The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Dates of Regular Meetings
of Legislatures
Alabama
January,1915,andeveryfouryears.
Alaska
A Territory.
Arizona
January
___Every oddyear.
January
Everyodd year.
California
January
Everyodd year.
Colorado
January
Everyodd year.
January
Connecticut
Everyodd year.
Delaware
January
Every odd year.
DistrictofColumbia
Under U.S.Government.
Florida..
April
__Every odd year.
June
Georgia
Everyyear.
Hawaii
February.
Every odd year.
Idaho
January
Every odd year.
Illinois
January
Everyodd year.
Indiana
January
Every odd year.
Iowa...
January
Everyodd year.
Kansas.
January
Everyodd year.
January
Kentucky.
Everyevenyear.
Louisiana
May.
Everyevenyear.
Maine
January
Everyodd year.
January
Everyevenyear.
Maryland
January
Massachusetts
Everyyear.
January
Michigan
Everyodd year.
January
Minnesota
Everyodd year.
January
Mississippi.
Everyevenyear.
Missouri..
January
Everyodd year.
Montana
January
Everyodd year.
Nebraska..
January
Everyodd year.
Nevada
January
Everyodd year.
January
N e w Hampshire
Everyodd year.
January
NewJersey
Everyyear.
N e w Mexico___
January
Everyodd year.
January
N e w York-...
Everyyear.
NorthCarolina...
January
Everyodd year.
January
NorthDakota
Every odd year.
January
Ohio
Everyodd year.
January
Oklahoma
Every odd year.
January
Oregon..---Everyodd year.
January
Everyodd year.
Pennsylvania
January
R h o d e Island...
Every year.
_January
SouthCarolina......
Everyyear.
January
SouthDakota....
Everyodd year.
January
Tennessee_
Everyodd year.
January
Texas
Everyodd year.
January
Utah
Everyodd year.
October
Vermont
Every evenyear.
January
Virginia
Everyevenyear.
January
Washington
Everyodd year.
WestVirginia
January
Every odd year.
Wisconsin
January
Everyodd year.
January
Wyoming
Every odd year.
Arkansas
-
-
-
-
-
-
-
1362
DIGEST OF BANKING AND COMMERCIAL L A W S
T H E RAND-McNALLY BANKERS' DIRECTORY
C O M P I L E D E X P R E S S L Y F O R E A C H E D I T I O N OF
byprominentAttorneysineachStateoftheUnitedStatesandeachprovinceofCanada,thename
ofthecompilerappearingattheheadofeachState. TheLawsareenteredalphabetically
accordingtoStates. ProvincesofCanadaarelistedlast.
I M P O R T A N T : ForTabulatedInformation,forquickreferenceinregardtoInterestRates,DaysofGrace,
DamagesforProtestedBills, StatutesofLimitations,NegotiableInstruments,andHolidays,seepage14and
Mapbetweenpages12and13. The Negotiable Instruments LawhasbeenadoptedinthoseStates
whosenamesareprintedinRedonthat Map.
SYNOPSIS
T H E
L A W S
OF
R E L A T I N G
BANKING
ofpaymentisgiventooneormorecreditors,shallenuretothebenent
ofallthecreditorsequally, butthissectionshallnotapply tomortgages, pledges, orpawns giventosecureadebt contractedcontemporaneouslywiththeexecutionofthemortgage. Allassignmentsby
OF
A L A B A M A
adebtormadewithintenttohinder,delay,ordefraudcreditorsare
vold. All deeds ofassignmentfor the benefit of creditors shall, as
soonasexecuted, be filedand recordedinthe office ofthejudgeof
probate of the county in which the property is situated. Every
Judgmentconfessed,attachmentprocuredbythedebtor,orotherdispositionofpropertybywhichadebtorconveysall, orsubstantially
all, ofhisproperty which issubjectto execution inpayment oras
securityforadebtshallbedeemedageneralassignment.
Attachmentprocesswillissueuponaffidavitbythecreditororhis
agentoftheamountdueand that thedebtor absconds, orresides,
outoftheState,orsecreteshimselfsothatprocesscannotbeserved
uponhim,orisabouttoremoveoutoftheState,orhasorisaboutto
TO
A N D COMMERCIAL USAGES.
PreparedandRevisedbyMR. CLAUDED. RITTER,AttorneyatLaw.
Birmingham. (See CardinAttorneys' List.)
Acknowledgments or proofofrealestate instruments may be
beforeoneofthefollowingcourtsorofficers: 1st. WithinthisState
judgesofthe supremeand circuitcourtsandtheclerksofsuchcourts,
fraudulentlydisposeofhisproperty,orfraudulentlywithholdsmoney,
chattels, or effects whichareliable to the satisfaction ofhisdebts;
plaintiffmustgivebondindoubletheamountclaimed. Attachments
willissueforthefollowingdemands: 1: Toenforcethecollectionof
adebt, whetheritbedueornot,atthetimetheattachmentistaken
out. 2: Forany moneyeddemand, the amount of which canbe
certainlyascertained. 3: Torecover damages forabreach ofcontract when the damages are not certainor liquidated. 4: When
theactionsoundsindamagesmerely. Onenon-residentmaysueout
anattachmentagainstanothernon-residentbymakingoaththatthe
defendanthasnotsufficientpropertywithintheStateofhisresidence
wherefromtosatisfythedebt. Attachmentsmaybesuedout inald
ofapendingsuitwhenanyoftheabovegroundsexist. Garnishment
processwillissueinaidofattachmentinallsuchcases. Garnishment
maybedissolved bygivingbond. Inallcasesofattachmentssued
outsolelyuponthegroundthatthedefendantisanon-resident, the
attachmentmayissuewithoutgivingbond,butifdefendantappears
andpleads,bondmustbegivenortheattachmentdismissed.
Banks. ThenationalbanksystemisinforceinthisStateuncontrolled inanywaybyStatelaws,exceptthatthesharesaresubject
totaxationasotherpersonalproperty,butthebankisrequiredtopay
chancellors, registers inchancery, judges ofthe courts of probate,
Justicesofthepeace,andnotariespublic. Theofficialshouldcertify
thatthepersonsigningtheconveyanceisknowntohimandacknowl-
edges that "being informed of the contents of the conveyance he
executed the same voluntarily on the day the same bears date."
2d. OutsideofState Judgesandclerksofanyfederalcourt,judges
andclerksofanycourtofrecordinanystate,notariespublic,orcommissionersappointedbythe governorofthisState; beyondthelimits
oftheUnitedStates,bythejudgesofanycourtofrecord, mayoror
chief magistrate of any city, town or borough, or county, notaries
public, orbyanydiplomatic,consular, or commercial agentof the
UnitedStates. Forformsofdeedssee"Conveyances."
Actions. All ordinary suitsat lawarecommenced bysuing out
&summonswhichmustbeaccompaniedbyacomplaintstatingthe
causeofaction. Non-residentplaintiffsarerequiredto give security
forcosts. Whentwoormorepersonsarejointlyboundbyjudgment,
bond, oragreement, the obligation isseveralaswellasjoint.
Acceptance. Unconditional promisein writing to acceptabill
thetax.
beforeorafterdrawnisgoodinfavor ofallwhotake itupon faith
thereofforvalue. Theholdermaydeclineaqualifiedacceptanceand
treatthebillasdishonored; ifhetakes qualified acceptancedrawer
Thereisnoprovisionoflawfortheestablishmentofbanksofissue
In this State. Banks ofdiscount and deposit may be established
under the general incorporation laws. Depositors not claiming
Interestarepreferredcreditors incaseofinsolvency.
Anybankerwhodiscountsabillornoteatagreaterratethan8
percentcannotenforcethecollectionofsameexceptastotheprincipal,andifanyinteresthasbeenpaiditmustbedeductedfromthe
andendorsersare discharged.
A Check. Isabill of exchange on a bankpayableondemand;
mustbepresentedwithreasonabletimeafterissueandifdishonored,
noticemust be given or drawer isdischarged to the extent of loss
causedbydelay;doesnotoperatetoassignanypartofdrawer'sfunds
Inbank,andbankisnotliableunlessitacceptsorcertifies. Ifholder
hascheckcertifiedthedrawerandendorsersaredischarged.
The present negotiable instrument law ofAlabama, consisting of
196sectionswent intoforceAugust9, 1907. Its provisionsdonot
apply to instruments made prior thereto. The act so materially
changesthelaw inthis Stateas to suggest theproprietyofspecial
examination inanydoubtful case.
Administration ofestatesishadinthe probatecourtsofdecedents' residence. Allclaimsmustbepresentedwithintwelvemonths
afterthesamehaveaccruedorwithintwelvemonthsafterthegrantof
letterstestamentaryorofadministration,orelsebarred. Infantsand
personsofunsoundmindhave oneyear to presenttheirclaimsafter
disabilities removed. Administration of intestate is granted, 1st:
Tothehusbandorwidow; 2d: Thenextofkinentitledtoshare in
principal.
Collaterals. Receiptmustbegivenforifdemanded. Pledgesor
collateralsnot transferable without transferofthe debt; after two
days' noticeinwritingcollateralsmaybesold,byadvertisingforfive
days, at publicoutcry.
Conditional sales are good between the parties, but void where
personalpropertydeliveredtovendeeasagainstpurchasersforavaluable considerationwithout notice, mortgages and judgment credi-
tors,unlessinwritingandrecordedintheofficeoftheprobatejudge.
Conditional contracts of sales must be recorded in office of the
JudgeofProbateofthecountyinwhich the propertyislocated,
tobe rated against subsequent purchasers or judgment creditors
withoutnotice,exceptincountieshavingapopulationofmorethan
thedistributionoftheestate; 3d: Thelargestcreditoroftheintestate
residingwithinthisState; 4th: Suchotherpersonasthejudgeof
probate may appoint. There can be no appointment until after
80,000andthecontractisforalessamountthan$200.00.
Contracts. Inthefollowingcases,everyagreementisvoid,unless
suchagreement, orsomenoteormemo.thereof,expressing theconsideration,isinwritingandsignedbythepartyto be charged: 1.
Everyagreementwhich by its terms isnot to be performedwithin
toadminister, menarepreferredtowomenandwholebloodtohalf
blood. Non-resident executorsandadministrators maysueinthis
Statebyrecordinginprobatejudge'sofficecopyoflettersandgiving
bond to faithfully administer property. Anon-resident may be
madeuponconsideration of marriage, except mutual promises to
expirationoffifteendaysfromdateofdeath. Preference must be oneyearfromthemakingthereof. 2. Everyspecialpromisebyan
exercisedwithinfortydaysorrightsrelinquished. Ifseveralentitled executororadministratortoanswerdamagesout ofhisownestate.
3. Everyspecialpromisetoanswerforthedebt,default,ormiscarriage of another. 4. Every agreement, promise, or undertaking.
marry. 5. Everycontractforthesaleoflands,tenements,orhereditaments, orofanyinterest therein, exceptleases foraterm ofnot
appointedadministratororexecutorofadeceasedresident'sestate.
AffidavitsmaybetakenwithintheStatebeforeeveryjudge or
elerkofanycourt,justicesofthepeace,andnotariespublicorany
otherpersoninvestedbylawwithjudicial functions. Outsidethe
StateandwithintheUnitedStatesmaybetakenbeforeanyjudgeor
clerkoffederal court,judgeoffanycourtofrecordinanystate,
notariespublicandcommissionersappointedbythegovernor.
Aliens. "Foreignerswhoare,ormayhereafterbecome,bonafide
residentsofthisState,shallenjoythesamerightsinrespecttothe
possession,enjoyment,andinheritanceofpropertyasnative-borncitiConst.
zens."
Sec.34.
Alterations. Whenanegotiableinstrumentismateriallyaltered
longerthanoneyear,unlessthepurchasemoney,oraportionthereof,
bepaid,andthepurchaserbeputinpossessionbytheseller.
Generalacknowledgmentmustbesignedtomakeinstrumentselfproving. Married women must acknowledge twice in the event
thehomesteadisconveyed. Formofgeneralacknowledgmentisas
follows:
T h e State o f A l a b a m a ,
I,
County.
a(styleofofficer),herebycertifythat
whosenameissignedto the foregoing conveyanceandwho isknownto me, acknowledged before m e o n this
day, that, being informed of the contents of the conveyance, he
executedthesamevoluntarilyonthedaythesamebearsdate. Given
without theassentofall the parties llable thereon, itisavoided
exceptasagainst apartywho has himself made, authorized, or under m y h a n d a n d s e a l , this..
...dayof......A. D.
assentedtothealterationandsubsequentendorsers. Butwhenan
(Seal)
Instrumenthasbeenmateriallyalteredandisinthehandsofaholder
NotaryPublic.
Induecourse,notapartytothealteration,hemayenforcepayment
Conveyances. Allpersons of the ageof twenty-one years, not
thereofaccordingtoitsoriginaltenor. Materialalterationsconsists laboringundersomelegaldisability,
mayconveytheirrealestateor
ofanychangesindate;sumpayable,interestonprincipal;timeor anyinterestthereinbyinstrumentinwritingsignedbythegrantor,
placeofpayment;numberandrelationofparties;mediumorcurrency orhisagentdulyauthorizedinwriting,andattestedbyonewitness,or
inwhich paymentisto bemade.
ifthegrantorcannotwrite,bytwo witnesseswhoareabletowrite,
Arbitration. Courtsarecompelledbystatutetomakeanorder andwhosigntheirnamesaswitnesses. Ifthegrantorisnotableto
submittingcasesforarbitrationwhenmovedforbytheparties,and signhisnameitmustbewrittenforhim,andthewords"his mark"
tocontinuethiscauseforonetermforanaward,butnotlongerwith- writtenoveror againstit. Thepersonwritinghisnamemust sign
outconsentofparties, orgoodcause being shown therefor. The asawitness. Aparolleaseforlessthanoneyearisvalid. Amarried
awardofthearbitratorsmaybeenteredupandenforcedasthejudg- womanovereighteenyearsofagemayconveydowerinherhusband's
lands,andhasgenerallythesamerightsasmarriedwomenovertwentymentofthepropercourtwhethermadeinapendingsuitornot.
oneyearsofage. Thehusband mustjoininany conveyanceofthe
Arrest. Therecanbenoarrestoncivilprocess,exceptforconlunacy.
operateasnotice, must be
Conveyances,
tempt and incasesofalleged
AssignmentsandInsolvency. Everygeneralassignmentmade
byadebtor, orconveyanceby adebtor ofsubstantiallyall ofhis
propertyinpaymentofapriordebt,bywhichapreferenceorpriority
to
wife'sseparateestate.
acknowledged and recorded. No timeisrequiredwithinwhichconveyances shall be recorded. They operate as notices from date of
deliverytoprobatejudgeforrecord. (SeeAcknowledgments.) They
maybeusedasevidencewithoutfurtherproofofexecution. Lease-
1363
:
BANKING AND COMMERCIAL L A W S - A L A B A M A
1364
hold estates maybe createdtolast not exceeding twenty years.
butiflongervoidastoexcess. Amarriedwoman mustmakethe
followingacknowledgmenttoaconveyanceofahomestead:
..Countyof
Stateof
.judgeof...
I.
..dayof
that,onthe
the within n a m e d
(orotherofficer) doherebycertify
.,19
, camebeforeme
k n o w n to me (or m a d e
knowntome) to bethewifeofthewithinnamed
who,beingexaminedseparateandapartfromherhusbandtouching
Executions. Property subject to: 1st: On real propertyto
whichthedefendanthasalegaltitleoraperfectequity,havingpaid
thepurchasemoney,orinwhichhehasavestedinterest,inpossession,
reversion,orremainder,whetherhehastheentireestate,orisentitled
toitincommonwithothers. 2d: Onpersonalpropertyofthedefen
dant.(exceptthingsinaction),whetherhehastheabsolutetitlethere
to,ortherightonlytothepossessionthereofforhisownlife,thelife
acknowledgedthatshesigned
hersignaturetothewithin
thesameofherownfreewillandaccord,andwithoutfear,constraint,
orthreatsonthepartofherhusband.
s whereof,
s e Ihereto
n t i set
w myn hand
I fthiso
y
a
d
ofanother,oralessperiod. 3d: Onanequityofredemptionineither
landorpersonal property, whenanyinterestlessthantheabsolute
title issold. The purchaser issubrogated toalltherightsofthe
defendant, andsubjecttoallhisdisabilities. Writoffierifaciasisa
llenonlywithinthecounty inwhich itisreceivedbytheofficer,on
landsandpersonalityofdefendantsubjecttolevyandsale,fromthe
timeonly thatthe writisreceivedbysuchofficerandcontinuesas
19....
(OfficialCharacter.)
Corporation to make following acknowledgment:
...that.
longaswritisregularlydeliveredtothesheriffwithoutthelapseofan
entireterm. Astatementofajudgmentcertifiedbytheclerkofthe
courtmaybefiledintheofficeofthejudgeofprobate,whichmakes
thejudgmentalienwithinthe countyinwhichitisfiledfortenyears
saemanesohwdengissi,noitaroprocdiasehtfo..
totheforegoingconveyance, andwhoisknowntome, acknowledged
b e f o r e m e o n this day that, being informedof the contents ofthe
conveyance,he, assuchofficer,andwithfullauthority, executedthe
samevoluntarilyforandastheactofsaidcorporation.
Corporations. Everycompany, corporation, orassociation,not
organizedunderthelawsofAlabama,engagedinanyotherbusiness
thaninsurance,shall, beforeengaging inanybusinessinthisState,
fileintheofficeofthe secretaryofstate,atthecapitolinMontgomery,
aninstrumentinwriting,underthesealofsuchcompany,corporation,
orassociation, and signed officially by the presidentandsecretary
thereof,designatingatleastoneknownplaceofbusinessinthisState,
andanauthorized agent residing thereat. If such corporation is
engagedinanybusinessofInsurance,thestatementmustbefiledinthe
officeoftheinsurancecommissioner. Iftheagentischanged,anew
papermustbefiled. Heldnottoapplytocorporationssellinggoods
bytravelingagentorsample. ForeigncorporationstransactingbusinessinthisStatewithoutcomplyingwithaboveprovisions, foreach
offenseforfeittotheState$1,000,andanypersonactingasagentfor
foreigncorporationthathasnotsocomplied,forfeitsforeachoffense
$500. All foreign corporations doing businessin this State are
requiredtopaylicense feesranging from $25 upward, according to
capital. Foreigncorporationscandonobusinessuntilfeesarepaid
andallcontracts before then are vold. Every foreign corporation
requiredtoprocurefromsecretaryof stateapermittodobusiness
thereafter. Executionmaybeissuedonsuchjudgmentatanytime.
Executionsissuedbyjusticesareliensonthepropertyofthedefendant,onwhichtheyarelevied,fromthe timeofthelevy. Anorder
mustbeobtainedfromthecircuitcourtfor thesaleoflandsleviedon
underexecutionfromajustice'scourt. Nostayofexecutionincircuit
courtexceptbyappeal,and supersedeasbondwhichdelayscollection
untilaffirmanceby supremecourt,andentails10percentdamages,
with legal interestand costs. In justice's courtstayisgrantedon
goodsecurity,below$20, thirtydays over$20,sixtydays.
Fraud. Obtainingmoneyorgoodsoncreditunderfalsecolorof
pretense of carrying on business, or under false representationof
pecuniarycondition,withintenttodefraud,orbringingintotheState
moneyorgoodssoobtained,punishedaslarceny.
G a r n i s h m e n t mayissue inanycaseaftersuitcommencedupon
affidavitofnecessityandbondasinattachmentcases,orafterjude
ment, withoutbond.
HusbandandWife. Thewifehasfulllegalcapacitytocontract
asifsheweresole, exceptthatshecannotallenateorencumberher
realestatewithoutthehusbandjoiningintheconveyance,unlessthe
husbandbeinsaneorhasabandonedher, orisanon-resident,oris
Imprisonedunderaconvictionfor crimeforaperiodoftwoyearsof
more,inwhichcasesthewifemayconveyitasifsheweresole.
Husbandandwifemaycontractwitheachother,butthewifecan-
intheState. Thispermitcosts$10perannum,
Courts. Terms and jurisdiction. The supreme court, except
to issuewrits ofinjunction, habeascorpus, quo warranto, and other
remedial and original writs necessary to its supervision of inferior
courts,andimpeachmentsofjudicialofficers,hasonlyappellatejurisdictionandcasesaretriedontherecord sent up. Court ofappeals
has final appellate jurisdiction in the following cases: 1. W h e n
theamountinvolvedexclusiveofinterestandcosts doesnotexceed
thesumof$1,000. 2. Ofallmisdemeanors, includingtheviolation
oftownandcityordinances,bastardy,habeascorpus,andallfelonies,
where the punishment has been fixed at twenty years or under.
Circuit courts have unlimited common law jurisdiction when the
matterorsumincontroversyexceeds $50, and exclusive jurisdiction
oflibel, slander,assaultandbattery, and ejectment. The courtsof
chancery have exclusively equity jurisdiction. Regular terms of
both twice a year in nearly every county. Chancery courts have
full equity powers. Justices of the peace have jurisdiction of all
civilcauseswheretheamountincontroversydoesnotexceed$100in
value, exceptin cases of libel, slander, assault and battery, and
ejectment. Names ofallparties, plaintiffand individual names of
co-partners, mustbesetoutinwrits. Partnershipmaybesuedin
courtsoflaw. in firmname,without setting forthnamesofco-partners,butjudgmentinsuch suits bind only partnership's property.
notthatofindividual partners. The writ maybe serveduponany
oneofthepartners: thejudgmentreachesthepartnershipproperty
alone. Any one partner, or his personal representative, may be
suedalone on a partnership obligation. Non-residents must give
securityforcostswhensuitiscommencedorwithinsuchtimethereafter as the court m a y direct.
clerk insteadofsureties.
Money m a y b e deposited with the
DaysofGraceareabolished. (SeeNegotiableInstruments.)
Depositions. Incasesatlaw,depositions maybetakenofwitnesseswho cannotbe presentatthe trialinthe following cases:
Whenthewitnessisafemale;whenthewitnessistoosicktoattend
court;whenthewitnessresidesmorethan 100milesfromtheplaceof
trial, orisabsentfromtheState;whenthewitnessisabouttoleave
theState,andnotreturnintimeforthetrial;whenthewitnessisthe
solewitnessofthefacts;whenthewitnessisoneoftheofficersdesig-
natedinCodeNo.4030. Affidavitmustbemadeofoneoftheabove
facts,andofthematerialltyofthewitness. Maybetakenoninter-
rogatoriesbyacommissionerappointedbythecourtforthatpurpose.
Inequitysuits,wherewitnesseslivewithin100milesoftheplaceof
trial,depositionsmaybetakenbyoralexaminationbeforetheregis-
Thecommissionermaybeanysuitableperson,neednotbeanofficer.
ter,oraspecialexaminer,orcommissionerappointedforthepurpose
Descent and Distribution. The real estate of persons dying
Intestate,inthisState,descends,subjecttothepaymentofdebtsand
thewidow'sdower,asfollows: Firsttothechildrenoftheintestate
ortheirdescendantsperstirpesinequalparts. Next,totheparents,
ifthey survive, in equal parts. Ifonly one parent survives, then
one-halftosuchparentandone-halftothebrothersandsistersofthe
deceasedortheirdescendants,andiftherebenobrothersandsisters
andtheirdescendants,thenthewholeestateshallgotothesurviving
parent. Iftherearenochildrenortheirdescendants,andnofather
ormother, thentothebrothersandsistersoftheintestate, ortheir
descendants,inequalparts.
Iftherearenoneoftheabovetotake,
thenthewholetothehusbandorwifeoftheintestate,andiftherebe
nohusbandorwifeornoneoftheforegoingliving,thentothenext
notbesuretyforthehusband. Allofthepropertyandtheearnings
ofthewifeareherseparateestate,andarenotliableforthedebtsof
thehusband. Thewife mustsueandbesuedaloneforallmatters
relating toherseparateestateorcontracts, andforalltorts toher
person or property.
Thechancerycourthaspowertorelieveofany
or all disabilities of coverture.
Interest. Legalrateis8percent,andsameisallowedonallopen
accounts,judgments,anddecrees. Usuryforfeitsallinterest. Usuriousinterestpaidmayberecoveredbackwithintwelvemonthsafter
completedpayment.
Judgmentsofcourtsofrecordareprovedbyacertifiedtranscript.
Judgmentnotallen,butwhenacertifiedstatementthereof,madeby
thecourtoftheclerk,isfiledinthe office oftheprobatejudge.It
becomesallenonallpropertyofthedefendantthereininthecounty.
whichissubjecttoexecutionfortenyears, toenforcewhichexecution
m a y issue at any time within that period. Execution receivedby
sheriffduringlifeofdefendantmaybeleviedafterhisdeceaseofallas
executionissuedandleviediftherehasnotbeenlapseofentireterm
doastodestroylienoriginallycreated. Aboveappliestoexecutions
fromcircuitandchancerycourts. AnexecutionissuedbyaJustice
ofthepeaceisalienonlyfromtimeofitslevy. Allagreementsto
confessjudgment,ortoauthorizeanothertoconfessjudgment,made
beforethecommencementofthesuitinwhichsuchJudgmentsare
soconfirmedarevoid.
Mechanies' Lien. Contractors, including subcontractors.
mechanics, material men, and laborers havealien onhousesbuilt
andthegroundonwhichtheystanduponcomplyingwiththelaw.
LienforRent. Thelandlordsofanystorehouse,dwellinghouse.
orotherbuilding,shallhavealienonthegoods,furnitureandeffects
belongingtothe tenant, andsub-tenant forhisrent, whichshallbe
superiortoallotherliens,exceptthosefortaxes,alsooncropsgrown
onrentedpremisesforrentofthecurrentyear.
Limitations. Notesandstatedaccounts,sixyears;openaccounts,
three years; sealed instruments, real actions, and motionsagainst
judgments, twentyyears; actionsonthecase,one
officers,tenyears;
year. Barcreatedbystatutecanonlyberemovedbyapartialpay
ment,madeonthecontractbeforethebariscomplete,orbyanunconditional promiseinwriting. Ifanyone entitled tobring anaction.
ormakeanentryonland, ordefensefoundedontitletorealestate
beatthetimesuchrightaccrues,withintheageoftwenty-oneyears
orinsaneorImprisonedonacriminalchargeforatermlessthanile.
heshallhavethreeyears, or the periodallowedbylaw,forbringing
suchaction,iftheperiodallowedbylawbelessthanthreeyears,after
theterminationofsuchdisabilitytobringsucStatutesoflimitationar
hsuit,etc.,buttoaction
canbecommencedafter twentyyears.
tomarriedwomensseparateestates. Actionsfoundedonapromise
inwritingnotunderseal, orfortrespass topersonorproperty,must
bebroughtwithinsixyears. Statutesof limitationaremade appil
cabletoequitableaswellaslegaldemands,butdonotrunagainstdirect
trusts. Anyagreementorstipulationtoshortentheperiodprescribed
bylawforthebringingofanyactionisvold. Actionsseekingreilet
onthegroundoffraudwherethestatutecreatedabar,thecauseof
actionbeginstorunupondiscovery ofthefraudbyaggrievedparty.
Nopromiseor acknowledgmentis suficientto removethebarto
suit, exceptapartialpaymentmadeuponthecontractbytheparty
soughttobechargedbeforethebariscomplete,oranunconditional
promiseinwriting,signedbythepartytobechargedthereby.
Married W o m e n . (See Husband andWife.)
Mortgagesareexecutedandacknowledgedinthesamemanner
ofkininequaldegreeinequalparts. Iftherearenonextofkin
ItescheatstotheState. Thepersonalestateisdistributedthesame deeds. Maybeforeclosedbybillinequity,oriftherebeaprovision
astherealestate, exceptthatiftherearenochildrenthewidow is tothateffect, bysaleunderpower,uponsuchdefaultasauthanged
I
f
b
u
t
o
n
e
c
h
i
l
d
s
h
e
takes
oneasale.
Allmortgagesarevoidagainstcreditorsorpurchaserswithout
entitledtoallofthepersonalestate.
notice, unless recorded. Mortgagesoperateasnoticefromdayof
half. Ifnotmorethanfourchildren toachild's part, andif more
thanfourtoone-fifth. Posthumouschildrentakeasothers. Illegiti- deliverytoprobate judge forrecord. Thereisnofixedtimewithi
e childrentInherit from
a
their mmother.
e
T h e h u s b ahn d upon t
deathofthewifeisentitledtohalfofherpersonalestateabsolutely,
andtotheuseofallofherrealestateforlife,unlesshehasbeendivested
ofallcontrol over her estate by adecree of the chancery court.
Damagesrecoveredbypersonalrepresentation fordeathofdeceased
which theyshallbe recorded. Homesteadrealtycannotbemart
gagedorotherwisealienedwithoutthevoluntarysignatureandassent
ofwife, evidenced by acknowledgment, uponprivateexamination
separateandapartfrom the husband, andcertined. Allmortgages
mustbeinwriting,signedbythe mortgagor. Paymentofmortgage
aredistributedaccordingtostatuteofdistributionandareexempt debtmadebeforeoraftermaturityofdebt,revestsinthemortescor
orhisassigns,thetitletotherealorpersonalpropertymortcared.
from paymentofdebts.
Dower. Unlessthewifehasrelinquishedherrightofdowerinthe madeinthelifetimeofthemortgagor;ifmadeafterhisdeath,such
mannerprovidedbystatutesheis,uponthedeathofthehusband,
entitledtodowerinalllandsofwhichthehusbandwasseizedinfee
duringthemarriage, ofofwhichanotherwasseizedtohisuseorto
paymentreveststitletopersonalpropertyinthepersonalrepresenta
tive,andtitletorealityintheheirs,devises,orlegateesofthemortga
gor. Chattel mortgages mustbeinwriting. When themortgagor
issuedbythemortgageeforpossessionofthemortgagedproperty,
whichhehadaperfectequity,havingpaidallthepurchasemoney hemaydefendbyshowingpaymentofthedebt,orpartpaymentand
therefor. ThedowerInterestisone-halfwhenthehusbandleavesno atenderofthebalance, ormaypayitafterjudgment.
linealdescendants, andone-thirdwhentheestateisInsolventorthe
husbandleaveschildrenortheirdescendants. Ifthewifehasatthe
Mustbepayableinmoneyandmust
deathofthehusbandaseparateestateequalinvalue toherdower coNegotiableInstruments.
ntainanunconditionalpromisetopayasumcertainondemandof
Interest,sheshallnothavedower,andifoflessvalueisonlyentitled atafixedordeterminablefuturetime;mustbepayabletoaspected
tosuchamountaswithherestatewillmakethefullvalueofthedower. personorbearer;maybeininstallmentsandcontainprovisionthat
=
BANKING AND
1365
COMMERCIAL L A W S - A L A S K A
onanydefaultthewhole shall become due; with exchange fixedor
currentrate,interest,andattorney'sfeesforcollection;mayauthorize
saleofcollateralsandconfessionofjudgment;ifitreads,"Ipromiseto
pay" all signersare jointlyand severally llable; m a y b e payableat
SYNOPSIS
ixedtimeafterdateorsight, orafterspecified certainevent, b u t n o t
OF
uponacontingency; cannotwaiveexemptionfromexecution;need
notspecify value givennorplacewheredrawnorpayable; ifissued,
accepted, orendorsedwhenoverdueItispayableondemand; m a y b e
payabletotwoormorepayeesjointly,oroneormoreofseveralpayees,
ortotheestateofadeceased person;absenceorfailureofconsidera-
T H E L A W S OF
ALASKA
tionadefenseagainstonenotaholderinduecourseandpartialfallure
adefenseprotanto. Onenotapartytoinstrumentplacingasignature
inblankbeforedeliverybecomesanendorser. Everyendorserengages
t h a t o n d u e presentmentitshallbehonoredorthat hewill p a y t h e
a m o u n t to holderorany subsequent endorserwho m a y b e c o m p e l l e d
to pay; n o d a y s of grace; w h e n maturityfalls on Sundayorholiday
R E L A T I N G TO
paymentisdueonnextbusinessday;ifdueonSaturdaymustbepres e n t e d o n n e x t businessday, butif payable o n d e m a n d holdermay
presentsamebeforenoon onSaturday. Fraudandcircumvention in
procuringexecutionofinstrument isadefense againstanyholder.
P o w e r s of Attorney. Powers ofattorney or otherinstruments
B A N K I N G
A N D C O M M E R C I A L
U S A G E S
PreparedandRevisedbyO. D.COCHRAN,AttorneyatLaw,Nome.
conferringauthority to convey propertymaybe proved oracknowle d g e d i n the s a m e m a n n e r a n d m u s t b e received as evidence t o t h e
(SeeCardinAttorneys' List.)
sameextentasconveyances (seeConveyances),andmustbeexecuted
as conveyances.
A powerofattorney to relinquish dower must be
executed by husband and wife jointly. Her signature must be
A c k n o w l e d g m e n t s . (SeeDeeds.)
Actions. The distinction between actions at law a n d suits in
attestedbytwo witnesses, w h o are able to write or acknowledgeas
required forconveyances of land.
Presentment. Is not necessary to charge one primarily liable
exceptin case of bank notes;if payable at special placeability and
willingness to payitthere at maturityis equivalent to atender;If
notondemanditmustbepresentedondayitfallsdue.Ifondemand
thenwithinareasonabletimeafteritsissue,exceptabillofexchange
mustbepresented within reasonable timeafterits lastnegotiation.
Probate L a w . Acourt of probate, consisting ofone judge,is
establishedforeachcountyintheState. Thiscourthasjurisdiction
oftheprobateofwills,ofgrantingletterstestamentaryandofadminIstration,andtherepeal orrevocationofthesame;ofthesettlements
ofaccountsofexecutorsandadministrators,ofthesaleanddisposition
oftherealandpersonalpropertybelongingto,andthedistributionof,
Intestates'estates. Alsooftheappointment,removal,andsettlements
ofguardiansforminorsandpersonsofunsoundmind,thebindingout
ofapprentices,theallotmentofdower,andthepartitionoflandbelongIngtojoint owners. Acourtofprobate mustbeheldatthe court
houseofeachcountyonthesecondMondayofeachmonth, andthe
Judge may holdspecial or adjourned terms whenever necessary, but
suchcourt must atalltimesbeconsideredopen, excepton Sundays.
Italsokeepsa record ofdeeds, mortgages,andinstrumentsentitled
to record.
PromissoryNote. Mustbeunconditionalpromiseinwritingto
payondemandoratfixedordeterminabletimeasumcertaininmoney
t o o r d e r o r b e a r e r , a n d w h e r e d r a w n t o maker'sownorderisnotcom-
pleteuntilendorsedbyhim; maybeininstallments.
Protest. (See Negotiable Instruments.)
anyrespectableresidentoftheplaceinpresenceoftwoormorecredible
witnesses;billofexchangedoesnotoperatetoassignfundsinbands
ofdraweeandheisnotllableunlessheaccepts.
one per cent. The purchaser of lands sold for delinquent taxes
receives from the collector a certificate of purchase, containing a
descriptionof the property, the date and amountof assessment,
taxes,costs, fees, etc., which afterthe expiration oftwoyearsfrom
thedateof the sale is exchangeable for a deed from the probate
Judge-whichisprimafacieevidenceoftitle. Landssoldfortaxes
mayberedeemedwithintwoyearsby the owner, mortgagee,orany
person having abeneficial interest therein by depositing with the
probatejudgeofthecountyinwhichthelandsweresold,theamount
ofpurchasemoney, with interest at 15 percentperannum, andall
taxeswhichhaveaccruedsubsequenttothesale,andinterestthereon,
at8percentperannum;alsoallcostsandcharges. Wheneverland
validtopasstitletopurchaser, saleoperatesastransfertopurchaser
ofllenofstateorcounty,orthepropertyforpaymentoftaxesfor
issoldforStateorcountytaxes,andfromanycausesuchsaleisinwhich sold. All cotton factories or cotton mills which shall be
constructedin this State within five years shall be exempt from
taxationforaperiod oftenyears, provided suchmillsrepresentan
Investment of$50.000.
Wills. Allwillsofrealorpersonalpropertymustbeinwriting
ofpersonalpropertyvalldonlywhenthepropertydoesnotexceed
$500invalue,andmust be madeduringlastsicknessby testatorat
hishome. Persons presentmustbecalledonto witnessthatitis
theassignmentofathinginactionnotarising out ofcontract isnot
authorized.
Affidavits.
AnaffidavitordepositiontakenoutofAlaska, other-
wisethanupon commission, mustbe authenticated as follows: 1.
Itmustbecertifiedbyacommissionerappointedbythegovernorof
Alaskatotakeaffidavitsanddepositionsinthestate,territory,district
orcountry where taken; or, 2,it must be certified by ajudge ofa
courtofrecord havingaclerkandaseal t o h a v e b e e n t a k e n a n d s u b -
scribed before him at a time and place therein specified, and the
existenceofthecourt, t h e f a c t t h a t s u c h j u d g e i s a m e m b e r thereof.
andthe genuineness ofhissignature must be certified by the clerk
ofthecourt, underthesealthereof. Inallaffidavits ordepositions
witnessshould speak inthefirstperson.
Aliens. AnyallenwhoisabonafideresidentoftheUnitedStates,
orwhohasdeclaredhisintentiontobecomeacitizen,orwhoserights
aresecuredbytreaty,mayacquireandholdlandsuponthesameterms
asacitizen. Anyallen mayacquirelandsby inheritanceor inthe
ordinarycourseofjusticeinthecollectionofdebts,andmayacquire
inanyincorporatedorplatted city, town, orvillage, orin anymine
orminingclaim,butisnotauthorized toacquiretitlefromthe United
States toanyofthepubliclands.
Replevin. Writofreplevinliestorecoverpropertyincustodyif
besoldbycertain proceedingsin theprobatecourtcommencedin
themonthofMarch following. Rate oftaxation issixty-five per
centoneach
State purposes. County maylevya like
$100.00, formaylevyalax
amount.
Municipalities
notto exceed onehalfof
vate rights a n d the redress or prevention of privatewrongs. Every
actionmustbeprosecutedinthenameofthereal partyin interest,
exceptthatanadministratororexecutor,atrusteeofanexpresstrust,
orapersonexpresslyauthorizedbystatute maysuewithoutjoining
withhimthepersonforwhosebenefit theactionisprosecuted; but
andenforceliensuponlands, butsuch lands m u s t b e soldwithinten
years. A n y a l l e n m a y also acquireandhold lots or parcels of land
ProtestofForeignBills. Maybemadebynotarypublicorby
anofficerofthe law, andis limited to this. The action ofdetinue
liestorecoverpersonalpropertyinallotherInstances.
Taxes becomedue onOctober 1st,anddelinquenton the 31st of
Decemberoftheyearforwhichthey werelevied,andthelandsmay
equityandallformsofpleadingheretoforeexisting inactionsat law
andsultsinequityareabolished,andthereisbutoneformofaction.
denominatedacivilaction, fortheenforcementorprotectionofpri-
Arrest. The defendant m a y be arrestedin the following civil
actions: 1. For the recovery ofmoney ordamages when thede-
fendantis about to remove from thedistrict with Intent todefraud
hiscreditors;foraninjurytoperson;orforwillfullyinjuringorwrongfully taking, detaining, or converting property.
2.
For a fine or
penalty; or formoney or property embezzled or fraudulently misappliedorconvertedtohisownusebyapublicofficer,orbyanattorney, or by an officer or agent ofacorporation in the course ofhis
employmentas such, orby any agent, broker, or other personina
fiduciarycapacityorformisconductorneglectinofficeorinaprofesslonal employment. 3. To recover the possession of personal
property unjustly detained, when the property orany part thereof
hasbeenconcealed, removed, ordisposed of, so thatitcannotbe
foundortakenbythemarshal,andwithintentthatitshouldnotbe
sofoundor taken, or with theintent todeprivethe plaintiff ofthe
benefit thereof. 4. Whenthedefendanthasbeenguiltyoffraudin
contractingadebt,orincurringtheobligationforwhichtheactionis
brought,orinconcealingordisposingofthepropertyforthetaking,
detention, or conversionofwhichthe action isbrought. 5. When
thedefendanthasremovedordisposed ofhisproperty,orisaboutto
d o s o , withintenttodefraudhiscreditors.
A t t a c h m e n t . Theplaintiff, a t t h e timeofissuing the s u m m o n s
orafterwards, m a y have the property ofdefendant attached in an
actionuponacontract,expressorimplied,forthedirect paymentof
money,and,1,whichisnotsecuredbymortgage,lien,orpledgeupon
realorpersonalproperty,orifsosecured,whenthesecurityhasbeen
renderednugatoryby theactofthedefendant;or, 2,againstanonresident defendant. The writissues wheneverthe plaintiff, oranyoneinhisbehalf,filesanaffidavitshowingthatdefendantisindebted
signedbythetestatorinpresenceoftwowitnesses. Unwrittenwill
toplaintiff(specifyingtheamountofindebtednessoverandaboveall
legalset-offsorcounter-claims) uponacontract, expressorimplied.
testator'swillandmustbereducedtowritingbyoneofthewitnesses
withinsixdays. Minorovereighteen may make awillof personal
securedbymortgage,llen,orpledgeuponrealorpersonalproperty;
andthatthesumforwhichattachmentisaskedisanactual,bonafide,
existingdebtdueandowingfromplaintifftodefendant;andthatthe
attachmentisnotsoughtnortheactionprosecuted tohinder,delay,
property.
No will effective until probated. Maybecontestedin
probateorchancery court.
for the direct payment of money; that the payment has not been
ordefraudany creditor ofthedefendant.
Plaintiff must alsofilean
undertaking,withoneormore sureties, i n a s u m notlessthan$100,
andequaltotheamountforwhichhedemandsjudgment,conditioned
thatplaintiff willpayallcostsadjudgedandalldamages sustained
byreasonoftheattachmentifthesamebewrongfulor without sufi-
clentcause,notexceedingtheamountspecified.
Chattel Mortgages. Anyinterest inpersonalproperty, capable
ofbeingtransferred, m a y b e m o r t g a g e d : b u t t h e m o r t g a g e i s voldas
against creditors and subsequent purchasers and incumbrancers in
goodfaithandforvalue,unlesspossessionofthepropertybedelivered
t o a n d retained by the mortgagee or the mortgage providethat the
propertymay remainin the possessionofthe mortgagorand beac-
companiedbytheaffidavit ofall the partiesthereto t h a t t h e s a m e i s
madeingoodfaithtosecuretheamountnamedtherein,andwithout
design tohinder, delay, ordefraud creditors, andbe acknowledged
andfiled. The mortgage mustbe acknowledged by the mortgagor
a s a c o n v e y a n c e ofreal property i s a n d b e f i l e d i n t h e office of the
recorderoftheprecinctwherethe mortgagorresidesandoftheprecinctwhere thepropertyis. Withinthirtydays nextpreceding the
expiration o f o n e y e a r f r o m the filing, a t r u e copy ofthemortgage.
withaverified statementoftheinterestofthemortgageeinthepropertyatthetimethesameisrenewed,mustbefiledintheofficewhere
theoriginalwasfiled,andthelienisthereby extendedanotheryear.
Chattelmortgages are foreclosedin the same manner as mortgages
andliensuponrealproperty,butaclausemaybeinsertedinamortgage
authorizingthemarshal toexecutethepowerofsalethereingranted
tothemortgagee.
Corporations. DomesticCorporations. Threeormoreadultpersons, bona fide residents of thedistrict, may formacorporationfor
thefollowingpurposes: To construct, own, and operate railroads,
An
BANKING AND COMMERCIAL L A W S - A L A S K A
1366
tramways,streetrailways, wagonroads, flumes,andtelegraphand womanadministrationshallinanycasebegrantedtothehusband,
telephonelinesinAlaska;toacquire, hold,andoperateminesin ifqualified,andheapplytherefor. Claimsarepaidinthefollowing
Alaska;tocarryonthefishingindustry inAlaskaandthewaters order: 1. Funeral charges. 2. Taxes
due the United States
adjacentandcontiguousthereto;toconstructandoperatesmelters, 3. Expensesoflastsickness. 4. Allothertaxes. 5. Debtspre
electricandotherpowerandlightingplants,docks,wharves,elevators, ferredbythelawsoftheUnitedStates. 6. Debtswhichatthedeath
warehouses,andhotelsinAlaska;andtocarryontrade,transporta- ofthedeceasedwerealienuponhisproperty,intheorderofthe
tion, agriculture, lumbering, andmanufacturing inAlaska.
ForeignCorporations. Everycorporationorjointstockcompany
organizedunderthelawsoftheUnitedStatesoranystateorterritory
shall,beforedoingbusinesswithinthedistrict,fileintheofficeofthe
priorityoftheliens. 7. Debtsdueforwagesearnedwithinninety
daysimmediatelyprecedingdeathofdecedent. 8. Allotherclaims
Exemptions. 1. Earnings ofjudgment debtor, forpersonalser
secretaryofthedistrictandintheofficeoftheclerkofthedistrict
courtforthedivisionwhereinitintendstocarryonbusinessaduly
authenticatedcopyofitscharterorarticlesofincorporation,andalso
astatementverified by theoathofits presidentand secretaryand
attested b y a majority of its board of directors. Thereafter such
statementmustalsobesofiledwithinthirtydaysafterJulyfirstof
eachyear.
Deeds. Aconveyanceoflands,orofanyestateorinteresttherein.
maybemadebydeed,signedandsealedbythepersonfromwhom
theestateorinterestisintendedtopass,andacknowledgedorproved,
andrecorded,withoutanyotheractorceremony. Aquit-claimdeed
passesalltheestatewhichthegrantorcouldconveybydeedofbargain
andsale. No covenantsare impliedinany conveyance. Theterm
"heirs," orotherwordsofinheritance,are notnecessarytocreateor
conveyanestate in fee simple. Husband and wife may, by their
jointdeed,conveythe realestateofthe wife, inlike mannerasshe
mightdo by her separatedeed ifshe were unmarried. A married
womanresidinginthedistrict,joiningherhusband inadeed, must
acknowledge that she executed such deed freely and voluntarily.
Whenamarriedwomannotresidinginthedistrictjoinsherhusband
Inconveyingrealestatesituateinthedistrict,theconveyancehas the
sameeffectasifsheweresole,andtheacknowledgmentorproofofthe
executionmay be made the same as ifshewere sole. Withinthe
districtdeedsmust beexecutedinthepresenceoftwowitnesses,who
shallsubscribetheirnamesassuch;andthepersonexecutingadeed
vicesrenderedwithinsixtydaysnextprecedingthelevyofexecution
orattachment,whennecessaryfortheuseofhisfamilysupported
Books, pictures, andmusical
inwholeor inpart byhis labor. 2.
Instrumentsownedbyanyperson,tothevalueof$75. 3.Necessary
wearingapparelownedbyanypersonfortheuseofhimselforfamily.
butwatches or jewelry exceeding $100 invaluearenotexempt.
4. The tools, implements, apparatus, team, vehicle, harness,or
librarynecessaryto enableanypersontocarryonthetrade,occu
pation,orprofessionbywhichsuchpersonhabituallyearnshisliving.
tothevalueof$500; alsosufficientquantityoffoodtosupportsuch
team, ifany, for six months; theword"team" beingconstruedto
Includenotmorethanoneyokeofoxen,oraspanofhorsesormules.
ortworeindeer, orsixdogs. 5. The following property. Ifowned
bytheheadofafamilyandinactualuseorkeptforusebyand
forhisfamily,orwhenbeingremovedfromonehabitationtoanother
onachangeofresidence: Tensheep, withoneyear'sfleeceorthe
yarnorcloth manufactured therefrom; two cowsandfive swine:
household goods, furniture, andutensils tothevalueof$300;also
foodsufficient tosupportsuchanimals, ifany,forsixmonths,and
provisions actually provided for family use andnecessaryforthe
support of such person and family for six months. 6.Theseat
orpewoccupiedbytheheadofafamilyorhisfamilyinaplaceof
publicworship. 7. Allpropertyofanypublicormunicipalcorpora
tion. Noarticle,ortheproceedsderivedfromitssaleorexchange.
isexemptfromexecutiononajudgmentrecoveredforitsprice.
mayacknowledgetheexecutionbeforeajudge,clerkofthedistrict
court,notarypublic, orcommissionerwithinthedistrict, andthe
officertaking theacknowledgmentmustindorsethereonacertificate
ofacknowledgmentand thetruedateofmakingthesameunderhis
hand.
Depositions. The testimony of awitness, in the district, may
betakenbydeposition, inanaction,atanytimeaftertheserviceof
thesummons orthe appearanceofthedefendant, and inaspecial
proceedingafteraquestionoffacthasarisen,when,1,thewitnessis
partytotheactionorproceeding,bytheoppositeparty; 2,the
witness'sresidenceismorethanonehundredmilesfromtheplaceof
trial:3,thewitnessisabouttogomorethanonehundredmilesbeyond
theplaceoftrial;4,thewitnessistooinfirmtoattendthetrial;or,5,
thetestimonyisrequireduponamotion,orinanyothercasewhere
theoralexaminationofthewitnessisnotrequired.
The testimony of a witness, outofthedistrict, may be takenby
deposition,bycommissionissued,uponfivedays' noticetotheother
party,bytheclerkofthecourt,orjusticeofthepeaceinacauseinhis
owncourt,toapersonagreeduponbytheparties, or, iftheydonot
agree, to a judge, justiceofthepeace, notary public, or clerk of a
courtselectedby theofficerissuing thecommission.
Theamountofthecommissioner'sfeesshouldbeindorseduponthe
deposition.
Descent and Distribution. The real property of an intestate
descendsas follows: 1. Inequal shares to his orher children and
totheissue of any deceased child by right ofrepresentation; and
Iftherebenochildofintestatelivingatthetimeofhisor herdeath,
toallhisorherotherlinealdescendants; andifallsuchdescendants
areinthesamedegreeofkindredtotheintestate,theytakeequally;
otherwise,byrepresentation. 2. Ifintestateleavenolinealdescendants,tohiswife;orifintestatebeamarriedwoman, toherhusband:
andifintestateleavenowifenorhusband, tohis orherfather. 3.
Ifintestateleaveno lineal descendants, neither husband nor wife,
norfather,suchrealpropertydescendsinequalsharestohisbrothers
andsisters, and to the issue of any deceased brother or sister by
right of representation; but ifintestate leave a mother, she takes
anequalsharewithsuchbrothersandsisters. 4. Ifintestate leaveno
ineal descendants, neither husband nor wife, nor father, brother,
norsister,suchrealpropertydescendstohismother,totheexclusion
ofthe issue ofdeceased brothers and sisters. 5. If intestateleave
nolinealdescendants,neitherhusbandnorwife,norfather,mother,
brother,norsister, such realpropertydescendsto his next ofkin
inequaldegree,exceptingthatwhentherearetwoormorecollateral
kindred inequal degree but claiming through different ancestors,
G a r n i s h m e n t . (SeeAttachment.)
Homestead. Thehomesteadofanyfamily,ortheproceedsthereof,
isexempt. Suchhomesteadmustbetheactualabodeof,andowned
by,suchfamilyorsomememberthereof,andnotexceed$2,500invalue
norexceed 160acresinextent, ifnotlocatedinatownorcitylald
offintoblocksorlots; oriflocatedinanysuchtownorcity,one-fourth
ofanacre. This exemptiondoesnotapply todecreesforthefore
closureofanymortgageproperlyexecuted; butiftheownersofsuch
homesteadbemarried,themortgagemustbeexecutedbyhusband
andwife.
Interest. Thelegalrateofinterestis8percent,butoncontracta
Interestattherateof12percentmaybechargedbyexpressagree
mentoftheparties. Ifusuriousinteresthasbeenreceivedorcollected.
thepartypayingthesame,orhislegalrepresentatives,may,byaction
broughtwithintwoyears,recoverdoubletheamountofsuchinterest.
Ifit isascertained inanyactionuponcontractthatanunauthorized
rateofinteresthasbeencontractedfor,judgmentmustberendered
against the defendant for the amount due. without interest,and
against theplaintifffor costs. If theratecontractedforis8per
centorless, thedebtormayalsoagreetopaythetaxesuponthe
debt, credit, ormortgage.
Judgment and Execution. A judgment isdocketed imme
diately after entry. At any time thereafter while executionmay
Issueacertified transcriptofthedocketmaybefiledintheoffice
oftherecorderofanyrecordingdistrict,andfromthedateofdocket
ingajudgment or transcript thereof the judgment isalienupon
alltherealpropertyofthedefendantwithintherecordingdistrict
ordistricts where docketed, or which he may afterwards acquire
thereinduring the timean execution may issue. Ifno execution
issueswithintenyearsthe lienexpires, but isrenewedifafterwards
leaveisgiventoissueexecutionandatranscriptofthedocketof
theorderdocketedwith therecorder.
Executionmayissueatanytimewithinfiveyearsfromtheentry
ofthejudgment,andthereafteronorderofthecourtmadeonmotion
ofthepartyinwhosefavorthejudgmentwasgiven. Suchmotion
mustbesubscribedandverifiedasacomplaint,andsummonsmust
beserveduponthejudgmentdebtororhisrepresentatives,towhich
heortheymaydemuroranswer. Theordermademustbedock
etedasajudgment. Executionmaybeagainstthepropertyofthe
judgmentdebtor, hisperson, orforthedeliveryofthepossession
ofrealorpersonalpropertyorsuchdeliverywithdamages. Execu
tionfromthedistrictcourtisreturnablewithinsixtydays;fromthe
commissioner's
courtwithinthirtydays. Untilalevypropertyis
notaffected bytheexecution.
Licenses. (SeeTaxes.)
thosewhoclaim through the nearest ancestor are preferred. 6. If
Intestateleave one or more children, and the issue of oneormore
deceased children, and any of such surviving childrendie under
agewithouthavingbeenmarried,allsuchrealpropertythatcame
tosuchdeceased child by inheritance from such intestate descends
inequalsharestotheotherchildrenofsuchintestateandtotheissue
ofanyotherchildrenwhohavedied,byrightofrepresentation. But
ifalltheotherchildrenofintestatebedead,andanyofthemhave
left issue, such real property so inherited by such deceased child
descends to all the issue of such otherchildren ofthe intestate in
Liens. Everymechanic, artisan, machinist,builder,contractor.
lumber merchant, laborer, teamster, drayman, and other person
performinglaboruponorfurnishingmaterialofanykindtobeused
Intheconstruction,development,alteration,orrepair,eitherinwhole
orinpart,ofanybuilding,whart,bridge,flume,ditch,mine,tunnel.
fence, machinery, oraqueduct, oranystructureorsuperstructure.
tateleavenolinealdescendantsorkindred,suchrealpropertyescheats
part,is,forthispurpose,deemedtheagentoftheowner.
Limitations. Civil actions must be commenced within the
hasalienuponthesamefortheworkorlabordoneormaterialfur
nishedattheinstanceoftheownerofthebuildingorotherimprove
equalshares,iftheyareinthesamedegreeofkindredtosuchdeceased
child;otherwise,they takeby right ofrepresentation. 7.Ifintes-
mentorhis agent;andeverycontractor,sub-contractor,architect,
builder,orotherpersonhavingchargeofthework,inwholeorin
totheUnitedStates.
following periods after the cause ofactionaccrued: Withinten
years-actionfor the recovery ofreal property, orthepossession
thereof;uponajudgmentordecreeofanycourtoftheUnitedStates
orofanystateorterritorywithintheUnited States;uponasealed
Instrument. Withinsixyears-actionuponacontractorliability.
expressorimplied, except judgment orsealed Instrument; upon&
llabilitycreatedbystatute,otherthanapenaltyorforfeiture:for
wasteortrespassuponrealproperty: fortaking,detaining,orinjuring
personalproperty,Includinganactionforthespecificrecoverythereof.
Withinthreeyears-actionagainstamarshal,coroner,orconstable.
uponallabilityincurredbythedoingofanactinhisofficialcapacity
orinvirtueofhisoffice,orbytheomissionofanofficialduty.Including
thenon-payment of money collecteduponexecution,butnotan
actionforanescape;actionuponastatuteforpenaltyorforfeiture
wheretheactionisgiventothepartyaggrieved, ortosuchparty
andtheUnitedStates,exceptthestatuteprescribeadifferentlimita
tion. Withintwoyears-actionforlibel,slander, assault,battery,
Dowerand Curtesy. Thewidowofevery deceasedpersonis
entitledtodower,ortheuseduringhernaturallifeofone-thirdpart
Intvalueofallthelandswhereofherhusbanddiedseizedofanestate
ofinheritance.
Whenanymanandhiswifeareseizedinherrightofanyestateof
the curtesy, although such
Inheritanceinlands,thehusband,onthedeathofhiswife,holdsthe
lands forhis lifeastenant thereofby
husbandandwife maynothavehadissuebornalive.
Evidence. Nopersonmaybeexcludedasawitnessonaccountof
beingapartyorinterestedintheeventofanactionorproceedings,
havingbeenconvictedofacrime,orhisopinionsonmattersofreligious
belief. Personsofunsoundmindandchildrenundertenyearsofage
whoappearincapableofreceivingjustimpressionsofthefactrespectingwhichtheyareexaminedorofrelatingthemtrulymaynotbe
witnesses. Anattorneymaynot, withouthisclient'sconsent,be
examinedastocommunicationsmadebyhisclienttohimorhisadvice
thereon. Apriestmaynot,withouttheconsentofthepersonmaking
theconfession,beexaminedastoanyconfessionmadetohiminhis
professionalcapacity,inthecourseofdisciplineenjoinedbythechurch
towhichhebelongs. Aphysicianorsurgeonmaynot,againstthe
objectionofhispatient,beexamined,inacivilaction,orproceeding,
stoinformationacquiredinattendingthepatientwhichwasnecessarytoenablehimtoprescribeoract.
Executions. (SeeJudgmentandExecution.)
Executorsand Administrators. Whenawillisprovenletters
testamentaryareissuedtothepersonsthereinnamedasexecutors,
ortosuchofthemasgivenoticeoftheiracceptanceofthetrustand
are qualified. Administration is granted as follows: 1. To the
widowornextofkin,orboth,inthediscretionofthecourt:2,toone
o
rmoreoftheprincipalcreditors;or,3,toanyotherpersoncompetent
andqualifiedwhomthecourtmayselect. Ifdeceasedwereamarried
seduction, falseImprisonment, orforanyinjurytothepersonor
r
ightsofanothernotarisingoncontract;uponastatuteforafor
feitureofpenaltyto the United States. Withinoneyear-action
againstthemarshalorotherofficer
fortheescapeofapersonarrested
uponastatuteforthepenaltygiven
orImprisonedoncivilprocess;
Inwholeorinparttothepersonwhowillprosecute,butifnotcom
mencedwithinoneyearbyprivatepartymaybewithintwoyears
bytheUnitedStates.
MarriedWomen. Thepropertyandpecuniaryrightsofevery
married womanatthe time ofmarriage, orafterwardsacquired
bygift,devise,orinheritance,orbyherownlabor,arenotsubject
tothedebts orcontracts ofherhusband,andshemaymanage,sell,
convey, or devise the samebywilltothesameextentandinthe
samemannerthatherhusbandcanpropertybelongingtohim. For
civil injuries damages may be recovered from a marriedwoman
alone,andherhusbandisnotresponsibletherefor. Contractsmay
BANKING AND COMMERCIAL LAWSbe made by awife, and liabilities incurred, and the sameenforced
b y o r a g a i n s t her to the s a m e extent a n d i n t h e s a m e m a n n e r a s if
shewereunmarried. Alllaws which impose orrecognizecivildisa-
bilitiesuponawifewhichdonotexistastothehusbandarerepealed.
W i f e m a y record list of her property and such list is prima facie
evidence
Neitherhusband norwife isliableforthedebts orliabilities ofthe
otherIncurredbeforemarriage. H u s b a n d a n d w i f e m a y m a k e c o n v e y -
1367
Every instrument affecting real property in this state executed,
acknowledgedandcertifiedinanyother state or territoryinaccordance with thelaws ofsuch state or territory, shall be valid a n d entitled to record as ifexecuted in accordance with the laws of this
state.
of her separate ownership, a n d property not so reg-
Istered is deemed prima facle the property of the husband.
ARIZONA
Actions.
Distinction informs betweenlaw a n d equity are abol-
Ished. Pleadings are: Complaint and answer, and in some cases a
reply.
ances and transfers and createliensbetween themselves,andeither
may constitute the other his or her attorneyin fact. A woman
Administration of Estates. Lie in SuperiorCourt. Nopublic
administrator. Where persondies intestate letters shall issue.
becomesofageattwenty-oneoruponbeingmarriedaccordingtolaw.
Mortgages. Mortgagesareexecuted,acknowledged,andrecorded
Affidavits. M a y be taken before any officer authorized to take
acknowledgments.
i n t h e s a m e m a n n e r as deeds. No covenant is implled for the
p a y m e n t of the s u m intendedtobe secured. Record ofassignment
thestate, m a y acquire by inheritance, or in ordinary course ofjus-
lsnot notice to the mortgagor, his heirs, or personal representatives. Mortgage may be discharged by entry In
of r e c o r d
signedby mortgagee or his personal representative or assigneeand
witnessedby the commissionerordeputy, orby certificateexecuted
and acknowledged as other conveyances. Foreclosureisby action
of anequitablenatureinwhichadeficiency judgment m a y b e h a d .
Notes and Bills of Exchange. On all bills of exchange and
all negotiable promissory notes, orders, and drafts payable ata
future day certain within the district, graceis allowed; but grace
isnotallowed onbillsofexchange, notes, ordrafts,payableatsight
or o n d e m a n d .
Aliens. Unless rightsaresecured by treatycannotholdland is
ticeinthecollectionofdebts; may acquire liens onreal estate, m a y
lendmoneyandsecuresameonrealestate,buttitlesoacquiredmust
besoldwithin five years: may acquire patented mines and hold
stock in domestic corporation owning unpatented mines.
The laws provide that the laws ofthe state pertaining to aliens
shall n o t b e construed as to conflict i n a n y manner with a n y rights
existing under a n d by virtue of a n y treaty ofthe United States
withany other country.
Appeals.
Appeals are allowed f r o m justice of peace to superior
court in certain cases and from superior court to supreme court
where amount involvedis$200 or over.
Records. An unrecorded conveyance of real property isvold
asagainst any subsequent innocent purchaseringoodfaithandfor
valuableconsideration whoseconveyance isfirstdulyrecorded.
Acommissioner is ex-officio recorder of a recording district, the
boundaries ofwhich are fixed by the court. Conveyances of lands
Arbitration. There are statutory provisions which are not
exclusiveofthecommonlawarbitration.
Arrest. Abolished in civil cases, debtor fraudulently removing
propertyoutofterritoryorconcealingitmaybeprosecutedcriminally.
Attachment.
notinanyrecordingdistrictare recorded withtheclerkofthatdivi-
sionof the district court within the limits of which such landsare
situated.
Replevin. The plaintiff, at any time after the commencement
ofanactiontorecoverthepossessionofpersonalpropertyandbefore
Judgment, may claim the Immediatedelivery ofsuchpropertyupon
Alinganaffidavitshowingthatheistheownerofthesameorentitled
tothe possession thereof; that the property is unlawfully detained
bydefendant; theallegedcauseofdetention; thatthesamehasnot
beentakenfora tax assessment or fine, pursuant to a statute, or
seized under an execution or attachment against the property of
theplaintiff; or, ifsoseized, that itisexempt; andtheactual value
oftheproperty
Service. (SeeActions.)
Supplementary Proceedings. (See Judgment and Execution.)
Writ will issue on affidavit showing:
1.
That
defendantisindebtedtoplaintiffuponacontract, express orimplied,
forthedirectpaymentofmoneyandthatsuchcontractwasmadeor
ispayableinthisTerritory,andthatthepaymentofthesamehasnot
beenfullysecuredby mortgage,llen,orpledgeofpersonal property.
oriforiginallysosecured,that suchsecurityhas, withoutanyactof
plaintifforthepersontowhomthesecuritywasgiven,becomevalueless,andshallspecifythecharacteroftheindebtedness,thatthesame
isduetotheplaintiffoverandabovealllegalset-offsorcounter-claims,
andthatdemandhasbeenmadeforthepaymentofamountdue:or.
2.
ThatdefendantisIndebtedtoplaintiff,statingamountandchar-
acterofdebt;thatsameisdueandpayableoverandabovealllegal
set-offs a n d counter-claims, a n d that defendant isanon-resident of
thisTerritoryorisaforeigncorporationdoingbusinessinthisTerritory; or, 3. Thatanactionispendingbetweentheparties,andthat
defendantisabouttoremovehispropertybeyondthejurisdictionof
thecourt to a v o i d p a y m e n t o f j u d g m e n t ; and, 4.
That theattach-
toprosecuteanyofthefollowinglinesofbusinesswithinthedistrict
Taxes. Every personor corporationprosecuting or attempting
must first applyforand obtainlicensesoto do fromthedistrict
court or a subdivision thereof, and pay perannumforsuch license
forthe respective lines oftradeandbusiness as follows: Salmon
mentisnotsoughtforawrongfulormaliciouspurpose,andthatthe
actionisnotprosecutedtohinderordelayanycreditorofdefendant.
5. Nosuchattachmentshallissueuntilsuithasbeendulyinstituted,
canneries, 4 cents per case: salmon salteries, 10 cents per barrel;
fishoilworks, 10 cents perbarrel;fertilizerworks,20cents perton
freightandpassenger tranportations lines, propelledbymechanical
althoughplaintif'sdebtordemandbenotdueunderspecifiedfactsof
intenttodefraud; nofinaljudgmentshallberendereduntilsuchdebt
ordemandshallbecomedue. Writmayissueatorafteractionbegan
uponplaintifforsomeoneinhisbehalffilingtheaffidavit,andupon
poweroninland waters andoceanandcoastwisevesselsdoing local
business for hire, $1 per ton on net tonnage: railroads, $100 per
mile: tramways, $10permile; saw-mills, 10cents perthousandfeet
onlumbersawed; quartz mills, $3 perstamp; mercantile establishmentsandmanufactoriesdoingabusinessofunder$4,000perannum,
$10,andinproportiontotheamountofbusinessdoneto$500for
establishmentsdoingabusinessof$100,000perannum; inotherlines
oftradeandbusinesstheamountisfixedforeachand ranges from
$10to$500.
Wills. Everypersonoftwenty-oneyearsofage,ofsoundmind,
maydisposeofallhisorherpropertybywill,savingawidow'sdower
writing,signedbythetestator,orunderhisdirection,inhispresence,
andattestedbytwoor morecompetentwitnessessubscribingtheir
andahusband's rights as tenant by the curtesy. Will must be in
namesinthepresenceofthetestator. Awillbyanunmarriedperson
isrevokedby his subsequent marriage. Children ordescendants
ofchildrennotnamedorprovidedforinthewilltakeasiftestator
haddiedintestate. Amarineratseaorsoldierinmilitaryservice
maydispose of his personal property as at commonlaw. Proof
ofnuncupativewillmustbemadewithinsixmonths, andthewords
ortheirsubstance reduced towriting within thirty days afterthey
arespoken. Aperson owning propertyin, butnotan inhabitant
of, thedistrict maydeviseorbequeath the sameaccording tothe
lawsofhisdomicile. Ifsuchwillbeprobatedwithoutthedistrict,
coplesof thewillandtheprobatethereof, certifiedbytheclerk of
thecourtinwhichitwasprobated,withthesealofthecourtaffixed
thereto, Iftherebeaseal, togetherwith acertificateofthechief
Judgeorpresiding magistrate, that the certificateisindueform,
andmadeby the clerk or other person having the legal custody
oftherecord, mayberecorded, admittedinevidence, orcontested
andannulledasifexecutedandprovedwithinthedistrict.
SYNOPSIS
OF
butitmaybeissuedinapropercaseeitheratthecommencementof
thesuitoratanytimeduringitsprogress. 6. Thewritmayissue,
filingabondwithtwosuretiesinanamountequaltoamountsued for
Suretiescanbecompelled tojustifyuponnotice. When morethan
oneattachmentisleviedonsamepropertywritstakepriorityaccording totime oflevy. (See Liens, Garnishment.)
Banks-Savings and Loan. M a y b e incorporated to loan and
Invest property. M a y hold lot and building in which business is
carriedonto value of $100,000; such as may accumulate ongood
faith loansandsuchpersonalpropertyasmayberequiredintransactingitsbusiness. Topurchaseandconveyevidenceofdebt except
national, territorial, and municipal bonds must have a capital of
$100,000.
Married w o m e n a n d minors m a y transactbusiness with
such banks. Arerequiredtohavelicenseand areexamined bythe
bankexaminer.
Provisionsaremadeforthecontentsofthecharter.
Bills andNotes. Thenegotiableinstrumentcodeadoptedbythe
AmericanBarAssociationisinforce. Jointobligormaybereleased
without releasing others. (See Holdings.)
Bonds. Any standard suretycompany, organized under laws of
UnitedStatesorofanystate,mayexecutebondsinjudicialproceedings within the state when they have complied with license laws.
( S e e G u a r a n t y Companies.)
Chattel Mortgage. Tobevalidagainst othersthanthe parties
thereto,chattelmortgagemustsetouttheresidenceofthemortgagor
andthemortgagee,therateofinteresttobepaidandtimeandplaceof
paymentofthedebtsecured,andbeaccompaniedbytheaffidavitof
both mortgagorand mortgagee that the mortgage isbona fide and
made without design to defraud or delay creditors. Immediate
delivery of the mortgagedpropertymustbemadetothemortgagee
andthechangeofpossessionmustbeactualandcontinued,unlessthe
mortgageoratruecopythereofshallbeforthwithdepositedandfiled
intheoffice oftherecorderofthecountywherethe property shall
thenbesituated. Removal sale,orotherdisposition ofmortgaged
propertywithoutconsentofmortgageeentitles mortgageetoimmediatepossessionofit,andsuchremoval,transfer,orsale,orsubsequent
encumbranceisfelony. Ifmortgageepermitsmortgagedpropertyto
THE LAWS
R E L A T I N G
beremovedtoanothercounty,heshallwithinonemonthrecordhis
mortgage in such other county. Chattel mortgage may be foreclosedinjusticecourtifamountofdebtdoesnotexceed$300; other
wiseindistrictcourt. Mortgageemayobtainpossessionofproperty
ondefaultandsellafternoticewhichmustbeservedonowner. Upon
ARIZONA
OF
TO
stockofgoods,wares,andmerchandisewithcontinuedpossessionin
BANKING
mortgagor, vold. If copy is filed with recorder, original must be
acknowledged,andcopycertifiedtobycountyrecorder.
