service of process made within twenty months after such notice of appointment. Allowance to widow and minor children, made by court from estate. Non-resident executor or administrator must appoint attorney. Time of demand or notice extended for absent creditor if further assets, but prior payments not disturbed thereby. No administration granted after twenty years. The real and personal estate of a person deceased intestate (excepting wild lands conveyed by him) being subject to the payment of debts descends according to the following rules; 1. If he leaves a widow and issue, one-third to the widow. If no issue, one-half to the widow. And if no kindred, the whole to the widow. And to the widower shall descend the same shares in his wife's real and personal estate. There shall likewise descend to the widow, or widower, the same share in all such real estate of which the deceased was seized during coverture, and which has not been barred, or released, as herein provided. In any event, one-third shall descend to the widow or widower free from the pay ments of debts. 2. The remainder of which he dies seized, and if no widower, or widow, the whole, together with all wild lands shall descend in equal shares to his children, and to the lawful issue of a deceased child by right of representation. If no child is living at the time of his death, to all his lineal descendants; equally, if all are the same degree of kindred; if not. according to the right of repre sentation. 3. If no such issue, it descends to his father and mother In equal shares. 4. If no such issue, or father, it descends one-half to his mother. If no such issue or mother, it descends one-half to his father. In either case, the remainder, or if no such issue, father or mother, the whole descends in equal shares to his brothers and sisters, and when a brother or sister has died, to his or her children or grandchildren by right or representation. 5. If no such Issue, father, brother or sister, it descends to his mother. If no such issue, mother, brother or sister, It descends to his father. In either case, to the exclusion of the issue of deceased brothers and sisters. 6. If no such issue, father, mother, brother or sister, it descends to his next of kin in equal degree; when they claim through different ancestors, to those claiming through a nearer ancestor, in preference to those claiming through an ancestor more remote. 7. When a minor dies unmarried, leaving property Inherited from either of his parents, it descends to the other children of the same parent, and the Issue of those deceased; in equal shares if all are of the same degree of kindred; otherwise, according to. the right of representation. 8. If the Intestate leaves no widower, widow or kindred. It escheats to the State. An illegitimate child is an heir of its parents who intermarry; also of its mother, also of its father, who adopts it or acknowledges it before a magistrate; and In any case where the child is treated as an heir it inherits from the lineal and collateral kindred of the parent, and they from it. (See Wills.) Exemptions from Attachment and Execution. Homesteads, not exceeding in value $500, when duly registered; debtor's apparel, necessary furniture for family, not exceeding in value $200; bed and bedding for each two persons; family portraits, bibles, school books In use; State statutes; library, $150; regular pew; cook stove and Iron warming stoves; charcoal, twelve cords of wood, five tons an thracite coal, fifty bushels bituminous coal, $10 worth of lumber wood, or bark; produce of farms till harvested; barrel of flour, thirty bushels of corn and grain, potatoes for family, one-half acre of flax and manufactures therefrom for family; tools of trade, and materials and stock, $50; sewing machine, $100; pair working cattle, or pair mules, or one or two horses, $300; hay to keep them; harness for each horse and mules. $20; horse sled or ox sled. $20; domestic fowl. $50; watch, $10; wedding ring, $10; two swine, one cow and one heifer, if no oxen, horse or mule, two cows; ten sheep, their wool, their lambs until one year old; hay to keep them and cattle; plow, cart, truck or express wagon, harrow, yoke with bows, ring and staple, two chains. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis mowing machine: fishing boat of two tons; debtor may elect if he has more than is exempt. Life and accident policies are exempt from creditors, except any excess of $150 per year premium paid within two years, except suits for necessaries. (See Attachment.) Foreign Judgment. Action of debt lies on a foreign judgment and record of it is prima facie evidence of indebtedness. Is conclusive except for fraud when given by court having jurisdiction of parties and subject matter. Fraud. Usual common law rules as to what constitutes fraud, fraudulent representations, etc.; also statutory penalties for fraud, cheats, etc. Court of equity has power to afford relief. Statutory provisions to prevent sale in bulk of part or whole of stock of mer chandise in fraud of creditors. Frauds and Perjuries. No action shall be maintained upon any contract to charge an executor or administrator upon any special promise tc answer damages out of his own state; nor to charge any person upon any special promise to answer for the debt, default, or misdoings of another; nor to charge any person upon an agree ment made in consideration of marriage nor to charge any person upon any contract for the sale of lands, tenements, or hereditaments, or of any interest therein; nor to charge any person upon any agree ment that is not to be performed within one year from the making thereof; nor to charge any person upon any contract to pay a debt after discharge therefrom under bankrupt laws of the United States or assignment or insolvent laws of this State; unless the promise, contract, or agreement or some memorandum thereof is In writing and signed by the party to be charged, or his agent. No action shall be maintained on a minor s contract unless ratified by him in writing after becoming twenty-one years of age, except the contract be for necessaries or real estate where he has received title and obtained benefit. No contract for sale of goods, etc., of $30 or more In value Is valid unless purchaser accepts or receives a portion of the goods or gives something to bind the bargain, or in part payment thereof, or some memorandum is made and signed by party charged or his agent. Contracts whereby one becomes agent for sale of lands become void in one year unless time for termination definitely stated. Garnishment. (See Attachment.) Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 22 (Washington's birthday); April 19 (Patri ots); May 30 (Memorial Day); July 4 (Independence Day); the first Monday in September (Labor Day); October 12 (Columbus Day); November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day); and days of public fast or thanksgiving and Arbor Day appointed by Governor and Council. Husband and Wife. Each may hold and deal with property Individually, subject to right of descent in real estate. (See Estates of Deceased Persons.) Husband not liable for debts of wife con tracted before marriage, nor afterward in her own name, nor for her torts. Equity Court has special jurisdiction of disputes between husband and wife relating to property. After petition to and decree by probate court either may convey real property as if sole, and other Is barred of all right by descent where deserted without just cause or if actually living apart for just cause, and desertion or living apart has continued one year. Interest. Six per cent or any other rate agreed upon In writing; Judgments, same rate; accounts and debts not on time bear interest from demand. Special rate in time notes does not continue after maturity, unless so provided; nor after judgment in any case; no usury laws. On loans for less than $300. secured by mortgage or pledge of personal property, the rate shall not exceed 3 & per cent per month. Loans negotiated in this state by agent of non-resident borrower with intent to evade usury laws of state where borrower resides are voida ble. Judgments. At law; by general order at end of term on all cases where verdict or default, unless stayed by proceedings for new trial, or continued for judgment by plaintiff; In equity, only by decree signed by justice. No Hen except by virtue of attachment on mesne process (q. v.) and where specially provided by law. Liens. (Voluminous Statute Provisions, for Mechanics, Material Men, Hotel and Boarding-House Keepers, Stable Keepers, Agister, etc.). Limitation of Actions. Six years; debt on unsealed contract or liability (except judgments); actions upon judgments out of State of court not of record; for arrears of rent; of account, assumpsit, or case on contract or liability express or implied; waste; trespass qu. cl. and d. b. a.; replevin; case, except slander and libel. Four years; against sheriff. Two years: assault and battery, false imprisonment, slander, libel and penalty. One year: escape, scire facias and on recognizance. Eighteen months: stolen bonds and coupons, except by owner. Twenty years: witnessed notes, bank bills, specialties, real action, other judgment and all other personal actions. Suit begun when writ was made. Incapacity of plaintiff, death of either party before or within thirty days after expiration of time, fraudu lent concealment of action, absence from State when cause accrues or residence out of the State and absence afterwards, extends time. Actions barred where both parties lived are barred here. New promise must be in writing or part payment must be made, to extend time. Against executors and administrators, twenty months after filing of affidavit of notice given of appointment of executor or admin istrator, unless further assets or claim not matured. Against heirs or devisees, one year after claim accrued; remedy in equity. If not prosecuted within time limited and if without culpable neglect. Limited Partnership. May consist of one or more general part ners and one or more special. Special shall contribute specific amount of capital or property at cash value, and be not liable for debts beyond that amount. General partners must transact the business. Married Women have same rights and liabilities as to property contracts and all suits as men. Wife’s property not liable for her husband's debts, nor his liable for her prior debts, nor for others made on her credit. She may sue and be sued as if sole. May not be partner of husband and not liable for family expense except by express promise. (See Arrest, also Dower, also Estates of Deceased Persons, also Husband and Wife.) Mortgages. Of real estate executed and acknowledged as deeds and must be recorded as to third parties; convey fee with condition of defeasance. Foreclosed without possession by serving or adver tising notice, or by possession obtained peaceably, or by consent, or by suit. Redemption in one year from notice or possession; power of sale mortgages not authorized by statute and not much used. Supreme or Probate courts may authorize a mortgage by a person in possession of an estate subject to a contingent remainder, executory devise, or power of appointment, and such mortgage is binding on all parties. Chattel mortgages unless and until possession taken and retained by mortgagee to be good against third parties must be recorded in town clerk's office where mortgagor resides when mortgage is given; or, if any of mortgagees are nonresidents, then in registry of deeds in county where mortgagee resides, when mortgage is given. Mortgage on household furniture must state amount of loan, interest rate, and cost or procuring loan. Agreements, whether in form of note, lease, conditional sale, etc., or otherwise, that chattels bargained and delivered shall remain property of seller till paid for, must be in writing and recorded as chattel mortgages; such mortgages and notes foreclosed by sixty days’ notice to mortgagor or assignee of record, or, if out of State, by publication; redemption in sixty days. Col laterals pledged on notes, etc., or for the performance of anything, after failure to pay or perform by the pledgor, may be sold by the pledgee, he first giving written notice to the pledgor of the proposed sale, or if his residence is unknown, by publication of notice once a week for three successive weeks in a newspaper in the city or town BANKING AND COMMERCIAL LAWS—MARYLAND where the pledgee resides, recording said notice and affidavit of service of same in the clerk’s office of city or town where the pledgee resides, and after the expiration of the sixty days from the time of said record ing. Negotiable Instruments. Uniform Negotiable Instruments Act. Public Laws 1917, Chap. 257. (See complete text following ‘Digest of Banking and Commercial Laws.”) Days of grace abolished except as to sight drafts. Falling due on Sunday or bank holiday payable and presentable for payment on secular or business day next succeeding If holiday falls on Sunday then following Monday is deemed bank holiday. On notes payable at fixed place on demand at or after a time certain, no recovery unless demand proved there before suits usual demand and notice to charge indorser; notarial protest proves It; Waiver of demand and notice, acceptance of bill, draft, or order must be in writing and signed. Recovery from indorser without suing maker. Rate of damages on protested bills of 100 or more payable In this country, 1 to 9 per cent according to place. Negotiable paper presumed to be taken in payment of debt or liability for which it Is given, unless creditor would thus lose security he otherwise would have had. If note reads “ I promise to pay ” all signers are jointly and severally liable. Partnership. Personal property of partnership, or interest of partner therein, exempt from attachment on mesne process, or seizure on execution for any individual liability or such partner; but is statu tory provision for reaching same after judgment. Partners in mercan tile enterprise must file sworn certificate with city or town clerk where business to be carried on. showing names and residences of partners, nature of business and partnership name. (See Limited Partnership.) Powers of Attorney. Usual common law rules. Probate Law. (See Estates of Deceased Persons.) Protest. (See Negotiable Instruments.) Replevin. Goods or chattels wrongfully taken or detained may be replevied by owner or party entitled to possession. Replevin bond must be double the value of property replevied. If dismissed with out trial, suit may be brought on the bond, in which suit title may be shown to mitigate damages. Taxes may be collected by arrest, distress, or suit. On real estate they are a lien; proceedings to enforce by sale begin upon non-pay ment for eight months; non-resident owners have two years from sale to redeem by paying tax, costs, and 8 per cent interest from day of sale; residents, two years with 8 per cent interest from day of sale on whole sum of tax and costs. Collector may give notice to resident after eight months after commitment, and if not paid within eighteen months of filing the notice, right of redemption lost. Land on which taxes are unpaid, sold on first Monday in February in year succeeding the year in which tax was assessed; sale is of smallest fractional part of interest to one who will pay taxes, interest, and costs therefor. State tax assessed by board of state assessors on gross receipts of railroads and express companies, and telegraph and telephone lines, collected by suit. Corporations, other than those especially provided for, pay a franchise tax of $5.00 if authorized capital does not exceed $50,000.00; of $10.00 if capital does not exceed $200,000.00; of $50.00, if capital does not exceed $500,000.00; of $75.00, if capital does not exceed $1 000,000.00; and the further sum of $50.00 for each $1,000,000.00, or fraction thereof, in excess of $1,000,000.00. Foreign corporations pay annual license fee of $10. Inheritance tax ranging from 1 to 7 per cent, according to degree of relationship and amount of bequest, $500 exempt in all cases, and $10,000 exempt in case of certain near relatives. Special exceptions and exemptions from assessment, and special provisions for taxing personal property situated here but owned out of the State. Real estate mortgages exempt. (See Banks.) Wages. Weekly payment required In most industries. (See Assignments, Attachment.) Warehouse Receipts. Holder deemed true owner so far as to give validity to contract for sale of merchandise covered, or to protect one acting on faith of such ownership; but one taking from agent as security for antecedent debt gets no greater right than agent. Title to property passed by endorsement, but not in blank, to purchaser or pledgee in good faith. Property in warehouse may be attached as that of person named In receipt, or of last endorsee shown by book* of warehouseman. Common law rules prevail generally. Wills. Wills must be in writing signed by the testator, or at his request by some person in nis presence, and subscribed in his presence by three witnesses not beneficially interested, in presence of each other, may be made by any person of age and of sound mind, and may dispose of all property. Wills executed in another State or country according to laws thereof, may be proved and allowed in this State in the county where the testator had his residence at time of decease; if proved without this State (at his domicile), may be allowed in any county here where he has property. Widow or widower may within six months waive provision in will of deceased husband or wife and claim ■ame share in property as would have had in case deceased died Intestate. (But see Husband and Wife.) Nuncupative will must be reduced to writing within six days, or proved by testimony within six months, from time words spoken. No letters in such till fourteen days after decease of testator. Not effectual to dispose of more than $100.00 worth of property unless proved by three witnesses who acted at testator's request. 1797 of the instrument. If acknowledged in the county or city within which the land or any part of it lies, the acknowledgment may be made before a notary public, a justice of the peace for such city or county, a judge of the Orphans’ Court of such city or county, a judge of the Circuit Court for the county, or (if the land lies wholly or partly in Baltimore City and the acknowledgment is there made) before a judge of the Supreme Bench of Baltimore City. If acknowledged within the State, but out of the county or city wherein the real estate or any part of it lies, the acknowledgment may be made before a notary public, any judge of the Circuit Court for the circuit in which the grantor may be, or any judge of the Orphans’ Court of the county in which the grantor may be, any judge of the Supreme Bench of Baltimore City, any judge of the Orphans’ Court of said city, or before any justice of the peace for the county or city where the grantor may be at the time of the acknowledgment, the official character of ■uch Justice being certified to by the clerk of the Circuit Court for the county or of the Superior Court of Baltimore City (as the case may be) under the clerk’s official seal. If acknowledged without this State, but within the United States, the acknowledgment may be made before a Notary Public, a judge of any Court of the United States, a judge of any court of any State or territory having a seal, or before a commissioner of deeds for this State. If acknowledged without the United States acknowledgment shall be made before an ambassador, minister, envoy or charge d'affaires of the United States, in the country to which he is accredited or before any one of the following officers commissioned or accredited to act at the place where the acknowledgment is taken, and having an official seal, viz.: any con sular officer of the United States; a notary public; or a commissioner or other agent of the State of Maryland having power to take acknowl edgments to deeds. In all cases, the official seal of the officer or Court taking the same must be affixed to the certificate of acknowledgment. There are no special provisions as to acknowledgments by married women. Corporations acknowledge either by attorney appointed for that purpose in the body of the instrument itself, or by the President or Vice-president of the Corporation, without such appointment. All conveyances acknowledged prior to June 1st. 1931, in which such acknowledgement is defective are validated by chapter 50 of the Acts of 1933. (See Conveyances.) Administration of Estates. The Orphans’ Courts of the Counties and the Orphans’ Court of Baltimore City are the courts of probate. Where decedent leaves a will, letters testamentary are committed t« the executor or executors (male or female)named in the will, if any are named. Letters testamentary or of administration will not be granted to any person under the age of eighteen years or of unsound mind, or convicted of any infamous crime nor to any person not a citizen of the United States. A non-resident of Maryland may be appointed as the personal representative of a decedent resident of Maryland only when the State of his or her residence extends reciprocal privileges to resi dents of Maryland. (Code, Art. 93, Sec. 41A.) In granting letters of administration where decedent dies without leaving a will, or leaving a will, does not name an executor or executors, certain persons are pre ferred to others. The order of preference follows: 1. Surviving spouse, or child, or children (in discretion of the Court); 2. Grandchild 3. Father; 4. Mother; 5. Brothers and Sisters; 6. Next of kin. Where one of a class of persons is entitled the appointment is in the discretion of the Court. Relations of the whole-blood are preferred to those of the half-blood in equal degree, and relations of the half-blood are preferred to those of the whole-blood in a remoter degree. A single woman is preferred to a married woman in equal degree. 7. If there be no relations who qualify, letters of administration shall be granted to the largest creditor applying for the same. 8. If there shall be none of the first five groups above named, or if these be incapable or refuse to act, and if the sixth and seventh groups neglect to apply, the appointment is in the discretion of the Court. Bond is required with two sureties, or one of certain surety corporations authorized by the law of Maryland to qualify upon such bonds. When testator requests in will that executor therein appointed be excused from giving bond, then bond shall be given only in such amount as the court shall con sider sufficient to secure payment of debts of deceased. Six months’ notice to creditors must be given by publication in as many news papers as the Orphans’ Court shall direct (usually one) before the estate is distributed. Personal property of the decedent must be appraised, an itemized inventory thereof filed in the Orphans’ Court, and distribution thereof made through the Orphans’ Court. All sales made by the personal representative must be authorized and ratified by the Orphans’ Court which appointed him. The personal representative must within twelve months of his appointment file in the Orphans’ Court of his appointment a detailed account of his administration, and if such first account does not show the estate to be fully administered, further accounts must be filed at six-month intervals until the estate is fully administered. Above provisions also applicable to “estates of persons absent and unheard of for above seven years” who after due proof are declared by the Orphans' Court to be “judicially dead” and letters testamentary or of admin istration are granted on such estate as if the absent person were actually dead. The rights of such absent person are protected by requiring the legatees or distributees to give bond conditioned to repay sums received by them with interest, if such absent person should be in fact alive at the time distribution is made. Affidavits. (See Acknowledgments.) No particular form neces sary. but whoever can take an acknowledgment can take an affidavit Affidavit of mortgagee always required in a mortgage as to the bonafldes of mortgage consideration. (See Mortgages.) Aliens. Aliens, not enemies, may take and hold lands, tenements and hereditaments acauired by purchase, or to which they would, if citizens, be entitled by descent; and may sell, devise or dispose of the same, or transmit the same to their heirs, as fully and effectually, and in the same manner, as if by birth, they were citizens of this State. SYNOPSIS OF THE LAWS OF MARYLAND RELATING TO BANKING AND COMMERCIAL USAGES Revised by Blades & Rosenfeld, Attorneys at Law. 1206-1207 Fidelity Building, Baltimore. (See Card in Attorneys’ List.) In general. Bagby’s Annotated Code (1924-two volumes) and Supplementary Volume (1929) and the Acts of 1931, 1933 and 1935, and of the Special Session of 1933, which are not yet codified, embrace the Public General Laws of Maryland. By statutes, both the Code of 1924 and the 1929 Supplement have been legalized and made evidence of the law; especial reference to statutes in the following is therefore unnecessary. Acknowledgments may be taken within the United States before any Notary Public and are sufficient if attested merely by the signa ture and notarial seal of the Notary. No estate of inheritance or freehold, or any declaration or limitation of use, or any estate in land above seven years, shall pass or take effect unless the deed con veying the same shall be executed, acknowledged by all grantors and recorded, and no deed of real or leasehold property shall be valid for the purpose of passing title unless acknowledged by all grantors and recorded. Such deeds may be acknowledged by the grantor or grantors wherever they may happen to be at the time of execution https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Arbitration. Any cause in the law courts or Orphans’ Courts of this State (in their respective spheres) may. by rule of court and by consent and agreement of the parties thereto, be submitted and referred to the award and arbitrament of any person or persons, and the Court may give judgment on the award of the person or persons to whom such submission and reference shall be made as of the term to which said award shall be returned and award execution thereon as upon verdict, confession or non-suit. By agreement, disputes between employer and employee may be submitted, for arbitration, to any Judge or justice of the peace, or if the parties so elect, to a group of arbitrators appointed by such judge or justice of the peace, the deter mination of such judge, justice of the peace or of the arbitrators appointed by them to be filed as a judgment of the court presided over by the judge or justice of the peace to whom the dispute was sub mitted for arbitration. An agreement to arbitrate, as distinguished from a case actually submitted for arbitration, cannot be specifically enforced. Attachments for debt or for liquidated damages can be obtained in all cases when the defendant is a non-resident or has absconded, affidavit being first made by the plaintiff to the correctness of his claim and the fact that the defendant is a non-resident or has absconded. They may be also obtained in connection with an original process when the creditor or some one in his behalf shall give bond in double the amount of the debt, with sureties to be approved by the clerk, and make affidavit before the clerk of the Court where the suit is brought that the defendant is bona fide indebted to the plaintiff in the sum claimed, and that the plaintiff knows or has good reason to believe that the debtor has absconded or is about to abscond from the State, or that the defendant has assigned, disposed of, or concealed, or is about to assign, dispose of, or conceal, his property, or some portion thereof, with intent to defraud his creditors, or that the defendant fraudu lently contracted the debt or incurred the obligation; or that the defendant has removed or is about to remove his property, or some 1798 BANKING AND COMMERCIAL LAWS—MARYLAND portion thereof, out of this State, with intent to defraud creditors and the attachment may be maintained, although the debt or obliga tion upon which the action is brought may not have matured, but the date of the maturity of the debt or obligation must be set forth in the affidavit. A claimant may have the attached property released by filing a bond in double the amount of the appraisement. Any kind of property or credits belonging to the defendant, in the plaintiff's own hands or in the hands of any one else may be attached. There is a special provision for capital stock of a corporation. The certifi cate itself must be seized. Credits not due may be attached, but wages, hire or salary not due cannot be attached, and $100 of wages, hire, or salary due shall always be exempt. Imprisonment for debt is abolished. Defendant may be sued in the city or county of his residence or that of his place of business. In addition to attachments against non-residents or absconding debtors for debt (i. e., a liqui dated sum), as heretofore, attachments may now be issued against such debtors in cases arising from contracts when the damages are unliquidated, and in actions for wrongs independent of contract, but in such cases no attachments can be issued until a declaration is filed setting out specially and in detail the breach of the contract complained of or the tort actually committed, verified by the affi davit of the plaintiff or some one in his behalf, and until a bond shall be filed similar to the bond required