AND COMMERCIAL USAGES
RevisedbyFrancis D. Crable, Attorney-at-Law,Flagstaff, Arizona.
Accounts. When stated draw interest;when action is upon
attached,statingthat such"accountis,withinaffiant'sknowledge,
Justand true, thatitisdue,andthatall just andlawful offsets,
claimants, andcreditshavebeenallowed," isprimafacieevidence,
unlessonedaybeforetrial,defendantfileswrittendenialofanyitem
underoath.
itemizedaccount and affidavit of party,his agent or attorneyis
Acknowledgments. Theform of anordinary certificateofacknowledgment shall be substantially asfollows:
'State ofArizona,
County
ss
of.....
)
This instrument was acknowledged before me this..........day
of...
A.
D..
b y ( i f b y a natural person or persons
hereinsertnameornames:ifbyapersonactinginarepresentative
orofficialcapacity, orasattorneyinfact,theninsertnameofperson
asexecutor, attorneyinfact, orother capacity; ifby anofficer or
officersofacorporation, theninsertnameornamesofsuchofficer
orofficersasthepresidentorotherofficerofsuchcorporation,naming
it).
A.
.
NotaryPublic.
(Mycommissionexpires.
.
.
(Orotherofficer)
.....)"
Claim andDelivery. (SeeReplevin.)
Collaterals. No statutory provisions-common law prevails.
CommunityProperty. (SeeConveyances.)
ConditionalSales. Wheretitleremainsinvendoruntilpurchase
priceis paid, voidasto personsnot parties thereto, and persons
without notice, unless subscribed, acknowledged, and filed with
countyrecorder.
Contracts. (See Bills and Notes.) One or more obligors o n a
jointorjointandseveralinstrumentmaybereleasedwithoutreleasing
theothers,andmaybesuedseparatelyundercertainconditionswithoutreleasingtheothers. Marriedwomenmaycontractasifsole.
Conveyances. Conveyancesofestateinlandsfortermmorethan
oneyearshallbebyinstrumentinwritingsubscribedbypartymaking
It,orhisagent,dulyauthorizedtheretobywriting. Aconveyanceis
noteffectualagainstcreditorsorbonafidepurchasersunlessrecorded
In recorder'soffice incounty where land issituate. Aconveyance
purportingtoconveyagreaterestatethanthegrantorhaspassesonly
theestatethatheactuallyhas. Ageneralgrantordevisepassesthe
feeunlessexpresslylimitedtoalessestate. Alldeedstorealtymust
besignedby bothhusbandandwifeexceptastounpatentedmining
claims. Deeds must be signed and must be acknowledged before
some officer authorized to take acknowledgment, and properly certifiedbyhim to entitle same to registration. Theuseoftheword
Ar
BANKING A N D COMMERCIAL L A W S - A R I Z O N A
1368
Recorder on county where propertyis situated. Suchhomestead
H
exemptfrom date offilling said affidavit. Thefollowingproperty
Exe
"grant" or "convey" implies the following covenants and none shallbeexemptfromexecution,attachmentandsaleonanyprocess
other: 1. Thatprevioustothetimeoftheexecution oftheconB
Thefamilybible. 2.Aseatorpewin
veyancethegrantorhasnotconveyedthesameestate,oranyright,
the
1.anyhouseorplaceofpublicworship. 3. Alotinanyburialground.
title orinterest therein, toany person otherthan the grantee. 2. issuedfromanycourt:
rlag
N
e
c
e
s
s
a
r
y
h
o
u
s
e
h
o
l
d
,
t
a
b
l
e
a
n
d
k
i
t
c
h
e
n
f
u
r
n
i
t
u
r
e
,
i
n
c
l
u
d
i
n
g
v
i
z
:
ofsuchconveyance
Thatsuchestateisatthetimeoftheexecution
the
ofamechanicorartisannecessaryto
Married women seventeen years of age 4. Thetools orimplements
sm
ei
pn
a
6. Thesewingmachineandimplements
5.
r
a
w
p
u
n
.
s
e
c
b
m
i may conveytheir own lands without beingjoined by carry
freefrom d
on
h
i
s
f
o
.
c
trade;
t
e
a
seamstress
a
c
t
u
a
l
l
y
used
in
p
u
r
s
u
i
n
g
h
e
r
v
o
c
a
t
i
o
n
.
7.
O
n
e
Wife,
theirhusbands. (See Acknowledgment, Dower, Husbandand
And
watch, onesewing machine, one typewritingmachine,andonebiwife
Five milch cows. 8. Thecampingoutfitofevery
mar
Homestead.) n Commission,
py
rc
ol
se
p.
ectori7nthisstate,includinghisminingtools,saddlesandburros.
st .c
o
i
t organized
a
r under
o Chapter
p
r 90,
o FirC
a
carn
9. Thefarmingutensilsandimplementsofhusbandryofthedebtor,
Hasgeneralsupervisionofcorporations.
l
ives
Session, Laws1912.
etc. 10. Poultry not exceedinginvaluetwenty-fivedollars. 11.
prop
Corporationsin General. Anynumberofpersonsmaybecome
two mules and theirharness;onecartorwagon:
incorporatedforthetransactionofanylawfulbusiness.
Beforecom- Twohorsesand
d
isp
onedrayortruck;
onecoupe;
onehackorcarriageforoneortwo
mencing any business, they must adopt articles of incorporation
twen
whichshallbesigned andacknowledged bythemas deedsand be horses oroneautomobilebytheuseofwhichacarman,drayman
ofth
huckster, hackman, teamster, chauffer,orotherlaborer
filedintheofficeoftheCorporationcommissionattheState Capital truckman,
cont
habituallyearnshisliving,andonehorsewithvehicleorharnessor
andacertifiedcopythereoffiledintheofficeoftheCountyRecorder
shall
otherequipmentusedbyasurgeon,physician,constableorclergyman
in each countyinthestatein whichthey transact business. The i
4000
n
t
h
e
l
e
g
i
t
i
m
a
t
e
p
r
a
c
t
i
c
e
o
f
h
i
s
p
r
o
f
e
s
s
i
o
n
,
w
i
t
h
f
o
o
d
f
o
r
s
u
c
h
h
o
r
s
e
s
articles of incorporation must contain: 1. The name of corpo- or mulesfor one month. 12. Fuel necessaryfortheuseofthe
I
2. Thegeneral debtorandhisfamilyfortheperiodofsixmonths.
rators,anditsprincipalplaceoftransactingbusiness.
resti
1
3
.
T
h
e
p
r
e
s
s
e
s
,
3.
Theamountof
natureofthebusinessproposedtobetransacted.
s
t
o
n
e
s
,
type,
c
a
s
e
s
and
d
o
a
o
t
h
e
r
t
o
o
l
s
andimplementsusedbyany
capital stockauthorized andthetimes whenand conditions upon
personorcopartnershipinprintingorpublishinganewspaperorin
4. Thetimeofthecommencementand
C
o
n
conductinganyprintingestablishmentorbyanypersonhiredtouse
whichitistobepaidin.
terminationofthecorporation. 5. Bywhatofficersorpersonsthe them; not exceeding two thousand dollarsinvalue;togetherwith
affairsofthecorporationaretobeconducted,andthetimesatwhich stockintradenotexceedingfourhundreddollarsinvalue. 14. The
theyaretobeelected. 6. Thehighestamountofindebtednessor
liabilitytowhichthecorporationisatanytimetosubjectitself,which libraryandphilosophicalandchemicalorotherapparatusbelonging
I
Whetherprivate toandusedfortheinstructionofyouthinanyuniversity,college,
15. Allmoneysreceivedbyor
mustnotexceedtwo-thirdsofitscapitalstock. 7.
propertyistobeexemptfromcorporatedebts.
pea
Unlesssoexempted seminary
payabletoasurvivingwifeorchilduponthelifeofadeceasedhusband
oflearning or school.
stockholdersareliableforthe debtsofthecorporation inthepro- or
father, not exceeding ten thousand dollars. 16. Allmoneys
portion whichtheirstockbears to the whole capital stock, Must
arisingfromfireorotherinsuranceuponanypropertyexemptfrom
be published forsix daysinsomenewspaperinthecounty where
17. Allmoneys,relief,orotherbenefitspayable
101
Proofofpublicationmustbefiled
doecp
ritom
nrtfraatse
sr
oc
on
n,
theprincipalbusinessislocated.
snoito
taropendure
roC.noitucfor
exenoelato
s orto be renderedbyanypoliceass
ia
at
ne
,o
ni
aaltbie
eff
irte
with
the
Corporation
Commission.
or1
twenty-fiveyears. CorporationmustfileinofficeofCorporationComdepartment
a
s
s
o
c
i
a
t
i
o
n
,
andanypersonentitledtoassistancetherefrom,orto
a
s
s
o
c
i
a
t
i
o
n
,
b
e
n
e
f
i
c
i
a
r
y
dat
missionanappointmentofagentwhoisabonafideresidentofthis anycertificateholder thereoforbeneficiaryundersuchcertificate.
stateforthreeyearspriorthereto, onwhomallnoticesandprocess, 18. Anyclaimfor damagesrecoverablebyanypersonbyreason
Includingsummons,maybeservedandconstitutespersonalservice. ofanylevy upon or saleunder executionofhisexemptpersonal
Chargesforincorporation: Recorder'sfees,20centsfolio. Recorder's propertyorbyreasonofthewrongfultakingordetentionofsuch
real
Recorder'sfeescertificatetocopy, property by any person, and anyjudgment recoveredforsuch
doc
fees,certifiedcopy,20centsfolio.
Theearningsoftheminorchildofanydebtoror
75 cents. Corporation Commission's fees, filing cost copy. $10.
Printers'feesperinch,publishingarticlessixdays,80cents. Corpora- theproceedsthereofbyreasonofanyliabilityofsuchdebtornot
damages. 1f9o.r the special benefit ofsuch minorchild. 20. One
tion Commission'sfees, filing proof, publishing $3.00. Corporation contracted
Commission'sfees,filingappointmentofagent.$5.00. Wherecharter halfoftheearningsofthewagesorsalaryofanypersonforhisper
provides
assessments maybelevied on sharesto par value (1907). sonalservices rendered at any timewithin thirtydaysnextpreBeforeitcantransactbusinessitmust cedingthelevyofattachment, garnishmentorexecutionwhenit
e
Corporations,
lci
.fn
eroF of Articles with Corporation Commission and appears bytheaffidavitofthedebtororotherwisethatsuchearning
erfti
iegdicopy
n,
tu
hniisfsot
en
,dsaucpcp
te
e-d
county recorder in county of principal place of business, also an arenecessaryfortheuseofthefamilyresiAdlilnag
ri
ms
ra
mt
sa
oo
ur
tr
appointmentofagentuponwhomaservicepersonaltothecorporation
21.
mentsrequiredbylawtobekeptbyanyperson,andalsoonegun
inwholeorinpartbyhim.
Allfireengines......ofanyfire
maybemade.
Corporations, Insurance. May be organized under provision tobeselected bythedebtor.
. 3All2 co
.urt2hou2ses, jails, etc. Thepropertyde
clared tobeexemptbythis
peculiarlyapplicabletoinsurancecompanies.
chaptershallnotbeexemptfromaldeunderastatute
zinagroerA.tnes
mpter
d
-apetachmentorsaleinanyactionbroughtorjudgmentrecoveredfor
Corporations, Railroad.
thepurchasepriceofsuchpropertysolongassuchpropertyremains
127
ciallyprovidingforthem.
inthepossessionoftheoriginalpurchaser.
(SeeHomestead,Liens.)
(See Banks and Banking.)
Corporations, Savings and Loan.Transferofstockshallnotbe
FraudsandFraudulentConveyances.
Agreementsmustbele
Corporation Stock, Transferof.
writingandsignedbythepartiestobecharged: 1.Byanexecutor
valid,exceptasbetweenthepartiesthereto,untilthesameisregularly
werforthedebtofhistestatororintestateout
entereduponthebooksofthecompany,soastoshowthenamesofthe oradministratortoans2.
B
y
a
p
e
r
s
o
n
t
o
a
n
s
w
e
r
f
o
r
t
hedebt,defaultof
personbywhomandtowhomthetransferismade;thenumberoftheir
3. Tochargeany4.
pers
or
nsuaploen
ar
neaaglr
ea
mteenot
madeuponconsiderationofmarriage.
Fo
of
ee
st
r
designationoftheshares,andthedateofthetransfer.
ofhisownestate.
Costs. Plaintiffs who are non-residents, or those who own no leasethereofforatermlongerthanoneyear.
miscarriageofanother.
5.
Thosewhichare
propertyuponwhich executionmaybelevied, arerequired togive nottobeperformedwithinthespaceofoneyearafterthemaking
fs
tr
,
conveyance,
security for, within ten days after order made; bonds for, must thereoef.uponany
gnmtentr, o
g Every
r a h gcie
r e f sor
nas
asir
tato
e,,realorpersonal;anysuitcommencedon
authorizejudgmenttobeenteredagainstsureties.
rotherwritinggivenwithintenttodelay,hinder,ordefraudcreditCourts. Arethe SupremeCourtoftheState,theU. S.districtcourt o
forthe Districtof Arizona; onesuperiorcourtforeachCounty,jus- ors,purchasersorotherpersons,shalltosuchpersonsbevoid. All
Thesuperiorcourtoftheseveral
ticesofthepeace,recordersofcities.
countiesisacourtofgeneraljurisdiction,bothcivilandcriminal. It ditaments,deedsofsettlementofmarriage,deedsoftrust,andmort
Itsoriginaljurisdiction gages, are void astocreditorsandsubsequentpurchasers,without
hasbothoriginalandappellatejurisdiction.
extendsto all civil cases wherethe amount involved exceeds $200 notice,unlessproperlyrecorded. Thecreditormustbeajudgment
exclusiveofinterest,andinallcasesinvolvingthetitletoorpossession creditor,andnoticemustbepriortodateofjudgmentllen. AJudg
ofrealestate. Justicecourtshavegeneraljurisdictionwhenamount mentcreditormaybeaninnocentpurchaser. Everygift,conver
incontroversydoesnotexceed$200.00,exceptwhentitletorealestate ance,assignment,transferorchargemadebyadebtorwhichisnot
uponconsiderationdeemedvaluableinlawshallbevoldastoprior
creditors, ifdebtorhadnotthenotherpropertyintheStatesuff
isinvolved. (SeeJurisdiction.)
cienttopayallhisindebtedness. Notonthataccount,however,
Creditors'Bills. Nostatutoryprovisions.
Nogiftofanygoodsandchattels
DaysofGrace. None.
Depositions. Maynowbetaken eitherupon oral examination, Ishallbevalidunlessdulyacknowledged,orprovenandrecorded,or
bywill,orunlessactualpossessionshallhavecometoandremained
voldastosubsequentcreditors.
and cross-examination or upon written interrogatories and cross withthedonororsomeoneclaimingunderhim. Fraudulentintent
interrogatotries, as
isgenerallyprovided.
Conveyanceshallnotbeadjudged
e
c (SeesSavings
e
D Thelaw
f
o
fraudulentmerelybecause notforvaluableconsideration. Ifany
and nDistribution.
communitypropertyprevails.
Theseparate esBanks.)
tate ofanintestate, personshalldoortransactbusinessasamerchantortrader,withthe
additionofthewordsagent,factor,company,or&Co.,orwordsof
whenheorsheshalldieleavingsurvivingnohusbandorwife, shall isaquestionoffactandnotoflaw.
descend asprovided. Whenanintestateleavessurviving awifeor likesignificanceorimport,andshallfailtodisclosethenameofhis
principal,orpartner,orotherpersonwhomaybeinterestedinsuch
husband another method is provided. Children of the intestate businessbyasigninletterseasytoread,placedconspicuouslyatthe
, ssistr
h t o and
r b aunts,
y t rtake
e p per
o rcappit
la.l A
erse
, uncles
placewheresuchbusinessistransacted,orifanypersonshalltransact
belongingtothecommunityestateofthehusbandandwifeshallgo
tothesurvivor,ifthedeceased spousehavenochildorchildren; if businessinhisownname,withoutanysuchaddition,alltheproperty,
thedeceasedhaveachildorchildren,hisorhersurvivingspousewill stock,moneyandchosesinactionusedoracquiredinsuchbusiness
exceptsuchpropertyasmaybeexemptfromexecution,shall,asto
.
n
e
r
d
l
i
h
c
r
o
d
l
i
h
c
u
s
o
t
e
o
g
f
l
a
h
r
e
t
o
e
h
t
d
n
a
,
f
l
a
h
e
n
o
k
a
t
e
h
T
community propertyalways passes charged with the debtsagainst thecreditorsofanysuchperson,beliableforhisdebts,andbe,inall
it. Intermarriage between man and woman to whom a child or respects, treated in favorofhiscreditorsashisproperty. Criminal
childrenhadbeforebeenborn, andrecognitionbythefatherofsuch prosecutionforfraudisprovided. (SeeConditionalSale.)
Bastardsinherit
Writmayissue: 1. Wherewritofattachment
childorchildren legitimizesthechild
orchildren.
timestatesasiflegitimate.
snartdnar
ehtomehtmorfetutatsehT
Uponaffidavitthatthedebtisjustdue,andunpaid,
(See
and
that
d
e
f
e
n
d
a
n
t
h
asnot,withinaffant'sknowledge,propertyin
Dower,
Husbandand
Wife.
providesfortheadoptionofheirs.
hisGarnishment
possessionsubje
ttoexecutionsufficienttosatisfysuchdebt,and
.c
Homestead.)
t
h
a
t
t
h
e
w
r
i
t
i
s
n
o
t
s
u
e
d
o
uttoinjureeitherthedefendantorgarnishee.
2.
hasissued.
Dower. Dowerisabolished.
3.
Uponjudgment,whenaffantmakesaffidavitthatthedefendant
Evidence. Thecommonlawruleshavenotbeencodified. Parties hasnot,withinhisknowledge,propertyinhispossessionwithinthis
S
t
a
t
u
t
e
s
Territorysufficienttosatisfysaidjudgment. Proceedingsundersubmaybeexaminedandtheothersidenotconcludedthereby.
division2requiresabondindoubletheamountofthedebt,condi
ofotherstatesandterritoriespurportingtobeprintedunderauthority tioned
that plaintiffwillprosecute the suittoeffect,andpayall
mayberead. Nooneisincompetenttotestifybecauseofreligious
C
e
r
t
i
damagesandcoststhatmaybeadjudgedagainsthimforwrongfully
Certifiedcopiesofallrecordsinterritorymayberead.
b
e
l
l
e
f
.
fiedcopiesofrecordsofallnotariesmayberead. Courtmayorder suingoutthegarnishment. Theproceedingsaredocketedandjudg
mentrenderedasifinanindependentproceeding. (SeeAttachment)
Inspectionorcopyofdocuments.
Holidays. LegalholidaysareJanuary1,February14,February
Executions. Uponajudgmentofsuperiorcourt,executionsmay
22, July4, October12, Thanksgiving,May30,December25,Arbor
beissuedtoanycounty. Lienofdatesfromlevy,andifonrealproperty,thedescriptionisendorsedonexecutionandfiled withcounty day, Labor Day, every Sunday andgeneralstateelectionday,or
recorder. Arangelevymaybemadeuponallofstockunderacertain anyspecialelectiondaythatmaybecalledbythegovernor,andany
dayappointedbythepresidentorgovernor. Anypromissorynote.
Liens.)
brandinsamemannerasuponreal estate. (SeeJudgment,
Proceedings supplemental to execution-when returned unsatisfied. bank check, bill ofexchange, acceptance, orothernegotiableinstrument,madepayableatanyfutureperiod,whichfallsdueonany
creditorisentitledtoanorderrequiringdebtortoanswerconcerning ofthesedaysmentioned,shallbeconsidereddueandcollectibleon
hisproperty, butnotelsewherethaninthecountyofhisresidence. the dayfollowing,andifJanuary1,February14,February22,July
Thirdpartiesmay,uponaffidavit,berequiredtosurrenderproperty.
October 12, December25,orMay30, andArborDay,shallfall
Courtorjudge may ordersuitbroughtto determinethedenial of 4,
upon Sunday, thentheMondayfollowingshallbeconsideredasa
owning or ofhaving property.
Writs of injunctions, attachments, replevin,and
Exemptions. Every person who isthe head of a family, and
whosefamilyresides within this state, may hold as a homestead,
exempt from attachment, execution and forced sale, real property
tobeselectedbyhimorher, whichhomesteadshallbeinonecom- lpergoahlibihtoiloinday
maybeissuedandservedon.
.
pactbody,nottoexceed invaluefourthousanddollars,uponfiling
affidavit designating such homestead in the Office ofthe County
B A N K I N G
Homestead.
Exemptions.)
A N D
C O M M E R C I A L
Deedto,mustbesignedbyhusbandandwife. (See
H u s b a n d a n d Wife.
All property, both real and personal, of
t h e h u s b a n d or wife, o w n e d or claimed by h i m o r h e r beforemarrlage,andthat acquiredafterwardbygift,devise, ordescent,as also
theIncrease, rents, Issues,and profitsofthesame, shallbehisorher
separateproperty. Theearningandaccumulationsofthewifeandher
minorchildreninhercustodywhileshehaslived o r m a y liveseparate
andapartfromherhusband,shallalsobetheseparatepropertyofthe
wife. All property acquired by either husband or wife during the
marriage, exceptthatwhichisacquired by gift, devise, ordescent,or
e a r n e d b y thewifeandherminorchildrenwhileshehaslivedormay
liveseparateandapartfromherhusband,shallbedeemedthecommon
propertyof t h e h u s b a n d a n d wife, a n d during the coverture m a y be
disposed of by the husband only. Married women of the age of
L A W S -
ARIZONA
1369
Partnerships using fictitious name may file certificate showing
namesofpartnerswithcountyrecorders. Foreignpartnershipsmay
doso.
PowersofAttorney. Nospecialstatutoryprovisionsrelativeto.
Toconfessjudgmentmustbeexecutedsubsequenttomaturityofdebt
confessed, a n d must be acknowledged. To convey lands or release
mortgages should beacknowledgedasdeeds,and recorded.
ProbateLaw. (SeeSavingsBanksandAdministrationofEstates.)
Protest. Liability of drawer or indorser of bill or note m a y b e
fixedby regular protestandnotice,etc.,according totheusages a n d
custom of merchants. (See Billsand Notes.)
Records. Thesuperiorcourtsofeachcountyarecourtsofrecord.
T h e recorder's office in each county relates to titles of real estate
and personal property, and probably record instrument therein is
twenty-oneyearsandupwardsshallhavethesamelegalrightsasmen
notice.
oftheageoftwenty-oneyearsandupwards, excepttherighttomake
contractsbindingthecommonpropertyofthehusbandandwife; and
all b r a n d s a n d m a r k s of live stock.
shallbe subject to the s a m e legalliabilities. (See Dower. Convey-
debtorsorsuccessorsininterest; anylienholder mayredeemwithin
three months thereafter by serving and filing statutory notice, by
ance.)
Injunction. Is Issued, where party is entitled to reliefand
restraint, is requiredofsome prejudicial act: where, pending litigation,anactisdone which tends to renderjudgmentIneffectual, a n d
whenapplicantis entitledunderprinciplesofequity. Undercertain
conditions may be granted ex parte at chambers or by consent.
BondmaybefixedbyJudgeandapprovedbyclerk,excepttorestrain
collectionofmoneyjudgment, w h e n i t m u s t b e d o u b l e t h e a m o u n t o f
suchjudgment.
Injuries-Personal. Employer's Liabilityand CompulsoryCom-
pensation laws in force.
Insurance. (See special chapter pertaining to Insurance.)
Interest.
Maycontract,inwriting, foranyrateof, notexceeding
10percentperannum. Anyrateexceeding thisisusurious. When
no express contract, on bond, bill, note, or Instrument of writing.
orjudgment, formoneylent, ordueon settlementofaccountsfrom
dateofascertained balance, andmoney receivedforuse ofanother,
interestiscomputedat6percentperannum.
Judgments. Judgmentsofsuperiorcourtsbecomeallenuponall
realestateofjudgment debtorin the county as soonasenteredand
docketed Uponfilingwiththeclerkofthesuperiorcourtatranscript
o f J u d g m e n t f r o m justicecourt orofsuperiorcourt ofanothercounty.
t h e s a m e b e c o m e s a lienonallreal estateofjudgment debtorinthe
county. No execution can be issued on a n y judgment after the
expirationoffiveyearsfromthedateofitsrenditionandentry,unless
suchJudgmentberevivedbyscirefaciasoractionfordebtbebrought
thereon within such five years.
Judicial B o n d s . (SeeBonds.)
L e v y . (See Executions.)
Licenses. For gambling prohibited.
Liens. Allpersonswhomaylabororfurnishmaterialsintheconstructionor repairing ofanybuilding, superstructure, canals, dams,
mines, orother improvement, orcutscordwood, shallhavealienon
thesame,andincaseofbuildingsandsuperstructures, onthelotof
landwhereon the sameis situate and connected therewith. To fix
andsecurethellen,thepersonperforminglabororfurnishingmaterial
must,withinsixtydaysafterthecompletionofsuchlabororthefurnishingofmaterials,filehiscontractintheofficeofthecountyrecorder
wherethepropertyissituate. Ifthecontractbeverbal.aduplicate
copyofthebillofparticulars shouldbemade, underoath, andone
deliveredto the recorderandfiledforrecordandtheotherfurnished
thepartyowing thedebt, orhisagent. Laborers' andlikeliensare
preferredto all subsequent liens, mortgages, and incumbrances, and
suchaslienclaimanthadno notice. Sulttoforeclosesuchliensmust
becommencedwithinsixmonthsafterfilingthesameintherecorder's
office. Incaseofthelevyofwritofattachmentorexecution, clerks,
laborers, andemployesofdebtors haveapreferenceclaimforwages
forservices performed sixty daysbeforelevyof writ, not exceeding
$200, upon filing notice ofclaim unpaid with creditor, debtor, and
officer executing writ Proprietors of hotels, boarding houses, and
lodginghouses havespeciallienonallproperty orbaggagedeposited
withthembyguestsfor priceofguests' entertainment. Agisterand
ilverymanhavelienbystatute. (SeeJudgment,Mortgage.)
Limitations. To recoverrealtyagainstpersoninpeaceableand
adversepossessionundercoloroftitle,threeyears; againstsuchpossesstonwherepersonpaystaxesandhasdeedrecorded,fiveyears, otherwisetenyears; torecoverlotsincityorvillageagainstpersonhaving
recordeddeed,and pays taxes, fiveyears; wherepartyinpossession
clatmsby right ofpossession only, two years. Personal ActionsOneyear: Personal Injuries, malicious prosecution, false imprison-
ment, libel, slander, seduction,breach ofpromise. Actions forrelief
ontheground offraud; mustbe brought within one year fromdiscovery of fraud. T w o years: Trespass to property, detention or
conversionofpersonalpropertytoownuse,takingandcarryingaway
goods and chatteis; and injuries to person where death ensues, to
accrue fromdate ofdeath. Three years: Actions for debt not in
writing; onstated or open accounts otherthanmutualbetweenmerchantsor their factors and agents; all accounts, except as between
merchantsand factors and agents,limitationsrunfromdateof each
itemofdelivery. Fouryears: Forpenaltiesordamagesonanybond
toconveyrealestate; betweenpartnersforsettlementofpartnership
accounts; on mutual or current accounts between merchants, their
factorsoragents, toaccruefromcessationofdealings; uponjudgment
or instrument without the Territory; debt evidenced by writing
withintheTerritory; bondsofexecutors,administrators,orguardian,
afterdeath,removal,etc.; specificperformance;tocontestwillafter
discoveryoffraud; andwherenoprovisionisotherwisemade. Five
years: Ondomesticjudgmentwhereexecutionhasbeenissuedwithin
oneyear after rendition.
Minesunpatentedarerealestateforthepurposeofinheritanceand
conveyance. Locationrequiressevenmonuments,threeateachend,
andoneatdiscovery, inwhich noticeis to beplacedondiscovery;
titleworkconsistingof ashaft4x6x8feetdeep,orits equivalent
inanopencutsothatmineralinplaceisdiscovered8feetfromthe
doneand notice recorded withinthreemonths, and
surfacemust be
annual assessment work amounting to $100, maintained each year
thereafter, until patent is ordered.
Minors. (SeeSavingsBanks.)
Mortgages. Mortgage maycontainpowerofsale. Whetherit
doesornot, mortgagemaybeforeclosedbysuit
insuperiorcourt.
Fallureofmortgageetolawfullyreleaseasatisfiedmortgageforseven
daysafterdemandfortherelease,subjectshim toliabilityfor$100
andactual damages. Mortgages on real estateareexecuted, acknowledged, and recorded as conveyances ofrealestate. (SeeConveyances, ChattelMortgage,Acknowledgments. Redemption.)
Notary Public. Inallcertificatesandacknowledgmentsthedate
ofexpirationofcommissionmustbestated,as"commissionexpires-"
Nocertificateofholdingoffice,etc.,isrequiredwhennotaryactsin
foreignstateorcountry.
NotesandBillsofExchange. (SeeBillsandNotes.)
T h e m i n u t e s o f t h e SanitaryLive StockBoardarenotice of
Redemptions.
F r o m sheriff or judicial sales, six months, by
servingnoticeînfivedaysafterendofsaldsixmonths. T h e s a m e r u l e
applies toforeclosureof mortgagesandtrustdeedswhetherby court
orunderpowers ofsale.
Replevin. Forpossession ofspecific personal propertywhichhas
notbeenseized u n d e r a n y process, execution or attachment against
thepropertyoftheplaintiff.
Sales. T h e "uniform sales law" is in force.
Seals. Addition oromission of seals or scrollsto instruments of
writing in no w a y affect the force a n d validity of the instrument.
Instruments executed by corporations must have a corporate seal
attached.
Service. Allsummonsuponpersonsshallbepersonal,orbyleaving
a c o p y with copy of complaint at the usual place. of residence of
defendant, w i t h a m e m b e r o f h i s f a m i l y overtheageofsixteenyears;
against Incorporated city, or town, or village; u p o n major, clerk.
secretary, or treasure; against Incorporation or joint stock association, u p o n president, secretary, or treasurer, director or local agent
representing c o m p a n y , o r b y l e a v i n g a c o p y of s u m m o n s a n d complaintatthe principal officeduring office hours; u p o n a n y rallroad,
telegraph, or express company, or any agent ofsuch company who
residesinormaybefoundinthecountywheresuitisbrought; upon
domesticcorporationbyservingonstatutoryresidentagent,andwhere
thereisno officer upon w h o m servicecanbe m a d e i n t h e State, ser-
vicemaybehadbydeliveringduplicatecopiesofsummonsandcomplaint to the secretary of the Corporation Commission, a n d upon
foreigncorporation by delivery to statutory agent. Personal service
o f s u m m o n s m a y a l s o b e h a d b y serving upondefendantbyregistered
mail, asprovided in statutes.
Sults.
(SeeActions.)
Taxes. Aside from those levied by legislative enactment for
specificpurposes, asforthe constructionand maintenance ofpublic
institutions, etc., StatetaxesareleviedbytheStateBoardofEqualization; county taxes by the boards of supervisors of the several
counties,and citytaxesbythecommoncouncilsofthevariouscities.
Railroads are valued forthepurpose oftaxationby the State Board
of Equalization. Other property is valued by county assessors.
T h e assessing of value begins in February of each year.
Taxes
arelevied on the third Monday ofAugust in each year. The lien
attaches on the first Monday of February in each year. Taxes
b e c o m e due not later than the third M o n d a y I n September, a n d
become delinquentif not pald on the third Monday of December.
The penalty for delinquency is 5 per cent. Within 60 days after
delinquencyaction may be commencedindistrictcourt to foreclose
delinquentrealestatetaxliens,and propertysold asunderexecution.
Personal property taxis collected bydistress warrant. Taxesafter
delinquency draw interest at one per cent per month after action
commenced to foreclose tax lien penalty of twenty-five per cent is
added.
Thereisdoubtabouttherighttoredeemfromtaxsales.
Warehouses. Personal property in, may be sold for unpaid
charges.
Transfer of Corporation Stocks. (See Corporations.)
Wills. Willsmustbeinwriting,signedbythetestator,orbysomeoneforhim,inhispresenceandbyhisdirection,andmustbeattested
bytwoormorecrediblewitnessesabovetheageoffourteenyears, in
thepresenceofeach otherandthetestator. Whenthewilliswholly
writtenby the testator, no witnesses are necessary. Nun-cupative
wills m a y be m a d e w h e n property willed does not exceedin valus
$50, unlessitbeprovedbythreecrediblewitnessesthat the testator
calledonsomepersontotake noticeandbeartestimony thatsuch in
hiswill, a n d that the testimony, orthe substance thereof, was committed to writing within six days after the making of such will; in
such casetheamount willedisnot limited. Wills are revocable by
subsequent will, codicil, ordeclarationinwriting,executedwith like
formalitiesasinexecutionofwill,orbytestatordestroying,canceling,
orobliterating thesame, orcausingittobedoneinhispresence, or
bysubsequentmarriage, andnoprovisionismadeforwife. Foreign
wills,theprobatewhereofisdutyauthenticated, maybe probated
here. Contestsofwillscannotbeinitiatedafteroneyearfromdate
ofprobating.
1370
BANKING A N D COMMERCIAL L A W S - A R K A N S A S
S Y N O P S I S OF
T H E
L A W S
OF
RELATING
BANKING
A N D
A R K A N S A S
TO
COMMERCIAL
USAGES.
RevisedbyMANNING, EMERSON& MORRIS, AttorneysatLaw,Little
Rock. (SeeCardinAttorneys' List.)
Accountsverifiedbytheplaintiffas justandcorrect provethemselvesinsuitsthereonunlessdeniedunderoath,
Acknowledgments m a y be taken within the State before the
supremeorcircuitcourt, orajudgethereof, orclerkofanycourt of
written on another paper than the bill, it shall not bind the
acceptor except in favor of the person to whom such accentance 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 canbe protestedfor
non-acceptance. Notwithstanding the above provisions any one
promisingtoacceptabillisliabletoanypersontowhomapromiseto
acceptitmayhavebeenmade; andwho.onthefaithofthepromise,
h a s d r a w n a n d negotiated the bill. A n y person onwhomabillis
drawn,andtowhomthesamemaybedeliveredforacceptance,who
shalldestroyitorrefusewithintwenty-fourhoursorsuchtimeasthe
holdermayallow to return the bill acceptedornotaccepted tothe
holder,shallbedeemedtohaveacceptedthesame. Thefollowingate
theholidays: Sunday, Christmas, FourthdayofJuly,Washington's
Birthday, Lee's Birthday, January 19th, and thefirst Saturdayof
Marcheachyear,ArborDayandThanksgivingDay
Whenthebills
becomedueonanyofthesedays,theyarepayablethenextsucceed.
ingbusinessday. Instrumentsfallingdue (or becomingpayableon)
Saturdayaretobepresentedforpaymentonthenextsucceedingbusi
nessday:exceptthatinstrumentspayableondemandmaybepresented
forpaymentbefore12o'clockonSaturdayifitisnotaholiday. Thefol
lowingdamagesareallowedwhereabillisprotestedfornon-acceptance
ornon-payment:
IfthebillisdrawnonanyplaceinthisState,2per
record, ora justice ofthe peaceor notarypublic;elsewhere inthe
UnitedStatesbeforeanycourt havingaseal, orclerk ofsuchcourt,
notary public, mayorhaving a seal, or commissioner of Arkansas;
cent:ifpayableinthe states ofAlabama, Louisiana, Mississippi
cityhavingaseal, UnitedStatesconsul,oranyofficerauthorizedby
thelawsofsuchcountrytoprobateconveyancesofrealestate,pro-
cent. IfthebillbedrawnbyanypersonatanyplacewithinthisState,
attherateof2percent; ifdrawnbyanypersonatanyplacewithout
thisState, butwithinthe limitsofthe UnitedStates,6percent;if
drawnbyanypersonwithoutthelimitsoftheUnitedStates,10per
cent. Theholderofanybillprotestedfornon-paymentornon-acceptanceisentitledtocostsofprotestandinterestattherateof10percent
perannumontheamountofthebillfromdateofprotest. Theterm
withouttheUnitedStatesbeforeanycourthavingaseal, mayorofa
videdhehasaseal.
Actions. Suitsareprosecutedunderareformed codeofcivilproseduredifferingfromthe New Yorkcodechiefly inmaintaining the
distinction betweenlawand equity.
AdministrationofEstates. Executorsandadministratorsmust
Tennessee,Kentucky,Ohio,Indiana,Illinois,orMissouri,oranypoint
ontheOhioRiver,4percent; ifdrawnonanyotherplaceintheUnited
States, 5percent; ifbeyondthe limitsoftheUnitedStates,10per
beresidentsoftheStateandmustgivebondindoublethevalueofthe BillofExchange includesalldraftsorordersdrawnbyonepersonon
property. Foreignexecutorsandadministratorscanmaintainactions anotherforthepaymentofasumofmoneyspecifiedtherein. Bills
Inourcourts. Claimsarepaidinthefollowingorder: First, funeral and notes given for patented machines, implements, substance,or
expenses;second,expensesoflastillness;third,judgmentswhichare Instruments ofanykind, giventoanycitizenofthisState,arenot
lensonthelandsofthedeceased;fourth,demandspresentedwithin commercialpaper, unless executed onaprintedform, andshowing
sixmonths;fifth,demands presentedwithinoneyear. Alldemands
forwhatconsideration they were executed. Thisappliestopatent
notpresentedinoneyeararebarred. Demandsmustbeauthenticated rightsandrightstouseanypatentedthingofanykind. Butthis
byanaffidavittothe effect thatnothinghasbeenpaidordelivered provisiondoesnotapplytomerchantsanddealerswhosellpatented
towardtheirsatisfaction except whatiscreditedthereon, and that thingsintheusualcourseofbusiness. Allblankassigmentsaretaken
thesumdemanded,namingit.is justlydue. Demands must firstbe
tohavebeenmadeonsuchdayasshallbemosttotheadvantageof
presentedtotheexecutororadministrator,andifdisallowedbyhim thedefendant. Inother respects the general rules ofcommercial
maybepresentedtotheprobatecourt, orsueduponinanycourt of lawapply.
competentjurisdiction. Notes and debts secured by mortgages or
Bills ofLading. (SeeWarehouseReceiptsandBillsofLading.)
deedsoftrustmustbe probatedas anyother claim,andifnotpreCollateralsare governedbythelawmerchant.
sentedto the executor or administratorwithinoneyearafterapContractstouching commercialmattersaregovernedbythelaw
pointment,are
barred
by
the
statute
of
non-claim
ofone
y
e
a
r
.
Whenthenoteordebtisbarredthiscarrieswithitabarringofthe m e r c h a n t .
mortgageordeedoftrustgiventosecurethenotesordebts."
Conveyances m a y b e eitherwitnessed bytwowitnessesorac
AffidavitsinthisStatearemadebeforeajudge,justiceofthepeace.
knowledged. (SeeAcknowledgments.) Ifwitnessedtheyareproved
notarypublic, orclerkofthecourt;withouttheStatebeforeajudge. bytheoathoftwowitnesses,andarethenentitledtorecordasthough
mayor, notarypublic, justice of the peaceorcommissioner for this acknowledged. Dowercanberelinquishedonlybythewifejoining
State.
Aliensmayholdandtransmitpropertyinallrespectsasresidents.
Arbitration. Controversiesmaybesubmittedtoarbitration,and
theawardofthearbitratorsisfiledincourt,andissubjecttoreview
onequitableprinciplesonly,andnotformattersofform. Whennot
setasidetheyareenteredofrecordandbecomethejudgmentordecree
4
ofthecourt.
Arrest. Defendants m a y be arrested for debt only when the
plaintifffilesanaffidavitchargingthatthedebtwasfraudulentlycontracted;thatitisjust,givingitsamount,andthathebelievesthatthe
defendantisabouttodepartfromtheState,and, withintenttodefraudhis creditors, has concealed or removed from the State his
propertyorsomuchthereofthattheprocessofthecourtafterjudgmenticannotbeexecuted;orthatthedefendanthasmoneyorsecurltiesinthepossessionof himselforofothersforhisuse,andisabout
todepartfrom the Statenotleavingsufficient property therein to
satisfytheplaintiff'sclaim. Bondmustbegivenconditionedtopay
thedefendantalldamagesthathemaysustainifwrongfullyarrested.
Assignments for the BenefitofCreditors may be general or
partial,withorwithoutpreferences,andwhereallthedebtor'spropertyisconveyed,mayexactreleasesasaconditionofpreference. The
assignee must fileanInventoryofthepropertyassignedandgivea
bondconditionedthathewillexecutethetrustconfidedtohim,sell
thepropertytothebestadvantageandpaytheproceedstothecreditorsmentionedintheassignmentaccordingtoitsterms,andfaithfully
performhisdutiesaccordingtolaw. He mustsellwithin 120days
allpropertyexceptthechosesinaction,whichheisrequiredtocollect,
thesaletobeatpublicauctionafterthirtydays'notice. Assignments
arevitiated by thefraudof theassignoraloneorbyanyprovision
varyingfrom therequirements ofthestatute. Attacksuponthem
aremade by proceedings inequity, and,if theyaresetaside, the
proceedsaredistributedequallyamongallthecreditors. Assignees
closeuptheiraccounts underthedirection ofthechancery courts.
Corporationscannotprefercreditors
Attachments m a y b e s u e d out where thedefendantisaforeign
corporationornon-resident, or has beenabsentfrom the Statefour
months, orhasleftthe Statewithintenttodefraudhis creditors, or
hasleftthecounty ofhis residencetoavoidtheserviceofsummons,
orconcealshimselfsothatsummonscannotbeservedonhim, or is
abouttoremoveor hasremoved amaterial partofhispropertyout
oftheState,notleavingenoughtosatisfyhiscreditors, orhassold.
conveyedorotherwisedisposedofhis property, orsufferedittobe
Boldwiththefraudulentintenttocheat,hinder,ordelayhiscreditors,
ThewifemayconveypropertyacquiredsinceOctober
thehusband.
30,1874,bydeedasasinglepersonwithoutherhusbandjoiningher.
orbyjoiningwithhimintheformabove. Thewifemay convey by
powerofattorneyandmakeexecutorycontractsofsale. Deeds
whichhavebeenrecordedandareproperlyacknowledgedprovethem
prescribedbythestatute, suchastheomissionofthewords"con
sideration" or "purposes,"makes theacknowledgmentandrecord
void; butstatuteshavebeenpassedfromtimetotimecuringdefec
tiveacknowledgmentspreviouslymade. Suchastatutewaspassed
selves. Anysubstantialdeparturefromtheformofacknowledgments
in1907. Anew CurativeActwaspassedandapprovedFebru
a r y 10, 1911.
Corporationsareorganizedonlyundergeneralincorporationlaws.
Businesscorporationsmustconsistofnotlessthanthreepersonswho
shallelectaboardofdirectors. Thepresidentandsecretaryaretobe
electedbytheboardandthepresidentmustbeamemberofit. The
secretaryandtreasurermustresideandkeepthebooksofthecom
panywithintheState. Thearticlesofassociationmustbesignedby
thepresidentandamajorityofthedirectors,andmustbeaccom
paniedbyacertificatesignedinalikemannerandsworntobythe
presidentandamajorityofthedirectors,settingforththepurposeof
thecorporation,theamountofitscapitalstock,theamountactually
paidin,thenamesofitsstockholdersandthenumberofsharesheid
byeachrespectively,andthearticlesandcertificatemustbefiledin
theofficeoftheclerkofthecountyinwhichthecorporationisto
transactbusinessandthenwiththeclerk'sendorsementintheoffice
ofthesecretaryofState. Thestockcanbetransferredonlyuponthe
company'sbooks,andarecordofthetransferhastobedepositedwith
thecountyclerkinordertobevalidasagainstcreditorsofthetrans
feror. Thecorporationhasalienonitsstockfordebtsduefromthe
stockholders. Thepresidentandsecretaryarerequiredtofilewith
thecountyclerkanannualstatementofitsfinancialcondition,and
incaseofafalluretodosobecomeliableforitsdebts. Ifthedirec
torsdeclareadividendwhenthecorporationisinsolventtheybecome
liableforallthecorporatedebts. Anycorporationwhichisinsolvent
orhasceasedtodobusinessmaybewounduponthesuitofany
creditororstockholderbyadecreeofthechancerycourt. Prefer
encesbyinsolventcorporationsareforbidden. Sharesofstockarein
denominationsof$25or$100. Beforeanycorporation,foreignof
domestic,candoanybusinessinthisState,anannualfranchisetax
mustbepaidtothe State Treasurer,to-wit: One-fifteenthofone
percenteachyearupontheproportionoftheoutstandingcapital
stockofthecorporationrepresentedbypropertyownedandusedin
businesstransactedinthisstate.
Everycorporationdoing businessforprofitandorganizedasa
mutuallife,fire,accident,surety,healthorotherinsurancecompany
nothavingacapitalstockandnotorganizedforcharitablepurposen
shallpayanannual taxof$100.00.
Allforeignordomesticinsurancecompanies,ofwhatsoevernature,
orisaboutsotodo. Itisobtained by filinganaffidavitstating the
natureoftheplaintiff'sclaim,thatitisjust, itsamountandtheexistenceoftheground,andbygivingbondconditionedtopayalldamages
thedefendantmaysustainiftheattachmentiswrongfullysuedout.
Thedefendantisallowedtotraversetheattachment,andtheaffidavit
andtraverse then standas pleadings uponwhich the issue is tried.
Iftheattachmentisdissolved,thedefendantmayhaveanassessment
ofdamages uponthe bondin the samesuit. Persons claiming the
attachedproperty m a y interpleadinthesameaction. Attachments
maybesuedoutbeforethedebtisduewherethedefendanthas sold
conveyed,orotherwisedisposedofhisproperty, orpermittedittobe
soldwiththefraudulentintenttocheat, hinderordelayhiscreditors,
doingbusinessinthisstateandhavinganoutstandingcapitalstock
oflessthan$500,000shallpayanannualtaxof$100;andsuchcom
panieshavingacapitalstockof$500,000ormoreanannualtaxof
$200,thistaxbeinginlieuofthetaxonthecapitalasprovidedin
other cases.
Everyinvestmentcompany,foreignordomestic,exceptNations!
inghiscreditors.
tracts,bondsorothersecuritiesofanykindorcharacterotherthan
B a n k s . Bankingmaybecarriedonbyindividualsorbycorporationsorganizedunderthe general incorporation lawofthe State, or
bynational banks. The Statelaws prescribeno special regulations
bondsofthe United States,orofsomemunicipalityauthorizedto
issuebondsofthe State,andnotessecuredbymortgagesonreal
estatelocatedintheState,orsellbuildingstockorloanInvestments
shallfileintheofficeoftheBankCommissioner,togetherwithafee
instrumentsLawwentintoeffectonApril22,1913.
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whichitproposestotransactbusiness;acopyofallcontracts,bonds
orotherinstrumentswhichitproposestomakewithorselltoits
orissotodo, orisabouttoremovehisproperty,ora materialpart
thereof,outoftheStatewiththeintentofcheating,hinderingordelay-
forbanking. Officersandemployesofbanksarecriminallyliablefor
making falsereports,andforreceivingdepositsknowingbanktobe
Insolvent.
Exchange and Promissory Notes. The Negotiable
Bills.
Nopersoncanbechargedasanacceptorofanybillof exchange
unlesshisacceptanceshall be inwriting. Ifthe acceptanceis
b
anksandcorporationsnotorganizedforprofit,incorporatedorunin
corporated,whichshallsellornegotiatethesaleofanystocks,con
contributors; astatement showingnameandlocationofcompany
andanitemizedaccountofitsactualfinancialconditionandanyother
such information which the Bank Commissioner may require;if
suchcompanybeaco-partnershiporunincorporatedassociation,it
BANKING AND COMMERCIAL L A W S - A R K A N S A S
1371
Interest. Thelegalrateofinterestis6percent,butpartiesmay
shallalsofileacopyofitsarticlesofco-partnershiporassociationand
allother papers pertaining to itsorganization; ifitbean Arkansas
corporation it shallfile a c o p y ofitsarticles ofincorporation, con-
excess of 10 per cent forfeits the debt. In computing the interest
stitutionand by-lawsandallother papers pertainingto its organiza-
commissionspaidtotheagent ofthe lenderarecounted as interest.
tion; ifitbeorganizedunderthelawsofanyotherstateorterritory
orgovernment,incorporatedorunincorporated,itshallfileacopyof
thelawsofsuchstateorgovernmentunderwhichitexistsoris incorporated, and also a copy of its charter, articles of incorporation,
constitutionand by-laws and other paperspertaining to its organi-
Whereusury ischargedtheborrowermaygointoequityandhavethe
debtandsecurities cancelledwithout tenderingtheamount lawfully
due. Judgmentsbearthesamerateofinterestastheobligationsued
zation.
debtorinthecountywhererenderedforthreeyears. Thelienmaybe
T h e B a n k Commissioner shall examine all such papers a n d m a y
admitor reject suchcompany inhis discretion; acompanyrejected,
orwhoserighttodobusiness isrevokedbytheBankCommissioner,
may,withintwentydays, appealtothechancerycourtofanycounty
inthestatewhereitsprincipalofficeislocatedorprincipalagentresides.
I f i t b e foundthat the refusal or revocation wasjustified, the cost
shallbepaidbythecompany; otherwisebythestateasprovidedby
statute.
Anyindividual orpersons, co-partnerships,corporation,companies
or association, domestic or foreign, which shallsellany building or
investment contractsor like securities onwhich paymentsaretobe
madefromtimetotime,shallfirstenterintoabondwiththeStateof
Arkansas in the s u m of$20,000 for the faithful performance of its
contract.
ForeignCorporationsshall,beforedoing businessinthe State, by
Itspresident file i n t h e office of the secretary of State a certificate
contractinwritingfornotexceeding10percent.
Interestexactedin
on. Judgments against counties b e a r n o interest.
J u d g m e n t s (See Interest) are liens u p o n the real estate of the
r e n e w e d a n d continued for three years by scire facias. Judgments
o f t h e U n i t e d S t a t e s a n d o t h e r c o u r t s c a n b e m a d e l i e n s o n l a n d s in
countiesotherthanthatwheretheyarerendered byfiling acertified
copyintheofficeofthecircuitclerk.
Jurisdiction. (SeeCourts.)
Liens. Mechanics, builders, artisans, laborers, and othersdoing
anyworkuponorfurnishinganymaterialforanybuildingorerection
underany contractwith the owner orhisagent, contractororsubcontractor, shallhaveforsuchwork or material furnishedalienon
thebuildingorimprovementtogetherwiththelandonwhichitstands
totheextentofoneacreifinthecountry; ifinacitythelotorland
upon which the erectionis situated. Hotel keepers have lien on
baggageand personaleffectsofguests. Liverymanhavelienonall
stockandpropertyleft intheircare.
Limitations.
Suits for the possession of real estate must be
underthesealofthecompanynaminganagent,whoshallbeacitizen
brought within seven years, saving to minors, married women, and
o f t h i s S t a t e u p o n w h o m s e r v i c e o f p r o c e s s c a n b e m a d e . Thecertificate shall statethe principal place ofbusiness of the corporation:
lunaticsthreeyears aftertheirdisabilitiesareremoved. Actionsfor
recovery oflands sold atjudicial salesmust be brought within five
years, saving to minors a n d lunatics three years after removal to
acertifiedcopy ofits chartertogetherwith astatementof itsassets
andliabilities, a n d t h e a m o u n t of itscapital employed inthis state
intheofficeofthesecretary of State,andintheofficeofthecounty
disabilities. Actions for the recovery of lands held under taxtitle
andserviceontheagentshallbindit. Thecorporationmustalsofile
whereit opens anoffice, and mustpaysamefeesasarerequiredof
h o m e corporations. It m u s t also file a resolution of its board of
directorsconsentingthatserviceofprocessonanyofitsagentsoron
thesecretaryofStateshallbeagoodservice. Ifitsuesinthefederal
court or removes a suit there without consent ofits adversary, its
right todobusinessisrevoked. Doingbusinessherewithoutcompllance with t h e l a w subjectsthecorporation to afine of notlessthan
$1,000. These requirements do not apply to railroadortelegraph
companiesthathadbulltlinesintheStatepriorto Feb. 16, 1899. If
a n y corporation fails to appointan agent, service ofprocess o n t h e
auditorofStateshallbindit. Noforeigncorporationcansueonany
contract madeinthis Stateuntiltheseprovisionsarecompliedwith.
Courts. The supremecourt isheldat Little Rockandhasjurisdictionofappealsfromthecircuitandchancerycourts. Inallcountiesseparatecourts ofchanceryhavebeenestablished. Theestates
ofdeceasedpersonsareentrusted exclusivelyto the probatecourts,
withrightofappeal to thecircuitandthencetothesupremecourt.
Claimsagainstcountiesareheardbythecountycourt,asalsomatters
touchingpaupersandthelike Thejustices'courtshavejurisdiction
ofmatters of contract not exceeding $300, a n d matters oftortnot
exceeding $100. T w o terms ofthecircuit and chancery courtand
fourofthecountyandprobatecourtsareheldineachcountyperyear.
Deeds. (See Acknowledgments and Conveyances.)
Depositionsmaybetakeninthe Statebeforeanyjudgeorclerkof
acourtofrecord,justiceofthe peace, mayor, ornotarypublic; out
oftheStatebeforeacommissionerforthisState,judge,justiceofthe
peace, mayor,notary public,orpersoncommissionedby thecourt or
byconsentofparties.
mustbebroughtintwoyears. Actionsforforcibleentryanddetainer,
oncontracts not in writing, for trespassand forlibel, within three
years. Actions for criminal conversation, assaultand 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. Inall
cases, exceptactions forthe recovery oflands, minorsand lunatics
have, afterremovaloftheirdisability,thestatutoryperiodinwhich
to sue. Verbal promises or acknowledgmentsdo not take a claim
out ofthestatute. One year isallowed afterdismissal ofasuit in
which to beginanewaction.
No personcanavailhimselfofadis-
abilitywhichdidnotexistatthetimetherightofactionaccrued. No
e n d o r s e m e n t o f p a y m e n t m a d e b y the payee oronhisbehalfis sufm-
cientprooftotakethecaseoutofthestatute.
LimitedPartnershipsmayconsistofoneormoregeneral,andone
ormorespecialpartners.
Thelatterofwhomshallconstituteincasha
specificamountashisshareofthe capital,beyondwhich he isnot
llableforfirm debts. Those forming such partnership must make
andfileinofficeofcircuitclerkofcounty,andprincipalplaceofbusiness, a certificateshowing nameoffirm, names of partners, distinguishing between general and special, nature of business, amount
ofcapitalcontributedbyeachpartner,periodofcommencementand
termination of partnership. Business to be conducted by general
partnersand suitsbrought by oragainst them.
Married W o m e n . The property, real and personal, of married
womenremainstheirseparateestateaslongastheychoose,andmay
be devised or conveyed without the husband's assent, and is not
subject tohisdebts. Ifshedies withoutmaking anydispositionof
herrealestate,heisentitledtocurtesy. Shemaycarryonanybusinessorperformanyservicesonherownaccount,andherearningsare
Descentsand Distributions. Propertydescendstochildrenand
theirdescendantsinequalparts; ifnochildren,thentofather,thento
mother, thentobrothersand sisters andtheirdescendantsinequal
parts, a n d in default of such to the nearest lineal ancestor or his
descendantsinequalpartsperstirpes. Illegitimatechildreninherit
andtransmitaninheritancefromthemotherinthesamemanneras
iflegitimate. If the parents of illegitimate children subsequently
Intermarryandthefatherrecognizesthemashis,theyshallbedeemed
legitimate. Indefault ofheirs the wholepropertygoestohusband
orwife,andintheirdefaulttotheState. Iftheestateisancestralit
goes to theblood of the ancestorfrom w h o m i t w a s derived.
Rela-
tions of the half-blood inherit equally. Heirs take as tenants in
common.
Dower. Where therearechildrenthe wifetakesone-third ofthe
husband'spersonalestateabsolutely andone-third ofthe realestate
ofwhichhewasseizedatanytimeduringthemarriage,forlife. Where
therearenochildrenshetakesinanewacquisitionone-halfofthereal
andpersonalestateabsolutelyasagainstheirs,orone-thirdabsolutely
atagainstcreditors. Ifitisanancestralestate,shetakesone-halffor
life against heirs and one-third forlife against creditors.
Executions from the circuit court are returnable in sixty days.
thosefrom justices' courts within thirty. They maybestayed for
sixmonthsbygivingbond. Theyareallenonthepropertyofthe
defendantinthecounty from the time they come to the officer's
hands. The officer before levying on personal property, the title
towhichisdoubtful,mayrequiretheplaintifftogivehimanindemnifyingbond,andthensuitmustbe brought bytheclaimantupon
thebond. Thedefendantandotherjudgmentcreditorshaveoneyear
inwhichtoredeemfromthe saleofreal estate. Incase thewrit is
returnednullabonatheplaintiffmayproceedbybillofdiscovery
againstthedefendantandexamine him on oath, andenforceasurrenderofconcealedpropertybyimprisonment.
Exemptions. Unmarriedpersonsareentitledto$200andmarried
property as exempt against debts by contract. Personswho are
personsandheads offamilies to $500 in selected articles ofpersonal
marriedorheadsoffamillesareentitledtoahomesteadasagainstall
debts,exceptthepurchase-money,specificliens,laborers'andmechanThehomestead
Ics'liens,taxesandclaimsfortrustfundsconverted.
inthecountryisnottoexceed 160acres,andintownnottoexceed
oneacre, nor tobeworth morethan $2,500,butthecountry homesteadisnottobereducedtolessthan80acresnorthetownhomestead
tolessthanone-fourthofanacre,regardlessofvalue. Thehomestead
goestothewidowandminorchildren afterthehusband'sdeath. The
homesteadcanonlybeconveyedbydeedinwhichthewifejoinsand
whichisacknowledgedbyher,andifthehusbandneglectstoclaim
thehomesteadthewifemaydoso.
Fraud. The Englishstatuteoffraudulentconveyanceshasbeen
hers,andshe maysuealoneinrespectofherseparateproperty. She
canbindherselfbycontractonlyinreferencetoherseparateestateor
business. Shecannotenterintopartnershipwithherhusband. Ifshe
doesnotfileascheduleofherpersonalproperty,theburdenofproof
i s o n h e r t o s h o w that itishers.
M i n e s a n d M i n i n g . U n d e r control of commissioner of mines.
Alldocuments relating to mines must be recorded i n t h e recorder's
office of the county; a n d miners of the county m a y m a k e by-laws
regarding the time, manner, a n d a m o u n t of work necessary t o h o l d
claimsandotherrulesandregulationsnotinconflictwithlaw. Extensive provisionsare madefortheprotectionofthehealth andsafety
ofminers. (Acts 1893, p. 213). Miners have alien on theoutput,
machinery, and toolsused t o s e c u r e p a y m e n t f o r w o r k d o n e .
Three
years'possessionofamine,withworkrequiredbylaw,givespossessory
right.
Mortgagesare not liensasagainstanyone, though such person
hasactual noticeoftheir existence, until they are acknowledgedin
the form prescribed and filed for record. Mortgages of real estate
arerecordedin the county where the land lles, and mortgages of
personalpropertyinthecountyofthemortgagor'sresidence. Ifthe
mortgagorof personalityisanon-resident the mortgage isrecorded
inthecountywherethepropertyissituate. Salesundermortgages
anddeeds of trust canbe made only after appraisement, and the
propertymustbringtwo-thirdsoftheappraised value. Incaseitis
offeredandfalls to bring the required amount real estate may be
offeredagainafterone yearand personal propertyaftersixtydays,
andisthensoldforwhatitwillbring. Themortgagorofrealestate
hasoneyearfromthedateofsaleinwhich toredeem. Inactionto
forecloseamortgage,It issufficient defence that thedebt (whichit
recites),is
barred by may
statute
of limitations.
filedasother mort
be acknowledgedand
Chattel Mortgages
gages,ortheymaybeendorsed"Thisinstrumentistobefiledbutnot
recorded," signedby the mortgagee, a n d m a y then be filed in the
recorder's officewiththesameeffectasthoughrecorded. Mortgages
ofpersonalpropertyreservinginthemortgagorthepowerofdisposttionare fraudulent.
Mortgages and Deeds of Trust may be enforcedby foreclosure
atanytimewithintheperiodprescribedbylawforforeclosingmortgageordeedoftrustsofarasthepropertymentionedanddescribed
Insuchmortgageordeedoftrustisconcerned, butnoclaim ordebt
against the estate ofadeceased personshallbe probatedagainst
such estate whether secured by mortgage or deed oftrust or not
exceptwithinthetimeprescribedbylawforprobatingclaimsagainst
s a i d estate.
PowersofAttorney. Landsmaybeconveyedbypowerofattorney,which isacknowledgedasdeeds andrecordedinthecounty
re-enactedinthis State.
wherethelands lie.
Garnishmentsmaybesuedoutpendingsuitupongivingbondin
doubletheamountgarnished,orafterjudgmentwithoutbond.
Holidays. (See Bills of Exchange and Promissory Notes.) The
Probate Law. (See Administration of Estates.)
Protests. (See Bills of Exchange and Promissory Notes.)
Records. (See Acknowledgments, Conveyances, Mortgages,
Chattel Mortgages,and Powers ofAttorney.)
Redemption. (See Executions and Mortgages.)
Replevin. Theplaintiffinreplevinmayfileanaffidavitdescribing
theproperty,statingitsvalueandtheamountofdamagesheexpects
3 d d a y ofJune ismadea legal holiday.
HusbandandWife.
(SeeMarriedWomen.)
Injunctionsmaybeissuedbycircuitjudges,chancellors,orthe
fortheinjunctionmustgivebondasthecourtorjudgemaydirect.
Insolvency. Any insolvent debtormayapply to the chancery
courtfortheappointmentofareceiver,whomayhaveallattachments
dissolved.takepossessionofallthedebtor'sassets,andpaytheproceeds,first,tolaborersandemployeeswhoseclaimsmayhaveaccrued
judgeofanycourtinwhichsuitisbrought. Thepersonapplying
withinthreemonths, second,toallcreditorswhowillexecutearelease.
andthird,tothecreditorsgenerally.
torecover,histitle,thatthepropertyiswrongfullydetainedbythe
defendant,thatithasnotbeentakenforataxorunderprocessagainst
plaintiff,andthathiscause ofactionhasaccrued withinthree years,
andupongivingbondindoubleitsvalue,thepropertyshallbetaken
fromthedefendantandgiventotheplaintiffpendingthesuit,uniess
thedefendantwithintwodaysafteritistakengivesacross-bond,
Revision.
Thelast revision ofthestatutes was in1904.
L
BANKING
1 3 7 2
A N D
COMMERCIAL L A W S -
TaxesareallenbetweenvendorandpurchaserfromthefirstMond a y inDecember. They are payable betweenthe first M o n d a y i n
Januaryandthe10thofApril. Incaseofnon-paymentapenaltyof
25percentisadded. L a n d s m a y b e redeemedwithintwoyearsby
payingtaxes, penalty,andcosts, with10percentinterest. Minors,
lunatics, andpersonsinconfinementmay redeem withintwo years
aftertheirdisabilityisremoved. (Seealso Corporations.)
Testimony. (SeeEvidence.)
TransferofCorporationStock. (SeeCorporations.)
Trust Companies musthave a paid-up capital of $50,000, and
scribedcapitalofnotlessthan$100,000. Theymayexerciseallthe
powerscommonlyconferredonsuchcompanies.
Wages. No assignment or order ofwages to be earned in the
future tosecurealoanoflessthan$200, shallbevalidagainstany
employeror thepersonmaking suchassignmentororder,untilsuch
assignmentor order isacceptedin writing by theemployer andthe
incountieswithapopulationexceeding50,000,theymusthaveasub-
saidassignment or order and the acceptance ofsame has beenfiled
with therecorder ofthe county wherethe party making the assignmentor orderresides, ifaresidentofthestatewhereheisemployed.
Noassignmentororderofwagestobeearnedinthefutureshallbe
validwhenmadebyamarriedmanunlessthewrittenconsent ofhis
wifetomakingsuchanassignmentororderforwagesshallbeattached.
Warehouse Receipts a n d Bills of Lading shall not be given
exceptwherethecommoditiesmentionedarereceivedonthepremises.
andare under the control of the warehouseman at the time of its
Issuance. No warehouseman shall sell, encumber, ship, or remove
anysuchcommodityforwhichareceipthasbeengivenwithoutthe
writtenassentoftheholderofthereceipt. Thesameprovisionscover
ownersandagentsofboatsandvessels. Allwarehouse receiptsand
bills of lading are made negotiable by written endorsement and
deliveringthesameasbillsofexchangeandpromissorynotes,andno
printed or written conditions, clauses, or provisions insertedin or
attached tothem shallinanywaylimittheirnegotiabilityorimpair
the rights a n d duties of the parties thereto, or persons Interested
therein, or such conditionsshallbe vold. Warehouse receiptsgiven
by any warehouseman or other person for goods and other com-
moditiesdeposited,andallbillsofladinggivenby any carrier, boat,
vessel, railroad, transportation, or transfer company m a y be transferred by endorsement and delivery; and the transferce shall be
deemedtobetheownerofsuchcommoditiessofaras togivevalidity
toanypledge, lien, ortransfergiven, made, orcreatedthereby; and
nopropertyso storedordeposited shall bedelivered except onsurrenderand cancellation of such receipts and bills oflading, unless
such receipts and bills of lading have the words " n o t negotiable'
plainlywrittenor stamped on theirface. Acarrier may however
deliver toshipperorconsignee goods without presentationofbillof
ladinguponreceivingfromsuchshipperorconsigneebondindouble
thevalueofthegoods conditionedfordeliverytothecarrierthereafter theoriginalbilloflading (acts1907). Penaltiesaredenounced
againstanywarehousemanorotherpersonwho shall violateanyof
theprovisions ofthisstatute. So much of the act asforbids the
deliveryof property except the surrender and cancellation ofthe
originalreceiptorbillofladingshallnotapplytopropertyreplevined
o r r e m o v e d b y operation oflaw.
Wills.
Awillmustbesubscribedbythetestatororbysomeperson
forhimathisrequestinthepresenceoftwoattestingwitnesses, orhe
mustacknowledgeittobehiswilltoeachofthem. Hemustdeclare
atthetimeofhis subscription oracknowledgmentto the witnesses
thattheinstrumentis his willand testament. The witnesses must
signtheirnamesattheendofthewillas witnessesat the requestof
thetestator. If, however,theentirewillisinthehand-writingofthe
testator,itneednotbeattested,butmaybeprovedbythreewitnesses
c a n n o t be
familiar with the hand-writing.
hcuS,rielv
le
,woh
pleadedinbarofanattestedwill. Willsarerevokedbymarriageand
birthofissue, unless provisionforsuchissueis made by settlement.
or is providedforin the will. The will o f a n unmarried w o m a n is
revokedby her marriage. Afterbornchildren, notmentioned inthe
will, take their regulardistributive share. If the testator falls to
mentioninhis willanychild,orits legalrepresentatives,livingatthe
timeofexecutingthe will,heshall,astosuchchild, or its represent-
atives,bedeemed to havedied intestate,andsuchchild,orits representatives,is entitled to its regularshare.
CALIFORNIA
orifexecutedbyacorporation,thatthepersonmakingsuchacknow
edgment is the president or secretary ofsuch corporation, orother
personwhoexecuteditonitsbehalf. Officerstakingandcertify
acknowledgments or proofofinstrumentsforrecord, mustauthestcatetheir certificates by affixing thereto their signatures, alsother
seals of office, ifby the laws ofthe State orcountrywherethea
knowledgment or proof is taken, or by authorityofwhichtheyare
acting, they are required to have official seals. Acknowledgmen's
takenout ofthis State t o b e used within this Statemaybetak
beforea notary public, a commissioner appointedby the goverDE
ofthis State, a judge, or clerk o f a court of record, or inforse
countries a minister, consul, vice-consul, or consular agent ofthe
United States, or a judge of a court of recordoranotarypuh
Actions. All civilactions are commencedby filingacomplaint.
uponwhichplaintiffmay,atanytimewithinoneyearthereafter,have
a s u m m o n s issued. There is but one form ofaction andtheo
pleadingsallowedonthepartoftheplaintiffare: 1. Thecompial.."
2. The demurrer to the answer. 3. The demurrer to the cro
complaint. 4. The answer to the cross-complaint, andonthepar
ofthedefendant: 1. Thedemurrer to thecomplaint 2.T
answer. 3. Thecross-complaint. 4. Thedemurrerto theanswer
to the cross-complaint.
Administration of Estates. Upontheadmissionofawillto
probate,letterstestamentaryare grantedbythesuperiorcourttothe
executornamedinthewill,unlesshebedeadorincapableorunwit
toact,inwhich case letters testamentaryare issuedtoanadminis
tratorwiththewillannexed, appointedbysaldcourt. Incaseof
Intestacy, letters ofadministrationare issued tothe bonafiderest
dentofthestateentitledthereto,inthefollowingorder: 1.Relatives
ofwholeblood entitled toadminsterinpreferencetothoseofhall
blood. Survivinghusbandorwife, orsomecompetentpersonraced
byeither. 2. Children. 3. Fatherormother. 4. Brothers. 5.
ters. 6. Grandchildren. 7. Nextofkin entitledtoshareintheda
tribution of the estate. 8. Public administrator. 9.Creditors
10. Any person legally competent. Where the personentitledto
administrationisa minororincompetent,lettersmustbegrantedto
his o r h e r guardian, orto any other personentitled to lettersof
administrationin the discretion of the court. Bonds for faithful
performance of duty are required of an administratorandofan
executorunless walved by the will. Notice mustbegivenbythe
administrator orexecutorby publicationtoall thecreditorstocame
inandprovetheirclaimswithintenmonthsafteritsfirstpublicatba.
w h e n the estate exceeds in value the sum oftenthousanddola
andfour months when it does not. 11. Claims arising oncosta
whetherdueornotdueorcontingent,andfuneralexpensesmustbe
presented within time prescribed by notice to creditors, otherwise
theyareforeverbarred,unlessitappearsbyaffidavitofthecredos
that such creditor was outside of the Stateand consequentlydid
not receivenotice. Unless claim is approved withinthe timepho
videdfor in the notice it is barred, unless theclaimantcanpr
tothesatisfactionofthecourt thathehadnonoticebyreas of
being out of the State, in which casethe claim maybepresected
isrejected either by the executor or administrator orthejuice
atanytimebeforeadecreeofdistributionisentered. Whena
theholdermustbringsultintheappropriate court thereonwitha
threemonthsafterthedateofitsrejection,ifitbethenduc,orwita
two months afterit becomes due, otherwise the claimis forever
. dNoclaim
e r r a nacybderabs
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Limitations. Claims against the estateare paidinthefallortes
order: 1. Funeralexpenses. 2. Theexpensesofthelastsickness.
3. DebtshavingpreferencebythelawsoftheUnitedStates.
Judgment rendered against the decedent inhis lifetime, andmort
gagesandother liensin theorderoftheirdate; and6,allother4
m a n d s against the estate.
Affidavits, Anaffidavit tobeusedbeforeanycourt,Judge,of
officerofthis Statemaybe takenbeforeanyofficerauthorized
administeroaths. InthisStateeverycourt,everyjudgeorciersf
anycourt,everyjusticeandeverynotarypublic,andeveryoftof
personauthorizedtotaketestimonyinanyactionorproceedingor
decideuponevidence,haspowertoadministeroathsandafirmati
AnaffidavittakeninanotherStateoftheUnitedStatestobecred
InthisState,maybetakenbeforeacommissionerappointedbythe
governorofthisStatetotakeaffidavitsanddepositionsinsuchother
State, orbeforeanynotary publicinanotherState,orbeforeany
judgeorclerkofacourtofrecordhaving aseal. Anaffidav
inaforeigncountrytobeusedinthisState,maybetakesbefo
ambassador, minister, consul, vice-consul, or consular agent
UnitedStates,orbeforeanyjudgeofacourtofrecordhavingaw
insuchforeigncountry.
Aliens. 1.Allalienseligibletocitizenshipmaytake,holdand
2.Allaliensnoteligibletocitizenshipmayacquireandpossese d
disposeofproperty, realandpersonal,withinthisState
SYNOPSIS
T H E
L A W S
OF
CALIFORNIA
R E L A T . NG
BANKING
A N D
OF
TO
COMMERCIAL
USAGES.
inaccordancewiththetermsofanyexistingtreatywithanyfor
countryofwhich such alien isacitizen, and not otherwise,andi
additionmayleaselandforagriculturalpurposesforthreeyears
3.Anycompany,associationorcorporationcomposedintheres
ofaliensmayacquireandpossesslandinaccordancewiththeter
ofanyexistingtreatywithanyforeigncountryofwhichtheya
citizens,andnototherwise,andinadditionmayleaselandforagri
culturalpurposes for threeyears.
4.Whenitappearsinanyprobateproceedingswhereinanyal
Isanheirthathecouldtakerealpropertyexceptfortheprovis
thisact, theprobatecourtshallorderthesaleofsuchrealproperty
anddistributethe proceeds to suchalien.
5.Foranyviolationofthisacttheattorney-generalshallinstrote
forfeitureproceedingsanduponfinaljudgmentthelandsshaileschest
t o t h e State.
PreparedandRevised byMessrs. VECKI, WYTHE & JOHNSON
AttorneysandCounselorsatLaw,San Francisco.
(SeeCardinAttorneys' List.)
Accounts. Anaccountisassignable, andtheassigneemaymaintainanaction thereon, although theaccountis assigned merely for
collection. Anactiontorecoverabalancedueuponamutual current
andopenaccountoruponanopenbookaccountisbarredwithinfour
years T h e causeofactionona mutual accountisdeemed tohave
accruedfrom thedateofthelastitem. I n t h e c a s e o f a n o p e n b o o k
account, cachitem becomesoutlawedfouryearsafteritsdate. ( S e e
Actions a n d Limitations.)
Acknowledgments.
Before an Instrumentcan be recorded, Its
executionmust be acknowledgedby the person executingit, or if
executed by acorporation, by its president or secretary, or other
personexecutingthesameonbehalfofthecorporation,orprovedbya
subscribing witness, or by J u d g m e n t i n a n action brought for the
purpose. The proof or acknowledgment of an instrument m a y b e
madeatany place withinthe StatebeforeaJustice orclerkofthe
supreme court, and within the city, county, or township for which
theofficerwas appointedor elected,before either (1) A clerk ofa
court ofrecord: 2) a county recorder: (3) a court commissioner;
14 anotary public: 15: ajustice ofthe peace,
The acknowledgmentofaninstrument must notbetaken,unlesstheofficertakingit
koows orhassatisfactory evidence, on theoathor affirmation ofa
crediblewitnessthatthepersonmaking such acknowledgmentisthe
individualwhoisdescribed in, and who executedthe instrument:
6. Whenitappearsthatanyalienoraliensareholdinganylease
holdinterestsinviolationoftheaboveprovisionstheattorney-ge
shall likewise institute forfeiture proceedings, andsuchlens
N
interestoritsmonetaryvaluetogetherwiththecostsofsuchforfeature
proceedings shall escheat to the State.
Nonon-resident aliencan take by successionunless heaporst
and claim within 5 years after deathofdecedent
Arbitration. Thesubmissiontoarbitrationmustbeinwriting
court,forwhichpurposeitmustbe ledbytheclerk. Ifthe
missionisnotmadeanorderofthecourt.Itmayberevokedatsay
timebeforetheaward. Allthearbitratorsmustact,butamaj
governs. Theirawardmustbeinwriting,signedbyamajorityof
them,anddeliveredtotheparties,andwhenthesubmissionis a
byanorderofthecourt,mustbefiledbytheclerkwhoentersthe
same,aftertheexpirationoffivedays,inthejudgmentbookand
thereuponithastheeffectofajudgment.
Titletoreal
c a n n o t b e arbitrated. Uponapplication aStateBoardofArt
tionhasjurisdictionoverdisputesbetweenemployerandempi
Arrest. Inanactionfortherecoveryofmoneyuponacontract
expressorimplied, thedefendantmaybearrestedifabouttodepart
fromtheStatewithintenttodefraudhiscreditors,uponorter
anditmaystipulatethatitbeenteredasanorderofthesupetit
courtbaseduponaffidavittherefor.alsoinanactionformoney
A pe
other property embezzled or fraudulently misapplied by
orclerkinthecourseofhisemployment,orbyanyperson Inaoficer,foacrption,ratoney,factorbke,
c
larycapacity:alsoinactionstorecoverthepossessionofperseal
propertywhereithasbeenconcealedorremovedordisposedofte
1
B A N K I N G
A N D
C O M M E R C I A L
preventits being found; alsoincases where the defendant h a s b e e n
guiltyofafraudincontractingthedebtorobligationforwhichaction
isbrought; orinconcealing ordisposing ofproperty:also whenthe
defendanthasremovedordisposedofhisproperty orisabouttodo
s o w i t h intent to defraud creditors. Bail given upon arrest isliable
u p o n judgments secured.
A s s i g n m e n t s for t h e Benefit of Creditors. Assignments for
the benefit of creditors must be written and acknowledged by the
assignororhisagentauthorized theretoinwritingandrecorded, a n d
mustbemadetothesheriffofthecountywheretheinsolventresides,
or. Ifanon-resident, where he has property. Assignments for the
benefitofcreditorsarevoldagainstany creditornotassentingthereto
I n a n u m b e r o f instances; for example, where they give one debt a
preferenceoveranother,andwheretheytend tocoerceanycreditorto
releaseorcompromisehisdemand. Assignmentsmust containnames
ofcreditors a n d t h e a m o u n t s .
A t t a c h m e n t s m a y be issued at the time of or a n y time after
issuing the s u m m o n s where amount sued for exceeds $10.00. Al
property not exempt f r o m execution m a y be attached. An attachm e n t lien u p o n real property continues for three years and m a y be
extended for two years more. T h e clerk of the court must issue
thewrit of attachment u p o n receiving an affidavit by or on behalf
oftheplaintiff showing, 1 That the defendant is indebted to the
plaintiff, specifying the amount ofsuch indebtedness over and above
alllegalset-offs or counter-claims, u p o n a contract, express orimplied,
for thedirect payment of m o n e y , a n d t h a t such contract was m a d e
or is payable in this state, a n d that the payment ofthe s a m e h a s
not beensecuredby any mortgage orlienupon real or personal property, or any pledge of personal property, or, if originally so secured.
that such security has, without any act of plaintiff, or the person
t o w h o m the security was given, become valueless; or (2) That the
defendant is anon-resident of theState, and is indebted to plaintiff,
specifying the amount ofsuch indebtedness over and above alllegal
set-offs or counterclaims, u p o n a contract expressed or implied;
or
3
That plaintiff's cause of action against defendant is one to
recover a s u m of m o n e y asdamages (specifying the amount thereof)
arising f r o m an injury to property in this State in consequence of
the negligence, fraud or other wrongful act of the defendant, and
that the defendant is anon-resident of theState;and (4) That
theattachment isnot sought, nor is theaction prosecuted, to hinder,
delay,ordefraudanycreditorofdefendant. Beforeissuing thewrit,
theclerkmust require awritten undertaking onthepartof theplaintiff, in a s u m not less than $200, or in Justices Court offrom $50.00
to $300, a n d not exceeding the amount claimed by plaintiff, with
sufficientsureties, totheeffect that,ifthedefendantrecoversjudgment,
theplaintiff willpayall costs that maybeawarded tothedefendant,
a n d a l l d a m a g e s that he m a y sustain by reason of the attachment.
not exceeding the sum specified in the undertaking, and that if the
attachment is discharged on the ground that the plaintiff was not
entitled thereto, the facts required in the above not being existent,
the plaintiff will pay all damazes which the defendant may have
sustained by reasonofthe attachment, not exceedingthe sumspeci-
fied in the undertaking.
Banks, Savings. AA savings bank may purchase or hold (1)
Real Estate, furniture, fixtures, etc., in which its business may be
conducted. (2) Property mortgagedorheldintrust onaccount of
any money lent in the course of business. It shall not purchase
L A W S -
CALIFORNIA
1373
i n h i s hands belonging to a customer for the balance due to h i m
f r o m such customer in the course of business. T h e s a m e capital
stock is required of commercial banks as of savings banks. (See
savings banks.) With s o m e exceptions no commercial b a r k canlend
m o r e than ten per cent of its capital stock on unsecured loans or
twenty-five per cent u p o n security worth at least fifteen per cent
m o r e t h a n t h e loan so secured, but a commercial bank m a y b u y or
discount bills of lading or exchange d r a w n against actual value or
b u y a n d discount commercial paper, not to exceed twenty-five per
cent of its capital a n d surplus.
B i l l s a n d N o t e s . Negotiable Instruments. A negotiable instrumentisawrittenpromiseorrequestforthepaymentofacertainsum
o f m o n e y to order or bearer. It must be m a d e payable in m o n e y
onlytoapersonascertainableatthetimetheinstrumentismade,and
withoutany conditionnotcertainoffulfillment. It m a y b e with or
withoutdate,andwithorwithoutthedesignationofthetimeorplace
of payment. It may contain apledge of collateral security, with
authority to dispose thereof. Bills ofexchange, promissory notes,
b a n k notes, checks, bonds, and certificates of deposit, also warehouse receipts w h e n so m a d e are negotiable instruments. A n y
date m a y be inserted by the maker of a negotiable instrument,
whether past, present, or future; a n d the instrument is not invali-
dated by his death or incapacity at the time ofthe nominal date.
Days ofgrace are not allowed. Acceptance mustbe in writing by
t h e d r a w e e or by an acceptor for honor, and m a y be m a d e b y the
acceptorwriting his nameacrossthefaceofthebill with orwithout
other words. The acceptance of a bill of exchange by a separate
Instrument binds the acceptor to one w h o , upon the faith thereof,
has thebill for value or other good consideration. T h e holder o f a
billofexchange,if entitled to an acceptance thereof, m a y treat the
bill asdishonored if the drawee refuses to write across its face an
unqualified acceptance.
An
unconditional promise in writing to
acceptabill ofexchangeisa suficientacceptance thereofinfavorof
everypersonwho,uponthefaiththereof,has takenthebillforvalue.
Theprotestofanotary,underhishandandofficialseal,isprimafacie
evidenceofthefactscontainedtherein. Abillofexchange,Ifaccepted
withtheconsentoftheownerbyapersonotherthanthedrawee, or
anacceptorforhonor, becomes,ineffect,thepromissorynoteofsuch
person,andallpriorpartiestheretoareexonerated. Ifapromissory
note,payableondemandoratsight,withoutinterest,isnotdulypresented for payment within six months fromits date, the indorsers
excused.
presentation
thereofare
Chattel exonerated,
such
Mortgages unless
made
may be
personal
property,
on any is
Includinggrowing cropsandfruit, except personalpropertynotcapable ofmanual delivery, articles of wearing apparel and personal
adornment, andthestock intradeofamerchant. Intheabsenceof
delivery and continued change of possession, the chattel mortgage
w i l l b e v o l d a s tocreditorsof the mortgagorunlessacknowledged or
proved, certified,andrecorded,as required incases ofgrants ofreal
propertyandaccompanied by affidavits ofall the parties thatitis
madeingoodfaith,andwithoutanydesigntohinder,delayordefraud
creditors. Suchmortgagesmustberecorded incounty itissituatedin
and ifremoved to another county a copy of mortgage must be recordedincountywithin30daysor mortgagor must take possession.
Collaterals. Aregoverned by the lawrelating topledgesofpersonalproperty. Apledgeisadepositofpersonalpropertybywayof
security for the performance of any act. Delivery of the thing
personalproperty except (1) bonds orinterest bearing obligations
pledgedisessentialtothevalidityoftheballment.
formanceoftheactfor
which the pledgeis g i v e n i s dWhentheperueinwholeor
whichhas not defaulted in payment of either principal or interest
inpart,thepledgeemaycollectwhatisduetohimbythesaleofthe
propertypledged. Butbefore the property canbesold thepledgee
estate to sixty per cent of its
orbonds
secured by first lien on real
market value
9) Collateral trust bonds or notes secured byde-
Contracts. Certain contracts are invalid unless the s a m e or
s o m e note or m e m o r a n d u m thereof is in writing. ( S e e Statute of
Frauds.) A contract for personal services cannot be enforced for
ofthe United States (2) bonds ofthe State.
(3) B o n d s o f any state
withinfiveyears. 4Bondsofany county, cityortown orschool,
road, sewer, drainage, reclamation, protective orsanitarydistrict, mustdemandperformance thereof fromthedebtor, ifhe canbe
organized underthelawsofthestate,tolimitedamount. (5) Bonds found, a n d must give actual notice to the pledgor of the time a n d
ofanycounty, cityortownofany stateofapopulationofmorethan placeatwhichthepropertypledgedwillbesold.atsuchareasonable
200.000andanentirebondedindebtelnesslessthanfifteenpercent timebefore the saleas will enable thepledgor to attend, but notice
ofthetaxable property, where interest or principalhas not been ofthesale may be walved by the pledgorat any time. The sale
must be by public auction and must be for the highest obtainable
defaultedwithin five years, (6) Bonds of railroads organized inder
thestateandoperating exclusively thereinor ofrailroadsoperating price. Afterthesalethepledgeemaydeductfromthe proceedsthe
atleast 500miles ofstandard gauge tract, or ofany railroad cor- amountdue and the necessary expenses of sale and collection, and
must pay the surplus to the pledgor. The pledgee, or a pledgeporationpayment ofwhich has been guaranteed, by the preceding
clausesofrailroads: provided, that inallcasesthenetearningsare holder, m a y purchase the property pledged when the same is sold
asrequiredby statute (7)Bondsof Public Utility corporations, at public auction. Apledgeecannotsellany evidence ofdebt
incorporatedunderthelawsoftheStateofCalifornia, provided the (collateral) pledgedtohim, excepttheobligationsofgovernments,
states,orcorporations;buthemaycollectthesamewhendue.
propertiesandearnings, etc., areas requiredbystatute. ( 8 ) N o t e s
positofauthorized bonds fifteen per cent in excess ofsuch collateral
bondsorthedeposit ofsuchbonds andother securities twentyper
cent in excess of such collateral bonds, provided the market value
oftheauthorized bonds deposited equal such collateral bonds. (10)
savings banks under the laws of New York or
Bondsacceptedby
Massachusetts.
(11) Certificates issued by corporations with a
paidupcapital stock ofnot less than $100,000, secured upon real
estateand guaranteed in the manner required by the Bank Act.
Nosavingsbank must loanmoney except onadequatesecurity on
over
t w o
years.
Conveyances. Anestateinrealproperty.otherthananestateat
will,orforatermnotexceedingoneyear,canbetransferredonlyby
operationoflaw, orby aninstrumentinwriting, subscribed by the
partydisposingofthesame, orby hisagent thereuntoauthorizedin
writing. Leases of agricultural land for a longer period than 10
yearsandofcitypropertyfora longerperiod than30years arevoid.
Afeesimpletitle is presumed to be intended to pass by a grant of
realorpersonalpropertyandsuchloanmustnotbeforlongerthan realproperty,unlessitappearsfromthefaceofthegrantthata
tenyears. It must have a paidup capital stock graduated from
$25,000whenlocatedinany placeoflessthan5,000 population. to
$500,000 when the population is in excess of 200.000. Savings
banksorganizedwithout capital stock must have areserve fundof
$1,000,000. The capital stock and surplus of savings banks, must
equaltenper cent to and including $2,000,000 deposit liabilities,
mustexceed seven and onehalf per cent ofdeposit liabilities from
$2,000,000to$5,000,000,fivepercentfrom$5,000,000to$15,000,000,
twoand onehalfper cent from $15,000,000 to $40,000,000, andone
Asurviving
husbandorwifeornextofkinofanydeceasedpersonmay,without
procuring letters of administration, withdraw any s u m deceased |
per centofdeposit liabilities in excess of$40,000,000.
mayhavehad
d e$500.00.
e c x e tondeposit
o n s e o d minany
u s e h tsavings
fiknab
Banks.
The business of banking m a y be carried on only by
corporationsorganized for that purpose under the BankAct. The
capitalstockandsurplus ofcommercialbanks mustexceed tenper
centofdepositfiabilities. Such corporations are classified as: Com-
mercial,SavingsorTrustcompanies,and, togetherwithbuildingand
loanassociations,areconductedunderthesupervisionandinspection
State SuperintendentofBanks,towhomsuchbanksmustsubofa
mitatstated intervals to examination.
No personunless organized
asabankunderthelawsofthisstatemayholdhimselfoutasen-
gagedinthe banking business, or use the word bank, savings or
trust company in connection with his business. Every bank m a y
conductacommercial and savings department, provided itscapital
stock, ifsituatedinalocalityoflessthan5,000populationamounts
to $25.000, or both or either departments in conjunction with a
trustdepartmentifthesameamountsto$125,000.
000to
,5mo25,000acapital
rfsiytilacolafonoitalupof$50,000isrequired
opehtfI
forasavingsandcommercialdepartmentand$150,000 forbothor
either in conjunction with atrust department. Ifthe population
isfrom25,000 to 100,000 a capital of $200,000 and$400,000 respectively,isrequired;ifthepopulationisover200.000acapitalof$300,
000and$500,000, respectively, isrequired. Every bankmustdesignate the character of its business. A bank organized under the
lawsofanotherstatemustcomplywithalltherequirementsofthe
StateBankAct,setaparttoitsbusiness conductedherethesurplus
paidupstockrequiredofCaliforniacorporations, andconstitutethe
State Superintendent of Banks its agent for service ofprocess. A
bankerhasageneral liendependentuponpossessionofallproperty
lesser estatewas intended. Agrant ofrealproperty may be made
inthefollowing form: "I, A. B., grant toC. D. allthat real propertysituatedin(insertnameofcounty) county, Stateof California,
bounded (or described) as follows: (Here insert description, or
ifthelandsoughtto beconveyedhasawell-established descriptive
name.It may be described by such nameas for instance: T h e
NorrisRanch.') Witnessmyhandthis(insert)dayof(Insertmonth),
19-. . . " Theuse of the word "grant" implies the following
covenants:
1. That previous to the time of the conveyance the
grantorhadnotconveyedthesameestate,oranyright,title,orInter-
est therein to a n y person other than the grantee.
2. That such
estateis atthe timeof the executionofthe conveyance
free from
Incumbrances, done, made,orsufferedbythegrantor. Subsequently
acquired title passes by operation of law to the grantee,or his successors. Instruments entitled to be recorded must be recorded by
thecountyrecorderofthecountyinwhichtherealpropertyaffected
therebyis situated. Every conveyance of real property, acknowl-
edgedorprovedandcertifiedandrecordedasprescribedbylaw,from
thetimeitisfiledwiththerecorderforrecord,isconstructivenotice
ofthecontentsthereoftosubsequentpurchasersandmortgagees,and
every conveyance ofreal property o t h e r t h a n a l e a s e f o r a t e r m not
exceeding one yearis vold as against any subsequent purchaser or
mortgageeofthe sameproperty, orany part thereof,in good faith
and for a valuable consideration, whose conveyanceis first duly
recorded.
Corporations. Privatecorporationsmaybeformedbythevoluntaryassociationofanythreeormorepersons,inthemannerprescribed
bystatutenottoexceed 50years. Amajorityofsuchpersonsmust
be residents ofthis State. Private corporations maybeformed for
anypurposeforwhichindividuals maylawfullyassociatethemselves.
The number of directors of corporations for profit, except those
mentionedasexcepted, maybeincreasedor diminished, by amajority of the stockholders ofthe corporation to any number, not less
thanthree,whomustbemembersofthecorporation. Acopyofthe
articlesofincorporation, certified by thesecretary ofState, must be
filed with the county clerk ofevery county where the corporation
purchases, acquires or locates property, within sixty days after
suchpurchase or location. Upon filing thearticles ofincorporation
intheofficeofthecounty clerkofthe countyinwhich the principal
businessofthecompany is to be transacted, a copy thereof, certifiledbythecountyclerk, withthesecretaryofState, thesecretary of
BANKING AND COMMERCIAL LAWS-CALIFORNIA
1374
Statemustissuetothecorporationoverthegreatsealofthe State
acertificatethatacopyofthearticlescontainingtherequiredstatementoffactshasbeenfiledinhisoffice,andthereuponthepersons
signing the articles, and their associates andsuccessors, shall be a
body politic and corporate by the name stated in the certificate,
andforatermoffiftyyears,unlessitisinthearticlesofincorporation
otherwise stated, or in the code otherwise specially provided. A
copyofanyarticlesofincorporationfiledinpursuanceofthischapter,
andcertifiedby thesecretaryof State, mustbe receivedinallthe
courts,andotherplacesasprimafacieevidenceofthefactstherein
stated. (See Foreign Corporations.) All stocks isassessableforthe
purpose ofpayingdebts andmeetingexpenses butnosingle assessmentmust exceed 10%. The franchise ofall corporations as distinctfrom its tangible property issubject to taxation.
Each stockholderofacorporation isindividually and personally
liable forsuch proportion ofitsdebt and liabilities incurredwhile
h e w a s a stockholder as the amount of stock or shares owned by
himbearstothewhole ofthe subscribedcapital stock or shares of
thecorporation,andforalikeproportiononlyofeachdebtorclaim
against the corporation, but such liabilityisbarred within 3years
after the obligation isincurred. Any creditor of the corporation
m a y institutejointotseveral actions against anyofitsstockholders
fortheproportionofthisclaim, payablebyeach, andinsuchaction
thecourtmustascertaintheproportionoftheclaimordebtforwhich
eachdefendant isliable, and aseveral judgment must be rendered
against each in conformity therewith. If any stockholder pays
hisproportionofanydebtduefromthecorporationincurredwhile
h e w a s such stockholder, he is relieved from any further personal
liabilities forsuch debt; andifanactionhas beenbrought against
himforsuchdebt,itshallbedismissedasto himuponhispaying
thecosts,orsuch proportionthereofasmaybeproperlychargeable
againsthim. The term "stockholder" extends to every equitable
ownerofstock,althoughthesameappearsonthebooksinthename
ofanother, andalso to every personwho hasadvancedthe install-
mentsorpurchasemoneyofstockinthenameofaminor, solongas
thelatter remains a minor; and also to every guardian or other
trusteewhovoluntarilyinvestsanytrustfundsinthestock. Stock
heldascollateralsecurity,iffactofpledgeappears,orbyatrustee,or
inanyotherrepresentativecapacity,doesnotmaketheholderthereof
astockholder, exceptinthecaseabove mentioned, soastocharge
himwithanyproportionofthedebtsorliabilitiesofthecorporation;
butthepledgor,orperson,orestaterepresentedistobedeemedthe
stockholderas respects such liabilities. Incorporations having no
ofdeath has been rendered; thesaid courtalsohasappellatejura
dictioninall cases, matters and proceedings pendingbeforeadis
trictcourtofappealwhichshallbeorderedbythesupremecourtto
betransferredtoitselfforhearinganddecision.
Depositions. Thedepositionofa witnessoutofthisStatemay
betakenuponacommissionIssuedfromthecourtunderthesealofthe
court,uponanorderofthecourt,orajudgeorjusticethereof,onthe
application ofeither party, upon,fivedays' previousnoticetothe
other. Ifthecourtbeajustice'scourt, thecommissionshallhave
attached to it a certificate under seal bytheclerk ofthesuperior
court of the county to the effect thatthepersonissuingthesame
wasanactingjusticeofthepeaceatthedateofthecommission. If
issuedtoanyplacewithinthe UnitedStates,itmaybedirectedtos
personagreed uponbythe parties, or iftheydonotagree,toany
notarypublic,judgeorjusticeofthepeaceorcommissionerselected
bythecourt,orjudge,orjusticeissuingit. Ifissuedtoanycountry
outoftheUnitedStates,itmaybedirectedtoaminister,ambassador
consul, vice-consul, or consular agent of the United States
such
country,
or authorizethe
to any personcommissioner
agreeduponby
theparties. The
commission
must
toadministeranoath
tothewitness. ThetestimonyofawitnessoutoftheStatemaybe
takenbydepositioninanaction, atanytimeaftertheserviceofthe
summonsortheapappearanceofthedefendant;inaspecialproceeding.
atanytimeafteraquestionoffacthasarisentherein. Deposition
must be taken intheform ofquestionandanswer. Thewordsof
thewitness must be writtendown, in thepresenceofthewitness
by the officer taking the deposition or bysomeindifferentperson
appointedby him. It may be takendowninshorthandinwhich
caseitmustbetranscribedto longhandbythepersonwhotook
down. When completed, it mustbe carefully readtoorbythe
witnessandcorrectedbyhiminanyparticular,ifdesired,bywriting
orcausinghiscorrectionstobewrittenatthebottomofthedeposition
andmustthen be subscribed by thewitness. Correctionsmustbe
initialedby officerbeforewhom depositionistaken. Iftheparties
agreeinwritingtoanyothermode, themodesoagreeduponmus
befollowed.Depositionsinthis
State. Thetestimonyofthewitnessinthi
Statemaybetakenbydepositioninanactionatanytimeafterthe
serviceofsummonsortheappearanceofdefendant,andinaspecial
proceedingafter a questionoffacthasarisen therein, incertais
enumeratedcases.DepositionsforUseoutoftheState. Anypartytoanactionor
specialproceedinginacourtorbeforeajudgeofasisterstate,may
capitalstock,eachmemberisindividuallyandpersonallyliableforhis obtainthetestimonyofawitnessresidinginthisState,tobeusedin
suchaction orproceeding, Inthecasesmentionedfollowing: If
p
roportionofitsdebtsandliabilities,andsimilaractionsmaybe
broughtagainsthim,eltheraloneorjointlywithothermembers,to
enforcesuchliabilitiesasbythissectionmaybebroughtagainstone
ormorestockholders,andsimilarjudgmentsmayberendered.
Courts. Terms and Jurisdiction. Justices' courts have civil
commissiontotakesuchtestimonyhasbeenissuedfromthecourt,
orajudge hereof,before which such actionorproceedingispend
Ing, on producing the commission to ajudgeof the superior
courtwithanaffidavitsatisfactorytohimofthematerialityofthe
testimony,hemayissueasubpœnatothewitness,requiringhimto
Jurisdiction: 1. Inactionsarisingoncontractsfortherecoveryof appearandtestifybefore
the commissionernamedinthecommis
money,onlyifthesumclaimed,exclusiveofInterest,doesnotamount
to$300, andthe jurisdiction ofa justiceofthe peace inall cases sion,ataspecifiedtimeandplace. Ifacommissionhasnotbeen
wheremoney judgment isrecoverableis limited to $300. 2. In Issuedanditappeartoajudgeofthesuperiorcourt,oraJustice
Thatthetestimony
actionsfordamagesforinjurytotheperson,orfortaking,detaining, thepeace,byaffidavitsatisfactorytohim:2.1.
Thatacommissionto
or injuringpersonalproperty, orfor injury toreal property, where
o
f
t
h
e
w
i
t
n
e
s
i
s
m
a
t
e
r
i
a
l
t
o
e
i
t
h
e
r
p
a
r
t
y
.
t
a
k
e testimony of such witness has not been issued. 3.Tha
noissueisraisedbythe verifiedanswerofthedefendant Involving
thetitletoorpossessionofthesame,ifthedamagesclaimeddonot accordingtothelawoftheStatewheretheactionorspecialproceeding
amountto$300. 3. Inactionstorecoverthepossessionofpersonal Ispending, thedepositionofawitnesstakenundersuchcircum
property, ifthevalueofsuch propertydoesnotamount to $300. stances,andbeforesuchjudgeorjustice,willbereceivedintheaction
4. Inactions for a fine, penalty, or forfeiture not amounting to orproceeding, he must issueasubpœna requiringthewitnessto
$300givenbystatute, ortheordinance ofanincorporated city or appearandtestifybeforehimataspecifiedtimeandplace. Upon
town, where no issueisraisedbytheanswerinvolvingthelegality theappearanceofthewitness,thejudgeorjusticemustcauses
of any tax, Impost, assessment, toll, or municipal fine. 5. In
testimonytobetakeninwriting,andmustcertifyandtransmiitthe
actionsuponbondsorundertakingsconditionedforthepaymentof sametothecourtorjudgebeforewhomtheactionorproceedingi
money, ifthe sum claimeddoes notamountto $300, though the
pending,insuchmannerasthelawofthatStaterequires.
penaltymayexceedthatsum. 6. Totakeandenterjudgmentfor
DescentandDistributionofProperty. Property,bothreal
therecovery ofmoney onthe confessionofadefendant, whenthe andpersonal,ofanintestatepassestohisheirs. Asurvivingwils
to
$300.
ofinterest,
does
not
amount
amount confessed, exclusive
I.e..allproperty
succeedstoone-halfofthecommunityproperty,
7. Alsoconcurrentjurisdictionwiththesuperlorcourts,withintheir acquiredbyhusbandorwifeduringthemarriage,whichdoesnot
respectivetownshipsinactionsofforcibleentryanddetainer, where Includepropertyacquiredbyeltherhusbandorwifebygift,bequest
therentalvalueofthepropertyentereduponorunlawfullydetained deviseordescent,whichisseparateproperty. Dowerinterestdoes
doesnotexceed $25permonth,andthe wholeamountofdamages not exist. The separate estateisdistributedasfollows: Ifthe
claimeddoesnotexceed$200. Also inactionstoenforceand foreclose liens onpersonal property, where neitherthe amount ofthe decedentleavesasurvivinghusbandorwetendonlyonechild,of
llensnorthevalueofthepropertyamountsto$300.
Superior Court. The jurisdictionofthe superiorcourt isoftwo
kinds: 1. Original. 2. Appellate. Thesuperiorcourthasoriginal
Jurisdictioninallcasesinequity; inallcivilactionsinwhichthesubjectoflitigationisnotcapableofpecuniaryestimation; inallcasesat
lawwhich involve the title or possessionofreal property, or the
legalityofanytax, etc.,andinallothercasesinwhichthedemand,
exclusive of interest or the value of the property incontroversy,
amountsto$300; ofactionsofforcibleentry anddetainer, ofproceedingsininsolvency; ofactionstopreventorabateanuisance; of
allmattersofprobate, ofdivorceandforannullmentof marriage;
andofallsuch specialcases and proceedings as are not otherwise
provided for. They also have power to issue writs ofmandamus,
thelawfulissueofonechild,inequalsharestoI
tf
haessuurr
vn
ig
nhguhsubsab
vv
ii
vi
na
dn
ar
orwifeandchildorissueofsuchchild.
wifeandmorethanonechildliving,oronechildlivingandthelawful
issueofoneor moredeceasedchildren,one-thirdtothesurviving
husbandorwife,andtheremainderinequalsharestothechildren
andtothelawfulissueofanydeceasedchildbyrightofrepresentation
Butiftherebenochildliving,theremaindergoestoallthelines
descendants,andiftheyareinthesamedegreeofkindredtothe
d
aa
rv
ee
es
qn
uo
as
lu
lr
yv
,i
ov
ti
hnegrhwuissbeabnydroirgwhitfoer,rtehperwehs
Ie
fc
te
hd
ee
dn
et
ct
eh
de
ey
ns
th
le
oe
ln
et
ea
st
ti
ao
tn
s
goestotheissue theissueofchildrentakingbyrightofreprese
tation. Ifthereisnoissuetheestategoesone-halftothesurviving
husbandorwifeandtheotherhalftothefatherandmotherinequa
shares,or,ifonebedead,tothesurvivor;iftherebenofatheror
certiorari,prohibition,quowarranto,andofhabeascorpus on petition
other,thentheirone-halfgoesinequalsharestothebrothersand
byoronbehalfofanypersoninactualcustodyintheirrespective m
counties. Injunctions andwrits ofprohibition may be issuedand sistersortotheirrepresentatives. Ifthereisnoissue,orhusbandar
servedonlegalholidaysandnon-judicialdays. The superiorcourts wife,theestategoestothefatherandmother,orthesurvivor,or,
have appellate Jurisdiction in cases arising in justices' and other bothbedead,theninequalsharestothebrothersandsisters,and
Inferiorcourtsin their respective counties provided the appeal be
takenwithinthirty days of the judgment.
DistrictCourtsofAppeal. TheStateisdividedintothreeappellate
districts, each ofwhichhasacourt ofappeals with three Justices.
These courtshaveappellate and original Jurisdiction. The general
lineofdemarcation between the supreme court and thesecourtsis
theamount of money or the value ofthe property involved. The
districtcourts ofappealhaveappellatejurisdictiononappealfrom
thesuperiorcourtsinallcasesatlawinwhichthedemandexclusive
ofinterestor the value ofthe property incontroversy amountsto
$300 anddoes n o t a m o u n t to $2,000; alsoin all cases of forcible
entry a n d detainer (except such as arise in the justices' courts);
Inproceedings ininsolvency, andinactions
topreventorabatea
utmaidnbamidn
n Iproceedings
: e c n a sini u n , n o,iscertiorari
hao r p
usurpationofoffice, contesting elections and eminent domain, and
Insuchotherspecial proceedingsasmaybeprovidedbylaw(exceptIngincasesinwhichappellatejurisdictionisgiventothesupreme
court); also on questions of law alone inall cases prosecuted by
Indictment or Information to a court ofrecord, excepting criminal
caseswherejudgmentofdeathhas beenrendered. Saldcourtsalso
have appellate jurisdiction in all cases, matters and proceedings
pendingbefore the supreme court which shall be ordered by the
supremecourt to be transferred to a district court of appeal for
hearinganddecision.
Supreme Court. Has originaland appellate jurisdiction. Inthe
exerciseoforiginalJurisdictionitshallhavepowerto issuewrits of
prohibition,
i n ra a
and
o u ihabeas
l a
, s u m a, d
m ;r s
p tr or ce c oIt sshall
have power to issue all other writs necessary a n d proper for the
complete exercise of its appellate Jurisdiction. Thesupremecourt
hasappellateJurisdictioninallcasesinequity, exceptsuch asarise
inthejustices courts; alsoinallcasesatlawwhichinvolvethetitle
orpossessionofrealestateorthelegalityofanytax,impost,assessment, toll or municipal fine, o r i n w h i c h the d e m a n d exclusiveof
Interest or the value of the property in controversy amounts to
$2.000; alsoinallsuchprobatemattersasmaybeprovidedbylaw;
ssoonquestionsoflawaloneinallcriminalcaseswherethejudgment
tothechildrenofanydeceasedbrotherorsisterbyrightofrepe
s
entation. Ifthedecedentleavesasurvivinghusbandorwife,and
neitherissue,father,mother,brother,norsister,thewholeestate
goestothesurvivinghusbandorwife. Ifthedecedentleavesneither
I
ssue,husband,wife,father,mother,brotherdeedsister,theesta
llegitimatech
mustgotothenextofkininequaldegree.
inheritfrommother,alsofromfatherifrecognizIe
dinwrites
canonlyinheritdirectlyandnotbyrepresentation. Thesearv
principalprovisionsofthelawofsuccessionenTenancybythe
tesyisnotknowntoourlaw. Ifthepersondiestestate,allprope
.snoitucexE
the
.lliw
passes asdirectedby
judgmentandaftMayissueanytimewithin5yearsfroment
erlapseof5yearsthehudgmentmaybeen
orcarriedintoexecutionbyleaveofcourtuponmotion,orby
al proce
mentfor that purpose, foundedupon supplementinitsdis
Norightofstayexistsexceptbyorderofthecourt
afterhisdeath,onlyifthejudgmentbeforsonalproperty,ortheenforcementofliensthereon.
o
f
r
e
a
l
E
x
e
c
u
t
i
o
n
m
a
y
i
s
u
e
a
g
i
n
s
t
h
e
p
r
o
p
e
r
t
y
o
f
a
j
u
d
g
m
e
n
Realp
mayberedeemedwithinoneyear,personalpropertynotatall
tsi,otnas
.es,Th
rettyhiese
ico
1.ExCe
hm
ap
ir
bl
de
ef
so
kl
sl
,o
aw
ni
dn
bg
op
or
kosp,eb
vx
ae
lm
up
etfr
$o
2m
0e
0x
2e
.cut
Ne
sa
si
eh
an
bl
iw
tc
rh
ni
ee
longingtothejudgment
d
erbythooru,
noclldu,dti
geoannedske
ihnegnmfauc
utmuirteubr
p
i
e
s
a
n
d
t
u
r
e
,
w
e
a
r
i
n
g
a
p
a
r
e
l
,
b
e
d
s
,
b
e
d
i
n
g
a
n
d
b
e
d
s
t
e
a
d
,
h
a
n
g
i
n
g
p
l
e
t
u
r
n
s
fampaintingsanddrawings
h
a
n
e
m
b
e
r
o
f
a
n
d
f
u
e
l
a
c
t
u
a
l
y
p
r
o
v
i
d
e
f
o
r
i
n
d
i
v
d
u
a
l
o
r
f
a
m
i
l
y
u
s
e
u
family,andfamilyportraits,andtheirneedssaryframes,prote
forthreemonths,andthreecowsandtheirsuckingcalves,fou
withtheirsuckingpigs,andfoodforsuchcowsandhogsfor
month,onepiano,
su
hs
ob
ta
gn
ud
nr,yna
fh
ar
utensilsorimplemento
sn
oe
fh
ontdboenceereidfifneg.in3.
valT
uheet
es
of$1,000;alsotwooxenortwohorses,ortwomules,andtheirhar
onecartorbuggyandtwowagons,andfoodforsuchoxes,
ormulesforonemonth;alsoallseed,grain,orvegetables,actza-
1375
BANKING AND COMMERCIAL LAWS-CALIFORNIA
provided, reserved or o n h a n d f o r the purposeofplanting or sowing
a t a n y time within the ensuing six months, not exceeding in value
t h e s u m of$200, a n d seventy-fivebee hives, a n d o n e h o r s e a n d ve
hiclebelonging to any personwho is maimed or crippled, and the
s a m e i s necessary in his business.
4.
T h e tools or implements of
mechanic or artisan necessary to carry on his trade; the notarial
seal, records, a n d office furniture o f a notary public; theinstruments
a n d c h e s t o f a surgeon, physician, surveyor, or dentist, necessary to
theexerciseoftheirprofession, withtheirprofessional libraries and
necessary office furniture; the professional libraries of attorneys,
judges, ministers of the gospel, editors, school teachers a n d music
teachers a n d their necessary office furniture, including one safe a n d
one typewriter, also the musical instruments of music teachers actually used by t h e m in giving instructions; a n d allthe indexes, abstracts, books, papers, maps, and office furniture of a searcher of
records necessary to be used in his profession; also the typewriters
or other mechanical contrivances employed for writing in type actually used by the owner thereof for making his living; also one
bicyclewhenthesameisusedbyits ownerforthepurposeofcarrying
o n h i s regular business, or w h e n the s a m e is used for the purpose
oftransportingtheowner toandfromhisplaceofbusiness. 5. T h e
cabinordwelling o f a m i n o r not exceedinginvaluethesumof$500;
also his sluices, pipes, hose, windlass, derrick, cars, pumps, tools,
implements, a n d appliances necessary for carrying on a n y mining
operations, not exceeding in value the aggregate s u m of $500; a n d
t w o horses, mules, or oxen, with their harness, and food for s a m e
for one month, when necessary to be used in any whim, windiass,
derrick, car, pump, orhoisting gear,andalsohisminingclaim, actuallyworked by him, not exceedinginvalue the sumof$1,000. 6.
Twohorses, two oxen, ortwo mules,andtheirharness,andonecart
ofwagon, onedrayortruck, onecoupe,tonehackorcarriageforone
ortwohorses, by the use ofwhich acartman, truckman, huckster.
peddier, hackman, teamster, or other laborer habitually earns his
living. andonehorse with vehicleandharness, orotherequipments
used byaphysician, surgeon, constable, or ministerofthegospel in
the legitimate practice ofhis profession or business, with food for
s a m e for one month.
7. O n e fishing boat a n d net, not exceeding
the total value $500, the property of any fisherman by the lawful
use of which he earns a livelihood. 8. Poultry, not exceeding in
value $75. 9. Seamen's a n d seagoing fishermen's wages a n d earnings not exceeding $300. 10. Theearnings ofthejudgmentdebtor
for his personal services rendered at any time within thirty days
next preceding the levy ofexecution or attachment, whereit appears
by thedebtor's affidavit or otherwise, that such earningsarenecessaryfortheuseofhis familyresidinginthis Statesupportedinwhole
o r i n p a r t by his labor; but where debts are incurred by a n y such
person, orhis wife or family for the common necessaries oflife, or
havebeenincurred a t a t i m e w h e n t h e d e b t o r h a d n o f a m i l y residing
inthis State, supported in whole or on partby his labor, the onehalf of such earnings above mentioned are nevertheless subject to
execution, garnishment, or attachment to satisfy debts so incurred.
11. The shares held by a member ofahomestead associationduly
Incorporated, not exceeding in value $1,000, if the person holding
the shares is not the owner of a homestead under the laws ofthis
State. 12. All the nautical instruments a n d wearing apparel of
any master, officer, or seaman of any steamer or other vessel. 13.
Allfireengines, hook and ladders, with carts, trucks, carriages,hose,
buckets, implements, and apparatus thereunto appertaining; and
all furniture and uniforms of any fire company or department organized under any law ofthis State. 14. All arms, uniforms and
accoutrements required by law to bekeptby any person, and also
o n e g u n t o be selected by the debtor. 15. All court houses, jails,
andtown,county, and Statebuildings: allpublicbuildings, grounds,
places, etc. 16. All material purchasedfor use intheconstruction,
aiteration, etc., ofanybuilding, mining claim, etc., not exceeding the
value of $1,000, 17. All machinery, tools, and implements necessary in and for boring, sinking, putting down, and constructing surfaceor artesian welis; also the engines necessary for operating such
machinery, implements, tools, etc.; also all trucks necessaryfor the
transportationofsuchmachinery,
tools, implements,
engines, etc.,
to
Allmoneys,
benefits, privileges,
or immunitiesaccruing, or inanymannergrowingoutofanylifeinsurance
onthelifeofthedebtor, ifthe annualpremiums paiddonot exceed
$500. 19. Shares ofstock in any building and loan association to
thevalueof$1,000. 20. Pensions fromthe United States Government. No article, however, or species of property mentioned in
the value of $1,000. 18.
this section, isexempt from execution issued uponajudgment recoveredforitspriceorupon, ajudgmentofforeclosureofamortgage
orotherlienthereon. (ForHomesteadExemptions, seeHomestead.)
Foreign Corporations. Every foreign corporation doing or
about todo business in this State must file acertified copy of its
articlesofincorporation, orofalegislativeactcreatingit, withthe
SecretaryofState, andacertifiedcopy thereofduly certifiedbythe
Secretaryof this State must be filed with the County Clerk of the
Countywhere its principal place ofbusiness islocated, and also
whereit owns property. Every foreign, corporation must file in
theofficeofthe Secretary ofStatewith suchcertified copy, a designationofsomepersonresiding withinthe State uponwhomprocess,
Issuedbyauthority oforunderanylawofthis State, maybeserved;
andany foreign corporation failing to complywith this provision
canneither maintain nor defend any action in the courts of this
State, or acquire or convey any legal titletoreal property andis
subjectinadditiontoa fineof$500. (SeeCorporations.)
Fraud. (For Fraudulent Debtors, see Arrest.) A n y contract
obtained through fraudis voidable. Consentisdeemed to have
beenobtainedthroughfraudonlywhenitwouldnothavebeengiven
hadsuchcause not existed. Actual fraudconsistsinthe suggestion
asafactofthatwhichisnottrue,thepositiveassertionofthatwhich
Isnottrueinamannernotwarrantedbytheinformationoftheperson
makingitthough he belleves it to be true, the suppression ofthat
whichistruebyonehavingknowledgeofit,andpromisesmadewithoutanyintentionofperforming,oranyotheractfittedtodeceive.
Constructivefraudconsistsofanybreachofduty,whichwithoutan
actual fraudulentintent, gainsanadvantageofthe personinfault
bymisleading
another tohis prejudice. Actual fraudisalwaysa
question offact.
Garnishment. Upon receiving instructioninwriting from the
plaintifforhisattorneythatanypersonhasinhispossession,orunder
biscontrol,anycreditsorotherpersonalpropertybelongingtothe
defendantorisowinganydebtto thedefendant, thesheriffmust
serveuponsuchpersonacopyofthewritandanoticethat such
credits,orotherpropertyordebts,asthecasemaybe,areattached
inpursuance of such writ. Allpersons having any such property
atthetimeofservingofsuch writ, unlessitisdelivered uportransferredorpaid to the sheriff, shall be liable to the amount ofsuch
credits, property, ordebts, until the attachment be discharged, or
anyjudgmentbyhimrecoveredbesatisfied.
Homestead. The homestead consists in the interest of the
claimant,dividedor undivided,Inthedwelling house inwhich the
claimant resides, and in the land on which the sameis situated,
selected, if the claimant be married, from community property, or
theseparatepropertyofthe husband, or, with theconsentofthe
wifefromherseparateproperty.
Whentheclaimantisnotmarried,
butistheheadofafamily,thehomesteadmaybeselectedfromany
ofhisorherseparateproperty. Thehomesteadcannotbeselected
fromtheseparate property ofthe wifewithout herconsent, shown
byhermaking or joiningthedeclarationofhomestead. Thehomesteadisexempt fromexecutionorforcedsale, except insatisfaction
of judgments obtained: 1. Before the declaration of homestead
w a s filed forrecord, a n d w h i c h constitutes liens u p o n the premises.
2. O n d e b t s secured by mechanics' contractors', sub-contractors',
artisans', architects', builders',laborers'ofeveryclass, materialmen's
or vendors' liens upon the premises. 3. On debts secured by
mortgagesonthepremises, executedandacknowledgedbythehus
b a n d a n d wife o r b y anunmarried claimant. 4. O n d e b t s secured
by mortgages on the premises, executed and recorded before the
declaration of h o m e s t e a d w a s filedfor record. In cases not enumerated above,inwhich, a f t e r a j u d g m e n t h a s beendocketed against
thehomestead claimant, andanexecutionforitsenforcement levied
onthehomestead,itmaybeshown byanappraisement appliedfor
to,andorderedby,thecourt,afterproperproceedings,thatthehomesteadexceedsin value the amountofhomesteadexemption. Then
s t e p s m a y b e taken, i f i t c a n b e d o n e without material Injurytothe
land, to divide the propertyand reach the excess. T h e homestead
o f a m a r r i e d person c a n n o t b e conveyed or encumbered unless the
instrument by whichitisconveyedor encumbered isexecutedand
acknowledged by both husband and wife. Homesteads may be
selectedandclaimed: 1. Ifnotexceeding$5,000 invalue, by any
head ofafamily. 2. Ifnotexceeding $1,000 invalue, by another
person u p o n death of either spouse, if homestead is selected from
c o m m u n i t y property or f r o m separate property of spouse joining
therein, title thereto vests in survivor otherwise totheheirs or devisees of the person whose property was selected.
Husband a n d Wife. The husband is the head of the family.
He may choose anyreasonableplaceormodeofliving,andthewife
mustconformthereto.
Inotherrespectstheirinterestsareseparate.
Nettherhusband nor wifehasany interestinthe separate property
of the other, and either may enter into any engagement with the
other, or with any other person, respecting property, which either
mightif unmarried.
Allproperty ofeither, o w n e d b y h i m o r h e r
beforemarriage, andthatacquiredafterwardbygift,bequest,devise
ordescent,istheseparatepropertyofsuchperson. All otherpropertyacquired after marriage by eitherhusband or wife or both, is
c o m m u n i t y property, but whenever a n y propertyis conveyed to a
m a r r i e d w o m a n b y a n i n s t r u m e n t i n writing, thepresumptionisthat
the title is thereby vested in her as her separate property. The
husbandhas the management and control ofthe community property, with absolute power ofdisposal other thantestamentary, providedthat he cannot m a k e a gift of the s a m e or convey the s a m e
without valuable consideration, unless the wifeconsents inwriting.
The community property is notliable forthe contracts of the wife
madeaftermarriage, unless securedbyapledgeormortgagethereof
executedbythehusband. Thehusbandisnotliablefordamagesor
torts c o m m i t t e d b y wifeexcept i n a case w h e r e h e would bejointly
liablewithher ifthe marriagedidnot exist. T h e separateproperty
ofthehusbandisnotliableforthedebtsofthewifecontractedbefore
marriage, a n d the separate property o f t h e w i f e i s n o t liableforthe
debtsofherhusband,butisliableforherowndebtscontractedbefore
oraftermarriage. Ahusbandand wife may holdpropertyasjoint
tenants, tenants by entreaties, tenants i n c o m m o n , or as c o m m u n i t y
property upon death of wife entire community property goes to
husband, whereas on death of husband wife gets one half of community.
Interest. Thelegal rateofInterestis7percentandisdueupon
Judgments after renditionand upon other obligations unless there
isanexpress contractinwriting fixing a different rate. Theparties
mayagreeonahigher rateofinterestandonthe compounding of
same, but personal property brokers m a y charge not to exceed 2
(two) percentpermonth.
Judgments. (See Actions.) Upon filing the judgment roll,
whichisarecordoftheproceedingsinthecase,itmustbedocketed
bytheclerk, whereuponitbecomesalienuponanyrealpropertyofa
judgmentdebtornotexemptfromexecutioninthecounty, whichthe
saldjudgmentdebtorownsatthattime,orwhichhemaythereafter
acquire. This lien continues for five years. unless the enforcement
o f t h e j u d g m e n t be stayed on appeal.
A j u d g m e n t is barredby the
act oflimitation within five years, unless revivedby leave ofcourt
u p o n m o t i o n , or by anaction u p o n t h e j u d g m e n t .
Judgment
must
firstbe satisfied out ofproperty ofthe judgment debtor whichhas
been attached a n d in the custody of the sheriff.
Liens. Mechanics, material-men, contractors, sub-contractors,
artisans, architects, machinists, builders, miners, teamsters, draym e n and all persons and laborers of every class performing labor
uponor furnishing material to be used in or furnishing appliances,
teams and 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 u p o n t h e property upon which they have worked or fur-
nished material, and any personperforminglabor inaminingclaim
hasalienuponthesame,andtheworksownedandusedbytheowners
for reducingthe ores from such mining claim, for the work or labor
done. Thecommoncarrierhasalienupontheluggageofapassenger
forthepaymentofhisfare. One who sellsrealproperty hasavendor's lien thereon. Improvers of personal property, depositaries for
hire, veterinarysurgeons, livery stablekeepers andpersonspasturing
horses or stock, have a special lien, dependent upon possession.
Factors, 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,
boltsand other timber have a lien thereon for the a m o u n t due for
their personal services.
Everypersonperformingworkorlaborin,with,about,oruponany
threshingmachineorengine,horse-power, wagon, orotherappliance
thereof,whileengagedinthreshing,hasalienthereonto theextent
ofthevalueofhisservices,fortendaysafterceasingworkorlabor,
provided,withinthattime,anactionisbrought torecovertheamount
oftheclaim, personsrepairingoralteringanypersonalpropertyhave
a l i e n f o r the reasonable value of such service.
Limitations. Ifrealestateisheldadverselyforfiveyears,such
adversepossession ripensintotitleifclaimantpaystaxesfor5years,
except against infants and persons under disability. The periods
prescribed for the c o m m e n c e m e n t of actions other than for the re-
covery of real property, are as follows: Within five years: (1)
An action upon ajudgment 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. 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
recovera balancedue upona mutual openand currentaccountor
u p o n a n open book account. Within three years: (1) An action
uponaliabilitycreatedbystatute,otherthanapenaltyorforfeiture.
(2) Anaction for trespass upon real property. (3) An action for
taking, detainingorinjuring anygoodsorchattels, includingactions
for the specific recovery of personal property. (4) An action for
reliefonthegroundoffraudormistake, the causeofactioninsuch
by the
casenot
be deemed to have accrued until the discovery Within
aggrievedto
partyofthefactsconstitutingfraudormistake;
twoyears: (1) An actionuponacontract, obligation or liability
Di
1376
BANKING AND COMMERCIAL LAWS-CALIFORNIA
not founded upon an instrument of writing, or founded upon an thereturn oftheinventory itappearsthatthevalueofthewhole
instrumentofwriting executed outofthe State. (2) Anactionona estate does not exceed $1,500, the court maysetapartthewhole
debt,
bligation evidenced by an abstract, guarantee or oftheestatefortheuseandsupportofthefamilyofthedeceased.
c
ertifilciaatbeiolfittiytlor
e; oandsuchactionshallnotbedeemedtohaveaccrued
Protest. (See Billsand Notes.)
until the discovery ofthe loss or damage. (3) An action against
Replevin. Thereisnoaction ofreplevininthisState,butthe
asheriff,coroner,orconstable,uponaliabilityincurredbythedoing action
claim and delivery substantially takesitsplace. The
ofanactinhisofficialcapacity,andinvirtueofhisoffice, orbythe plaintifof
fin anactiontorecoverthepossessionofpersonalproperty
omission ofan official duty, including the non-payment of money
mayatthetimeofissuingthesummons,oratanytimebeforeanswer,
collected upon an execution; but this subdivision does not apply claimthedeliveryofsuchproperty. Anaffidavitmustbemadeby
toanactionforan escape. Within oneyear: (1) Anaction upon t
heplaintiff orbysomeoneinhisbehalfshowingthattheplaintif
astatutefora penalty orforfeiture, whentheaction isgiventoan istheowneroftheproperty,
titledtoitspossession,thatthe
individualortoanindividualandthe State, exceptwhenthestatute propertyis wrongfullydetainedboyrtehne
defendant,theallegedcause
imposing it prescribes a different limitation. (2) An action upon ofdetentionthereof,andthatithasnotbeentakenforatax,asses
astatute,oruponanundertakinginacriminalaction,foraforfeiture mentorfine, orseized underanexecutionorattachment,or so
orpenaltytothepeopleofthisState. (3) Anactionforlibel,slander, seizedthatitisexempt; alsotheactualvalueoftheproperty. Plain
assault, battery, false imprisonment, orseduction, or for injuryto tiffmustalsogiveabondindoublethevalueoftheproperty.
e
orforthedeathofonecausedbythewrongfulactorneglectofanother. defendant maygivetothe sheriffawrittenundertakingindoubTlhe
orbyadepositoragainstabankforthepaymentofaforgedorraised thevalueoftheproperty, andretainthesame,butincasehefalls
check. (4) Anactionagainstasheriff, orotherofficer,fortheescape soto
dothe property isdelivered totheplaintiff. Thirdparties
ofaprisonerarrested orimprisoned on civilprocess. (5) Anaction
affidavit of ownership, claimsuch propertyandsecure
againsta municipal corporation fordamages orinjuries to property mayupon
ts release under bonds. The judgment insuchactionisinthe
caused by a mob or riot. Within six months: (1) An action to ialternativeforareturnofthepropertyorforitsvalueincaseaderecover property seized by tax collector. (2) To recover corpora- livery can not behad.
tion stock sold for delinquent assessment. To actions brought to
Statute of Frauds. Awillmust bein writing,exceptanurecover money orother property deposited with any bank, banker, cupative
will. (See Wills.) An agreement not tobeperformed
trust company, orsavings and loan society, there isno limitation. withinayearfrommakingitmustbeinwriting:alsoaspecialproIfwhenthecauseofactionaccruesagainstaperson,heisoutofthe isetoanswerforthedebt, defraud,ormiscarriageofanother;also
State,theactionmaybecommenced withinthetermherein limited.
afterhisreturntothe State, andif,afterthecauseofactionaccrues, agreementsmadeinconsiderationofmarriageother,thanamutual
promisetomarry. Anagreementforthesaleofgoodsandchattes
hedepartsfromthe State,thetimeofhisabsenceisnotpartofthe orthingsin action at a pricenotlessthan$200, unlessthebuyer
timelimitedforthecommencement oftheaction. And ifthe perand receive part ofthesameoranypartofthepurchase
sonentitled to bringtheaction be, atthetimetheaction accrued. accept
money. Noesateinlandwillpassotherthanleasesnottoexceed
eltheraminor,Insane,Imprisoned foratermlessthanlife, oramar
oneyear,unlessinwriting. Anagreementauthorizingoremploying
riedwoman andherhusbandisanecessary partywithherincompurchase orsellrealestateforcompensation
mencingsuchaction,the timeofsuch disabilityisnotapartofthe anagentorbrokerto
orforacommission. Anagreementbyitstermsnottobeperformed
timelimited forthecommencement ofthe action. Noacknowledg
mentor promise issuficientto takea case out oftheoperation of inthelifetimeofthepromiseortomake,deviseorbequeathbywill
Noevidence isadmissabletochargeapersonuponrepresentations
the statute oflimitations, unless the same isin writing, signed by astothecredit
ofanother,unlesstherepresentationsbeinwriting.
thepartytobecharged. Partpaymentwillnottakethecaseoutof
However where promisor hasreceivedpropertytoapplypursuan
the statute oflimitations. Where a cause ofaction has arisen in to
promise or a discharge ofanobligationinconsiderationofthe
another State, and would bebarred bythestatuteoflimitations of promise,orwhereacreditorpartswithvalueorwherethenewpromthat State,anactioncannotbemaintainedhere. Thereisnolimita- iseissubstitutedfortheolddebt,orwherelevyorexecutionisre
tionuponactionsto
recovermoneyorpropertywith banksortrust leasedorthereisbenefitmovingtopromisefromanypartyorwhere
companies. (See Accounts.)
afactorundertakesforacommissiontoguaranteeasale,contracts
Married Women. When a married woman is a party to an toanswerforthedefaultofanotherneednotbeinwriting. Transfer
action her husband must bejoined except: (1) Whenthe action ofpersonalpropertycapableofmanualdelivery,exceptwineincellars
concerns herseparate propertyincluding tortsfor personal injuries, andtanks.whennotaccompaniedbydeliveryandchangeofposses
homestead property and actions between herself and husband or sionaredeemedfraudulentastothirdpartiesunlessnoticeofintent
whensheis living separate and apart fromher husband byreason tionofsaleisrecorded 5daysbeforetransferismadeinaccordance
ofhis desertion or by an agreementin writing. Amarried woman
may becomea soletraderbythejudgment ofthesuperiorcourtof withlaw.
Supplementary Proceedings. Whenanexecutionisreturned
the
whichshe has resided for six months next preceding unsatisfied,thejudgmentcreditorcanobtainanorderrequiringthe
application.
the countyin
The husband ofthe sole trader isnot liable for Judgmentdebtortoappearandanswerconcerninghispropertybefore
anydebtscontractedbyherinthecourseofhersoletrader'sbusiness thejudgeorrefereeappointedbyhim,also,incaseaftertheissuing
unlesscontracted uponhiswrittenconsent. Amarried womanmay
ofanexccution,uponproofbyatidavitthatthejudgmentdebtorhas
convey without consent ofher husband, and is not liable forthe
propertywhichheunjustlyrefusestoapplytowardthesatisfaction
debts ofher husband, but isliable for her own debts contracted
ofthejudgment,thejudgemaymaketheorder,andinsteadtheref
before or after her marriage. She may contract as a femme sole Ifitappearthatthedebtorisabouttoabscond,hemay,byorderof
soastobindherseparateproperty. Thewife maymake awillof
thejudge,bearrestedandrequiredbyhimtogivesecurityforthe
herseparateproperty. The earnings ofthe wife are not liablefor judgment,orthathewillattendfromtimetotimeduringtheper
the debts ofherhusband.
dencyoftheproceedings,andthathewillnotinthemeantimedis
Mechanics'Liens. (See Liens.)
poseofanyportionofhisproperty,andindefaultofsecurityhemay
Mortgages. Anyinterestinrealpropertywhichiscapableofbeing becommittedtoprison.
inquent,eOnthelastMondayofNovemberofeachyeartaxesbecome
xceptthelastinstallmentoftherealpropertytaxes,and
transferredmaybemortgaged. Amortgagecanbecreated,renewed, delTaxes.
orextendedonlybywritingexecuted withtheformalitiesrequiredin thereafter15percentisaddedfordelinquency;provided,thatifthey
thecaseofagrantofrealproperty. Everytransferofaninterestin
benotpaidbeforethelastMondayinAprilnextsucceeding,5per
realproperty,otherthanintrust,madeonlyasthesecurityforthe centis
On thelastMondayin April,of
performanceofanyact,istobedeemedamortgage,andthefactthat each yeaaddedfordelinquency.
r, alltheunpaid portion oftheremainingone-halfofthe
thetransferwasmadesubjectto defeasanceona conditi may,for taxeson
allrealpropertyisdelinquent,andthereafter5percentis
the purpose ofshowing such transferto be a mortgage, be proved addedfordelinquency;andprovidedfurther,thattheentiretax
(except as against the subsequent purchaser or encumbrancerfor anyrealpropertymaybe paid atthetimethefirstInstallment
valueandwithoutnotice) althoughthefact doesnot appearbythe
due andpayable;andprovidedfurther,thatthetaxesonallpersonalproperty,unsecuredbyrealproperty,shallbe
terms of the instrument. A mortgage isa lien upon everything aboveprovidedis
dueandpayable immediatelyaftertheassessmentofsaidpersonal
thatpassesbyagrantoftheproperty. Amortgagedoesnotentitle
themortgageetothepossessionoftheproperty. Theassignmentofa property is made. Public Utility corporationsaretaxedforthe
debtsecured by a mortgage carries with itthe security. When a support ofthe State otherpropertyistaxedforcountyandcity,
mortgage issatisfied orthe mortgage indebtedness paid, the mortEvery person over the age ofeighteenyears,ofsound
gagee must satisfy the mortgage of record under penalty.
purposes. bylastwill,disposeofallhisestate,realandpersonal.
mortgageemay foreclose theright ofredemption ofthe mortgagee, mind,may,
Amarriedwomanmaydisposeofallherseparateestatebywillwithout
Wills.
unlessexpresslystipulated themortgageisnot apersonalobligation theconsentofherhusband,andmayalterorrevokethewillinlike
on part ofmortgagor.
mannerasifsheweresingle. Herwillmustbeexecutedandproved
Notes and Bills of Exchange. (See Bills and Notes.)
Everywillotherthananuncupative
Pledge. (SeeCollaterals.)
willmust be in writing, andeverywillotherthananholographie
willandanuncupativewill,mustbeexecutedandattestedasfollows:
PowersofAttorney. Anattorneyinfactmaybeappointedfor inlikemannerasotherwills.
Itmustbesubscribedattheendthereofbythetestatorhimself,
anypurposeforwhichanagencycanlawfullybecreated. Powersof orsomepersoninhispresence,
byhisdirectionmustsubscribe
attorneycanonlybeconferredbyaninstrumentinwritingsubscribed hisnamethereto. 2. Thesubscrand
iptionmustbemadeinthepresence
bythe principal which must particularly specify the powers con- 1.
oftheattestingwitnesses, oracknowledgedbythetestatortothem
ferred. Ifthe instrument contains a power to convey or execute tohavebeen
madeby himorbyhisauthority. 3.Thetestator
Instruments affecting real property, itmust be duly acknowledged must,atthetimeofsubscribingoracknowledgingthesame,declare
and mustberecordedinthecountywithinwhichtherealproperty
attesting witnesses thatthe instrumentishiswill,and4.
tobeconveyedoraffectedissituate. Nosuchinstrumentwhichhas tothe
Theremustbetwoattestingwitnesses,eachofwhommustsignhis
beensorecordedisrevokedbyanyactofthepartybywhomitwas nameas a itness atthe endofthewill,atthetestator'srequest,
executed, unlessthe Instrument containing such revocation isalso andin his wpresence
andin thepresenceofeachother. Anboloacknowledged or proved, certifled, and recorded inthe same office graphicwillisonethatisentirelywritten,dated,andsignedbythe
inwhichtheinstrument containingthepowerwasrecorded. When
handofthetestatorhimself. Itissubjecttonootherform,andmay
an attorney in fact executes an instrument transferring an estate bemadeinoroutofthis
State,andneednotbewitnessed. Awitinrealproperty,hemust subscribethenameofhis principaltoit. ness to a will should always write his nameandresidence. All
andhisownnaineasattorneyinfact.
devisesorgiftstoasubscribingwitnessarevoldunlesstherearetwo
other
competent
s
u
b
s
c
r
i
b
i
ng witnesses. Nowillmadeoutofthis
Probate Law. (See Administration of Estates, Claims against
StateisvalidasawillinthisState,unlessexecutedaccordingtothe
Estatesofdeceasedpersons, Descentand Distribution.) Thesuperior provisionsofthecode,exceptthatawillmadeinaStateorcountry
courthasjurisdictionofproceedingsinprobate,andsuchproceedings inwhichthetestatorisdomiciledatthetimeofhisdeath,andvalid
mustbeinstituted (1) inthe countyin whichthe decedentwasa
resident; (2) inthecountyin which he may have died, leaving asawillunderthelawsofsuchStateorcountryisvalidinthisState
Willsprovenoutofstatemayberecorded
estatetherein, he notbeing a resident of the State; (3) in the
county
in whichanypartoftheestatemaybe,ifthedecedentdied
Bequests for charity are void unless made morethan30days
out ofthe
State and was not a resident. (4) In any countyin in
countywhere
handmustinnocaseexceedmorethanonethirdoftheastotestatorhasleftover
personalproperty.
estate.
whichanypart ofthe estate maybe, orthe decedent not beinga beforedeat
resident ofthe Statenorleaving anestateinthe
Willsarerevokedbymarriage
county ofdeath.
(5) In other cases whereapplicationis first made, anypersonin- unlessprovisionforthesameoranintentionnottoprovideclearly
terestedmaypetitionforprobateofawillormaycontestsuchpro- estateunlesstherearenolegalheirs.
batewithin one year. Aninventory and appraisementis required
ofthe executor or administrator within three months.
Uponthe
return oftheinventorythecourtmaysetapartforuse ofthesurappears.
vivinghusband or wife, or ofthe minor children, allthe property
exemptfromexecutionincludinganyhomesteadselected, providing
thesamewas selectedfromthecommonpropertyorfromtheseparateproperty ofthe personselecting orjoininginthe selection of
the same. Ifnonehasbeenselected, thecourt
must select, designate andset apart and cause tobe recorded a homestead forthe
useofthesurvivinghusband orwife, orofthe minor children, or
iftherebenosurvivinghusbandorwife,thenfortheuseoftheminor
children out ofthecommon property, or ifthere be no common
property,thenoutoftherealestatebelongingtothedecedent. Propertysosetapartisnot subject tofurtheradministration. Ifupon
BANKING AND COMMERCIAL L A W S - C O L O R A D O
SYNOPSIS
T H E
L A W S
OF
1377
Banks, State. Any number ofpersons, not lessthanthree, m a y
engageinthebusiness ofbanking: thecapitalstockmustnot beless
thanfrom$10,000 to$50,000dependentuponpopulation, allofwhich
mustbepaid in cash beforecommencing bankingbusiness, and cer-
OF
tificate thereof filed.
Generally no bank m a y take as security a
lienonany part ofits capital stock; nor take as security a lien on
any part ofthecapitalstock ofother banks; nor take as security a
lienfor any personon more than 25per cent ofthetotal sharesof
COLORADO
a n y o t h e r bank: nor m a y it hold or purchase any portion ofits o w n
stock, or of the capital stock ofany other corporation, unless such
purchase is necessary to prevent loss upon a debt previously conR E L A T I N G
tracted in good faith, or in other peculiar circumstances.
TO
Stock so
purchasedmustbe soldwithin threeyears, andsooner ifthiscanbe
BANKING
AND
COMMERCIAL USAGES
Revised byMessrs. GARWOOD AND GARWOOD, Attorneys at Law.
Denver.
(See CardinAttorneys' List.)
d o n e without impairing the bank's investment. Shareholders in
banks, savings banks, trustdeposit andsecurity associationsshallbe
heldindividually responsible fordebts, contracts,andengagementsof
saidassociation in doubletheamount of thepar value of the stock
o w n e d b y t h e m respectively. A n y banker, b a n k officer or employee
whoreceivesmoney or propertyafterheshallhavehadknowledgeof
the insolvency ofsaidbank, shall bedeemedguilty ofafelony, and,
onconviction, punishedby imprisonmentinthe penitentiary for not
A c k n o w l e d g m e n t s . Of deeds a n d instruments concerning real
estate, m a y be taken as follows
1. Within this State, beforeanyjudge, clerk, or thedeputyclerk
ofanycourtofrecord, clerk, andrecorder ofanycounty, orhisdeputy,
ornotary public, orbeforeanyjusticeofthepeacewithinhis county.