in attachments for fraud. (Code Art. 9.) All papers in attachment proceedings can now be amended as in any other actions of law. If neither the Defendant nor Gar nishee appear condemnation may be had upon filing bond to be in force for period of six months, accounting from the return of the attachment. Bank Collection Code. Follows directly after Laws. Banks. Any number of persons, not less than five, citizens of the United States and a majority of them citizens of this State, may hereafter associate to establish a bank under this Article upon the terms and conditions and subject to the liabilities prescribed herein. The capital stock for any bank shall not be less than twenty-five thousand dollars ($25,000.00) in cities, towns, or villages having up to fifteen thousand (15,000) inhabitants, and shall not be less than seventy-five thousand dollars ($75,000.00) in cities, towns, or villages having more than fifteen thousand (15,000) and up to fifty thousand (50,000) inhabitants and shall not be less than one hundred thousand dollars ($100,000.00) in cities, towns and villages having more than fifty thousand (50,000) and up to one hundred and fifty thousand (150,000) inhabitants, and shall not be less than five hundred thousand dollars ($500,000.00) in any city, town or village having more than one hundred and fifty thousand inhabitants (150,000); the number of inhabitants in each case to be ascertained or determined by the last Federal or State enumeration; and no bank shall start business until all of the capital stock provided for in its charter and an additional sum equal to 20% thereof, as surplus shall have been paid for in full in money and no payment shall be regarded as made by the delivery of any note, security or property of any kind as a substitute for money, except as otherwise provided by law. Provided that this section shall not apply to any person, co-partnership, incorporated bank, or other incorporated institution now engaged in the banking business in this State, except in such cases where said person, co partnership, incorporated banks or other incorporated institution doing a banking business shall hereafter undertake to establish a branch or branches outside of the city, town or village in which they are now located. In such a case the foregoing provisions relative to capital and surplus shall be complied with, by adding to the capital and surplus of the parent institution, the amount that would be required hereunder if such branch or branches were separately incor porated. And provided further, that in estimating such addition to the capital and surplus of the parent institution, credit shall be given for the amount that the existing capital and surplus of such parent institution exceeds the amount thereof required by law ; and provided further, that no branch shall hereafter be established by any bank, in the city, town or village, where said bank is now located, until said bank conforms to the requirements herein provided, as to the minimum amount of capital stock for.banks in said city, town or village. (Chap ter 528, Acts of 1933.) No savings institution or savings bank incorporated after 1910 could have any capital stock, but must be a mutual association. Such “association for carrying on the business of savings banking may be formed by any number of persons, not less than fifteen, citizens o'f the United States, and a majority of them citizens of this State, who shall enter into articles of association which shall specify the object for which the association is formed and shall state: The name by which the savings institution is to be known, the village, town or city and county where such institution is to be located, the names and resi dences of the members thereof, the date on which it is proposed to commence operations, the number of directors proposed to manage the association’s affairs, which shall not be less than five, who must be members of the association, and the names and residences of the directors who shall serve the first year.” (Code Article 11, Sec. 31.) The articles of association shall be presented to the Bank Commis sioner for examination. lie will make an investigation and will either approve or refuse the formation of the savings institution. The banking laws of Maryland provide for the appointment of a Bank Commissioner with broad powers for the examination of all banking institutions in this State other than National Banks, and an annual report thereon to the Governor. Whenever capital is reduced by impairment commissioner may require Bank to make such defi ciency good within sixty days, and upon failure to do so may take possession of property and business of such institution and retain until affairs are finally liquidated, or until a reorganization has taken place which will fully protect depositors and creditors. This also applies where the business is conducted in an unsafe or unauthorized manner. Every banking and trust institution shall have the right of perpetual succession until forfeiture. (Chapter 188, Acts of 1927.) Every bank and trust company shall make to the Bank Commissioner not less than three reports during the calendar year, at such times as the Bank Commissioner shall require. At least once a year the bank or trust company shall report to the Bank Commissioner, on call by him, a list of its stockholders. The Bank Commissioner shall have a right to call for special reports, whenever in his judgment the same are necessary. (Chapter 373, Acts of 1927.) Banks are permitted to establish and operate branches within the State after having first obtained the approval of the Bank Commis sioner. No bank or trust company may have any affiliate or closely allied corporation, or own controlling stock in any other corporation. Stockholders of every bank and trust company shall be held indi vidually responsible, equally and ratably, and not one for another, for all contracts, debts and engagements of every such corporation, to the extent of the amount of their stock therein, at the par value thereof, in addition to the amount invested in such stock. Every bank, savings institution and trust company is specially granted the power and authority, if the action is approved by a vote of a majority of its Board of Directors, to become a member of the Federal Deposit Insurance Corporation. Blue Sky Law. No preliminary reports or qualifications are required and only if it shall appear to the Attorney General of Mary land that in the issuance, sale, promotion, negotiation, advertisement of securities within the State of Maryland, any person, partnership or corporation, is employing or is about to employ any device, scheme or artifice to defraud, or for obtaining money or property by means of any false or fraudulent pretense, representation or promise, the said Attorney General may require said person, partnership or cor poration to file with him a statement in writing under oath of all the facts concerning the same. From the action of the Attorney-General, there is an appeal to the courts, with final resort to the Court of Appeals. The Law also provides that any person, partnership or corporation having been served with any order of the Attorney General, or having https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis knowledge of the issuance of said order and while said order remains in effect, either as originally issued or as modified who shall execute or carry on any scheme or device against which said order has been issued, or wilfully attempts to do so, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than $10,000 or impris oned not more than two years or be subject to both fine and imprison ment, in the discretion of the Court. Collections. Uniform Bank Collection Code as recommended by American Bankers Association, see page 2333. Contracts. The normal condition of all persons is one in which they are capable of making any contract. The fourth and seventeenth sections of the Statute of Frauds are in force in Maryland. It is no longer necessary to show that the consideration for a special promise to answer for the debt of another is in writing. A citizen can not make a contract with an alien enemy during the continuance of hos tilities, but aliens, not enemies, may contract and hold real property as fully as citizens. The later cases decide contract of infants to be voidable and not void; and they are capable of ratification by infants on arrival at age of twenty-one. The contracts of infants for neces saries are binding upon them. The contract of a lunatic is voidable and not void. A married woman may engage in business, contract, sue and be sued upon contracts and torts, as if unmarried. All gambling contracts are void. Conveyances. No estate in or title to any land lying within this State, for any period above seven years shall pass or take effect unless the deed conveying the same shall be executed, acknowledged and recorded. Such deed shall be signed and sealed by the grantor, and attested by at least one witness. Unless the contrary intention appears, every deed is construed to pass the whole estate of the grantor. Deeds of real estate should be recorded within six months from date in county, or in Baltimore City, where land lies. "Where there are two or more deeds conveying the same lands, the deed first recorded shall be preferred if made bona fide and upon good and valuable consideration A scroll with the word "seal" therein by way of a seal, is sufficient, as “(signed) John Doe (Seal).” The Deed of a body corporate must be signed in the corporate name by the President or a Vice President, and the official Corporate seal impressed on the deed, the seal to be attested by the Secretary of the corporation. Corporations are organized under the authority of Article 23 of Bagby’s Code where most liberal provisions are made for general Incorporation, including such features as stock without par value, issuance of stock for considerations other than cash, convertibility of stock from one class to another class, cumulative voting, stock fully paid and non-assessable. convenient amendment and consolidation, etc. Every domestic corporation having capital stock, except rail road corporations and building associations, shall before the time of incorporation pay for the use of the State a bonus tax for its author ized capital stock at the following rates, to wit: Twenty cents for every thousand dollars of its authorized capital stock where such authorized capital stock amounts to $1,000,000.00 or less, but in no case less than $20.00. An additional bonus tax of $150.00 for every million dollars or fractional part thereof on amount of stock in excess of $1,000,000.00 and not in excess of $5,000,000.00. An additional bonus tax of $20.00 for every million dollars or frac tional part thereof in excess of $5,000,000.00. For purposes of above provisions as to bonus tax, stock without par value shall be treated as if its par value were $100,000 per share. Corporations have per petual succession, may carry on business anywhere, may issue bonds and secure them by mortgage of ail property including franchises. A foreign corporation before doing business in this State must pay a fee of $25.00 and file with the State Tax Commission of Maryland: (1) An officially certified copy of its charter or certificate of incorporation; (2) Annually thereafter a report to be filed on or before March 15th in every year subscribed and sworn tc by its president or treasurer (or a majority of its board of directors; and accompanied by a fee of $1.00 for filing such a report, showing (a) the corporate name; (b) the names and addresses of its president, treasurer, secretary, and members of its board of directors; (c) its main office in this State and its principal office in the State of incorporation; (d) the amount of authorized capital stock and the amount issued, and the number and par value of the shares, and the names and addresses of the cor poration’s shareholders in this State, and the number of shares held by each; and in such annual report shall be given such information as may be required by the State Tax Commission in order to enable it to determine the amount of capital employed in Maryland as of January 1st of the year for which such report is filed; (e) the name and address of its agent resident in this State, service of process upon whom shall bind the corporation until the appointment of a sub stitute is duly certified to the State Tax Commission. Every officer and every agent of such foreign corporation which fails to comply with the above provisions, shall be subject to criminal prosecution, and while such failure to comply shall not affect the validity of any contract made with such non-complying corporation, no suit can be maintained in the Courts of this State by such corporation until com pliance with above provisions. Both domestic and foreign corpora tions must pay to the State an annual franchise tax, the amount of which varies, if a domestic corporation, with the amount of capital stock of such corporation issued, outstanding and/or subscribed for, and if a foreign corporation with the amount of capital employed by it in this State as of the preceding first of January. The franchise tax is payable on or before the first of August in each year. The penalty for failure to pay the franchise tax, by the domestic corpora tion, is forfeiture of its charter, and by the foreign corporation is forfeiture of the right to do business in the State. No corporation may interpose the defense of usury in any action at law or in eauity. There is no period of limitations in this State on judgments against foreign corporations. Maryland corporations may hold stockholders’ meetings outside of this State under certain conditions. Courts. The Circuit Courts of the counties have common law jurisdiction in all cases involving more than $50.00, and in all cases involving title to land; and equity jurisdiction in all cases involving more than $20.00. The Circuit Court of Baltimore City and the Cir cuit Court No. 2 of Baltimore City have exclusive equity jurisdiction in the city. The Superior Court of Baltimore City, the Court of Common Pleas of Baltimore City, and the Baltimore City Court have concurrent common law jurisdiction in Baltimore City in cases involv ing more than $100.00. All records pertaining to the transfer of title to land in Baltimore City are in the custody of the Clerk of the Superior Court of Baltimore City, and in the counties, in the custody of the clerks of the various Circuit Courts of the counties. All such records are open to the public. The Orphans’ Court of Baltimore City, and the Orphans’ Court of each county have exclusive probate jurisdiction. In the counties justices of the peace have common law jurisdiction to the amount of $100.00 (concurrently with the Circuit Courts from $50.00 to $100.00). In Baltimore City the People’s Court has juris diction up to $100.00 and suits on small claims in Baltimore City are brought in this Court instead of before the individual justices of the peace. Depositions. When the courts are satisfied, by affidavit or other wise, that there are material and competent witnesses residing with out the State, they will direct that a commission be issued to take the testimony of such witnesses. The commissioners are selected by the court, and must qualify before some person authorized to admin ister an oath in the state where they reside. The depositions, duly certified by the commissioners, shall be admitted as evidence at the trial of the cause, subject to the same objections and exceptions as the same testimony would be if the witness had been personally present in court and there examined. Parties have the right to be present when the testimony is taken under the commission, and must receive BANKING AND COMMERCIAL LAWS—MARYLAND lien and lay foundation for enforcing it, the material man must within six months after the last work has been furnished, file a claim in the circuit court for the county. The liens are enforced by scire facias or by bill in equity. Limitations of Suits. Accounts and notes are barred after three years, sealed instruments after twelve years; judgments twelve years except against foreign corporations (no limitations). A verbal promise or acknowledgment will revive a debt barred by the statute. reasonable notice of the time and place. Interrogatories and crossinterrogatories may be annexed to the commission or the witness may be examined by counsel. The testimony of non-resident witnesses or parties to a cause may also be taken before a commissioner, notary public or justice of the peace upon giving notice of not less than five days to the opposite party of the time and place, when and where the testimony of such non-resident witnesses is proposed to be taken, and the name of the commissioner, notary public or justice of the peace before whom the same is proposed to be taken, together with the names of the witnesses proposed to be examined. Depositions shall be signed by the witnesses, and signed and sealed by the officer taking the same and returned to the Court in which the case is pending. Married Women. Act of 1898, Chap. 457, Code Art. 45, repeals and re-enacts the entire law in this State. Married women may hold and dispose of their property lawfully as if unmarried, but husband must join in conveyances of real estate to release his dower interest. Married women may engage in business, contract, sue, and be sued upon contracts and for torts, as if unmarried. Married woman is alone liable for ante-nuptial debts and contracts. Husband is still liable for necessaries. Where husband or wife is adjudged a lunatic upon inquisition, and the finding remains in force, other spouse may convey after acquired property by separate deed, as if unmarried. Surviving spouse is also allowed ahead of creditors $75 if no minor chil dren, $150 if children. Surviving spouse is entitled to (a) one-third of net personal estate if there are children or one-half thereof if there are no children and (b) the same share in net real estate or at optiou of surviving spouse in lieu of share of real estate surviving spouse, either husband or wife, may elect to take dower righta which are one-third of real estate for life ahead of creditors unless dower rights have been specifically waived or waived by joining in deeds. (See husband and wife, and Dower.) Descent and Distribution of Property. As to descent, see Code 1924, Art. 46, and as to distribution, Code 1924, Art. 93. The Rule In Shelley’s case has been abolished by Ch. 144, Acts 1912, Code 1924, Art. 93, sec. 342. See also Act 1933, Chapter 386. Dower. The common-law right of dower exists in Maryland, and extends to equitable estates. By act 1898, the husband’s dower was created; an estate of the husband in his wife’s estates of inherit ance, exactly equivalent to the wife’s dower in her husband’s estate. A devise or bequest of real or personal property to the wife or husband shall be construed to be in lieu of dower in lands or share of personal estate, respectively, unless otherwise expressed in the will. If the widow or widower renounces formally in writing, however, such pro vision made for her or him by the will within six months after the grant of administration on the estate of the deceased husband or wife, the dower right and the share of personal property remain undis turbed. “The surviving husband or widow shall be barred of his or her right of dower in real or personal estate, unless within six months after the first grant of letters testamentary, he or she shall file a written renunciation.” (See Married Women.) Executions may issue and judgments may be renewed or revived by scire facias at any time within twelve years from date of judgment or from the expiration of any stay, and may be thereafter levied on any property of the defendant. In the circuit courts for the counties there is a stay until the first Thursday of the term succeeding the rendition of the judgment, provided the judgment is obtained at the second term after the defendant is summoned. There is no stay upon judgments rendered in the courts of Baltimore City or by justices of the peace in the city or counties, but execution may issue forthwith. ' The defendant may stay the execution by superseding with sureties for six months. Copy of docket entries of judgment when recorded in another county makes the judgment a lien there. Exemptions. No homestead law. Wearing apparel, books and tools (not kept for sale) and $100 of money, land or goods, and $500 payable to the debtor as life, health, or accident insurance are exempt from execution, except (1) on judgments for breach of promise to marry or seduction and (2) aggregate exemptions not to exceed $500 and (3) not applicable to any but actual bona fide residents of this State. Foreign Corporations. (See Corporations.) Foreign Judgments. Judgments of the courts of other states certified under tne act of congress, are proper causes of action against any person subject to the process of the courts of this State. Fraud. When any false representation is made by one to another with the intent to defraud, and the defrauded party, thinking the alleged fraud to be true, acts upon it, any contract thus made can not be enforced. But if the injured party knows such representations to be false it can not be said to have influenced his conduct. For general doctrine in this State see McAleer vs. Horsey 35 Md. 439. Giving checks or drafts without provision for acceptance is prima facie evidence of intent to defraud, and is punishable as a crime unless such provision is made within ten days. Every person buying merchandise in bulk shall demand and receive from the vendor a written statement under oath containing the names and addresses of all creditors with amount of indebtedness at least ten days before the sale is consummated. The vendee at least ten days before con summating such sale shall notify all of said creditors either personally or by registered mail of such proposed purchase and is required to see that the purchase money is applied to the payment of the vendors debts shown on said statement. A sale or transfer of goods in bulk without such notice shall as to all subsisting creditors of the vendors be void. Special provisions of criminal law apply to the making of false financial statements. Garnishments. (See Attachments.) Holidays. Sundays; January 1 (New Year’s Day); February 22 (Washington’s birthday); March 25 (Maryland Day): Good Friday; May 30 (Memorial Day); July 4 (Independence Day); the first Mon day in September (Labor Day); September 12 (Defenders Day); October 12 (Columbus Day); all days of general and congressional elections throughout state; November 11 (Armistice Day'); Decem ber 25 (Christmas Day). When any of these days falls on Sunday the ensuing Monday is a legal holiday. All special days that may be appointed or recommended by the Governor of this State, or tho President of the United States, as days of Thanksgiving or Fasting and Prayer, or other religious observance, or for the general cessation of business, shall also be regarded as Legal Holidays, and all bills, drafts, checks and notes presented for payment or acceptance on these said days shall be deemed to be presented for acceptance or payment on the secular or business day next succeeding such holiday. Monday is treated as Sunday when immediately preceded by one of the holidays aforesaid. Husband and Wife. (See Dower, and Married Women.) In this State the husband is not liable for wife's ante-nuptial debts or contracts. Husband is liable for necessaries of wife. Husband has same interest in wife’s estate as wife has in husband's estate. Married women are expressly authorized to become partners and to contract with husband. Either can relinquish interest in other’s real estate by joint or separate deed, or by agent or attorney properly constituted. The wife’s property is protected by the Constitution from the debts of the husband. Interest. The legal rate of interest is 6 per cent per annum. A person proved guilty of usury forfeits the excess over the aggregate of the real sum lent and 6% interest thereon. Judgments bear interest from the date of the verdict. A corporation cannot plead usury. Licensed loan brokers may charge 3 34% per month on loans up to $300.00. Judgments are liens for twelve years from the date of rendition on any interest of the defendant in real or leasehold property within the county where rendered. They can be transferred from one county to another by sending a copy of the docket entries to the clerk for record. The lien commences from the date of the entry of the docket entries by the clerk. Judgments are not liens on mortgages or other personal property until execution has issued and the writ is in the hands of the sheriff. Liens. (See Judgments.) Mechanics’ Liens. Every building erected, repaired, rebuilt, or improved to the extent of one-fourth of its value is subject to a lien for work done or materials furnished for or about the same, except that there are no liens for materials furnished in Baltimore City. Every machine, wharf, or bridge, constructed or repaired is subject in like manner as buildings are, to a lien. All boats or vessels are subject to a lien for materials fur nished or work done in building, repairing, or equipping the same. Garages are given lien for storage and accessories. To secure the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1799 Mortgages are executed, acknowledged, and recorded the same as deeds, and are not valid against creditors unless recorded within six months after date. There must be an affidavit made by the mort gagee or his agent at any time before recording, that the consideration is true and bona fide. If made by agent, he must, in addition, make oath that he is the agent of the mortgagee. A like affidavit is required to chattel mortgages, and absolute bills of sale, both of which must be recorded within twenty days. The lien of a mortgage may, by ceasing to pay interest or any installment of the principal for twenty years, be barred. They may be foreclosed at any time after the debt becomes due and before the lien is barred. Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following “Digest of Banking and Commercial Laws.) Notes and Bills of Exchange. Negotiable instruments are defined by Ch. 119 of the Laws of 1898, which repeals ail laws, incon sistent with the provisions of this act. Section 20 provided as follows: “An instrument to be negotiable must conform to the following requirements: 1. It must be in writing and signed by the maker or drawer. 2. It must contain an unconditional promise or order to pay a sum certain in money. 