2. O u t of this State a n d within the United States before the
secretary of any such State or Territory, the clerk o f a n y court of
record, a n y notary public, or any commissioner of deeds for any
such foreign State or Territory appointed under the laws of this
State; before any other officer authorized by the laws of any such
StateorTerritorytotakeandcertify such acknowledgment:provided,
there shall be affixed to the certificate of such officer, other than
those above enumerated, a certificate by the clerk of s o m e court
ofrecordofthe county, city ordistrict wherein such officer resides,
u n d e r t h e s e a l o f s u c h court, as totheofficialcapacity, truesignature
andauthority of the person certifying such acknowledgment.
3. O u t of the United States, before any judge, clerk, o r d e p u t y
clerk, o f a n y court ofrecord o f a n y foreignkingdom, empire, republic
state, principality, province, colony, island possession or bailiwick,
before the chief magistrate or other chief executive officer of a n y
province, colony, island possession or bailiwick, before the mayor
orchiefexecutive officer o f a n y city, town, borough, county or municipal corporation, having a seal, or before a n y ambassador, minister, consul, consular azent, charge d'affaires, commercial agent,
or a n y vice consul, etc., or any diplomatic, consular or commercial
agent or representative, or deputy of any thereof, of the United
States or a n y other government or country appointed to reside in
the foreign country or place where the acknowledgment is made,
eachandall certifying same under his official seal.
4.
O u t of the State, and within a n y colony, island possession
orbailiwick of the United States, before a n y such officer as above
enumerated in relation to acknowledgments in foreign countries
(except ambassadors, etc.) or before any notary public. having a
seal.
Actions. T h e distinction between actions at l a w a n d suits in
equity is abolished. Ail actions m u s t b e prosecuted by the party
inInterest, and are governed by acodeofcivilprocedure.
Administration of Estates. A l l d e m a n d s not exhibited in one
year are barred, unless such creditor can find other estate of the
deceasednotinventoried, saving, however, tofemmescovert, persons
ofunsound minds. imprisoned or beyond the seas, the term ofone
yearaftertheirdisabilityhasbeenremoved to exhibit their claims.
Creditorshaving liens on the property ofthedecedentcannot foreclose for one year unless permitted by the court and i n n o event
until the claim has been allowed. Administration is granted to
surviving husband or widow, or next of kin of anintestate,ifthey
willacceptorarenotdisqualified:Ifno such relative appears within
twentydays afterdeath of intestate, administrationmaybegranted
to a creditor; if no creditor appears in ten days after twenty days
fromdeathofintestate, orifnextofkinfileswrittenrelinquishment.
countyJudgemayselect administrator. In counties having a population of more than 100,000 on default of relatives administration
I sAmgaednetb.y publicadministrator.
(SeePartnerships.)
Aliens. No restrictionsastoaliens.
Arbitration. Differences m a y be submitted to arbitration by
consentofthepartiesintheformprescribed by statute,andajudgentered by theclerk of the District Court upon the
mentmaybe
finding ofthearbitrators.
Arrest.
Imprisonmentfordebt. exceptincaseswhereonerefuses
to deliver up his estate for the benefit of his creditors, or in cases
oftortorwhere thereisastrong presumption offraud,isabolished.
Incivilactionsfoundedupontort, where thefindingisinfavorofthe
plaintiff a n d the verdict states that defendantwas guiltyof fraud:
malice, or willfuldeceit, execution may issue against the body of
thedefendant, but not where the defendant shallhave been convicted in a criminal proceeding for the same wrong. Imprisonment shall not exceed one year, and the prisoneris released upon
p a y m e n t o f t h e debt. T h e writ o f n e exeatisgranted underproper
circumstances. (See FraudulentPurchasers.)
Assignment. Assignments for the benefit of creditors m a y be
madeinaccordancewithprovisionsoftheAssignmentAct. Assignments ofwages not covered at the time of the assignment, or of
othersumstobecomedue totheassignor,areinvalidunlessrecorded
withtherecorderofthe countywhere thewagesaretobeearned.
orthesumsare tobecomeduc, withinfivedays fromdatethereof.
Iftheassignorisamarried man orwoman, residing with the wife
orhusband, he or she mustjoinin the assignment. Therearealso
provisions regulating assignments to wage-brokers andothers.
Attachments. In actions on contracts, express or implied, the
plaintiffmayhave thedefendant'spropertyattached, upon filinga
bond indouble the amount sued for, with affidavit ofplaintiff, his
agentorattorney, setting forththeamount andnature ofthedebt
claimed, andone or moreof the following grounds ofattachment:
1. That defendant is a non-resident. 2. A foreign corporation.
3. Acorporation whose chief office or business is out ofthisState.
4. Isevading service, orhas beenabsentfrom Stateforfour months,
whiledebthas been overdue. 5. Is about to remove his property
out of State. 6. Has fraudulently conveyed, or (7) fraudulently
concealedor removedor disposed ofhis property, or(8) and (9) is
abouttodoeither, orhasdepartedor isabouttodepartfromthis
State, with the intention of having his effects removed from this
State. 10. Has failed or refused to pay thepriceorvalueofany
articledeliveredtohimto bepaidfor upondelivery, or(11) ofany
workorlaborperformed,orforanyservicerenderedbyplaintiff,for
defendant,tobepaidforuponcompletion. 12. Thatthedefendant
fraudulentlycontractedthedebt,orprocuredthemoneyorproperty
morethantwentyyears, o r b y a f l u e o r n o t m o r e t h a n $2,000, or both,
and in addition shall be individually responsible for the property
received.
Failure of the b a n k or banker within thirty days after
receiptofsuchmoneyorpropertyisprimafacieevidenceofknowledge
ofthe insolvency at the time of such receipt. Loansto any one
Individual or corporation are limited to 20 per cent ofthe paid in
stockand surplusofthebank. Loans securedonreal,estate limited
t o 2 5 p e r cent oftotal interest bearing securities and to a period of
three years, but further loans allowed secured by first mortgage on
real estate worth double amount of loan limited to 50 per cent of
savingdepositsandtoaperiodoffiveyears. N o b a n k m a y e n g a g e i n
tradeorcommerce; oracquirerealty,exceptsuchasisnecessaryforits
business or such as is necessarily acquiredin the protection or satis-
factionofpreviouslyexistingloansmadeingoodfaith. Anyrealtyso
acquiredmustbesoldinfiveyears, or sooner ifpossible. Nodirector
mayborrowmoneyinexcessof10percentofthecapitalandsurplus.
without the consent of a majority of the directors other than the
borrower. No b a n k shall loan to a n y officer or employe thereof.
Allbanks except National Banks, are under the supervision of the
State B a n k Commissioner w h o examines each institution at least
twice yearly. I f h e finds capital impaired, he requires the b a n k to
makeupdeficiency, or takes possession for purposes ofliquidation,
ascircumstancesmavrequire. Insolventbanksmaybeplacedincontrol o f t h e State B a n k Commissioner. Usually no receiver c a n b e
appointed, nor c a n a b a n k m a k e anassignmentforcreditors. Every
b a n k makes reports of its condition to the commissioner five times
yearly. No bank candobusiness without a certificate of authority
f r o m the commissioner. Savings banks are subject to the state
banking law under a number of special provisions and restrictions.
B i l l s o f E x c h a n g e . (SeeCommercialPaper.)
Bills o f L a d i n g a n d P r o m i s s o r y N o t e s . (SeeCommercialPaper.)
Chattel M o r t g a g e s w h e n recorded are good for two years where
sumsecureddoesnotexceed$2,500;forfiveyears,whensumdoesnot
exceed $20,000, and not exceeding ten years where s u m secured
exceeds $20,000; b u t i f t h e s u m securedbegreaterthan$2,500mortgagee m u s t annually record statement stating that the mortgage
secures a b o n a fideIndebtedness, the portion which has beenpaid.
a n d the amount still due. Chattel mortgages m a y be extended
after maturity, but not more than thirty days after maturity,
byfiling an executed instrument of extension of mortgage with the
county recorder. As between the parties thereto, all chattel mortgages are good until the indebtedness is paid or is barred by the
statue of limitations. Mortgages of stocks of goods which reserve
possessionand powerofsale tomortgagor, are vold asagainst creditors a n d b o n a fide purchasers. Disposing of mortgaged property
islarceny. Chattel mortgagee, his agent or attorney, n o w allowed
thirty days after maturity of debtin which to take possession of
mortgaged chattels, and during said thirty days, or until possession
is t a k e n b y mortgagee, his agent or attorney, the mortgagor shall
h a v e t h e r i g h t t o p a y s a i d d e b t a n d h a v e mortgagedischarged as if
debt h a d been paid at maturity. Chattel mortgages, securing the
purchase price of a n y article m a y , at a n y time within thirty days
afterthematurityoftheindebtedness, beextendedby themortgagee
foraperiod notexceeding two years, andforlikeperiodsthereafter.
Chattel mortgages u p o n household goods used by the family, w h e n
m a d e by husband or wife residing with the other, must be m a d e
b y h u s b a n d a n d wifejointly.
Collaterals. Persons holding stocks incorporations as collateral
security not personally llable as stockholders for corporate debts.
A pledgee of stock m a y nevertheless represent s a m e at corporate
meetings. Transfer of stock either in pledge or otherwise, m u s t b e
noted o n t h e books of the c o m p a n y within 60 days or the transfer
is void for some purposes.
C o m m e r c i a l Paper. To be negotiable, aninstrument must con.
tainanunconditional o r d e r o r p r o m i s e t o p a y t o order, or to bearer,
acertain s u m of m o n e y on d e m a n d , or at a fixed or determinable
time or times. T h e instrument m a y authorize that u p o n default
ofpaymentofanyinstallment,orofinterest, thewholeshallbecome
due, a n d i n case of non-payment, the sale of collateralsecurities,
or confession of judgment, or waive benefit of any law intended
for the advantage of the obligor.
An
instrument
payable
o n
contingency is not negotiable. The date expressed is prima facie
the true date.
O n e in possession of an incomplete Instrument has
prima facle authority to fill in the blanks. but authority mustbe
strictly pursued.
Consideration is prima facie presumed.
A
pre-
existingdebtis a valuable consideration. Anaccommodation party
is liable to a holder for value with notice. T w o or more payees,
unless partners, must all indorse unless o n e h a s authority for all.
A n i n s t r u m e n t payable to a person as cashier or other fiscal officer
o f a b a n k o r corporationisdeemedprimafacie payable to thebank
orcorporation, and may be indorsed by the corporation or by the
officer.
For one to be a holder i n d u e course the instrument must
be complete and regular, and taken in good faith for value before
overdue, and without notice of any infirmity in the instrument
ordefectintitle. Holderisdeemed primafacieholderin due course:
butwhenthe titleofa personwho has negotiateditisshown to be
defective, the burdenis upon the holder to prove himself a holder
in due course. A qualified indorser warrants the genuineness of
the instrument; t h a t h e has a good title, a n d thathe has no knowl-
edgeofanyinvalidity. AnunqualifiedIndorserwarrantstheinstrument valld and subsisting. One Indorsing an instrument negotiable by delivery is liable as Indorser. Except when excused,
presentment for payment, or acceptance, on the day when due is
necessary to charge drawer or indorser of an instrument.
Present-
ment must be made ondue day, and notice of non-acceptance or
non-payment given on next business day to all parties primarily
llableunlessonehasauthorityforall. Everynegotiableinstrument
is payable at the time fixed without grace. Waiver of protest is
deemed awaiver offormal protest, presentinent, and notice ofdis-
oftheplaintiff. In justicecourts, the fact that thedebtisforfarm
products, house rent, household furniture and furnishing, fuel, gro-
honor. Protestis required only in case ofdishonored bills appearingontheirfacetobeforeign. Itisoptional in case ofother negotiable instruments. Bills d r a w n a n d payable within this State are
orhis family,isadditional ground forattachment. Garnisheeprocesswill issuein aid of attachment when money or property ofthe
debtorisfound in possession of third persons; property ofnon-residentsandabscondingdebtorscanbeattachedasinmostotherStates.
Inland;othersare foreign. Parties secondarily llableare discharged
byextension of time of payment. Payment byapartysecondarily
liable, unlessanaccommodationparty,doesnotdischargetheInstrument, buthe may again negotiateit. A qualified acceptance dischargesdrawerandindorserunlesstheyassent. Assentispresumed
ceriesandprovisions, clothing and wearing apparel for thedebtor
88
1378
BANKING
A N D
COMMERCIAL L A W S -
after notice, unless they dissent. Holder can refuse to receive a
qualified acceptance.
No presentment for paymentis necessary
afternon-acceptance. A notedrawn to maker's orderisnot complete unless indorsed by him. A check must be presented within
areasonable time or drawer willbe discharged to the extent ofthe
losscausedby thedelay. The bankisnot liable to the holderuntil
Itaccepts or certifies the check. W h e n n o t otherwise providedby
thisact, thelaw merchantprevalls. Thisactapplies onlytoinstruments executed on or after July 20, 1897. All instruments falling
due on Sundayor holidayare payable the next business day. In
Denver, during June, JulyandAugust, Saturdayfromtwelveo'clock
noonuntiltwelvemidnight isaholiday,but negotiable instruments
fallingdueon Saturday are payable and protestable on Saturdayor
nextbusiness day at the option of the holder. The provisions con-
COLORADO
thentohisfatherand mother,shareandsharealike,anditonedeas,
then to the other; if no father or mother, thentohisbrothersand
sisters, and to descendants of brothers and sisters who aredead.
the descendants, collectively, taking the share oftheirimmediate
ancestorsinequal parts. 3. Ifnoneoftheforegoingliving,thento
the grandfather, grandmother, uncles, aunts and theirdescendants
the descendants taking collectively the share oftheirimmediate
ancestors in equal parts. 4. If none of the relatives aboveenu-
meratedbeliving,thentothenearestlinealancestorandtheirdescend-
ants, thedescendantscollectivelytakingtheshareoftheirimmediate
ancestors in equal parts. All posthumous childrenordescendants
ofthe intestate, inherit as if born in the lifetimeofthe intestate;
and all children of the half blood and all legallyadoptedchildren
shall Inherit as children of the whole blood. Illegitimatechildren
cerning commercial paper in this state are practically the same as
inallstateswheretheNegotiable Instrumentsact hasbeenadopted.
Conveyances. No jointtenancyinreal property unless expressly
declared in the deed, except in certain particular cases. Unless
so declared grantees shall be deemed tenants in c o m m o n . Lands
not inpossession m a y be conveyed. Not necessary for wife to join
in deed except in a conveyance of or a mortgage of ahomestead,
entered as such of record. Witnesses are unnecessary.
Seals
arenotnecessarybutaprintedorinkseal isadvisable. Unacknowledged deeds aredeemednoticefrom thedate offiling but they can
notbereadinevidenceunless subsequentlyacknowledgedorproved,
Inherit ifparentssubsequently intermarry.
unless they are on record for over thirty years. (See Acknowledg-
as provided by law. Debtor or legal representativehassixmonths
to redeem land from sale under execution. Judgment creditorhas
three months after expiration of said six months. Judgmentscan
ments; H u s b a n d a n d Wife.)
Corporations.
Three or more persons m a y form a corpora-
tionby for
filin
g a cerorganized,
tificate in amount
the proper
ffices, stating
the name,
objects
which
of o
capital
stock, number
of
shares (not less than $1.00 or more than$100.00pershare), termof
existence (not to exceed twenty years,exceptinparticularcases),
numberofdirectors(notless than threeor more than thirteen),and
namesofthoseto managethecorporationforthe first year, theplace
whereprincipalofficeistobekept,andcountiesinwhichitsitsbusinessis
tobecarried on. Ifpart ofthecompany'sbusiness isto becarried
onbeyond the limits ofthe State, that fact shall also be stated in
the certificate. Feefor filing Articles of Incorporation of domestic
companies is $20, and 20 cents on each thousand dollars in excess
of $50,000. Foreign corporations $30, and 30 cents on each thou-
sanddollarsinexcessof$50,000representedbycapital,propertyand
assets employedand located in Colorado. Directors ofamining or
manufacturingcorporationcannotencumbertheminesorplantofsuch
corporationuntilthequestionhasbeensubmittedtothestockholders
andamajority voteofallthesharesofstockhas beenmadeinfavor
of such proposition; and such mortgage or encumbrance without
such consentis absolutely vold. Cumulative method of balloting
for directors is permitted, Stockholders are liable for coporate
debts to theamount unpaid upon the stock, except that stockholders in banks, saving banks, trust, deposit, and security associations are individually responsible indouble the amount of the par
valueof their stock. W h e n thestock becomes fullypaid up, a certificate to that effect should be filed. The directors are required
annually, and within sixty days from January 1st, to file a repert
statingtheamountofthecapitalstock, the proportionactuallypaid
in, and the amount of existing debts, together with many other
particulars. Afailuretofilesuchreportmakesallthedirectorsand
officers ofthe company jointly and severally liable for all thedebts
of the company contractedduring the year next preceding the time
whensuch report should havebeenfiled, anduntilsuch reportshall
bemadeandfiled, and subjects president andsecretary to afineof
not less than $1,000. No meetings oftheboard ofdirectors c a n b e
heldoutside the State unless so provided by the Articles of Incor-
poration. Corporations may be dissolved by a two-thirds vote of
the entire stock. A corporation under the laws of Colorado, may
extend its charter by special meeting of the stockholders, called
by 10 per cent of the entire capital stock. Corporate life shall be
renewed for entire term, not exceeding twenty years. Foreign
corporations doing business in this State are not allowed a longer
termofcorporate existence than domesticcorporations of like character, but mustfile renewal certificates and payfees therefor in the
same manner asdomestic corporations, provided that such renewal
mustnot extend thelifeof theforeigncorporationbeyond the term
fixed by the State where it was organized. Generally no foreign
corporation shallhave or exercise any corporate powers or hold or
acquireanyrealorpersonalproperty, franchises,rights, or privileges,
orbepermittedtodoanybusiness orprosecuteordefendanysuit in
thisState,untilithasfilledintheproper officescopyofitscharterand
incorporation act, and designated an agent upon w h o m service of
processcanbe made, and until all prescribedfees including license
tax, shallhavebeenpaid, and untilIssuanceofa certificate setting
forthsuch fullpayment.
Inadditiontoallotherfeesandtaxes, everydomesticcorporation
shallpay on orbeforethefirstday o f M a y of each year, anannual
StatecorporationlicensetaxtothesecretaryoftheStateofColorado,
oftwocents uponeach onethousanddollars ofitscapitalstock, and
every foreign corporation shallpayat thesamerateuponthatpro-
portionofits capital, property and assets located and employed in
Colorado.
Other provisions of the Revenue bill, approved March 22, 1902,
a n d this act regarding annual reports, assessment of tangible and
Intangible property, etc., too voluminous to be quoted, m a k e i t
advisable that care should be exercised by both domestic and foreigncorporationsoperatinginthe State to acquaint themselvesfully
withitsrequirements (SeeGuaranty Companies; TrustCompanies;
Transfer of Corporation Stock.)
Courts. Justices ofthepeacehavejurisdictionin matters involving less than $300, county courts in matters involving less than
$2,000, except in the administration of estates, wherejurisdiction
is unlimited Thedistrict court isthe court ofgeneral jurisdiction.
T h e supreme court isthe court of final appeal, and also has some
original jurisdiction, as in cases of habeas corpus, mandamus and
other remedial writs.
DaysofGrace. Areabolished. (See Commercial Paper.)
Depositions. Thedeposition of a witness out of the State shall
be takenupon commission issued by the clerk of the court where
thesuitispending, onthe application ofeither party, on five days'
byacopy of the interrogatories tobe attachedto the commission.
Itmaybeissuedtoapersonagreeduponbythepartiesortoanyjudge
orjusticeofthepeace,ortoacommissionerappointedby thegovernorofthe State to take affidavits and depositions in other States
and Territories, orto anotarypublic. The adverse partymay file
a n d have attached to the commission such cross-Interrogatories
as he may desire. Partles may agree by written stipulation to
previous notice to the other, which notice shall be accompanied
takethedeposition orally, or, uponpropercause shown, m a y obtain
anorder of court directing it to be so taken. Depositions c a n b e
t a k e n at a n y time after starting suit.
DescentsandDistributions. Theestateofanintestatedescends
one-half to the surviving husband or wife, and the residue to the
surviving children and descendants of children, if any; if none,
Except
thenthewholedescendstosuchsurvivinghusbandorwife.
enumerated
as
the estate of every intestate descends: 1. To his
childrensurviving, andthedescendantsofhischildrenwho aredead,
the descendants collectively taking the share which their parents
wouldhavetakenifliving. 2. Ifnochildrennortheirdescendants,
D o w e r . C o m m o n law Dower and curtesy are abolished,assuch.
butstatutory halfofhusbandandwifeineachothersestateisgiven
inlieuofoldcommonlawdower and curtesy. (See Statules.)
Executions. Executions maybeissuedwherenoappealistaken,
andwhenplaced in the hands ofan officer becomealienuponal
personalproperty ofthe debtor not exempt, inthecountytowhich
itisissued, and it maybe directed to thesheriffofanycountyin
theState. Executionsmayissueuponjudgmentsatanytimewithin
twentyyearsfromthedateofentrybutfromandaftertwentyyears
fromtheentry ofjudgment, itisconsideredsatisfiedunlessrevived
be made a six yearlien onreal estate ofdebtorbyfilingtranscript
with recorder ofthe county where thereal estateissituated.
Exemptions. Homestead, consisting oftownhouseandlotof
lots,orofanyfarmtothevalueofnottoexceed$2,000,isexempt
when such homestead has been enteredof recordas such, andis
occupledbyahouseholder,theheadofafamily. Personalproperty
exempt includes all wearing apparel ofthe debtor andhis family
pictures, school books and library, bedsandbedding, stoves,cook
Ingutensils, andhouseholdfurniture,not exceeding$100;provisions
andfuelfor six months; tools, Implements, orstockintrade,upto
$200;onecowandcalf,tensheepandnecessaryfoodforsixmonths:
workinganimals, up to $200; the libraryandimplementsofapro
fessional man up to $300; one bicycle and one sewingmachine.
Personsnottheheadsoffamiliesareentitledtotools,workinganimals,
and stock in trade, not exceeding $300 invalue. Whendebtor
ishead of family, or wife of head offamily, 60percentofwages
dueat time of levy, under execution, attachment, orgarnishment.
Isexempt, when such family resides inthe Stateandisdependant.
wholly orpartially upon such earnings forsupport. Ifsuchwages
donotexceed $5 perweekat thetimeoflevy, theyareentirely
exempt.
Fraud. Parties to any fraudulent sale of any lands, goodsor
chattels, or who conceal, secrete, remove or disposeofanygoods
or chattels, or are parties to any bond, sult, judgment, orexe
cution, contract or conveyance had made, or contrivedwith
Intenttodeceive anddefraud, ordefeat,hinder,ordelaycreditors:
arecriminally liable. Onewho purchases goods oncreditunder
anassumed or fictitious name with intent to defraud theseller
orhaving purchased goods on credit shall, with intent todefraud
theseller, sell,hypothecate,orotherwisedisposeofthemoutofthe
usual course of business, or secrete himself, or abscond,shallbe
guiltyofa misdemeanor.
Frauds, Statute of. Thefollowingmustbeinwriting: Con
tractsforleasing of land for period longerthanoneyearorfor
thesaleoflands, orany Interestinlands;everyagreementwhich
byits terms isnottobeperformedwithinoneyear;everyspecial
promise toanswerforthedebt,defaultormiscarriageofanother:
everyagreement, promise, orundertakingmadeuponconsideration
ofmarriage, exceptmutual promises tomarry,andeverycontract
forthesaleofanygoods,chattels,orthingsinaction,fortheprice
of$50ormore,unlessthebuyeracceptsandreceivespartofsuch
goodsor theevidenceofsomeofthem,orthebuyeratthetime
payspartofthepurchasemoney. (SeeSalesofPersonalProperty.)
Garnishment. (SeeAttachments.)
HusbandandWiferetaintheirseparateproperty,real,personal
andmixedownedatmarriage,andanysuchpropertywhichshall
cometoeitherofthembydescent,devise,orbequest,orthegift
Suchproperty
ofthe
for theirownseparateuse.
ofanyperson,
ontrade
Wifemaycarry
wifeisnotllableforthehusband'sdebts.
orbusiness,sueandbesued,contractdebts,andexecutepromissory
notes,bonds, bills ofexchange,andotherinstrumentspreciselyas
ifsoleandmayconveyrealestatewithoutthehusbandjoiningin
thedeed. Anychattelmortgageupon,orsaleof, thehousehold
goodsusedbythefamily,andanyconveyanceof,ormortgageupon.
ahomestead,andanyassignmentoffuturewages,orsumstobecome
dueinthefuture,whenmadebyhusbandorwiferesidingwiththe
other, must be joined inbythatother. Amarriedwomanmay
makeawill, butneitherhusbandnorwifeshalldeviseorbequeath
m
orethanhalfofhisorherpropertyawayfromtheotherwithout
theconsentinwritingoftheother,executedafterdeathofthetestator
oroftestatrix. Marriage revokes awill previouslymade. The
husbandisliableforthedebtsandliabilitiesofthewifecontracted
beforemarriage tothe extent oftherealandpersonalproperty
hemayreceivewithorthroughher,orderivefromthesaleorrent
ofherlands,andnofurther. Theexpensesofthefamilyandthe
educationofthechildrenarechargeableuponthepropertyofbeth
husbandandwile,andinrelationtheretotheymaybesuedjointly
orseverally. Eitherhusbandorwifelivingtogethercanseparately
declareproperty of record in the nameoftheother"AHome
stead,"byanentryofrecordoverhisorhersignature. Neithercan
mortgagenorconveyhomesteadwithoutthesignatureoftheother.
Interest. Thelegalrateis8percent,butanyotherratemar
befixedbyagreement. Thesameisallowedonoverduebonds.
nftmyu,
tc
oiwpn
,i
anndd
y
b
irlrl
,sp,r
odmoi
srolr
yeneovt
eesn,
as
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urdtg
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as
nt
an
ts
he
ik
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ce
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im
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te
eu
so
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al
ee
bt
ednessbear6percentinterestfrompresentation. Twelveperce
isthemaximuminterestratefixedbytheusurylaw,ofthisstale
withcertainexceptionswhereahigherrateisallowedtolicensed
Judgments. Atranscriptofjudgmentmaybefiledintheoffce
brokers, banks and some others.
ofthecountyclerkandrecorderofanycountyintheState,and
thereuponsuchjudgmentbecomesalienuponallrThelienhoidsfor
ealproperty
o w n e d b y thejudgmentdebtorinthat county.
ledandsuccessivetranscripts
sixyearsfromthedateuponwhich
m
aybefiled.) Anunsatisfiedjudgmentshouldberevivedevery
twentyyears.
(See Executions.)
Limitations. Actionsfortherecoveryoflandmustbebrought
withintwentyyearsafteraccrualofright.Actionsfortherecovery
oflandsactuallyoccupiedbyanotherunder connectedtitlededuc
Ibleofrecordorundertaxorexecutionorothersaleorderedby
courtmustbebroughtwithinsevenyearsafterpossessiontakes
Iofftaict
re
e.
dafA
tc
et
rutaalkpionsgspeossssieosnsoifo
rn
uy
ne
sa
fr
rs
ou
mn
dd
aetre
ln
a,
ns
dt
fa
ot
ru
st
ee
ve
ql
ue
ii
rs
ia
nc
gq
tu
ii
tl
c
l
a
i
m
a
n
d
c
o
l
o
r
o
f
t
i
t
l
e
w
i
t
h
p
a
y
m
e
n
t
o
f
a
l
l
t
a
x
e
s
f
o
r
s
a
i
d
p
e
r
i
tithstitutesthepossessorowneraccordingtothepurportofhispapoedr
same true vacant unoccupiedlands,unlesssome
withabetterpapertitlepaysthetaxesforoneormorevearsduring
BANKING AND
:
such term of seven years.
1379
COMMERCIAL LAWS-CONNECTICUT
Actions ofdebt founded u p o n contract.
expressorimplied; upon judgmentsofcourts not courtsofrecord;
forarrears of rent; of assumpsit or case founded o n a n y contract:
forwasteandtrepassonlandandforreplevin, m u s t b e b e g u n w i t h i n
sixyears afterthe cause of actionaccrues. Actionsagainst sheriffs
a n d coroners, for liability Incurred by t h e m in their official c
Ity,shallbebroughtwithinoneyearafterthecauseofactionaccrues,
also actions for assault a n d battery, false Imprisonment, slander
a n d libel; also actions for penalties orforfeitures ofpenal statutes
Bills of relief for fraud m u s t be filed within three years afterdiscovery, i n c a s e of a trust not cognizable by the courts of c o m m o n
witnessedor by a formalannulment thereof. The propertydevised
b y w i l l m u s t b e administered by the county court, and allproperty
of non-residents must generally be administered to clear title to
realproperty situated in this State. (See H u s b a n d a n d Wife: Descents a n d Distributions.)
S Y N O P S I S OF
lawwithin five years. Inactions accruing out of the State upon
contract,expressorimplied,oruponanysealedinstrumentinwriting,
o r j u d g m e n t ordecree o f a n y court, more than sixyears before the
commencementoftheaction,thestatuteoflimitationsmaybepleaded
i n b a r o f recovery. I f a j u d g m e n t has been rendered without this
Statemore thanthree monthsbefore suitinthisState, a n d i s b a s e d
o n a cause of action m o r e than six years old, such cause ofaction
c a n b e pleaded in bar of the judgment. The constitutionality of
thislatterprovisionhas,however, beenattacked, a n d i s v e r y d o u b t
ful. (See 117Fed.400.)
M a r r i e d W o m e n . (See H u s b a n d a n d Wife.)
M e c h a n i c s ' Liens. Mechanics, material-men, contractors, sub-
contractors,builders,miners,andallpersonsofeveryclassperforming
T H E L A W S OF
CONNECTICUT
R E L A T I N G TO
B A N K I N G
A N D C O M M E R C I A L
U S A G E S
Revisedby LOUIS M. R O S E N B L U T H , Attorney at L a w , N e w H a v e n .
laborupon, or furnishing materialsusedintheconstructionor repair
ofanybuilding, orany other structure orimprovement uponland,
also all w h o have rendered their professional, skilled service u p o n
A c c o u n t s . In all actions for a book debt, the entries of the
parties in their respective books shall be admissible in evidence.
suchstructure,havealienupontheproperty;alsothosewhoworkor
furnish materials or machinery forthe working o f a mining claim
(For limitation of actions on accounts, see Limitations to Suits.)
or mineral deposit, shall have a similar llen.
Liens rank in the
following order: 1. Laborers or mechanics working by the day
or plece, without
furnishing
material.
2. Sub-contractors and
material-men, whose claims are either entirely or principally for
materials, machineryor otherfixtures.
3.
All principalcontractors.
Laborersareallowedonemonth, material mentwo months, andthe
originalcontractorthreemonthsafterthecompletionofthestructure,
withinwhich to fileclaimoflien. Actiontoenforcesuchlienmustbe
commenced within six months after completion of the building
uponwhichitisclaimed.
M o r t g a g e s . Ordinary mortgages on realty are incommon use;
also deeds of trust to a public trustee and to private trustees. In
casethepublictrusteeis named, the property issoldby himasprovided in the deed, after advertisement in a newspaper designated
inthetrust deed, a n d such advertisement shallnotbelessthanfour
weeks. U p o n a sale by the public trustee, a certificate of sale is
issued. A subsequent incumbrancer may redeem by paying the
a m o u n t b i d , a n d the s u m so paid shallbe added to the a m o u n t of
the subsequent incumbrance. T h e grantor in the trust deed, or
his assigns may redeem from sale within six months. After six
months, a n d within nine months, a judgment creditor m a y redeem.
After the expiration of the period of redemption the public trustec
executes a deed to the property to the holder of the certificate of
sale, which is assignable. Redemption from sales of mortgaged
propertythe s a m e as sales under executions.
Notes andBills ofExchange. (See Commercial Paper.)
Partnerships, LimitedandSpecial. A limited partnership
mayconsist of one or more general partners, jointly and severally
llable, and one or more special partners contributing a specified
amountofcash orproperty, who arenotliable for thedebtsofthe
partnership beyond the amount so contributed. Only the general
partners can bind the firm.
A certificate m u s t b e signed,acknowl-
edged, published, and filed of record giving details of partnership.
Allpersons doing business under any name other than their personal names, mustfile an affidavit showing the real persons repre-
sented,
orthey maynot bring suits upondebtsdue,andmaybe
convictedandfined.
PowersofAttorney. Powers of attorney for the conveyance
of lands must be acknowledgedin the same manner as deeds, and
must be recordedin the same county wherein the real propertyto
beconveyedissituate.
A c k n o w l e d g m e n t s . (SeeConveyances.)
Actions. Thereis but oneform ofcivilaction.
Mesne process
in civil actions consists of a writ of s u m m o n s or attachment, describing theparties,the courttowhichitisreturnable, a n d thetimea n d place of appearance, and embodies the plaintiff's complaint
Allsuchwritsshallbesignedbyajustice ofthepeace,commissioner
o f t h e superior court, or judge or clerk of the court to whichitis
returnable. T h e complaint should contain a concise statement of
the facts constituting the cause of action a n d a d e m a n d for relief,
a n d legal a n d equitablerellefmaybe d e m a n d e d i n t h e s a m e a c t i o n .
except inactions before justices of the peace, w h o have no equity
jurisdiction.
Administration of Estates. T h e probate court has jurisdiction of deceased estates. Administration on intestate estates is
grantedtothehusbandorwife, o r n e x t o f k i n o r t o b o t h . On their
refusal or incapacity, o r u p o n objection by a n y creditor orheir to
suchappointmentfoundreasonablebythecourt,thentoanyotherpers o n w h o m the courtdeemsproper. Bonds, which mustbefurnished
by the administrators or executors, are usually m a d e double the
estimatedvalueofthepersonalproperty. Bondsofsuretycompanies
authorized to do business in the State may be accepted. Where
thewillwalvesthebondanominalbondisrequired,usuallyindouble
t h e a m o u n t of thedebts of the testator. Deceased estates m a y be
settledassolventor insolvent. Notlessthansix months are limited
for the presentation of claims against deceased estates, whether
solvent or insolvent. Such claims are presented to the administrator or executor if the estate is solvent, or to commissioners
appointedbytheprobatecourtiftheestateisinsolvent. Creditors
notinhabitants of this State may exhibit their claims againstany
estatewhich has not been represented insolvent, a t a n y time within
oneyearafterorderofnotice, a n d i f presentedmorethansixmonths
afterorderofnotice,shallbeentitledtopaymentonlyoutoftheclear
estate remaining after payment of claims exhibited within time
limited. Suit must be brought within four months from the time
of receiving written notice from the administrator or executor of a
solventestateof the disallowance ofaclaim. Twelve months isthe
usual time allowed for the settlement of deceased estates. Administrators and executors m a y mortgage real estate if s h o w n to be for
benefitofthe estate, afterdueapplicationtoandhearing inprobate
court.
Affidavits. Civil actionsdonotordinarilyhave to be supported
byaffidavits. Affidavitshave littleweightasevidence,and arerarely
a d m i t t e d as s u c h .
Protest. (SeeCommercialPaper.)
Replevin. A writ ofreplevin m a y issue inany suit to recover
possession of personal property upon filing a b o n d indouble the
valueofthe property, with affidavit of ownership or right to pos
session, wrongful detention and valueofproperty, etc. Redelivery
bondinsimilaramountmaybegivenbydefendantin48hoursafter
levy.
SalesofPersonal Property. Everysaleorassignmentofgoods
andchattels in the possessionorunderthe control ofthe vendor
isvold,asagainstcreditors orsubsequentpurchasersingoodfaith,
unlessaccompaniedby immediate deliveryandfollowed byactual
andcontinuedchangeofpossession. Salesofanyportionofastock
ofmerchandise otherwise thanin the ordinary course of trade are
prima facie fraudulent and void against creditors, unless sellerand
purchasertogether, beforesale, make inventory, showing quantity.
andcostpriceof thevarious articles; andunlesspurchasermakes
fullinquiry ofthe seller as to names and addresses ofall creditors
of seller,and the amount dueto each,and obtains an answer;and
notifieseach creditor of the proposed sale, thecostprice,andthe
proposedsellingprice; andunlessthepurchaserretainstheinventory
andwritten answer at least six months after the sale. This act
does not apply to sales by legal representatives of publicofficers
conducting sales in their official capacity and there are someother
exceptions to this law. (See Husbandand Wife.)
Suits. (SeeActions.)
Taxesaregenerallyalienonrealestateuntilpaid, as alsoupon
stocks ofgoods Including new goods added thereto. Taxes may
bepaidintwo semi-annual installments; the firsthalfonorbefore
thelastdayof February,and the residueonorbefore thelastday
the oneinwhich theyare assessed.
ofJulyoftheyearfollowing
Real estate sold for taxes redeemed any time within three years.
Allminesandmining propertyof theclassheretoforeexemptedby
the constitution of the State shall be assessed and taxed, and the
taxesleviedand enforced by sale of the property taxedindefault
of payment, as is provided by lawin the case of other classes of
taxablereal properties. Delinquent taxes carry interestatthe rate
of12 to 18percentper annum. Householdgoodsto thevalueof
$200belonging to a h e a d ofafanily are exempt.
Wills. Males of the age of twenty-one years, and females of
theageofeighteenyears,maydisposeoftheirproperty by will,
but personal property may be disposed of by will by any person
oftheageofseventeenyears. Forrestrictionsastomarriedpersons.
(SeeHusbandandWife). Allwills,whetherof realtyorpersonalty,
shallbe inwriting signed by the testator or some oneforhim in
hispresenceand at hisdirection, and attestedinhispresence by
two ormore credible witnesses. Unless otherwiseexpressed inthe
will, anafter-born child will share in the property. Devises and
bequests to witnesses are null and void, unless the willbeattested
by asufficient number ofwitnesses exclusive ofsuch persons. No
willcanbe revoked otherwise than by the subsequent marriage
ofthe testator, or by burning, tearing, or obliterating thesameby
the testator, or in his presence and by his direction and consent,
orbyanotherwillorcodicil,declaring thesame,dulysigned and
Aliens. A n y alien resident of any of the United States, and
a n y citizenof France, so long as France shall accord the s a m e right
to citizens of the United States, may purchase, hold, inherit, or
transfer real estatein this Statein as full a m a n n e r a s native-born
citizens.
Arbitration. Parties to any controversy desiring to submit the
s a m e to arbitration under a rule of court, a n d having signed a n d
s w o r n t o an agreement to that effect, m a y , u p o n filing this agreem e n t in the court having jurisdiction of the subject matter, have
this agreement entered of record a n d obtain a rule of court that
the saidparties shall submit to and be finally concluded by such
arbitration; or the said parties m a y personally appear in court
a n d acknowledge that they have mutually decided to submit their
controversy to the arbitration of certain n a m e d persons a n d
mayobtainaruleofcourtofsimilarpurport; orincaseofanaction
pendingincourt,ifthe parties thereto desire to referit to arbitration, each maychoose one arbitratorand thecourt appointathird;
andineitherofthesethreecases,theawardofthearbitratorsbeing
returned a n d accepted by the court, judgment shall be rendered
pursuantthereto, and execution granted thereon, with costs.
Arrest. The bodyisexemptinordinaryactionsfordebts, except
formoney received by one acting in afiduciary capacity, orwhere
there is fraud in contracting the debt or in concealing attachable
propertysothatit maynot bereached bycivil process. Inactions
generally, no attachment shall be granted against the body unless
each cause ofaction in the complaint be such that executionmay
be issued against the body of the defendant upon the judgment
founded thereon. A debtor committed to jail on civil process can
be released on taking poor debtors' oath. T h e debtor will not be
released if his oathis overcome by rebutting evidence.
Assignments inInsolvency. Operation of this section sus-
pendedduring continuance of U. S. Bankruptcy Act.
Attachments.
Attachment
may
be m a d e
u p o n the original
process, andisservedbyattachingthegoods orlandsofthedefend-
ant, or,if sufficient goods be not found, the person in tort actions.
Attachments may be granted upon all complaints containing a
money demand. Supplemental attachment may be ordered by
thecourt uponapplicationatanytimeduring the pendency of the
action. If the plaintiff be anon-resident, he is required to furnish
a b o n d for prosecution from ten dollars to one hundred a n d forty
dollars, according to a m o u n t attached. An attachment lienexpires
unless execution is levied within sixty days after final judgment
u p o n the attached personal property, orwithinfour months upon
theattached real estate. (See Exemptions.)
B a n k s . (SeeStateBanksandTrustCos.)
Bills o f E x c h a n g e . (SeeNotesandBills.)
Bills ofLading. UniformBillsofLadingActpassedin1911.
ChattelMortgages. (See Mortgages, Conditional Sales, and
Interest.)
CollateralInheritanceorSuccessionTax. (SeeTaxes.)
BANKING AND COMMERCIAL LAWS-CONNECTICUT
1380
Court of common pleas in Hartford, Fairfield, New London,and
ConditionalSales. Allcontractsforthesaleofpersonal propNew Havencounties,hasexclusivelawandequityjurisdictionabove
$100 and below$500, and concurrentjurisdictionwiththesuperior
, except
ycusd
tnhousehold
rruti
enruf
, s e musical
l c instruments,
y c i b
h
a
,
e
court above $500 and upto $1,000, andin LitchfieldCountyhas
propertyasisbylawexempt fromattachment andexe
cution, conditionedthatthetitletheretoshallremaininthevendor exclusivejurisdictionupto $1,000. Notlessthanfourtermseach
afterdelivery, must beinwriting, describing the property and all yearareheldineachofthecountiesnamed,andtherearecitycourts
conditions ofsale, and acknowledged before proper authority, and Inmanyofthecities,andadistrictcourtat Waterbury,withlimited
civiljurisdiction; alsotown courtsinmanyofthetowns. Probate
as r
d e town
d rwhere
o c vendee
e r , des.e Ifnot
r i umade
q e
courtshavejurisdictionofthesettlementoftheestatesofdeceased,
theyare in
held to be
absolute salreess,iexcept
as between the vendor
I
nsolvent, and incompetent persons, andareestablishedinalarge
Acrimeto
conceal
and
vendee ortheirpersonal
repreonsuch
sentatives.
numberofprobatedistricts-oneforeachdistrict. Justicesofthe
orconveypersonal
property held
conditional sale.
peacehaveciviljurisdictionupto$100. InNewHavenandHartContracts. Ordinary provisions of Statute of Frauds apply. fordjurisdictionofjusticeofthepeacehasbeentransferredtocity
Courtsofprobatehavingjurisdiction ofthesettlementoftheestate court, except incasesofsummaryprocessandbastardy.
ofanydeceasedpersonmay,concurrentlywiththecourtsofequity,
(See NotesandBillsofExchange.)
authorize the executor oradministratorto convey the title ofthe
DaysofGrace.
deceased in any real estate to any person entitled to it, by virtue
Deeds.
(SeeConveyances.)
Depositions. Maybetakeninacivilactionbyajudgeorclerk
ofany contract ofsuch deceased person, and the court ofprobate
in which the guardian ofany minor has been appointed may, in ofany court, justice ofthe peace,notarypublic,orcommissioner
likemanner, ordersuchguardianto conveytheinterestofhisward ofthesuperiorcourt,whenwitnesslivesoutoftheState,ormore
toanother thantwentymilesfromplaceoftrial,isoversixtyyearsofageand
in anyrealestatewhichoughtinequitytobeconveyed
person. Contracts forthe conveyance oflands or ofany interest unabletoattendthetrial, isgoingtosea,oroutoftheState,orby
therein, mayberecorded inthe recordsofthetowninwhich such ageandinfirmityisunabletotraveltocourt,orisconfinedinjali.
lands are; and such record shall be notice to all the world ofthe Reasonablenoticemustbegiventoadverseparty. Deponentsmust
equitable interest thus created. Gaming or wagering contracts be cautioned to speak the whole truth, and carefullyexamined.
are void. Contract of incapable person pending appointment of Theymust subscribe theirdepositionsandmake oathbeforethe
conservatororofspendthriftpendingappointmentof overseer, vold authority taking the same. who shallattestthesameandcertify
whenselectmenhave filed in town clerk's office certified copy of thattheadversepartyorhisagentwaspresent(ifso),orthatbe
application incase ofincapable person, and certified notice ofpro- wasnotified, andshallalsocertifythereasonoftakingsuchdepo
who receives sition,sealitup.directittothecourtwhereitistobeused,and
incase
ofspendthrift. Noperson
posedappointment
valuable consideration
for
a
a contract, express or implied, made deliverit. Ifdesired,to thepartyatwhoserequestitwastaken.
Depositions maybe taken in anyother Stateorcountrybya
onSunday,shalldefendanyactionuponsuchcontractontheground
thatitwassomadeuntilherestoressuchconsideration. The Uni- notarypublic,commissionerappointedbythegovernorofthisState.
form Sales Act passed in 1907 covers contracts to sell. (See Sales orbyanymagistratehavingpowertoadministeroaths,andthey
mayalsobetakenbeforeaforeignminister,secretaryoflegation
by RetailDealers.)
bythe UnitedStates,iftakenout
Conveyances. All conveyances of land must be in writing. consul,orvice-consulappointed
ofthe United States. Ajudgeofthesuperior, commonpleas,or
signed, scaled, and acknowledged by the grantor, and attested by district court canissuea"commission" totakethedepositionof
two subscribing witnesses. The word "seal" orthe letters (L. S.)
a personresiding out ofthis State,tobeusedinacausepending
maybeusedforaseal. Theacknowledgmentismadebythegrantor
before such court. The superior court,uponpetition.mayallow
before a judge ofa court ofrecord ofthis State or ofthe United
depositionsto be takento perpetuate testimonyconcerningthat
States, a clerkofthesuperiorcourt, courtofcommonpleas, ordiswhichmaythereafterbethesubjectofasuit. Thepersontaking
trict court, justice ofthe peace, commissioner ofthe school fund, depositions may compel attendance ofwitnessesbysubpoenaand
commisisoner ofthe superior court, notary public, town clerk, or
assistant town clerk, ifin thisState, and ifin any other State or cap
Descent
and Distribution of PropertyinIntestateEstates.
ias.
Territoryofthe United States,thenbeforeacommissionerappointed (Astotheshareofasurvivinghusbandorwife,seethetitleHusband
bythe governor ofthis State,oranyofficerauthorized totake the and Wife.) Aftertheshareofthesurvivinghusbandorwife,the
acknowledgment of deeds in such State or Territory, and ifin a
of the real orpersonal estateisdistributedinequalproforeign country, before any consul ofthe United States, ornotary residue
portionsamongthechildrenandthelegalrepresentativesofanyof
, orjusticeofthepeaceinsuchforeign
c i l b u p s e c n a y ecountry.
v n o C
themwhomaybedead(childrenwhohavereceivedestatebyadvance
of real estate situated in this State, executed and acknowledged mentoftheintestateinhislifetimebeingchargedwiththesamein
inanyother Stateor Territory,inconformitywiththelawsofsuch thedistribution).
Ifthere benochildrenorlegalrepresentatives
State or Territory,arevalid. Ifthe land conveyed belongs tothe thereof, such residueshallbedistributedtotheparentorparents,
wife,thehusband should joininthe conveyance, ifmarried before thenequallytothebrothersandsistersoftheintestateofthewhole
If the land conveyed belongs to the busblood, and those who legally representthem;andiftherebeDo
April 20, 1877.band,thewifeneednotjoinintheconveyance. Noseparateexam- suchkindred,
then equallytothebrothersandsistersofthehalf
inationofa married womanis requiredintakingheracknowledg- blood andthosewho legallyrepresent them; andif none,then
ment. Conveyances, including leases for more than one year, to equallytothenextofkininequaldegree,kindredofthewholeblood
beeffectualagainstanyotherpersonthanthegran.orand hisheirs totakeinpreferencetokindredofthehalfblood,inequaldegree.
mustberecordedonthetownrecordsofthetowninwhichtheland andno representatives tobeadmittedamongcollateralsafterthe
lies.
Corporations. Corporations may be formed underthe general representatives ofbrothersandsisters.
Dower.
(SeeHusbandand
Wife.)
lawsbythreeormorepersonsforthetransactionofanylawfulbusi(SeeCourts,InsuranceCompany,
Corporations.)
Evidence.
ness except that of bank, savings bank, trust company, building
Issueonfinaljudgment,andarereturnablewithin
and loan association, insurance company, surety and indemnity
Noexecution issuedinanactionfoundedoncontrace
company,steamrailroad orstreetrailway company,telegraphcom- merelycanbeleviedonthebodyofthedebtorexceptforbreach
Executions.
pany; andgasandelectriclighting,watercompany,oranycompany ofpromiseofmarriage
sixty days.
, misconduct orneglectinofficeorprofes
which shall need to havethe right ofeminent domain.
,orbreachoftrust. Anyjudgmentdebtor,an
Acertificateof Incorporation must be filed, signed, and swornto sionalemployment
beenreturned
un
ti
ie
n
whomshallhave
execution
against
byalltheincorporators,givingthenameandlocationofthecorporaoathtouchinghi
sspar
ospfe
rdtiy
maybeexamined on
tion, the nature ofthe business, theamount ofauthorized capital wholeorinpart,
stock, which must not be less than $2,000, number ofshares and and means ofpayingsuch judgment,andmaybecommittedfor
parvalueofeach,whichshallnotbelessthan$25,amountofcapital
Homestead,tothevalueof$1,000,ifdeclaration
stockwithwhichitwillcommence business, whichshallnotbeless contempt. (SeeExemptions.) Ofthepropertyofanyoneperson.
than$1,000. Acertifiedcopymustbefiledinthetownclerk'soffice.
Exemptions.
holditassuchisrecorded.hisnecessaryapparelandbeddingandhouseholdfurniturenecessary
Theorganizationfee must bepaidtothe State, offifty centson too
rsupportinglife;anypensionmoneysreceivedfromtheUnitedStateswhileinthehandsofthepensioner(whichhasbeenconstrued
every thousand ofits authorized capital stockup to five million, ftocoveralsosuchpensionmoneywhendepositedinasavingsbank):
nopaymenttobelessthan$25.
Stockmaybe paid foreitherincashorproperty, butifin prop- implements
debtor's atnriamdael,shi
c1
e5
e0diinnvga$
0
ofthedomestic
l5
u0
e:
ns
ol
tiberxacrey
en
do
it
ne
gx$
value; sundry
erty, amajority ofthedirectorsmustmakeandsignuponarecord in
debtwhichhasaccruedbyreasonofthepersonal
bookastatementoftheamountforwhichthepropertyis received somuchofany
andits actual value. In caseoffraud insuch valuation, directors servicesofthedebtorasshallnotexceed$25,includingwagesduefor
per
sonallyliable.
tionofanydebtaccruedbyreasonofthepersonalservicesofthe
Certificateoforganizationmustbesignedandsworntobyamajority
defendantagainsttheclaimforthedefendant'spersonalboard,or
ofthedirectorsandfiledintheofficeofthesecretaryofstate.setting
forththeamount ofstocksubscribedfor, amount paidin cash and fortherentalofanyhouseortenementoccupiedbythedefendant
as
a place ofresidencewhensuchrentalshallnotexceed$25);of
in property, names and addresses of subscribers with number of thepropertyofanyonepersonhavingwifeorfamily,twotonsof
sharessubscribedfor, statementthatthedirectorsandofficershave coal, specified amounts offood-stuffs;thehorseofanyphysician
been duly elected and by-laws adopted, names and addresses of orsurgeonnotexceeding$200invalue,andhissaddle,bridle,har
directors, thelocation ofthe principal officein the State withthe ness, and buggy, also hisbicycle;oneboatownedbyoneperson,
name
ofthe agent in charge.
withrigging,tackle,etc.,notexceeding$200invalue,usedforplantvacanciesindirectorsmay ingortakingoysters
Theremustbeatleastthreedirectors;
orclamsortakingshad;onesewingmachine
befilledbyremainingdirectors.
beingpropertyofanyonepersonusingit.orhavingafamily:one
Nostockcanbeissueduntilithasbeenpaidforinfull. Receipts
of anyperson having family whoordinabeing
property
pew
forpartialpaymentsofstockmaybeissuedbythe treasurer. Cer- rily occupy it, and lots in any buryingground; andallbenetificates for fractional shares cannot be issued. The corporation fitsallowedbyanyassociationofpersonsinthisStatetowardthe
hasa lien on capital stock owned by any person for debts dueto -supportofitsmembers,incapacitatedbysicknessorinfirmity,shall
Itfrom the stockholder. The corporation may acquire
its own
capital stockwiththeapprovalofthree-fourthsofthe stockholders,
beexempted from foreignattachmentorexecution.
Goodsconcealedinthehandsofagents
givenatameetingcalledforthatpurpose.
ordebtsduethedefendantarereachedbyforeignattachmentwhich
Stockholders'meetingsmustbeheldinthis State.
takestheplaceofgarnishment. Noassignmentoffutureearnings
Similarcorporationsmayconsolidate.
ForeignAttachments.
Iwillpreventtheirattachmentwhenearnedunlessmadetosecure
Acorporation may be wound upby voluntary agréement ofall
fidedebt, dueatthedateofsuchassignment,theamount
stockholders, signed and acknowledged, directors acting astrustees abona
ofwhich shall be stated thereinasnearlyaspossible,norunless
towindupthebusiness.
forwhichtheyareassignedshallbedefinitelylimitedto
Receivermay be appointed on application ofstockholders own- theterm
theassignment,norunlessrecordedbeforesuchattachmentinthe
ingone-tenth ofthe stock, in case offraud, mismanagement, orif town clerk'sofficeinthetownwheretheassignorresides,orifbe
assets are in danger of waste by attachment, orwhen corporation resideswithouttheState,inthetownwheretheemployerresides,and
hasabandoneditsbusiness.
Annualstatements mustbe filed inthe office ofthe secretary of
.snEovi
(SeealsoExemptions
rroep
rnoco
Crnpg
iaetr
)x.ceptInsur
ertyaf
o
ig
or
ioonF,e
state and a certified copy thereof inthe town clerk's office, either anceand surety companiesandbuildingandloanassociationsand
In January orJuly, givingthe names and addresses ofthe officers investment
a copyleftwiththeemployer.
(a corporationwhichhaspowertoordoes
.and directors, amountofoutstandingstocknot paid forinfullwith sellornegotiacompanies
teitsownchosesinactionorsell,guarantee,ornegotiate
theamount due thereon, thelocation ofthe principal officeinthis thechosesinactionofotherpersonsorcorporationsasinvestments).
State with the nameof the agent incharge on whom process may Ishall, beforetransacting businessinthisState,fileintheofficeof
be served. For fallure to file annual statement the corporation thesecretaryoftheStateacertifiedcopyofitscharterorcertificate
mayforfeit$100tothe State.
ofincorporation, togetherwith astatement,signedandswornto
Costs. For case before Justice ofthe peace, actual cash costs by its president, treasurer, and amajorityofitsdirectors,shownot less than $5; before city court from $5 to $25, according to ingtheamountofitsauthorizedcapitalstockandtheamountthereof
ifanypartofsuchpaymenthasbeen
amountinvolved; before courtof common pleasorsuperiorcourt, whichhasbeenpaidin,and,
made otherwise than in cash, such statementshallsetforththe
notlessthan$25;
Sec. 83.-Every foreigncorporationwithan
Attorney's fees notbeforesupremecourtoferrors,notlessthan$50.
included. Attorney justified in asking deposit
fficeorplaceofbusinessinthisState,exceptinsurancecompanies,
of$15forcasein Justice'scourtand $50inanyothercourtbefore o
surety companies, and buildingandloanassociations,shall,before
bringingsult. (See Insurance Companies, Injunctions,etc.)
doingbusinessinthis State,appointinwritingthesecretaryofthe
Courts. Termsand Jurisdiction. Superiorcourtholdsoneterm particulars thereof.
peryearineachcountyforthe trialofcivil causes,andhasjurisdictionin alllawand equity cases exceeding $500, and exceeding
$100inthosecountieswherethereare no courts ofcommonpleas.
State
all
and
aral
sach
tema
autho
theo
Cleat
sald
be
secret
orre
ofthe
corpo
treast
State
Ar
ofthe
Beed
Fo
BANKING AND
COMMERCIAL LAWS-CONNECTICUT
State a n d his successors in office to be its attorney, u p o n w h o m
allprocessin a n y action or proceeding againstit m a y be served;
a n d in such writing such corporation shall agree that a n y process
againstit w h i c h i s served on such secretary shall be of the s a m e
legal force a n d validity as if served on the corporation, a n d 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 s o m e officer
authorized to take acknowledgments of deeds a n d shallbe filed in
theofficeofsaidsecretary,and copiescertifiedbyhim shallbe sumcient evidence of such appointment a n d agreement. Service upon
saldattorney shall be suticient service upon theprincipal,andmay
be m a d e by leaving a duly attested copy of the process with the
secretary of the State or at his office. Every foreign corporation
doingbusinessinthisState shall,withinthirtydaysafteranincrease
or reduction of its capital stock filein the office of the secretary
oftheStateacertificatesubstantiallylikethat requiredofdomestic
corporations organizedunderthe like conditions. Thepresidentand
treasurer of every foreign corporation doing business in this State
w h i c h i s n o t required by l a w to m a k e other annual returnsin this
State, shall, annually, on orbefore the fifteenthday of February or
August,make,sign,andsweartoandfileintheofficeofthesecretary
o f t h e S t a t e a certificate similarto thecertificate required ofdomestie corporations (See Corporations), except that such certificate
neednotgivethenameoftheagentorpersoninchargeofitsprincipal
o n c e u p o n w h o m process against the corporation m a y be served.
The secretary thall thereupon record such certificate inabookkept
by him for that purpose and shallfurnish acertified copy to be
recordedin the officeof the town clerk of the t o w n in this State
I n w h i c h s u c h corporationhas its principal office orplaceofbusiness,
a n d said t o w n clerk shall record the same in a book kept by him
forthat purpose. On the fifteenth day of March and September
the t o w n clerks of the several towns shall report to the secretary
o f t h e S t a t e t h e names ofallcorporationswhose annual reportshave
beenfiled for record during the preceding six months,inaccordance
w i t h the provisions of this section, a n d the secretary shall report
totheattorney-generalevery sixmonthsthenamesofallcorporations
whichhavefailed to c o m p l y w i t h the provisionsofthissection, a n d
the attorney-general shall collect all forfeitures due under this sec-
tion. Every corporation whose officers shall fall to comply with
the requirements of this section shall forfeit to the State $100 for
each failure. The attorney-general may remit this fine.
Foreign J u d g m e n t s .
Notconclusiveon questionofjurisdiction.
Aforeignjudgment when used by way ofdefence, isas conclusive
toeveryintent,as those o f o u r o w n c o u r t s . I n a n a c t i o n o n a j u d g mentrendered inanother State, evidence o n t h e p a r t ofthedefenda n t that he h a d no legal notice of the sult a n d d i d not appear, is
admissible, although the record of the judgment stated that the
defendant appeared by his attorney. Where the foreign court
hasapecullar and exclusive jurisdiction, Its decree isbinding upon
t h e j u d g m e n t o f a n y othercourt, into whichthe samesubjectcomes
Immediately into controversy. A judgment rendered by a court
i n o n e S t a t e h a s n o efficacy w h e n i t i s s o u g h t t o beenforcedinCon-
necticut, unless such court had jurisdiction of the person against
whomitis rendered, acquired either by service upon him of the
processinthe suit, oractualnotice t o h i m ofthe suit, oratleastby
1381
w i l l b e d o n e by the further continuance of said injunction, or that
saldapplicationis made for delay and notin good faith,it shall
be the duty of the court to continue said injunction until a final
decision be rendered in the supreme court oferrors. W h e n in a n y
action judgment shallbe renderedforapermanentinjunctionorderIng either party to perform a n y act, u p o n similar application to
thatabovementioned,astayofoperationofsuchinjunction,pending
final decision ofsupremecourt oferrors, m a y b e granted forsimilar
reasons. T h e court in which such caseis pending m a y , however,
ifinits opinion the cause of justice shall so require, dissolve sald
temporary injunction or remove the stay ofsaidpermanent injunotionwhilesaldcauseisso pending i n t h e supreme court oferrors.
Insolvency. Suspended, owingto UnitedStatesBankruptcyAct.
Interest. Legalrate,inabsenceofexpressagreement. 6percent:
no m o r e t h a n 6 per cent can be recovered in either caseafter debt
becomes payable. A n y person w h o shall loan m o n e y u p o n a note
secured by mortgage on personal property, in which the s u m of
moneyloanedisstatedtobegreaterthantheamountactuallyloaned,
o r i n w h i c h therateofinteresttobechargedisgreaterthantherate
allowedbylawtobechargedbypawnbrokers(25percentperannum),
shallbepunished by fineandimprisonment, and the mortgageand
note secured thereby shall be null a n d voil. No one other than
national orstatebank ortrustcompanyorpawnbrokershall charge
o r a c c e p t m o r e t h a n 1 2 percentperannumforinterest,butthisdoes
notapplytobonafidemortgagesof real orpersonalproperty.
Judgmentscarry6percentinterest,butarenotliens, andexecut i o n m a y b e h a d a t a n y time during the life ofboth parties. Judgmentbydefaultmaybeobtainedifthedefendantmakesnoappearance
onreturnday. Certificateofjudgmentmayberecordedbyjudgment
creditor or his assignee in town clerk's office, and such judgment
from the time of filing such certificate shall constitute a l i e n u p o n
therealestatedescribed insuchcertificate, andifsuchlienbeplaced
u p o n real estate attached in the suit u p o n which such judgment
w a s predicated and within four months after such judgment was
rendered,it shall hold from the date of such attachment. S u c h
lienmaybeforeclosed or r e d e e m e d i n t h e s a m e m a n n e r a s m o r t g a g e s
uponthesameestate,andmayalsobeforeclosedbydecreeofsale.
Jurisdiction. (See Courts.)
Mechanics' liens for labor or mateLiens. (Mechanics' Liens
rials furnished in the construction or repair o f a n y buildingmaybe
filedbyoriginalcontractorwithinsixtydaysaftercompletionofwork;
but sub-contractor must serve owner of building with notice of his
Intention to claim alien within sixty days after he shall have commencedtofurnish materials or render services. Mechanics' liensare
foreclosedsameasreal estatemortgages. Unless foreclosureis insti-
tuted, liens expire two years afterfiling. (For judgment Liens, see
Judgments.)
Limitations to Suits. O p e n accounts a n d contracts not under
seal, six years; contractsundersealandpromissorynotesnot negoti-
able, seventeenyears. Usualexceptionsinfavorofmarriedwomen,
minors, lunatics, a n d those imprisoned. T h e time during which
the party against w h o m there m a y be such causeof actionshall be
without the State shall be excluded from the computation. Title
toreal estateby adversepossession m a y b e gained in fifteen years.
hishavingappearedinit,
and thus submitting tothejurisdiction
Jurisdictionpresumedtohavebeenproperlyexercised,
There is no limitation against judgmentsbut thecommonlawpresumptionof payment after twentyyears exists.
action pending at the time in this State between the s a m e parties
o n t h e s a m e c a u s e ofaction. It makes no difference that thejudg-
L i m i t e d Partnerships. Such partnerships (except banking a n d
Insurance) shallconsistofoneor more partners,jointlyand severally
responsible, as in ordinary cases, to be called general partners; a n d
o n e or more partners, furnishing capital to the partnership stock,
w h o s e liability shall not extend beyond the capital so furnished by
ofthecourt.
if court once had jurisdiction. Notice presumed of resumptionof
Jurisdiction if required by practice in foreign court. Ajudgment
recovered inasister Stateisabar tothe further prosecution ofan
mentofthesisterStatehasbeenappealedfrom,andthattheappeal
isstillpending, where, bythelawsofthatState, suchappealoperates
onlyasaproceeding inerror, anddoes notsupersedethejudgment.
Onlysuchpleasarepleadabletoaforeignjudgment,asarepleadable
whenrendered.
them, to be called special partners.
Such partnerships shall be
conductedunderacompanyname, inwhichthenameofoneormore
ofthe general partners shall appear; and if any special partner's
n a m e shall be used in said c o m p a n y name, he shallbeheld llable
Fraud. Allfraudulentconveyances, sults. Judgments, executions.
asageneral partner. No such partnership shall be deemed to be
formeduntil the persons formingit shall make, and severally sign
dutybelongingtoothers, shall, notwithstandinganypretendedconsideration therefor, be vold against those persons only, theirheirs
executors, administrators, or assigns, to w h o m such debt or duty
a n d acknowledge before any officer authorized to take the acknowledgmentofdeeds, acertificate statingthe c o m p a n y n a m e a n d names
or contracts, m a d e or contrived with intent to avoid a n y debt or
belongs.
Garnishment. (See ForeignAttachments.)
Guaranty Companies.(See SuretyCompanies.)
Holidays. (SeeNotesandBills ofExchange.)
H u s b a n d a n d Wife. Inall marriages contracted afterApril 19,
1877, neither husband nor wife acquires by force of the marriage
anyright toor interest in any property held by the otherbefore
ofthesurvivor in the property of the otheras hereinafter stated.
Wifemarriedsubsequent to April 19,1877, may hold andconvey
real estate separate from her husband. Separate earnings of the
wifeareher soleproperty. Onthedeath ofthe husband orwife
themarriageor acquired after the marriage, exceptas to the share
thesurvivorshallbeentitledtothe use forlife ofone-thirdinvalue
ofalltheproperty, real orpersonal, ownedby the otheratthe time
ofhis orher decease, after the payment ofall debts and charges
allowedagainsttheestate, Therighttosuchthirdcannotbedefeated
by will. Where there is no will the survivor shall take such third
absolutely, and if there are no children, shalltakeallofthe estate
of the decedent absolutely to the extent of $2,000, and one-half
absolutelyofthe remainderofsaidestate.
and residences of all the partners designating which are general
a n d which are special partners, a n d which of the general partners
are authorized to transact the partnership business and sign the
firmname, andalsotheamountofcapitalfurnishedby each special
partnerand thetimeatwhich the partnership is to commence and
terminate: nor until such certificate, and also a certificate of the
amountactually paid i n b y each special partner. signed and sworn
to by such of the general partners as are authorized to transact
the partnership business, shall be filedand recorded in the office of
t h e t o w n c l e r k o f t h e t o w n where the principalbusinessofthepartnership is to be carried on; a n d a copy of such certificate shall
be prima facle evidence of the matters therein contained; a n d the
partnershipshallbe responsibleonlyfortheactsofthegeneral partners designated as specially authorized as aforesaid; and coples or
said certificates shall, in like manner, be filed in every t o w n where
such partnership may have a place of business. Terms of such
partnershipmustbepublished forsixweeksinnewspaperpublished
incountywhere business isto be carried on. Any such partner-
ship m a y 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 forwhich said renewalis made, whetherthe
special capital has been reduced or impaired since the last certificate filedby sald partnership, andif so,to whatamount, a n d b y
publishing notlessthan once aweek for two weeksinanewspaper
publishedin county, the time at which the said renewed partnership istocommenceand terminate, signed by thepartnersthereto,
and specifying which are general and which are special partners.
Ifthe requirements concerning original certificate are not complied
Injunctions. Anyjudgeofanycourtofequitablejurisdiction
beofforceuntilthesittingofsuchcourtanditsfurtherordertherein,
unless sooner dissolved. Superior court judge may dissolve temporaryinjunctiongrantedbyothercourt. Allfactsstatedinapplicationforinjunction must beverifiedbyoath. Plaintiffmustgive with, orfalse certificatebe made, all special partners shall be liable
bondwithsatisfactorysurety,toansweralldamagesincaseoffailure as general partners. Alladvancements to the capital stock by the
to prosecute to effect, before temporary injunction canbe issued.
s h a n d no partofthecapital furnished
unlessthecourtshallbeofopinionthattemporary Injunctionought special partners shall b e i n c aeitherintheshapeofdividends,
profits
toissuewithout bond. Injunctions may be granted forthwith, if bythemshallbewithdrawn,
orotherwise, atany timewhile such partnership continues; except
may, onmotion, grant and enforce writs of injunction, which shall
thecircumstances ofthecasedemandit; orthe court orjudgemay
causeimmediatenoticeoftheapplicationtobegiventotheadverse
party, thathe may show causewhy such injunctionshould notbe
granted;andit shallbe sufficient, on such application foratemporary injunction, to present to the court or judge the originalcom-
plaintcontaining thedemandforan injunction,dulyverified,with
outfurthercomplaint,application ormotioninwriting. Whenever
atemporaryinjunction is granted in any cause before the return
daythereof,itmaybedissolvedormodifiedbythecourtorjudge
whoissuedit.byanyjudgeofthecourtto whichtheactionisreturnable, orby any judge of the superior court; provided a written
motionforsuchdissolutionshallbepreparedbeforethereturnday.
Anypersonwhomaybedirectlyorindirectlyinterestedin,oraffected
by the granting ofany temporary or permanent injunction, may
appearandbeheard with regard tograntingordissolvingthesame,
Wheninanyactionatemporaryinjunctionhasbeengranted,and
uponfinalhearingjudgmentshallberenderedadversetothecontinuanceofsuchinjunction,eltherpartymayapplytothecourtrendering
such judgment, representing that heis desirous of taking the case
tothe supreme court of errors, and praying that said temporary
Injunction may be continued until the final decision therein; and
unlesssaidcourtshallbe ofopinionthatgreatandirreparableinjury
that any special partner 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; provided that such payment shall only be
made out of the net profits actually earned by such partnerships
duringtheyearforwhich suchpaymentismade. Nospecialpartner
shall under a n y circumstances be considered a creditor, or allowed
toclaimasacreditor. No specialpartnershallbe joinedasa party
inanyactionbyoragainstsuchpartnershipunlessliableasageneral
M a r r i e d W o m e n . (See H u s b a n d a n d Wife.)
partner.
Mortgagesofrealestateareexecuted,acknowledged,andrecorded
Inthesamemannerasdeeds, andareforeclosedbystrictforeclosure
orbyadecree of sale, Chattel mortgages tobe goodagainst third
parties, where the mortgagor retains possession, must be executed,
acknowledged, a n d recorded as mortgages of land, a n d can only be
madeofthefollowing described personal property- with orwithout
the real estate in which the s a m e i s situated or used-namely:
machinery, engines, or implements situated and used inany manufacturing or mechanical establishment; machinery, engines, implements, cases, types, cuts, orplatessituated and used in any printing,publishing,or engraving establishment; householdfurnitureina
"
BANKING A N D COMMERCIAL L A W S - D E L A W A R E
1382
credit
tions,oncomplyingwithcertainrequirementsoflawmaybeaccepted
dilige
dwelling house used by the owner therein in housekeeping; hay assurety,uponthebondofanypersonorcorporationrequiredby
prese
andtobaccointheleafinanybuilding, Piano,organ,melodeon,and thelawsofthisStatetoexecuteabond. Everyforeigncorporation
isno
anymusicalinstrumentusedbyanorchestraorband. Brickburned beforetransactinganybusinessinthisStatemustdepositwiththe
ment
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,
Hotel keepers maymort
orunburned,
in
anykilnorbrickyard.
attac
gagethefurniture, fixtures, and otherpersonal chattels contained andswornstatementoftheconditionofitsbusiness. Theinsurance
o
fth
commissionermaythereafterissuetosuchcompanyalicensetodo
andusedinthehotelsoccupied bythemoremployedinconnection businessinthisState. Suchcompanymustappointtheinsurance
orup
therewith. Chattel mortgages are foreclosed by sale underorder commissioneritsagentonwhomprocessmaybeserved.
SuchcomState
ofcourt. InallchattelmortgagestheremustbeaparticulardescripForel
panymustfileannuallyonorbeforeMarch1st,withtheinsurance
tionofeach article of personal property. Judgment fordeficiency commissioner,
but
a statementofthecapitalofsuchcompanyandits
aftersale,permitted. Suchsuminexcessof10percentperannum investmentsandrisks.
A
n
a
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pecif
asispaidfor interest shall beapplied as payment onaccount of ment be satisfactory. Local agents must procurecertificatesof
attach
theprincipaldebtand shallbededucted therefrom.
hiso
ner. The
authority to act as agent fromtheinsurancecommissio
Notaries Publicholdofficefortwoyearsfromfirstdayof Febcommissioner may also at any time examinethe
Simila
ruaryofyearin which commissioned, unless commissionissooner InsuranceaffairsofanysuretycompanydoingbusinessintheState. Areserve
ment
revoked bygovernor. May exercise theirfunction at anyplacein fundmustbemaintainedequalto50percentofthegrossamount
anyj
State. Maytakeacknowledgments,administeroath,takedeposition, ofpremiumsreceivedonbusiness inforce. Nosuchcompanycan
excep
subpoena witnesses to give deposition. Theauthority andofficial incuronbehalfofanyonepersonorcorporationaliabilityforan
dissol
actsofanynotarymaybe certified tobytheclerkofthesuperior amountlargerthanone-tenthofitspaid-upcapitalstockandsurcourtofthecountyinwhichheresides,exceptinNewLondonCounty.
Ba
pluswithoutgivingcollateralsecurity.
wherethecertificationismadebytheclerkofthecourtofcommon
which
Taxes. Landmaybesoldfordelinquenttaxesafterdueadver
C
a
nD
tising,onlysomuchbeingsoldasisnecessarytopaytaxesandcosts.
pleNotes
as.
forso
and Bills of Exchange. Negotiable Instruments Act
Ownerhasoneyearinwhichtoredeem,bypayingthepurchase
fourth
percent
i
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t
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e
s
t
.
B
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,
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s
money,with
12
nowinforce.
stock
PowersofAttorney. Wherea deed isexecuted byapowerof inaction,exceptbondsandnotessecuredbymortgageonrealestate
theS
situatedinthis State,maybeexemptedfromalllocaltaxationby
.
d
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P
payingtotheStateataxof2percentonthefaceamountthereof
realestatemustbeexecutedandacknowledgedinthemannerrequired forfiveyears, oratthe optionoftheholderthereofforagreater
powe
fortheexecutionandacknowledgmentoftheconveyanceitself.
Inheritancetaxes
PrivateBanks. (SeeendofState BanksandTrust Companies.) orlessnumberofyearsataproportionaterate.
areleviedonallpropertywithinConnecticutpossessedbyanyresi
B
dentofConnecticutatthetimeofhisdecease,andalltangibleprop
Probate Law. (SeeAdministrationof Estates, Appeals, AssignAlc
mentsand Insolvency, Collateral Inheritance Tax, Courts, Descent ertywithin Connecticutpossessedbyanon-residentatthetimeof
t
i
m
e
hisdeathwhichpassedbygift,totakeeffectatdeathorbywillto
and Distributionof Property, Husbandand Wife, and Wills.)
anyperson,corporation,voluntaryassociationorsociety,withexemp
Ch
Protest. (SeeNotesand Billsof Exchange.)
tionsinfavorofcharitiesandoncertainparticurlakindsofproperty.
the
Records. Warranty,mortgage,quitclaimdeedsmustberecorded
Ratesofthetaxare 1 percentofthevalueofallpropertyinexcess
And
Inofficeoftown clerk intown whereland lles, also assignmentsof of$5.000passingtoparent,husband,wifeorchildupto$100,000.
with graded increases; per centonpropertysopassingtowifeor
mortgage, conditional bills ofsale, chattel mortgages, assignments
offuture earnings. Certificateoftrade-marktobefiledforrecord widowofason,husbandofadaughter,orbrotherorsisterofthe
Cla
decedent,upto$100,000;5percentofthevalueofallpropertyin fol
in office ofsecretary ofState. Certificate of unsatisfied judgment
l
tobefiledforrecordintownclerk'soffice. (SeeConveyances,Insurexcessof$500sopassingtoanypersonotherthanthosehereinbefore
mentioned, uptotheamountof$100,000:6percentabovethat
anceCompanies, Limited Partnerships, Judgments,etc.)
Redemption. (SeeMortgages.)
Replevy. Replevinliesforgoods wrongfullydetained, in which amount.TransferofCorporation Stocks. (SeeCorporations.)
Trust Companies. (SeeStateBanksandTrustCompanies.)
theplaintiffhasageneralorspecialpropertywithrighttoimmediate
possession. Awritofreplevincannotissueexceptuponanaffidavit
WarehouseReceipts. Uniform Warehouse ReceiptsActpassed
inwhichtheaffantstatesthetruevalueofthegoodstobereplevied,
andthathebelieves thatthe plaintiffisentitled totheimmediate
Allpersonsoftheageofeighteenyears,andofsound
possessionofthesame, noruntiltheplaintifffurnishesabondwith in1907.
mind,
maydisposeoftheirestate (realorpersonal)bywill.No
sufficient surety in a sum double the value oftheproperty. This devise,exceptforpublicandcharitable
Wills.
uses,orforthecareofceme
bond or recognizance must be signed bythe obligors in presence teriesorgraves, shallbemadetoanypersonsbutsuchasarest
ofatleast one witness otherthanthe authority taking therecog- thetimeofthedeathofthetestatorinbeing,ortotheirimmediate
Issueordescendants. Willsmustbeinwriting,subscribedbythe ere
nizance.
testator, and attested bythreewitnesses,eachofthemsubscribing
Sales.
les Actpassedin1907.
ServiceSaofa
writ ofsummons in case ofa residentis Inhispresence, buttheywillbeeffectualhereifexecutedaccording Exp
Service.Uniform
madebyreadingitandthecomplaintaccompanyingitinthedefend- tothelawsofthe Stateorcountrywhereexecuted. If,afterthe
makingofawill,thetestatorshallmarry,orifachildisborntothe
ant'shearing,orbyleavinganattestedcopyinthedefendant'shands
orathisusualplaceofabode; incaseofanon-resident,theseveral testator, andnoprovisionismadeinthewillforsuchcontingency
courts. other than courts of probate, and the judges, clerks, and suchmarriageorbirthshalloperateasarevocationofsuchwill
C
assistant clerks thereof, orany county commissioner,inturn time Awillorcodicilisotherwiserevokedbyburning,canceling,tearing,
orinvacation, may,exceptwhereitisotherwisespeciallyprovided orobliterating itbythetestator,orsomepersoninhispresenceby
C
hisdirection,orbyalaterwillorcodicil. Adeviseorbequestto
bylaw, makesuch ordersasmaybedeemed reasonable,in regard subscribing
witness ortothe husbandorwifeofasubscribing
tothenotice which shall be given of the institution or pendency
w
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,
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ofall complaints, writs of errorand appeal from probate. which thedeviseeorlegatcebeanheirtothetestator. Willsareproved
maybebroughttoorpendinginanycourt,whentheadverseparty. andestatessettled intheprobatecourtinthedistrictwherethe
orany person so interested therein, that they ought to be made deceasedresided.
Willsofnon-residentsowningpropertyinthisState
partiesthereto, resideoutofthe State, orwhenthenames orrealdences ofany such persons in interest are unknownto the party maybeprovedbyfilingexemplified copiesthereofindistrictwe
institutingtheproceeding; and suchnoticehavingbeengivenand propertyislocated. Suchcourseshouldalwaysbetakeninorderto
provedshallbedeemedsuficientserviceandnotice.
Areservefundof15per passgoodtitletorealestate.
Passedin1913.
Trust Companies.
StateBanksand
cent
ofaggregate ofdeposits
must be held and maintainedinthe
Workmen's Compensation Act.
bankingoffice, ofwhich 4-15must begoldandsilvercoin, demand
The
obligations of the United States or national bankcurrency.
remainderofsaid reserve fund may consist ofbalances subject to
SYNOPSIS OF
demanddraftwithreserveagents,whicharemembersoftheclearing
house associations of New York, Boston, Philadelphia, Chicago,
T
H
E
L
A
W
S O F D E L A W A R E
orAlbany; ornationalbanks,statebanks,ortrustcompanies,located
inBridgeport, New Haven,or Hartford,andofrailroadbondswhich
arelegalinvestmentsforsavingsbanks. Nonewloansordiscounts
RELATING TO
maybemadewhenthereserveisbelow15percent. Bankcommissioners may applyfor appointment ofa receiver whenthe reserve
B A N K I N G A N D C O M M E R C I A L USAGES
notice
.
fallsbelow15percentafterthirtydays'
more than 10 PreparedandRevisedbyRICHARDR.KENNEY,AttorneyatLaw,Dover.
borrow
No one person, corporation or firm may
percentoftheamountofthecapitalstockpaidinandsurplusundiThis
ofanystatebankortrustcompany.
p
r
o
f
i
t
s
combined,
vided
(SeeCardinAttorneys'List.)
doesnotapplyto collateral loans. Penalty of$3,000forviolation
Sult may be commenced bycapias,summons,and
ofthislaw. Paperof executive officers orolerks maynotbe dis(SeeConveyances.)
counted. Loanstopartiesoutsidethe Statecanonlybemadewhen (wheredefendantisnon-resident)byattachmentofproperty.
Sum
Acknowledgment.
theloansand discountsintheaggregateamounttoone-halfofthe Imonsinjustice'scourtmaybeissuedreturnableinfourdaysfrom
Idateofservice,ormaybemadereturnableforthwith,uponplainActions.
capitalstock.
Booksofabankmaybe examined bystockholdersundercertain tifffilinganaffidavitthatthereisdangerofhislosingthebenett
Insuperiorcourtthesummonsmustbe
conditions.
e
h
t
f
o
s
t
n
e
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e
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u
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f
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h
T
o
N
S
t
a
tc
e
.
served personallyondebtorbeforecourtsits,orbyleavingacopy
ofthe summons athisusualplaceofabode,inpresenceofsome
directormaybeobligatedtoabankortrustcompanyinanamount
white adultperson,
sixdaysbeforecourtsits. Servicebypubli
bydelay.
exceeding5percentofthecapitalactuallypaidinandsurplusund!- ofhisprocess
vided profits combined. This does not applyto loans secured by
collateral.
AffidavitsmaybeadministeredintheStatebythechancellor,
cationallowedinthecourtofchanceryonly.
Cashier'sbondof$10,000.
anyjudge, justice ofthepeace, ornotarypublic;andoutofthe
At least fivereports, verified by oath, must be made each year Stateby anyofficial dulyauthorizedtotakeacknowledgmentsof
tothebank commissioners, exhibiting in detailthe resources and
deeds, etc.; but before anotarypublicispreferable. Theatlant
liabilities ofthe bank ortrust company, ten days afterreceipt of
requestthereforfromthebankcommissioners,whichshallbepublished
and Insolvency. Thereisadomesticinsolvent
Inanewspaperinthecountywherethebankorthetrustcompany lawAssignments
providingforafullsurrenderandequaldistributionofallproperts
18located. Penalty of $10 for each day ofdelay in transmitting mustsigntheaffidavit.
butitisveryseldomused,andthereisnoprovisionintheactfor
report.
The
Words"bank," "trust," or"savings" mayonlybeusedbybanks, thedischargeofthedebtoruponhismakinganassignment.
assigneemustfileascheduleofpropertyassignedwithinthirtydays
trust companiesandbuildingandloanassociations incorporatedby and two appraisersarethenappointedbythechancellor. Assign
theUnited Statesorbythegeneralassembly,butthisshallnotapply
tofirmsorindividualsdoingbusinessasprivatebankers orbrokers
Domestic attachment maybeissuedagainstan
undertheirownnames,whodepositwiththe Statetreasurerabond Inhabitant
mentsmustbeforthebenefitofallcreditors
ik
ofthisState,afterareturntoasummona
slo
rec.apiasissued
of$10,000,oracceptablesecuritiesofthatamountfortheprotection tendays
beforethereturnthereof,ofnonestinventus,andproof
ofcustomersfromstylingthemselvesbankersintheconductoftheir
ofcauseofaction;oruponthefilingofanaffidavit"thatthedefend
departmaintaining
savings
business. Banksand trust companies
Attachments.
totheplaintiffinasumexceeding$50,and
mentsmustinvestdepositsaccordingtothelawsofthe Statecon- antisjustlyindebted
hasabsconded fromtheplaceofhisusualabode,orgoneoutofthe
cerninginvestmentsofsavings banks,and mustmakeswornstateStatewithintenttodefraudhiscreditors,ortoeludeprocess,a
mentstothebankcommissioners on October 1st in eachyearand
belleved." The writ directstheattachment ofpropertyand
oftenerif required by the commissioners. ofthe amount ofsuch is
summons ofgarnishees. Attachment maybedissolvedonentering
AStateBank
depositsandthesecuritiesinwhichtheyareinvested.
totheextentofthepropertylattached
securitytosatisfyanyjudgment
LawsasproorTrust Companymaybeincorporatedunder General
thatmayberecovered againstthedefendant. Onreturnofattach
videdinChapter194,Public Actsof1913.
mentthecourtappoints threepersonsasauditorsoftheclaimsof
Suits. (SeeActions.)
Surety Companies. Any corporation with a paid-up capitalof
notlessthan$250,000, incorporatedandorganizedforthepurposeof
transactingbusinessassuretyon obligations for persons or corpora-
BANKING
dledwithin twodaysafterpublication. Ifthecommissioneremploy
creditors: the creditor attaching is allowed adouble share for his
diligence,nottoexceedfullamountofdebt. Anycreditor not duly
aclerk, add "The clerk by me employed intaking, writing, tran-
scribing,andengrossingthesaiddepositions, havingfirstduly taken
the oath assigned to the said commission according to the tenor
presentinghisclaimreceivesnoshareinthedistribution.
Plaintin
isnot required to give security. Wages are exempt from attach-
thereof."
ment in N e w Castle County except for board or lodging. Foreign
attachment may be issued against any person not an inhabitant
ofthe State after a return of non est asindomestic attachment.
oruponaffidavitbeingmade"that thedefendantresidesoutofthe
Executionsarealienuponpersonaltyfromthetimethesheriff
received the writ, ifactuallevy be made within sixty days thereafter. Priority of lien remains in force five years. Execution
maybeissuedwithinfiveyearsafterdateofjudgment. Anexecution
fromajusticeisalien from time writ isreceived, iflevybemade
withinthirtydaysand priorityofwritremainsfortwoyears. E x tion can not issue after three years without revival. Goods and
chattels of a tenant are liable to one year's rent in preference to
the execution. There is no redemption on property sold under
execution or mortgage. In New Castle County wages fora month
ofemployes of corporations are preferred to the execution. Stay
ofsixmonthsisgrantedincourtsofrecorduponjudgmentsrecorded
State,andisjustlyindebtedtotheplaintiffinasum exceeding$50."
Foreign attachment may also issue against a foreign corporation,
but inthis case the amount of the real debt must be particularly
specified in the affidavit, and must exceed $50. Unlike domestic
attachments the plaintiff in foreign attachments has the benent of
his own discovery anddoes not share with other creditors. It is
similartodomesticattachmentinallrespectsexcept as toappointm e n t of auditors a n d distribution a m o n g creditors.
The court or
anyjudgeuponpetitionmayinvestigateanyallegationinaffidavit,
f o r w a n t of affidavit ofdefence, provided security be given within
except as to the amount ofthedebt, anddissolve the attachment
ifsufficientgroundbenotshown. Foreignattachmentisotherwise
dissolvedbyenteringspecialball.
Banks. Thereisnogeneral bankingactandbutoneStatebank,
whichwascharteredbythelegislaturein1807. Banking companies
cannotbeformedatpresent,astherehasbeennostatutoryprovision
for so doing.
twentydaysafterjudgment. Injustice'scourtsdefendantmayhave
sixmonths'stay,uponpleadinghisfreehold; ninemonths'stayupon
givingsecurity.
Exemptions. No homesteadlaw. Family pictures, bible, and
Mbrary; lot inburialgroundandpewinchurch; allwearingapparel;
sewingmachinesinprivatefamilles; toolsoftradenottoexceed $50
InKent, or$75 i n N e w Castle County; and to theheadofafamily
I n N e w CastleCounty$200 ofpersonalpropertyandinKentCounty
$150, consisting ofhouseholdgoods only. No additional exemption
InSussex. The provisions of the exemption law extend andapply
toapersondyingand leaving awidow, giving andsecuringtosuch
widowthesamebenefitofexemptionthatherhusbandwouldhavehad
Ifliving. Wages areexemptfromexecutionattachmentinNewCastle County except for board orlodging. Pianosandorgansleased
or sold under contract exempt from execution process ordistress
T h e holders of stock are taxed at the rate of o n e
fourthofonepercentumonthe cash valueofeachshareofcapital
stock.
T h e r e h a v e b e e n recently several trust companies formed in
the State, either by special act before the 1897 constitution, and
bygeneral corporation act since, which have beengrantedbanking
powersbyspecial statute.
1383
AND COMMERCIAL L A W S - D E L A W A R E
B a n k s a n d t r u s t companiesare n o w s u b -
Ject toexaminationand inspection by insurance commissioner.
Bills and Notes. Acceptance should be in writing on thebill.
All checks, notes, drafts, orbills, foreign or inland,payable without
timeoratsight, aredueonpresentmentwithoutgrace.
Chattel Mortgages must beaccompanied withanaffidavit that
for rent, provided the lessor or
writing ofthe claim thereof.
vendor notifies the landlord in
theacknowledgmentthereof, isavalidlienforfiveyearsonpersonal
Frauds. Saleofgoodsvoldas tothird parties,unlessforavaluableconsideration and the possession thereof be actuallydelivered
tothe vendee. Apromise to pay thedebt, default, or miscarriage
property, thepossession o f w h i c h m a y remaininthemortgagor.
C l a i m s Against Estates of Deceased Persons are paid i n t h e
promisee: for anamount between $5 and $25 must be proved by
the mortgage is m a d e forthe bona fide purpose of securingadebt.
a n d n o t to defraud creditors, a n d i f recordedwithintendays from
ofanotherto theextentof$5isbinding ifprovedby t h e o a t h o f t h e
one credible witness or s o m e m e m o r a n d u m in writing signedby the
followingorder: 1. Funeral expenses. 2. Billsformedicine, medical attendance, nursing, and necessaries for last sickness of the
personto be charged therewith; foranamount exceeding $25 there
must be some memorandum or promise in writing signed by the
partytobechargedtherewith.
Garnishment. Allpersonsexcept publicofficers,attorneys,etc..
are subject to summons as garnishees. Wages are not subject to
garnishmentin N e w Castle County except for board or lodging.
Holidays, Legal. January 1st, February 12th, February 22d
May30th, July4th, first Monday inSeptember, Thanksgiving Day,
and Christmas, and Saturday afternoon In New Castle County. If
legalhollday falls onSundaythe next day isobserved. Negotiable
paper falling due on legal holiday isdueand payable onthe next
preceding secular day;if falling due on Saturday half-holiday, if
notpresentedforpaymentbeforenoon,isnotduetillthenextsucceed-
deceased. 3. No more than one year's wages of servants i n h o u s e
andlaborer on a farm. 4. R e n t f o r n o t m o r e t h a n one year, elther
growing due or in arrears. 5. Judgments and decrees in equity
against deceased. 6. Recognizances, mortgages, and other obligations of record.
7. Obligations a n d contracts under seal.
8. Con-
tracts under hand for the payment of money, delivery of goods,
wares
or
merchandise.
9. Other
demands.
Administration
is
granted: 1. To the person entitled to the residue. 2. To one or
moreofthe creditors. 3. To any suitable person, resident ornonresident. Bond must be given for anamountdouble the valueof
the estate. Notice must be given of claims against the deceased
withinsixmonthsfromgrantingofletters (except claims ofrecord),
orexecutor oradministrator is protectedinpayingdebtsofa lower
expiration of that time, he need not make distribution, nor ishe
chargeablewithinterestontheassetsinhand. H e m a y beremoved
uponsufficientcause. Lettersgrantedinotherstatesandproduced
underthe seal ofthe officerorcourt granting thesame,iscompetent
ingsecularday.
H o m e s t e a d . ThereisnohomesteadlawinDelaware.
Interest. Legal rateis 6 percent. A n y personwhotakes more
fortheuseortheloanofmoneyshallforfeitandpaytoanyone suing
forthesameasum equal to themoneyloaned, one-halffortheuse
authorityforhim t o a c t i n this State.
o f t h e State, a n d the other for the party suing.
grade. One year is allowed for settling the estate, and until the
Judgmentsofcourtsofrecordareliensuponallrealestateofthe
Contracts are joint and several, unless otherwise expressed.
debtor in the county where judgment is entered from their date.
b u t t h e l i e n m a y b e e x t e n d e d i n t o e i t h e r o r b o t h t h e o t h e r counties.
Conveyances of Real Estate mustbe under seal (a scroll is
sufficient),andshouldbeexecutedbeforeonewitnessatleast. Deed
m a y be acknowledged out of the State before any consul-general,
consul, or commercial agent of the United States, duly appointed
inanyforeigncountryattheplacesoftheirrespectiveofficialresidence;
beforethejudge ofanydistrictorcircuitcourtofthe United States,
orthechancellororanyjudgeofacourtofrecordofanystate,territory,orcountry, orthemayororchiefofficerofanycityorborough,
andcertified under the hand of such chancellor, judge, mayor, or
officer,andthesealofhisoffice,court, city,orborough, bycertificate
endorsedupon or annexed to the deed; or such acknowledgment
Judgments can only be obtained in this State upon judgmentsin
otherstatesbysuit,upon acertifiedcopyoftherecord ofsaidjudgmentauthenticatedundertheAct ofCongresspassedMay 26, 1790.
Transcripts ofjudgments recoveredbeforejustices o f t h e p e a c e m a y
beenteredinthesuperiorcourtandthusbemadeliensonreal estate
after execution a n d return by
Constable on goods ofdefendant.
Satisfactionmustbeenteredwithinsixtydaysafterpayment.
Limitations. Contractsnotunderhandandbookaccountsthree
years,billsandnotesunderhandsixyears. Judgmentsandspecialtlesaremerelypresumedtohavebeenpaidafterthelapseoftwenty
years, but this presumption m a y be overcome by proofto thecontrary. Ail judgments mustberenewed witnin ten years in order
topreservetheirlien on real estate. Thestatutedoesnotbegin to
orproofmaybetakeninanysuchcourtandcertifiedunderthehand
oftheclerk or other officerofsaid court, andtheseal ofsaldcourt
inlikemanner. Incase of such certificate by ajudge, the seal of
hiscourtmaybeaffixedtohiscertificate, orto a certificate ofattestation oftheclerkorkeeperoftheseal. Such acknowledgment
mayalso be taken by any commissionerof deedsfor this State, or
byanotarypublicofanystateorterritory. Wifemustjoinindeed
to bardower,andhusbandto barcurtesy. Adeedbyacorpora-
runinfavorofnon-residentdebtor until he c o m e into the State, in
suchmannerthat he may be served with process, and if a debtor
remove afterthecauseofactionhasaccrued,thetimeofhisabsence is
not computed. On recognizances of sheriffs', administrators', or
executors' bonds, within six years from date. Bond of guardian
within three yearsfromthedeterminationofguardianship.
Married W o m e n retain their real and personal property owned
at marriage or received from any person other than the husband.
Mayreceivewagesfortheirpersonallabor,andprosecuteanddefend
suits for preservation and protection of their own property, as if
unmarried, andthe rents, Issues, andprofits oftheirseparateestate
arenotcontrollablebythehusband. Dower: Thewidowisentitled
toone-thirdpartofallthelandsandtenementswhereofherhusband
tionmaybeexecuted andacknowledgedby the president or other
presidingofficerdulyauthorizedbyresolutionofthedirectors,trustees,
orothermanagers,orbythelegallyconstituted attorneyofsuchcorporation under its corporateseal. Deedsmustberecordedwithin
threemonthsaftersealinganddelivery, to avall against creditors,
mortgagee, orbonafidepurchasers,without notice.
Corporations. General Corporation Act for all purposes other
ofcapitalstocknotpaidininproportiontotheamountsubscribed
byhim. Corporations of other states may besuedinthis State.
andthepropertyofthesamefoundheremaybeselzedbyattachment.
Allforeigncorporationsmust filewiththesecretaryofstate,statementofassets and liabilities, and the name ofits authorized agent
uponwhomprocess may be served; must paya State taxof$50,
andfeesofsecretaryofstate(this Statetaxispaidbutonce) must
filewiththeprothonotaryofeachcounty thenameofauthorized
agentuponwhomprocessmaybeserved.
Costs. Non-residentplaintiffsmayberequiredtogivesecurity
forcosts.
thanbanking. Eachstockholderisindividually liablefortheamount
w a s seizedat a n y time during her marriage, unless she shall have
relinquishedsuch right, forandduring the term ofher natural life.
Ifherhusbanddiewithout issue or the children ofissueshe takesa
moietyinsteadofathirdpartoftherealestate. Amarriedwomen
o f t h e a g e o f t w e n t y - o n e yearsand upward maydisposeofherprop-
erty, both real and personal, by will, without the writtenconsent
ofherhusband, but subject to his right of courtesy.
thesuit.
1
M o r t g a g e s ofReal Propertyareexecutedand acknowledgedlike
other deeds. T h e y become a llen f r o m the time they are lodged
Courts. Terms and Jurisdiction. The different courts of the
Stateareas follows: Supremecourt; regular termat Doverthird
Tuesdayin June and January. Court ofchancery and orphans'
court; regular terms, New Castle County, at Wilmington, on the
fourth Mondayin Marchand second Monday in September; Kent
withthe recorder. Uponforeclosureofsamethereisnoredemption
ofproperty.
berecovered.
Justice's jurisdiction, $200.
Depositions. Inany suit pending,theprothonotary,onapplication, entersarulecommission onthepartoftheapplicanttoany
commissionerofthe Stateorotherperson. Thecommissionissues
ontendays'noticeof interrogatories filed. Exceptionstointerrogatoriesmust be filed before the commission issues, and are heard
beforeajudgeat chambers. Exceptions to theexecution mustbe
A purchasemoney mortgageshouldberecorded within
thirtydaystoavailagainstasubsequentInnocentholder.
Proof of Claims.
The full individual names of plaintiffs a n d
defendants, together with style ofdoing business, must be stated;
orifacorporation,thelawsofwhat stateunderwhichincorporated,
One of the plaintiffs,ifa partnership, or the treasurer or cashier
ofacorporation, must makeaffidavit totheamountclaimed, giving
County, at Dover, third Monday inMarch and third Mondayin
September; SussexCounty,atGeorgetown,secondMondayinMarch
andfirstMondayinSeptember. Superiorcourt,andcourtofgeneral
sessionsareheldinNew CastleCountyat WilmingtonthefirstMondayinJanuary, March, June,andNovember and third Mondayin
September, inKentCountyatDover,thefirstMondayin Julyand
thethird Monday in February, April, and October, andin Sussex
CountythefirstMondayin February, April, and Octoberandlast
MondayinJunein Georgetown. Oyerandterminermeets oncall
ofjudges. Jurisdiction-The superiorcourt has jurisdictioninall
civilcases, but ifsuit bebroughtforless than$50, costswillnot
T w o ormore
witnesses are necessary for a will. Husband and wife may testify
inall civilactionsin which either or both are ormaybeparties to
an itemized c o p y of the cause of action attached thereto.
It is
advisable to have the affidavit made beforeanotary public, though
I t m a y b e madebeforeothers. (See Affidavit.)
Protest. (SeeBillsandNotes.)
1
Replevin. The writ issues out of the superior court to obtain
possession of goods unlawfully taken or unlawfully detained. No
affidavit is required, but before the officer to w h o m i t is directed
canexecuteittheplaintiff orsome substantial personfor him must
enterinto bond to such officer in a penalty ofdouble the valueof
thegoods to be replevined,conditionedto prosecute thesuitwith
effect,etc. Defendantmaygivecounterbondandretainthegoods.
Summonsmaybeservedonthedefendantbystatingthesubstanceofittohimpersonallyatanytimebeforethereturnofthe
writ,orbyleavingacopyofitathisusualplaceofabodeinthe
B A N K I N G A N D C O M M E R C I A L L A W S - D I S T R I C T OF C O L U M B I A
1384
Attachments mayissueat institution ofsuitorsubsequently,
presence ofsome adult person six days before the return thereof. uponaffidavitofplaintifforhisagent,supportedbythatofoneor
Againstacorporationmaybeservedonthepresidentorheadofficer,if morewitnesses,showingthegroundsofhisclaimandrighttorecover.
residinginthe State,andifnot,onanyofficer,director, ormanager andthatdefendantisanon-resident,orevadesserviceofprocess,of
ofthecorporation. Inchanceryservice maybehadbypublication isabouttoremove,assign,disposeof,orsecretepropertywithintent
underorderofthechancellor. Fromajustice servicemustbeper- tohinder,delay,anddefraudcreditors,orthatthedebtwasfraudu
sonalifforthwith,otherwisefourdaysmustintervenebeforehearing. lently contracted. Creditormust give bond, withapprovedsurety
Taxeslaid and imposed bythelevy courtofa countyorbythe orsureties,tobeapprovedbythe clerk,intwicetheamountofhis
Stateforitsownpurposes,arealienuponalltherealestateofthe claimforcostsanddamagesifattachmentiswrongfullysuedout.
taxableuponwhomthey areimposed, fortwo years, and such lien
Billsand Notes. ThecommonlawofEnglandrelativetobills
haspreference toallother liens againsthim. Generalassessments andnotes,exceptwherechangedbystatute,governsallcasesinwhich
AlawsimilartotheNewYorkNegotiableInstretheyareinvolved.
aremadeeveryfouryears.
Wills. Any person ofthe age of twenty-one years or upward, mentsLawisnowinforceinthisDistrict. (SeeLegalHolidaysand
ofsound mind, maymakea willas well ofrealas personalestate.
Everywillmustbeinwritingandsignedbythetestator,orbysome
Protest.)ChattelMortgages. Nobillofsaleormortgageordeedoftrust
person subscribing thetestator's namein his presence and by his tosecureadebtofanypersonalchattelswhereofthevendor,mort
by gagor, ordonorshallremaininpossession,isvalidandeffectualto
express direction, and attested and subscribed in his presence
A
w
i
l
l
be
v
o
i
d
.
two or more credible witnesses, or it shall
passthetitle herein, except as betweenthepartiestosuchinstru
shall be proved before the register of the county in which mentandasto
otherpersonshavingactualnoticeofit,unlessthe
the testator resided at the time of his death. A nuncupative samebeexecuted and acknowledgedandwithintendaysfromthe
willofpersonal estate notamountingtoover$200 and pronounced dateofsuchacknowledgmentrecordedinthesamemannerasdeeds
bythetestatorinhislastillnessinthepresenceoftwoormorewitofrealestate; andastothirdpersonsnothavingnoticeofit,sued
nessesis valid ifreduced to writingand attested bysaid witnesses
shall be operative only fromthetimewithinsaldte
within three days after. Children born after the date ofthe will Instrument
dayswhenitisdelivered totherecorderofdeedstoberecorded.
e
s
t
a
t
e
are
entitledtothesameshare
of
theparent's
oftheparent
Collaterals. Theholderofthenoteascollateralsecurityfordebt
asifsuchparent had died intestate.
standsuponthesamefootingasthepurchaserandmaymaintainsull
Thecollateralpledgedmaybesoldin
thereon forhisown benefit.accordancewiththetermsofthecollateralnotewhichusuallypro
videsthatthecollateralmaybesolduponnon-paymentoftheprin
cipalofthenote,eitheratpublicorprivatesale,andinsuchcasesthe
purchaseratanysuchsaleobtainsavalidtitletothecollateralsold.
SYNOPSIS OF
Contracts. Every contractand obligationenteredintobytwo
ormorepersons,whetherpartnersormerelyjointcontractors,whether
underseal ornot, written orverbal, andwhetherexpressedtobe
T H E
L A W S
OF
jointandseveralornot,isforthepurposesofsuitdeemedjointand
several. Onthedeathofoneormoreofsuchpersons,hisortheir
executors, administrators,orheirsareboundbysaidcontractinthe
samemannerandtothesameextentasifthesamewereexpressed
T H E
D I S T R I C T
OF
C O L U M B I A
Inactionsexcontractuagainstallegedjoint
RELATINGTO
BANKING A N D COMMERCIAL USAGES
Preparedand Revised byJOHN B. LARNER, Esq., Attorney atLaw
Washington.
tbilityinordertomaintainhisactioa,
obejointandseveral.debtorsitisnotnecessaryfortheplaintifftoprovetheirjointla
butheisentitledtorecover
asinactions ex delicto, againstsuchofthedefendantsasshallbe
shownbytheevidencetobejointlyindebtedtohim,oragainstone
only,ifhealoneisshowntobeindebtedtohim,andjudgment
berenderedasiftheothershadnotbeenjoinedinthesuit. Anyof
severaljointdebtors,whentheirdebtisoverdue,maymakeaseparate
compositionorcompromisewiththeircreditors.
Corporations. Anythreeormorepersonsmayformacompany
forthepurposeofcarryingonanyenterpriseorbusinesswhichmaybe
lawfullyconductedbyanindividual, exceptingbanksofcirculation
ordiscount,railroadsandsuchotherenterpriseorbusinessasisother
wiseprovidedfor. Suchcorporationsmayhaveaperpetualexistence.
Nosuchcompanyisauthorizedtotransactbusinessuntil10percent
ofthecapitalstockshallhavebeenactuallypaidin,eitherinmoney
orpropertyat itsactualvalue;andtherecorderofdeeds,before
filinganycertificateofincorporation,mustbesatisfiedthattheentire
capitalstockhasbeensubscribedforingoodfaith. Allofthestock
holdersofsuchcompanyareseverallyandindividuallyliabletothe
creditorsofthecompanyinwhichtheyarestockholdersfortheunpaid
amountdueuponthesharesofsaidstockheldbythemrespectively.
foralldebtsandcontractsmadebysuchcompany,untilthewho
amountofcapitalstockfixedandlimitedbysuchcompanyshallhave
beenpaid in, andacertificate thereofshallhavebeenmadeand
Every such companymust annually, exceptinsurance
companies, withintwentydaysfromthefirstofJanuary,makea
recorded.
report,whichshallbedulypublishedandwhichreportshallstatethe
amountofcapitalandtheproportionactuallypaidandtheamountof
Foreigncorporations
bs
us
na
th
rr
io
ct
ofColumbiaaresubjectto
serviceofpd
rooicnegs
oi
nntehsesiir
ge
eDnitssto
n
thepersonsconductingtheirbusiness,orbyleavingcopythereofat
e
x
i
s
t
i
n
g
d
e
b
t
s
.
theprincipalplaceofbusinessofsuchcompany,orattheresidence
Theaffairsofthecorporationshallbemanagedbynotlessthanthreenormorethanfifteentrustees,amajorityofwhom
mustberesidentsoftheDistrict,tobeannuallyelected,exceptfor
ofitsagent.
thefirstyear,bythestockholders
,atsuchtimeandplaceasmaybe
Thefeeoftherecorderforfilingallcert
ficatesofincorporation wherecapitalstockisauthorized isforty
providedbytheby-laws.
(40)centsoneach$1,000oftheamount
n,assetforthinitscertificate
oitaroprocehtfokcotslatipaceht,fporovidedthatnofeeshall
Acknowledgments. Thedeedofacorporationshallbeexecuted
byhavingthesealofthecorporationattachedandbeingsignedwith
thenameofthecorporation,byitspresidentorotherofficer,andshall
be acknowledged as the deed of the corporation by an attorney
appointedforthatpurpose, byapowerofattorneyembodiedinthe
deedorby oneseparatetherefrom, underthe corporateseal, to be
annexedtoand recorded withthedeed.
AcknowledgmentofDeeds. Whenanydeedorcontractunder
seal relating toland isto be acknowledged out ofthe District of
Columbia, but withinthe United States, the acknowledgment may
bemadebefore any judge ofa court ofrecord and oflaw, orany
chancellorofa State,anyjudgeorjusticeofthesupreme, circuit, or
territorialcourtsofthe United States,oranyjusticeofthepeaceor
Provided that the certificate of acknowledgment
notary p
u
b
l
i
c
:
a
f
o
r
e
s
i
d
, madebyanyofficerofa
StateorTerritory,nothavinga
seal. shall be accompanied bya certificate oftheregister, clerk, or
otherpublicofficerthattheofficertakingsaidacknowledgmentwas
Deedsmadeinaforeigncouninfacttheofficerheprofessedtobe.
trymaybeacknowledgedbeforeanyjudgeornotarypublic,orbefore
anysecretaryoflegationorconsularofficeroractingconsularofficer
oftheUnitedStatesassuchconsularofficerisdescribedinsection1674
oftherevisedstatutes ofthe United States, andwhentheacknowledgmentismade before any other officerotherthanasecretary of
legation or consular officer oracting consularofficerofthe United
States,theofficialcharacterofthepersontakingtheacknowledgment
shallbecertifiedinthemannerprescribedastodeedsoutofthe Disf Columbia
o t but
c withinthe
i r tUnited
- Sn
c deeds
f o
tateso. No
veyanceofeitherrealorpersonalestatebyindividualsshallbeexecutedoracknowledgedbyattorney.
Actions. The common lawforms ofactionsare used except as
modified bystatutes. The
probate court, a special term of the
Administration. Districtof
supremecourtofthe
Columbia,hasexclusivejurisdiction
ofthe settlement of estates. Awritten petition statingthe facts
.
s
l
i
w
f
o
r
e
t
s
i
g
e
r
h
t
i
w
d
e
l
i
f
b
t
s
u
m
e
a
c
h
t
n
i
s
o
i
t
e
p
s
i
h
T
acteduponbyajusticeofthesupremecourtoftheDistrict,whosits
daily. Allexecutorsand administratorsandguardiansarerequired
.
t
r
u
o
c
e
h
t
y
b
d
e
v
o
r
p
a
e
b
o
t
y
i
r
u
c
e
s
h
t
i
w
d
n
o
b
e
v
i
g
o
t
r
a
t
s
e
h
T
maywaivethegivingofbond,butthecourtalwaysrequiresabond
sufficienttocoverthedebtsofthedeceasednottoexceeddoublethe
valueofthepersonalestate. ByactofCongress, certaintrustcompaniesincorporatedthereundermayactasexecutororadministrator
without bond, and corporations having powerundertheircharters
mayactassuretiesinallcaseswhereindividualscan. Creditorsmay
bebarredinthirteenmonthsprovidedtherequirednoticeisproperly
published. Probate courtmayordersaleofrealestatetopaydebts,
incase personalassets areinsufficient. Assets ofnon residents in
DistrictofColumbiaaresubjectto claimsoflocalcreditorsforone
yearafterdeath.
Affidavits. Affidavitsforuseinthe District ofColumbia should
betaken before a justice ofthe peace, notary public, judge ofany
courtof record, ora United States commissioner.
Aliens. Allens may hold personal property in the District of
Columbla,andmayacquirerealestatebydescent. Allencorporations
are prohibited from acquiring real estate. Corporations of which
over50percentofthestockisormaybeownedbypersonsorassociations not citizens of United States can not acquire or own real
estatein DistrictofColumbia.
Appeals. Appealswillliefromthemunicipalcourttothesupreme
courtofthe Districtof Columbiawheremorethan $100isinvolved,
andinactionsfortherecoveryofpossessionofrealestate. Appeals
maybetakenfromthesupremecourtofthe Districtof Columbiato
the court ofappeals ofthe District ofColumbia. Appeals may be
takenfromthecourtofappealstothesupremecourtofthe United
States.
1. Incaseswherejurisdictionoftrialcourtisinissue.
2. Prizecases.
3. Constitutionalquestionsortreatiesinvolved.
4. Wherevalidityofanyauthority exercised under U. S.,byan
officerisin questionand
5. ConstructionofanylawofU. S.isdrawninquestion.
Arrest. There isno imprisonment for debt in the District of
Columbia.
Thecourthasthepowertoimprisonfornon-paymentof
Alimonyindivorcecases.
Courtsin session continuouslythroughouttheyear. Sultson
c
ontracts. accompanied
by sufficient affidavitofright torecover,
belessthan
$25.
resultinjudgmentin
twentydays,exclusiveofSundaysandlegal
holidays,afterdayofserviceondefendant,unlessdefendantfilesan
affidavitsetting forthfactswhich, iftrue,wouldinlawconstitute
Thefollowingformofdeedisnowallthatisrequiredt
avaliddefense.
theDistrictofColumbiatoconveyafeesimpletitletorealestate:
DaysofGraceabolished.
hn
eo
ye
.n
by
.fa
(rh.e.r.e.I
sm
ee
r.t.c.o.n
Deeds. witnesseth: Thatinconsideraitnito
dograntunto(hereinsertgrantee's
Thisdeed,madethis....dayof.
ebircsedereh(teah
tll
a,.).laeS(
o
f
Adeedmustbeacknowledged
s
i.deration), I,thesaid..... andrecordetdhweiptrhotp
her
rt
ey
c)orderofdeeds
andtakeseffectfromthetimeofrecording. Ascrollisconsidereda
name),of..
Witness myhandandseal.
Depositions ofwitnessestobeusedinanycivil
causewhetherthecasebeatissueornot,maybetakenunderanyof
sufficientseal.
bu
ey
he
e
2. WhereWhere
thewitntehseswiist
ln
ie
ks
es
lyl
tiovgeoso
toonfdtth
Depositions.
Statesoroutofthe Districtandnotreturnintimeforthe
United
Wherethewitnessisinfirmoraged,orforanyreasonthe
the following
conditions: 1.
partydesiringhistestimonyfearhemaynotbeabletosecurethesame
DistrictofColumbia.
atthetimeoftrial,whetherthesaidwitnessresideswithintheDis
4. Ifduringthetrialanywitnessisunable,byreason
t
l.
orfisai
ckn3.
ess,orothercause,toattendthetrial,thedepositionofsuch
witnessmay,inthediscretionofthecourt,betakenandreadatthe
trial. Thedeposition maybetakenbeforeanyjudgeofanycourtof
trictornot.
theUnited States;beforeanycommissioner orclerkofanycourtof
theUnited States,oranyexaminerinchanceryofanycourtofthe
United States; beforeanychancellor,justice,orjudgeorclerkof
anycourtofanyStateorTerritoryorotherplaceunderthesover
eigntyoftheUnited States,oranynotarypublicorjusticeofthe
peacewithinanyplaceunderthesovereigntyoftheUnitedStates.
Provided,thatnosuchpersonshallbeeligibletotakesuchdeposition
whoiscounselorattorneyforanypartytothecause,orwhoisin
Theordinary
rc
uh
li
el
sd
oo
fr
dc
eh
si
clednrtem
n
,aoyr
1.Ifanintestate
leaves a
anywiseinterested
intheeventofthecause.
descendantofsuchchildorchildren,hispropertydescendstosuch
chi
l
d
o
r
c
h
i
l
d
r
e
n
,
o
r
t
h
e
i
r
d
e
s
c
e
n
d
a
n
t
s
,
s
u
b
j
e
c
t
o
n
l
y
t
o
t
h
e
d
o
w
e
r
r
i
g
ht
DescentandDistribution. 2. Iftheestatedescendedtoth
e
bestatedasfollows:
intestateonthepartofthefatherormotherandtherebenochildor
ofthewidow, iftherebeone.
ehtd
desc
ofthS
fath1
widd
kind3
I
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ther1
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brotR
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afat
the
them
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1
1385
BANKING AND COMMERCIAL LAWS-FLORIDA
thedescendantofanychild,thentothebrothersandsistersandtheir
descendants. 3. I f n o n e , to the mother orfatherorthe ancestor
o f t h e intestateand their descendants o f t h e b l o o d o f t h e mother or
father,grandmotherorgrandfather,asthecasemaybe,subjecttothe
widow'sdower. 4. I f n o n e , then to the husband or wifeand their
kindredinequaldegree, equally, 5. No distinctionbetweenwhole
Partnerships. Limited partnerships for the transaction of any
mercantile, mechanical,ormanufacturingbusinesswithintheDistrict
maybeformedbyanytwoormorepersons,butthenumberofspecial
partners is limited to six. The special partners are not liable for
thedebts of the partnership beyond thefundcontributedbythem
andhalfbloodonpartofparentfromwhomestatedescended. 6. If
to the capital. A certificate setting forth the firm name; general
nature of the business to be conducted; names of all the general
therebenoheir, the lands shallescheat totheDistrict ofColumbia
and special partners interested therein, distinguishing which are
PersonalProperty: Ifawidowandnochildordescendants,parent.
brother or sister or descendants, the w i d o w shall have the whole.
efchild or descendants, the w i d o w shall have one-third only if in
childordescendants, butparent, brother, etc., the w i d o w shallhave
one-half. T h e surplusshallgoasfollows: (1) Ifchildrenordescendants,tothemequallyperstirpes; (2) Ifnochildordescendantsand
afather, thentothefather; (3) Ifnofather, b u t a m o t h e r , then to
themother; (4) If none, but abrother or sister or descendants, to
themequally perstirpes; (5) Ifnone, to collateral relations in equal
degree: (6) Thereis nodistinctionbetweenthewholeandhalfblood;
(7) No representation after descendants of brothers a n d sisters;
(8) B e y o n d the fifth degree, the personal estate goes to the District ofColumbia. (9) T h e husband o n d e a t h of thewife isentitled
toallherpersonalpropertyinpossession withoutadministration,but
administrationisusuallyresortedtoforprotectionofpartiesdealing
with t h e h u s b a n d .
D o w e r . Awifeisentitledtodowerinallrealestateownedbythe
h u s b a n d a t t h e timeofhisdeath. Includingequitableaswellaslegal
estates.
Evidence. (See Depositions.)
Executions. Executionsmaybelevied uponallgoodsandchattels of thedebtornot exempt, and upongoldandsilvercoin, bank
notes or other money, bills, checks, promissory notes or bonds, or
certificates ofstockin corporations o w n e d by salddebtor, a n d u p o n
m o n e y o w n e d by h i m i n t h e h a n d s o f t h e marshal oroftheconstable
general a n d which are special, a n d their respective places of residence; the a m o u n t of capital contributed by each special partner
to the c o m m o n stock: a n d the period at which the partnership is
tocommenceandterminatemustbefiledwiththeclerkofthesupreme
courtafterhaving been acknowledgedinthe manner prescribed for
deeds.
Protest. M a y b e m a d e by a notary public under his h a n d a n d
seal; or by a n y respectable resident of the place where the bill is
dishonored,inthepresenceoftwoormorecrediblewitnesses. W h e r e
aforeignbill, appearingonits face to be such,isdishonoredbynonacceptance.It must b e d u l y protested for same; a n d where s u c h a
bill which has not previously been dishonored by non-acceptance,
Isdishonored by non-payment.It mustbeduly protested forsame.
ifitisnotprotestedthedrawerandindorsersaredischarged. W h e r e
abilldoesnot so appear to beaforeign bill, protest thereofin case
ofdishonor isunnecessary. Theprotestmustbeannexedtothebill
or contain a copy thereof a n d must state the (1) time and place
for presentment; (2) the fact that presentmentwasmade a n d the
m a n n e r thereof; (3) the cause or reason for protesting; (4) the
d e m a n d m a d e and the answer given, if any, or the fact that the
draweroracceptorcannotbefound.
Records. The exemplification of the record under the hand of
t h e k e e p e r o f t h e s a m e , a n d theseal oftheoffice orcourtwhere such
record m a y b e made.Is good a n d sufficient evidence to prove a n y
recordmade orenteredinanyoftheStatesorTerritoriesoftheUnited
States; a n d the certificate of the party purporting to be the keeper
chargedwiththeexecutionofsuchwrit,andalsouponalllegalleaseholdandfreeholdestatesofthedebtorinland. Executionsonjudgments beforejustices ofthe peace m a y b e superseded, according to
theamountofthejudginent, upongoodandsufficientsecuritybeing
ofthatfact. A c o p y of the r e c o r d o f a n y d e e d or otherinstrument
inwriting not of a testamentary character, where the laws of the
tlons,tosecurethedebt,costsandinterestsfromone tosixmonths,
realpropertylocatedinthe District, aboveall liabilities and exemp-
such record, a n d which has been recorded agreeably to such laws.
buttherecanbenostayofexecutionforwagesofservantsorcommon
laborers, nor uponany judgmentforless than $5.
to probateand record, byjudicialdecree, and ofthedecree of the
wearing
oftheclerkorotherkeeperofsuch recordandthesealofthecourt
entered by a p e r s o n w h o m a y at the time be the owner of sufficient
Exemptions.
(Actual
residents.)
In
addition
to
apparel, etc., household furniture to the value of $300, Implements
ofdebtor'stradeorbusiness to the value of $200,stockforcarrying
onbusiness to a m o u n t of$200, one horse, harness and cart, wagon
or dray, a n d earnings of married m e n or heads of families, not to
exceed $100 per month for two months. Exemptions are only
allowedwhere the party claiming such is the headofafamily or
householder residing in the District.
Foreign Judgments. Sults m a y be institutedin the supreme
courtoftheDistrictofColumbiaonanyjudgmentofacourtofrecord
Inany otherjurisdiction. The declarationinany suchcasemustbe
accompanied byatranscriptofthe recordofsuchjudgmentverified
accordingtotheactofcongressinsuchcasesmadeandprovided,and
judgmentindue course may be rendered on such transcript as in
a n y o t h e r case.
of such record,accompanied by such seal,is prima facle evidence
State, Territory, orcountry wherethesamemayberecorded require
and the copyofany will which said laws require to be admitted
court admitting the s a m e to probate a n d record, under the h a n d
orofficein which therecordhasbeenmade,is primafacleevidence
toprovetheexistenceandcontentsofsuchdeed,will,orotherinstrumentinwriting,andthatitwasexecutedasitpurportstohavebeen.
Taxes. One and one-half per centum upon assessed value of
property, real and personal. Penalty of1 per cent per month for
defaultinpayment. TaxesarepayableinMayofeach year. N e w
assessmentsaremadeeverythreeyears,forrealestate(unlessimprove
mentsare put on) and every year forpersonal property by a per-
1
manentBoardofAssessors.
TrustCompanies. Trustcompaniescanbeorganized underthe
general provisions of the code onthatsubject. No trust company
canbeincorporated withless capital stock than $1,000,000. May
doastoragebusinesswithacapitalizationofnotlessthan$1,200,000.
Foreigncompanies desiring tooperateintheDistrict must firstcom-
Garnishment. After judgment the writ of garnishment may
Issueagainstspecificpropertyorcreditsinthehandsofthegarnishee
and onthe return ofthe 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.
H u s b a n d a n d W i f e . Thewife'spropertyisexemptfromthehusband's debts. The husband m a y convey direct to his wife. The
wifemayuseallofherpropertyofeverydescriptionasfullyasifshe
wereunmarried, andmaydisposeofthe sameby deed,etc.,asfully
asifshewereunmarried. S h e a l s o h a s p o w e r t o t r a d e a n d t o s u e a n d
b e s u e d , b u t n o marriedwomanundertheageoftwenty-oneyearscan
makeavallideedorconveyance. Onthedeathofamarriedwomanthe
husbandisentitledtoanestatebycourtesyinherfeesimpleproperty
ofwhichshedies Intestate. O n t h e death ofthe wife intestateher
entire personal estate becomes the property of her husband. The
husbandis not liable for the debts of his wife contracted before
marriage. Ahusband, who willfully neglects to provide forwifeor
minorchild under sixteen years, indestitute circumstances, m a y b e
adjudgedgullty ofamisdemeanor,and maybefined, orimprisoned,
by the court having jurisdiction.
Interest. ThelegalrateofinterestintheDistrictofColumbiais6
percent,andinanysultwherethecontractistaintedwithusurythe
plaintiffforfeltsthewholeoftheinterestsocontractedtobereceived,
andwhere usurious interesthasbeen paidit can be recovered providedaction for such recovery be brought within one year. I n a n
actiononacontractforthepaymentofahigherrateofinterestthan
islawful in the District, made or to be performedinany stateor
plywiththeprovisionsfortheorganizationoftrustcompaniesunder
thelawsofthisDistrict.
Wills. All willsandtestaments m u s t b e i n w r i t i n g a n d signed by
thetestator,orbysomeotherpersoninhispresenceandbyhisexpress
directions, andshallbe attested and subscribedin the presence of
thesaid testator by atleast two credible witnesses.
No will, testa-
ment, or codicil is effectual for any purpose whatever unless the
personmakingthesamebe,ifamale, ofthe fullageoftwenty-one
years, andifafemale, ofthefull ageofeighteen years, and beat
thetimeofexecuting or acknowledgingit. of sound and disposing
mind andcapable ofexecuting avalld deed orcontract. Anywill
executedafterJanuary17,1887,andbeforeJanuary1,1902,devising
real estate, from whichit shall appear t h a t i t w a s the intention of
thetestator to devise property acquired after the execution thereof
shall be deemed, t a k e n a n d h e l d to operate as avalld devise ofall
suchproperty; a n d a n y willhereafterexecuted, whichshallbywords
ofgeneral import devise all of the estate or all of the real estate of
the testator shallbe deemed, taken a n d held to operate as a valld
devise o f a n y real estate acquired,by said testatorafter the executlonthereof, unlessanIntentionshallappeartothecontrary. W h e r e
adevisee or legateediesbeforethe tastator,leavingIssue, such issue
standsintheplaceofthedeceaseddeviseeorlegateeunlessacontrary
Intentionappearfromthe will.
Territoryofthe United Stateswheresuch contractrateofInterest
islawful, thejudgment for theplaintiffshallinclude such contract
Interest to thedate of thejudgmentand interest thereafter atthe
rateof6percentumperannumuntilpald.
S Y N O P S I S OF
Judgments. Everyjudgmentisgoodandenforceablebyanexecu-
tionissuedthereonforaperiodoftwelveyearsfromthedatewhenan
executionmightfirsthavebeenissuedthereonorfromthedateofthe
lastrevivalthereofbyscirefacias. Judgmentsofthemunicipalcourt
arenotliensonrealestateuntilrecordedinthesupremecourtofthe
T H E L A W S
DistrictofColumbia.
OF
FLORIDA
R E L A T I N G TO
Jurisdiction. (See Actions, Appeals, and Municipal Court.)
Legal Holidays. LegalholidaysareJanuary1st. February22d.
May30th,July4th,firstMondayinSeptember(LaborDay),December25th,orthefollowingdaywhenanyofthesedatesfallonSunday,andsuch dayasmay be appointed by the President of the
UnitedStatesforfastingandprayer. EverySaturdayisalegalhalf
holidayandnotes
falling dueonthatdayare not protested until
Monday. Processisnotissuedorservedby
themarshal after12
BANKING A N D COMMERCIAL USAGES
RevisedbyM. E. MOREY,AttorneyAtLaPensacola.
o'clock on Saturday.
Limitations. Fifteenyearsforrecoveryoflands,tenements or
hereditaments; executor'soradministrator'sbond, fiveyears; instrumentsunderseal, twelveyears; simplecontractsandrecoveryofpersonalproperty anddamages forits unlawful detention, three years;
statutory penalty or forfeiture,libel, slander, assault,battery, may-
hem,wounding, malicious prosecution,falsearrestorimprisonment,
oneyear; all other actions three years. Usual exceptionsin favor
ofpersonsunderdisability. Acknowledgment to reviveaction on
debtmustbeinwriting. Partpaymentwilltakedebtoutofstatute.
MarriedWomen.
(See H u s b a n d a n d W i f e . )
Mortgages. Mortgagesarealmostentirelysupplantedbydeeds
oftrust,requiringnocourtproceedingstoforeclose. Joiningthewife
Isnecessary tobardower.
Municipal Court. Thiscourtwhichtakestheplaceofwhatwas
formerlyknown as the justice of the peace court has jurisdiction
tothe amount of $500. This jurisdiction is exclusive when the
amount claimed fordebt or damages or value of personal property
doesnotexceed $100, andconcurrentwiththe supremecourtofthe
DistrictofColumbiawhenitexceeds $100andnot inexcessof $500
withrightofcertiorart incasesofconcurrentjurisdiction.
Accounts.
O p e n accounts arebarredin three years.
Acknowledgments mustineveryInstance beunderofficial seal.
IfmadeintheStateofFlorida,maybemadebeforeanyjudge, Justice
ofthepeace,clerkordeputyclerkofacourtofrecord,ornotarypublic;
orifmadeoutoftheState, and within the United States, before a
United States CommissionerofDeeds appointed by thegovernorof
thisState,orbeforeajudgeorclerkofanycourtoftheUnitedStates
o r o f a n y state, territoryordistrict.havingaseal, orbeforeanotary
publicorjusticeofthepeaceofsuchstate,territoryordistrict,having
anofficialseal, and thecertificate ofacknowledgmentorproof shall
beunderthesealofthecourtorofficerasthecasemaybe. I f m a d e
outoftheUnitedStates,beforeanycommissionerofdeedsappointed
b y t h e g o v e r n o r o f t h e S t a t e t o resideinsuch country, o r a n y n o t a r y
publicofsuchforeigncountry,orbeforeanyministercharged'affaires,
consul-general, consul, vice-consul, commercial agent, or vice-com-
mercialagentoftheUnitedStatesappointedtoresideinsuchcountry.
Conveyances ofdowerand powers ofattorney for the execution of
deedstorealestatemustbeexecutedinlikemannerasconveyancesof
real estate. Awife'sacknowledgment must be takenseparate and
apartfromherhusband. Officers mustcertifythatthegrantorsare
knowntohim. Thefollowingistheusualformadopted,viz:
>
1386
BANKING A N D COMMERCIAL LAWS-FLORIDA
Ex
everythingpertainingtotheacts ofthebank. Banksarerequired
entry
to makea semi-annualreturn tothe Statecomptrollerofresources
Stateof Florida,
u
p
on
ndliabilities,andadvertiseinJanuaryofeachyearamountofstock
County of.
thet
..and a
property, and contractual indebtedness. Beforeorganizationthe
Beforethesubscriberpersonallyappeared..
with
knowntometobetheindividualsdescribedin wholeofthecapitalstockmustbepaidincash.
S
t
o
c
k
h
o
l
d
e
r
s
a
r
e
hiswife..
andwhoexecutedtheforegoinginstrumentwhoacknowledgedthat
prop
individuallyliabletotheextentoftheirstockattheparvaluethereof.
able
theyexecutedthesamefortheusesand purposesthereinexpressed inadditiontotheamountinvestedinsaidshares. Directorsmustbe
Å
rst
wifeofthesaid.
andthesaid.... beingbymefurtherandprivilyexaminedseparate citizens ofthe United States,and owntensharesofstockof$100
erty
pershare. Thecomptroller,withtheaidofthecourts,windsupthe
and apartfromhersaidhusband, acknowledged and declared that affairsofinsolventbanks.
Ex
sheexecutedthesamefreelyandvoluntarily,andwithoutfear,apprestead
BillsofLading. Billsofladingareevidenceagainstthecarrierof
hension,compulsion,orconstraintof,orfrom,hersaidhusband,and
forthepurposeofrenouncingandrelinquishingallherright,ofwhat- thedirectionbywhichfreightsaretobereceived,carried,anddelivered
$1.00
-collectororholderofcommercialpaper,attachedtobillofladingnot
soeverkind,inandtosaldproperty.
awarrantorofthequantityorqualityofthegoodsrepresentedthereby
and
Givenundermyhandandsealomcialthis........dayof………..
exceptbyexpress contractinwriting, andtheofficersagents,and
forta
19.....
employesofthecarrierarerequiredtocomplywiththetermsofthe
orth
NotaryPublic.
orot
(See notaries.) billofladingunderpenaltyofcriminalprosecution.
My commission expires....
Isthe
Chattel
Mortgagesand
Deeds
of
T
r
u
s
t
.
A
l
l
c
o
n
v
e
y
a
n
c
e
s
l
a
Actions. Sultsshallbebegunonlyinthecounty(or,iflessthan
ment
to secure the payment of money aremortgages. Chattel
$100injustice district) where the defendant resides, or where the tended
mortgagesmustberecorded orthepropertydeliveredtomortgage
Fo
causeofactionaccrued, orwheretheproperty inlitigationis. If tomakethemeffectualagainstbonafidecreditorsandpurchasersfor
broughtinanycountywheredefendantdoesnotreside,theplaintiff, value. Injunctionwillbegrantedagainsttheremovalofmortgaged
orsomepersoninhisbehalf,shallfilewiththeprecipeorbillinchan- personaltyfromthe State;canonlybeforeclosedbybillinchancery
nearl
cery,anaffidavitthatthesuitisbroughtingoodfaithandwithno unlessunder$100,anduponpersonalproperty,whenacommonla
intentionto annoy the defendant. This latter provision does not actionmaybebroughtinjusticeofthepeacecourt,andmortgagefiled
S
uth
applytosuitsagainstnon-residents. Wheretherearejointdefendants withprecipe. Theformandeffectoftrustdeedshavenotbeendis
suitmaybebroughtinanycourt(orJusticedistrict)whereanyoneof turbedbystatute.
Itisacriminaloffencetomortgagepersonalprop
F
thedefendantsresides,orwherethecauseofactionaccruedorwhere ertymorethanoncewithouttheconsentoffirstlienor.
the property inlitigationis. Corporations (domestic) can onlybe
CollateralSecurity. Itisamisdemeanortosell.pledge,loan,of
effec
suedinacountywheretheykeepanoffice. Foreigncorporationsmay
nanywaydisposeofcollateralsecuritywithouttheconsentofpledgor.
Sta
besuedinanycountywheretheyhaveanagent,orwherethecause iAwrittenagreementmaybemadeatthetimeofmakingthepledge
ofactionaccruedorwherethepropertyinlitigationis.
forthesaleofthecollateralinsuchmanneranduponsuchterms&
F
AdministrationofEstates. Uponthedeathofapersonintestate
orhavingmadeawillbutappointingnoexecutor,thecountyjudge thepartiesmaydesire.
Statute of Frauds. In ordertobindanadminappointsanadministrator,preferringfirstthenextofkin;butifnone
Contracts.
suchapply,then, uponnoticegivenbypublication, any creditoror istratorpersonally,oranyoneforthedebtordefaultofanother,or
G
suitableperson. Nominorcanbeappointed. Ifnooneappliesfor oneuponanagreementmadeinconsiderationofmarriage;orupo
G
lettersofadministration withinsixty daysafterdeath,theprobate contractsforthesalelands,tenements,orhereditamentsoranyuncer
courtmayorderthesherifftoact. Theadministratorappointedby taininteresttherein,orforanyleasethereofforaperiodlongertha
thecourtmustgivebondinamounttobefixedbytheprobatejudge, oneyear: oruponanagreementnottobeperformedwithinoneyear,
H
respectbeinghadtothevalueoftheestate. Thesheriffwhenacting theremustbeanagreement,note,ormemorandumthereofinwriting
asadministratorisliableuponhisofficialbond. Claimsagainstan signedbythepartytobecharged, orsomeonelawfullyauthorized
saleofpersonalpropertymustbeinwriting
estatearebarredaftertwoyearsfromdateofnoticegivenbyadminis- byhim. Contractsforthe
bedeliveredorearnestmoneypaid. News
tratortopresentsame. Debtsduemorethanfiveyearspriortodeath orthepropertymust
arebarred,savingtomarriedwomen,minorsandpersonsnoncompos papers andperiodicals must eitherbesubscribedforororderedin
mentis,imprisoned,oroutofState,threeyears,afterremovalofdisaAllconveyancesofreal
bilities. The compensation ofthe administrator isdetermined by wriConveyances
ting.
. (SeeAcknowledgments
.)
therein foratermofyearsofmorethantwo
the court and, inadditionto compensationforhis ordinary duties, estate,oranyinterest
nottoexceed6percentofmoneyreceivedforsalesmadeofpersonal years,mustbebydeedinwriting,signed,sealedanddeliveredinthe
Administrators must make annual settlements
presence ofatleasttwosubscribing witnesses;andinordertobe
and real property.
t day
s r
i f e h t eorr
e b e h T
effectual against subsequent grantees orincumbrances,mustbe
ofJuneeachyear
forfoeitfcommissions.
recorded. Thewife'sseparate estatecanbeconveyedonlybythe
Circuit Court isempowered to authorize administrator or executor
jointdeedofherselfandhusband,andconfirmedbyheracknowledg
tocarryondeceased'stradeorbusinessforareasonabletime.
ment,takenseparate andapartfromherhusband. Wordsoflimita
Affidavitsmaybemadebeforeanyjudge, clerkofthecircuitand
tionunnecessary. Husband mayconveydirecttowife.
supremecourts, justice ofthepeace, ornotarypublic.
Corporations maybeorganizedforanylawfulbusinessunder3
Aliens. Nodistinctionbetweenandcitizens,exceptthattheyare generallaw. Stockholder liableonlyforamountunpaiduponsub 12
scription. Charterfeeof$2forevery$1,000ofcapitalstock,payable
notallowedtovote.
Appeals. Appellateproceedingsforthecommonlawsideareby totheState,butnofeeislessthan$5andnoneover$250.
writoferror,whichmustbesuedoutwithinsixmonthsfromthedate
Costs. Non-residentplaintiffrequiredtogive$100bondtosecure
Thedefendantmayhavesultdismissedifbondisnotgiven.
ofthejudgment. Therecordmustbefiled inappellatecourtonor
beforethereturndayofthewrit, underpenaltyofdismissal. Ques- cosCourts.
Circuit courtsholdtwotermsayearineachcounty,
ts.
tionsoffactcanonlybetakenupbybillofexceptions,whichmustbe exceptin
first and eleventh circuitswheretheyholdthreeterms
presentedwithinthetermofthecourtunlessbyspecialorderthetime
isextended. Appealsin chancerymay betakenwithinsixmonths ayear,andhaveoriginaljurisdictioninallequitycases,alsoinall
Countycourtshave
andthelawgoverningwritsoferrorasfarasitrelatestofilingof casesatlawnotcognizablebyinferiorcourts.o
u
n
t
y
j
u
d
g
e
s
,
a
t
a
lt
i
m
e
s
o
p
e
n
f
o
r
p
r
o
b
a
t
e
b
u
s
i
n
e
s,
h
a
v
e
f
u
lp
r
o
b
a
t
e
p
o
w
e
r
s
,
h
a
v
e
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o
transcriptsofrecordsandproceedingsthereonand filing assignment jurisdiction ofamountsnotexceeding$500. C
oferrors.thedutyofappellatecourtingivingjudgment, Incausing civiljurisdictiontoextentof$100. Justice'sjurisdiction,$100.
execution ofits decreesand quashing writs oferror, areapplicable
Creditors'Billsmaybebroughtbeforeclaimisreducedtojudg
toappealsin chancery. Noticeofappealinchancerymustbefiled ment,butsultatlawmustbefirstbroughtandjudgmentmustbe
withclerkandrecordedinminutes. Thisgivesappellatecourtjurisdiction.
obtainedbeforedecreecanberendered.
Depositionsmaybetakenuponcommissionwhenwitnessresides
Arbitration. Partlestothecontroversymaymakearuleofcourt
DaysofGraceareabolished.
ofanyarbitrationtowhichtheymaydesiretosubmitbyfilingastateoutofthecounty,orisboundforsea,orisabouttogooutofthe
mentofagreementofthematterstheydesiretoarbitrateinwriting Statetoremainuntilafterthetrialofthecause,orisveryagedor
withthecourthavingjurisdiction,whichstatementshallincludethe infirm;orwhenoathismadethatamaterialpartofthecaseordefense
namesofthearbitratorsandtheumpire. Anawarduponsucharbl- dependsuponthetestimonyofsuchwitness. Thetimeforthesuing
trationcanonlybesetasideforfraud, corruption, grossnegligence, outofthecommission,thenamesofthewitnesses,andthenameof
ormisbehaviorofoneormoreofthearbitratorsorumpire,orevident onecommissionermustbegiventooppositesideareasonabletime
mistakeacknowledged bythearbitratorsorumpire, who madeand beforecommissionisissued. Printedinstructionsfortheguidanceof
commissionersusuallyaccompanycommission. Feesofnotlessthan
signed the award.
Arrest. Noarrestfornon-paymentofmoneyunlessitbefornon- $5.00awitnessaretobetaxedascostsbytheclerkandpaidbylosing
paymentofafinelawfullyimposed.
DescentandDistributionofProperty.
P.
rop2.
ertyIdfetshce
er
ne
ds
Assignments and Insolvency. Assignmentsby insolventsare
children and husband inequalshares
b:
e1
n.o
provided for by law. Preferences are not allowed. All property, To
partthe
y.
3. Iftherebenochildren,
exceptthatwhichis exempt. must be surrendered to the assignee. childrenthenalltothehusbandorwife.
husbandorwife,thentothefatherandmotherinequalshares,orto
Assigneegivesbondand windsupestate.
Ifnofatherormotherthentothebrothersandsisters
Attachmentprocessmayissueuponaffidavitmade,settingforth andtheirdescendants. 5. Iftherebenobrotherorsisternortheir
thatamountisactuallydue;thatplaintiffhasreasontobelievedefenddescendants, thentheestateshallbedividedintomoletles,oneof
antwillfraudulentlypartwithhispropertybeforejudgmentcanbe swhichshallgotothepaternalandonetothematernalbranchesin
urvivor. 4.
recoveredorisactuallyremovinghisproperty,orisabouttoremove the following course: 1. To grandfather. 2. Tograndmother.