3. Must be payable on demand, or at a fixed or determinable future time. 4. Must be payable to order or to bearer; and 5. Where the instrument is addressed to a drawee he must be named or otherwise indicated therein with reason able certainty.” Its negotiability is not affected by a seal, or by a provision which authorizes the sale of collateral securities in case the instrument be not paid at maturity, or authorizes a confession of judgment if the instrument be not paid at maturity; or waives the benefit of any law intended for the advantage or the protection of the obligor; or gives the holder an election to require something to be done in lieu of payment of money. It is not necessary that paper should be made payable at a bank or any fixed place. To charge indorser, notice of non-payment and of protest must at once be given to him. The time of maturity is regulated by Art. 13 as follows: “Section 104: Time of Maturity. Every negotiable instrument is payable at the time fixed therein without grace. When the day of maturity falls upon Sunday, or a holiday, the instrument is payable on the next succeeding business day. Instruments falling due on Saturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment before 12 o'clock noon, on Saturday, when the entire day is not a holiday.” Legal holidays. (See Holidays.) By act 1898, Ch. 198, it shall be lawful for banks and bankers in the city of Baltimore to close their doors for business at 12 o’clock noon, on each and every Saturday in the year, and every Saturday in the year, after 12 o’clock noon, shall be a legal half holiday, so far as regards the presenting for payment or acceptance, and the protesting and giving notice of the dishonor, of bills of exchange and other negotiable paper, and for these purposes shall be considered as the first day of the week, or Sunday, and all negotiable paper shall be deemed to be presentable on the secular day next succeeding. Power of Attorney. Every power of attorney authorizing an agent or attorney to sell and convey any real estate, shall be attested and acknowledged in the same manner as a deed, and recorded prior to or with the deed executed in pursuance of such power of attorney A corporation shall have power to appoint an attorney for the same purpose, under its corporate seal. Such power of attorney shall be deemed to be revoked when the instrument containing the revocation is recorded in the office in which the deed should properly be recorded. Probate Law. (See Administration of Estates and Wills.) Protest is usually made by notary public. Notary must iceep register of protests. A protest of notary public is prima facie evidence of non-acceptance or non-payment, and of the presentment of said note for payment, or of said bill for acceptance or payment, at the time and in the manner stated in the protest, and the protest shall also be prima facie evidence that such notice has been sent or delivered in the manner therein stated. (See Notes and Bills of Exchange.) Replevin is a remedy to recover specific goods and chattels to whose possession the plaintiff is entitled. Also the proper remedy to recover possession of goods distrained unlawfully. Bond must be given to the State of Maryland, and any party having an interest in the property, may, upon breach of any covenant in bond, maintain an action in the name of the State for his or her use. Sales and Notices. Acts 1910, Ch. 346, adopts the Uniform Sales Act. (Art. 83, secs. 22 to 99 incl.) Taxes. The county commissioners of the several counties of the State, and the Mayor and City Council of Baltimore City are directed to levy a tax annually upon real and personal property situated within the State. The County and/or City tax on Banks located and in business anywhere in Maryland is uniformly 1 per cent. The prop erty of religious, charitable, benevolent, and educational institutions, and cemetery companies is exempt from taxation. On timely applica tion exemption may be had for manufacturer’s tools and machinery in actual use from Municipal taxation in Baltimore City and in some of the Counties. Collectors may sell property to compel payment of overdue taxes, upon giving due notice of sale, and complying with other requisites of statute, and any person interested in property may redeem within twelve calendar months from date, and in default of redemption, title to property vests in purchaser. Taxes are con sidered in arrears on first day of July next succeeding the date of their levy. Trust Companies. Five or more persons, citizens of the United States, and a majority of them citizens of this State, may form a cor poration to be known as a trust company. The capital stock of such corporation must be at least seven hundred and fifty thousand dollars; provided, however, that a corporation with a capital of not less than two hundred thousand dollars may be organized in a city containing more than one hundred thousand and less than two hun dred and fifty thousand inhabitants, and a corporation may be organ ized with a capital of not less than one hundred and fifty thousand 1800 BANKING AND COMMERCIAL LAWS—MASSACHUSETTS dollars in a city containing more than twenty-five thousand inhabi tants and less than one hundred thousand inhabitants, and with a capital of at least one hundred thousand dollars in a city or town the population of which does not exceed twenty-five thousand inhabitants, the number of inhabitants in each case to be ascertained or determined by the last Federal or State enumeration, and no trust company shall start business until all of the capital stock provided for in its charter and an additional sum equal to 20% thereof as a surplus, shall have been paid for in full in money and no payment shall be regarded as made by the delivery of any note, security or property of any kind as a substitute for money, except as otherwise provided by law. In the event that any trust company hereafter establishes a branch or branches outside of the city, town or village in which it is now located, it shall add for each branch established, to its paid-in-capital the following sums and twenty per cent (20%) thereof as additional surplus; the sum of twenty-five thousand dollars in towns or villages having less than fifteen thousand (15,000) inhabitants; seventy-five thousand dollars in towns, villages or cities having more than fifteen thousand (15,000) and up to fifty thousand (50,000), inhabitants, and not less than one hundred thousand dollars in towns or cities having more than fifty thousand and less than one hundred and fifty thou sand inhabitants; and not less than five hundred thousand dollars in cities having more than one hundred and fifty thousand; the number of inhabitants in each case to be ascertained or determined by the last Federal or State enumerations; unless the surplus and paid-in capital of such trust company is already sufficient under the present conditions of the law to provide the surplus and capital required by a trust com pany hereunder doing business in the city, town or village in which it may be located, and for branches in cities, towns or villages in which it proposes to establish branches; provided, however, that no branch shall hereafter be established by any trust company, in the city, town or village where said trust company is now located and engaged in business, until said trust company conforms to the requirements herein provided as to the minimum amount of surplus and capital stock for a trust company in said city, town or village. Uniform State Laws. Intended for adoption by all the States and adopted by Maryland: 1. State Law for Aeronautics; 2. Air Licensing Act; 3. Bank Collection Code; 4. Bills of Lading; 5. Cold Storage; 6. Extradition of Persons of Unsound Mind; 7. Federal Tax Lien Registration; 8. Fiduciaries; 9. Flag; 10. Foreign Acknowledg ments; 11. Foreign Depositions; 12. Foreign Executed Wills: 13. Fraudulent Conveyance; 14. Interparty Agreement; 15. Limited Partnership; 16. Negotiable Instruments; 17. Partnership; 18. Proof of Statutes; 19. Salas: 20. Stock Transfer; 21. Warehouse Receipts. 22. Machine Gun Act. Wills of land or personal property, and any codicil thereto, must be in writing, signed by the testator, or some one else for him, in his presence, at his request, and witnessed by two or more credible wit nesses. as and for last will and testament of the testator, in the presence of all the witnesses thereto. Nuncupative wills invalid except In case of disposition of personal property by soldiers in actual military service or mariners at sea. Every will or other testamentary instru ment executed without this State in the mode prescribed by law, either of the place where executed or of the testator’s domicile, or according to the forms required by the law of this State shall be deemed to be legally executed, and shall be of the same force and effect as if executed in the mode prescribed by the law of this State, pro vided, said last will and testament is in writing and subscribed by the testator; and if the testator was originally domiciled in Maryland, although at the time of making the will or at the time of his death he may be domiciled elsewhere, the said last will or testamentary instrument so executed shall be admitted to probate in any orphans’ court of this State; and when so admitted shall be governed by and construed and interpreted according to the law of Maryland, without regard to the lex domicilii, unless the testator shall expressly declare a contrary intention in said will or testamentary instrument. Code Art. 93, sec. 334. No will, testament, codicil, or other testamentary paper shall be subject to caveat or other objection to its validity after the expiration of one year from its probate. (Act 1933 Ch. 357.) When a person is unheard of for above seven years, and supposed to be dead, the Orphans’ Court, under the provisions of Act of 1908, Ch. 125, may grant letters testamentary or of administration as the case may be on his estate. SYNOPSIS OF THE LAWS OF MASSACHUSETTS RELATING TO BANKING AND COMMERCIAL USAGES Revised by Maurice L. Katz, Attorney at Law, 41S Park Building Worcester. Mass. (See Card in Attorneys’ List.) Accord and Satisfaction. An accord is an agreement whereby one of the parties undertakes to give or perform, and the other to accept in satisfaction of a claim, liquidated or in dispute, and arising either from contract or from tort, something other than or different from what he is or considers himself entitled to; and a satisfaction is the execution of such agreement. Where the claim is undisputed, and is settled only in part, such part payment is without consideration and the balance can be collected. This, however, can be remedied by taking a release under seal which purports a consideration in full settlement of the entire claim. In order to take advantage of a suit pending in court because of accord and satisfaction, it must be specially pleaded in the defendant's answer. However, in case of a disputed claim, the acceptance of a smaller sum in lieu of the entire claim is a valid consideration and therefore Is a full release on the entire claim. Accounts. Ex parte affidavit on claims and accounts Is of no value. They must be established by evidence produced in court after suit brought either by testimony, deposition, or other material evidence. Acknowledgments and Deeds. Acknowledgments may be made before any justice of the peace, notary public or special commissioner in the State; when the acknowledgment is made by any person with out this State and within any other state, territory or district of the United States, it may be made before any officer of such state, terri tory or district authorized by the laws thereof to take the proof and acknowledgment of deeds, and when so taken there shall be attached to the certificate of acknowledgment a certificate of the secretary of the state or territory in which such officer resides, under the seal of the state or territory, or a certificate of the clerk of a court of record of such state, territory or district, in the county in which such officer resides, under seal of said court, certifying as to the authority, of such officer to take acknowledgments and as to the genuineness of his signature. In deeds where there is more than one grantor, the acknowledgment of one of them is sufficient. Official taking acknowledgment should state date of expiration of his commission. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis No separate examination or acknowledgment of wife joining in a release of dower necessary. Conveyances of land are made by deed under seal executed by the grantor or attorney having authority therefor. A conveyance in fee, for life or for a term exceeding seven years, shall not be valid, except as against the grantor and persons having actual notice of it, unless recorded in the county in which the real estate is situated. Deeds should be under seal. No subscribing witness is necessary. Release of dower homestead and other interests must be explicitly stated in deed, wife’s joining in deed merely, being insufficient. Husband and wife may make conveyances of real estate to each other except by way of mortgage, as if unmarried, but no such conveyance shall have any effect, either in passing title or otherwise, until the deed describing the property to be transferred is duly acknow ledged and recorded in the registry of deeds for the district where the land lies. Any interest in real estate may be transferred by a person to himself jointly with another person or persons in the same manner in which it might be transferred by him to another person, except a con veyance to bimself and his wife as joint tenants, or as tenants by the entirety. No interest in land except an estate at will can be created except by instrument in writing or by operation of law. Actions. There are three classes of actions: contract, tort, and replevin. Actions at law are begun by writs issued in blank form by the clerks of the several courts. No declaration need be inserted in the writ, except in cases of arrest on mesne process or of an attach ment of a vessel. Suits in equity are begun by filing a bill of complaint with the Clerk of the Superior Court upon which a subpoena or order of notice is issued by the clerk of the court. Actions begun by trustee process must be brought in the county In which the trustee or one of them resides or has his usual place of business. Administration of Estates. Administration or probate is to be taken out in county where deceased last resided. Executors or admin istrators are required to give a bond of about double the value of the personal estate. An executor will be exempt from giving sureties if testator so directs and all creditors are notified by publication or in manner designated by probate court. An administrator will be ex empt if all persons interested in this State except creditors consent and all creditors are notified by publication. In case a non-resident is appointed executor or administrator, he must appoint a resident agent. There are public administrators in each county to whom administration is granted upon estates of persons who die intestate leaving property, and not having any husband, widow, or heir in this State. Ancillary administration may be granted upon the estate of a non-resident who dies leaving property in this State. Every administrator and executor shall file an inventory within three months, and publish notice of his appointment. Notice of a debt, and demand for its payment should be given to an executor or administrator within six months after his appointment and the debt should be paid after six months and within one year of the appointment. No suit can be brought by a creditor against an executor or administrator within six months after his giving bond, except on a claim not affected by the insolvency of the estate. No suit can be brought against an executor or administrator who has published notice of his appointment, after one year from time of his giving bond, unless he has received new assets after the expiration of the one year, or unless further time is allowed by court. A creditor whose claim does not accrue within the one year may cause assets to be reserved to answer to his claim. When the estate Is insufficient to pay all claims, the executor or administrator shall represent the estate insolvent and commissioner will be appointed to receive proof of claims, or the Court may receive and act upon the claims. Claims for funeral expenses, last sickness, and charges of administration, are not affected by the insolvency of the estate. Executors and administrators shall render an account at least once • year. Aliens have the same rights and liabilities as natural persons do, only so, during the continuance of peace between the country of the alien and our own country. When war exists between the respective nations, the alien cannot sue but may be sued by a citizen of this country. Ordinarily contract rights are suspended during the oper ation of war unless the alien is within our territory, then he may be sued as above stated. Arrest. Right of arrest exists irrespective of domicile of either party. The debtor may be arrested and imprisoned on execution after the same is obtained, if the execution is not otherwise satisfied, and the debtor has property which he conceals and fails to surrender to his creditors, and he fails to make a fair and full disclosure of hit property and his ability to pay money in reference to the debt owed by him, after the creditor has cited him in the District Court where Supplementary Process is had, and after the examination by the creditor or his attorney it is found that he has money or property and won't pay, then the Judge may order weekly payments or place the debtor in jail for contempt of court by reason of his failure to obey the court orders generally. If no assets are discovered the debtor will be discharged and the proceedings dismissed. The creditor may. one year from date thereof, cite the debtor into court once again and examine him anew as to his assets, property, and ability to pay on the debt. (See Acts of 1927. (Mass.) Chp. 334—Supplementary Process) Assignments for benefit of creditors. A voluntary assignment to trustees for benefit of creditors can not be avoided by creditors who assent thereto, except by proceedings in bankruptcy begun within four months or by proof of fraud. If there is property in excess of the claims of creditors who have assented, the excess in hands of the trustee can be reached by trustee process. As a matter of procedure the assignee usually waits the full four months from date of assign ment before making distribution amongst assenting creditors. Where Claims Are Assigned. The assignee, at common law, by virtue of the assignment could sue on the contract, but only so in the name of his assignor where no written assignment appeared. By Statute. If the assignment is evidenced by a written docu ment, then by virtue of the statute hereon, the assignee has an election of remedies, to wit, sue in his own name, or in the name of his assignor, on the contract so assigned. An assignment is considered a legal chose in action, and the assignee may prove a claim in bankruptcy in his own right and name, provided the assignment is made prior to the institution of bankruptcy proceed ings, subject, however, to all defences and to all rights of counter-claim, recoupment, or set-off to which the debtor would have been entitled if the action had been brought by the assignor. The assignee's rights and liabilities are those of the assignor purely, and it should be remembered that the assignee is not considered as a holder in due course of trade, as a holder of a negotiable instrument. The assignee steps into the shoes of the assignor and all personal defences available against the assignor are good as against the assignee. Where Wages Are Assigned. By virtue of Statute, future wages of a person may be assigned for a period of two years from the date of the assignment only, and It shall be valid to all intents and puroses, if the document is formally executed, the consideration shown l apt words, rate of interest, signed by the parties thereto, and a copy delivered to the assignor by the assignee. Three-fourths of the weekly wages of the assignor shall be exempt from assignment and no assign ment shall be valid which does not so state on its face. No such assignment shall be valid when made by a married man unless the written consent of his wife is attached thereto. A standard form of assignment may be found in Chap. 154 of the General Laws. Future Earned Wages may be assigned for a period of only one year, where the assignment is given as security for a loan of money less than $300 in amount. The employer must accept the order of the assignment by a writing attached to the assignment and recorded. If the assignor is married, then it is necessary to a valid assignment of his wages that the wife by written consent agrees to the assignment and such written consent must be attached to the assignment. Ten dollars of the assigned wages must be exempt and must be so stated on the face of the assignment when recorded in order to be valid. g BANKING AND COMMERCIAL LAWS—MASSACHUSETTS Notice to Third Persons or Creditors When. Until the assign ment Is placed on record at the City Hall, In the office of the City Clerk or Town Clerk, in the place where the assignor lives, or If he la a non-resident of the State, then In the city or town where he is em ployed. to be effective against attaching creditors. No assignment of future earnings shall be valid against a trustee process unless before service of the writ on the alleged trustee, the assignment has been duly put on record where the assignor resides at the time of such record. Attachment. All real estate, goods, and chattels not exempt, may be taken in attachment on the original writ and held as security for judgment, except that lands and tenements can not be attached In suits involving less then $20. Attachments may be made in suits by or against non-residents as well as in suits by or against residents. No bond is required to make an attachment. Shares of stock in corporations cannot be attached except by bill in equity. Attachment of shares of stock is not valid against a bona fide transfer although not recorded in book or corporation. Debtor may dissolve attachment by furnishing bond with sureties to pay judgment obtained or value of property attached determined by appraisement. Debtor against whom judgment is rendered may be subjected to sworn examination touching his property under the Supplementary Process Statute. An attachment is dissolved by death of the defendant if administration Is granted upon his estate upon application made within one year after his death. Levy must be made on execution obtained by attachment on real estate within 30 days from date of judgment. Banks. The banking business is extensively regulated by statute. In general, savings banks, co-operative banks, trust companies, or other corporations or persons doing banking business in Massachusetts are subject to supervision of commissioner of banks. (General Laws, ch. 167, ch. 168, ch. 169, ch. 170, ch. 172) and amended by Chapter 349 of the Acts and Resolves of the Commonwealth year 1934. No foreign banking association or corporation shall transact business in Massa chusetts until it has received certificate from board of bank incor-, poration. For extensive provisions relative to Savings Banks, see Gen. Laws, ch. 168. The trust company is the prevailing form of banking institution. Fifteen or more persons associating by written agreement may, upon compliance with statute, become a trust company. Agreement of association must set forth corporate name, purpose, city or town in Massachusetts where business is to be transacted, amount and classes of its capital stock and number of shares into which it or any class is to be divided. Notice of intention to form trust company shall be given to board of bank incorporation, and such notice must be pub lished. Unless the board issues a certificate that public convenience and advantage will be promoted by establishment of such a trust company, no further proceedings shall be had, but after one year the application may be renewed. After the first meeting of the sub scribers the clerk and majority of board of directors execute in dupli cate articles setting forth copy of agreement of association, names of subscribers and names and residences of officers, date of first meeting, and successive adjournments thereof, if any. When the whole capital stock has been issued, a new list of the stockholders, with the name, residence and post-office address of each, and the number in each class of shares held by each shall be filed with the Board of Bank incorpora-, tions, which list shall be verified by the Clerk of the Corporations. The articles are filed with the secretary of state, with filing fee of one twen tieth of 1 per cent of capital stock, and certificate of incorporation issues. Before business can be commenced a certificate authorizing such must be obtained from board of bank incorporation. (Gen. Laws, ch. 172, section 11). A director of trust company must hold at least capital stock of a par value in the aggregate of not less than $1,000, the same to be unpledged, and majority of directors must be citizens of and resident in Massachusetts. Except in smaller munic ipalities capital stock of trust company must be not less than $200,000; shares par value of $100 each. Entire capital stock must be paid in in cash. Common stockholders of trust company shall be personally liable, equally and ratably and not one for another, to amount of their stock therein at par in addition to amount invested in such shares, for all contracts, debts and engagements of the corporation. In case of impaired capital, bank commissioner has authority to act. Commissioner of banks has extensive power to require returns and to supervise and examine. Savings departments may be estab lished. The kinds of business which may be done are prescribed by statute with considerable detail. Employees or officers of a bank are liable to fine or imprisonment if they receive a deposit knowing that such bank is insolvent. An Emergency Law was also enacted and approved May 12, 1932, Incorporating The Central Credit Union Fund Inc. for the purpose of a relief measure necessary for the immediate preservation of the public convenience. By assisting such Credit Unions as become members thereof, when they are temporarily in need of cash or hold investments which cannot be readily liquidated, by making loans to them or any of them, and it shall have the rights and powers and be subject to the duties and obligations hereinafter provided in Sections 2 to 7 of this act. Refer to Chapter 216 of the Acts and Resolves of Massachusetts 1932. Am Emergency Law was enacted and approved March 2, 1932, creating The Co-operative Central Bank, making all The Co-operative Banks now established under the laws of the Commonwealth and subject to the provisions of Chapter 170 of the General Laws, member banks thereof as provided in Chapter 45, Sections 1 to 11. The purpose of the central bank was to promote the elasticity and flexibility of the resources of the co-operative banks of the common wealth by centralizing their reserve funds. The deposits by the member banks, together with any surplus which may hereafter be accumulated by the central bank, shall constitute its capital structure. The central bank shall be exempt from all State and local taxation, except in respect to any real estate owned and, or used by it for its corporate purposes. An Emergency Law was passed and approved March 2, 1932, creating The Mutual Savings Fund Inc. for the purpose of pro tecting deposits in Savings Banks, as provided in Chapter 44, Sec tions 1 to 9 of the 1932 Acts and Resolves of Massachusetts. The enactment of this law will enable the Corporation to assist such member banks when they are temporarily in need of cash or hold investments which cannot readily be liquidated, by making loans to them or any of them secured by the pledge of mortgages or other securities legally held by such member banks. Any savings bank hereafter established during said term under the authority of said Chapter 168 shall upon its organization become a member bank. Bills and Notes. The law of negotiable instruments is governed by the Negotiable Instruments Law, as amended, where applicable; In other cases by the law merchant. A person becoming a party to a non-negotiable promissiory note payable on tme, by signature In blank on the back thereof, is entitled to notice of non-payment same as an indorser. A depositary of funds, subject to withdrawal by check or demand draft may pay a check or demand draft drawn on It by a depositor having funds on deposit to pay same, notwithstanding his death, upon presentation within ten days after its date. Protest of bill, note or order duly certified by notary public under his hand and official seal is prima facie evidence of facts, stated In such Drotest and of giving notice to drawer or indorser. There are various statutory provisions bearing upon the validity of the notes of municipalities of this Commonwealth. Where a nego tiable instrument is not payable on demand, presentment must be made on the day it falls due. Where it is payable on demand present ment must be made within a reasonable time after its issue. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1801 An accommodation party to a negotiable instrument is liable thereon to a holder in due course notwithstanding such holder at the time of taking the instrument knew him to be only an accommodation party. When the day, or the last day, for the performance of any act, includ ing the making of any payment or tender of payment, authorized or required by statute or by contract falls on Sunday or on a legal holi day, the act may be performed on the next succeeding secular or busi ness day, unless it is specifically authorized or required to be performed on Sunday or on a legal holiday. Every negotiable Instrument Is payable at the time fixed therein without grace, except that three days of grace shall be allowed upon a draft or bill of exchange made payable within Massachusetts at sight unless there is an express stipulation to the contrary. Where the day, of maturity falls upon Saturday, Sunday, or a holiday, Instrument is payable on next succeeding business day which is not a Saturday. Instruments payable on demand may, at option of holder, be presented for payment before twelve o’clock noon on Saturday when that entire day is not a holiday; provided however that no person receiving any check, draft, bill of exchange or promissory note payable on demand, shall be charged with any neglect or omission of duty or incur any liability, for not presenting for payment or acceptance or collection such check, draft, bill of exchange, or promissory note on a Saturday; provided also that the same shall be duly presented for payment, acceptance, or collection on the next succeeding business day. Under certain circumstances the original named payee or order paper may be a holder in due course. No bank shall be liable to a depositor, or to the drawer of a bill of exchange upon the bank, for an amount charged to or collected from him on account of payment by such bank of a negotiable instrument upon which the signature of any party is forged, or which is made, drawn, accepted or indorsed without authority, or which is materially altered or the amount of which is raised; unless within one year after return of such negotiable instrument to such depositor or drawer, he shall notify the bank in writing that, as the case may be, the instru ment was made, drawn accepted or indorsed without authority, that signature of a party to instrument is forged, or that instrument has been materially altered, or that the amount has been raised. Bills of Lading. The so-called Uniform Bills of Lading Act Is in force, and has been held constitutional by the Supreme Judicial Court. A bill in which it is stated that the goods are consigned or destined to a specified person is a non-negotiable or straight bill. A bill in which it is stated that the goods are consigned or destined to the order of any person named in such bill is a negotiable or order bill. A non-negotiable bill cannot be negotiated, and indorsement of such a bill gives transferee no additional right. A negotiable bill may be negotiated by indorsement of person to whose order goods are deliv erable by tenor of bill. Such indorsement may be in blank or to a specified person. If indorsed to a specified person it may be nego tiated again by the indorsement of such person in blank or to another specified person. Subsequent negotiation may be made in like man ner. A negotiable bill may be negotiated by any person in possession of same, however such possession may have been acquired if, by the terms of the bill, the carrier undertakes to deliver the goods to the order of such person, or if at time of negotiation bill is in such form that it may be negotiated by delivery. Indorsement of bill does not make Indorser liable for any failure on part of carrier or previous In dorsers of the bill to fulfil their respective obligations. Any pro vision in an order bill that it is non-negotiable shall be void. Bills of Sale. A bill of sale of personal property Intended for security must be recorded, the recording provisions as to mortgages of personal property being applicable. See Chattel Mortgages. Ch. 255 of General Laws. Blue Sky Law. Acts of 1921, ch. 499, approved May 27, 1921, entitled Promotion and Sale of Securities. Act applies to no con tracts valid and effective before act became effective. Certain secur ities are exempted. Act defines at length what is meant by security and sale. Persons dealing in securities within operation of act must be registered and information specified must be furnished commission. Certain classes of sales and certain securities are exempted from operation of Act. Annual fee for broker, $50, for salesman, $2. Act does not limit any statutory or common law right of any person to sue civilly or right of state to punish for violation of any law. Com mission has power of inquiry, of summoning witnesses and of sus pending certain sales. Act has immunity provisions. Violation of act punishable by fine of not more than $5,000 or imprisonment not more than two and one-half years or both. Scope of law extended by Acts 1924, ch. 487, which should be consulted. Chattel Mortgages. Chattel mortgages must be recorded In the records of the city of town where the mortgagor resides when the mortgage is made, and in the city in which he then transacts business, every mortgage, must be recorded within fifteen days of the date, until recorded the mortgage is not valid except between the parties and record subsequent to time limited is void. If mortgage is given by non-resident mortgagor, record must be made in city or town where property then is. If record in two places is required, and mortgage is recorded in one place within fifteen days, it may be recorded In other place within ten days after date of first record. The mortgage ■hall not be valid against a person other than the parties thereto until so recorded. A mortgage of after-acquired property is good as against an attach ing creditor where possession of the after-acquired property is obtained before attachment thereof is made and subsequently retained by the mortgagee. A mortgage is good, however, between the parties, thereto, although unrecorded and no actual or constructive delivery of the property takes place. A Chattel Mortgage may be foreclosed by notice delivered per sonally or by publication, and notice with proof thereof must be recorded where the mortgage was recorded. After sixty days, the foreclosure becomes complete if the condition is not performed. Chattel Mortgages may De assigned. Upon performance of the conditions therein contained the mort gagor is entitled to a release. Where the mortgagor defaults, then the mortgagee may sell the goods at public auction by giving notice, in accordance with the time as specified in the mortgage, or advertising sale for three successive weeks in a local newspaper in said City or Town. The proceeds of the sale are applied to repay all sums secured by the mortgage and all costs and expenses incurred by reason of the sale. The surplus, if any. shall be forthwith paid to the mortgagor. Conditional Sales of personal property are valid in this juris diction and the vendor may retain title for the unpaid purchase price therefor. It is usually a written formal document. It need not be recorded and will be good generally as against an attachment of the property in the hands of the conditional vendee, except by special statute. Where the sale of personalty consists of household furniture, or other household property, then if title still remains in the vendor till the last payment has been made, the vendee must be given thirty days notice in writing by the vendor as to the breach of condition of ■ale before the goods or furniture can be repossessed, and also attached thereto by the vendor to said written notice must be an itemized statement showing amount due. If seventy-five per cent of the pur chase price has been paid on the contract when the vendee so requests, the vendor must sell the goods at public auction and the proceeds ■hall pay the vendor his balance due, and any surplus over and above this shall forthwith be paid to the vendee. Corporations. By special act of 1903, chapter 437, the law of business corporations was revised and as amended, and now codified In General Laws, applies to all corporations organized in this common wealth for the purpose of carrying on business within the common wealth for profit, except the following: Banks, savings banks, co- 1802 BANKING AND COMMERCIAL LAWS—MASSACHUSETTS operative banks, trust companies, surety or indemnity companies, safe deposit companies, insurance companies, railroad or street railway companies, telegraph or telephone companies, gas or electric light, heat or power companies, canal, aqueduct or water companies, ceme tery, or crematory companies, or any corporation which now have or may hereafter have the right to take or condemn land, or to exercise franchise in public ways, provided that corporations, formed for purpose of dealing in real estate shall state the term of the duration of the corporation, such term not to exceed fifty years. Three or more persons may associate together and form a corporation for carrying on any lawful business not included in the above provisions Such a corporation must have a capital of not less than S1,000, if having shares only with par value. There is no maximum limit. Business corporations may create shares of stock with or without par value, and corporations with stock with par value may, by appropriate proceedings, change such stock to stock without par value. The stock may be divided into two or more classes with such references, voting powers, restrictions and qualifications as may e fixed by the agreement of association. Upon due organiza tion of the associates and filing a copy of the agreement of association and articles of organization with the commissioner of corporations and on payment of a fee of one-twentieth of 1 per cent of total amount of authorized capital stock with par value, and five cents per share for all authorized shares without par value, but in no case less than $50, a certificate of incorporation is issued by the secretary of state. The capital stock may be issued for cash, property, tangible or intangible services or expenses, but not for notes. The amount of capital stock may be increased from time to time. The corporation must have not less than three directors, president, clerk and treasurer. The directors, treasurer, and clerk are elected by the stockholders. The president is chosen by and from the board of directors. The clerk must be a resident of the commonwealth. Meetings of stockholders must be held within the commonwealth, but directors may meet within or without the commonwealth. Voting by proxy is per mitted, but no proxy dated more than six months before the meeting named is valid. Any corporation may hold, purchase, con vey mortgage or lease such real or personal property as the purposes of the business may require. Every such corporation is required to file an annual report of Its condition, and if its capital stock is over $100,000, shares without par value being taken as of $100 in value, to file a written statement under oath by an auditor. It is also required to make an annual return to the tax commissioner. Every foreign corporation which has a usual place of business here, or is engaged here permanently or temporarily in the construc tion, erection, alteration or repair of a building, bridge, railroad, rail way or structure of any kind, shall before doing business here appoint the commissioner of corporations, its attorney for the service of proc ess. such authority to continue as long as any liability remains out standing against it in this commonwealth, and shall file with the commissioner of corporations a copy of its charter, articles or certifi cate of incorporation, by-laws, and a certificate setting forth its name, location of principal office, names and addresses of its officers, date of its annual meeting, amount of its capital stock authorized and Issued, the number and par value of its shares, the amount paid thereon, and details of any payment thereof not made In money. Such corporations are required to file annual statements with the commissioner of corporations showing their condition. If It fails to file a copy of the charter, by-laws, etc., as above, it cannot maintain any action started by it in any court in this State. This has to be pleaded by a Plea in Abatement, or may be otherwise specifically pleaded, in each action. Courts. Terms and Jurisdiction. Trial justices may severally hold courts within the counties for which they are appointed, and shall have original jurisdiction, exclusive of the superior court, of all actions of contract, tort, or replevin, where the debt or damages demanded or value of the property alleged to be detained does not exceed $100, and concurrent jurisdiction with the superior court of such actions where such amount exceeds $100 and is less than $300. District courts may in their respective counties have original juris diction, exclusive of the Superior Court, of actions of contract, tort or replevin, in which the debt or damages demanded or the value of the property alleged to be detained does not exceed $100 and have original and concurrent jurisdiction with the Supreme Court of actions of contract, tort replevin in which the debt or damages demanded or the value of the property alleged to be detained is more than $100. The former limitation upon the jurisdiction of district court (of cases under $3000) has been removed and the district courts now have con current jurisdiction with the superior court over all actions of contract or tort. The supreme judicial court has original jurisdiction in equity matters and may on appeal hear all matters determined by the pro bate court, and determine questions arising under wills. Superior court has jurisdiction where the amount claimed exceeds $20. Munici pal court of the city of Boston has jurisdiction concurrently with superior court in the county of Suffolk, in actions where the debt does not exceed $5,000, provided one or more of the defendants resides or has his usual place of business in the county of Suffolk. The Land Court has exclusive original jurisdiction for registering titles to real estate under the Torrens system. The Probate Courts have jurisdiction over administration of estates of deceased persons, matters of adoption, guardianship, conserva torship, trusts under wills and written instruments, petitions for separate support, and of partition of land, and divorce. There Is a Probate Court and Registry of Probate in each county. Equity jurisdiction is lodged in the Superior Court and In Supreme Judicial Court. By statute Probate Courts have jurisdiction in equity In certain special matters. Small Claims Procedure. General Laws of Massachusetts, Chap ter 218, Section 21, provides for a simple, informal and inexpensive procedure, for the determination, according to the rules of substantive law, of claims in the nature of contract or tort, other than slander and libel, in which the plaintiff does not claim as debt or damages more than $35 (the amount has since been increased to $50) and for a review of judgments upon such claims when justice so requires. The procedure is not exclusive, but is alternative to the formal pro cedure for causes begun by writ. The method of procedure is very simple and does away with the requirement of attorneys and enables the creditor to file his own papers in court at a minimum cost. Service is made by registered letter sent out by the Clerk of the District Court. Death. Where a person Is absent and unheard from for a period of seven years, said person is presumed to be dead in legal theory. Depositions. Taking of such is governed by statute and rules of courts. The commission Issued to take depositions contains full Instructions to magistrate how to proceed. Descent and Distribution of Property of Decedents. After deducting widow's allowance and allowances for minor children, and payment of debts and expenses of administration, the remaining personal and real estate is distributed as follows: If deceased leaves no issue, surviving husband or widow shall take $5,000 and one-half of remaining real and personal property. If deceased leaves issue, surviving husband or widow shall take one-third of remaining real and personal property. If deceased leaves no kindred, surviving husband or widow shall take whole of remaining real and personal property. A husband on death of wife shall hold for his life one-third of all land owned by her at any time during coverture, estate known as tenancy by curtesy. Wife is entitled to dower at common law. But In order to be entitled to such curtesy or dower election and claim therefor must be filed in registry of probate within six months of approval of bond of executor or administrator, and such election is a waiver of the interests on real property above mentioned. Probate Court assigns dower or curtesy. Rights of curtesy which exist on February 1, 1919, may be claimed as above provided, but in such https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis case husband shall take no other interest in real or personal property of wife, and except as above preserved curtesy at common law is abolished. Subject to all the above, the rest and residue of intestate property Is distributed as follows: 1. In equal shares to children and issue of any deceased child by right of representation; if there is no surviving child, then to the other lineal descendants if all are in same degree of kindred, otherwise by right of representation. 2. If intestate leaves no issue, then in equal shares to father and mother. 3. If no issue nor mother, then to father. 4. If no issue or father, then to mother. 5. If no issue, father or mother, then to brothers and sisters and to Issue of deceased brothers or sisters by right of representation; If no surviving brother or sister, then to issue of such equally if all In same degree of kindred to intestate, otherwise by right of represen tation. 6. If he leaves no issue, no father, mother, brother or sister or issue of deceased brother or sister, then to next of kin in equal degree, but if there are two or more collateral kindred in equal degree claiming through different ancestors, those claiming through nearest ancestor are preferred. If intestate leaves no kindred, husband or widow, estate escheats to commonwealth. Executions can not issue until twenty-four hours after judgment rendered, and an original execution must be issued within one year after plaintiff is entitled to sue out the same. Original executions in all courts are returnable within sixty days, alias executions five years. Exemptions. Homestead, If recorded, to the value of $800. Necessary wearing apparel of family, certain specified articles of household furniture, and $300 worth in addition thereto, library, $50; tools and implements, $100; stock, $100; boats and fishing tackle, etc., $100: one cow, six sheep, one swine, and two tons of hay, sewing machine, necessary wearing apparel, pew in church, etc. Materials and stock designed and necessary for carrying on his trade and intended to be used or wrought therein, not exceeding $100 in value. Shares in co-operative associations not exceeding $20 in value, funds of railroad relief societies assessment insurance benefits, uniforms, arms, and equipments of militia officers. Factor’s Act. A factor or other agent Intrusted with possession of merchandise or of bill of lading consigning merchandise to him with authority to sell the same shall be deemed the true owner of such merchandise, so far as to give validity to any bona fide contract of sale made by him. Bona fide consignees from shippers in lawful possession have liens for advances or securities to shipper. Bona fide pledges from consignees or factors are also protected. Frauds, Statute of. No action can be brought to charge an executor or administrator on a special promise, to charge any person upon a special promise to answer for debt, default or misdoing of another, upon an agreement made on consideration of marriage, upon a contract for sale of any interest in land, upon an agreement not to be performed within a year, to charge a discharged debtor, unless the promise, contract or agreement or some memorandum thereof is signed by the party or by his authorized agent. No agreement to make a will, or to devise or to give a legacy Is binding unless in writing. No contract of sale of personal property of $500 or over is actionable unless there is part payment, acceptance and receipt of part of the goods, or some memorandum in writing signed by party to be charged or his agent. Gifts between Husband and Wife. G ifts of personal property and conveyances of real estate, other than mortgages, between husband and wife shall be valid to same extent as if they were sole. Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 22 (Washington’s birthday); April 19 (Patriot’s Day); May 30 (Memorial Day); July 4 (Independence Day): first Monday in September (Labor Day); October 12 (Columbus Day): November 11 (Armistice Day); Thanksgiving Day; December 25 (Christmas Day). Infants. Age of majority, male and female, is twenty-one. Infant Is liable for his torts and on contracts for necessaries. He may repudiate or ratify all contracts after reaching majority. During minority, he may sue by next friend, often called prochien ami. Insolvency. Insolvency law suspended by National Bankruptcy Act. Acts of Bankruptcy: (1) Fraudulent conveyance in order to hinder, delay, or defraud his creditors; (2) Where insolvent has trans ferred his property to one or more of his creditors with intent to prefer him or them; (3) Where insolvent has suffered or permitted a creditor to obtain a preference through legal proceedings and not having dis charged such preference at least 5 days before sale or other disposition of the property affected; (4) Made general assingment for benefit of creditors; (5) Being insolvent applied for a receiver or trustee of his property, or because of insolvency, a receiver or trustee put in charge of his property; (6) Admitted in writing his inability to pay his debts and a willingness to be adjudged a bankrupt; (7) While insolvent per mitted attachment, lien, etc., on his property and has not vacated the same within thirty days therefrom. (1927 and 1928 amendments.) Interest. Legal rate Is 6 per cent. Loans of less than one thou sand dollars. Interest shall not be charged exceeding eighteen per cent. Not more than seven per cent can be charged on bonds issued by corporations. It shall be lawful to pay, reserve, contract for any rate of interest or of discount except as above, chapter 73, sec. 3, of General Laws of Massachusetts. Judgments, a judgment or decree of a court of record of the United States or of any state thereof shall be presumed to be paid and satisfied at the expiration of twenty years after it was rendered. Limitation of Suits. Contract express or Implied and not under seal and not otherwise limited, six years; real actions, those upon an attested note, if suit is brought by original payee or his executor or administrator, and personal actions on contracts not limited, twenty years. Absence from the State prevents the running of the statute of limitations as to a defendant UDtil he comes into the State. If the person entitled to bring an action is a minor or is insane or impris oned when the right to bring such action first accrues, such action may be commenced within the time hereinbefore limited after the disability is removed. The statute does not run against those residing out of the State. See also Administration cf Estates. Married Women. The real and personal estate of a married woman, acquired at any time, remains her sole and separate property, not subject to the control of her husband, nor liable for his debts. Married women may carry on trade or business, make contracts, sue and be sued, in all matters relating to their separate property, and such contracts are not binding upon the husband. Wife carrying on business on own account must record certificate with city or town clerk; neglect to do this renders her property so employed liable for husband’s debts, and renders husband liable for her debts thus con tracted. Married Women. A married woman Is also liable jointly with her husband for debts due to the amount of $100 in each particular case for necessaries furnished with the knowledge or consent to her self and her family where she is possessed with property valued at $2,000 or more. Where a married woman performs work and labor for a third person other than her husband and children shall be deemed, in the absence of any agreement in writing to the contrary, to be performed on her sole and separate account. She may pledge her husband's credit for her support, but may also be personally liable for her purchases. Mechanic’s Liens. Subject covered by statute. General Laws Ch. 254. Mortgages of Real Estate. Power of sale mortgage Is univer sally used. Foreclosure is regulated by statute, requiring publication once each week for three successive weeks in same newspaper published In town or city where real estate is situated, first publication to be not less than 21 days from date of Sale by Public Auction, and sale bars redemption. Mortgages may also be foreclosed by entry and peace able possession for three years. BANKING AND COMMERCIAL LAWS—MICHIGAN Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following “Digest of Banking and Commercial Laws.”) Real Estate; Fraudulent Conveyances are a ground for civil arrest generally. An equitable action lies to recover property that has been so conveyed fraudulently. Special attachment may be made of realty which has been fraudulently conveyed by a debtor in fraud of his creditors. (See Uniform Fraudulent Conveyance Act.—Acts & Resolves 1924. Ch. 147. Replevin Actions are the forms of actions at law by which a party can obtain possession of specific goods or chattels unlawfully taken or wrongfully detained from the rightful owner or person who is entitled to its possession. Before the replevin writ can be served, or before the delivery of the property to the plaintiff, a bond for double the value of the property to be replevied must be delivered to the officer before he will proceed to act under the writ. Sales of Personal Property. Uniform Sales Act adopted In 1908, is now Gen. Laws ch. 106. There is a Bills of Lading statute. (Gen. Laws ch. 108), and Gen. Laws ch. 105 relates to warehouse receipts. As to sales of $500 or over, see Frauds, Statute of. Sales of merchandise in bulk are fraudulent unless the provisions of Gen Laws ch. 106, sec. 1, are complied with. Delivery of a bill of sale is not constructive delivery of the goods. Delivery of possession of goods sold is essential as to third persons without notice who purchase same goods for value, or as to attaching creditors without notice. Vendor's retention of possession after sale is prima facie evidence of fraud. As to conditional sales, see that topic supra. Statutes. General revision and consolidation of statutes, effective January 1, 1921 under title of General Laws. Stock Transfer. This subject is covered by Stock Transfer Act as codified in General Laws. Suits. Civil actions in general, except those concerning land (if one of the parties lives in the State), must be brought in the county where one of them lives or has his usual place of business. But in lower courts venue depends on residence or place of business of defen dant. Where all parties are non-resident, action may be brought in any county. Attachment of property owned by defendants residing out of State may be made sufficient to give jurisdiction for a special Judgment in suit after notice published by order of court. Such notice to be given within one year from the entry of the suit. Persons commorant in State may also be arrested on mense process and held to bail. A non-resident plaintiff is usually required to furnish indorser for costs. See also Actions, supra. An act authorizing the service of process by publication on the Lord’s Day, Chapter 105, 1932, of the Acts and Resolves of Massa chusetts. Section 13, Chapter 136, of the General Laws is hereby amended by adding at the end thereof the following; provided, that this section shall not apply to service of such process by publication in a newspaper published on the Lord’s Day, so as to read as follows: Section 13. A civil process shall not be served or executed on the Lord’s Day, and such service if made shall be void, and the person who serves or executes it shall be liable in damages to the person aggrieved in like manner as if he had no such process; provided, that this section shall not apply to service of such process by publication in a newspaper published on the Lord's Day. Approved March 23, 1932. Taxes assessed upon land shall with all incidental charges and fees be a lien thereon from April 1st in the year of assessment.' Such lienshall terminate at the expiration of two years from October 1st in said year, if the estate has in the meantime been alienated and the in strument alienating the same has been recorded, otherwise it shall continue until a recorded alienation thereof; but, if while such lien is in force a tax sale or taking has been made and the deed or instrument of taking has been duly recorded within thirty days, but the sale or taking is invalid by reason of any error or irregularity in the pro ceedings subsequent to the assessment, the lien shall continue for ninety days after a release, notice or disclaimer, has been duly recorded, or for ninety days after the sale or taking has been finally adjudged Invalid by a court of competent jurisdiction. There shall’ be no lien for taxes reassessed if the property is alienated before the reassessment. Said taxes if unpaid for fourteen days after demand therefor, may, with said charges and fees, be levied by sale of the real estate if the lien thereon has not terminated. The matter of enforcing the payment or collection of taxes is one concerning which there is a considerable body of statute law which cannot be briefly summarized. Trustee Process. All personal actions except replevin, and actions of tort for malicious prosecution, slander, libel, or assault and battery may be begun by trustee process and goods, effects, or credits of defendant in hand of a third person may be attached and held to satisfy Anal judgment. See also Actions, supra. Warehouseman and Warehouse Receipts. The Warehouse Receipts Act as codified into Gen. Laws is in force. Wilis. Every person of full age and sound mind including married women may make a will . Will must be signed by testator, or by some person in his behalf, by his express direciion, and be attested and subscribed by three or more competent witnesses in his presence. A will executed in mode prescribed by the law either of place where will Is executed or of place of testator's domicil, shall be deemed legally executed and shall be of same force and effect as if executed In mode prescribed by laws of Massachusetts provided will is in writing and subscribed by testator. As to waiver of provisions of will by husband or wife, see Descent and Distribution, supra, also General Laws ch. 190. section 15. A will may be revoked by statute in the identical manner In which the statute requires a will to be revoked. Will may be revoked by destruction such as burning, tearing, cancelling, or by obliterating it with a manifest intention to revoke the same, and it may be revoked by a formal written instrument, by a later will or by a codicil. Ordinarily marriage operates by statute as a revocation of a will unless the will was made in contemplation of the coming marriage. Witnesses. Any person, although a party, may testify in any proceedings, except that neither husband nor wife may testify to private conversations with each other, or be compelled to testify in a criminal proceeding against the other. The defendant in a criminal proceeding may testify, at his own request and not otherwise, and once he takes the witness stand in a criminal proceeding or matter, he waives all his privileges where the desired testimony tends to incriminate him, and the privilege not to give testimony has been waived. The neglect or deliberate refusal of a defendant to take the stand and testify in his own behalf shall not be a presumption against him. and the prosecution shall not comment to the jury upon the defendant’s failure to take the stand. However, where the wife is necessary to explain certain acts, or omissions in a criminal matter against her husband, if she refuses to take the stand in his defence, the district attorney is not barred from commenting to the jury as to why she failed to testify for and behalf of her husband. The communications of a client to his attorney as a legal adviser are privileged and is a personal privilege belonging to the client. The attorney over the objection of his client cannot take the stand and testify as to private conversations disclosed to him as an authority on the laws of the Commonwealth. However, if the client takes the stand, he may be interrogated as to what he told his lawyer, pro vided such evidence is within logical sequence of the rules of evidence generally. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1803 SYNOPSIS OF THE LAWS OF MICHIGAN RELATING TO BANKING AND COMMERCIAL USAGES Revised by Henry Wunsch, 706-710 Dime Bank Bldg. Attorneys at Law, Detroit, Michigan. (See Card in Attorneys' List.) Acknowledgments of real estate instruments may be before one of the following officers: 1. Within this State: Any judge, clerk or commissioner of any court of record, notary public, justice of the peace or master in chancery. The official should certify that "Oo this day before me personally appeared....................... to me known to be the person or persons who executed the foregoing instrument and acknowledged that he (or they) executed the same as his (or their) free act and deed." Notary’s certificate must show date of expiration commission. Such instruments must have two subscribing witnesses. 2. In any other state, territory, or district of the United States: Same officials as described above or any officer authorized by the laws of such state, territory, or district, or before a com missioner appointed by the Governor or this State for that purpose. Any such instrument mav be executed according to the laws of any such other state or territory. If officer has no seal, certificate of the Clerk of the county or district, or of the Secretary of State within which taken shall be attached. 3. In any foreign country: notary public, or minister plenipotentiary, minister extraordinary, minister resident, charge d'affairs, or commissioner or consul of the United States, appointed to reside therein. Administration of Estates: In probate court of each county Claims are passed on by judge of probate or commissioners appointed for each estate; within such time allowed by the court, not exceeding In first instance one year nor less than four months; may be extended not to exceed two years from date; the court may revive commis sion any time before estate is closed and allow further time three months to examine any claim; an appeal to circuit courts from allow ance or disallowance of any claim. All claims barred, not presented before administration is closed:— Administration of intestate estates is granted: 1st, to surviv ing husband or wife, or kin or grantee, or such one of them as judge may appoint, or as they may request. 2nd, to one or more of the principal creditors. 3rd, to such other person as the judge may think proper. Non-resident administrators and executors appointed in other states, territories, or foreign countries cannot sue as such in this State without procuring administration in this State. Affidavits may be taken by any judge, master in chancery, clerk of court, justice of the peace, police magistrate, notary public, or circuit court commissioner. Any oath authorized, or required to be made, without the State for use in judicial proceedings here, must be authenticated by judge of a court having a seal, and the genuineness of such judge’s signature, existence of the court, and that such judge Is a member thereof, certified oy the clerk of the court under the seal thereof. If in any other state or territory, may be taken before a commissioner appointed by the governor of this State, or any notarv public or justice of the peace authorized by the laws of any such state or territory to administer oaths therein. In actions at law affidavits of amount due on open and stated accounts, attached to and served with process as commencement of suit make a prima facie case, unless denied by the defendant’s affidavit filed and served with plea. Aliens. May inherit or purchase and hold and convey personal and real estate. Arrest. By writ of capias in personal actions in tort and in actions for money collected by any public officer; also by warrant allowed by any justice of the peace or judge of a court of record, under the fraudulent debtor’s act, when the creditor has commenced suit or obtained judgment and the debtor has disposed of or concealed, or is about to dispose of or conceal property liable to execution or the debt was fraudulently contracted. Assignments for the benefit of creditors are void unless made without preferences; must comprise all of assignor’s property not exempt from execution. The circuit court in chancery has super visory jurisdiction of such assignments. Attachments. Writs may be issued from justice and circuit courts on affidavit showing: debt due on express or implied contract, and either that the debtor has absconded or is about to abscond from the State or has assigned or disposed of or is about to assign and dispose of his property with intent to defraud his creditors; or is a non-resident of the state, or a foreign corporation. May issue from the circuit court for debt not due but to become due, upon satis factory showing to the circuit judge, but in such cases judgment can not be taken until debt is due. May issue in actions of tort against non-residents in certain cases. Bank Collection Code. Given directly following Laws. Banks. 1: Incorporation of: Banks. Kinds of Banks Permitted. Commercial, Savings Industrial, Trust Companies; Safety and Collateral Deposit Com panies, Credit Unions, Cooperative Savings Associations, Building and Loan Associations. Finance Companies, Small Loan Business, Tontine, Bond, Certificate and Investment Companies. Supervising Authority is vested iu the Banking Department, the head of which is the Commissioner. Duties: A—Examine each bank bi-annually, and as many times as requested by the bank. B—In case of an impairment of the capital, levy a stock assessment. C—Make an annual report to the Governor of the financial status of active and closed banks. D—Re ceive liquidation, incorporation, consolidation proceedings, etc. E—With the Attorney General apply for appointment of receivers. Officers and Directors. Directors: Not less than five, elected by the stockholders, for one-year term. Appoint officers, prescribe by-laws, and exercice general banking business through officers. They must be stockholders to the extent of $1,000 or more. They meet once a month and examine loans, etc. Appoint examining committee to report to them once every six months on the condition of the bank. Officers: President, vice-presidents, cashier or treasurer, and other officers. Also vice-presidents who are not members of the board. All officers must be bonded. They conduct the general business. Incorporators. Any number of persons, not less than five (5), may associate to establish commercial and savings banks. Capital Stock and Surplus. The amount of capital stock is graded and shall be not less than $20,000 to $500,000 according to the popu lation of the city or village where the bank is located. Requirements. At least 50% of capital stock and a proportionate share of surplus must be paid in at time organization of the bank, and the remainder paid in at least 10% per month. Before dividends may be declared, there must be CTrried to surplus one-fourth of the net profits until the surplus equals the capital. Reserves. Commercial and Savings Banks must carry one of 12% unless they are members of the Federal Reserve system, in which case the reserve requirements are governed by the Federai Reserve act. 1804 BANKING AND COMMERCIAL LAWS—MICHIGAN Examinations and Reports. Banks must make three reports per annum and as many special ones as requested to the Banking Depart ment, showing resources, assets and liabilities. Also must report within ten days after declaration of a dividend, the amount of the dividend, the amount carried to surplus, and the net earnings. The Banking department must examine two or more times per annum the case, bills, collaterals or securities, books of account, condition and affairs of each bank under the law, and also as many times as requested by the bank. Loan Limitation. Loans to any one person not to exceed one-tenth capital and surplus, but with two-thirds vote of directors may be raised to one-fifth. No loans to officers and employees without the consent of the directors. May not receive more than legal rate of interest in advance. Stockholder's Liability. There is no double liability on stockholders whose stock was issued after July 21, 1933. As to all other stock holders, liability is as follows: They are not liable to depositors and creditors who became such subsequent to June 4, 1935. Their liability to other depositors and creditors shall cease when such depos itors or creditors consent thereto, expressly or impliedly, and in any event shall cease on July 1, 1937 unless such depositor or creditor files his written dissent with the bank. Federal Deposit Insurance Corporation. Federal Deposit Insurance Corporation may be appointed receiver of closed banks wherein it has insured deposits. Also may examine such banks, and requires reports, having similar powers to the Commissioner of the Banking Department. Banks are exempt from furnishing security for any deposits to the extent such deposits are insured under the Federal Reserve Act. Blue Sky Law. Michigan in 1923 passed an act, commonly known as the Blue Sky Law, regulating the selling of and dealing in stocks, bonds and other securities with certain exceptions of corporations, associations, partnerships and individuals, so as to prevent fraud In such dealings, and creating a Commission of three to administer the provision of the law. Under this law application must be made to the Michigan Securities Commission and the approval of the Com mission secured before such securities may be sold. Certain penalties are imposed under the law for non-compliance with its provision. The Michigan Supreme Court has declared the act to be Constitutional and valid. Chattel Mortgages. Chattel mortgages and bills of sale intended as security, signed and delivered by mortgagor to mortgagee, sufficient between the parties, but void as to creditor, subsequent purchasers and encumbrances in good faith without notice, unless such mort gages and bills of sale or true copies thereof are filed in the office of the register of deeds for the county where the mortgagor resides, or where the goods are situated if mortgagor is a non-resident of the State, and unless affidavit of mortgagor, or some one for him, having knowledge of the facts, is annexed to the mortgage or bill of sale, showing the consideration is actual and adequate and in good faith. Without such affidavit officers forbade to receive and file such mortgages; cease to be valid against creditors, subsequent purchasers and encumbrances in good faith on expiration of three years from filing date unless renewed within ninety days next preceding expiration by affidavit of mortgagee showing his interest, etc., filed and annexed to mortgage in said register’s office. Collaterals. Stocks, bonds or other personal property pledged as collateral security for payment of money or the performance of any obligation, upon default may be sold at public (or private sale If so authorized by the contract) to satisfy the debt; but before public sale, ten days notice must be given and served on pledger or legal representative personally or by mail; such sale must be between nine o'clock forenoon and sunset, at a public place in the township, city, or village where property is held. Collections. Uniform Bank Collection Code as recommended by American Bankers Association, see page 2333. Conditional Sales. Michigan has adopted the Uniform Sales Act and such contracts are construed in accordance with its terms. If consignee or purchaser is authorized by the contract to resell, then for a retention of title to be effective, the contract must be written and recorded as a chattel mortgage. Conveyances. Any person of full age or otherwise capable may convey by deed any interest in lands, whether in actual possession or not. All grants and devises of lands to two or more persons create estates in common; no joint tenancy, unless expressly so declared, except such as are made in trust or to executors, and except such as are made to husband and wife, who take as “tenants by entirety.” The words “conveys and warrants” in the deed describing the premises and specifying the consideration, dated, duly signed and acknowledged by grantor are sufficient to convey title in fee simple and to warrant, that grantor and his heirs and personal representatives is seized of the premises, has good right to convey same, guarantees quiet pos session thereof, and that he will warrant and defend the title against all lawful claims. The words “conveys and quit claims” duly signed, sealed and acknowledged by grantor are sufficient to convey grantor’s Interest. The words “mortgages and warrants” and duly described premises, specifying “to secure the payment” and reciting the sum for which mortgage is given and the notes and other evidences of debt secured thereby, mortgage being dated, signed, sealed and acknowledged by grantor, is sufficient and warrants perfect title in the grantor and against all previous incumbrances; omitting the word “warrants” sufficient, but without any warranty. Dower and homestead rights not waived unless wife joins in the mortgage. No homestead right will avail against the mortgagee if there is no wife, nor if wife joins in the mortgage. Married women of full age joining with husbands in any deed, mortgage, power of attorney or other writing, shall be bound in respect to their own title. Corporation for Transportation of Passengers and Freight. Pipe line, Transmission of Messages, Canal, Harbor and River Im provement. Electricity and Water, Banks, Insurance, Fraternal Benefit, Trust, Ecclesiastical, Cemetery, Summer Resort and Park Associations are organized under separate general laws. AH other general business corporations must incorporate under the general corporation act. One or more persons may incorporate. Articles of Association to be made out in triplicate and sent to Secretary of State who returns one and sends the other to County Clerk at main office of corporation. May be par or no par stock, preferred or common as articles provide. If par, consideration must be as much as par. If no par, at least onehalf consideration received must be deemed capital and not surplus. Holders of par value stock may be called on to pay up the par value. Consideration may he property or services. Stockholders vote in person or by proxy. At least one vote for each share, although articles may provide for as many votes per share as directorate members. May be voted cumulatively. Must be at least three directors elected annually. Hold office until successor appointed. Make duplicate reports in July or August annu ally for fiscal year last ending of financial and general business condi tion of corporation to Secretary of State. Declare dividends from net earnings or earned surplus. (Only realized appreciation of assets may be included.) If no par, may declare dividends only when average consideration received is unimpaired. Directors liable for wilful or negligent declaration in violation of these provisions. Stockholders are liable for labor debts with right contribution. Make by-laws. Dissenting stock may have fair cash value of shares on sale of substantially all the corporate property or in case of a merger, either of which may be done by two-thirds vote of stock. General corporate powers—sue, be sued, etc. May acquire, hold and convey realty. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It is unlawful for Foreign Corporations to carry on business in this state until certificate of authority procured from Secretary of State, until which time cannot make valid contracts, unlawful for any person to act as agent of. Sales of goods or merchandise by right inter-state commerce not affected by state laws. Courts. Terms of Jurisdiction. Circuit courts, holding two or more terms annually in each county, have original jurisdiction in all cases of law and equity wherein the amount in controversy is $100 and upwards; and have appellate jurisdiction from justice of the peace probate courts, and other inferior tribunals. Justice courts in each county have jurisdiction of cases at law involving from $100 to $300, and to $500 in some cities by charter. In Detroit this court is now known as the Common Pleas Court. In Grand Rapids is a “Superior Court” for civil cases, limited to parties resident of the city. Probate courts in each county have jurisdiction of estates of deceased persons and testamentary trusts. Supreme court has final appellate jurisdiction from circuit, municipal and recorders’ courts. Days of Grace. Abolished. Depositions. Testimony of any witness without the State of more than fifty miles from the court may be taken de bene esse, before any judge of any state or of the United States, or of any foreign country, or before any circuit court commissioner in this or any other state, or of the United States, or any commissioner of this State, any consul or consular officer, justice of the peace officer, or notary public authorized to administer oaths in the state or county where taken and not interested as attorney or counsel or in the event of the cause; reasonable notice given in writing by party, or his attorney, proposing to take such deposition to opposite party or his attorney of record, stating names of witnesses, time and place of taking and official before whom to be taken. Commissions to take depositions of any witnesses may be issued by circuit court wherein the suit is pending or by the judge or register thereof, or by a justice of the peace in a suit before him on written interrogatives. Fees for taking, certifying, sealing and forwarding $5, for each 100 words in deposition 15c and copies 3c. Each party pays for his own examination or cross examination in the first instance. Descent. Real estate and personal property of intestate after payment of debts and administration expenses and allowances, as follows: Real Property. One-third to widow, remaining two-thirds to his issue; if no widow the whole to his issue to share equally if of same degree of kindred to intestate, otherwise by reDresentation; if no Issue, husband or widow to the father and mother in equai shares, if only one living to the survivor alone. If surviving husband or widow and no issue, one-half to such survivor, remainder to father and mother or their survivor. If no issue or parents, husbands or widow, equally to brothers and sisters and the children of deceased brothers and sisters; if none such relatives, to next of his kin in equal degree through nearest ancestor: if anv unmarried child dies under age, his or her inheritance from any parent, to other surviving children of same parent and their issue by representation. If husband or wife survive and no issue, parents, brothers or sisters, or their children to husband or wife, and if no foregoing relatives whomsoever estate escheats to State. Illegitimates heir to mother; dying intestate estate descends to mother or her relatives if she be dead; become legitimate by parents, intermarriage or father’s written acknowlment. The foregoing provisions for the widow are in lieu of dower and homestead right unless one year after administration granted she applies for assignment of dower and homestead in which case her interest in deceased husband’s lands is limited to the dower and homestead right and the residue shall descend as above provided for that portion not taken by her. Personal Estate. Residue — one-third to widow, two-thirds to children or issue by representation; one child; one half to child and one-half to widow; no widow or child, to all lineal descendants equally If widow and no children or issue, to widow, not exceeding $3,000; estate excess of that, one-half excess to widow, other half to surviving parents, and if none such to brothers or sisters; and none such, all such excess to widow. Married women intestate, one-third to hus band, two-thirds to her children or their issue by representation, only one child or issue of deceased child; to husband and such child equally; if no child or issue of deceased child, one-half to husband and other half to surviving parents, and if none, to brothers or sisters or issue of them and if none, all to husband. In any other case same as for real property. Estates by curtesy abolished. Dower. Wife entitled to use of one-third part of all lands owned by her husband as estate of inheritance any time during marriage. No dower as against mortgages for purchase price, or mortgages made before marriage, except in surplus. Must exercise option to take dower in lieu of rights under will or statute within one year after administration; residing in this State and eighteen years of age and upwards may bar by joining in husband’s conveyances and mort gages or by deed alone to one who has husband's title. Intent to bar being expressed; or by jointure secured as bar. Execution. May issue to any county at once, unless stayed after Judgment in circuit court, in justice courts, expiration of five days; not liens on real estate or personal property until levy by proper officer. Real estate is sold without appraisement to the highest bidder, except homestead, to determine excess of value above $1,500 redemption claim. Defendant or his heirs or assigns may redeem within twelve months, his judgment creditors and others having valid liens within fifteen months from date of sale. Execution against the body may be issued on all judgments in actions of tort. Personal property levied on, after setting off exemptions, may be sold on six days’ notice at public sale, to highest bidder to a sufficient amount to satisfy the debt and costs; no redemption after such sales. Execu tions from justice courts do not run against real estate. Exemptions. Homestead—selected by the owner and occupied by him; not exceeding forty acres of land and dwelling thereon; or one lot with dwelling thereon within any recorded town plat or city or village not exceeding in value $1,500. Same cannot be alienated or Incumbered without consent of wife or sold on any execution or any other final process from any court, unless appraised to exceed the value of $1,500 and that amount is paid or realized on sale under such process. Exemption of homestead continues during its occupa tion by the widow or minor children of deceased person who when living occupied the same. lease by lessor. For any officer or stockholder of any bank or any other person for such bank; to sign, Issue or knowingly put in circula tion any note or bill of any such bank, before the capital stock is paid in, or before the president and directors thereof have complied with the law; for any officer or agent of any bank knowing such bank to be insolvent or in contemplation of insolvency, or for any assignee of the property of such bank to sell or dispose of any money or property of such bank with intent to defraud, delay or hinder creditors thereof, or for any agent or person to fraudulently obtain or dispose of any money belonging to any insurance company organized in this State. Fraud, Civil. Sales, transfers, and assignments of stocks of goods, wares, merchandise, and fixtures in bulk, pertaining to conduct of any business, otherwise than in ordinary course of trade of seller, etc., a old as against creditors, unless the seller, etc., five days before sale, make inventory of the goods and cost price to seller of each article and unless the purchaser demands from seller list of names and addresses of creditors and his indebtedness, and within five days before taking possession and payment notifies every creditor of such sale. Garnishment. Process may issue in any action brought in any justice court or circuit court on contract expressed or implied, or any judgment or decree, to hold whatever property any person may own or have belonging to the debtor. Bills of exchange and promissory BANKING AND COMMERCIAL LAWS—MINNESOTA notes due in the garnishee's hands at the time of serving summons are garnishable. Property, real, or personal, things in action, equitable Interests, held by fraudulent transfer from the debtor and any prop erty liable to execution or to the payment of the debts of the debtor in the garnishee’s hands may be recovered; wages of any householder may be garnished with a sixty per cent exemption, which shall not amount to more than fifteen dollars a week or less than S5.00; if not a householder and no family, thirty per cent exemption; wages cannot be garnished until after judgment has been given against debtor; and benefits payable by fraternal beneficiary societies, shares in building and loan association of any debtor, except as to one having a homestead exemption, are exempt from garnishment. Holidays. The legal holidays are: Sundays: January 1 (New Year’s Day): February 12 (Lincoln's birthday); February 22 (Wash ington’s birthday); May 30 (Memorial Day); July 4 (Independence Day); first Monday in September (Labor Day); Thanksgiving Day; December 25 (Christmas Day); every Saturday from 12 o'clock noon to 12 o'clock midnight; and all National, State, County or City election days. When Christmas or any similar holiday falls on Sunday, the following Monday is the legal holiday. Husband and Wife. If sued together she may defend and If either neglect to defend the other may be ordered to defend for both. If he deserts her she may be authorized by the probate court to prose cute or defend in his name. If either wrongfully retains the other's property, acquired before or after marriage, the owner may sue for same as if unmarried. Neither liable for the debts of the other before marriage, nor earnings or property of either nor the income thereof, nor shall either be liable to make compensation for labor or services rendered for the other. Husband is liable after marriage for family expenses, and for debts incurred by the wife with his express or Implied authority. Either may constitute the other an attorney in fact to dispose of property. Expenses of family and children’s edu cation are not chargeable upon the property of the wife but are chargeable against the husband and he may be sued therefor. Interest. Legal rate 5 per cent but by written agreement may be charged not to exceed 7 per cent. Forfeiture of all interest is penalty for usury. When any installment of interest upon any note, bond, mortgage or other written contract shall become due and remains unpaid, interest is allowed on such installment from the time it became due at same rate specified in the obligation or at the legal rate. Legal rate collectable on all moneys due on any written obligations and on all moneys due on all liquidated contracts express or implied, whether verbal or written; and on settlement of accounts from day of ascer taining balance due; and on judgments from day of entry; and on ver dicts of jury from date to date of entry of judgments thereon. In computing time of interest and discount on negotiable paper, a month means a calendar month and a year a calendar year of twelve months. Judgments of courts of record are not Hens on real estate or personal property until by levy thereon of execution issued from the courts upon such judgments. Liens under execution levied upon real estate exist five years from and after the levy. Judgments expire by limitation in ten years from date of entering in courts of record and six years in justice courts, and cannot be renewed except by action at law thereon before expiration. Judgments of the justice of the peace may be entered in the circuit courts on transcript duly taken to the circuit court and thereupon become judgments of such circuit courts. Liens. Any person, who pursuant to a contract with any owner, part owner or leasee of any land, furnishes labor or materials in the construction of a building, etc., on such land, shall have a lien on such structure and land to the extent of one quarter section or if in a city or village, the lot or lots upon which such structure is situated. And any sub-contractor, who furnishes materials or labor in carrying foreward or completing such contract shall have a lien upon such building and land to the extent of the interest of such owner, etc. Any person, artisan, or tradesman for labor and skill applied upon any property delivered for that purpose shall have a prior lien for amount due for such labor. Hotels, boarding houses and lodging houses have a lien upon baggage and other valuables of guests, boarders or lodger for accommodations. Any person keeping and caring for domestic ani mals intrusted to them for that purpose have a lien for proper charges. Limitation of Suits: Keal Actious. (1) 5 years against defen dants claiming through executors, administrators or sheriffs’ deed, or against devisee where the will has been probated for fifteen years or more. (2) 10 years where defendant claims through a tax deed from officer of State or United States. (3) 15 years in all other cases. (Includes Foreclosures.) Personalty. (1) One year for slander. (2) Two years for actions against sheriffs for neglect of duties, trespass to land, false imprisonment, malicious prosecution, malpractice, actions for penalties forfeited under penal statute, and on surety bonds. (3) Three years for injuries to property. (4) Four years for suits on executor’s bond. (5) Suits on covenants in mortgages ten years. Fraudulent conceal ment suspends. New promises must be written to satisfy. Voluntary payment is sufficient. Have at least five years from time disability is removed in real actions. Married Women. May make contracts In respect to their owd property and may hold and enjoy, and have the same rights and remedies regarding their property as if unmarried. They may carry on business in their own names with their own property by consent of their husbands; cannot enter into partnership with husband but may with third party and bind their own property. Married women’s contracts to pay or to become liable for debts of husbands or other person voidable, may however charge their real estate or personal property to secure such indebtedness by deed, mortgage or contract. Married women are entitled to have and to hold their earnings made by their own personal effort, and may make any contracts relative thereto. Mortgages on real estate, executed and acknowledged the same as deeds; may be foreclosed under power of sale by advertisement or in circuit court in chancery of the county wherein the property is situated. Trust deeds not in customary use but may be made and executed and will be treated as mortgages. (See also Chattel Mort gages.) Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following the “Digest of Banking and Commercial Laws.”) Power of Attorney. Almost every act that any person, firm or corporation may perform, may be performed by an attorney in fact. Conveyances, mortgages, or leases for more than three years’ term by attorney In fact, the power of attorney must be in writing signed, sealed and acknowledged same as a deed of lands, to be admitted for record or to proof thereof. Probate Law. (See Administration of Estates.) Protest. (See Negotiable Instruments.) Replevin. Goods or chattels wrongfully taken or detained may be replevined by owner or part owner or party entitled to possession. Affidavit of plaintiff or agent necessary for issue of writ. If from circuit courts plaintiff required to give bond with sufficient sureties to the officer within twenty-four hours after seizure and appraisal of the property which must not be delivered to plaintiff within fortyeight hours; and in the meantime if the defendant shall give sufficient bond to the officer he shall return the property to the same person from whom he took it; in that case if plaintiff recovers he may recover on the defendant’s bond; if he fails defendant may recover on plain tiff’s bond according as the judgment may warrant. In justice courts bond with sufficient sureties must be given and filed in double value of the property before writ issues. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1805 Taxes. State and county payable every year after December 1st, delivered to county treasurer March 1st, thereafter, and if delinquent bear Interest 1 per cent per month. Returned to auditor general of State, if not paid, and by him enforced by foreclosure in chancery in every county, and the taxable property sold under decree of the court by county treasurer each parcel for the amount of taxes and charges against same; redeemable one year thereafter and does not become absolute until proceedings taken by purchaser or writ or assistance, which must be instituted within five years by service of written notice upon owners six months before application for such writ. If decree regular and property taxable, and due notice is given and served, purchaser is entitled, upon due proof thereof to writ of assistance and possession unless redeemed pending the notice by payment of double the amount paid by purchaser and $5.00 for each parcel redeemed. City taxes are governed by charter or by the general act under which cities and villages are organized. Wills. Codicils. Every person of full age (twenty-one years) and of sound mind mav make; must be in writing, signed bv testator or by some person in his or her presence duly authorized by him or her and attested and subscribed in his or her presence by two or more witnesses competent as such at the time. If one of the subscribing witnesses shall testify to the execution of the will in all particulars and testa tor was of sound mind at the time will was made, the court may admit the will, in case no person appears to contest it; if none of the witnesses reside in the State at the time of proving the will, the court may admit the testimony of other witnesses to prove testator’s sanity and execution and proof of the signature of testator and sub scribing witnesses. Probate necessary before title passes and conclu sion of due execution .Foreign wills, duly admitted to probate without the State, may be admitted and recorded in any county of the State in which testator left real or personal estate by duly filing, an exemplified copy of said will and of the record admitting same to probate. A nuncupative will in which the value of the estate bequeathed does not exceed $300, duly proved by two witnesses, may be allowed. Revoke by burning, tearing, cancelling or obliterating the same with intention revoking it by Testator; or by some other will or codicil duly executed, or by some other writing signed, attested and subscribed in manner provided for execution of wills, or by operation of law. SYNOPSIS OF THE LAWS OF MINNESOTA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Oppenheimer. Dickson. Hodgson. Brown & Donnelpt Attorneys at Law, First National Bank Bldg., St. Paul. (See Card in Attorneys’ List.) Acknowledgments may be certified by the following officers: 1. Within the State by a resident judge, clerk or deputy clerk of any court of record therein. Secretary of State, a notary public justice of the peace, town, city or village clerk, or recorder, court commissioner, register of deeds, or county auditor, or their deputies, county commissloner.or member of the legislature. 2. Out of the State but in the United States by a judge of the supreme, circuit, or district courts of the United States, or of any court of record of any state, territory, or dis trict. the clerk or a deputy clerk of any such court, a notary, a justice of the peace, or any commissioner appointed by the governor of this State for that purpose 3. In foreign countries by a notary public, or by any minister, charge d'affaires, commissioner, consul, commercial agent or other consular or diplomatic officer of the United States appointed to reside in such country, and deputies or other represen tatives of such officers. The form of the certificate may be, “On this.................... day of.......................... , 19.......... before me personally appeared.........................to me known to be the person described in, and who executed the foregoing instrument and acknowledged that he executed the same as his free act and deed." In case of corpora tion it may be, “ On this.....................day of..................... 19..........before me appeared A. B. to me personally known, who being by me duly sworn did say that he is the president (or other officer) of (name of corpora tion) , that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was executed In behalf of said corporation by authority of its board of directors, and said A. B. acknowledged said instrument to be the free act and deed of said corporation.” If made outside the State the impression of the official seal of the certifying officer must be affixed, or there must be attached the certificate of the clerk of a court of record of the county or district in which it is made under his seal that the signature of the certifying officer is genuine. Actions. The distinction between actions at law and suits in equity is abolished. There is only one form of action. It Is called a civil action and must be prosecuted in the name of the real party In Interest except that executors, administrators, trustee of an express trust and persons expressly authorized by statute may sue without joining the person for whose benefit the suit is brought. Administration of Estates. Estates of deceased persons are administered in probate courts of which there is one in each county presided over by the probate judge of the county. In granting letters of administration preference is given: I. To the surviving spouse or next of kin or such suitable person as they or either of them select. 2. If no application is made for thirty days after death of intestate, to principal creditor or creditors, “or to the nominee or nominees of such creditor or creditors”, and if deceased was native of foreign country to the consul or other representative of that country residing in this State, or to such competent and suitable person as he may select. “In the order for hearing a petition for the probate of a will or for general administration, or in a subsequent order, the Court limits the time for creditors to file claims. The time so limited is four months from the date of the filing of such order, but may be extended for good cause to a date not more than twelve months after the filing of the order to file claims. Notice of the order is given by publication thereof once each week for three weeks in a newspaper in the county. Claims not presented within the time limited are barred. Foreign executors and administrators may sue in this state.” Allens. (See right to hold property.) Arbitration. All controversies which can be the subject of a civil action may be submitted to one or more arbitrators for decision, except a claim to an estate in fee or for life in real estate. Arrest. There is no arrest for debt. Assignments. Statutes relating to assignments for the benefit of creditors are in force except as affected by the U. S. Bankruptcy Act of 1898. Practically they may be said to be superseded by that act. Attachment. Before allowing a writ of attachment, the court must require of the plaintiff a bond in the sum of at least $250, and an affidavit of the plaintiff, his agent or attorney. (1) That the debt was fraudulently contracted or (2) the defendant is a foreign corpora tion or non-resident or (3) has departed from the State as he believes with intent to defraud or delay his creditors, or to avoid the service of a summons or keeps himself concealed therein with like intent or (4) has assigned, secreted, or disposed of his property with intent to delay or defraud his creditors or is about to do so. 1806 BANKING AND COMMERCIAL LAWS—MINNESOTA Banks. The Commissioner of Banks is the supervising authority over all banks in the State of Minnesota. The financial corporations permitted under the laws of the State of Minnesota are banks, savings banks, trust companies, building and loan associations, clearing house associations and credit unions. Trust companies may have savings departments. Banks may carry on the business of a trust company. Three or more persons may incorporate as a bank. They must first secure from the state securities commission a certificate of authoriza tion which is granted or denied after a hearing and introduction of evidence. The board of directors can appoint and remove any officer or employe. The directors must each own $1,000.00 of fully paid stock if the bank is located in a town of over 25,000 people. If the town is under 25,000 people each director must own $500.00 worth of stock. Nine directors may be designated as a quorum for the transaction of business. The vice presidents must be members of the board of directors unless it is otherwise provided in the articles of incorporation. The capita] required is at least $20,000 and a surplus of at least $4,000 in a municipality not over 1,000 population and at least $25,000 and a surplus of at least $5,000 in one over 1,000, and not over 5,000, and at least $40,000 and a surplus of at least $8,000 in one over 5,000 and not over 100,000, and at least $50,000 and a surplus of at least $10,000 in one over 100,000, provided however that the securities commission in their discretion may permit the organization of a bank with $10,000 capital and a surplus of $2,000 in a municipality with a population of less than 500 wherein there is no bank. Capital and surplus must be paid in full in cash and certi fied to the commissioner of banks under authority of the president and cashier before it shall be authorized to commence ousiness. No state bank or trust company shall pay interest on deposits at a greater rate than 4% per annum provided that interest at that rate per annum may be granted or paid on savings accounts, quarterly or semi annually, and interest at that rate per annum may be paid on certifi cates of deposit not oftener than every six months and providing that any person or officer who knowingly or wilfully seeks deposits with an agreement on the part of the bank or trust company to pay a larger rate of interest than as so provided shall be guilty of a misdemeanor. Every bank must have a reserve equal to 15% of the demandable liabilities and 5% of the time deposits if located in a reserve city. If not located in a reserve city 12% of the demandable liabilities and 5% of time deposits which may be made up of cash and balance due from solvent banks. Every bank must report to the commissioner of banks four times yearly and at other times when requested. Each report must be attested and published. No person, corporation or copartnership shall have liabilities to a bank of more than 15% of its capital and surplus. No officer or director of such bank shall have liabilities of more than 10% of the capital and surplus. First mortgage loans not exceeding 25% of the capital and surplus may be made in the State of Minnesota or in an adjoining state within 20 miles of the location of the bank. Such mortgages shall not exceed 40% of the value of the property. The discount of certain types of papers including government obligations is not considered as creating a liability under this section. Stockholders are individually liable for debts of the bank in an additional amount equal to the par value of the stock owned by them and this liability continues one year after the transfer of the stock. Branch banking is not permitted in the State of Minnesota. Bills of Lading. The Uniform Bills of Lading Act became effec tive June I, 1917. Initial Carrier receiving property for transportation between points within the State, liable for loss, damage or injury caused by It or other carrier en route, and all contrary provisions in Bill of Lading void. Blue Sky Law. The commission is headed by the Commissioner of Securities and includes a special deputy attorney general. The law prohibits the selling by anyone of securities within the state until such securities have been registered with the commission and until the commission has granted permission to sell the same. Securities are defined to include any stock, share, bond, note, debenture, com mercial paper, evidence of indebtedness, investment contract, interest in or under a profit sharing or participating agreement or scheme, any interest in or under any oil, gas or mining property or in any property represented to contain or be a prospect for oil, gas or minerals, beneficial interest in a trust or pretended trust or any interest in the capital, assets, property or profits of any person. The commission is given rather extensive powers to regulate the selling price of securities and cost of promotion, to fix the conditions under which a permit shall be granted to require the furnishing of relevant information, and to suspend or annul existing permits. The more important securities exempt under the Act are: (1) Any security issued or guaranteed by the United States or by any state or territory or insular possession thereof, or by the District of Colum bia, or by any political subdivision or agency of a state, territory, or insular possession, or by the Dominion of Canada, or any province or any political subdivision thereof, having the power of taxation or assessment; (2) Any security issued by and representing an interest in, or issued by and representing a direct obligation of, a state bank organized and operating under the laws of Minnesota; and any security issued by a national bank or by a corporation or governmental agency created or existing by an act of the Congress of the United States other than corporations created or existing under the code of laws for the District of Columbia or under the code of laws for any territory or possession of the United States, provided that such corporation is subject to supervision or regulation by the Government of the United States; (3) certain securities issued or guaranteed by railroads or public service utifities; (4) Securities listed on the New York Stock Exchange, New York Curb Exchange and Chicago Stock Exchange, which securities have been so listed pursuant to official authorization by such exchange, and all securities senior to any securities so listed, subscription rights so listed, or evidences of indebtedness guaranteed by companies any stock of which is so listed, such securities to be exempt only so long as such listing shall remain in effect; (5) Any interest bearing securities listed on the New York Stock Exchange or New York Curb Exchange, which securities have been so listed pursuant to official authorization by either of said exchanges and all interest bearing securities senior to any interest bearing securities so listed, providing said securities are issued by any person owning a property, business, or industry which has been in continuous oper ation not less than five years, and which has shown during a period of not less than 33 years next prior to the close of its last fiscal year pre ceding the offering of such securities, average annual net earnings, after deducting all prior charges, not including the charges upon securities to be retired out of the proceeds of sale, and assets (not including patents, copyrights, secret processes, formulas, goodwill, trade marks, trade brands, franchises, and other like intangible prop erty), as of the date of the close of its last fiscal year preceding the offering of such securities together with the proceeds of the sale of such securities accruing to the issuer, of not less than one and one-half times the annual interest charge thereon and upon all other out standing interest bearing obligations of equal rank, and assets at least equal to one hundred twenty-five percentum of the face value of such interest bearing securities, and all other obligations of equal or prior rank outstanding and not to be retired out of the proceeds of the sale of such securities; (6) Commercial paper or negotiable promissory notes, maturing not more than within six months from the date of issue; (7) Securities of certain corporations organized for religious, educational and charitable purposes and not for pecuniary gain; (8) Policy contracts of insurance companies licensed to do business in the State; (9) Any security issued by a building and loan association organized under the laws of this state; (10) Securities of co-operative associations organized under the laws of the State for agricultural, dairy or livestock purposes. Certain sales are exempt, such as isolated sales; sales of notes or bonds secured by a mortgage lien when the entire lien, together with all notes or bonds secured thereby, is sold to a single purchaser https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis at a single sale; sales made under the order of court; stock dividends or issuance of increase of stock to existing stockholders where no commission is paid; sales to banks, savings institutions, trust com panies, insurance companies or licensed brokers or dealers. Chattel Mortgages. Every mortgage of personal property which is not accompanied by immediate delivery and followed by actual and continued change of possession is void as to creditors and subsequent purchasers and mortgagees in good faith, unless it is made in good faith, attested by two witnesses, acknowledged and filed with the register of deeds of the county in which the mortgagor resided at the time of its execution, is a resident of the State, or of that in which the property was then situated if a non-resident. If the mortgagor resides in St. Paul. Minneapolis or Duluth or is a non-resident, and the property is situated there, the mortgage must be filed with the city clerk of such city instead of the register of deeds of the county. Duplicates or copies certified by any officer with whom the mortgage has been properly filed, may he filed in other places wherein any part of the property was situated when thp same was made As against creditors or the mortgagor and subsequent purchasers and mortgagees In good faith the lien does not continue beyond the term of six years from the date of filing the mortgage unless the indebtedness is not then due and payable by its terms, in which case it continues two years after the maturity of the debt and no longer. Every mortgagee of a chattel mortgage shall at the time of its delivery make and deliver to the mortgagor a full, true and complete copy of such mortgage. No register of deeds nor city clerk is allowed to receive or file any chattel mortgage which does not contain a receipt of the signer of the mortgage to the effect that a copy of such mortgage has been received by him. Chattel mortgages given by a married man or woman on property exempt from execution must be executed by both husband and wife If living. Conveyances. Deeds and mortgages of real estate must be exe cuted in the presence of two subscribing witnesses and to entitle them to record must be acknowledged by the person executing the same. Conveyances made out of the State, may be executed as above, or according to the laws of the place of execution. Corporations. Three or more natural persons of full age may form a corporation for any lawful business purposes. Articles of Incorporation shall be signed by each ol' the incorporators and acknowl edged by at least three of them, and shall state: (I) The purposes of the corporation. (2) Its duration, limited or perpetual. (3) Total author ized number of par value shares and the par value of each; authorized number of no par value shares, if any. (5) Description of classes of shares, if classified. (6) Amount of stated capital with which corpora tion is to start business; not less than $1,000. (7) Names, addresses and terms of office of first directors. (8) Names and addresses of each of incorporators. (9) Such provisions, if any, limiting or deny ing stockholders the preemptive right to subscribe for shares of any class or series. Articles are filed with the Secretary of State, who attends to record ing the same with the Register of Deeds. Corporate existence begins upon issuance of a certificate of incorporation by the Secretary of State. Within fourteen days after issuance of the certificate the corporation must publish once in a qualified newspaper a notice stat ing its name, the date of its incorporation, the general nature of its business, the address of its registered office, names and addresses of incorporators and its first directors. Proof of such publication must be filed with the Secretary of State. A penalty of $50 is provided for failure to comply with the provisions relating to filing and publication. The Legislature shall have power from time to time to provide for. limit and otherwise regulate the liability of stockholders or members of corporations and co-operative corporations or associations, however organized. Provided every stockholder in a banking or trust corpora tion or association shall be individually liable in an amount equal to the amount of stock owned by him for all debts of such corporation con tracted prior to any transfer of such stock and such individual liability shall continue for one year after any transfer of such stock and the entry thereof on the books of the corporation or association. The liability of stockholders of corporation as formerly provided in the con stitution has been abolished by constitutional amendment and at the present time the liability applies only to the stockholders in banks and trust companies. No foreign corporation can transact business or bring suit here unless it holds a certificate of authority which is procured by making application to the Secretary of State setting forth (1) the name of the corporation and state or country under which organized; (2) its date of incorporation and duration; (3) its address in state or country under which organized; (4) the address of its proposed registered office and the name of its proposed registered agent in this state; (5) that it irrevocably consents to the service of process against it; (6) the names and addresses of its directors and officers; (7) authorized number of par value shares and no par value shares itemized by classes and series; (8) aggregate number of its issued or allotted par value and no par value shares itemized by classes and series; (9) that the officers executing application have been duly authorized so to do by the board of directors of the corporation. Such application is delivered to the Secretary of State, together with authenticated copies of its articles of incorporation and payment to the State Treasurer of an initial license fee of $50.00. The Secretary of State issues and records the certificate of authority, and thereafter the corporation shall con tinuously maintain in this state (a) a registered office; (b) a registered agent. Provision is made for the withdrawal of a foreign corporation, for the revocation of its authority to transact business, for the filing of annual reports, and for the payment of additional license fees based on the annual reports. Licenses of foreign corporations existing as of April 20, 1935, continue in force and effect until March 1, 1936. and then terminate without further act. Licensed foreign corpora tions existing as of April 20, 1935, may at any time prior to March 1, 1936, deliver to the Secretary of State such instruments required as if originally applying for a certificate of authority, omitting instru ments already on file. (See Minnesota Foreign Corporation Act. Chapter 200, Laws of 1935.) Courts. District courts hold one or more terms a year In each organized county, have original jurisdiction in all civil actions at law and in equity, and in all criminal cases where the punishment exceeds three months’ imprisonment or a fine of more than $100. The supreme court has appellate jurisdiction in all cases, but there Is no trial by jury in that court. It has original jurisdiction in such remedial cases as are prescribed by law. Probate courts have exclusive jurisdiction of matters connected with the settlement of estates of deceased persons, minors, and insane persons. Terms are held on the first Monday of each month in each organized county. Municipal courts exist in certain cities, and are courts of record wit h limited jurisdiction in civil and criminal actions. Justices of the peace have no jurisdiction in civil actions where the amount involved exceeds $100. Days of Grace are abolished. Depositions may be taken at any place within or without the State upon notice in writing, stating the reason for taking the same the time and place, and giving the opposite party one day for prepa ration. and one day for every 100 miles, exclusive of Sundays and the day of service, before any officer authorized to administer oaths. Descent and Distribution of Property. “Homestead descends to surviving spouse for life, remainder to children and issue of deceased children. If no children or issue of deceased child, then to surviving spouse in fee. Where the homestead is disposed of by will and where it descends to the spouse or children or issue of deceased children, it is exempt from all debts which were not valid charges thereon at the time of decedent's death. After payment of debts and certain allow ances to the surviving spouse out of the personal property, the estate BANKING AND COMMERCIAL LAWS—MINNESOTA real and personal, descends as follows: (1) One-third to the surviving spouse, provided that if a spouse and only one child or the issue of a deceased child survive, the share of the spouse is one-half; balance in equal shares to the surviving children and to issue of deceased children by right of representation. (2) If no surviving child and no issue of deceased child, the whole estate descends to surviving spouse, if any. (3) If no issue or spouse, to father and mother in equal shares, or if but one survive then to such survivor. (4) If no issue, spouse, father or mother, in equal shares to the surviving brothers and sisters and to the lawful issue of any deceased brother or sister by right of repre sentation. (5) If no issue, spouse, father, mother, brother or sister, to next of kin in equal degree, but those who claim through the nearest ancestor shall take to the exclusion of those claiming through an ancestor more remote. (6) If a minor dies leaving no spouse, hot issue surviving, all of his estate that came to him by inheritance or will from his parent descends in equal shares to the other children of the same parent and to the issue of any deceased child of such parent, by right of representation; failing all such, it descends by intestate succession as in other cases. (7) If no spouse or kindred, to the State.” Dower is abolished. Employers Liability Act. Effective since April 24. 