Itoutofthe State, orresidesbeyondthelimitsthereof.orisactually
3. Togreat-grandfathers. 4. Togreat-grandremovingorabouttoremoveoutofthe State,orabscondsorconceals mother, brothersandsistersofgreat-grandfathers,etc..passingfirst
himself,orissecretingpropertyorfraudulentlydisposingofsame,or tonearestlinealmaleandthentolinealfemaleancestorsandtheir
The estate ofan infantdecedant.IfwithoutIssue
actuallyremoving, orisabouttoremove,beyondthejudicialcircuit unclesandaunts.
inwhichhe she,ortheyreside. Attachmentmayalsoissueforadebt leaving nohusbandorwife,shalldescend: 1. Tofatherofinfant.
notdue,uponaffidavitstatingthatthedebtisactuallyexisting,and
3.
Bte
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thatthe defendant is actually removing his property beyond the descendants
viving,thenit descends accordingtothegeneralrulesofdescent
limits ofthe State, orisfraudulently disposing ofhis propertyfor 2.
Mother ofinfant. Half-bloodsinheritonlyone-half. Adopted
thepurposeofavoidingthepaymentofhisjustdebtsordemands,or children
are treated as children of blood. Bastardsinheritand
isfradulentlysecretinghispropertyforsuch purposes. Proofmust
transmitthrough mother'sside,asiflegitimate. Allenshavesame
also,beexhibitedtotheofficerbyaffidavitotherthanthatoftheplainTherearenoentailedestatesnorrightofsurvivortiff.oftheexistence ofthespecialground. Themaking oftheaff- prescribedbystatute.
davitcausesalldebtstomatureforthepurposesofthesuit. Plaintiff
mustgivebond,withtwosecurities.inatleastdoublethedebtorsum
Deceased maynotbywillcutoffhiswidow'srightto
demanded. Serviceofnoticeofthesuitmaybeeitherpersonalor rightascitizens.
Ifdissatisfied withterms ofwill,shemaydissentwithin
ni
ep
y.
earafterprobateofwillandshewillthenbeentitledtoone-third
bypublicationwhereattachmentisleviedandpropertyisnotretaken o
h
bydefendant. Noarrestallowedin civilactions. Writsofgarnish- s
oftherealestateforlife,and,iftherearetwoormorechildren,to
Dower.
mentmaybeissuedatcommencement ofsuit oratanytimeafter- one-thirdofthepersonaltyinfeesimple;iftherearenochildren,or
ward,providedtheplaintiff,hisagentorattorney,willmakeaffidavit dower.
Shemay
thathe doesnotbelieve the defendantwillhave in his possession, onlyone,shewillbeentitledtoone-halfthepersonalty.
withinoneyearelecttotakeachild'spartinlieuofdower. Ifthe
withinthe Stateandcounty,visiblepropertyonwhichalevycould husband dieintestate, withoutchildren, thewifetakesthewhole
bemade,sufficienttosatisfysuchexecutionashebelievesheshallbe
abletoobtain, andthatafflantexpectstoobtain a judgmentfora
Witnessesnotdisqualifiedbyreasonofinterest.in
specifiedamount.
civilcases,husbandandwifemaytestifyfororagainsteachother.
Banks. No banking companyshallbeorganized with a capital estate,ordower,atherelection.
Insuitsbyoragainstlunaticsorpersonalrepresentatives,heirs-atlaw,
nextofkin,assignee,legatee,devisee,orsurvivorofaperson
lessthan$50,000, exceptthatbankswithacapitalofnotlessthan deceased,
Evidence.
no evidence ofatransactionorcommunicationbetween
$15,000may, withapprovalofcomptroller,beorganizedinanycity suchlunaticordeceasedpersonandtheopposingpartyorthoseunder
ortowncontainingnotmorethan3,000inhabitants,andthatbanks
withacapitalstockof$25,000may.withtheapprovalofthecomptrol- whomheclaims,canbegivenbytheopposingparty,unlesssucheviler,beorganizedinanycityortownofnotmorethan6,000inhabitants. denceisfirstofferedinbehalfofsuchlunaticrepresentatives,legatees,
Savings banks may have not less than $20.000 capital. Banks
areformedasothercorporationsare,andcannotbeginbusinessuntil
authorized bythe comptroller. The comptroller ofthe State may
inspectandsupervisethebusinessofthebank,exceptnationalbanks,
andinspectandexamineitsbooks,papers, documents, minutes,and devisees,etc.
B A N K I N G
A N D
C O M M E R C I A L
Executions. Executions can be issued immediately upon the
entryofthejudgmentandwithinthreeyearsthereafter,andarealien
uponrealestatefromdateofentry,anduponpersonalpropertyfrom
thetimethesheriffreceivesthem. Theycanberenewed anytime
withintwentyyearsfromentryofjudgment. Bothrealandpersonal
propertyaresubjecttosaleunderexecution. Executionsarereturnablewhensatisfied,sheriffreportingprogressateachterm. Saleday
firstMondayineachmonth. Nostaylaw. No redemptionofpropertysold under execution.
ExemptionstoeveryheadofafamilyresidingintheStatehomesteadof160acresofland,andImprovements, ifinthecountry;onehalfacreofground, ifinanincorporated city ortown, togetherwith
$1,000worthofpersonalproperty. Theexemptionsinacityortown
shallnotextendtomoreImprovementsorbuildingsthantheresidence
andbusiness houseoftheowner. No propertyisexemptfromsale
fortaxesorassessments,orforobligationscontractedforitspurchase,
ortheerectionor repairofimprovements thereon, orforhouse, field,
or other labor performedthereon. T h e w a g e s ofeverylaborer w h o
istheheadofafamilyresidingintheState,areexemptfromgarnishment.
ForeignCorporations. Commercialcorporationscandobusiness
Inthis State without restriction uponcomplying with requirements
asto foreign corporations, provided its nameisnot thesameor so
nearlysimilar to any domestic corporation as to cause confusion.
I f n o officer in State upon w h o m service ofprocess canbe made,
such servicemaybe m a d e u p o n anyagent transacting business for
i t i n t h e State.
Foreign Judgments. Judgments obtainedintheseveral courts
oftheState, mayberecordedinanycountyandhavesameforceand
effectasiforiginallyobtained therein. Judgmentsobtainedinother
Statesorcountries, merelyevidence,andhaveto besuedupontobe
madeeffectiveasjudgments.
Fraud. (See LimitationsofActions.) Obtainingmoneyorpropertyunderfalsepretenseorbyfalselypersonatinganother,arepunishable criminally.
Garnishment.
(See Attachment.)
Guaranty Companies. Guaranty Companies are permitted to
becomesuretyuponbondsforallpurposesaftercomplyingwithcertain
statutory requirements.
Holidays.
Whenever reference is made, incontracts to be per-
formedinFlorida, tolegalholidays, suchdayshallbeunderstoodto
b e t h e d a y s mentionedundertitleNotesandBills ofExchange, a n d
Good Friday.
H u s b a n d a n d Wife. Thehusbandhasfullcontrolofwife'spropertyand is not chargeable by the wife with the rentsand profits.
Must bejoined with wifeinsalesofherproperty. Homesteadcan
onlybealienated by theirjoint deed. Husbandnotliableforwife's
antenuptialdebts. Has no interest in her separate earnings. Has
actionfornegligencecausingherdeath; wife's propertynotgenerally
liable forhusband's debts. Wife m a y sue with respect to separate
estate without husband joining. Infant wife m a y joinhusband in
saleofherrealestate.
L A W S -
F L O R I D A
1387
thirdofallpersonalty;or mayatheroptiontakeasanheirequally
withthechildrenofthehusband, andiftherearenochildrenshewill
Inheritall the property, real andpersonal.
Minors.
B o t h sexes attaintheirlegal majority at the age o f 2 1
years. Minors who deposit insavings banks may control, transfer
orwithdrawthe money sodeposited. Allother contractsmadeby
t h e m are voidable, except for necessaries.
Mortgagesofrealestatemustbeexecutedandproved oracknowl-
edgedinthesamemannerasdeeds,and,tobeeffectualagainstcredit o r s o r b o n a fidepurchasers, must be recorded. A r e foreclosed by
billinequityinthecircuitcourt. Chattelmortgagesmustberecorded
unlesspropertyisdeliveredtomortgageeandremainsinhispossession;
becomessubjecttodebts ofmortgageeifleftinhispossessionmore
t h a n t w o years without the mortgagebeing recorded.
Notaries. Both m e n a n d women overtwenty-one yearsmaybe
appointednotariespublic. Theymustrenewcommissionseveryfour
years. M a y administer oaths, take acknowledgments and perform
marriageceremony. $500bondis requiredtobegiven. Certificate
must s h o w d a t e ofexpiration of commission.
Notes andBillsofExchange. Formandinterpretationdefined
bystatute. No requirementthatitshallbemadepayableatabank
oranyfixedplace. 5percentdamagesareallowedonforeigncommercialpaperprotestedinthisState. Billsofexchange,bankchecks,
andpromissorynoteswhicharepresentableforpaymentoracceptance
onSunday. NewYear'sDay,ChristmasDay,3dofJune,4thofJuly.
22dofFebruary, 19thofJanuary, 26thofApril,firstMondayinSeptember,anygeneralelectionday,andSaturday(exceptdemandpaper.
whichmaybe presentedbefore12o'clock Saturdayunlessthewhole
dayisaholiday),oranydayappointedbythePresidentoftheUnited
StatesorbytheGovernoroftheStateasadayofthanksgivingorfastingorprayerorotherreligiousobservances,ShroveTuesdayorMardi
Grasinevery cityinwhich thereisa carnivalassociationorganized
for the purpose of celebratingit, shall be deemed presentable for
paymentoracceptanceonthesecularorbusinessdaynextsucceeding
such holiday.
Partnership, Limited, and Special. None.
Powers ofAttorney. Anycontractorconveyancemaybemade
bypowerofattorney.
Aconveyanceofamarriedwoman'srealestate
bypowerofattorneyinordertobevalldthepowerofattorneymust
beacknowledgedbyherseparateandapartfromherhusband,andthe
acknowledgmentmuststatethatsheexecutesitfreelyandvoluntarily.
withoutcompulsion,fear,apprehension, orconstraintoforfromher
husband. The husband must joineither in the deed or powers of
attorney. Powersofattorneyfortheconveyanceofrealestatemust
berecorded.
Probate L a w . (See Administration of Estates.) The county
Judgehasoriginaljurisdictionofallmattersrelatingtotheadministrationofestates ofdecedents.
Protest. (See NotesandBillsof Exchange.)
Records. Recordsofdeedsandmortgagesarekeptintheofficeof
theclerksoftheseveralcircuitcourts,andtheoriginalmustberecorded
inthecountywithin which the propertylies. Willsare required
Injunctions. Injunctions are granted without bond upon affidavit of inability to give bond, and upon proofsatisfactory to the
judgethatsuchaffidavitis true, and thatthestatementsofthebill
are true. Injunctions are granted to stay proceedings at law;to
restrainthesaleofpropertyunderexecutionordecreeobtainedagainst
oneotherthantheowneroftheproperty; torestrainthedestruction
died.
oftimberby cutting,boxing, or otherwise; torestrainalevyupon
not legallyexempt;andtoprevent the removalfromthe Stateof
takenfortaxes, orunderexecution, oratsuitofdefendantwhenthe
exemptproperty;topreventtheclaimingofexemptionsuponproperty
mortgaged personal property.
Insolvency. Statutes suspendedbynationalbankruptcylaw.
Insurance Companies. Foreign and domestic, are placed, by
statute, undercontrol ofInsurancecommissioners, composedofState
treasurer, State comptroller, and attorney-general. They must
annually file a statementwith, andobtainfromthe Statetreasurer,
acertificatebeforebeingauthorizedtodobusiness. Certificatemay
berevoked ifcompany refuses to pay judgments which have been
legally obtained againstit.
Interest. Eightpercentisallowedonjudgmentsandcontracts
whereinterestispayablebutnorateisspecified. Contractformore
than10percent isusurious,andall interest forfelted.
Judgments ofacourt ofrecordarealienfortwentyyearsupon
realestateofdebtorwithinthe countywhererendered, a n d m a y b e
extendedtoother countiesby recording certified transcriptofjudg-
mentinanycountywherealienissought. Judgmentsofjusticeofthe
peacemaybemadeallenuponrealestatebyrecordingintheoffice
ofclerkofcircuitcourt.
Liens. Inordertosecureallenbylispendens,astatementmust
befiledwiththeclerkofthecircuitcourt,andrecordedbyhim ina
bookkeptforthatpurpose,settingforththenamesoftheparties,and
thenatureofthereliefsought,andthedescriptionoftheproperty
uponwhichitisdesiredtoobtainallen. Statutoryliensaregivento
laborersandmaterial-men. Property forwhich materialsare furnisheduponwhich laborhasbeendone, isliable to personsnot in
privitywithownertotheextentoftheunpaidbalanceofdebtdue
tocontractor. Owner personally liable inlikeamount. Statutory
Mensuponrealestate,inordertobeavailableasagainstsubsequent
purchasersorllenors,mustberecordedwithinthreemonths,andsuit
must be brought within twelve months after the furnishing of the
material, or the performance of the labor. Liens upon personal
propertyexistonlywhilepossessionisretainedbyllenor.
Limitations of Actions, Civil actionscanonlybecommenced
withinthe following periods afterthe cause ofaction shall have
accrued, to wit: Actions on Florida judgments, actions on contractsor obligations in writingandundersealtwenty (20) years;
actionsforthe recovery ofrealproperty, actions onjudgmentsof
courtsofthe United Statesoranyotherstateorterritoryseven (7)
years. Oncontracts inwriting not under seal,five (5) years. On
allactionsnot herein and specifically mentioned, four (4) years.
Trespass to realty, action upon liability created by statute other
thanapenaltyofforfeiture,taking,detainingorinjurytochattels,
forreliefonthegroundoffraud,uponcontractnotfoundedupon
instrumentofwriting, including anactionopenaccount for goods,
waresandmerchandise,three (3) years. Actionsforlibel,slander,
assault,battery,falseimprisonment,oranactionbyanotherthanthe
Stateuponastatuteforapenaltyorforfeituretwo(2)years. Actions
forwrongfuldeathofachild,actionsagainstrailroadcompaniesfor
killingcattle, andanyactionbythe Stateforastatutorypenaltyor
forfeiture,one(1)
year.
Married Womenretaintheirproperty, realorpersonal, owned
atmarriageoracquiredthereafterbygift,devise,descent,orpurchase,
anditisnotliableforhusband'sdebtsexceptbyherwrittenconsent,
executedaccordingtolawregulatingconveyancesofmarriedwomen.
Husbandmustjoininallsales, transfers, andconveyances of the
wife'sproperty,exceptwhenhehasbeenadjudgedinsaneformore
thanayear. Wifemaysueconcerningherrealestatewithoutjoining
herhusbandwithherinthesult. Widowtakesasdoweralifeestate
Inone-thirdpartoftherealestateofwhichherhusbandwasseized
andpossessedatanytimeduringhercoverture,andanabsoluteone-
toberecordedwiththeseveralcountyjudgesandmaybe probated
Inanycountyinwhich thedeceasedleftproperty,ifhediesoutofthe
State. Ifdeathtakesplacewithinthe State, theninthecountyin
whichhehashadresidence,house,orotherplaceofabodeatthetime
ofhisdeath,andifhehadnonesuch, theninthecountywhereinhe
Redemption. None, excepting taxsales.
Replevinllesforgoodsorchattelswrongfullytaken, exceptwhen
property was originally replevied from defendant and has been
delivered to plaintiff, orwhenplaintiff isnotentitledto possession.
Affidavitmustbe filed, describing property sought tobe recovered,
andstatingthatitwasnottakenforanytax, fineleviedby virtueof
anylawoftheState,norseizedunderexecutionorattachmentagainst
thegoodsand chattelsoftheplaintiff; liable toexecutionandbond
indoublethevalueofthepropertywithtwosuretiesgivenbeforethe
writisissued. Defendantmayreleasethepropertywithinthreedays
byforthcomingbond.
Seal. Ascrawl orscroll,printedorwritten,affixedasasealtoany
written instrument, is effectual.
Service of Process. Out ofcircuitcourt, madebythesheriffor
hisdeputy. Outofcountyjudge'sorjusticeofpeacecourts, m a y b e
madebysheriff orconstable. Serviceincivilactions m a y b e m a d e
eltheruponthepersonofthedefendant, orbyleavingacopyathis
residence with some person over fifteen years ofage. (See Foreign
Corporations.)
Suits. Actionsatlawarecommencedbyfilingaprecipewiththe
clerk. Personalserviceisrequiredexceptinsuitsbyattachmentand
garnishment. Writs are returnable onthe next rule day, provided
tendaysintervene;ifnot,thenontheruledayinthenextsucceeding
month. Ifnoappearanceofdefendant,defaultisenteredforthwith.
Defaultmaybeenteredforwantofpleaorotherpleadingonruleday.
nextafterappearanceday.
Taxes. TaxesarenotdueandpayableuntilthefirstdayofNovem-
ber,andifnotpaidbyfirstdayofthefollowingAprilpropertymaybe
sold.
O w n e r has two years within which to redeem.
Taxes are a
lienfromthefirstdayoftheyearoftheassessment,andhavetheforce
andeffectofajudgmentuponwhichexecution mayissue.
T e s t i m o n y . (See Depositions.)
TransferofStock. Stockistransferableinthemannerprescribed
intheby-laws. No stockcanbetransferreduntil,afterallprevious
assessments thereon have been fully paid. The transferee succeeds
toalltherightsandliabilitiesofthepriorholder.
WarehouseReceipts. Thewarehousemanmaygiveareceiptfor
goodsdepositedwith him, describingsuchgoods, andsuchreceiptis
negotiable, and transfers title to theholder.
Wills. Anypersonovertwenty-oneyearsoldandofsoundmind
maymakeawill. Thisincludesmarriedwomen. Willsofrealestate
mustbesignedbytestatororsomepersoninhispresenceandbyhis
express direction,and musthavetwo witnesses who mustsubscribe
intestator'spresence. Wills ofpersonalpropertymustbeinwriting
andsignedbythetestatororsomeoneinhispresence,andbyhis
expressdirection. Nuncupativewillsaregoodastopersonalproperty.
Revocation m a y be by subsequent will or codicil attested like the
original, or by burning, cancelling, tearing or obliterating the same
by the testator or by his direction and consent, or by the act and
operationoflaw. Willsmust beprobatedbefore admittance inevidence. Foreign wills, whendulyprobated according to laws ofthe
State, where made and duly recorded in this State, are as effective
aswillsexecutedinthisState. Foreignwillsareconstruedaccording
tolawofStatewheretheyareexecuted.
BANKING A N D COMMERCIAL LAWS-GEORGIA
1388
SYNOPSIS OF
T H E
L A W S
OF
G E O R G I A
RELATINGTO
BANKING AND COMMERCIALUSAGES
Revisedby BROWN & RANDOLPH, PARKER & SCOTT, Attorneys
atLaw, Atlanta. (SeeCard inAttorneys'List.)
Acknowledgments. (See Deeds.)
Actions. All distinction between suits atlawand in equity is
abolished. Equitablereliefcanbehadinsuperiorcourtsoflaw.
Administration ofEstates. Lettersofadministrationissuein
thelineofpreference,firsttothehusbandorwife,secondtothenext
ofkin, relations byconsanguinityarepreferredto thosebyaffinity.
Ifthereareseveralofthenextofkininthesamedegree, preference
isgivento thatoneselected inwritingbythosemostinterested in
the estate. If no preference is expressed the ordinary exercises
hisdiscretion. Ifnoapplicationismadebynext ofkin a creditor
maybeappointed, and ifnoapplication ismadetheordinarywill
vesttheadministrationinacountyadministrator,anofficerauthorized
bystatuteforthatpurpose. Administratorsmustgivebondindouble
thevalueoftheestate. Outoftheestateofeachdeceasedperson,
thefirst charge, afterfuneral expenses, isa year's supportforthe
family, to belaid offby commissioners according tothe condition
andstandingofthefamily. Foreignadministratorsmayactinthis
Stateongivingbondtotheordinarywheretheyqualify. ThebondsmenmustberesidentsofthisState. AcitizenofanyotherStatemay
actasexecutorofthewillofadeceasedcitizenofthisStatewhenhe
hasthesameinterest andwillgivethesamebondasinthecaseof
foreignadministrators. Administrators of other States may suein
thisStatebyfilingintheofficeoftheclerkofthecourt,towhichsuit
isbrought,aproperlyauthenticated copyoftheirlettersofadministration.
Affidavits. Pleasand defensesinthe courts ofthis Statewhich
arerequired tobe underoath, maybe made before any official of
the State orcounty wherethe oathis made, who isauthorized by
thelawsofsuch State orcountytoadministeroaths. Prima Facie
theofficial attestation ofthe officeris evidencethathe wasauthorizedto act. Anynon-resident seeking equitable relief, when called
onto verify proceedings, shouldbesworn before a commissionerof
this State, orajudge ofa court ofrecord wherethe oathismade,
withtheattestation ofthe clerkofsuch courtthatthesignatureof
thejudgeisgenuine, and thatthecourtoverwhichhe presidesisa
courtofrecord.
Aliens. Thesubjects ofgovernments at peacewiththe United
Statesand this Stateare entitled to the rights ofcitizens ofother
States, residenthere, insofarastheyaccordtothemtheprivilege
ofpurchasing, holding,andconveyingrealestate.
Appeals. (See Courts.)
Arbitration. UnderthelawofGeorgiadisputesandcontroversies
relatingtorights, orproperty, maybesubmittedtoarbitration.
Arrest. The constitution ofGeorgiadeclaresthatthere shallbe
no imprisonment for debt. But in an action to recover personal
propertythedefendantwillbearrestedbytheofficertowhomprocess
isdirected, and willbe committed toJail unlesshe shallgive bond
andgoodsecurity, ordeliveruptheproperty, orshowtothesatisfactionofthecourtthatitiswithouthispowertoproduceit.
Assignments. Assignments forthebenefit ofcreditors are permitted.
Attachments. A summary process of attachment will lie in
thefollowing cases: 1. Wherethe debtorresides out ofthe State.
2. Whereheisactuallyremoving, orabouttoremove, withoutthe
limits ofthe county. 3. Whenheabsconds. 4. Whenhe resists
alegalarrest. 5. Whereheisattempting toremove hisproperty
beyond the limits ofthis State. 6. Wherehe has disposed of, or
threatenstoconceal,hisproperty,liableforthepaymentofhisdebts.
orshall make a fraudulent lien thereonto avoid paying his debts.
Attachmentwilllieto recoverthepurchasemoney ofan articlesold
whenthe debtoris still inthe possession ofthe property. Attachmentsmayissueuponaffidavitbytheplaintiff,hisagentorattorney,
whomustswearthatone ofthestateoffactsexistswhichauthorize
anattachment, andalso astotheamountofthe claim. Bond and
security,indoubletheamountswornto,mustaccompanytheaffidavit
andtheofficersrequirepersonalsecurity. Non-residentcorporations
are liable to attachments, and one non-resident may attach the
property of another non-resident in this State, except for wages
earnedwithoutthe State.
Banks. Anynumber of persons, not lessthanthree,mayform
acorporationforthepurposeofcarryingonthebusinessofbanking.
Such corporations, when organized, has power to have continual
successionforthirtyyears,withrightofrenewal;tosueandbesued:
tohaveanduseacommonseal;toappointofficersandagents;tomake
by-laws; to hold, purchase, dispose of, and convey such real and
personal propertyas may be necessaryforits uses and business; to
discountbills, notes, orotherevidencesofdebt;to receiveand pay
outdeposits,withorwithoutinterest;to receivespecialdeposits;to
dealin foreign exchange; tolend money uponpersonalsecurity,or
pledges of bonds, stocks, negotiable security; to take and receive
securities by mortgage or otherwise on property
real or personal.
Thebusinessofthecorporationshallbeunderthemanagementand
controlofaboardofdirectors,toconsistofnotlessthanthreeormore
thanfifteenofthemembersofthecorporation,whomustbeowners
andholdersofoneormoreshares. Nobankshallbecharteredwithoutacapitalsubscriptioningoodfaithofatleast$25,000, ofwhich
notlessthan 20percent, andinnocaseless than $15.000 mustbe
paidinbeforefilingthedeclaration withthesecretaryofState. The
corporation shall beresponsibleto its creditorsto the extent ofits
capitalanditsassets,andeachstockholdershallbeindividuallyliable
foralldebtsofthecorporationtotheextentofhisunpaidsharesof
stock,andshallbefurtherandadditionallyliable,equally,andratably
(andnotoneforanotherassureties)todepositorsofsaidcorporation,
forallmoneysdepositedthereininanamountequaltothefacevalue
oftheirrespectiveshares. Allcorporationsdoingabankingbusiness
in this state shall maketo the State bank examiner, under oath,
statementsshowingtheresourcesofthebankorcorporation, atthe
close ofbusiness onany day specified byth bank examiner. No
bankshallloantoitsofficersanymoneywithoutgood collateral, or
otheramplesecurity,andwhensuchloanexceeds. 10percentof the
capital stock itshall not be made until approved inwriting by a
.
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bankingbusinessshallreduceitscashinhand,includingamount
bybanksandbankers,andthevalueofallstocksandbondsactually
ownedandheld, below25percentofdemanddeposits. Nobak
orcorporationdoingabankingbusinessshallloantoanyonepene
unlesssuchloanisamplysecuredbygoodcollateralsecurity,m
than10percent ofitscapitalstockandsurplus. Banksmaycharg
samerateofinterestasindividuals,andtherulesofbankdiscom
thatistosay,takinginterestinadvancewithinthelawfulrates,ba
beenheldnotusurious. Nodividendshallbedeclaredbyanyban
exceptfromthenetprofits, norshallthecapitalstockbeapplied
thepurchaseofitsownshares.
IftheassetsofabankareInsufficien
topayitsliabilities,areceiverwhenappointed,shallbringsuitagains
thestockholdersinhisownnamefortheirunpaidsubscriptions.Is
theabsenceofa contract,expressedorimplied,tothecontrary,the
banktakingpaperforcollectionisliableforthedefaultsofitsage
andcorrespondentstowhomthepaperhasbeenentrustedforcolte
tion. Ifanyinsolventbankorbanker,withnoticeofsuchinsolvenc
shallreceivemoneyorgeneraldeposits,andfalltopaythedeposit
withinthreedaysafterdemand,suchbankerorofficerinchargeofthe
bank receiving the deposit shall be punishedasprescribedinthe
penalcode. The State hasa speciallienforallpublicmoneyde
posited.
Abonafideassigne
Bills of Lading and Promisory Notes.
ofa billofladingofgoodswillbeprotectedinhistitleagainstthe
seller'srightofstoppageintransit. Itwillnotbenecessarytoprotes
promissorynotesinordertobindtheendorserexceptinthefollowing
Wherethepaperismadepayableonitsfaceatabank
banker's
c
ase: 1.office. 2. Whereitisdiscountedatabankorbanker
3. Whereitisleftatabankorbanker'sofficeforcollection
endorsors, sureties and endorsorsmaybesuedb
Accommodation
o
ffice.
thesamecountyandinthesameactionwiththemaker,drawer
acceptor. Bills of exchange mustbeacceptedinwritingtobin
theacceptor. Acontracttopayattorney'sfeescannotbeenforced
unlessthe debtorwhenserved tendaysbeforesultisfiledwith
writtennoticeofintentiontosuewithamountandtermofcourt
whichsuitwillbebrought,shallfailtopaysuchdebtbeforeretur
day. Awaiverofhomesteadinapromissorynoteisabartosuch
claimasagainstthecollectionofsuchnote. Promissorynotesand
contracts containing reservationoftitletopersonalproperty
beexecutedbeforeanotarypublic,justiceofthepeace,orclerkof
court of record, andmust be recordedasmortgagestoboidsuci
propertyasagainstthirdpartiesorinnocentpurchasers.
Collaterals. Theholderofanoteascollateralsecurityforadet
stands upon thesamefootingasthepurchaser. Propertyleft
pledgeorpawnmaybesoldatpublicsaletothehighestbidder,up
thirty days notice.PowertocreatecorporationsinthisStateisvested
inthegeneral
assemblyandthesuperiorcourt. Saidcourtsma
Corporations.
grantcharterstoallcorporations exceptbanking,insurance,caba
navigation, express, andtelegraph companiesandrailroads.The
general assembly maygrant charters forthecorporationsabove
enumerated. Acharterforaprivatecorporationisobtainedby
petitiontothesuperiorcourt,settingforththeobject,partic
business. corporation name,capital,placeofbusiness,timeforwhic
incorporation isdesired,notexceedingtwentyyears. Thepeti
andordergrantingthesameconstitutethecharter. Insuchcorpers
tionstheliabilitiesofthestockholderismeasuredbytheamountof
unpaidstocksubscriptionduebyhim. Inthecharterofmanybank
noworganizedtheruleofpersonalliabilityvaries. Insomebank
stockholders areliableaspartners: Inothersliabilityexistsunderthegeneralrule,viz:totheextentoftwicetheamountofstockheld
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tions
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do.
State
Cour
B
COLLE
andinsomebanksliabilityexistsonlytotheextentofstockat
Thepaymentof10percent.ofthe
oree
iocn
to.n
afrer
orped
roc
onoa
cmlm
fleo
w
p
c
apital stockis necessarybefore
crir
s
sng
.e
cnos
pnoegrb
au
tos
ii
onre
se
or
anGised
tshn
ear
unpaidsubscriptions
Allcorporations organizedunderthelawsoftheState
ordoingbusinessthereinarerequiredtoregisterwiththeSecretary
inthisstate.
Voluntary
ofStateandpayonedollarorbeliabletoapenaltyof$50.
dissolutionofacorporation
maybegrantedbytheSuperiorCourt
uponpetitionfiledbytheCorporationifauthorizedbytwo-thirdsof
capitalstock. Loststockcertificatesmustbeestablishedbypeti
Adeposit of $10isrequiredincourtsofrecordfro
tiontoSuperiorCourt.
nonCosts.
-residentplaintiffs beforetheBlingofsuitsandadepositof$6in
Theterm,jurisdiction
:swollofsa
eraetatSehtfostruoclarevesehtfo,C
.ctO
e,URTSholdmonthlysessionsand
JUSTICE
alldivorcecases.
have
civiljurisdiction upto $100. Incriminalmatterstheyare
Courts.
only
committing courts. COURTS OF ORDINARY holdtheir
sessionsmonthlyandhavejurisdiction overwills,administrationsof
estates,andoftheconductofadministrators,executorsandguardians.
COUNTYCOURTS havemonthlyandquarterlysessions. Theirjuris
not exceeding $300. CITY
COURTSholdfoursessionsperannum,butthecitycourtofAtlanta
Theto
juric
so
dnitcrtoivoenrosficeistycourtsisunlimited,excepja
dictionis limited
mattersofdivorce,titlestolandandadministrationofequitablerelief
SUPERIOR COURTS have jurisdiction ofallsuitsandcontro
hassixterms.
versies and have exclusive jurisdiction inequitypowers,divorce
cases,andsuitsinvolvingtitlestoland,andonthecriminalsideexclusivejurisdiction ofallcasesinvolvinglifeorimprisonmentinthe
Deedstorealestatein Georgiamustbeinwriting,and
shouldbeexecutedinthepresenceoftwowitnesses,oneofwhomshall
p
enitentiary.
Theyshouldberecorded
beanofficerauthorizedforthatpurpose.
intheofficeoftheclerkofthesuperiorcourtofthecountywherethe
Deeds.
landlles,andalldeeds,mortgages,andotherllens,shouldberecorded
immediatelytobeavailableagainstthirdpartiesandInnocentpur
Toauthorizetherecordofadeedtorealty,Itmustbeat
ee
xo
er
cguitae,dnoouttao
il
si
Sc
t,
actlee.r4k
tested
by oracknowledged befSotr
ae
t,
ei
of
fG
rf
yt
ph
ub
commissionerofdeedsforthe
ofacourtofrecord,oraconsul,orvice-consuloftheUnitedStates
c
hasers
(the certificates ofthese officersundertheirsealsbeingevidenceof
Whenthe deedis executed outofthisStatebeforea
notarypublic,theattestationshouldbeunderhishandandcelal
Incaseofacknowledgmentitisbetter,asamatterofprecautio
alway
sc
tt
o)h.avetwowitnesses,besidestheofficerwhotakestheacknow
fa
the
IfexecutedinthisState.Itmustbeattestedbyajudgeof
acourtofrecordofthis
State,orajusticeofthepeace,ornotary
s
cal.
public,orclerkofthesuperiorcourt,inthecountyinwhichthethree
l
astmentionedofficersrespectivelyholdtheirappointment,orifsubse
edgment.
quentto itsexecutionthedeedisacknowledgedinthepresenceof
eltherofthenamedofficers,thatfact,certifiedonthedeedbysuch
(Actof1893.) Deedstosecure
loans arein more commonusethanmortgagesbecausetheyhave
beenheldtopasstheabsolutetitleandprotectagainstyear'ssupport
o
fficer,shallentitleittoberecorded.
anddower,theequltofredemptionremaininginthemaker,cannot
belevieduponuntilthedebttosecurewhichthedeedhasbeenpaid
UnderthelawofGeorgiathesedeedscannotbeforeclosedas
mortgages,
thenotestheyaregiventosecuremustbesuedtojudg
ment,thelandmustbere-conveyedtothegrantor,andthenlevied
on,butthelienofthejudgmentrelatesbacktothedateofthecon.ffoecamebnacerusolcerof,
Inthe
revewoh,struoclaredeF
inequityasinthecaseofordinarymortgages. Usurywill,however
veyance.
vold such a conveyance.
3
CIS
ofth
the
D
B A N K I N G
A N D
C O M M E R C I A L
Depositions. Testimony istaken in this Statebywritten interrogatories where the witnessis a female, or where the witness does
notresideinthecountywherethesuitispending,orbyreasonofdisabilityisunabletoattendcourt.
IncountieswithinthisState,having
apopulationofover20,000,depositions maybetakenuponfivedays'
noticetotheotherpartyofthetimeandplaceatwhichthewitnessis
tobeexamined.
Thislatterprocess cannotbeusedfortakingtestl-
m o n y outside of the State.
In taking answers to interrogatories,
which m u s t b e authorized b y a c o m m i s s i o n issued for such purpose
bythecourthere, twocommissionersmustact. Commissionersmust
bedisinterested a n d not related to either party, or connected with
thecase;attorneysofthepartiesareincompetent. Noneoftheparties
to the case, nor their agents or attorneys, c a n b e presentwhen the
commission is executed. T h e witness can only write his answer in
thepresenceofthecommissioners. Itisusual,andthebetterpractice,
f o r o n e of t h e c o m m i s s i o n e r s to write t h e a n s w e r s of t h e w i t n e s s as
t h e y are given. Depositions m a y b e written with the typewriter,
andcommissioners m a y adjourn their sittingsfromdaytoday. T h e
followinginstructionsfortaking testimony are Important: Instructions for taking answers to interrogatories: 1. Insert the commissloners' names in the commission: a n y two respectable citizens will
d o . 2. Statethecaseas youfindit. Thencomesthecaption, thus:
Stateof
( H e r e Insert the county a n d State
8 8 . w h e r e the commission is executed.)
C o u n t y of......
c o u r t o f ..
Byvirtueofacommissionfromthe
county,wehavecausedthepersoninsaidcommissionnamedtocome
before us, w h o being duly sworn true answers to m a k e to certain
interrogatories thereto annexed, deposeth a n d answereth asfollows:
(HereInsert answers ofthewitnesses to each interrogatory in order.
3. Letthewitnesssigntheanswers;thensay:
'Answered,swornto,
andsubscribedbeforeus, this
T h e n
d a y o f ..
19..
s i g n y o u r o w n names, adding thewords "Commissioner(L. S.)" after
each name. 4. Seal all up together, using two wafers, each commissioner writing his n a m e with "Commissioner" across a wafer or
seal. 5. Statethecase on the package, andaddressit to the clerk
o f t h e c o u r t issuing the commission. 6. I f i t isto g o b y mall, get
the postmaster to receipt on the package. "Received from one of
thecommissioners (givinghis name) thewithininterrogatories, t o b e
forwarded byduecourseofmall," naminghispost-office. Testimony
thustakenmustbesentbymail, orbysomepersonspeciallyauthori z e d b y the commissionertocarryitto the court.
Descent and Distribution of Property.
The husbandis the
soleheirtohis intestate wife, unless she leavechildren, a n d i n t h a t
event the husband and children shall inherit per capita, but the
descendants ofchildren shall take perstirpe.
I f a m a n d i e without
children, or the descendants of children, leaving awife, the wifeis
L A W S - GEORGIA
1389
Interest. Thelegal rateofinterestinGeorgiais7percent, but
islegalwhencontractedforinwriting. Partieschargingusuryforfelt
theexcessifusuryissetup. A n d u s u r y w i l l r e n d e r a d e e d v o l d , a n d
willinacontractormortgagerenderawaiverofhomestead, orcontract to pay attorneys' fees vold.
J u d g m e n t s c r e a t e llensfromtheirrenditionupontherealorpersonalpropertyofthedefendant;alljudgmentsatthesameterm rank
equally, andproperty sold by adebtor afterjudgmentis obtained
againsthimisonlydischargedfrom thellenofsuchjudgment,ifreal
estate,afterfouryears' possessionbythevendee,andincasesofpersonalproperty,after two years' Judgments,whetherintheUnited
Statescourt, orinanyStatecourt,obtainedinanyothercountythan
thatinwhich thedefendantresideshave no llen on thepropertyof
thedefendantin a n y other county, unless the execution thereon is
recorded in the county of the defendant's residence. Unless such
execution is recordedasso required within thirty days, its lien will
only date f r o m the time of record. (SeeActions.)
Jurisdiction. (SeeTitle Courts.)
License. Nolicenseisrequiredofcommercialtravelers. Itinerant
tradersmust paylicensefees.
Liens. U n d e r t h e l a w s ofGeorgia mechanics, material-men, ma-
chinists, employes ofsteamboats, millwrights, builders ofgoldmine
machines, stone-cutters, and marble workslaborershavespecialliens
onpropertyimproved orworked on. Landlordshave ageneral lien
whichtakeseffectfromthelevyofdistressandaspeciallienoncrops
f o r r e n t o f l a n d o n w h i c h theyare raised. C o m m o n l a w l i e n s o f i n n keepers, factors, pawnees, carriers, attorneys a n d others are recog-
nized.
Vendor'slienonlandhasbeenabolished. Attorneyshavea
speciallienonpapersintheirhandsandonpropertyrecoveredinsuits
brought by t h e m or successfully defended by them.
Limitations. Suitsonopenaccountsarebarredafterfouryears,
onpromissory notes and billsafter six years, oninstruments under
sealafter twentyyears,onsultsforpersonal injuryaftertwo years.
Sevenyears' adversepossessionofrealestateundercoloroftitle,and
twenty years' adverse possession without coloroftitle, will bar the
claimsofallpersonsnotlaboringunderdisability. Infantshaveseven
yearstoassert theirrights,afterbecoming twenty-one years of age.
M a r r i e d W o m e n . Thewifemaycontractandsueandbesuedin
herownnameinrespecttoherseparateestateasafemmesole,except
t h a t s h e c a n n o t b i n d h e r s e p a r a t e estateby suretyshipforherhusband,andanypromisetopayherhusband'sdebtisvoid. Shecannot
selltoherhusbandortrusteeforanypurpose,exceptbyorderofthe
superiorcourt.
A wife o r h e r heirs m a y sue a n d recoverfrom a n y
personmoneyorpropertyusedbyherhusbandtopayhisdebtwhere
inheritequally. Posthumous children stand upon the same footing
the creditor takeswith notice. All the property of the wife at the
timeofmarriage, andallshemayacquirebygift,inheritance, orpurchase, shallvestinandbelong toher, andshall notbellableforthe
debt,default,orcontractofherhusband. Thewifewithherchildren,
ifany, is entitled to twelve months' supportoutoftheestate ofher
deceasedhusband. T h e h u s b a n d i s b o u n d t o supportand maintain
thewife,andhisconsentispresumed toheragencyinthepurchaseof
place of their deceased parents, and take per stirpe, and not per
necessaries. Thewife'sseparatepropertyisnotliablefordebtscontractedbyherasagentofherhusbandintheordinarysupportofher-
Thehalf-blood on the paternal side inherit equally with thewhole
blood. Thefather,Ifliving.Inheritsequallywithbrothersandsisters.
thatpurpose. Amarriedwomancandisposeofherpropertyby will.
his sole heir. If there are children, or those representing deceased
children,thewife shall takeachild's part, unless theshares exceed
fiveinnumber, inwhichcasethewifeshallhaveone-fifth partofthe
estate. Ifthewifeelectstotakeherdower,shehasnofurtherinterest
intheestate. Childrenstandinthefirstdegreetothe intestate, a n d
with other children.
Lineal descendants of children s t a n d i n the
capita. Brothers a n d sisters stand in the second degreeand inherit
if there be no w i d o w or children, or representatives of children.
andstandsinthesamedegree. Iftherebeno father,andthemother
is alive, she shall inherit in the s a m e m a n n e r as the father would.
Real estatedescends direct to the heirs, and personal estate to the
administrator. But real estate is subject to administration for the
purposeofpaying debts, and ifnecessary, fordistribution.
Dower.
InthisStatethewifeisentitledtoanestateforlifeinone-
thirdofalllandsofwhich thehusbanddiesseizedorpossessedatthe
timeofhisdeath, or to which the husbandobtained titlein right of
hiswife. ThereisnonecessityforrenunciationofdowerinthisState,
andamarriedwoman, onthatquestion,neednotjoinwithherhusbandinconveyingland,exceptincaseswhere,before 1866,heobtained
realestatebelongingtohiswife, byvirtueofthemaritalrelation.
Executions. Mustfollowthejudgmentordecreefromwhichthey
issue. Theyaregood forsevenyearsandmayberenewedforalike
periodbyentrynullabona.
Exemptionsand Homesteads. Undertheconstitutionandlaws
of Georgia, eachheadofafamilyorguardian, or trusteeofafamily
ofminorchildren,orofanagedor infirmperson,orapersonhaving
careand support ofdependant females ofany age, whois not the
headofafamily, shall have exemption of realty, or personalty, or
both,totheaggregateof$1600. Thedebtorshallhavepowertowalve
orrenounce,in writing, his right tothe benefit ofexemptionabove
stated, except as to wearing apparel and not exceeding $300worth
ofhouseholdandkitchen furniture, and provisions. Thehomestead
orexemptionmaybesoldbythedebtorandhiswife,ifany,withthe
sanctionofthejudgeof thesuperiorcourt ofthecounty where the
debtorresides,orthelandissituated. Theproceedstobere-invested
uponthesameuses. Ageneralwaiverinwriting,ofthehomestead,
orexemption,isgood.
ForeignCorporations. Allcorporations,except thosechartered
and organized under the laws of this State, are held to be foreign
corporations. Such corporations are recognized by comity only;
theyaresubjecttoattachment,buthavealltherightsofreplevyand
defense. They cannot exercise any corporate powers or privileges
whichbytheconstitutionandlawsofGeorgiaaredenledtodomestic
corporationsor theexerciseofwhichwouldbecontrarytothepublic
policyofthis State. Thereis otherwise no restriction uponforeign
corporationsexcept inthe caseofinsurancecompanies andbuilding
selfand children, but by special contract i n h e r o w n capacity, a n d
n o t a s a g e n t f o r h e r h u s b a n d , shecould bindherseparate estate, for
Mortgages
Mortgages are only security fordebts. T h e y m a y
embracepropertyin the mortgagor's possession, o r t o which h e h a s
arightofpossession. T h e y m a y c o v e r a s t o c k i n b u l k , butchanging
in specifics, and after acquiring property. No particular form is
necessary, butit mustbeclearthattheinstrumentindicatesallen,
describes the propertyand specifiesthedebtitsecures. Mortgages
on land are not good against dower, a n d a w i f e cannot waive her
dowerasagainstthislien. Mortgagesmustbeexecutedandattested
I n t h e s a m e m a n n e r a s d e e d s , exceptthatin mortgages onpersonal
property,onlytheofficialwitnessisnecessary. Mortgageswithpower
of sale are validin Georgia. Homestead a n d exemption m a y be
w a l v e d i n t h e mortgage. All mortgages on personal property m u s t
berecordedinthecountywherethemortgagorresidesandthepropertyislocated. Mortgages o n l a n d m u s t b e recorded i n t h e c o u n t y
wherethelandissituated.
Notaries. Commercial notaries, male or female, are appointed
forfouryearsbythe superiorcourts. T h e y m u s t h a v e sealsandare
authorized to attestdeedsand mortgages,and m a k e protestofcommercialpaper.
Notes andBills ofExchange. (SeeBillsofLadingandPromissory Notes.)
Promissory notes are negotiable by endorsement of
payee, orholder,notespayabletobeareraretransferablebydelivery
only Bonds, specialties, contracts, bills of lading, a n d warehouse
recelpts, arenegotiable by endorsementor writtenassignmentinthe
s a m e m a n n e r as bills of exchange a n d promissory notes. Endorsem e n t s m a y be limited by express restrictions. Acceptances ofbills
m u s t b e in writing. Transferers of negotiable instruments warrant
thattheyare thelawfulholders, have the rightto sell, a n d t h a t t h e
instrumentis genuine. B o n a fide purchasers of negotiable paper
takingthesameforvaluebeforedue,andwithoutnotice,areprotected
against any defense, except: 1. Non est factum. 2. Gambling.
orimmoralorillegalconsideration. 3. Fraudinitsprocurementby
theholder. Maturity gives notice ofdishonor. No days of grace
areallowed.
Probate Law. (SeeAdministrationof Estates, Deedsand Mortgages.)
Protests. (SeeBillsofLadingandPromissoryNotes.)
Records. (See D e e d s a n d Mortgages.)
R e d e m p t i o n . ThereisnoredemptioninthisStateunderjudicial
sales exceptin case of sale ofproperty under tax execution where
partlesmay redeemintwelvemonths.
andloanassociations,whicharerequiredtomakedeposits. Allcorporationsaresubjecttolicensefeesfordoingbusinessandallareliable
fortaxesonpropertyownedorheldintheState. (SeeCorporations.)
Fraud. Contracts,awards,marriages, judgments, sales,andwills
arevoldwhentheyarebroughtaboutandprocuredbyfraud. Promissorynoteswhenprocuredbyfraudarevoldinthehandsoftheholder,
Replevy. Allpropertyselzedunderattachment,distress,orother
similar process, may be replevled. Property seized under process
andclaimedbythethirdpartymaybedeliveredoveruponbondand
securityforitsforthcomingtoanswerfinaljudgmentofdecree.
administrator,guardian,ortrustee, toanswerindamagesoutofhis
goods in bulk i s d e e m e d fraudulent unless the sellerdelivers to the
buyeralistofallcreditorsandtheamountdueeach. Itshallthenbe
whosoprocures them. Thestatuteoffrauds, asofforceinGeorgia,
requiresthefollowingobligationstobeinwriting,signedbytheparty.
orhisauthorizedagent,tobebinding: 1. Apromisebyanexecutor,
ownestate. 2. Apromise to answerforthedebt, default, ormiscarriageofanother. 3. An agreementmade uponconsiderationof
marriage, except marriage articles as otherwise provided. 4. Any
contractforthesaleoflands, orany Interestinorconcerningthem.
5. A n y agreement thatis not to be performedinayear. 6. A
promisetoreviveadebtbarredbystatuteoflimitationsorbankruptcy. 7. Anycontractforthesaleofgoods, wares, andmerchandise.
inexistenceornot inesse, to theamountof$50 ormore, exceptthe
buyershallacceptpartofthegoodssoldandactuallyreceivethesame
orgivesomethlaginearnesttobindthebargainorinpartpayment.
6. Anacceptance of a bill of exchange.
Garnishments. Thisprocessmaybeinvokedinanycase.
Gar-
Revision. (See Courts.)
Sales. Salesmaybemadetopaydebts,butanysaleofstocksof
thedutyof the buyer to notify the creditorsofhispurchase. This
noticemust be mailed five days before completion ofthe purchase.
Taxes. Taxesareallenuponallthepropertyofthedebtor, real
orpersonal,anditslienispreferredasstatedinsectionhereinrelating
to distribution of the estates. Salesof property for taxes are con-
ductedinthesamemannerasotherjudicialsales. O n e y e a r i n w h i c h
to redeemisallowed.
Wills. All persons offull a g e a n d sound a n d disposingmemory.
Includingmarriedwomen,maymakewills,anddisposeoftheirestates.
Willsmustbeexecutedinthepresenceofthree witnesses,allofwhom
shallbepresent, mustbecalledbythetestatoraswitnesses,andmust
nishmentmaybe dissolved by giving bondandathirdpartymay
claimafundheldupundergarnishmentand mayreleasethefundby
sign,andshallcertifythattheysigned,inthepresenceofthetestator,
a n d i n t h e presence of each other. Wills mustbeinwriting, except
nuncupativewills, Wills ofcitizens ofother States, where executed
emptfromprocessofgarnishment.
accordingtothelawsoftheState,andprobatedinsolemnforminsuch
State, whichdisposeofrealorpersonalproperty inGeorgia,maybe
givingbond. Wagesoflaborers,journeymenandmechanics,areex-
BANKING A N D COMMERCIAL L A W S - I D A H O
ear
1390
vision ofthebank commissioner. Thebankerhasageneralllen
are
bel
dependentuponpossession,uponallpropertyinhishandsbelonging
admittedtoprobateinthisState,whenanauthenticatedcopyofthe toacustomerforthe
balance due himfromsuchcustomerinthe
willispresented,accompaniedbyacertificateofthegovernorofsuch
courseofthebusiness.
(
S
e
s
s
.
State,underthesealoftheState,thattheofficialofthecourtwhere
Laws1911amended1913.)
suchprobatewasmade,hadoriginaljurisdictionofthesubject-matter.
BlueSkyLaw. Idahohasablueskylawgoverningcorporations,
und
Willsareprobatedinthecourtofordinaryinthecountywherethe
unincorporated associations and partnerships,domesticorforeign
Allwillsexecutedoutofthis dealinginstocks,bonds,andothersecurities,exceptingUnitedStates
testatorresidesatthedateofhisdeath.
bonds, StateormunicipalsecuritiesinIdaho,andIdahorealestate
StatebycitizensofthisStatetodisposeofpropertyin Georgiamust
D
beexecutedaccordingtoourlaw. Aforeignwill,executedaccording
mortgages. Thislawrequiresthefilingofvariousstatements,accounts
are
tothelawofGeorgia,willconstituteamunimentoftitletorealprop- andotherpapers,andmakesitunlawfultodobusinessintheState
G
ertywithoutbeingprobatedinthisState,whenrecordedontherecord withoutcompliance. (Sess. Laws1913.)
ure
ofdeedsinthecountywherethelandlies,togetherwithanexempliCap
Collaterals. Nostatutoryregulation.
ficationofrecordadmittingittoprobateinanotherState, certified
Community Property. All property acquiredaftermarriage
B
accordingtotheActofCongress.
otherthanbygift,bequest,devise,ordescent,iscommunityproperty.
beld
desc
Contracts. Awritteninstrumentispresumptiveevidenceofa
the
consideration.Conveyances. RealestateisconveyedbyInstrumentinwriting.
.
ban
a
subscribed by the partyorhis authorized agentinwriting. The
abs
communitypropertycanbeconveyedonlybybothhusbandandwife
joiningintheexecution. Duringthecontinuanceofthemarriagethe
10
ba
allyesfilm
wife hasthemanagement, control, andabsolutepowerofdisposi
tionofnerseparate property, andmaybargain,sell,andconvey
herreal and personal property,andmay enterintoanycontract
to
me erards
by
withreference tothe same, inthe same mannerandtothesame
eat
on36 SINANTARE
And
extentandwithlikeeffectasamarriedmanmayinrelationtohis
g
ov
realandpersonalproperty. Aninstrumentpurportingtograntreal
propertytotake effectuponconditionprecedent,doesnotpassthe
b
estateuponthe performanceofthecondition. Suchinstrumentl
(SeeAcknowledgments.)
merelyan
executory
c
o
n
t
r
a
c
t
.
Corporations. Privatecorporationsmaybeformedbythree(3)
ormorepersons,atleastoneofwhommustbeabonafideresident
of this State. Such corporation isformedbyexecutingarticles
ofincorporation, containing: 1.Thenameofthecorporation2
Thepurpose forwhichitisformed. 3.Theplacewhereitspri
cipalbusiness istobetransacted. 4.Thetermforwhichitisto
Ma
exist(notexceedingfiftyyears). 5.Thenumberofitsdirectorsor
trustees, not exceeding fifteen, whomustbestockholdersofthe
corporation. 6.Theamountofthecapitalstockandthenumber
ofsharesintowhichitis divided. 7. Theamountactuallysub
scribed, andbywhom. Thearticlesmayprovidefortheelection
ofone-thirdofitsdirectorsannually. Railroad,wagonroad,telegraph
SYNOPSIS OF
andtelephonecorporationsmustalsostateintheirarticles: 1.The
kindofroad,telegraphortelephonelineintendedtobeconstructed.
2. Theestimatedlengthoftheroadorline. 3. Theymayprovide
intheirarticlesthenumberofdirectorswhichshallconstituteaquorum
I D A H O
T H E L A W S OF
forthetransactionofbusiness,thedecisionofthemajorityofsuch
Whethermeetingsoftheboardshall
beheldwithinorwithouttheState.
5. Whetherstockholdersshall
4.
quorumtobeavalidact.
RELATINGTO
beindividuallyliablefordebtsofcorporation. Railroadcorporations
musthavesubscribed,beforefilingarticles,$1,000permile;wagon
roadcorporations, $300 permile; telegraphcorporations,$100per
BANKING A N D C O M M E R C I A L USAGES
mile,andthearticlesmustbeverifiedbyaffidavitofpresident,secre
tary,ortreasurernamedinarticles,thatsuchstockhasbeensub
scribed. Allarticlesofincorporationmustbefiledintheofficeofthe
RevisedbyRICHARDS&HAGA, AttorneysatLaw, Bolse. (See Card countyrecorder, inwhichtheprincipalplaceofbusinessislocated,
andacopythereofcertifiedbytherecorder,filedwiththeSecretary
inAttorneys' List.)
ofstate. Allcorporations, exceptinsurance,non-productivemining
companies, co-operative telephone andirrigationcompanies,m
paybetweenJuly1standSeptember1stofeachyear,alicensefee
instruments
and
other
A
l
l
conveyances
Acknowledgments.
basedontheamountofauthorizedcapitalstock,varyingfrom$1010
requiredtobeacknowledgedinthis Statemustbeacknowledged, if $150;afailuretomakepaymentbySeptember1stentailsapenalty
withintheState,beforeajudgeorclerkofacourtofrecord,acounty
of$10, andafailuretomakepaymentbyNovember30thentails
recorder, anotarypublic, orajusticeofthepeace. Ifwithoutthe lossofcharterfordomesticcorporationsandalossoftherighttodo
State,butwithintheUnitedStates,theymustbeacknowledgedbefore businesswithintheStateforforeigncorporations. BetweenJuly1st
anysuchofficer,oracommissionerofdeedsforthis State,orbefore
anyofficerauthorizedbythelawsofthis StateorTerritorytotake andSeptember1st,allcorporationsmustmakeanannualreport,and
suchacknowledgment. IfwithouttheUnited States,theymustbe afailuretodosotakesawaysuchexemptionsasarementionedabove.
Corporation, Foreign. Foreigncorporationsdesiringtodobuk
acknowledged before a minister or charge d'affairs ofthe United
States, residentandaccreditedinthecountrywheretheacknowledg- nessinthisState,mayhavealltherightsandprivilegesoflikedome
mentistaken, beforeaconsulorvice-consul,ajudgeofacourtof ticcorporations, byfilingwiththesecretaryofstate,andintofficeoftheclerkofthedistrictcourtinthecountywheretheprincipal
record, a duly appointed commissioner, or a notary public. The placeofbusinessofsuchcorporationistobeconducted,acopyof
certificateofacknowledgment,ifmadebeforeajusticeofthepeace. theirarticles ofincorporation,andthedesignationofsomeperson
whenusedinanycountyotherthanthatin whichheresides, must residing inthecountyinwhichsuchprincipalplaceofbusinessis
beaccompaniedbyacertificate,underthehandandsealoftherecorder
ofthe county in whichthe justice resides, setting forththatsuch
under
Justice, atthetimeoftakingsuchacknowledgment, wasauthorized
TermsandJurisdiction. Thejudgeofthedistrictcourt
totakethesame,andthattherecorderisacquaintedwithhishand- anylawofthisStatemaybeserved.
writing,andbelievesthatthesignatureisgenuine. Proofoftheexecu- timeforholdingthedistrictcourtintheseveralcountiesofhisdis
tionofaninstrumentmaybemadethoughithasnotbeenacknowl- trict;andhemayholdsuchspecialtermsashedeemsproperand
Courts.
edged. Formofmarriedwoman'sacknowledgment!thesameasthat
Districtcourtshaveoriginaljurisdictioninallcivilcases
Probatecourts areheld in eachcounty continuously,andhave
ofasingleperson. (SeeConveyances.)
Actions. ThereisbutoneformofcivilactioninthisState. An Jurisdictionupto $500,incivilcases,andconcurrentjurisdiction
action iscommenced withinthemeaning ofthestatute whenthe withjustice'scourtsinallcriminalcases.
.yrassecen.005$,noitcidsiruj'secitsuJ
complaintisfilledwiththeclerk. Everyaction mustbeprosecuted
Depositionsmaybetakenbeforeanyjudge,justiceofthepeace.
inthenameoftherealpartyininterest.
DaysofGraceabolishedbystatute.
Statescommissioner,oranyotherperson
Affidavitsare used onlyto verifypleadings,to prove service of notarypublic,orUnited
agreeduponbytheparties,uponnoticeservedupontheopposite
summons,notice, orotherpaper,toobtainprovisionalremedy.
party,statingthecourt,action,time,andplace,andbeforewhom
Aliens. Code provisions astoholdingpropertybyalienshave thesamewillbetaken,ortheymaybetakenuponcommissionissued
beenrepealed(Sess.Laws,1913).
Arbitration. Persons capable of contracting may submit to
arbitration any controversywhich might bethe subject ofa civil bythejudgewithinterrogatoriesattached.
actionbetweenthem, excepta questionoftitletoreal propertyin
Devolution
ofProperty. (SeeSuccession
EmployersandEmployes.
Allpersonsemp.)
loyingmechanicsor
feeorforlife.
ab
orersinworkingmines,erectingorrepairingbuildings,construct
Arrests. Thedefendantmaybearrestedinacasefortherecovery l
Dowerdoesnotexist.
ingcanals,railroads,etc.,mustmake,record,andpublishastate
ofmoneyordamagesona causeofactionarisinguponacontract.
ment, underoath, settingforththefollowing: Thenameofthe
expressorimplied,whenthedefendantisaboutto departfromthe ownerofthepremiseswhereworkisbeingdoneoruponwhichit
Statewithintenttodefraudhiscreditors; alsoformoneyorporperty
embezzledorfraudulentlymisplacedbyapublicofficeroranyperson intendedtobeginwork;thenameofthepersonorcompanyengaged
inorwho
engaginginworkuponsuchpremises;the
in afiduciary capacity, orwhenthe defendant has beenguiltyof conditions contemplates
underwhichsuchpersonorcorporationisprosecuting
fraudincontractingthedebt,orinconcealingordisposingofpersonal theworkasagent,owner,etc.,theprincipalofficeoftheownerand
property,forthetakingorconversionofwhichtheactionisbrought; theagentinthisState;thetimeandplacewherepaymentoflaboren
orwhenthedefendanthas orisabouttoremoveordispose ofhis and mechanics will bemade. Acopyofthisstatementmustbe
propertywithintentto defraudhiscreditors.
Assignments and Insolvency. An insolvent debtor may be
Employer'sLiabilityLaw. Providesfordamagesnottoexceed
dischargedofhisdebtsbyexecutinganassignmentofallhisproperty, postedattheplacewhereworkisprosecuted.
$
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real andpersonal, which, with asworninventory ofpropertyand
Executionsissueatanytimewithinfiveyearsafterjudgment
scheduleofcreditors,mustbefiledinthedistrictcourt. Atacreditors' meeting, held afterthirtydays' noticegiven, oneassigneeis Theonlystayisbyappeal,withsecuredbond. Oneyearallowed
appointed, and claims proved. Court will be set aside property
exempt, and issue order for direct payment of money, where no
Exemptions. Homestead, notexceeding$5,000,ifdeclaration
mortgageorpledgehadbeengiven, orwheresuchsecurity,ifgiven, of homestead isduly acknowledged andrecorded;officefurniture
and library, $200;necessaryhouseholdandkitchenfurniturenot
hasbeenrendered neugatorybyact ofdefendant. Assigneemust
forredemption.
furnishbond, withtwosufficientsureties.
exceedinginvalue$300,andprovisionsforfamilyforsixmonths
Attachments. Theplaintiffatthetimeofissuingthesummons.
foodforsixmonthsandwater
rightfor160inches,whenactuallyusedinirrigation;alsoc;
ropsgrow
oratanytimeafterwards,mayhavethepropertyofthedefendant ingorgrownonfiftyacresofland,leased,ownedorpossessedbythe
attachedassecurityforthesatisfactionofanyjudgmentthatmay
personcultivatingthesame;toolsorimplementsofmechanioneces
e
t
c
.
,
with
berecorded, unlessthedefendantgivesecurityto pay suchjudg- certainfarmanimals,
ment. Defendantinacivilactionforrecoveryofmoneyordamages, saryforhistradeofthevalueof$500;allinstrumentsofsurgeons
tc.,alsocallprofessionallibrariesminer'sdwellingofvalue$500,and
underacontract, expressorimplied, maybearrested, whenabout e
hispipes,cars,etc.,ofthevalueof$200;packanimalsandequip
todepartfromtheStatewithintentto
orobligationwasfraudulentlycontracted.defraud, orwhenthedebt ments,notexceeding$250;team,wagon,etc.,ofdrayman;thepersonal
BanksandBanking. Idahohasafullandcompletelawupon
theformationandregulationofbanksandtheformationofbanking
corporations. No banking corporation can have less than five
directors. Allbanks,otherthannationalbanks,areunderthesuper-
.
B A N K I N G
A N D
.
.
.
.
C O M M E R C I A L
earningsofadebtorwithinthirtydaysprecedinglevy,whereearnings
are necessary for use of family, residing in this State; the shares
held by parties o f t h e Building a n d L o a n Association to the value
of$1,000; provided, such personhas no homestead; allbenefitsaris-
ingoutoflifeinsurance, represented byanannual premiumof$250;
allpropertyoffirecompanies. Alltheabovepropertymaybesold
1391
L A W S - ILLINOIS
Protest. (SeeNotaries.)
R e c o r d s . Alldeeds, mortgages, realandchattel,andinstruments
affecting the title to lands must be recorded. Inventory of the
separatepersonal estateofamarriedwomanwhenrecorded,becomes
prima facie evidence that the property therein enumeratedis her
under foreclosure ofmortgage, which includes same.
separateproperty. Judgmentempoweringamarriedwomantoactas
Garnishment. Anypersonalpropertyor credits inthehands of
another, belonging to the defendant, is subject to garnishment, as
aredebtsowing t o h i m fromanotherifdue.
asoletradermustberecordedinthecountyrecorder'soffice. Incase
oflevyofattachmentuponrealestate,acopyofthewrit,withacopy
ofthenoticeoflevyattached thereto,mustbefiledintheofficeofthe
countyrecorder.
Guaranty. TitleandTrustCo. May furnish abstracts, act as
surety, trustee, fiscal agent. Paldup capital of $25,000 required.
Capital deemed security for the performance oftheirduties.
Redemption. Property m a y b e redeemed withinone yearafter
sale, onpaying purchaseramount paidonsaleand10percentadditional. Property may be redeemed by successive redemptioners
H u s b a n d a n d W i f e . All theproperty ofthe wifeowned by her
before marriage, a n d that acquired afterwards by gift, bequest, or
descent, or that which she shall acquire with the proceeds of her
within sixty days from last redemption, a n d within one year from
sale, by paying an additional 4 percent. In casesoftaxsales, the
o w n e r m a y redeem in three years.
Replevin. Actionof,mustbebroughtwithinthreeyearsfromtime
separate property, shall remain her sole and separate property, to
the same extent and withthe sameeffectas the property ofahusbandsimilarlyacquired. Thewifehasthemanagement,control,and
absolutepower ofdisposition ofher separateproperty, tothe same
e x t e n t a n d with like effect as a married m a n m a y h a v e i n relation
It accrues. Plaintiff m a y sue for the possession without claiming
Immediatepossession,orhemayclaimimmediatepossessionattimeof
commencingsuitorafterward. Affidavitshowingthatplaintiffisthe
owner, thedetention,theunlawfulnessofthedetention,etc.,andbond
tohis real and personal property. The separate property of the
withsuretiesrequiredtoobtainimmediatepossession. Defendantmay
executeundertaking, withapprovedsuretles, fortheretentionofthe
and when properly executed and recorded m a y vary the statute
s i o n o f t h e property involved.
governing the relations of husband a n d wife concerning property
rights. Minors mayexecutevalid marriagesettlements.
Interest. W h e r e there isno express contract inwriting fixing a
definite rate of interest, the r a t e i s 7 p e r cent p e r a n n u m . Parties
areabolished.
wifeis notliablefor thedebts o f h e r h u s b a n d , butisliablefor her
o w n debts contracted before or after marriage. There is no estate
by courtesy or in dower. Marriage settlements are provided for.
mayagreeinwritingforinterestattherateof12percentperannum.
Judgments bear interestat the rate of7percent perannum.
property,and thatit willbeforthcoming, subject to the orderofthe
courtinwhichtheactionispending,andthereuponretainthepossesSeals. Thedistinctionsbetweensealedandunsealed instrumente
Succession to Property. Ifdecedentleavespouseandonechild
eachentitledtoone-halfofdecedent's separateproperty,bothrealand
personal; if m o r e t h a n o n e child, surviving spousegetsone-thirdand
remainder in equal shares to surviving children. In the case of
J u d g m e n t s a r e liens onallrealestateofdebtorwithinthecounty.
f r o m time of docketing, a n d m a y be extended to othercountiesby
communityproperty, the surviving spousetakesallthe propertyin
Justice'scourt judgmentsbecomellenswhen certified a n d recorded.
childrentaketheother one-half.
filing transcript in recorder's office.
Lien continues five years.
Mayberevived by issuing execution withinlimitation.
Liens. Mechanics. Everypersonperforminglaboruponfor furnishingmaterialsusedin the construction or repair of any mining
claim, building, or other improvement, has a lien thereon F a r m
laborershave lienupon the crop and products thereof, uponwhich
they bestow labor.
All liens must be set forth by a statementin
writing,showingtheamountdue,thefactsconnectedwiththematter.
that there are no credits due on the clalm, or offsets against the
same; whichstatementmustbeverifiedbytheclaimant,andrecorded
Intheofficeofthecounty recorder, ifonclaim oforiginalcontractor.
withinninetydays, ifonclaim of otherpersons, within sixtydays
fromthetimeofthecompletionofthestructurethecompletionofthe
labor, orthefurnishingofthematerials. Lienmustbeenforcedby
suit withinsix months, unless credit is given, expires at all events
intwoyears.
LimitationtoSuits. Contracts notinwritingandopenaccounts,
eventtherearenochildren; b u t i f childrenalso survive, the surviv-
ing spousetakes only one-half of the communitypropertyandthe
Taxes. Thelocus ofproperty fortaxation relatestothe second
M o n d a y o f J a n u a r y , ifwithintheState,andifnottothedayofassess-
ment,andisalienfromandafterthatdate. Theperiodofredemption
isthreeyears.
T r u s t C o m p a n i e s . (SeeGuarantyCompanies.)
Wills. Everypersonovertheageofeighteenyears, andofsound
mind, maymakeawill. Every will, otherthananuncupativewill.
m u s t b e i n writing, and every will other thanan olographicanda
nuncupativewill,mustbeexecutedbythetestatorsubscribingthereto
orsomepersonbyhisdirection, which mustbedoneinthepresence
of t w o attesting witnesses, each of w h o m must signbis n a m e a n d
statethatthe testator requested h i m towitness the testator'ssignature, a n d the testator must alsodeclarein thepresence of the witnesses thatsuchishis last will a n d testament. One-half of communitypropertymaybedisposedofbywill.
fouryears; instrumentsinwriting, five years;judgmentsanddecrees,
sixyears. Revivor: Only byinstrumentinwriting; partpayment
doesnot.
M a r r i e d W o m e n . Allproperty, realorpersonal,acquiredbefore
marriage and acquired after marriage, by gift, bequest, devise, or
descent, wife's separate property; allotherpropertyacquiredafter
marriage,commonproperty; wifemust record Inventoryof separate
property. No estate as tenant by courtesy allowed thehusband.
n o r d o w e r t o t h e wife.
Mines and Mining. (Principal regulations underUnitedStates
Statutes.) Quartz locationsmaybe1,500 feet longand300feet on
e a c h s i d e o f t h e middle oflode. M o n u m e n t s must be establishedat
allexterior angles of claim. Claim should be tied to s o m e natural
or permanent monument. Copy of location notice must be posted
atdiscovery within three days after discovery. Notice oflocation
mustberecordedwithinninetydaysafterlocation; withinsixtydays
ten-footshaft m u s t b e sunk orits equivalent.
Locationnoticemust
containnameoflocator,nameofclaim,dateofdiscovery,dimensions,
miningdistrict, county, and state. Placer locations made in same
manner as quartz locations, except that within fifteen days after
distancefromsomepermanent, natural, orartificialobject;nameof
m a k i n g location, locator must excavate not lessthan100cubicfeet
:
forpurposeof prospectingclaim,andmustrecordnoticeoflocation
withinthirtydaysaftermakinglocation.
Mortgages. A real estate mortgage must be acknowledgedand
certified, and recordedin like manner as conveyances and deeds
ofrealproperty, andisforeclosed by actionin the districtcourt.
ChattelMortgages must be acknowledged as real estate mortgages
andsworntobythemortgagorthatthesameismadeingoodfaith
withoutanydesigntohinder,delay, ordefraudcreditors. Maybe
filedorrecorded. Survives as long as the debt. Mortgages are
dischargedbyasatisfactiondulyexecutedand recorded, orby entry
onmarginofthe record, witnessed by recorder.
Negotiable Instruments. Negotiableinstruments aregoverned
bytherulesofthe Uniform Negotiable Instrument Law, as recommendedbytheAmericanBarAssociation. (See Laws 1903,p.380.)
Notaries, when requested, to demand acceptance andpayment
of foreign, domestic, and inland bills of exchange or promissory
notes and protest the same for non-acceptance and non-payment;
exercisesuchotherpowersanddutiesas by the lawofnationsand
commercialusage,orbythelawsofanyotherTerritory,State,government,orcountrymaybeperformedbynotaries. Attachacknowledgmentsorproofofpowers ofattorney; mortgages, deeds, grants,
transfers,andotherinstrumentsof writing executed byanyperson.
Givecertificateofsuchprooforacknowledgment, totakedepositions.
affidavits,andadministeroathsandaffirmationsinallmattersincident
toduties of the office. To keep a record ofallofficialacts:when
requested, anduponpaymentofhisfeestherefore, tomakeandgive
acertifiedcopyofany record inhis office; to provide and keepan
officialseal, onwhichmustbeengravedhisname,thewords"Notary
Public,"andthenameofthecountyforwhichheiscommissioned.
Toauthenticatewithhisofficialsealallofficialacts.
PowerofAttorney. Powersofattorneyforgrantsofrealestate
andtoexecuteamortgage mustbeinwriting, subscribed,acknowledgedorproved,certifiedandrecordedasother instrumentsaffecting
real property. Powers ofattorney which havebeenrecordedmust
berevokedbyrevocationinwriting,acknowledged,proved,certified,
andrecordedthesameasoriginalpower.
Probate Law. Probate courts have jurisdiction to open and
receiveproofofwillsandadmitthemtoproof;tograntletterstesta-
mentaryandguardianshipand revokesame; appointappraisers of
estates,compelexecutors,etc., torenderaccounts;ordersaleofpropertyofestatesandminors;orderpaymentofdebtsduefromestates,
orderandregulatedistributionofpropertyorestates;compelattendance of witnesses and production ofall instruments pertaining to
estatesandpropertyofminors,andmakesuchordersasmaybenecessary toexerciseall powers conferred. Proceedingsofthis courtare
construedthesameascourtsofgeneraljurisdictionandlikeforcegiven
toitsrecords.
S Y N O P S I S OF
T H E L A W S OF
ILLINOIS
R E L A T I N G TO
BANKING AND COMMERCIAL USAGES
Preparedand Revisedby Messrs. MuSGRAVE, OPPENHEIM & LEE,
AttorneysatLaw,Chicago. (SeeCardinAttorneys' List.)
Acknowledgments.
Ofdeedsofrealestateandotherinstruments.
maybetakenbeforethefollowingofficers: WithinthisState before
amaster in chancery, notary public, United States commissioner,
countyclerk,justiceofthepeace, anycourtofrecordhaving a seal
oranyjudge,justice,orclerkthereof. WithoutthisState,andwithin
the United States, its territories, dependencies, or the District of
Columbia, beforeajusticeofthepeace,notarypublic,masterinchancery,UnitedStates commissioner, commissioner to takeacknowledgmentsofdeeds,mayorofacity,clerkofacounty,orbeforeanyjudge,
justice, clerkordeputyclerkofthesupreme,circuit, ordistrictcourt
ofthe United States, or before any judge, justice, clerk ordeputy
clerk, prothonotary, surrogate, or registrar of the supreme, circuit,
superior, district, county, commonpleas, probate, orphansorsurrogatecourt of any ofthe States, Territories,ordependencies of the
United States. Inanydependency ofthe United States, such acknowledgmentor proofmayalso be taken or madebefore any commissionedofficer inthemilitary service ofthe United States.
When
suchacknowledgmentor proof ismadebeforea notarypublic,United
States commissioner, or commissioner ofdeeds, it must becertified
underhissealofoffice. Iftakenbeforeamayorofacity, it m u s t b e
certified under the seal ofthe city; if before a clerk, deputy clerk.
prothonotary, registrar, or surrogate, under the seal of his court:
ifbeforeajustice ofthepeace. oramaster inchancery, there must
beaddedacertificateoftheproperclerkunderthesealofhisoffice,
setting forth that such person was ajustice of the peace or master
inchancery at the time of taking such acknowledgment or proof.
Anacknowledgmentorproofofexecutionmaybemadeinconformity
:
BANKING AND COMMERCIAL LAWS-ILLINOIS
1392
withthelaws ofthe State, Territory,dependency, ordistrictwhere
itismade. WithouttheUnitedStates,beforeanycourtofanyrepublic. dominion, state, kingdom, empire, colony, territory, or dependencyhaving aseal, or before any judge, justice, or clerk thereof,
orbeforeanymayororchiefofficerofanycityortownhavingaseal,
orbeforeanotarypublicorcommissionerofdeeds, oranyambassador,
minister, or secretary oflegation, or consulofthe United States, or
vice-consul, deputy consul, commercial agent, or consular agent of
theUnited States. The acknowledgment ofaconveyancebyamarriedwoman m a y be m a d e and certified as if she were single. An
acknowledgmenttakenbyanyoneinterestedintheconveyanceisvoid.
Actions. Forms of action and pleadings are substantially as at
commonlawexcept injustice courts andthe municipalcourt ofChi-
madetothepresident oranyofficer oremploye, unlessapprovedby
the Board of Directors. The minimum amounts providedforthe
capitalstockofbanksareasfollows: Incitiesof5,000orless.$25.000,
up to 10,000, $50,000; up to 50,000, $100,000,and50,000ormore,
$200,000. Upon impairment of the capital stock theAuditor may
require assessment of stockholders or a reductionofthecapital. It
he shalldeem thebank isbeing conductedinanunsafe, fraudulent
or illegalmanner, hemayfileabillforaninjunction,dissolutionand
receiver, but such abillcanbemaintained onlyinthenameofthe
Auditor. Upondeficiencyofassets, thecourt mayrequire,insucha
suit, thatthereceiverproceedagainst thestockholdersontheirstok
cago,whereinthepracticehasbeenmuchsimplified. Anon-resident
isrequiredtogiveabondforcosts.
Administration of Decedents' Estates. Letters testamentary
issueto executor n a m e d i n will. ifhe be a resident. Ifthere b e n o
liability. Thereareprovisionsforconsolidation,changeofnameand
voluntary dissolution. A b a n k e r is liable tofineandimprisonment
ifhe receiveadepositafterheknowsthebankhasbecomeinsolvent
andtherebythedepositorsuffers loss.
will, ornoexecutor named, or theexecutor isdisqualified or refuses
toact, administration isgrantedtosurvivinghusband, or wife, next
ofkin, or some competent person. The surviving husband or wife,
ortheperson nominatedby him orher, has preference. Ifnoneof
theabovenamed applies within sixtydays fromdeath ofdeceased,
thenadministrationisgrantedtothepublicadministratoroftheproper
county. The administrator must be a resident of the State. A
foreign executor or administrator, within the United States, may
prosecutesuits to enforceclaims orto selllandstopaydebts. The
Bills of Lading. TheUniformBillsof LadingLawis inforcein
Illinois.
ChattelMortgages.Nomortgage,trustdeed,orotherconveyance
ofpersonalpropertyhavingtheeffectofamortgageorlien,isvalid
againstthirdpersons, unless possessionbedeliveredto, andremain
with,thegrantee;ortheinstrumentprovidesforthepossessionofthe
propertytoremainwith thegrantor,andthe instrumentisacknowi
edgedandrecorded. Theinstrumentmustbeacknowledged,incun
tieshavingapopulation of less thantwohundredthousand,beforea
justiceofthe peace, police magistrate, aclerk ordeputyclerkofa
municipalcourt, orcountyjudgeofthecountyinwhichthemortgag
executoror administratormustfileaninventory withinthreemonths
from thedateofhis appointmentandmust fixuponatermofcourt,
withinsix months fromthe timehe qualifies, for the adjustment of
resides; incountieshaving apopulationof200,000, ormore,before
ajusticeofthepeaceofthetownorprecinct,oriftherebenojustice
ofthepeace, beforetheclerk ordeputyclerk ofthemunicipalcourt
inthedistrict where the mortgagor resides. Ifthe mortgagorisa
claims, and publish notice thereof. The claimant should produce
andfilehis verifiedclaim, which, ifnot objectedto. m a y beallowed
without further evidence. Ifobjected to, theclaim issetdown for
trial. Ifthe claim is not presented at the time fixed upon, i t m a y
afterwards, withinone year, from thedateofthe issuance of letters
ofadministration, be filled with the clerk, whereupon a summons
issuesagainsttheexecutoror administrator, andthe matter isheard
at a subsequent term. All claims not exhibited within one year
from granting of administration are barred. Claims are classified
as follows: 1. Funeral expenses and cost of administration. 2.
Widow's orchildren's award. 3. Expenses of lastillness, other than
physician'sbill. anddemands due household laborers or servants of
4. Debtsduecominonschoolortownshipfunds.
5. Physician's bill for last illness. 6. Trust funds. 7. All other
deceasedforlabor.
non-residentofthe State, themortgagemaybeacknowledgedbefore
any officer authorized by law to take acknowledgments ofdeeds
After acknowledgmentthe instrument mustbe filedforrecordwith
therecorderofthe county in which themortgagorresideswhenthe
instrumentisexecuted,or, incaseofanon-residentoftheState,then
in the county where the propertyis situated. Themortgageis
valid lien until the maturity of the entire debt orobligation, not
exceeding three years from the filing ofthe mortgage, andmaybe
renewed for one year. A note secured by chattel mortgagemust
stateonitsfacethatitis sosecured, otherwisethemortgageisvoid
Amortgagemaybereleasedonthemarginoftherecord,orbyarelease
deed. Amortgageonasteekofgoodspermittingmortgagortoretall
possessionandbuyandsellisvoidastocreditors.
debts. Claims have priority ofpayment in the above order.
Affidavits.
Within this State oaths and affirmations m a y be
administered byany judge, justice ofthepeace, masterinchancery,
clerkofacourt,policemagistrate, ornotarypublic,intheirrespective
jurisdictions. Without the State the oath or affirmation may be
administered by any officer authorizedby the laws ofthe particular
State, and ifsuch officer has a seal, his certificate under his official
sealisreceivedasprimefacieevidenceofhisauthority.
Aliens. The present law went into effectJuly 1, 1897. I t d o e s
notaffecttherights ofaliensas topersonalproperty,whostilltake
CommercialPaper. (SeeNegotiableInstruments.)
Conditional Sales and like agreements, including, generally.
leases, reserving titleor lieninsellerwho parts withpossession,are
not valid in this State as to purchasers or parties acquiringLens
whilethepropertyremainsinthepossessionofthevendeeorlessee
Consignments. Agreements to sell on consigument are vald
Ifacommission merchant, orpartyselling oncommission,convects
thepropertyconsigned, orafterdemandfailstoaccountforthepe
ceeds,heissubject to fineand imprisonment, andliablefordouble
thesameascitizens. Its provisions are subject to treaties m a d e b y
the United States with foreign countries. Allaliens, subject tocertainrestrictionsmentionedintheact, m a y acquireandforalimited
timeholdrealestatesituatedinthis Statebydeed,devise,ordescent.
andmaytransfer, devise, or encumber it.
Arrestand Bail. No person can be imprisoned for debt unless
thevalueoftheproperty soconverted.
Conveyances. See Deeds.
Corporations forpecuniaryprofitmaybeorganizedforanylawful
purposeexcept banking, insurance, real estatebrokerage,operat a
ofrailroads,andloaningmoney. Themethodofformingacorporate
isasfollows: Fromthreetosevenpersonsexecuteandacknowledge
uponrefusal to deliver up his estate forthebenefit ofhis creditors
insuchmannerasshallbeprescribedbylaw, orincases where there
isastrongpresumptionoffraud.
Assignments. The operation of the Illinois Act relating to
voluntaryassignments forthebenefit ofcreditorshasbeensuspended
bythenationalbankruptcylaw.
Attachments. Acreditor, resident ornon-resident, whoseclaim
isdue, may bring attachment in a court of record ifthe amount
exceeds $20, andinjusticecourtforanyamountnotexceeding $200,
onanyofthefollowinggrounds: 1.Wherethedebtorisanon-resident
ofthisState. 2.Wherethedebtorconcealshimself,orstandsindefiance
ofanofficersothatprocesscannotbeserveduponhim. 3. Wherethe
debtorhas departedfromthis State with the intention ofhaving his
effectsremovedfromthis State. 4.Wherethedebtorisabouttodepart
fromthis Statewiththeintentionofhaving his effects removedfrom
thisState. 5. Where thedebtoris about to remove his property from
thisStateto the injury of such creditor. 6. Where the debtorhas,
withintwoyears precedingthefilingoftheaffidavitrequired, fraudulentlyconveyedorassignedhiseffects,orapartthereof,soastohinder
ordelayhis creditors, 7.Wherethedebtorhaswithintwoyearsprior
tothefiling ofsuchaffidavitfraudulentlyconcealedordisposedofhis
propertysoastohinderordelayhis creditors. 8.Where thedebtoris
about fraudulently to conceal, assign, or otherwise dispose of his
propertyoreffectssoastohinderordelayhiscreditors. 9.Wherethe
providedthestatements ofthedebtor, his agents orattorney, which
debtsued forwas fraudulently contracted on the part ofthedebtor,
constitutethefraud, shallhavebeenreducedtowriting,andhissignatureattached thereto by himself, agent, or attorney. The creditor
must give bond in doublethe amount oftheclaim. Real estate or
astatementgivingthenameofproposedcorporation,theobject.iis
capitalstock, number of shares (eachnot tobeless than $10nof
morethan$100),locationofprincipaloffice,andduration(notexcred
ingninety-nine years); which statementis filedwith the Secretary
ofState. UponthefilingofthestatementtheSecretaryrequiresthe
paymentofthe licensefee, which is$30forallcompanies,havirza
capital stockof$2,500 andunder, $50 foramountsbetween$2
and $5,000, and $1.00 additional for each $1,000ofcapitalstock
inexcessof$5,000. Uponreceivingthelicensetoorganize,sus
tionsareobtained, andaftertheentirestockissubscribed,thec
missionerscallameetingofthesubscribers,tendays written
beingrequired, to elect directors. In allelections ofdirectorsthe
right ofcumulative voting isreserved. Votingmaybebypro
Adirectorneed notbea stockholder, nor aresidentoftheStale
Thecommissionersthenmakeafullreportoftheproceedingstothe
SecretaryofState,verifiedbyamajorityofthecommissioners,and
includeacopy ofthenoticeforthefirst meeting ofstockholders,a
copyofthesubscriptionlist,astatementoftheamountoftheca
notlessthanone-halfactuallypaidin, theamountofsuchca
notpaidin, whatdispositionhasbeenmadeofstocksubscribedat
notpaid,andifanyproportionofthecapitalhasbeenpaidinpro
thesameshallbeappraisedbysaidcommissioners,andther
reportfaircashvaluethereof,andthenamesofdirectorsofthat
electedandtheirrespectivetermsofoffice. TheSecretaryofSa
thereuponissuesafinalcertificateofincorporation,towhichisattes
copiesofallpapersflledwithhim. Thiscertificatemustbe led
officeoftheCom
theRecorderofDeedsinthecountyofthe principal
pany. The Companyisthenfully organizedandmayprocred14
business.
Corporationscanholdonlysuchrealestateasisrequiredforthe
personalpropertymaybeattachedorfundsgarnished. Theproperty business. Theycannotholdstockofothercorporations,butthe
orfundsmaybereleasedbythedebtor giving aforthcomingbond,or
maybuyandselltheirownstockiftheyactingoodfaith.
enteringintoarecognizanceincourttopaythejudgment.
Stockmaybeattachedortakenonexecution;butwhereithasbee
soldorpledgedingood faithandthecertificatedelivered.Itis
Banks. Under the state constitution stockholders haveadouble
liabletoexecutionexcEachstockholderisliableforthedebts
eptastoanyexcessovertheamountfor t
stock liability, andevery bank must make,under oath, andpublish ithasbeenpledged.
eachquarterafulland accuratestatementofitsaffairs. B a n k s m a y
to
the
extentoftheamount thatremainsuna
corporationonly
beformedunderthestatuteforthepurposeofdiscountanddeposit, uponthestockheldbyhim.
Noassignorofstockisreleasedfroc #
buying and selling exchange, and doing ageneral banking business,
excepttheissuing ofbills to circulate as money; m a y loan on both
personalandrealestatesceurity, andmayacceptandexecute trusts.
Thestockholdersattheannual meetingonthefirstMondayofeach
liabilitybytheassignment,butheremains,jointlyliablew
assignee. Apurchaseringoodfaith,withoutnotice,ofstock
asfullypaidisprotected. Stockmaybepaidforinproperty
faircash
valuemoney butthepropertycanbetakenonlyatitsfallb
ectthe than
directors. Thedirecst
ros
mcsuchotherinformationashe
u
uirlanhi
seh
reo
and
dl
hk
ots
st
fof
ts
ca
rotiothersthebudis
duAetatS
mayel
require.
toastockholder'sliability. Thepledgorhasarighttovotethes
Eachdirectormust owntenshares ofstock. Directors arerequired
toholdmonthly meetings. Anydirector,officer, oremployee making
afalsestatementastotheaffairsofthebank, with intenttodeceive,
m a y be punished by imprisonment. No bank can begin business
untilthe Auditor has issued his certificate that its stock has been
fully paid; and such certificate has been filed with the Recorderof
Deedsofthe County where the bank does business. The Auditor
maywithholdhis certificateifhebenotsatisfied as tothe character
andstandingofthedirectorsandofficers. Thepresidentandcashier
thirtydays after organizationmustfilewiththe Recorder ofDeedsa
certifiedlistofstockholdersand theholdings ofeach, andthereafter
record all transfers. No transfer of stock releases stock liability.
Banksareexamined under the direction ofthe Auditor at least once
eachyear. Abankcanholdonlysuchrealestate as is necessaryfor
itsbankinghouse, andsuch asmaybe acquired in the collectionof
i t s d e b t s . Nomorethan 15percentofthecapitalstockandsurplus
corporation,
canbeloaned to oneperson, firm, or
but discounts of
billsofexchangedrawnagainstactualvalues,andcommercialpaper
discountedforpartiesactually
owningthesame, donotcomewithin
this provision. A violation of this provision does not
claim, but renders the directors and officers assenting toImpairthe
the same
personally liablefor any loss incurred thereby. A loan c a n n o t b e
Ifthe indebtedness ofa corporation exceeds its capital stoca
dfor
irecstuocrs
andofficersassentingtheretoarepersonallyliabletocre
h excess. Everystockholderhastherightatallreas
times,byhimselforattorney,toexaminethebooksandrev
thecompany.
Acorporationorganizedforthepurposeofac
andexecutingtrustsmaybeappointedassigneeortrusteeby
andexecutor,guardian,ortrusteebywill,andanycourtmayap
suchcompany receiver, assignee, guardian, conservator,ere.
administrator, orothertrustee, providedsuchappointment
totheestateonly,andnottotheperson. Corporationsare
ontheirtangibleproperty,realandpersonal,withintheState
alsouponthefaircashvalueoftheircapitalstock,includingfra
ses,over andabove theassessed valueoftheir tangiblep
Sharesofstock ofdomesticcorporations,whosetaugibleproper
capitalstockistaxed,arenotsubjecttotaxationinthehandsof
Foreign Corporations doing business inthisStateare
tBouaplolrta
ht
ei
lo
ia
,h
ra
es
sn
,danddutiesimposedond
nb
si
olfiltiikeesc
rt
ar
ci
tcetriioonn
Butaforeigncorporationauthorizedbyitschartertoinvest
moneymaydosohere. Thisdoesnotinclude,however,bar
powersandprivileges. AnActrequiresaforeigncorporationde
todobusinessinIllinoistomakeapplicationtotheSecretaryofstala
1394
BANKING
A N D
COMMERCIAL
Negotiable Instruments. The
Uniform Negotiable InstrumentsLaw" adoptedinNew Yorkandmostoftheotherstates is in
force in Illinois, as to all commercial paper executed after July 1,
1907, withthe following exceptions: 1. Notes payable ingoods are
still negotiable. These notes remain in a class by themselves and
aregovernedbythelawasitexistedpriortothepassageoftheNegotiable Instruments Act. 2. Accommodation paper m a y be issued
aftermaturity, ifsuchwastheintentionoftheaccommodatingparty.
3. Theadditionofwordsofassignmentorguarantytoablankindorsementdoesnotaffectthesignatureasanindorsementunless otherwise
expressly stated. 4. The defenses of fraud a n d circumvention in
the execution of negotiable paper, or that the consideration arose
L A W S - INDIANA
Administration of Estates, ExceptinMarion County,wh
hasaseparateprobatecourt,thecircuitcourthas exclusiveprobatt
jurisdiction. Incasesof Intestacyletters are grantedinfollowing
order, 1. W i d o w or widower. 2. Nextofkin. 3. Largestres
dent creditor. Letters of administration shall begrantedinthe
county, 1. Where Intestate was inhabitant at timeofdeath !
Where,not being inhabitant of the State,heleaves assets. Har
anintestate, not being an Inhabitant, shalldie out oftheStat
outofagambling transaction prohibited by sections 130, 131, and
136ofour CriminalCode, m a y b e assertedasagainstaholder indue
course. 5. Incaseofdishonor offoreignbills, ifthe billbe payable
within the United States and suit be brought thereon, or with or
without suit ifthebill be payable outside of the United States, the
drawerorindorser isliablefor 5 percentdamages, inadditiontothe
amountdueonthebillandthecostsand charges ofprotest. 6. T h e
factthatadepositormakeshisnotepayableatabankdoesnotauthorizethebank t o p a y i t outofhis funds on deposit. 7. An alteration
ofaninstrument avoidsit only when itismaterialor fraudulent, and
m a d e b y the holder. 8. Apromise in writing to accept a billmade
eitherbeforeor after it is drawn isdeemedan actualacceptance as
tothepersonreceivingthebillon the faith thereof. 9. Section 137
of the Uniform Negotiable Instruments L a w , providing that the
destructionbythedraweeofabillofexchangeleftwithhimforacceptance,orhisrefusal toreturnthesamewithintwenty-fourhoursafter
delivery to him or within such further period as the holder might
leavingassetsinseveral counties, lettersmaybegrantedinanyot
ofthecounties in which such assets maybeattimeofdeath and
the administration first lawfully granted shall extendtoallofthe
estate. Letters cannot Issue toamarriedwomanwithouther
band'sconsentinwriting. Suchconsentmakeshusbandjointly
with wife.
Preferenceis given to foreign executorofadecre
notaninhabitantofState, If, beforelettersaregrantedinthisstaw
Itappears that proper letters have been granted inanothersa
except there be resident creditors,legatees andheirsentitledto
tribution, w h o are inhabitants of the State. No action shallhe
brought against an estate for any claim against thedecedent:ba
theholderthereof, whethertheclaim bedueornot,shallfleasur
cinct and definite statement thereofinthe officeoftheclerkofthe
court, setting forth all credits to which the estateisentlied,and
accompaniedbytheaffidavitsoftheclaimant,hisagent,oratternes
thattheclaimisjustandwhollyunpaid. Ifclaimbesecuredby
llen.thelienshallbeparticularlysetforth. Theclaimmustbe
withinoneyearfromthenoticeoftheadministrator'sappointment
or claimant must pay costs; and if not filedat least thirtyCa
before the final settlement of the estate,itshallbe barred,excep
thatheirs, devisees and distributeesshallbeliable totheextentof
allow,shouldbedeemedanacceptanceofthebill,isomittedfromthe
thepropertyreceivedbythem,toanyunpaldcreditorwhosixmonth
prior to the final settlement was insane, an infant, oroutofthe
State, suit to bebroughtwithinoneyearofremovalofdisat
andifuponclaimofnon-residentcreditor, within twoyearsofthe
60,000, the clerk of the circuit court isex officio the recorder. In
Affidavitsmaybetakenbeforeanyofficerqualifiedtotakeacknow
edgments (see above). Dateofexpirationofofficer'scomm
m u s t b e certified.
Aliens. Resident allens who havedeclared theirintention
becomecitizens,mayacquire, hold, andenjoyrealestate,andmar
convey, devise, mortgage, orotherwiseencumberthesame,in
Illinoisact.
P r o b a t e L a w . (SeeAdministrationofEstates,)
Recording Acts. In counties having a population of less than
other counties a"recorder ofdeeds" is elected. As to what instruments must be recorded, see respective titles.
Replevin. The action lies for personal property wrongfullydeis, orwhereanyofthedefendantsresideormaybefound. Before
the execution ofthe writ, the plaintiff, or some one inhis behalf,
mustgive the officer abond with sufficient security (areal estate
ownerofthecountyisgenerally required) indoublethevalueofthe
tained. Theactionmaybebroughtinanycountywheretheproperty
settlement of the estate.
m a n n e r a n d w i t h t h e s a m e effect as citizens of thisState. A
whetherresidentornot,mayownrealestatenotexceeding320 c
landsinexcessofthatamounttheymustconveywithinfiveyears
property.
sufferescheatastosuchexcess.
Sales inBulk. Salesofthemajorpartorallofastock intrade,
chattelsor fixturesnot intheordinarycourseofbusiness, arefraudulentandvoid as to creditors unlessthebuyer obtains from the seller
anaffidavit giving a list ofhis creditors with addresses andamounts
due each, and the buyer, five days before payment, gives notice to
ArrestforDebt. Defendantinacivilactionmaybearrestedand
heldtoballintheamountclaimed,atanytimebeforeJudgrients
affidavitthatheisabouttoleavetheState,takingwithhimprop
eachcreditor personallyor bymailofthecontemplatedpurchase.
Taxes. All real and personal property in this State, including
moneys, credits, bonds, stocks, investments, shares ofstock in corporations(seeCorporations),andofbanksdoingbusinessinthisState,
issubject totaxation. Realandpersonalpropertyislistedwiththe
County Assessor and assessed betweenApril 1stand June1stasof
April1st. ThetaxesarepayableonorbeforeMay1stoftheensuing
year; afterwhichtimepenaltiesareadded. Thereisan Inheritance
Tax Law, theratesvaryingaccordingtotherelationshipoftheheir,
devisee,orlegatee,andtheamountofthelegacies,rangingfrom2per
centinthecasesofwidowandchildren,astolegaciesexceeding$20,000,
to10percent onlargeamountsbequeathed topersons not related
subjecttoexecution, withintenttodelayordefraudthepalat
Bondisrequiredofplaintiff.
AssignmentsandInsolvency. Anydebtormaymakeagener
assignmentofallpropertyintrustforbenefitofallbonafidecrediam
Thistrustisadministeredunderthedirectionofthecounty
Dividendsareallowedonallclaimsallowedbythetrusteeorcourt
Debtorisnotdischarged from his liabilities.
Attachmentmayissueagainstthepropertyofanon-residents
foreigncorporation,andagainstanywhomayhavedisposedof. b
abouttodisposeof, property, tocheat, hinderordelaycredito
againstacreditorwhoconcealshimselfsothatsummonscanb
serveduponhim. Anaffidavitisrequired,andabondtopaya
agesiftheproceedingsbewrongfuloroppressive. Creditorswhi
undertheoriginal attachment, beforefinaljudgment,arere
tofurnishalike affidavitandbond,andallshareproratain M
Warehouse Receipts. The Uniform Warehouse Receipts Law
proceedsoftheattachedproperty. Thewagesofaresidentba
isinforce in Illinois.
holder,notexceedingonemonthatanyonetime,areexemptso
Wills. Every male over twenty-one, and female over eighteen, debtorremainsinsuchemployment.Itisamisdemeanor S
iscompetent tomakeawill. Itmustbe signedby thetestatoror claimsoutoftheStatetobecollectedbyattachment,orgarmist
bysomepersoninhispresenceandbyhis direction, andattestedin whencreditor, debtor, andpersonowingforearningsintens
hispresenceathisrequestbyatleasttwowitnesses. Thewitnesses bereachedareallwithinthejurisdictionofthecourtofthisState
tothedeceased.
shouldbedisinterested. Adevisetoawitnessisvoidunlessthewill
Thecollectionofclaimssosentmaybeenjoined.
andmaybe contested, in
legatees, inthecounty (orprobate)court,
chancery, within oneyear after its probate. Willsorauthenticated
copies, affectingestatewithinthis State, dulyproved outsideofthis
State,inaccordancewiththelawoftheStatewhereexecuted,accompaniedwithacertificateoftheproperofficer ofthat fact, may be
d here.
e d Willsexecutedandpublished
r o c e r y a m e outofthis
t a t S
beadmittedtoprobateinanycountyinthisStatewherethetestator
hadlandsorpersonalpropertyuponlikeproofasifexecutedandpublishedhere,whetherornotthewillhasbeen firstprobatedinanother
state or county. All original wills, after being flled, must remain
thirdofwhichmaybeinvestedinthebankbullding. Allrealesta
Banks, Private. Actof1907 (ineffectDec.1,1907),regia
privatebankingappliestoanyonewhomayusetheword a
Inhisbusiness. Capitalmustbeatleast$10,000,notmorethan100
beotherwisedulyattestedbytwowitnesses exclusiveofsuchperson.
Wherethesubscribing witnessesaredead, secondaryevidenceofthe
executionisadmissible. Thewillis proved, afternoticetoheirsand
mustbeheldinnameofbank. BankcannotInvestinreal
exceptinrealizingondoubtfulclaim. Statementmustbefle
stateauditorshowingcopyofarticlesofpartnershipacknow
(oneofthepartnerstoberesidentofthestate);location
Intheofficeofthecounty(orprobate)court, Childrenmaybedisinherited.
ofcapital,networthofpartnerstobedoublecapitalpaldir.
ofofficers. Listofofficersmustbepostedinbank. Tworep
resourcesandliabilitiesarecalledforeachyearbyauditor
llshedinlocal
newspaper. Examination ofbankmade
al
a
ns
nt
ub
ae
lf
li
yl
beydaiundciotuonrt.yrS
e'
ns
to
of
ff
pi
rcoep.ertDyeh
eidintrusta
mu
et
ca
ot
re
dm
er
positorshave
assets. Jurisdiction over all persons Interestedis obtain
process served on officerincharge.
S Y N O P S I S OF
T H E L A W S OF
INDIANA
R E L A T I N G TO
BANKING A N D COMMERCIAL USAGES
Prepared and Revised byMessrs. PICKENS, MOORES, DAVIDSON
A N D PICKENS, Attorneys at Law, Indianapolis.
(SeeCardinAttorneys' List.)
A c k n o w l e d g m e n t s . Allconveyancesofrealestate, exceptleases
f o r l e s s t h a n three years, m u s t b e i n w r i t i n g , a n d a c k n o w l e d g e d a n d
recorded, or they will not bind third parties. Within the State
acknowledgments may betakenbeforeajudge orclerk ofacourtof
record, justice of thepeace, auditor recorder, notairypublic,member
ofthe general assembly, or mayor ofa city, a n d o n otherstates and
tertitores before t h e like officers,
or
a commissioner of deeds for
I n a n y foreigncountry, before a minister, charged'affaires
or consul of the United States Ifsuch acknowledgment or proof
Indiatia
isinsomeotherthantheEnglishlanguage,
orisnotattestedbysuch
official s e a l , P m u s t b e accompanied by the certificateof an officer
e
h
t
o
5
United
States,
tof theeffect
that
it 1 dulyexecutedaccording
to the laws of such foreign country, and that the officer has legal
authoritytocertify totheprooforacknowledgment andthemeaning
ofhiscertificate, ifmade in a foreign language Wifemust join in
deeds and mortgages ofhusband's lands in orderseparateacknowlto carry her inchoateonethird interest inhusband's lands. No
edgment of wife necessary in order to convey her inchoate interest
inhusband'slands, althoughshe must acknowledge. The certifying
officer shouldstate the date when his commission expires.
Actions. Thedistinctionsbetweenlawandequityareabolished.
Thestatuteprovidesbutoneformofaction. Pleadings
governed
Banks,Savings. Governedbyageneralstatutewhichrerse
InminutedetalltheInvestmentsandconductofbusiness.Se
banksmaypurchase,hold,andconveyrealestateforthe!
purposes,andnoneother:
fstatemortgagedtoitingooForthelocationofbanking
dfaithformin bankorpe
anddecreesonbehalfofthebank,orpurchasedtoprevesta
Itshallhavepurchasedamortgage,realestatetakenupanj
claims held by the bank.
Banks,State.
Rn
et
gs
ul
gr
en
ne
r
a
ii
nn
gl
w
.wbaThes
d
i
r
t
h
e
st
a
t
e
a
p
p
o
i
aa
stf
tet
adh
tbe
eyb
baa
a
ea
rn
al
lb
bahananklk
gva
le
op
d
i
r
e
c
t
o
r
o
r
o
t
h
e
r
o
f
f
i
c
e
r
o
n
k
,
d
s
l
h
a
owertoa
8thoroughexaminationintoalltheandshallhand
s
o,toexamineanyoftheofficersandagentsthereofoncath
examinerreportsindetailtheconditionofthebankfrom
time. Thestatebanksmust maketonofthebankeret
year, verifiedby the president, orothermanagingarz
reportsmustexhibittheresourcesand
thec
nessonanypastdaytobebytheauditorspecißed. The
requiredmustbepublishedinanewspaperwherethebaz
thenizcre
lished, or,if thereisno newspaperintheplace.
lishednearest thereto In the s a m e county oranadjathiasS
Theauditormayrequirespecialreportsfromany barkW
I
nhisjudgment.Itshallbenecessaryonorderto th
Itscondition. Anybankfallingtomakesuchreptomakeand
ortsha
a
penaltyof$100foreachdaythatitdelays
thesame.
BillsofExchangeandPromissoryNotes. Nograce
upon
pa
Damages
for protest on
upsState,butwithintheUnionanypersonatany
uponanypersonatanyplacewithouttheUnitedStates
(SeeNegotiable Instruments.)
ChattelMortgages. Chattelmortgageon
personal pret
Inthehandsofthemortgagorwithpowertoseilmusts
themoneyreceivedbythesalebeappliedtothepa
mortgagedebt,andshouldbedrawnintheformofansi
ofsale:mustbeacknowledgedintheintheones
theacknowledgmentofdeedsinthesandmanntenda
andrecordedwithin
assigntion
bycode. Non-residentplaintiffsmustgivebondtosecurecreationandinthecountywherethemortar
1
B A N K I N G
A N D
C O M M E R C I A L
1395
deliveredtothemortgagee,shallnotbevalidagainstanyotherperson
thanthepartiesthereto, unlesssuchmortgageshallbeacknowledged.
a n d recorded within ten days after the execution thereof. Where
delivery of the chattels to the mortgagee occursat the time, record
right andauthority t o d o ortransact businessinthis State, orhold
real property or liens thereon, andall contracts between such corporations a n d citizens a n d residents of this State m a d e after the
isunnecessary. Amortgageeofhouseholdgoodscannotsellmortgagedpropertyexcept underajudicial proceeding in thecircuit or
superior court. For certain restrictions on the lending of money
passage of this act shall be rendered vold, asinfavorofsuch cor-
porations, butenforceable by such citizenathiselection.
such corporationsmaybeauthorizedtodobusiness, orholdtitles to,
or llens on, real estatein this State. By the act of 1901, foreign
Conveyances. Allconveyances,mortgagesorleasesformorethan
corporationsarerequiredtodesignateanagentinthis Stateupon
threeyearsshallbe recorded andtakepriorityaccording to time of
w h o m legal process m a y be served; to have an office where proper
filing as against goodfaithpurchaser, lessee ormortgagee. Lands in
booksofaccountmaybekept. Byactof1907foreigncorporations
this State m a y be taken, held, conveyed, devised, or passed by
desiring admission to state must m a k e verined statement to Secretaryof State showing: articles of Incorporation, business intended
topursue, capitalstock, proportionofitsbusiness carriedoninthis
descent, by o r f r o m a n y citizen o f t h e United States;or b y o r f r o m
a n y allen (see Allens), withsomeprovidedexceptionsas todescont
ordevise. Landswhichmayhavecomeby descentor purchase to
State,amountpaldinoncapitalstock, andanswers toother Interpropounded
thewifeofanalien,maybeheld,conveyed,devisedandpassedbydescentbyandfromher. notwithstanding
mon, andnotinjointtenancy, unlessitshall be expressed therein
that thegrantees or devisees shallhold the samein joint tenancy
andtothesurvivorofthem, oritshallmanifestlyappearfromtenor
ofinstrument,thatitwasintendedtocreateanestateinJointtenancy.
The pro-
visions of the foregoing section are made conditions upon which
o n m o r t g a g e of household goods, see the statutes.
thefactof herresidence
withherhusbandinaforeignstate orcountry.
Except bona-fide leases f o r a t e r m n o t exceeding threeyears, conveyanceoflands, or of a n y interest therein, m u s t b e b y d e e d , subscribed,andacknowledgedbythegrantororbyhisattorneyinfact.
T h e J o i n t d e e d o f a h u s b a n d a n d w i f e i s sufficient to pass the lands
o f t h e wife. E x c e p t i n cases of mortgages, conveyances in trust.
conveyances to husband a n d wife, a n d cases of estates vested in
executors ortrustees,assuch, a n d s o h e l d b y t h e m i n j o i n t t e n a n c y .
allconveyancesanddevisesoflands, orofanyInteresttherein, m a d e
t o t w o o r more persons, shallbe construed to createestatesin com-
L A W S - INDIANA
rogatories
of State, and shall pay
f
eeof$25onfirst$10,0by
00othe
fassSecretary
etsusedin
Indiana,$10.00foreach
additional $10,000, Annual report mustbefiledin January and fee
o f $ 1 paid. Foreign corporations may not hold real estate except
such as may be necessary for proper carrying on of its legitimate
business.
Courts. Terms and Jurisdiction. The circuit courtisthe only
court oforiginal general civil jurisdictionin theState. Ithas full
probatepowers, exceptinMarion County, wherethereisaseparate
probate court.
1
Superior courts have been established in m a n y
countles. Justice'sjurisdiction, $200. Party mayconfessjudgment
beforeajusticeofthepeacefor$300. Whenawrittenobligationfor
moneybindsmorethanonepartytheJusticeofthepeacemay Issue
process toconstableofanycountyintheStatewhereparty resides.
ThesupremecourthasnooriginalJurisdiction. ItsitsatIndianapolis.
Adeedofrelease orquit-claim shall passallthe estatewhich the
grantorcould convey by a deedofbargain and sale. Ifitbe the
Intentionof the grantor to convey any lesser estateIt mustbe so
Theappellatecourthas final jurisdictionin m a n y cases.
D a y s o f G r a c e a r e nolonger recognized.
heirsanddevisees answerablethereononlytotheextentofproperty
descended or devised to them. A n y conveyanceoflandworded-
notarypubile, mayor, orrecorderofacity,clerkofacourtofrecord,
orcommissioner appointed by the court to take depositions. Persontakingdepositionmustnotbeofkintoeltherpartyorinterested
outside ofthe United States they shall
action. W h e n
expressedin the deed. Liability on lineal a n d collateral warranties
isexpresslyabolished; a c o v e n a n t o r a g r e e m e n t o f a n y personleaves
Depositions.
Depositionsmaybe takenanywhereinthe United
Stateswithoutacommission, beforeanyjudge, justice of the peace
D.(heredeor"A.
scribet
hequit-claime
premises) betakenpursuanttoanderofthecourtunder commission, with
"A.B.conveysandwarrantstoC.
B.
forthesum
(hereInserttheconsideration),"
toC. D. (heredescribethe premises) forthe s u m o f ( h e r e Insert the
consideration),"-thesamebeingdated,anddulysignedandacknowledgedbythegrantor,-shall,in t h e o n e c a s e , b e a c o n v e y a n c e i n f e e
simple to thegrantee, his heirs andassigns, with covenantfromthe
grantorforhimselfandhisheirsandpersonalrepresentativesthat
heislawfully seized ofthe premises, has good rightto convey the
same,andguaranteesthequletpossession thereof, thatthesameare
such reasonable noticeofthe timeand place oftakingthe sameas
thecourtshallrequire,andtheyshallbecertifiedand returnedby
the commissioner in such m a n n e r a s the court shalldirect. Notice
o f t h e taking of thedeposition should be served u p o n the adverse
partyorhisattorney,specifyingthecause, thecourtortribunalof
trial, thetimeand place oftaking,andthenames ofthewitnesses.
freefromallincumbrances, andthathewillwarrantanddefendthe
Reasonable time shall beallowedfor the attorney so served to com-
tothegrantee,hisheirsand assigns. A n y m o r t g a g e o f l a n d s w o r d e d
-"A.B.mortgagesandwarrantstoC.D.(heredescribethepremises)
Ingthe day of service, of the taking, ofand Intervening Sundays.
T h e deponentshallbe first sworn accordingtolaw. He shall then
beexaminedby the party producing him, and thenby theadverse
party,andthenbytheofficer, ifheseecause. The depositionshall
bewrittendown bythe officer, by thedeponent, orby some disin-
title ofthe same against all lawful claims; and shall,in the other
case,bedeemedtobe a goodandsufficientconveyanceinquit-claim
tosecuretherepaymentof(hererecitethesumforwhichthemortgage
Isgranted orthe note or other evidences ofdebt, o r a description
thereof,sought to besecured, alsothedateoftherepayment)"-the
samebeingdatedand dulysignedandacknowledgedbythegrantor
-isasufficient mortgagetothegrantee,hisheirs,assigns, executors
andadministrators, with warranty from the grantorand his legal
representatives of title perfect and unincumberedin the grantor.
Whenadeedpurports toconveyabsolutelyanyestateinlands,but
ismade, or Intended to be made, defeasible by forceofadeed of
defeasance,bondorother Instrumentforthatpurpose, the original
conveyance shall not therebybedefeatedoraffected asagainst any
personotherthanthemakerofthedefeasance,orhisheirsordevisees,
or persons having actual notice thereof, unless the Instrument of
defeasanceshallhavebeen recorded, according tolaw, withinninety
daysafterthedateofsalddeed. Every conveyanceormortgageof
lands, orofany interest therein,andeveryleaseformorethanthree
years,shallbedeemedfraudulentandvoldasagainstanysubsequent
purchaser,lesseeor mortgagee in goodfaithandforavaluableconsideration,unlessrecordedintherecorder'sofficeofthecountywhere
s u c h l a n d s are situated.
(See Acknowledgments, Married Women.)
Corporations. DomesticCorporations. Corporationsarecreated
onlyundergeneral statutes. This isdone by means of articles of
association,fliedwiththesecretaryof state,andtherecorderorclerk
ofthecounty,asprovidedbystatute. Theliabilityofstockholders
variesaccordingtothenatureofthecorporationinquestionandthe
lawunderwhichitwas organized. Inthecorporationswhichwere
InexistenceNovember1, 1851, andwhichacceptedthetermsofthe
act ofMarch 6, 1883, stockholders are liable, In caseof Insolvency.
municatewiththeclient,andfortraveltotheplaceoftaking,exclud-
terestedperson,inthepresenceandunderthedirectionoftheofficer,
andafter the s a m e has been carefully read shallbe subscribed by
him. Thefollowingfactsshallbestatedinacertificatetobeannexed
by the officer: 1. That thedeponentwas sworn accordingtolaw.
2.Bywhomthedepositionwaswritten,andifwrittenby deponent
orsomedisinterestedperson, thatitwaswritteninthepresenceand
under the direction of the officer. 3. Whether the adverse party
attended. 4. The time a n d place of taking, a n d the officer shall
sign andattestthecertificate,andsealthesame,ifhehaveasealof
office. Ifhe have noseal, his certificate shall be authenticated by
thecertificateandsealofthe clerk or prothonotary ofany courtof
recordofthe county in which the officer exercises thedutles ofhis
office. The officer taking the deposition shall seal the samein a
sufficientenvelopeandhimselfpost, orexpress, ordeliverthe same
tothe clerk ofthe courtinwhich theactionispending, endorsing
onthe envelope the names of the parties and of the court andof
thewitnesseswhosedepositionsare enclosed. Adjournmentsmaybe
hadfrom day to day after the deposition has beenbegun, and for
longer periods, upon written consent ofthe parties, which written
consentmust be attached to the deposition. Adjournments should
benotedattheplaceinthedepositionwhentheyoccur. Anarrative
form m a y be used. A witness Identifying a written instrument
shouldattachittohisdeposition,makingitapartofhisanswer.
Descent. The real and personal property ofany intestate shall
descend to his or her children equally; and posthumous children
Inherit equallywith those born before the death of the ancestor.
forasumatleastequal toamountofstockheldattimethedebt
Children of deceased children take the share which would have
descended to the father or mother; and grandchildren, a n d more
remotedescendants, andotherrelatives, linealandcollateral,inherit
thereisliabilityinsomecasesforlaborand services ofemployes.
Sharesofcapitalstockinaprivatecorporationaresubjecttoattachment. Annualreports mustbefiledinJunewiththe Secretary of
b y t h e same rule, excepting thatifthe heirs are allgrandchildren
they inherit equally. Where there are no heirs as aforesald, onehalfoftheestategoestothefatherand motherasjointtenants, or
wascontracted. In most corporations, stockholders who have pald
fortheirstock are not llable for debts ofthe company. However,
State.
Foreign Corporations. Agents of foreign corporations, before
enteringuponthedutiesoftheiragencyinthis State,shalldeposit
intheclerk'sofficeofthecounty,wheretheyproposedoingbusiness,
thepowerofattorney,orappointment,underwhichtheyact. They
shallalsofileadulyauthenticatedorder,resolutionorothersufficient
authorityofthe board ofdirectors authorizing citizens or residents
ofthisStatehavingademand against such corporationarising out
ofanytransactioninthis Statewith such agents to maintainan
actioninrespecttothesameinanycourtofthis Stateofcompetent
Jurisdiction,andauthorizingserviceofprocess on such agent, and
thatsuchserviceshallauthorizejudgmentandallotherproceedings
against such corporation. By act of 1913, foreign corporations
must filewith auditor of State certifled copy of vote of directors
consentingtoacceptserviceofsummonsonauditorofStateassummousoncorporation. Ifforeign corporationhas no agentwithin|
State,summonsmaybeservedonAuditorofState,whoshallnotify
corporation. Contracts madebysuchagentsshallnotbe enforced
inany court ofthis State untilthere has been a compliance with
theaboveprovisions. Failure ofaforeign corporation to comply
withtheseprovisionswillnotbar butwillabatesuchaction. Any
personwho shall, directly or indirectly receive or transmit money
or property to or for such corporation, or make any contract, or
transact any business for or on account of any such corporation,
to thesurvivor, a n d the otherhalf to the brothers a n d sisters, a n d
to thedescendants of such as are dead, as tenantsin c o m m o n . If
there be neither father nor mother, the brothers and sisters, a n d
the other descendants, take the estate as tenants incommon; or,
percontra, the fatherand motherasjoint tenants ofthe survivor.
Kindred ofthehalf-bloodinherit equally with those of the wholebloodinpropertypurchasedbytheancestor;otherwise,astoproperty
acquired by gift, devise, or descent. Illegitimate children Inherit
from the mother same asif they were legitimate, and vice versa.
Tenancy by the curtesy and dower are abolished, and widows take
one-thirdoftherealestateinfeesimple,unlessthepropertyisworth
over$10,000,inwhichcase,asagainstcreditors,shetakesone-fourth
only;andwherethe realestateisworth over $20.000, one-fifth only
as against creditors, but asagainst other heirs she takes one-third
in fee simple, regardless of value, except where thereis but one
child,inwhichcaseeachInheritsone-half. Asecondorsubsequent
wife,however, takesonlyalifeestateinherhusband'slands,Ifthere
be a child or children by a previous marriage, and none by such
widow. Otherspecial provisions of thestatute are too extensive to
set out. T h e estate of a person dying intestate without kindred
capableofinheritingwillescheattotheStateforthesupportofthe
commonschools. (SeeTaxes.)
D o w e r . (SeeMarriedWomen.)
Executions may issue atany time within ten years afterjudg-
m e n t a n d arereturnablein180 days.
Fromacourt
ofrecordmay
shallbedeemed agent. This provisiondoes not apply, however, Issue to anycountyintheState. Area llen on personal
property
topersonsactingasagentsforaspecialortemporarypurposeorfor withinthecounty from the time they areplacedinhands ofofficer.
purposes not within the ordinary business, nor doesit apply to T h e liens upon personal property attachin the order in which the
attorneysatlaw. Anypersonactingasagentofaforeigncorpora- officer receives them. Whenlevyis upon real estate the dates of
tion,whoshallneglectorrefusetocomplywiththe foregoingpro- theJudgmentcontrol the rightto participatein the proceeds, and
visions, Isllabletoafineinanysumnotlessthan$50. In1879It
theymustbeappliedaccordingtotheirpriority. Personal
wasenactedthat: Every foreigncorporationnowdoingortrans- I taken in execution may be left with execution defendantproperty
by the
acting,orthat shallhereafterdoortransact, anybusinessinthis givingtotheofficerofadeliverybondwith sufficientsurety:debtor
State,oracquireanyright,titleorinterestinorilenuponrealestate may, by giving sufficientfreehold sureties, haveastay ofexecution
inthisState, that shall transferorcause to be transferredfromany
$100,forsixmonths. Where the sumisless
courtofthisStatetoanycourtoftheUnitedStates,savebyregular onanysumexceeding
than$100, thestayisnotsolong, varyingwithamountofjudgment.
courseofappealaftertrialintheStatecourts,anyactioncommenced Lands
sold under execution may be redeemed within one yearby
byoragainstsuchcorporationinanycourtofthisStatebyoragainst the
owner, mortgagee or person having alien thereon, the owner
anycitizenorresident thereof:or thatshallcommenceinanycourt
the redemptionyear andbeingliablefor
ofthe United StatesInthis State, onany contract madein this retainingpossessionduring
reasonable
rentsandprofitsincaseoffallure foredeem.
l
i
a
b
i
l
i
t
y
accrued
therein,
against
State, or
any suit oraction
any
citizenorresidentofthe Stateof Indiana,shallthereby forfeltall
Exemptions. Property up to$600is exempt wheredebtorisa
1
residenthouseholder. Residenthouseholderis entitled toexemption
;
BANKING AND COMMERCIAL LAWS-INDIANA
1396
regardtoherseparatepersonalestatebusiness,labor,orservice,and
herseparateestate,realandpersonal,beliabletherefor,thesameasa
aswellwhen intransitwithhisfamilyand propertyaswhenper- femmesole;
and herhusbandisnotliableforsuchdebts,norfor
manently settled. The debtor must file a schedule of all of his
created bythewifeforimprovementofherseparate
property,and selecttheproperty claimed, whichisthenappraised. indebtedness
realestate. Shecan
makeleasesofrealestatefortermsofthree
Pension
money
in
transitto
Contract waiving exemption isvold.pensionerisexempt,butwhenreceivedbyhimandinvestedinother yearsorless,andexecutemortgagestosecurepurchasemoney,with
outhusbandJoining.
Sheisboundbycovenantsoftitleinconver
propertyisnomoresothananyotherproperty. Onemonth'swages
Herdeedconveyingherrealestate.
ancesofherseparaterealestate.
alsoexempt ifthedebtorisstill employed.
herhusbandnotjoining,isabsolutelyvoid. Shemaysueasafemme
Fraud. Assignments, in writing or otherwise, of any property soleforanydamagetoherpersonorcharacter. Sheisboundt
madeorsufferedwithintenttohinder,ordefraudarevoidastothe likemannerasprincipalonherofficialbond. Shecannotenterinto
personsdefrauded. The questionoffraudulent intentisa question anycontractofsuretyship, andsuchcontractastoher,iswholly
vold;andthereforeamortgageonherseparatepropertyforadebt
offact.Frauds-Statuteof. Thefollowingcontracts,ifenforcibleincourt, forwhichsheismeresuretyindorser,orguarantor,isvoid:but
mustbeinwritingand signed bythe partytobecharged: 1.To asaninducementtohercontract,shemakesaswornstatementtha:
charge an executor or administrator, upon any special promise, to contractormortgageisforherownbenefit,inrespecttoherseparate
estate,sheisestoppedfromalleginghersuretyshipasagainstany
ep gu of
a em
d
s n2.aTo
, chargeany
nosrep
yn
a nsoout
.
hitsato
aown
tanswer
sr ee wforthe
specialpromise,
debt, default, ormis- onehaving no knowledgethat thecontractisoneof suretyship.
carriageofanother. 3.Tochargeanyperson, uponanyagreement Sheisentitledtoholdasexemptfromexecutionherwearingappare
Prepe
orpromise, made in consideration of marriage. 4. Uponany con- articlesofpersonaladornmentpurchasedbyherselftotheamount
tractforthesaleofland(exceptloannotexceedingtheterm ofthree of$200invalue,alljewelry,ornaments,books,etc.,whichmayhave
years). 5. Upon any agreement not to be performed within one beengivenheras presents;andotherpropertytotheamountof
exceptasagainstindebtednessforthepurchasemoneythere
Sale ofgoods exceeding $50in $300,Awidowtakesone-thirdofherdeceasedhusband'srealestate
yearfromthe
making
tl
hereofor
.a 6.
Ac
, unleses part
u payment
n beo made.
p 7. U
partv delivery
court
anyrepresentation
made concerningthecharacter,
conduct, credit, Infee,andfreefromalldemandsofcreditors,wheretheestatedoes
fnot
or. exceed $10,000; one-fourth, ifunder$20,000,andone-fifth,
g
u
a
rd
ability,tradeordealingsofanyotherperson.
abovethat amount. Shealso takesachild'sinterestintheper
Garnishmentisaremedyin sonaltywherethenumberofchildrendoesnotexceedtwo,andwhere
Garnishment.
(See
Attachment.)
aldofattachment. Uponanypersonalactionarisingoutofcontract therearemorethantwoherinterestshallnotbelessthanone-third
Ae
anyperson may be summoned asa garnishee defendant upon an ofthewholeofpersonaltyafterpaymentofdebts,andinallcases
affidavit that official has good reason to belleve that any person takes $500 withoutaccounting, andmayoccupythedwellingand
exec
namedhaspropertyofthedefendantin hispossessionorunderhis
Buttheone
control, orthatheisindebtedto thedefendant, orhas control or fortyacresofherhusband'slandforayear,rentfree.
agencyofmoney,property, credits, oreffects;thathehasanyshare thirdofherrealestatewhichthewidowtakesinfee,cannot,upon
hermarryingagain,beeffectivelyconveyedormortgagedbyher,if
orinterest inthestock ofany association or corporation, and all therebeachildorchildren,ortheirdescendants,alivebytheprevious
moneyorpropertyinthehandsofthegarnisheedefendantisbound marriage. Realestatewhichhusbandandwifeholdbytitlemade
fromthetimethesummons isserved upon him. Resident house- tothemashusbandandwife,isheldasanestatebyentirety;itcan
holders are entitled to an exemption of $600in garnishment pro- notbetakenforthedebtofeither;isnotsubjecttothelienofa
ceedings,asinallothercases. Wagesofnon-residents,totheamount
of$25, and ofresident householders tothe extent ofone month's judgmentagainsteither,exceptincaseofthedeathofeitherorupon
divorcegranted, whentheestateisdestroyedandbecomessubjec
wages,areexemptfromexecutionsolongasthedefendant remains tolevyandsale;andamortgagethereofbythembothforadebt
Indianaclaims
cannotlegallybe
T
intheemployofthegarnishee.sentortakenout ofthe Stateforprosecution, and suits Instituted ofthehusbandhasnolegalvalidity.
elsewherein violationofthis prohibitionmay be enjoined andthe
Mortgages.
e
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.
s
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S
(
Instruments aredefinedbyChapter63oftheActs 3
offenderbecriminallyprosecuted.
of1913. Section1providesthataninstrumenttobenegotiablemust
Holidays. (See Bills of Exchange and Promissory Notes.)
. Itmustbeinwritingandsignedbythemakerordrawer.
1
:
Husband and Wife. (See Married Women.)
conformtothefollowingrequirements
2. Mustcontainanunconditional promiseorordertopayace
Inheritance Tax. (SeeTaxes.)
Interest. Thelegalrateis6percent,butinterestmaybetaken
3. Mustbepayableondemand,
oratafixedordeterminable
Inadvance. Noagreementto payahigherrateisvalidunlessthe tainsumin
money.
samebeinwriting,and insuchcaseitisnotlawfulto contractfor
morethan8 percent. Whenagreaterrateis contracted for,the f
u
t
u
r
e
t
i
m
e
.
4
.
.
5
r
e
a
e
b
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o
e
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r
o
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l
b
a
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p
e
b
t
s
u
M
Wheretheinstrumentisaddressedtoadrawee,hemustbe
contractisvoldastoallinterestinexcessof6percent, isusurious namedorotherwiseindicatedthereinwithreasonablecertainty.
andillegal,andtheexcessmayberecoupedbythedebtorwhenever
Itsnegotiability isnot affectedbyaprovisionwhichauthorizes
Ithasbeenreservedorpaidbeforethebringingofthesult. Interest the
saleofcollateralsecuritiesincasetheinstrumentisnotpaidat
onjudgments runsfromthedateofthe verdictorfinding, atthe maturity,
orauthorizesaconfession ofjudgmentiftheinstrument
ratespecifiedintheoriginalcontract, notexceeding6percent,and benotpaidatmaturity,orwaivesthebenefitofanylawintendedfor
ifnocontracthasbeenmade6percentisallowed.
theadvantage oftheobligor,orgivestheholderanelectiontorequire
Judgmentsofcourtsofrecordarealienuponallrealestateof
tobedoneinlieuofthepaymentofmoney,
Tochargeindorsernoticeofnon-paymentmustbegiventohimat
defendant within the county for ten years. Judgment may be something
obtainedatthefirsttermofthecourt,afterprocesshasbeenserved
ondebtortendayspriortothefirstdaythereof. JudgmentinJustice once,unlesswaivedbyhim.
Everynegotiable
instrument ispayableatthetimefixedtherei
WheredayofmaturityfallsonSundayoraholiday.
courtbecomesalienonrealestateof Judgmentdefendantfromtime
Acertified instrumentispayableonnextsucceedingbusinessday. Instruments
offilingatranscriptinofficeoftheclerkofcircuitcourt.
withoutgrace.
copyofanyjudgmentrendered bythecircuitcourt ofthe United payableonSaturdayaretobepresentedforpaymentonnextsucceed
ingbusinessday,exceptthatdemandinstruments maybepresented
Statesfordistrict ofIndianamay befiled withthecountyclerk.
Legal Holidaysastocommercialpaperareasfollows: Thefirst forpaymentbeforenoonSaturdaywhenthatentiredayisnotaholidayInanycasenotprovidedforintheactthelawmerchantgoverns
dayoftheweek, commonlycalled Sunday;the 1st dayofJanuary;
Actdoesnotapplytonegotiableinstrumentsmadeanddelivered
the4thdayofJuly;the25thdayof December; anydayappointed
bythepresidentorgovernorforpublicfastingorthanksgiving; 12th andalllawsinconflictarerepealed.
dayofFebruary: 22ddayofFebruary; 30thdayofMay; firstMoneo
cfrneaa
nrtooacffeech
resotafted)rn
,ed,la
mustbeexecutedandacknowledged
PowerofAttorney
leyste
atv
e,o
trt
eal
eca
ord
dayofSeptember; 12thdayofOctober; andanyelectionday; when beforeApril,1913.
anyholiday(otherthan Sunday) comeson SundaytheMondaynext
succeeding shallbethelegal holiday; Saturday afternoonisa legal
half-holidayinthecity ofIndianapolisandmaybemadesobyact thesamemannerthatdeedsaremade.
Thestatutorydamagesonsuchprotestare5percent
ProbateLaw.
(SeeAdministrationofEstates.)
ofbankersinothercitiesofover35,000population.
ontheprincipalofabillofexchange,ifdrawnornegotiatedwith
Liens. Liensare granted by statute to attorneys; to persons thisState.uponanyperson,atanyplaceoutofthisState,butwithin
holdingclaimsagainstwatercraftonaccountofsuppliesfurnishedor theUnited
Protest. States,and10percentifuponanyperson,atanyplace
workdone;alsofordemandsfordamagesarisingoutoffreightcontracts,orforwillfulnessornegligenceofthemaster,owner, oragent,
Whenany personalpropertyiswrongfullytakenof
oroutofanycontractrelatingtotransportation,andforinjuriesto unlawfully detained,
Stao
tr
e,s.iftaken onexecutionorattachment.
personsorproperty;alsotoemployesofanycorporationasagainst withouttheUnited
claimedbyathirdparty,theownerorclaimantmaybringanaction
any ofits corporate property or earnings forlabor done; also to for
thereof. He may claim immediatedeliveryupon
p
o
s
s
e
s
s
i
o
n
Replevin.
keepersofliverystablesandallpersonsengagedinfeedingstock,for affidavit therefor, whereuponthesherifftakespossessionofthe
thefeedandcarebestoweduponthesame;alsotocontractors,sub- property,andifadeliverybondisgivenonbehalfofthedefendant
contractors, mechanics, journeymen, laborers, and all persons per- withintwenty-fourhours,thepropertyisreturnedtohim,otherwise
forminglabororfurnishingmaterialormachineryforerecting,labor- theplaintiffmaygivebondandtaketheproperty;fallingtodoso
Ing, repairing or removing any house, mill, manufactory or other Itisreturnedtothedefendant. Theplaintiffhastwenty-fourhours
building,bridge,reservoir,systemofwater-works,orotherstructure, In which to file bond. Justicesofthepeacehavejurisdictionin
knownasamechanic'slien;alsotobaileesandtradesmenfortheir replevin suitsinvolvingpropertyworth$200orless. Procedureis
validandreasonablechargesintheconstruction,repair,oralteration samebeforejusticeofthepeace,exceptthattheplaintiffmustfle
ofanyarticleofvalue;alsototheballeeorkeeperofpersonalproperty bondinallsuchcases. Replevinmayalsobehadwithoutbond,by
foranyfeed orcare bestowed byhimuponsuch property; alsoto allowingdefendanttoretainpossessionofpropertypendingsult
forwarding and commission merchants on goods which may have
remainedinstoreforoneyearormore. Personsstoring, furnishing
Taxes. State,county,township,municipal,school,androadtares
supplies, orrepairinganautomobile orgarageownershavelien on attachasalienonrealestateonMarch1stofeachyear,andpenalties
automobilewhichcanbeforeclosed within oneyearfromfailureof attachonfirst
Mondayin Mayinthenextyear. One-halfofall
Suits. (SeeActions.)
ownerto pay charges. Judgments rendered in any county inthe taxesmaybepaidwithoutpenalty,ifpaidbeforefirstMondayof
Stateare a lienuponthereal estatesituatedinsuch countyfora
May;otherhalf,ifpaidbeforefirstMondayofNovember. Salesof
periodoftenyearsfromtherenditionthereof,andjudgmentsrendered realestatefortaxesareheldonthesecondMondayofFebruary,and
inthefederalcourtsarealienuponanyrealestateinthe Statefor all lands onwhichtaxesaredelinquentfortwoyearsareoffered.
thesame period. Provisionis made by statute, however, for the Ownerhastwoyearsinwhichtoredeem,bypayingtheamountset
filinginthecountywherethe realestateissituatedofatranscript forthinthecertificateofpurchase,withallsubsequenttaxespald
ofanyjudgment renderedinthe United States courts. The office and10to25percentuponthewholesum,withlegalInterestfrom
oftheclerkofthecircuitcourtineachcountycontainsapublicrecord
Lands(anroetsyoeltddfeolrionnqeuyeenatr)'
knownasthelispendensrecord,inwhichnoticeofthefilingofcomdelinquency, butthe followingyear'stax
is
s
plaintstoenforceliensarerequiredtoberecorded,andalsoincases
t
a
x
,
g
r
a
d
u
a
t
ed
i
n
h
e
r
i
t
a
n
c
e
U
n
l
e
s
s
so
inamountaccordingtotheamountinvolved,andtherelationofthe
wherereal estateis seized byattachment orexecution.
thedateof
purchaseorpayment.
recordedthebringingofsuitsdoesnotoperateasaconstructivenotice. beneficiariestothedecedent,islevieduponallintangibleortangible
An
LimitationstoSuits. Actionsforinjurytopersonandcharacter, embraced
properofresintheamount
identdecedent,ao
nf
dt
uh
pe
os
na
tl
ae
n.
gibl
eproperofnon-resident
and for statutory penalty or forfeiture, two years; against public decedent. Taxappliesaswelltogiftsmadeinanticipationofdeath
officers relatingtotheirofficial duties, andonpublicimprovement
Wills. Nuncupative wills,wherepropertyofmorethanthevalue
assessments, fiveyears:openaccountsandcontractsnotin writing.
foruse, rentsandprofitsofrealestate,injuriestoanddetentionof of$100isbequeathed,arenotvalld,exceptastothepersonalproperty
andwagesofsoldiersandsailorsinactualservice. Anuncupative
property,recoveryofpersonalpropertyandreliefagainstfrauds,six totakeeffectatthattime.
years; upon promissorynotes, bills ofexchangeand other written willmustbereducedtowritingwithinfifteendaysafteritshallhave
contractsforpaymentofmoney, tenyears; actionsnot limitedby beendeclaredandprovedbytwocompetentwitnesseswhoshallhave
testatorrequest someofthosepresenttobearwitness
statute,fifteenyears;otherwrittencontracts,judgmentsofcourtsof heard theNo
willinwritingisvalidunlesssignedinthepresenceof
record and realactions, twentyyears. Revivor: partpayment or twoormorewitnessesbythetestator,orbysomeoneforhiminhis
newpromiseinwriting. Exceptinfavorofsureties,thestatuteof presence,withhis consent,andattestedandsubscribedbytwoor
limitationdoesnotrunagainstthe State.
Married Womencontroltheirreal andpersonalproperty. The morewitnessesathisrequest,andinhispresenceandthatofeach
husbandisliableforthe wife's debts contracted beforemarriageto
other. .
o
t
e
r
h
g
a
i
r
m
n
o
d
v
s
e
c
b
g
a
i
r
m
e
o
f
b
d
a
m
l
i
W
theextentofthepersonalpropertyhemayreceivefromher,andno
further, andherlandsareliable forsuch Indebtedness. Amarried
womanmaydeviseherseparateestate;maysellandtransferherseparatepersonalproperty: carryonanybusiness, labor,orservice, and
receivetheearnings accruingtherefrom; enterinto anycontractin
B A N K I N G
A N D
C O M M E R C I A L
L A W S - I O W A
1397
statutory provisions must be consulted for the particulars above
referred to on the subjectofsavings banks.
B a n k s a n d l o a n a n d trust companies m a y obtain power to act as
SYNOPSIS
T H E L A W S
executor, administrator, guardian, receiver, assignee, trustee, or in
other fiduciarycapacity.
OF
B i l l s o f E x c h a n g e . ThenegotiableInstrumentlawrecommended
bytheinterstate commission onuniformity o f l a w h a s beenenacted
OF I O W A
andisnowlawinIowa. (ForGrace, SeeDaysofGrace.) Aprovision
forthepaymentof exchange,inaddition to theamountofprincipal
a n d Interest, does notrenderabill of exchange non-negotiable.
RELATINGTO
BillsofLading. TheuniformBillofLadinglawhasbeenadopted
inIowa.
Collateral Securities. There are special statutory provisions
concerning the pledging of corporate stock, as security; a n d also
BANKING AND COMMERCIAL USAGES
Prepared and Revised by DALE & HARVISON, Attorneys at Law.
DesMoines. (SeeCardInAttorneys' List.)
A c c o u n t s a n d C l a i m s of. Statements of account, for use in
c o u r t o r f o r p r o o f i n the settlement of estates of deceased a n d in
guardianship matters, mustbe itemized and verified. A statement
of"balance," or"goods." or "merchandise" is not sufficient.
Acknowledgments. Allinstrumentsaffectingrealestate,including mortgages, deeds oftrust, powers of attorney relating thereto,
andleases for more than one year, must be acknowledged or the
executionthereofproved, and the instruments mustbe recordedin
the proper office, so asto affect third parties. The sameis also
trueastobillsofsale,absoluteorconditional,andchattelmortgages
relatingtopersonalproperty. Articlesofincorporationmustalsobe
uponthesubjectofsalesofcollateralsbyactionincourtandjudicial
sale. Otherwise the subjectis governed by the common law.
Conditional Sales.
No
sale, contract, or lease wherein the
transferoftitleorownershipofpersonalpropertyismadetodepend
uponany condition,shallbevalidagainstanycreditororpurchaser
ofthe vendee orlessee inactual possession, obtainedin pursuance
thereof, without notice, unless the same be in writing, executed
by the vendor or lessor, acknowledged and recorded the same as
chattel mortgages.
Conveyances. Noparticularformis necessary for conveyances
ormortgages. Thenameoftheparties,thedescriptionoftheproperty,
theconsideration, the date, signature, and acknowledgment, isall
that is necessary: as between the parties they are valid without
beingrecorded. Thewifemustjoinwithherhusbandinconveyances,
a n d aconveyance ofthe homesteadis ofnovalidityunlesshusband
andwifeconcurinandsignthesamejointinstrument. Acorporation
executes conveyances under its corporate seal, except where the
acknowledged a n d recorded. T h e forms of acknowledgment a n d
theofficers,withinandwithouttheState,beforewhom suchacknowledgments m a y b e m a d e a r e prescribed by statute.
corporationhasnotadoptedaseal. Suchconveyancesmustbesigned
inthenameofthe corporation by the officers authorized so to do,
bytheArticlesof Incorporation, orBy-Laws, or by resolutionduly
enteredofrecordintheminutesofthecorporation,anddulyacknowl-
Actions. T h e c o m m o n l a w forms of pleading are not used,
although the c o m m o n l a w forms the basis ofprocedure. Pleading,
practice, a n d procedure are statutory, and accord, in the main,
edged b y s u c h officers, astheactofthecorporation.
withwhatisknownas the reformed, orcodeprocedure.
Administration ofEstates.
Whereanexecutorisnotappointed
by will, adminstration shall be granted:
of the
1. To the
deceased. 2. To thenextofkin. 3. Tocreditors.