1913. Executions issue from district courts any time within ten years after judgment and may run to any county where judgment is docketed, are returnable in sixty days and may be renewed for sixty days at a time on request of judgment creditor or his attorney. Personal prop erty is sold on ten days posted notice; real estate on six weeks pub lished notice, and subject to redemption by judgment debtor, his as signees and creditors of a deceased mortgagor who have proved their claims in probate court may redeem within one year from the date of the foreclosure sale. (For extension of period of redemption from real estate mortgage foreclosure sales see 'Mortgages’ herein). Exemptions. Homestead outside of incorporated municipality may include eighty acres. If in incorporated place containing less than 5,000 inhabitants, its area shall not exceed one-half acre, and in larger incorporated places, one-third of an acre without regard to value. Family pictures, library, musical instruments for use of family, wear ing apparel, beds, stoves, cooking utensils used by family, other house hold furniture not exceeding $500 in value, three cows, ten swine, one yoke of oxen, and a norse, or in lieu thereof, a span of horses or mules, one hundred chickens, fifty turkeys, twenty sheep, the wool there from raw or manufactured, food for such stock for one year’s supply, either provided or growing or both, one wagon, cart or dray one sleigh two plows, one drag and other farming utensils, including tackle for teams, not exceeding $300 in value, pro visions for debtor's family for one year’s support, tools kept for purpose of carrying on trade, and stock manufactured in whole or in part by debtor not exceeding in value $400; library of pro fessional man; presses, type, and tools of publisher of news paper, not exceeding $2,000, and his stock in trade not exceeding $400; watch, sewing machine, typewriter, bicycle, seed for use of debtor for one season not exceeding certain amounts and binding material sufficient for use in harvesting the crop raised from such seed; library and apparatus of college or school; money payable to wife or child from insurance on life of deceased husband or father nor exceeding $10,000; money or relief from benefit association; money from insur ance on exempt property; wages not exceeding $35 for services rendered during preceding 30 days; plus $5 additional for each actual dependent of such wage earner; but all wages paid and earned within said thirty day period shall be considered a part of (or all) of said exemption (Chap. 202, Laws 1915.) Holidays. The legal holidays are: Sundays; January 1 (New Year’s Day); February 12 (Lincoln’s birthday); February 22 (Washington’s birthday); Good Friday; May 30 (Memorial Day); July 4 (Inde pendence Day); first Monday in September (Labor Day); first Tuesday after first Monday in November of every even numbered year; Novem ber 11 (Armistice Day); and December 25 (Christmas Day). Thanks giving day in so far that negotiable instruments or contracts due that day are payable next succeeding business day. It is provided that when Sunday and one or more legal holidays or two or more legal holidays fall on the same day, and when Sunday and one or more legal holidays, or two or more legal holidays, immediately succeed each other, then negotiable instruments etc. shall be deemed as due or maturing on the day following the last of such days. Interest. Six per cent is legal rate, but by special contract any rate not exceeding 8 per cent may be exacted. Usurious contracts are void. Judgments may be entered by default in district courts at expira tion of twenty days after service of summons. When docketed in those courts they become liens upon all real estate of the debtor in the county where docketed then owned by him or afterwards acquired, and the lien continues for ten years after the entry of the judgment. Tran scripts of judgments in justice and municipal courts may be filed In district court and there docketed, and then become lien on real estate. Uniform declaratory judgments act adopted April 17, 1933. Liens. To preserve a mechanics lien a verified statement must be filed by the lien claimant within ninety days after furnishing the last item of labor or material in the office of the register of deeds of the county in which the improved premises are situated, or if claimed upon a line of railway or its appurtenances with the secretary of state. The lien may be released by a court order on deposit with the clerk of the District Court of a sufficient sum of money to protect the lien claimant, and anyone interested in the property may bring an action in the nature of an action to determine adverse claims to remove the lien. Action to foreclose the lien must be commenced within one year of the time of the filing of the verified statement. Limitation of Actions. On contracts express or implied six years; judgments ten years; to foreclose mortgages fifteen years; to recover real estate, fifteen years. But no action shall be maintained on a judgment note, or other instrument authorizing Confession of Judgment unless begun within one year after Cause of Action accrued; and no action shall be maintained upon any judgment of any court of the U. 8. or of any State or Territory entered by Confession under a warrant of attorney, unless the action upon such judgment be begun within one year after the rendition or entry thereof. Married Women. Property acquired by wife before or after mar riage remains her separate estate. It is liable for her debts and torts to the same extent as if she were unmarried, and she may make any contract which she could make if unmarried, except that no convey ance or contract for sale of her homestead or any interest therein is valid unless her husband joins in the same. Both husband and wife are liable for necessaries furnished to and used by the family. Mortgages on real estate executed in the presence of two subscrib ing witnesses, acknowledged and recorded in the office of the register of deeds of the county in which the mortgaged premises are situated may be foreclosed by publication or by action. At the mortgagor’s option the right to foreclose by publication may be withheld, or rather, changed into a foreclosure by action up to March 1, 1937. The right to foreclose by action remains the same. The right of redemption may be extended by the District Court to March 1, 1937. Prior to March 1, 1937, no action shall be maintained for a deficiency judgment until the period of redemption as above stated has expired. The mortgagor, his assigns, and creditors of a deceased mortgagor who have proved their claims in probate court may redeem from foreclosure. The authority of an attorney conducting a foreclosure by adver tisement, must be in the form of a Power of Attorney, executed and acknowledged by the mortgagee or assignee in the same manner as a conveyance and recorded prior to the sale in the County where the foreclosure proceedings are had. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1807 The mortgagor may covenant to pay or authorize the mortgagee to retain any attorney's fee in case of foreclosure of not exceeding $25 where the mortgage debt does not exceed $500; $50 where the mortgage debt exceeds $500 and does not exceed $1,000; $75 where the mortgage debt exceeds $1,000 and does not exceed $5,000; $100 where the mortgage debt exceeds $5,000 but does not. exceed $10,000 and $200 where the mortgage debt exceeds $10,000. Mortgagor or subsequent lien holder may before foreclosure sale pay debt and costs In full in which case attorney's fee shall not exceed fifty dollars. A Registry Tax of 15 cents is imposed upon each $100 or fraction thereof of the principal debt secured by any mortgage covering prop erty within the State of Minnesota and recorded in said State, in case the maturity of any portion of the debt so secureo shall be fixed at a date more than five years and sixty days after the date of said mortgage, the amount of such Registry Tax shall be at the rate of 25 cents on each $100. No such mortgage or assignment or satisfaction thereof or papers relating to its foreclosure, shall be recorded or regis tered unless such tax has been paid, nor shall any such document or record thereof be received in evidence in any court or have any validity as notice or otherwise. No mortgage nor papers relating to its fore closure, nor any assignment or satisfaction thereof shall be recorded or registered after the passage of the act, unless said tax shall have been paid; nor shall any such document or any record thereof be received in evidence in any court or have any validity as notice or otherwise; but if the tax be paid, no error in computation or ascertainment of the amount thereof shall affect the validity of such mortgage or the record or foreclosure thereof. If such mortgage describe real estate outside of Minnesota, such tax shall be imposed upon such proportion of the whole debt secured as the value of the real estate described in this State bears to the value of the whole real estate, such value to be determined by the State Auditor upon application of the mortgagee. Negotiable Instruments. The Uniform Negotiable Instruments Act was adopted in Minnesota July 1, 1935. (See comiilete text following “Digest of Banking and Commercial Laws.”) The act is in effect in Minnesota as compiled by the Uniform Laws Commission except for four changes as follows: 1. Instruments payable to the estate of a deceased person shall be deemed payable to the order of the administrator or executor of his estate, Laws of 1929, Chapter 353. 2. The incorporation of the terms of a mortgage, deed of trust, indenture or lien in any bond, note, debenture or promise to pay does not render it non-negotiable where it is otherwise drawn to fall under the N. I. L. Laws of 1927, Chapter 416. 3. Instruments presented after 12 o'clock noon on Saturday, when not a full holiday, may at the option of the payor be then paid. Laws 1917 Chapter 204. 4. Instruments payable at a bank shall not be an order on the bank to pay the same for the account of the principal debtor. General Statutes of 1913, Sec. 5899. Right to Hold Property. No person unless he be a citizen of the United States, or has declared his intention to become a citizen, and no corporation unless created under the laws of the United States, or of some state thereof, shall acquire lands exceeding 90,000 square feet, except by devise, inheritance, or through security for indebtedness. This does not apply to actual settlers on farms not exceeding 160 acres, or to subjects of a foreign country, whose rights to hold lands are secured by treaty. No corporation, more than 20 per cent of whose stock Is owned by persons not citizens of the United States, or by corporations not created under its laws, or those of some state thereof, can acquire lands, and no corporation unless organized for the construction or operation of a railway canal or turnpike can acquire more than 5,000 acres or more than is necessary for its operation, and lands granted It by the State or United States. But this does not apply to lands acquired in the collection of debts nor to a person or corporation engaged in selling lands to actual settlers, or engaged in manufacturing in Minnesota while so engaged Such persons or corporations not so engaged must sell what they had April 13, 1911, within ten years from that date and sell what they acquire subsequent to that date within ten years after they acquire it Sales of Goods. The Uniform Sales Act became effective April 20 1917. Securities Commission. See Blue Sky Law. Taxes. Personal property is assessed once a year; real estate every two years. Taxes on both classes of property are levied every year. Taxes on real estate constitute a prior lien. Land on which taxes not paid sold on second Monday in May each year. A tax certificate matures into a tax title to the property at the expiration of five years from the date of sale. At any time before the expira tion of such a period of five years from the sale any person interested in the land may redeem the same. (Laws of Minnesota, for 1929, Ch. 415.) Person redeeming must pay original tax penalties and interest at the rate bid at the sale and in addition thereto costs. Onehalf of real estate taxes must be paid June 1 and if not, penalty of 3 per cent and 1 per cent per month until November 1 attaches. Second half must be paid November 1, and if not then paid, a penally of 10 per cent attaches. Infants and persons of unsound mind may redeem within one year after such disability shall cease, but the right to redeem must be established in a suit in court. Moneys and credits are subject to an annual tax of three mills on each dollar of the fair cash value thereof Moneys and credits belonging to incorporated banks located within the state are exempt. Real estate mortgage Indebtedness is exempt from the moneys and credits tax; but is taxed under the mortage registry tax law at the rate of 15 cents per hun dred. except where the indebtedness or a portion thereof ruus for a longer period than five years and sixty days, in which event the rate on such indebtedness or portion is 25 cents per hundred. By the terms of Chapter 405, Laws of 1933, commonly known as the “Income Tax Act,” an income tax is levied upon individuals, executors, and administrators, trustees, guardians, corporations, receivers, trustees in bankruptcy, or assignees. Partnerships are not taxed as such, but the distributive share of a partner is taxed as an individual income. Exempted from the provisions of the Act are national and state banks; iron mining companies; insurance companies fraternal benefit associations; cooperative telephone associations; building and loan companies; labor, agricultural and horticultural organizations; farmers and farmers' cooperative companies; educa tional and charitable, scientific or literary corporations, no part of the income of which inures to any individual member or stockholder; clubs and business leagues; any corporation whose stock is owned by the United States; the State of Minnesota and its political and governmental subdivisions. The rate of tax is 1 per cent upon the first $1,000, and is graduated up to 5 per cent upon all amounts over $10,000. An excise tax is imposed upon all intoxicating liquors sold in this state as follows: (1) On all light wines up to 14 per cent of alcohol by weight, the sum of 10c per gallon. (2) On all wines from 14 per cent to 21 per cent of alcohol by weight, the sum of 20c per gallon. (3) On all wines from 21 per cent to 24 per cent of alcohol by weight, the sum of 40c per gallon. (4) On all wines containing more than 24 per cent of alcohol by weight the sum of 60c per gallon. (5) On all natural sparkling wines containing alcohol, the sum of 60c per gallon. (6) On all artificial sparkling wines containing alcohol, the sum of 30c per gallon. (7) On all other liquors, liqueurs and cordials, the sum of 60c per gallon. In computing the tax on any package of spirits, a proportionate tax at a like rate on all fractional parts of a gallon shall be paid, except that all fractional parts of a gallon less one-sixteenth shall be taxed at the same rate as for one-sixteenth of a gallon. 1808 BANKING AND COMMERCIAL LAWS—MISSISSIPPI An excise tax is imposed upon the sale of fermented malt beverages, at the rate of $1.00 per barrel of 31 gallons containing not more than 3.2 per cent of alcohol by weight, and a tax of $2.00 per barrel of 31 gallons containing more than 3.2 per cent of alcohol, and at a propor tionate rate for fractional parts thereof. (Ch. 58, Laws 1933-34 Extra Session). Wills. Every person of sound mind, not a minor, may dispose of property by will in writing signed by the testator, or by some person in his presence and by his direction, attested and subscribed in his presence by two or more competent witnesses. Every person includes married women. If, after making a will the testator marries, the will is thereby revoked. SYNOPSIS OF THE LAWS OF MISSISSIPPI RELATING TO BANKING AND COMMERCIAL USAGES Revised by Dabney & Dabney, Attorneys at Law Merchants National Bank Building, Vicksburg, Miss. (See Card in Attorneys’ List) Accounts. Sworn to and filed at commencement of suit entitles plaintiff to judgment, unless defendant files affidavit denj ing, or proves on trial that he never entered into any contractual relation. The affidavit must be by the creditor or his agent on actual knowledge, affidavit on information and belief not sufficient. All accounts must be itemized. Acknowledgments before any judge, clerk of a court of record under his seal, justice of the peace, notary public, or member of the board of supervisors, before any police justice, or mayor of any city, town, or village. Acknowledgments in another state may be before any of the judges of the supreme court, or any district judge of the United States, or a judge of the supreme or superior court in any state or territory, any justice of the peace, whose official character shall be certified to under the seal of some court of record in his county, or by any commissioner residing in such state or territory, appointed by the governor of Mississippi, or a notary public or a clerk of a court of record having a seal of office. Acknowledgments or proof of deeds to property in this State by persons in a foreign country may be made before any court of record, or the mayor or chief magistrate of any city, borough, or corporation where the grantor or witnesses reside, or may be, or before any commissioner appointed by the gov ernor of this State, or before any ambassador, foreign minister, sec retary of legation, or consul of the United States. The certificate shall show that this party or party ana witness were identiflea before the officer, and that the party acknowledged the execution of the Instrument, or that the execution was duly proved by the witness or witnesses. Acknowledgment must state that party “acknowledged that he signed and delivered ” instrument. Actions. All distinction as to forms abolished. Service five days before return day. All action triable in the circuit court and in county court where amount in controversy exceeds $200.00 at first term in which the defendant has been personally served with process thirty days before the return day. Mandamus, quo warranto, mechanics’ liens, attachments, and replevin triable at return term. Administration of Estates. Had in chancery court, according to will, if any. Claims against deceased must be filed, registered and allowed within six months after the first publication of notice to creditors. No other notice to non-resident creditors provided for. Creditor must present to the clerk of the court the written evidence of the claim, if any, or if the claim be a judgment or decree, a duly certified copy thereof, or, if there be no written evidence thereof, an itemized account, or a statement of the claim in writing, signed by the creditor, and make affidavit, to be attached to claim to the follow ing effect: That the claim is just, correct and owing from the deceased; that it is not usurious, and that neither the affiant nor any other person has received payment in whole or in part thereof, except such as is credited thereon, if any, and that security has not been received therefor except as stated, if any. When claim is approved the clerk will indorse thereon the following: “Probated, and allowed for $-----------and registered this------------ day of---------------- A.D.,--------- ,” and sign his name officially thereto. Probate, registration and allowance sufficient presentation of claim to the executor or administrator. But if claim is based on a demand of which there is no written evidence or upon an itemized account the statement of said claim or the itemized account will be retained and kept by the clerk. And if claim is based on a promissory note or other instrument executed by decedent, creditor must file the original with clerk, or having so presented the original he may withdraw same when the clerk has made a certified copy of same. Affidavits or Oaths before a judge of any court of record, clerk of such court, master in chancery, member of the board of supervisors, justice of the peace, notary public, mayor, or police justice of a city, town or village; in another state by any officer thereof, or of the United States, authorized to administer oaths. Allens. No restrictions on the rights of resident aliens to acquire property or dispose of it. Non-resident aliens can not hold land, but may take liens thereon to secure debts and purchase at foreclosure thereof, and thereafter hold it for not longer than twenty years, with power to sell to a citizen in fee; or he may retain it by becoming a citizen. See title “Corporations." Appeals from justice court to circuit or county court within ten days. Prom county to circuit ten days. Prom circuit and chancery courts to supreme court within six months, but notice to stenographer must be given within ten days after adjournment of Court, in order to incorporate evidence in record. Appeals also in certain cases from board of supervisors and municipal courts. Assignments and Insolvency. No insolvent law. An assign ment may be made for the benefit of creditors. Debtor, though Insolvent, may prefer creditors, if in good faith and no benefit, direct or Indirect, is reserved. No provision for the discharge of a debtor on his making an assignment. In general assignments, where the value exceeds $1,000, the assignee must give bond and administer the trust in chancery. Preferences not prohibited. Attachment. Against a debtor who is a non-resident or who removes or is about to remove himself or property out of the State: who so absconds or conceals himself that he cannot be served with a summons: or who incurred the debt in conducting the business of a ship, steamboat or otner water craft in some or the navigable waters of this State; or who assigns or disposes of his property, or some part thereof, or is about to assign or dispose of his property with intent to defraud his creditors; or who has property or rights in action which he conceals and unjustly refuses to apply to the payment of his debts; or who has converted or is about to convert his property into money; or evidence of debt, with the Intent to place it beyond the reach of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis creditors; or who has fraudulently contracted the debt or incurred the obligation for which suit has been or is about to be brought, may be attached. In addition to those named above, the following grounds exist: “9. That the defendant is buying, selling, or dealing in, or has within six months next before the suing out of the attachment, directly or indirectly, bought, sold, or dealt in future contracts, com monly called ‘futures.’ 10. That he is in default for public money, due from him as a principal, to the State, or some county, city, town, or village thereof. 11. That defendant is a banker, banking company, or corporation, and received deposits of money, knowing at the time that he or it was insolvent, or has made or published a false or fraudu lent statement as to his or its financial condition.” Attachments for debts not due allowed for last six grounds—or when the creditor has Just cause to believe that the debtor will remove himself or his effects out of State before debt will be due, with Intent to defraud. Non resident creditors have the same rights of attachment as resident creditors, whether the debtor be resident or non-resident. Plaintiff must furnish bond double the debt and make affidavit as to one or more grounds. Suit does not abate on verdict for defendant, on a plea deny ing grounds; but judgment on the debt, to be offset by damages in favor of defendant for wrongfully suing out attachment. Any credi tors may intervene and contest ground of attachment. Attachment In Chancery on bill against the property, or debts of an absent, non-resident, or absconding debtor. A lien is acquired by the suit. If a writ for the seizure of goods is obtained, bond is required. Available to non-residents. Bad Check Law. The maker of any check, draft or other order, on any bank or depository, given for a present valuable consideration, if given with intent to defraud, when he did not have sufficient funds on deposit to cover same, or if he withdrew such funds after giving same, is subject to fine or imprisonment, if he fails to make same good. Proof that he had insufficient funds on deposit with such bank or depository at the time of giving such check, draft or other order, or that he withdrew his funds after giving same, shall be prima facie evidence of intent to defraud. (Ch. 299, Laws 1932.) Banks. Kinds of Banks Permitted. Corporations alone allowed to conduct banking business. Banking corporations may be created for the purpose of conducting and carrying on a bank and trust comp any business, and to establish offices of loan and deposit to be known as savings banks, or to establish banks having departments for carry ing on all of the above classes of business. Local and regional banks for making and floating loans on farms in Mississippi may be estab lished under legislation enacted by congress, and bonds representing loans on farms and bearing interest not in excess of six per cent exempt from all state and other taxation. Supervising Authority. The department of bank supervision is solely charged with the execution of all laws relating to corpora tions carrying on a banking business in the State of Mississippi. The management, control and direction of the department of bank supervision is vested in the State Comptroller, who is directly respon sible for the rightful functioning thereof. Incorporators and Incorporation. Five or more persons of full age and of good moral and sound business character may organize themselves into a banking corporation. Period of existence not to exceed fifty years. Officers and Directors. Bank must have at least five directors. Any officer, director, cashier, agent, clerk or stockholder subject to punishment by fine not exceeding $1000.00 or by imprisonment in the penitentiary not more than three years for wilfully and knowingly subscribing to or making any false report or statement, or entry in the books of the bank, or knowingly subscribing or exhibiting any false writing or paper with the intent to deceive any person as to the condition of such bank. Every active officer and employee of any bank or trust company must furnish a fidelity bond. Every director must be the owner in his own right of unencumbered stock in the bank to the amount of at least two hundred dollars par value Must take oath. Interlocking directorates in banks serving the same town or city are prohibited. Officers or employees receiving any deposit knowing or having reason to believe such bank insolvent are guilty of a felony. Capital Stock and Surplus. The amount of the capital stock must be divided into shares of not less than $5.00 and not more than $100.00 each. Before transacting any business the entire capital stock must be paid in full in cash except as otherwise provided. May issue preferred stock, and if issued to Reconstruction Finance Corporation will be exempt from taxation. Minimum capital required in cities, towns and villages or commu nities having a population of not more than six thousand is $25,000.00; in cities having a population of more than six thousand and not more than ten thousand, $35,000.00; and in cities having a population of more than ten thousand, $50,000.00. But this not to apply to banks already in operation. See Branch Banks. Shares of stock of banks deemed personal property. Banks shall not accept as collateral, or be the purchaser of its own stock, except in cases where the taking of such collateral or such purchase, shall be necessary to prevent loss upon a debt previously contracted in good faith, and this must be sold within twelve months. No part of the stock of any bank except regional reserve banks and “Edge law” banks doing business in this state shall be owned by a state bank. But if acquired through necessity must be sold within twelve months. Reserves and Requirements. Must set aside each year to a surplus account at least twenty-five per cent of its net earnings, after pro viding for the payment of dividends on its preferred stock, until the surplus so set aside shall equal one hundred per cent of its total capital, including common and preferred stock. These earnings required to be set aside exempt from all state, county, municipal, levee district and other ad valorem taxes, up to an amount not ex ceeding one hundred per cent of its capital. National banks comply ing with these requirements likewise exempt from taxation to same extent Banks doing business in cities or towns having a population of less than fifty thousand inhabitants shall have on hand at all times in actual cash, or balances due from good and solvent banks, not less than fifteen per cent of its demand deposits and seven per cent of its time and savings deposits; and banks in cities exceeding fifty thousand inhabitants must have not less than twenty-five per cent of their demand deposits and ten per cent of their time and savings deposits. Loan Limitations. Loans exceeding an aggregate principal of $2500.00 shall not be made by any state bank to any director, officer or employee thereof, either directly or indirectly, except upon affirma tive approval of a majority of all directors spread on the minutes of a directors’ meeting held before such loan is made; and, all direc tors present and failing to vote against any such loan shall be per sonally liable to the bank for the full amount of such loan. The liability to a bank by a person, company, corporation or firm for money loaned including in the liability of such person, company, corporation or firm, the liabilities of several members thereof, shall not exceed fifteen per cent of the aggregate paid in capital and surplus of said bank, but loans and discounts secured by warehouse receipts or bills of lading, representing actually existing values, shall not be restricted to, or considered as coming within such limitation of fifteen per cent. Loans made in violation subjects officers and directors making same to liability. Stockholders' Liability. Stockholders individually liable, actually and ratably, and not for one another, for the benefit of depositors in bank at the amount of their stock at the par value thereof, and in addition to said stock; but persons holding stock, as executors, administrators, guardians or trustess, not personally liable as stock- BANKING AND COMMERCIAL LAWS—MISSISSIPPI holders, but assets and funds in their hands constituting the trust liable; persons holding stock as collateral security not personally liable as stockholders, but the pledgor deemed the stockholder and liable. Double liability does not apply to stock in any bank which may be organized after April 2nd, 1934, nor to stock in any bank open for business April 2nd, 1934, provided such bank is a member of the Federal Deposit Insurance Corporation. Rule on Branch Banking. Branch banks may be established after parent bank first obtains from the state comptroller, the attorney general and the governor, or a majority thereof, a certificate that the public convenience and necessity will be promoted by the establish ment of same. They may be established within a radius of one hundred miles of the parent bank, but no one bank may have more than fifteen branches and no branch bank may be established in a town or city of less than 3500 population where such town or city has one or more banks in operation. All parent banks permitted to establish branches must have paid-in unimpaired capital (exclusive of reserves and undivided profits) of not less than $100,000.00, and such minimum required capital must be increased for each branch bank established by an amount not less than the minimum required capital for a unit bank in the muni cipality in which the Pranch shall be established. National banks are given the same rights relative to branches as state banks. Chain banking systems and group banking systems are prohibited. In General. Authorized to purchase stock in the Federal Deposit Insurance Corporation or any other similar agency created by the laws of the United States, and such stock so purchased exempt from taxation of any kind. With the consent and approval of the state comptroller, corpora tions may be formed in this state for the purpose of purchasing, hold ing, owning, dealing in, lending on and borrowing on assets of banks, either open or in liquidation. State bank may not receive and hold deposits continuously for more than six months in excess of twelve and one-half times its paid up capital and surplus, but with consent of state comptroller may hold deposits not in excess of fifteen times its paid up capital and surplus. Banks may pay checks of minors drawn on deposits made by them. May pay to the nearest relative of a deceased depositor, without necessity of administration, any sum to the credit of decedent not exceeding three hundred dollars. And this shall apply to all banking institutions, including national banks and postal savings banks within the state. Banks may not issue bills payable or be liable on rediscounts at any time to a total amount in excess of three times their capital and surplus, except with approval of comptroller. May hold and convey real estate for the following purposes: 1. Banking house not to exceed in cost thirty per cent of its capital, surplus and undivided profits; but in cities of more than 5,000 people may invest not more than fifty per cent with consent of comp troller; 2. Such real estate as shall be purchased by or conveyed to such bank in satisfaction of or on account of debts previously contracted in the course of its business; 3. Such as it shall purchase at sale under judgments, decrees or mortgages or deeds of trust. And any real estate acquired as in subdivision two and three must be sold within five years. In order to conform with federal regulatory enactments governing the requirements imposed upon state banking corporations, and in order to become affiliates of the Federal Deposit Insurance Corpora tion, on or before July 1, 3 934, the following regulations shall apply to Mississippi state banking corporations: The acts of all state banking corporations by which their capital debentures have been sold to the Reconstruction Finance Corporation are ratified, and the Reconstruction Finance Corporation has assumed no liability through the purchase of said debentures, and the de bentures are exempt from taxation. All banks prohibited, either through their officers or as a banking agency, from participating, directly or indirectly, in the operation of any underwriting syndicate, which handles securities for re-sale. But this does not apply to bonds issued by federal, state, county or other governmental agencies. Executive officers of banks prohibited from owning stock in private banking houses or other agencies engaged in underwriting securities for re-sale. Employees of banks required to make and file with board of directors a sworn financial statement at least semi-annually. No loan in excess of .$500.00 shall be made except on approval of a loan committee of the board of directors, which committee shall require of all prospective borrowers a financial statement. Banks may purchase for the account of their customers bonds, stocks and other securities and may charge for their service in connection with the handling such transactions only actual expenses plus the usual broker's fees allowed for similar service by national banks. Banks may not receive deposits when insolvent. Transfers and assignments made after the commission of an act of insolvency and with a view to prevent the application of its assets in the manner prescribed, or with a view to a preference of one creditor to another, are utterly null and void. Sixty per cent of unsecured depositors of an insolvent bank may by proper proceeding take over the liquidation of same. If deposits of any insolvent bank are to any extent insured by Federal Deposit Insurance Corporation, and said Corporation will accept the receivership of said bank, it is mandatory upon the court to appoint said Federal Deposit Insurance Corporation receiver of such bank. Disclosure of the name of any depositor, or the amount of his de posit, except when required to be done in legal proceedings or in case of insolvency, a misdemeanor. State bank guaranty law repealed April 2, 1934. State banks may become members of federal reserve Dank. Blue Sky Law. Under this statute, certain statements, reports, etc., must be made to the Secretary of State, and a permit received, before the sales of stock in certain corporations. Since it is not the class of corporation, or the object for which it is incorporated, that determines whether it is subject to this act, but the promotion fees, commissions, etc., that are to be paid out of the capital subscribed, It is best that every corporation have its counsel examine this law and determine for itself whether it should comply. Chattel Mortgages and Deeds of Trust may be executed and recorded as other mortgages. Foreclosure is usually by trustee’s sale. If property be removed to another county, mortgage must be there recorded within twelve months to affect purchasers without notice. Mortgages on property to be acquired for a stated period not exceeding twelve months are valid, but not on a changing stock of goods if the mortgagor remain in possession and continue business. Reservation of title by the seller of a chattel to secure purchase money is valid without record, save against purchasers without notice, where seller leaves chattel more than three years with buyer, except as to chattels used or acquired in the business of a “trader.” Banks, professional men and manufacturers are not traders. Collaterals. General law prevails. Contracts for sale of land, or for lease for more than one year, to be in writing. Same in regard to sale of chattels of the value of more than $50, unless delivery in whole or in part is made, or pay ment in whole or part is made. Gambling contracts and ordinary con tracts made on Sunday void. Contracts by foreign corporations who have not complied with registration of charter law are void. Conveyances. May vest title presently or in future. All estates in land greater than for one year must be by deed, and to affect pur https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1809 chasers without notice must be recorded. Estates tail prohibited, except that a deed or devise may be made to a succession of living donees not exceeding two and to the heirs of the body of the remainder man, or, in default thereof, to the right heirs of the donor in fee. Cor porations convey under seal. In all other cases private seals abolished. Conveyances or devises to two or more, or to husband and wife, create tenancy in common. Rule in Shelly’s case abolished. Remainder good without particular estate. The words “grant, bargain, and sell” operate as a covenant that grantor is seized of some estate of inheritance. Words “convey and warrant” operate as a general covenant of warranty. The words “convey and warrant specially” operate as a warranty only against the grantor or those claiming under him. A quitclaim deed has practically the same effect. Hus band and wife, if living together must join in conveyance or incum brance of homestead of either, or it will be void as to all under $3,000. Corporations. Corporations except for the construction and operation of a railroad other than street railroads, and the carrying on of an insurance business, other than mutual insurance, may be created under a general charter. Application for charter signed by each (not less than two) of the Incorporators and acknowledged. It must then be published one time in one or more newspapers at the domicile of the proposed cor poration. The application must be forwarded to the secretary of state together with the fee for recording, and he must refer the same to the attorney general for his opinion as to the constitutionality and legality of the proposed corporation, after which it is referred to the governor for his approval or disapproval. The governor then returns It to the secretary of state with his action endorsed thereon. If he approve it, the secretary of state shall record it in his office and certify to the same and transmits it to the applicants. Charter must be published one time, within thirty days after it is granted, in county where domiciled. It must be recorded In the office of the clerk of the cnancery court of the county in which the corporation shall do business. Within thirty days after the organization, the corporation must make report of the organization to the secretary of state. If such report be not made the charter granted shall be void, and all persons doing business thereon shall be deemed partners in the business and liable as such I Corporations thus created possess the powers usual and incident to private corporations generally, but existence is restricted to fifty years. That all corporations, heretofore or hereafter organized, whether they be domestic or foreign, are hereby authorized and clothed with full power and right to own, in free simple or otherwise, lands for any legitimate purpose in this state; and no restriction against such corporations holding lands for agricultural purposes shall exist or obtain in this state, except that no one corporation shall hold and cultivate for arricultural purposes more than 10,000 acres of land in any one year. Stockholders individually liable for the debts the corporation con tracted during his ownership of stock for the balance that may remain unpaid for stock subscribed for and may be sued by any creditor. Directors are liable for the wilful mismanagement or for allowing capital withdrawn while debts exist. Corporations under the laws of other states or of foreign countries may sue in this State, and have the same rights in the State as non-resident individuals. The legis lature may repeal or amend charters granted after November 1, 1890, provided rights of stockholders are not infringed. All foreign cor porations doing business in this state shall file a certified and duly authenticated copy of its charter or certificate with the secretary of ■tate and file power of attorney with the secretary of state designat ing him or some agent as person to accept service of process for it. Charter must be certified by the president and secretary or other chief executive under the corporate seal. All corporations, domestic and foreign are now subject to an annual franchise tax, which shall be calculated at the rate of $1.00 per $1,000 or part thereof, of its capital, as at December 31st of the year preceding that for which the return is filed, if a calendar year, or as at the last day of the fiscal year. Costs. Non-resident or insolvent plaintiff required to give security though an insolvent citizen may sue in forma pauperis. Courts. Terms and Jurisdiction. Justices’ courts meet twice each month; circuit and chancery courts in each county two or more times each year, supreme court twice a year in September and March. Justices’ courts have jurisdiction up to $200. Circuit courts have general jurisdiction of all common law actions where the amount or value exceeds $200, and jurisdiction of appeals from justices’ and mayors’ courts, and boards of supervisors. County Court created, effective January 1st, 1927; concurrent jurisdiction with Justice and Circuit Court in misdemeanor cases and in civil cases in matters where amount involved does not exceed $1000.00 and concurrent with Chan cery Court up to same amount, except matters in equity restricted by constitution. Court meets monthly, rule of practice same as in court, where jurisdiction would have been except for county court. Certain counties only have said court. Chancery courts have jurisdiction of the administration of estates of deceased persons, of minors' business and other probate matters, and of all matters in equity. Appeals may be taken to the supreme court from any final judgment of the circuit court, and from the chancery court, except in suits for not more than $50 originating in the justice’s court. Appeals from county court taken to circuit court. Suits of equitable cognizance improperly brought in the circuit court are transferred to chancery court, and vice versa. No suit dismissed because being of an equitable nature it is improperly brought in the circuit court and e converso. Creditor’s Bills may be filed under general Laws to subject equi table assets and in aid of execution at law. Such suits may, under the statute, be filed to subject property of a debtor fraudulently conveyed without a judgment and return of nulla bona; and this whether com plainant’s debt is due or not. No bond is required unless a sequestra tion is desired. Curtesy and Dower. Deeds. Both abolished since 1880. (See Conveyances.) Depositions in civil cases, on written or verbal interrogatories; ten days’ notice to opposite party. If such party is absent and has no attorney, filing interrogatories ten days sufficient. The officer shall swear the witness to testify the truth, and shall impartially examine him on the interrogatories. The testimony shall be fairly written down by the officer or witness, or by a disinterested person in the presence of, and shall be subscribed by the witness. Depositions then certified, and transmitted by mail or other safe and convenient manner to the court where the same are to be used. Officer’s cer tificate prima facie evidence of his character. Descent and Distribution. Estates of inheritance, real and personal descend. 1. To children and their descendants per stirpes. 2. To orothers and sisters and father and mother in equal parts and their descendants by representation. 3. To the next of kin according to the civil law. Except among brothers and sisters there is no representation among collaterals. Advancements must be brought into hotchpot. No distinction between children of the whole blood and those of the half blood, except that children of the whole blood are preferred to those of the half blood in equal degree. Where there is no one to inherit property escheats. Illegitimates inherit from the mother and from her other children and her kindred. Children of illegitimates and their descendants inherit from brothers and sisters of their father or mother and from grand parents. But children of illegitimates do not inherit from any ancestor or collateral kindred if there be legitimate heirs of such ancestor or collateral kindred, in the 1810 BANKING AND COMMERCIAL LAWS—MISSISSIPPI lame degree. The mother of an illegitimate and her other children, legitimate or otherwise, inherit from the illegitimate. Exempt prop erty of husband or wife descends to survivor and children as tenant* in common. Dower and Curtesy have been abolished since 1880. Evidence. In the main common law rules apply. Parties and interested persons competent; except against decedent. Affidavit to open account entitles to judgment, unless defendant denies under oath. Warehouse receipts and bills of lading conclusive evidence In favor of a bona fide holder that the property was received by the Issuer. (See also Accounts and Affidavits.) Executions in circuit court issue within twenty days after the adjournment of court unless otherwise ordered by the plaintiff, and In justices courts after the lapse of ten days from judgment rendered, unless recovering party makes affidavit that he is in danger, by delay, of losing his debt or demand, in which case execution issues forthwith. No redemption of property sold under execution or mortgage. Exemptions. The following personal property Is exempt from seizure under execution or attachment, to-wit: The tools of a mechanic necessary for carrying on his trade. The agricultural implements of a farmer necessary for two male laborers. The implements of a laborer necessary in his usual employment. The books of a student required for the completion of Ills educa tion. The wearing apparel of every person. The libraries of all persons, including pictures, drawings, and paint ings, not exceeding five hundred dollars in value; also the instrument* of surgeons and dentists, used in their profession, not exceeding two hundred and fifty dollars in value. The arms and accoutrements of each person of the militia of the State. All globes and maps used by the teachers of schools, academies, and colleges. The following property of each head of a family, to be selected by the debtor, is exempt. Two work-horses or mules, and one yoke of oxen. Two head of cows and calves. Ten head of tiogs. Twenty head of sheep and goats each. All poultry. All colts under three years old raised In this State by the debtor. Two hundred and fifty bushels of corn. Ten bushels of wheat or rice. Five hundred pounds of pork, bacon, or other meat. One hundred bushels of cotton seed. One wagon, and one buggy or cart, and one set of harness for each. Five hundred bundles of fodder and one thousand pounds of hay. Forty gallons of sorghum or molasses or cane syrup. One thousand stalks of sugar cane. One molasses mill and equipments, not exceeding one hundred and fifty dollars in value. Two bridles and one saddle, and one side saddle. One sewing machine. Household and kitchen furniture not exceeding in value two hun dred dollars. All family portraits. One mower and rake for cutting and gathering hay or grain. And the following property shall be exempt from garnishment or other legal process, to-wit: The wages of every laborer or person working for wages, being the head of a family, to the amount of fifty dollars per month, but this paragraph shall not apply to a debt for board and lodging or a judg ment founded on a debt for board and lodging. The proceeds or insurance on property, real and personal, exempt from execution or attachment, and the proceeds of the sale of such property income from disability insurance. Payable to Executor. Life insurance policy not exceeding five thousand dollars, payable to the executor, or administrator, shall Inure to the heirs or legatees, freed from all liability for the debts of the decedent, except premiums paid on the policy by anyone other than the insured and debts due for expenses of last illness and for burial; but if the life of the deceased be insured for the benefit of his heirs or legatees at the time of his death otherwise; and they shall collect the same, the sum collected shall be deducted from the five thousand dollars, and the excess of the latter only shall be exempt. Life insurance policy to amount not exceeding $10,000.00 goes to parties named as beneficiaries free from liability for debts of insuredHomestead in Country. Every citizen being a householder, and having a family, shall be entitled to hold exempt the land and build ings owned and occupied as a residence, but the quantity shall not exceed one hundred and sixty acres, nor the value thereof, inclusive of improvements, save as hereinafter provided, the sum of three thousand dollars. Homestead in Cities. Every citizen being a householder, and hav ing a family residing in any city, town, or village, shall be entitled to hold, the land and buildings owned and occupied as a residence by such person, not to exceed in value, save as hereinafter provided, three thousand dollars, and personal property, to be selected by him. not to exceed in value two hundred ana fifty dollars, or the articles specified as exempt to the head of a family. But wages may not be claimed under this section. Homestead exemption may be increased to $3,000 In value by filing for record in chancery clerk’s office a declaration claiming as exempt certain property. No property is exempt as against purchase money or for labor per formed on it or material furnished therefor. Money loaned at rates of interest not exceeding 6 per cent is exempt from taxation. New public utility corporations may be exempt from certain taxes for five years. Foreign Corporations may do business and sue and be sued &b In case of domestic corporations, (See Corporations.) Foreign corporations doing business in the State without recording their charters are subject to fine: and all contracts are null and void. Fraud and Fraudulent Conveyances. (See Attachment, Bills of Lading. Limitations. Creditor's Bill.) Sales of merchandise otherwise than in usual course of business and sales of entire stock of goods in gross presumed fraudulent and void as to creditors, unless 5 days before sale, seller make complete inventory and the purchaser made demand of seller for name, address and amount of claim of each creditor, and the purchaser notified personally or by mail each of creditors of proposed sale and of cost price of merchandise and the price to be paid therefor. Purchaser violating this act held to be trustee for seller’s creditors to extent of reasonable value of goods and required to pay them to that amount, even if he has paid seller in full. In case of destruction of stock of merchandise by fire, on which there Is insurance, holder of policies to notify creditors he owes for merchan dise of his loss and amount of insurance carried, within 5 days. Garnishment on judgments or In attachment. Binds debts or property of debtor in garnishee's hands. Grace. Abolished. Holidays. The legal holidays are: Sundays; January 1 (New Year’s day); January 19 (Robert E. Lee’s birthday); February 22 Washington’s birthday); April 2G (Memorial day (Confederate)); June 3 (Jefferson Davis’ birthday); July 4 (Independence day); first Monday in September (Labor day); November 11 (Armistice day); https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Thanksgiving day; and December 25 (Christmas day). Instruments falling due on a Sunday or holiday are payable on the next succeeding business day. Homestead owned and occupied by husband living with wife cannot be sold or encumbered unless the wife joins in the conveyance. The same is true as to husband if wife owns homestead. (See Exemp tions.) Husband and Wife. The disabilities of coverture are abolished, as are dower and curtesy. Husband and wife may contract with and sue each other, but contracts for compensation for services ren dered to each other are void. If husband rents wife's land, mules, etc., and does business in his own name, it will be deemed the business of the wife as to those without notice, unless the contract be recorded. Transfers between are void as to third persons unless recorded. t8ee also Married Women. Wills, and Homestead.) Insolvency. No general insolvent laws, but insolvent estates of decedents are divided among creditors pro rata. In case of insolvency partnership property is applied first to partner ship debts, and e converso. Interest. Legal rate 6 per cent per annum, and money loaned at not exceeding that rate is exempt from any taxes, but parties may contract in writing for 8 per cent; when more is stipulated or collected all interest is forfeited. When above 20 per cent interest and prin cipal forfeited and pavments forfeited. Judgments enrolled become liens on defendant’s property within the county. A junior judgment creditor may obtain priority as to property levied on by him, if, after ten days’ notice, the senior judg ment creditors fail to issue executions. Lien of judgment continues seven years. Jurisdiction. (See Courts.) Liens. Lien of an enrolled judgment, of mechanics and material men, of landlord and laborer on agricultural products, and keepers of hotels, inns, boarding houses and restaurants, and stablekeeper’* lien, and lien of saw mill laborer. The seller of goods may enforce lien for the price of the same, provided the goods are still in the hands of the purchaser or one having notice. The procedure Is by affidavit, filed at the commencement of the suit, stating that the purchase money is unpaid. A writ of seizure issues, and the goods are taken. No bond required of plaintiff unless third person claims the property. Title to personal property may be reserved by the seller as security for the price, and this is good even as against a subsequent bona fide purchaser, without any writing or record, except where acquired or used in the business of a trader. Limitations. Open accounts, accounts stated, and verbal con tracts, express or implied, three years; all other contracts, six years awards of arbitrators, six years; judgments and decrees rendered in another state against resident of this, three years; rendered in this, seven years, real actions, ten years. Actions to recover property Bold under order of chancery court must be brought within two years, where possession is taken and purchase money paid in good faith. When the legal title to property or right in action is in an executor, guardian, or other trustee, beneficiary, though under disability. Is barred when trustee is barred. Action against administrator or executor on claim against person deceased limited to four years from date of qualification of such administrator or executor. Statute does not apply to suits on notes or evidences of debt of banks or other moneyed corporations circulating as money. An acknowledgment or new promise must be in writing. Statute does not run during fraud ulent concealment, nor against infant or person non compos mentis, nor against a convict in actions for assault, etc., until after release nor against State, county, municipality, or any political subdivision of State, nor in favor of persons who remove from the state. Married Women retain their estate, common law disabilities of coverture abrogated; have capacity to make contracts and do ail acts in reference to property. Dower and curtesy abolished. Hus band and wife must join in conveying or encumbering homestead. (See also Husband and Wife and Descent.) Mortgages and Trust Deeds do not take effect as to creditors or purchasers in good faith and without notice until they are delivered to the clerk for record; with power of sale are foreclosed by sale In pais; without power of sale, by suit in chancery court, and after fore closure there is no redemption. (See Chattel Mortgages.) Negotiable Instruments. The Uniform Negotiable Instruments Act adopted. (See complete text following Digest of Banking and Commercial Laws.) Notaries. Have power to administer oaths, take acknowledgments and to protest notes and bills. (See Conveyances.) Notes and Bills. Uniform Negotiable Instruments Law adopted and now operative. (See Holidays.) Partnership. Few statutory provisions. Governed by general law. In case of insolvency, partnership property must go to pay firm debts, and e converso. Provision made for limited or special partnerships. Powers of Attorney. May be acknowledged or proved and recorded as deeds. May be revoked in like manner. Conveyances of land or other property under powers of attorney are valid. Redemption. No redemption from sales under mortgage, execu tion, or other judicial sale. Two years allowed for redemption of land sold for taxes, saving to minors and persons non compos mentis a like period after removal of disability. Further extension under present emergency laws may be obtained upon compliance witli prescribed conditions. (1934) Replevin lies to recover personal property wrongfully withheld from the owner. The property may be restored to defendant on bond. If he declines to bond, plaintiff may do so. If neither does, a claimant of the property may give the bond and receive possession. Damages may be assessed for wrongful taking or detention. Taxes. Personal property is assessed once a year; real estate every two years, and taxes constitute a prior lien. Land delinquent sold on first Monday of April. Redemption within two years, on payment of all taxes, costs, 25 per cent damages, and 5 per cent on amount paid. Infants and persons of unsound mind may redeem within two years after removal of disability, on paying the value of permanent improvements put on th