4.spouse
Toanyother
personwhom the court mayselect. Claims againstthe estate ofa
deceasedpersonarepayableinthefollowingorder: 1. Debtsentitled
to a preference under the laws of the United States. 2. Public
rates a n d taxes. 3. Claims filed within six months after the first
publication of the notice given by the executors or administrators
of their appointment. 4. All other debts. 5. Legacies and distributive shares.
All claims o f t h e fourth o f t h e above classes not
Gledand allowed, oriffiledand notice thereofnot served within
twelve months from the giving of the notice of appointment are
barred, exceptas to actions againstdecedentpendinginthedistrict
o r s u p r e m e c o u r t a t t h e t i m e o f h i s d e a t h , orunless pecullarcircumstances entitletheclaimant toequitablerelief.
Affidavits. Affidavitsmaybe takenbeforeany personauthorized
If takenwithout the
State of Iowa, the official characterofthe officer administering the
oathshouldbeevidencedin thesamewayastheofficialcharacterof
anofficertakingdepositions. (SeeDepositions.) Affidavits maybe
takenwithin the State for any lawful purpose, of oneunwilling to
voluntarilymakeanaffidavit,byfilingapetitionwithanofficerauthortoadministeroaths in the statewhere taken.
Corporations. Private corporations, sole or aggregate, maybe
formed for any lawful purpose. But there are special statutory
provisions which must be complied with for the organization and
governmentofinsurance, banking,loanandtrust,buildingandloan.
andrailwaycorporations. Inallcases, the articlesofIncorporation
must be acknowledged and recorded, in the manner provided by
law,andapprovedbythesecretaryofstate. Withafewexceptions,
an incorporation fee of $25, plus $10 for each thousand dollars of
capital in excess of $10,000 must be pald, upon the organization
or renewal of a private corporation. The general term of the life
ofaprivatecorporationis twentyyears, renewableforalike term.
Railroads, savings banks, and a few others may last fifty years,
also renewable.
ForeignCorporationsarerequiredtopayasimilarincorporation
fee before doing businessin the State, based, however, upon the
Foreignpublic
propertyofthecorporation,withintheStateofIowa.
service corporations, other than steam railroads, doing business in
Iowa,andholdingcompaniescontrolling thestockofsuchcompanies,
aremadesubjecttomanyofthelawsoflowaaffectingsimilardomestic
corporations.
Courts. TermsandJurisdiction.
Thedistrictcourthasjurisdic-
tionofallactions,civilandequitable, andhas criminalandprobate
Jurisdiction. Superior courts may be established by the vote of
the peopleinany city of 5,000Inhabitants. It hasjurisdiction to
tryallviolationsofcityordinances,andthesamecriminaljurisdiction
Izedtoadministeroaths, whomaycausethepersontocomebefore
asjusticeofthepeacecourts. Ithasjurisdictiontotryanddetermine
civiland criminal appeals a n d civil writs of errorfrom justices of
thepeace, situatedinthetownship where thecourtislocated. Has
thesamejurisdictionasthedistrictcourt to try all suits i n l a w and
equity, except grant divorces, alimony, a n d separate maintenance,
country, one-halfofthestockofwhichisownedorcontrolledbynon-
andithas no probate jurisdiction. Transcripts from superior and
residentallensare prohibited from acquiringtitletoorholdingany
realestateinIowa,butthenon-residentallenwidow,heirs,ordevisees
estate, and are then enforced as judgments of the district court;
Justice's jurisdiction, $100, or, bywritten consent ofparties, $300.
Thesupremecourthasonlyappellatejurisdictionandholdssessions
atDesMoines, January toMay, fromMay toSeptember(lessvaca-
bimandmakeaffidavit. This proceedingisstatutaryandmustconformstrictlytothestatutesofIowa.
Aliens. Non-resident allens or corporations incorporated under
the laws of any foreign country or corporations organized in this
of
anallenornaturalizedcitizenmayholdthesamefortwentyyears,
andifnotsold withinthattime, escheatsto the State. Aliensmay
acquirepropertyofanykindwithinacityortownorlandsnotexcceding320acresorstockinanycorporationforpecuniaryprofitandmay
alienateor devise the same,but this law does not affect personal
property. Allenholdermayacquiretitletothepropertyembraced
Insuchlienbutrealestatesoacquiredmustbesoldwithintenyears
otherwise itwillescheatto the
aftertitleisperfectedinanallen,
State.
Arrest. No person can be Imprisoned fordebt oneithermesne
orfinalprocess, unless Incaseoffraud. Debtors, however, m a y b e
orderedtoappear beforeacourt or record whereinajudgmenthas
beenrendered,andifthedebtorisabouttoleavetheState, orconceal
himself, he may be arrested and compelled to give bond toappear
beforethecourtforexamination,andinthemeantime,notdispose
ofhisproperty.
A s s i g n m e n t s a n d Insolvency.
justice'scourts mustbefiledindistrictcourttocreatealienon real
tion),and from September to December.
Days ofGrace. Every negotiable instrument is payable at the
timefixedthereinwithoutgrace.
Depositions maybetakenwithintheState,onnotice,andwithin
orwithouttheState,oncommission,issuedafter noticeby theclerk
ofthe proper court. W h e n t o be takenon commission, defendant
mayelect. inwriting,dulyserved,tocrossexamineorally; thereupon
plaintiff may also elect in writing to examine orally. Exceptions
mustbefiledwithinthree (3) days,afterthefiling ofthedeposition,
but objections m a y neverless be m a d e on the trialfor competency.
materiality,andrelevancy.
D e s c e n t a n d Distribution of Property. Subject to rights of
dower a n d other charges thereon, a n d burdens imposed duringthe
lifetimeofthedecedent,andintheabsenceofavalidwill, theestate
General assignments notvalld
unlessforbenefitofallcreditors,whenassentofcreditorsispresumed.
of one deceased shalldescendin equal shares to his children. The
Thedebtor must annex to the instrument of assignment a sworn
heirs ofany deceased childshall inheritinsamemanneras though
Inventoryandlistofcreditors; andsuchinstrumentmustbeacknowlsuch child h a d outlived his parents. Iftheintestateleave no issue
edgedandallofthepapersrecordedlikeadeedofrealestate. The
thespouse,
assignmentvestsintheassigneetitletoallpropertyofthedebtor. one-halfofhisestateshallgototheparents,theotherto
no surviving spouse, the whole thereof shall go to his parents
Assigneemustgivebonds,prepareaverifiedInventoryandvaluation. If
ascending
ancestors
through
survivor
them;
a
n
d
s
o
on
or
the
of
file claims within three months. and their issue, ifboth parents be dead. Personal property
andnotify creditors by mall to months
not
after notice published or
Allclaims not filed within three
distributed to the same persons, a n d i n
necessary
debtsis
pay
to
withinsuchextendedtimeasthecourtgrants, notexceedingnine thesameproportionsasthoughitwererealestate.
months.Includingclaimsnotyetdue,cannotbepaiduntilallclaims
Dower. Dower in Iowa is abolished, but the surviving spouse
filedwithinsaldtimearepaid. Anassignmentdoesnotdischarge isentitledtoone-thirdinvalueofallthelegalandequitable
estates
thedebtorfromhisdebtsandliabilities, butonlyentitlescreditors Inrealpropertypossessedbythedeceased spouseatanytimeduring
itemized
equallyinhisestate. Allclaims filedmust be
atoshare
ndswornto.
the marriage, which have not been sold on execution or any other
judicialsale,andtowhichsuch survivorhasmadenorelinquishment
Attachments. Anattachment,auxillarytothemaincase,maybe | ofright. Aspouse,heirordeviseefeloniouslytakingorprocuringthe
suedoutuponanyoneoftwelve(12) statutorygroundsforadebt, takingofthelifeoftheotherspouse,
ordecedent, cannothavedower
whichispastdue:oruponany oneof four (4)statutorygrounds orinheritpowerortakeunderthewillofthedecedent.
(See Limiforadebtoncontract,notyetdue. Abondmustbefiledforthree tations.)
timestheamountclaimed, iftheactionisfoundeduponcontract,
Executions maybestayed,accordingtotheiramount,forninety
otherwise,inasumtobefixedbythecourt,iftheactionisnotfounded
uponcontract. Garnishments may be effected under the writ of daysorsixmonths,withafewspecifiedexceptions,andtheissuanceof
attachment. Special attachmentsare permitted, toattachspecific executionmaybeprevented by filing anappeal bond. Otherwise
personalproperty, ina few prescribedcases.
execution m a y issue immediately after rendition ofjudgment.
Banks. ThebanksorganizedunderthelawsofIowaarerespectSavingsbanksmusthaveaminimumcapitaloffrom$10,000to
Ivelydesignatedassavingsbanksandstatebanks.
$
50.000, according tothepopulationofthecityortowninwhich
eachislocated. Eachsharemustbeoftheparvalueof$100.
The
The
Judgmentisalienonrealtywithinthecountywhererendered, orby
transcript, it m a y b e m a d e a l i e n i n a n y othercounty.
Executions
becomeliensonpersonalpropertyonlyfromthetimeofthelevyand
seizure. Realestateissoldonexecutionsubjecttoredemptionwithin
oneyear, exceptinappealed cases,orwheretheinterestisaleasehold
oftwo years orless. Creditors may redeem from the sale after six
statutoryprovisionsmustbeconsultedconcerningthemannerof
organization,
Personalproperty
monthsandbeforeninemonthsfromdateofsale.
theissuanceofand payment for capital stock, the issold
without redemption.
boardofdirectors,
quorum,votingbyproxy, limitationofdeposits,
andtheInvestment thereof, the loaning offunds, the cash reserve
required, and the dissolution of such banks
Exemptions. Theheadofafamilyisentitledtoahomesteadof
fortyacresorlessoffarmland,orhalfanacreorlessincityortown.
Itsproceeds,wagesofamarriedman,andnumerous
Statebanksmusthaveaminimumcapitaloffrom $25,000 to Pensionmoney.
Itemsofpersonalpropertyareexemptbystatute.
Therearestatutory
$50.000, accordingtothepopulationofthecityortowninwhich
Eachsharemustbeoftheparvalueof$100.
eachislocated.
The
provisionsconcerningthecreationofliensonexemptrealorpersonal
property,andtheassignmentofexemptwages.
1398
BANKING A N D COMMERCIAL L A W S - K A N S A S
Fraud. Inactionsforfraud,heretoforesolelycognizableinacourt
ofchancery,thecauseofactionshallnotbedeemedtohaveaccrued
untilthefraudcomplainedofshallhavebeendiscoveredbytheparty
aggrievedbytheexerciseofduediligence. Inactionsbroughtbya
Judgment creditortoset aside afraudulent conveyanceofproperty
fromonespousetotheotherandtosubjectsaidpropertytoexecution.
eitherhusbandorwifemaybecompelledtotestifyagainsttheother.
Grossfraudispunishableby fineorimprisonment.
Garnishments. (SeeAttachments.)
Husbandand Wife. (See Married Women.)
Interest. Bywritten contract, maximum legal rate, 8 percent.
Judgmentsdraw6percent, orsuchrateasisfixed bythecontract
on whichthe judgment ordecree isrendered, not exceeding 8 per
Open accounts draw 6 per cent after six
cent per annum.
months from date oflast item; money loaned, money due, money
dueonsettlementofaccounts,bearinterestat6percentperannum.
Contractfor morethan 8 percentforfeits allinterest and costs.
Judgmentsin the district and superior courts may be obtained
at first term after sult commenced, if undefended; an equitable
action, except one for foreclosure of mortgage, or mechanic's lien
orfordivorce, istriableatthesecondtermafterthecaseisatissue.
Judgments ofthe district court are liens on real estate owned by
the debtor atthe time ofrendition. Ifthelands lie in any other
county,fromthetimeoffiling thereinanattested copy ofthejudgment. Lien also covers all lands which defendant may acquire
withinten years fromdate ofjudgment, orupon which alevy is
madeaftertenorbeforetwentyyearsfromthedateofthejudgment,
but thislien dates only from the time ofthelevy. Judgments of
superiorcourtsandjusticeofpeacecourtsbecomeliensonrealestate
byfilingtranscript in district court within countywhere obtained,
andbecomeliensinothercountiesinthesamemannerasifrendered
inthedistrictcourt.
Liens. These are mainly created by statute andareenforceable
Inequity. Inafewcases,andunderpeculiarcircumstances,equitable
liens on real estate are established and enforced in equity.
Limitations. Actions, according to their subject matter, have
various periodsoflimitation, fixed bystatute, extendingfromthree
monthstotenyearsafterthecauseofactionaccrued. Actionsupon
judgmentsrendered
courts
ofrecordhavealimitationof
years. Dower rightsinand
mortgages
existing or created prtwenty
ior to
January 1,1885, are barred, unless now properly preserved inthe
recorder's office. Imperfect deeds by executors, administrators,
trustees, orguardiansmadepriorto January 1,1885, are confirmed
infavorofgranteesinpossession.
Married Women mayown intheirown right, realandpersonal
property, and may manage, sell, convey, and devise the sameby
will. Neitherhusband norwifeis liable forthe debts orliabilities
ofthe other incurred before orafter marriage, norare the wages,
earnings, or property ofeither, liableforthe separate debts ofthe
other. Contracts may be made b y a wife, liabilities incurred, and
enforced by or against her, as ifunmarried. Both husband and
wife are liable for the expenses ofthe family, and the education
ofthechildren.
Mortgagesmustbesubscribed andacknowledged bytheparties
creatingthellenandrecordedsameasdeedsareforeclosedbyequitable
action. The wife should join inthe instrument, except mortgages
for purchase money, and mortgages upon non-exempt personal
property. The mortgagor has one year in which to redeem real
estateafterexecutionsale,exceptasstatedunderthesub-title"Executions."' When a mortgage ispaid off, satisfaction thereof mustbe
madeonmarginoftherecord, orbysatisfactionplece, acknowledged
and recorded. Ifno satisfaction isentered withinthirtydaysafter
requestinwriting,themortgageeforfeits$25. (SeeChattelMortgages.)
(See Limitations.)
Notaries. Theseofficersareappointedand commissionedbythe
governor,upon filing a bond and paying the fee required by law.
They have power to administer oaths, take depositions, and the
usualpowerofsuchofficersconcerningpresentation,demand, protest,
and notice ofprotest ofnegotiable commercialpaper.
Partnerships, Limited and Special. Limited and specialpartnershipsarepermitted,butnotfavored. Thestatutesonthissubject
must be strictly complied with. A certificate showing prescribed
details and particulars ofthe partnership must be signed, acknowledged, and filed inthe officeofthe clerk ofthe district court ofthe
countyin whichthe principal place of business issituated, to be
there
recorded
simila
rlyburecorded
in each
county
where
such
partnership
hasand
a place
of
siness. There
must
be an
affid
avit
thattheamountstatedinthecertificatehasbeenactuallycontributed
byeachseparatepartner. Publicationmustbemadeofthecertificate
and affidavit for six weeks in two newspapers in each senatorial
districtin whichthe partnership istotransact business.
Powersof Attorney. Apowerofattorneytoconvey, orinany
manneraffect real estate, must be acknowledged and recorded. Å
revocation ofsuchpowermustbeacknowledgedandrecordedinthe
sameoffice whereintheoriginal powerof attorneyis recorded.
Receivers. In distributing property in the hands ofa receiver
there shall be paid inthe following order: 1.Taxes or debts due
theUnited States: 2.TaxesordebtsduetheState. 3. Debtsowing
to employes forlabor, not exceeding $100.
Records. All Instrumentsconveying or creating llens uponthe
realorpersonalproperty,allconditionalsalesandarticlesofadoption
ofaminorchild, must,afterhavingbeensignedandacknowledged,
berecordedintheofficeoftherecorderofdeedsinthepropercounty
cd
oi
us
n.
tiesUnwherethe
or
property
conveyed
ated, ortheminor
issituareinvalid
c
hil
less so recorded,
such
instruments
asto a
bona fidepurchaser orencumbrancer orasarticles ofadoption.
Redemption. Redemption from asheriff'ssale of real estate,
whether sold under a general or special execution, may be made
byacreditorwhohasalienonthe propertysold, attimeaftersix
monthsfrom date ofsale by paying to the clerk
courtthe
amount provided by statute, being, generally, theofthe
amount ofthe
purchaser's bid, withinterest atthe same ratethatthe judgment
bears. Within the time named creditors may redeem from each
other. Afterninemonths,andwithinoneyearfromthedateofsale
theowneroftherealestatesoldhastheexclusiverighttoredeemfrom
such sale, and, inso doing, the debtor must pay offtheclaims of
judgment creditors, who have made redemptions
as hereinabove
stated, inadditiontotheamountoriginallybid.
Replevin. Inactionsfortherecoveryofpersonalproperty,the
petitionmustbeverified; andifplaintiffdesiresimmediatedelivery
oftheproperty,heshallexecuteabondfordoublethevalueofthe
propertysoughttoberecovered. Thedefendantmaystay all proceedingsandretainthepropertybyexecutingabondtotheplaintiff
with suretiesto be approved bythe clerk.
Sales ofGoodsinBulk. Sales, including exchangeandassignments,ofthewholeormajorpartofastockofgoodsinbulk,ispresumptively fraudulent, unless three (3) days' notice in writing is
previouslymailed toeach creditoroftheseller.
Taxes. Realestateisassessedeveryoddyear; personalproperty
isassessedeveryyear. Allpropertyisassessedatitsactualvalue.
andtaxed attwenty-five (25) percent oftheassessed value. All
roadtaxesandone-halfoftheothertaxesleviedarepayablewithout
interest or penalty before April 1st; the balance ispayable
before October 1st. Delinquenttaxes bearinterestattherateof
1 per cent permonth. Taxesuponrealtyareliensthereon;tas
uponpersonaltyareliensupontheowner'srealty,exceptthehome
stead,andmaybe continued assuchliens,ifthestatuteiscomplied
with,fromyeartoyear. Taxesonpersonaltyareliensonthepersona
propertyofnon-residents,stocksofgoodssoldinbulk,andbuilding
oradditionsmadeaftertheassessmentfortaxationintheoddyean
Personal property maybelevied onandsoldfortaxesbydistres
andsale. Realestateissoldforunpaidtaxes,afternoticebypublics
tion,onthefirstMondayinDecemberofeachyear,subjecttoredemp
tioninthreeyearsfromthedateofsale.
TrustCompanies. Domestictrustcompaniesareorganizedunder
andgovernedbythegeneralcorporationlawsoftheState. Fore
trustcompaniesdoingbusinessinthis Statearegovernedandco
trolled bythe general statutes concerningandrelatingtoforep
corporationsdoingbusinessinIowa. (SeeCorporations.)
TrustDeeds. Theymustbeexecutedandforeclosed,andconsid
eredasmortgages. Thatis,thepowerofsaleonnoticeisabolished.
and theymustbeforeclosed byequitableaction.
Warehouse Receipts. Anyperson,firm,orcorporationdesiring
toissue elevator orwarehousecertificates(orreceipts)mustfile
written declaration with therecorderof deedsinthecountywhere
hisoritselevatororwarehouseissituated,settingforththepartic
larsrequiredbystatute,whichdeclarationmustberecordedbythe
recorder of deeds. Thereafterheoritmayissuecertificatesfor
commoditiesactuallyinsuchelevatororwarehouse,butthecerti
cates must conform tothe statutory provisions. Aregisterof
certificates issued must bekept bythe parties isuingthem. A
violationoftheseprovisions,issuingdoublecertificatesforthesame
property, orsellingorencumberingpropertyincludedinanywar
housereceipt, ismadeacriminaloffense. Thereisalsoacriminal
statuteagainst issuingfalsewarehousereceiptsorcertificates.
Wills. Any person offullageandsound mindmaydisposeof
hispropertybywill,subjecttotherightsofhomesteadandexemp
tion created bylawandthe distributiveshareinhisestategive
bylawto the survivingspouse, exceptsufficienttopayhisdeta
andexpensesofadministration. Wills,tobevalid,mustbewrittes
witnessed bytwo competent witnesses, signed bythetestator,
bysomepersoninhispresenceandbyhisexpressdirection. Sub
scribingwitnesses canderivenobenefitfromawill,unlesstherebe
two competent witnesses besides them. Willsexecutedoutsideof
Iowa, in accordancewiththelawsofthe Statewhereexecutedor
ofthetestator'sdomicile,ifinwritingandsubscribedbythetestat
arevalidin Iowa. Ifprobatedinanyotherstateorcountrythey
shallbeadmittedtoprobateinthisStateontheproductionofacop
ofsuchwill,andoftheoriginalrecordofprobatethereof,authenticated
bythe attestation ofthe clerk ofthecourtinwhichsuchprobe
tionwasmadeorof the probate judge, under seal,iftheyhave
Allwillsmustbeprobatedbeforetheycanbeeffectual.
one.
SYNOPSIS OF
T H E
L A W S
OFKANSAS
RELATING TO
B A N K I N G ANDCOMMERCIAL USAGES
RevisedbyMCCLINTOCK& QUANT,AttorneysatLaw,Topeka.
(SeeCardinAttorneys'List.)
Civilactionsareconductedasrequiredbyacodeof
costsmustbegivenorresidentplainti
Security for (SeeDeeds.)
Acknowledgments.
Non-residentplaintiffs
maydeposit$15inlieuofbondforcosts.
Actions.
procedure.
AdministrationofEstates. Probatecourtsineachcountyhave
Demandsagainsttheestatearedividedinto
mayberequiredtogivebondforcosts.
thefollowing classes: 1. Funeralexpenses. 2.Expensesofthe
lastsickness;wagesofservants;demandsformedicinesandmedical
J
attendanceduringthelastsicknessandexpenseofadministration
urisdictionofestates.
Debts due the State. 4. Judgments renderedagainstthe
deceased inhislifetime;butifsuchjudgmentsareliensuponreal
estate and the estate be insolvent, suchjudgmentsshallbepaid
without referenceto classification,exceptthefirsttwowhichhave
3.
Alldemandswithoutregardtoqualitywhichshall
belegally exhibited againsttheestateinoneyearaftergranting
lettersofadministration. 6. Alldemandsthusexhibitedafterthe
endofoneyearandwithintwoyears.
Demandsnotexhibitedwithin
precedence.
5.
twoyearsarebarred,exceptastoinfants,personsofunsoundmind
orpersonsimprisoned orabsentfromtheUnitedStates,whoshall
have one years aftertheremovaloftheirdisabilities. Foreignexecutors, and administrators with the willannexed,maysellreal
estatein this Stateinaccordancewiththepowercontainedinthe
will,unlessadministrationupontheestatehasbeengrantedinthis
State; provided thatatthetimeofsuchconveyanceacopyofsuch
willhasbeenrecordedintheofficeoftheprobatecourtinthecounty
inwhichthelandissituated.
=
BANKING AND COMMERCIAL L A W S - K A N S A S
Affidavits. Afidavits maybemadeinoroutoftheStatebythe
sameauthority and with like authentication, asdepositions.
Aliens. L a w prohibiting allens from inheriting or holding real
estate, repealed 1901. (See Foreign Corporations.)
Arbitrations. Personshavingcontroversies m a y s u b m i t t h e m t o
thearbitration ofanyperson or persons mutually agreed uponand
maymakesuchsubmissionaruleofanycourtofrecordinthe State.
Theparties may enter into arbitration bonds conditioned for the
faithful performance of the award.
Arrest. Adefendantmaybearrestedinacivilactionuponfiling
anaffidavitwiththeclerkofthecourtthathehasremovedorbegun
to remove his property out of the Jurisdiction of the court with
Intenttodefraudhis creditors; orhas beguntoconvert hisproperty
Intocash,forthepurposeofplacingitbeyondthereachofhiscreditors;
orhaspropertywhichhe fraudulentlyconceals; orfraudulently contractedthedebt.
A s s i g n m e n t s a n d Insolvency. Assignments m u s t b e for the
benefit ofall creditors a n d onlydischarge thedebtor to t h e a m o u n t
ofpaymentsmade.
A t t a c h m e n t . At or after the c o m m e n c e m e n t of an action an
attachment m a y b e h a d byplaintiff. T h e affidavit of the plaintiff,
hisagent, orattorney m u s t b e filed, stating thenatureoftheclaim,
thatit is just, t h e a m o u n t affiant believes ought to be recovered,
a n d t h e e x i s t e n c e o f s o m e o n e o r m o r e o f thefollowinggrounds: 1.
Thatdefendantisaforeigncorporationoranon-residentoftheState
(butinthis casefornootherclaim t h a n a d e m a n d a r i s i n g u p o n c o n tract, judgment, ordecree, unless the cause of action arose wholly
withinthe limits o f t h e State). 2. That thedefendantabsconded
with theintention to defraud his creditors. 3. That the defendant
hasleftthe county ofhis residence to avoidaservice ofsummons.
4. That he so concealed himself that s u m m o n s can not be served
u p o n him. 5. That h e i s about to removehis property o r a part
thereofoutofthejurisdictionofthecourtwith theintenttodefraud
his creditors. 6. That heis about to convert his property or a
part thereofinto money forthe purpose ofplacingit beyond the
reachofhiscreditors. 7. Hehaspropertyorrightsinactionwhich
heconceals.
8.
Has assigned, removed, ordisposed of, orisabout
todisposeofhisproperty,orapartthereof,withtheintenttodefraud,
hinder, or delay his creditors. 9. Or fraudulently contracted or
Incurred the debt on which the suitis brought. 10. Or that the
suitis brought fordamages from the commission o f s o m e felony or
misdemeanor. 11. Or that the debtor has failed to pay for a n y
articleor thingdelivered forwhich by c o n t r a c t h e w a s b o u n d t o p a y
upondelivery.
B a n k s a n d B a n k i n g . Thereisnoconstitutionalprovision relating to banks, except banks of issue. Other banks are organized
under a general act. T h e charter.In addition to the requirements
of the law relating to corporations, shall contain the names and
placesofresidence ofthestockholders a n d t h e a m o u n t of stock subscribedby each, a n d m a y contain such other provisions, not incon-
sistent with law, as the stockholders may deem proper, and shall
be subscribed by at least five of the stockholders of the proposed
b a n k w h o are residents o f t h e State of Kansas.
Board ofdirectors
shallbenotlessthanfive,normorethanthirteen,amajorityofwhom
shall be residents of the county or adjoining countles to that in
whichthebankislocated.
Theword"State" shallbeincludedinthe
title. Thefullamountofthecapitalstock mustbesubscribedbefore
thecharteris filed.
T h e bank shall transactno business, except the
electionofofficers, the taking and approving of theirofficial oonds,
andthereceiptsofpaymentsonaccountofsubscriptionstoitscapital
stock, until it has been authorized by the bank commissioner to
commencebusiness.
Thecapitalstock m u s t b e p a i d , infull, incash
1399
andeach twoyears thereafter the mortgagee, hisagentor attorney,
makes an affidavit exhibiting the interest of the mortgagee in the
property, and files the same inthe same manner as the mortgage.
Incaseofdefaultthemortgageemaysellupontendaysnotice.
Amortgageofexemptpersonal propertyisinvalidunlessexecuted
jointlybyhusband and wifewherethatrelation exists.
Collaterals.
Governed by the c o m m o n l a w on Bailments and
Pledge.
Conditional Sales. Conditional contracts, by which the owner-
ship remainsin theparty proposing toselluntilthepurchaseprice
Ispaid, are treated as chattel mortgages a n d must be filled in the
officeof the register of deedsin the s a m e manner as such chattel
mortgagesbutremaininforcewithout therenewal affidavit required
Inchattel mortgages.
Contracts. All contracts which, by the c o m m o n law, are joint
only, shallbeconstrued to bejointand several. T h e u s e ofprivate
sealsinwrittencontracts (exceptsealsofcorporation) is abolished.
C o n v e y a n c e s . (SeeDeeds.)
Corporations. Corporationsareformed under a generalstatute.
Prospectivecorporationsmustapplytothecharterboardforacharter.
A $ 2 5 application feemustaccompany anapplication. Charter fee
isone-tenth ofonepercentofitsauthorizedcapitalstock uponthe
first$100,000;one-twentiethofonepercentonallinexcessof$100,000.
Forms for applications and charters furnished by the Secretary of
State. Every corporation must c o m m e n c e active operations within
oneyearafterfilingitscharterwiththesecretary ofstate;fallure to
dosoworksitsdissolution. Duration ofcharteris fiftyyears. No
corporation (except railroad, banking, and building and loan), can
commencebusinessuntilitfilewiththesecretaryofstatean affidavit
m a d e b y i t s presidentand secretary setting forth that notless than
20percentofitscapitalstockhasbeenpaidinactualcash,orproperty
equivalent thereto. The n a m e adopted must indicate the nature of
thebusiness. Thecorporate n a m e m u s t beginwith the word "the"
and end with the word "corporation," "company," "association."
or"society," butthisdoesnotapply tobanks, benevolent orrelig
loussocieties. There mustbeatleast five directors, three o f w h o m
m u s t b e residentsoftheState. Theannual statementshall b e m a d e
byeachcorporationforprofitinthemonthofFebruaryofeach year,
showing acompletedetailed statementof thecondition ofsuch cor
poration,onthe 31stday of Decembernextpreceeding. Failure to
filethis report withinninetydays from timefixedworks aforfeiture
ofthecharter,andapenaltyof$5foreachdaythe reportisdelayed.
Thecapital stockcanbeincreasedtoanamountnotexceeding three
times the original amount fixed in the charter and to any further
a m o u n t o f b o n a fide fully paid up capital. Capital stock m a y also
be decreased. Preferred stock can be issued if all the holders of
common stock consent. Dividends can not be declared from any
source otherthan that which results from profits. The corporation
c a n b o r r o w m o n e y not to exceed t h e a m o u n t ofits capital stock.
Costs. (See Actions.) Corporations (except banks, insurance,
building andloancompaniesandthosenotorganizedfor profit) must
payanannualfranchisetaxonpaid-up capital asfollows: Notover
$10,000, $10; over $10,000and not over $25,000, $25; over $25,000
andnotover$50,000, $50; over$50,000andnotover $100,000, $100;
over $100,000 a n d 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 andnot 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,
Courts. Termsand Jurisdiction. Districtcourts, holding two to
threetermsayearineverycounty,have generaloriginal jurisdiction
andshallnotbelessthan$10,000. Nobankshallemployitsmoney
Inlawand equity. Regularterms of the probate court are held in
eachcountyonthefirstMondayineachmonthandspecialoradjourned
goods, chattels, wares, and merchandise, andshallnotInvestin the
civil actions for the recovery of m o n e y , $300; to recover specific
oftheshares of its own capital, nor be the
anysuch shares, except to preventlossuponadebtpreviouslycontractedingoodfalth. Allsuch property coming intothepossession
ofthebank inthe collection ofdebtsshall notbeconsideredassets
after the expiration of six months. Banks must have on hand in
availablefundsthefollowing sums: Incitieshavinglessthan 5,000
population, 20percentof theirdeposits; in citieshaving over5,000
population, 25 per cent, one-half of which may consist ofbalances
duefrom good solvent banks located at commercial centers and at
such other points as the bank commissioner may approve. The
otherhalfshall consistofactual cash. Officers arepersonallyliable
forpaying overdrafts. Not more than 15 per cent of the capital
stockandsurplus canbe loaned toanyoneperson, companyorcorporation. Nobankshallacceptdepositscontinuouslyforsixmonths
i
nexcessoftentimesitspaid-upcapitalandsurplus. Penaltiesare
providedfor false statements and for receiving deposits when the
bankisinafailing condition. Privatebanksaresubject to theprovisionsofthelaw. The bank commissioner, ordeputy,mustmake
Creditors' Bills. Oreditors may bringanactioninthenatureof
acreditors' billtomarshalassetsorsetasidefraudulentconveyances
directlyorindirectly in trade or commerce by buying and selling
stockofanybankorcorporation,normakeanyloansonthesecurity
purchaser orholder of
terms maybeheldasbusinessmayrequire. Justice'sjurisdiction in
personalproperty,$100. Thesupremecourtisthecourtoflastresort.
a s i n o t h e r states.
D a y s ofGrace.
Abolished.
Deeds. No particular forms ofconveyances are prescribed. As
arule the form used in other States is sufficient. As between
the parties conveyances are valid without being recorded. The
wife should join with her husband in the conveyance, and any
conveyanceormortgageofthehomesteadwithoutherunitinginthe
s a m e isabsolutely vold. I f t h e w i f e h a s never residedin the State
her signatureis not necessary. Grantors need not attach any seal
orscroll to their signatures, and no witnesses are necessary unless
grantorsareunabletowritd
e
.
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C bypresident, vice-president, presigned
sidingmember, ortrustee. Theacknowledgment mustbebeforea
Judge or clerk of thedistrict court having
a seal, a justice
examinationof
bank leastonceayear. Fourreportsper peace,notarypublic,countyclerk,registerofdeeds,mayororofthe
clerk
annumare required, andthe commissioner may call for others. o
f
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date
the expiration of his commission as notary
Banksmaypurchase,hold,andconveyrealestateundercertainconcases
where
acknowledgmentis
p
u
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l
i
c
.
In
S
h
a
r
e
the
made
out of the
ditionstotheextentof50percentoftheirpaid-upcapital.
Stateit must be made before
acourt of record, a clerk, or other
| officer having theseal thereof, acommissionerofdeeds for Kansas,
Justice of the peace or notary public, or before any consul of the
Deposit Guaranty Fund. A n y bank having an unimpaired surStates residentinany foreign country or port. Deeds and
plusequal to10percentofitscapital,mayparticipateintheguar- United
mortgages must berecordedinthe officeofthe register ofdeedsof
anty fund act. Such bank must deposit with the state treasurer
thecountyinwhichthelandissituated,orthey
willbevoldasto
money or bonds of the United States, State of Kansas, or of any
subsequentgranteesingoodfaithwithoutnotice.
township, school district, board of education or city within the
State, totheamountof$500foreach $100,000ofitsaveragedeposits
Deeds ofTrustinthenatureofmortgagesarenotusedsofaras
eligibletoguaranty(lessitscapital andsurplus). Itshallalsopay saleby the trusteeis concerned. (See Trusts, etc.)
incashanamount equal toone-twentiethofonepercentofitsaverDepositions.
Depositionsaretakenuponnoticetotheopposite
agedepositseligibletoguaranty(lessitscapitalandsurplus).
party. Courts arealso authorized toappointcommissioners to take
InJanuaryofeachyearthecommissionershall make assessments
depositions.
Thedepositionsmaybetakenbeforeanypersonauthorofone-twentieth ofone percent ofthe average guaranteeddeposits
ized to take acknowledgments. Each witness must sign his own
ofeachbank until thecash fundaccumulated amounts to $500,000.
The notice must be attached to the depositions and
Thecommissioner may makeadditional assessmentsof thesamesize deposition.
Inclosedwith them. The depositions should be commenced on the
n o t m o r e t h a n f i v e i n a n y o n e y e a r . Ifabankfails,thebankcommistakenon each succesdaynamed,andsomeportionofadeposition
to
each
sioner takes charge and winds up its affairs. He Issues
siveday. Sundays and national holidays not being regarded. If
depositoracertificate bearing 6percentinterest. Any balancedue
under agreement
cross-interrogatories,
Interrogatories
takenby
and
fund.
the
guaranty
exhausted
out
of
are
is
payable
after assets
Depositsotherwisesecureddonotparticipate,norabank'sobligation or otherwise, each interrogatory and cross-interrogatory must be
puttoeachwitnessandansweredsofarashecananswer it,andthe
as Indorser upon bills re-discounted, norbills payable, normoney
borrowed from its correspondents or others.
answerwrittendown. Ifthedepositionsaretakenbeforethemayor,
notary public, or commissioner appointed as aforesaid, they must
Banks are prohibited from advertising thatdeposits are guaranbecertifiedunderhis official seal. Ifbeforeanyoftheotherofficers
teedby the State but are permitted to advertise thatdeposits are
above named, acertificate must be annexed, under the seal of the
guaranteed by the Bank Depositors' Guaranty Fund.
court ofthe county, or thegreat seal ofthe State, that the officer
Bills ofExchange. (SeeNotesandBillsofExchange.)
bywhomthedepositions weretakenwas,atthetimeoftakingthe
same, such officer as he represents himself to be in his certificate.
Bills ofLading. Thesearegovernedbythecommonlaw.
Thisshould beattached to the magistrate'scertificate.
ChattelMortgages. Amortgageofpersonalproperty,wherethe
property is not immediately delivered to the mortgagee who retains
D e s c e n t a n d Distribution. The homesteadis the absolute
actualandcontinuous possessionthereof, isvoid as against creditors
propertyofthewidowandchildren-one-halfinvalueto thewidow,
ofthemortgagorandasagainstsubsequentpurchasersandmortgagees
a n d the otherhalf to the children, w h e n both survive. T h e homeingoodfaith,unlessthemortgage,oracopythereof,isfiledintheoffice steadcannotbedividedorsoldby anactionforpartitionuntilall
oftheregister ofdeeds inthe countywherethe property issituated, the children attain majority. One-halfof all real estate owned by
orifthemortgagor isa resident ofthe state, thenofthe county of husbandduring coverture, a n d not conveyed by husband a n d wife.
holdersareadditionally liableforasumequal to the parvalueof
s t o c k o w n e d a n d n o more.
which he is at the time a resident.
A mortgage so filed is invalid
aftertwoyearsunlesswithinthirtydaysnextprecedingsuchtwoyears
nor soldatjudicial sale,and notnecessary to pay debtsgoesto the
1
wifeinfeesimple: exceptoflandsoldbyhusbandwhosewife never
BANKING A N D COMMERCIAL L A W S - K A N S A S
W
ing
andreliefonthegroundoffraud,twoyears. Actionforlibel,slander,
sam
m
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sub
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eeand
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r eRemaining
t a t s e
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rdldi
the
hc.i
e
at
Sing
lti
vs
children,childrentaking orforfeiture, oneyear. Action for any otherrelief not before
ot,e
nonfi,widow.
ro,serahslauqe
Forwant
ni,sepritsrepfo
providedfor, fiveyears. Any case foundedoncontract,partpaythe
and
ment,orawrittenacknowledgmentorpromise,renewsthecontract.
.
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h
T
or
cabletowidowofdeceasedhusband applytohusband of deceased Thestatuterunsfromthedateofsuchrenewal.
ack
wife. Illegitimate children inherit fromthemother,andalsofrom
pres
the father,ifhisrecognition has beengeneral and notorious, orin
Married Women. Therealandpersonalpropertyownedbys
test
writing. Whenachildwouldinheritfromeitherparent,suchparent womanatthetimeofhermarriage,andanypropertywhichcome
thes
toherbydescent,devise,orbequest,orgiftofanypersonexcepther
willinherit fromthe child. Personal propertydescendsinthesame
exed
wayas realestate. Propertydescendingbylaworwill is subject husband,remainshersoleandseparatepropertynotwithstandingher
ofth
marriage,andisnotsubjecttothedisposalofherhusbandorliable
reco
toan inheritancetax,varyinginpercentageaccordingtorelationship forhis
d
e
b
t
s
.
Marriedwomenmaysellandconveytheirrealand
situ
and amount. (See Exemptions.)
personal property and enterintoanycontractwithregardtothe
adm
Dower. Doweris abolished by law. (See Descent and Distri- sameinthesamemannerandtothesameextentasamarriedmas
and
Shemaysueandbesuedinthe
bution.)
mayinrelationtohisproperty.samemannerasifsheweresingle. Shemaycarryonanytradeor
Evidence. (SeeTestimony.)
usiness,performlabororservicesforherseparateaccount,andber
Executions may be ordered as soon as judgment is obtained. b
earningsorproceedsfromlabor,trade,orbusinessremainherseparate
In
j
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s
t
i
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'
s
There is no stay of execution in the district court.
property,andmaybeusedandinvestedbyherinherownname.
courts, by filling bond, stays of execution are granted as follows:
Minesand Mining. Thelawprovidesfortheappointmentofa
Onanyjudgmentfor$20andunder,thirtydays;over$20andunder mine
inspectorwith authorityto requiremineownerstoprovide
$50,sixtydays; over$50andnotexceeding$100,ninetydays;over certainfacilitiesforthehealthandsafetyofpersonsemployedand
$100,onehundredand twentydays. Realestatesoldonexecution compelproperventilation, regulateexcavations, aircourses,etc.
ororderofsale,givingthedebtoreighteenmonthsinwhichtoredeem.
Mortgages. Amortgage ofreal estate,tobevalidasagainst
Thedebtorisentitledtopossessionofthepropertyduringtheperiod
subsequent bona-fidepurchasers, mustbedulyacknowledgedand
providedforredemption.
recordedintheofficeoftheregisterofdeedsofthecountywherethe
Exemptions. Homesteadof160acresoffarmingland,orofone landissituated.
Mortgagesmaybedischargedonmarginofrecord
acrewithin an incorporated town or city, with buildings thereon. bymortgageeorattorneyorassigneeinpresenceofregister,orby
unlimited invalue. Allhousehold goods and wearing apparel;two
atisfaction entered ontheinstrumentwhencopiedonthemargin
cows, tenhogs,oneyokeofoxen, andonehorseormule. orinlieu s
orbyanindependentreleasedulyacknowledged
ofoneyokeofoxenandonehorseormule,aspanofhorsesormules, bytheregister;
recorded. Wifemustjoin inallmortgagesexceptthosefor
andtwentysheepandtheirwool; necessaryfood forthesupportof and
purchase money. Mortgages are foreclosedbysuitonly. Byan
such stock for one year; one wagon, two plows, drag, and other actofthe
Legislaturewhichtookeffect May18,1893,realestate
farmingutensils, not exceeding $300; grain, meat, vegetables, gro- sold underforeclosure of mortgageissubjecttoeighteenmonths
ceries, etc.,forthefamilyforoneyear:thetoolsandimplementsof redemption. Ifthemortgageforeclosedisforthepurchasemone?
anymechanic,miner,orotherperson,keptforthepurposeorcarryThisactdoesnotapply
ingonhisbusiness,andinadditiontheretostock-in-tradenotexceed- sixmonthsonlyisallowedforredemption.
tomortgagesexecutedpriortothedatetheacttookeffect. When
ing$400in value; library, implements, and officefurnitureofany amortgageisassignedtheassignmentshouldbeacknowledgedand
professionalman. Alsopersonalearningsofthedebtorearnedduring recorded. IftheassignmentwasexecutedpriortoMarch15,1899,
threemonths preceding the garnishmentorattachment, and three Itcanberecordedwhetheracknowledgedornot,andunderthelaws
months' pension money, where such earnings orpension money is mustberecordedwithinfourmonthsfromthatdateorpaymenttothe
necessaryforthesupportofthedebtor'sfamily, but 10percentof
suchearningsmayberequiredtobepaidinandappliedonthejudg- recentownerofthemortgagewillbeacompletedefensetoanaction
(ForForms,seeDeeds:seeExecutions.)
thereon.
(For Mortgages
on Chattels, see Chattel Mortgages:seeExecu
ment.
Foreign Corporations. Aforeigncorporationdoingbusinessin
this Statemustfileacertified copyofitscharterwiththesecretary tioNotaries.
NotariesareappointedbytheGovernorandservefor
n
s
.
)
ofstateandpaytothestatetreasurerthesamefeesupontheamount fouryears. Theygivebondinthesumof$1,000andarerequired
ofcapitalinvested orusedinthis stateas a domestic corporation, toaffixthedateof theexpirationoftheircommissiontoallcertif
whenitreceivesacertificateauthorizingittodobusinessandisthen
subjecttosubstantiallythesameprovisions,judicialcontrol,restrict
ions, and penalties asa domestic corporation. Annualstatements cates.NotesandBillsofExchange. NegotiableInstrumentActtook
mustbefiledin
February, givingconditiononthe31stof December
maybeformed C
preceding. Ifaforeigncorporationfailstofilewiththesecretaryof foranylegalpurposeexceptbankingorinsurance.
effectJune8,1905.Partnerships. Limited orspecialpartnerships
Suchpartnerships
statethestatementrequiredbylawwithinninetydaysafterthetime mayconsistofoneormorepersonswhoaregeneralpartners,and
1
providedfor,itsrighttodobusinessintheStateistherebyforfeited.
oneormorewhocontributeaspecificamountofcapitalandsha
.
d
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e
becalledspecialpartners. beyondtheamountcontributedbythem
eign corporationsmust payanannualfranchisetax onthat portion debtsofthepartnership
oftheircapitalrepresentedbyits propertyandbusinessin Kansas respectively butthenamesofthespecialpartnersmustnotbeused
onthesamebasisasdomesticcorporations.
Inconnection withthebusiness. Suchapartnershipisformedby
Fraud. (SeeAttachments, Arrest,and Assignments.)
executingacertificatestatingthename,thenatureofthebusiness
thenamesofthegeneralandspecialpartners,andtheirplaceof
Garnishment. At orafterthe time ofbeginning an actionto residence, andthe amountofcapitalcontributedbyeachspecial
recoverdamagesfoundeduponcontract,Judgmentordecree,orafter partner,andtheperiodwhenthepartnershipistocommenceand
theissuanceofanexecutionandbeforeitisreturned, iftheplaintiff whenitwillterminate. Thecertificatemustbeacknowledgedand
causetobefiledwiththeclerkanaffidavitstatingtheamountofhis
claim overandabovealloffsets,thathebelievesthatsomeperson, filed andrecorded intheofficeofthecountyclerk.
naminghim, indebtedto, orhaspropertyinhispossessionorunder
hiscontrolbelongingtothedefendant,and thatsuch defendant has
(SeeDeeds.)
PowerofAttorney.
noproperty liableto execution sufficient to satisfy his debt, and
ProbateLaw. (SeeAdministration.)
that the indebtedness orpropertyso held isnot by law exempt
from seizure orsaleuponexecution,theclerkshall issue a garnishProtest. (SeeNotesandBills.)
mentsummons.
Records. (SeeDeeds.)
Theplaintiffinanactiontorecoverthepossessionof
Guaranty Companies. (See Trust Companies.)
Redemption. (SeeMortgages.)
Holidays. January 1st, February22d, May 30th, July4th, first samebyfilingaffidavitandgivingbond. Propertyreplevinedmust
Mondayin September (Laborday), December25th,and Thanksgiv- beheldbytheofficertakingittwenty-fourhours,duringwhichtime
Replevin.
ing Day. Ifany ofthesefall on Sundaythe Mondayfollowingis thepartyfromwhomthepropertyistakenmaygivebondtothe
plaintifffornotlessthandoubletheamountofthevaluethere!
aholiday.
conditionedforthereturn
ofthesameoritsvalueincaseitshall
Husband and Wife. (See Married Women.)
Injunctions. Injunctionsmaybegrantedbyadistrictcourtor be adjudgedthe plaintiff isentitledthereto,andthereuponmay
bythejudgethereofatthebeginningofanactionorafterwards, in
his discretion. A bond must be given to protect the defendant
Allserviceofprocessismadebythesherifforbyconagainstanyloss in casetheinjunctioniswrongfullyobtained. In havethepropertyreturnedtohim.
stables, orbysomeonespeciallyauthorizedinanyparticularcase.
the absence ofthe judge fromthe countythe probatejudge may and mustbeissued inthenameofthestatewiththesealofthe
Service.
granttemporaryinjunctions.
Insolvency. (See Assignments.)
Interest. Legal rate, 6percent, but 10 percent may beagreed officerissuingthesameaffixed.
upon. Excessof10percentisforfeited,andinadditiontheretothere ber20,andifnotpaidthewholeamountbecomesdueandthereisa
(SeeActions.)One-halftheannuallevyfortaxesbecomesdueDecenSults.offivepercentadded.
Ifthewholeamountispaidthere
shall be deducted from the amount due for principal, with lawful penalty
IfnotpaidbyJune20of
interest, anamountequaltotheinterest contractedforinexcessof isarebateof5percentonthelasthalf.
Taxes.
10 per cent. Thelegal interest originally contracted for continues thesucceeding year,another 5percentpenaltyisadded.When
,itissoldfortaxesonthefirst
untilthedebtispaid, andnoadditionalinterestcanbechargedby thetaxuponrealestateisdelinquent
way of penalty for default. A purchaser of a negotiable notefor Tuesday inSeptember following. AftersoldItbearsinterestatthe
value before maturity, without notice, takes the note free ofthe rateof15percentperannumandthesamerateuponsubsequent
taxespaidandindorsed onthetaxcertificate. Thetaxlienattaches
usurioustaint.
1,intheyearinwhichthetaxislevied.
Judgments. Judgmentsofcourtsofrecordarellensonthereal torealestateonNovember
Afterlandissoldfortaxes,itmayberedeemed withinthreeyears
estateofthedebtorwithinthecountyfromthefirstdayoftheterm fromdateofsale.
Theinterest
ofaminormayberedeemedatany
atwhichthejudgmentwasrendered; butjudgmentsby confession timewithinoneyearafterheattainshismajority
,andIdiotsand
andjudgmentsrendered atthesametermduringwhichtheaction
wascommencedareliensonlyfromthedayonwhichthejudgment insanepersons mayredeemwithinfiveyearsafterthesale.
Trustcompanies maybeorganizedwitha
wasrendered. Judgmentslosetheirpriorityoversubsequentjudg
ments unless execution isissued andlevied within oneyearafter capitalofnotlessthan$100,000,andmayreceivemoneysintrust
tothem,eitherbyanypersonor
judgment. Acertified copy ofthejudgment may befiled inthe andexecuteanytrustcommitted
ofany court, andmayexecuteorguaranteeanybond
officeoftheclerkofthedistrictcourtofany othercountyandthe byorder
Trust Companies.
judgmentwillthenbealienonrealestateinthatcounty,butexecu- requiredbylawtobegiveninanyproceedingincourt,andactas
agentfortheinvestment
oofumnotneerysaingdnfionrgth
erptu
ripco
seeso
fsits
sku,i
nngd.
tioncanonlyissuefromthecourtinwhichthejudgmentisrendered. r
egistering,transferring orc
ce
if
at
of
oc
bo
s
Jurisdiction. (SeeCourts.)
orotherevidences ofdebt,actasguardianandguaranteethefidelity
andperformance
o
f
d
u
t
y
o
f
p
e
r
s
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p
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s
o
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p
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i
v
ate
License. Agentsofinsurancecompaniesarerequiredtotakeout trusts,andcertifyandguarantee
itletorealestateandsellallkinds
licensesfromthesuperintendentofinsurance. Citiesareauthorized ofnegotiable paper,andreceivedept
ositsfrombanksandothertrust
toenactlicenseordinancesandcertainclassesofbusinessarerequired
totakeoutalicense.
companies orpublicofficers. Theyarerequiredtokeeponhand25
Liens. Mechanics, material-men, and laborers are entitled to percentofdepositssubjecttocheckand10percentoftimedeposits,
Eachdirectormustbeastock
obtainliensuponrealestateforlaborperformedormaterialfurnished Inthesamemannerasstatebanks.
holderin thesumofnotlessthan$1,000. Trustcompaniesare
inthe erection or repair of any building. Statements as to the underthesupervision
ofthebankcommissioner
andsubjecttohis
amountoftheclaim, forwhatitwasrenderedand bywhommust
befiledintheofficeoftheclerkofthecourt. Livery-stablekeepers,
TrustsandPowers. Alltrustsconcerninglandsmustbecreated
forwardingmerchants and commoncarriershaveliens. (See Judgments.)
LimitationsofSuits. Anactionfortherecoveryofrealproperty. examination
.inwrit
ingexceptsuchaPsr
aa
ri
ml
pl
ationoUfnli
af
w.
orm"Warehouse
Receipts.
cs
teibcyail
yicthe
Warehouse
sold on execution or by executors, administrators, or guardians,
broughtbythe executiondebtor, ortheheirs,ward, orguardians.
within five years after the deed is recorded. Other actions for
recovery ofreal property, within fifteen years. On official bonds
,gniti
rwnistcartnocdnaeerht,gnitirwnitonstcartnoC
fiveyears.
Receipts Act."
in, 1:
. Trespass,
s r adeteinuey, re.plevt
c a r tarising
t n oon c
1400
BANKING AND COMMERCIAL L A W S - K E N T U C K Y
Wills. Anypersonoffullageandsoundmindandmemory,havinganinterestinrealorpersonal property, maygiveanddevisethe
same to any person by last will and testament lawfully executed,
subject, nevertheless, to the rights of creditors. Wills must bein
writing, signed at the end b y t h e testator, oranotherinhis presence
a n d b y h i s expressdirection, and subscribed inhis presence by two
ormorecompetent witnesses who saw him subscribe orheard 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'sdomicile are declared legally executed. Compliance with
these requirements should appear in the witnessing clause. A will
executed, proved,andallowedinanotherState,accordingtothelaws
ofthat State, relative to propertyinthis State, m a y b e a d m i t t e d to
recordinthe probatecourtofthecountyinwhich suchpropertyis
situated, by
producing an authenticated copy.
E v e r y will, w h e n
admitted to probate, shallbefiled inthe officeofthe probatecourt
a n d recorded.
1401
Arrest. An order for the arrest of thedefendant shall be m a d e
b y t h e court in which the actionisbrought orpending, at its com-
mencement, oratany time beforejudgment, ifan affidavit ofthe
plaintiffbe filedinhis office showing: 1. T h e natureof plaintiff's
claim. 2. Thatitisjust. 3. The s u m orvalue, which the affiant
believestheplaintiffought torecover. 4. Thattheaffiantbelleves,
eltherthat thedefendantisabout todepartfromthis Stateand with
Intent to defraud his creditors has concealed, or m o v e d from this
State, hisproperty, o r s o muchthereofthattheprocessofthecourt
afterjudgmentcannotbeexecuted;orthatthedefendanthasmoney,
or securities for money, or evidences of debt,in the possession of
himself, or of others forhis use, a n d i s about to depart from this
Statewithoutleavingpropertytherein sufficienttosatisfyplaintiff's
claim.
Assignments and Insolvency. Subject to National Bankrupt
Law. Every voluntary assignmentmadebyadebtor toany person
Intrustforhiscreditorsshallbeforthebenefitofallthecreditorsof
theassignor, in proportion to their respective claims, afterthepayment of the expenses of the trust; except that property conveyed
by the deed of assignment, a n d u p o n which there is a valid lien,
shallbe applied first to the discharge ofthelien debt; and except
that debts due by the assignor as guardian, committee, trustee of
anexpresstrustcreatedbydeedorwill,oraspersonalrepresentative.
shallbepaidinfullbefore the general creditors receive anything.
T h e intent of the assignorin making the deed of assignment shall
notinvalidatethedeed, unless hebesolvent, anditappearthatthe
assignment was m a d e to hinder or delay creditors. T h e deed vests
Intheassigneethe titletoallthe estate, real andpersonal,belonging
to the assignor at the time of making the assignment, except that
propertyexemptbylawshallnot pass unless embracedinthe deed.
Iftheassignor,beforemakingthedeed,shallhavemadeapreferential
SYNOPSIS
orfraudulent transfer, conveyance, or gift of any of his property.
or fraudulent purchase of a n y property or the n a m e of another, the
property so fraudulently transferred, conveyed, or purchased shall
vestintheassignee, anditshallbehisduty toinstitutesuch pro-
OF
ceedings as m a y be necessary to recover same.
If, u p o n d e m a n d .
herefusestodo so, any creditormay, and theproperty so recovered
T H E L A W S OF
K E N T U C K Y
R E L A T I N G TO
shallbecomeapart of the estate, andbedistributedas other assets.
If creditors representing one-half in n u m b e r a n d two-thirds of the
a m o u n t ofdebts against the estate shall so requestin writing, the
court shall remove the assignee and appointanother inhis stead.
Attachments. Thewritmayissue againstadefendantwho isa
foreigncorporationornon-residentofthe State:orhas beenabsent
from Statefourmonths: orhas lefttheState with intent todefraud
B A N K I N G
A N D
C O M M E R C I A L
USAGES
Preparedand Revised by HARRISON & HARRISON, Esq..
Attorneys at L a w , Louisville.
(SeeCardInAttorneys' List.)
hinder ordelay creditors. Alsoinaction for m o n e y due u p o n con-
Acknowledgments. Deeds executed within the State may be
acknowledgedbefore the clerk ofacounty court ora notarypublic.
o r m a y b e a c k n o w l e d g e d b e f o r e a n d p r o v e n b y t w o w i t n e s s e s . Deeds
executed without the State a n d within the United States m u s t b e
acknowledgedbefore theclerkofacourtorhisdeputy,notarypublic.
m a y o r o f a city, secretary ofstate, commissionerofdeeds, orjudge of
acourt; ifexecutedwithouttheUnitedStatesmustbeacknowledged
beforeaforeignminister,consul, orsecretaryoflegationoftheUnited
States, orthesecretary offoreignaffairs, orjudgeofasuperiorcourt
ofthenationwherethedeedshall beexecuted,attestedin eithercase
by the officer's seal of office. When the acknowledgmentis taken,
theofficer maysimplycertifythatthedeedwasacknowledgedbefore
him, a n d w h e n i t w a s d o n e .
Actions. Actionsarecommencedbyfilingintheclerk's officeof
the proper court a petition setting forth the cause of action and
causingasummons or awarning order to be issued thereon. Nonresidentsandcorporations,otherthanbanks, created bylawsofthis
State, are required to give security forcosts.
Administration of Estates. Personal estates of deceased persons must be administered by theexecutors n a m e d i n thewill, orif
theserefuseto qualify, ornoneare named, thenbyanadministrator
appointedby thecountycourtofthecountyin which the decedent
residedatthe time ofhis death.
creditors; or has left his county to avoid service of summons; or
remove, or has removed his property or material part out of the
Statenot leaving enough tosatisfyclaim ofplaintiff ordefendant's
creditors;orhasdisposedorisabouttodisposeoforsellhisproperty.
orpermittedtobesoldordisposedofwithfraudulentIntenttocheat
so conceals himself that s u m m o n s cannot be served; orisabout to
Administrators a n d executors are
required to give bond for the faithful performance of their duties
and with surety unless otherwise directed by the will. They are
required to file an inventory of the estate within three months and
tomakesettlement withintwo years fromthe dateofqualification.
Affidavits. An affidavit m a y be read to verify apleading, to
provetheserviceofasummons, notice,orotherprocess,Inanaction;
toobtainaprovisional remedy, anexamination ofawitness, a stay
ofproceedings orawarning order; or, uponamotion. An affidavit
m a y b e m a d e : 1. In this State, before a judge ofa court, ora
Justiceofthepeace,notarypublic,clerkofacourt, ormaster-com-
missioner. 2. Out of this State, before acommissioner appointed
bythegovernorofthisState;orbefore anyother person empowered
by a commission directed to him by consent of the partiesorby
orderofthecourt:orbeforeajudgeofacourt,ajusticeofthepeace.
amayorofacity,ornotarypublic.
Appeals. Appeals may be taken from ajustice's court to the
quarterly court regardless of the amount in controversy fromthe
quarterly courtto thecircuitcourt whenthe valuein controversy,
exclusiveofinterestandcosts, exceeds $25; from the county court
to the circult court when the value in controversy, exclusive
ofInterestand costs, exceeds $50: from the circultcourt to the
courtofappeals as amatterofrightinallcases inwhichthetitleto
land, or the right to an easement therein, or the right to enforcea
statuatory lien isdirectly involved, and inallcases when the value
incontroversy, exclusive of interest and costs, amounts to $500 or
more,butwhensuchamount in controversy exceeds $200andisless
than$500, thepartydeservingthe appeal, mayuponpaymentofthe
taxandfilingtherecordintheclerk'sofficeoftheCourt ofAppeals,
enteramotionthatthe appeal begranted. Ifthecourtupon exam-
inationoftherecorddecides theappeal shouldnot begranted, the
motionshall be overruled without awritten opinion, and no petition
forarehearingwillbeentertained,butifthecourtshouldbeofopinion
theendsofjusticerequirethejudgment be reversed thentheappeal
willbegrantedandawrittenopinionwillbefiled. Noappeal lies
tothecourt ofappeals fromanyjudgment ofaquarterly,
city, police,
fiscalorjustice's court, nor from any judgment ofthecountycourt
except in actions for the division of land a n d allotment of dower.
Arbitration. Allcontroversieswhich might bethe subject ofa
sultmaybesubmitted to the decision ofoneor morearbitrators, or
two and their umpire. The submission may be in writing or by
entryofrecord, and theagreement ofsubmissionshallbebindingon
theparties thereto,ifitstates the matter to be submittedandwho
areto be the arbitrators. Each arbitrator and the umpire, If one
be chosen, shall take an oath to decide the matter in controversy
fairlyand Impartially according to law, justice and the equity of
thewholecase. Theawardmustbeinwritingsignedbyeacharbitratorandthe umpire,ifany, andshallbeafinalsettlementofthe
controversy between the parties. A copy of the award must be
givenwithina reasonable time andshallbebinding uponboth.
tract judgment or award,if defendant have no property in State
subject to execution, ornotenoughto satisfyplaintiffandcollection
will be endangered by delay in obtaining judgment and return of
nulla bona. AlsoIn action for personal property ordered to be
delivered to plaintiff which as part thereof has been disposed of.
removed, orconcealed, sothatorderofdeliverycannotbeexecuted.
Affidavitas prescribedby civilcodeandbond required, exceptno
b o n d requiredinactionuponnullabona return.
Banks. Itis unlawful for any person or persons, elther as
Individuals or co-partners to engage in or conduct the business of
privatebanking inthiscommonwealth. Corporationsmaybeorganizedto conductboth a banking and trust companybusiness. The
boards ofdirectors ofbanks and trust companies doing business in
thisStatehavefullpowerandauthority to fix thehoursofopening
and closing of sald banks and trust companies, and may provide
that on Saturday of each week such hour of closingbe as earlyas
twelve(12) o'clock noon. A D e p a r t m e n t o f B a n k i n g , providingfora
Banking Commissioner,deputy commissioner and examinersofState
banks, and prescribing their duties and for the examination of all
financial institutions organized and doing business underthe laws of
theStatewascreatedby a l a w effective July 1st, 1912.
Chattel M o r t g a g e s a n d D e e d s of Trust. No deed of trust or
mortgage, conveying a legal or equitable title to real or personal
estate,shallbevalidagainstapurchaserforavaluableconsideration,
without notice thereof or against creditors, until such deed shallbe
acknowledgedorprovedaccordingtolaw,andlodgedforrecord. It
isapenaloffense,punishablebyfineandImprisonment,foranyper-
sontosellany personal property, on which thereisa mortgage of
record, with theintent to prevent the foreclosure ofthe mortgage
andasaleoftheproperty.
C h e c k s . T h e issuing of checks in this State u p o n banks where
thedrawerhas not sufficient funds ondeposit topaysameis now a
criminal offense.
If amount under $20.00 it i s a misdemeanor, and
the penalty $100.00 or jail confinement one to thirty days, or both
such fine and imprisonment in discretion of the Court or Jury. If
t h e c h e c k be for $20.00 or more, it is a felony and confinement in
penitentiary for not less than one or more than two years, but if
thedrawer of the check shall pay same within twenty days after
receiving noticeofthedishonor ofthe check, he shallnot be prosecuted; or ifthe prosecutionhas been begun, it shallbedismissed at
cost of t h e m a k e r
of t h e c h e c k .
Contracts. Asealorscrollisinnocasenecessaryto giveeffect
toadeedorother writing. Allunsealed writings standuponthe
samefootingwithsealedwritings, havingthesameforce andeffect.
andthe same actions may be founded upon them. The State or
county seal, or the seal ofacourt, corporation, or notary to any
writinghas not, however, beendispensed with.
Conveyances. (SeeAcknowledgments.)
Corporations formedunder the general laws for transaction of
anylawful business. Special regulations prescribed forforeign corporationsdoingbusinessintheState,andforbanking, buildingand
loan, trust, Insurance, and railroad compantes. Cumulative voting
prescribed. Stockholdersinbanks,trustcompanies,guarantycompanies, investment companies and Insurance companies are Hable
equallyandratably,andnotonefortheother, forallcontractsand
llabilities of corporation to extent of theamount of their stock at
parvalueinadditiontoamountofsuchstock;butpersonsholding
stock, as fiduciaries, are not personally liable, but estates in their
hands are insamemannerandtosameextentasotherstockholders,
andnotransferofstock operatesasarelease, ofany such liability,
existing at timeoftransfer, providedactionto enforcethe liability
b e c o m m e n c e d withintwo yearsfrom t i m e o f t h e transfer.
Articles
acknowledgedand recorded like deedsincountyin which principal
placeofbusinessissituated, a n d a c o p y thereoffiledandrecorded
IntheofficeofthesecretaryofState. Aftersuchfilingandrecording.
and paymentto State of license taxofone-tenth of 1 percent on
Itscapital stock, corporationisdeemed organized;but,beforetransacting business other than with its own stockholders, at least 50
percentofstockmustingoodfaith besubscribed, payableatsuch
timesasboardofdirectorsmayrequire.
Courts. General civiland criminal jurisdictionisvested in ctr-
An
cuitcourtswhich hold terms in each county as provided by statute.
1
1402
BANKING AND COMMERCIAL L A W S - K E N T U C K Y
Credits. By an Act approved March 14, 1914, itis provided
thatapersonwhoshallknowinglyinpersonorthroughanyagency
make any false statement in writing withintent itshall berelied
upon, respecting his financial condition, ormeans orabilityto pay,
forthepurposeofprocuringdeliveryofpersonalproperty, thepaymentofcash,themakingofaloanorcredit, orextensionofcredit,
andprocuresuponfaiththereofeitheroranyofthethingsorbenefits
mentioned, shall be guilty of a felony and upon conviction, shall
beconfined inthepenitentiarynotlessthanonenormorethanfive
years.
DaysofGrace. (SeeNotesand Billsof Exchange.)
Depositionsmaybetakeninallequitableactions,andinordinary
orcommonlawactions, wherewitness resides twenty miles or more
fromplacewherecourtisheld, orisabsentfrom State, andin many
othercasesenumeratedinthestatutewherethewitnessisprivileged.
Depositions are taken either on notice to opposite party or upon
written interrogatories. The ordinary method of taking is upon
notice, butwhere place oftakingis more thanone day's travelby
ordinarymethods and morethanonehundred milesfromthe place
ofsittingofcourt,thepartyreceiving noticemayrequiredeposition
to be taken upon interrogatories by giving notice tothat effect to
adversepartyorhisattorneyuponsame day, orday followingone
uponwhich firstnoticewasserved. Exceptin divorce cases, depositions are required to be taken upon interrogatories, ifall parties
against whom they are to be read have been constructively summonedandhavenotappeared, orbe defendants, orunderdisability
otherthancovertureorinfancyandcoverture combined. Inseveral
other cases enumerated in the civil code, the court may require
depositionsto be taken upon interrogatories, and they may always
be so taken by consent ofall parties. Officers authorized to take
depositions inthis State: An examinerappointed by judge ofcircuitcourtofthisdistrict,ajudgeorclerkofacourt,justiceofpeace.
ornotarypublic. Depositionsmaybetakenoutofthis Statebefore
a commissioner appointed by governor of this State or before a
judge ofa court, a justice of peace, mayor ofcity, notary public,
oranyotherpersonempowered by a commission Issued to him by
consentoftheparties or by order ofcourt. Ifdepositionis taken
upon interrogatories neither party isallowed to be present, either
in personorby agentattorney. The officer's certificate must state
when and where the deposition was taken; that the witness was
dulyswornbefore giving it, and thatitwas written and subscribed
by him in officer's presence, or was written by officerin presence
ofwitnessandreadtoandsubscribedbywitnessinpresenceofofficer.
Descent and Distribution of Property. The real estate ofa
persondyingintestateshalldescendinparcenarytohiskindred,male
and female, inthe following order, viz: (1) To his children and
theirdescendants; ifnone,then(2)to hisfatherandmotherequally
Ifbothbe living: ifeitherbedead, the wholeestatedescendstothe
oneliving;if bothbe dead,then (3) tohis brothers and sisters and
their descendants; ifnone, then (4) one moiety ofthe estate shall
passtothepaternal and the other tothe maternal kindred, inthe
followingorder: (5)tothegrandfatherandgrandmother, orwhichevermay be living; ifboth are dead, then (6) to uncles and aunts
and their descendants: Ifnone, then (7) to great grandfather and
great grandmother, and so on in other cases without end, passing
tothenearest lineal ancestors and theirdescendants. (8) Ifthere
isnokindred tooneoftheparents,thewholeshallgotothekindred
oftheother. Ifthereis neitherpaternalnormaternal kindred,the
wholeshall go tothe husband orwife oftheintestate, orifhe or
shebedead, thento his orherkindred asifheorshehad survived
theintestateand died entitled totheestate. Whenany orallofa
classfirstentitledtotakearedead,leavingdescendantssuchdescendantsshalltakeperstirpes,thatistosay,byrepresentation,theshares
oftheir respective deceased parents. Collaterals ofthe half blood
shallinheritonlyhalfsomuchasthoseofthewholeblood. Inmaking
title by descent, itshall be no barto a party that any ancestor,
through whom he derives his descent fromthe intestate, isorhas
been analien. Bastard caninheritinthedescendinglineonlyfrom
the mother and her kindred, and can transmit inheritance in the
ascendinglineonlytothemotherandherkindred.
Dower. (See Husbandand Wife.)
Executions may issue upon judgment any time until collection
ofitis barred by limitation, but no execution shall issue on any
judgment,
nless ordered
by
, unproperty
til afterof
tendebtor
days from
from
rendition. uExecution
const
ituthe
tes lcloeunrton
timeitreacheshandsofproperofficer. Execution maybereplevied
forthree months, any time before sale under same, by defendant
givingtotheofficeranobligation(replevinbond) payabletoplaintiff,
with good security for the amount thereof. Interest and costs. A
Judgmenttoenforcealiencannotbereplevied. Noreplevyallowed
uponjudgment against any collecting officer, attorney at law. or
agent, for a delinquency ordefaultin executing orfulfilling duties
ofhisoffice or place, orfor fallingto payover money collected by
him insuchcapacity,noragainstaprincipalbyhissurety, norupon
a debt due by obligationhavingthe force ofajudgment, norupon
Judgment for specific property, or for the property, or its value.
Iflandsolddoesnotbringtwo-thirdsofappraiser'svaluation,defendantand his representativeshaverightto redeemwithinayearfrom
the day ofsale, by paying purchaserorhis representatives original
purchasemoneyandtenpercentumperannuminterest.
Exemptions. The following property of persons with a family
resident in this Commonwealth, shall be exempt from execution,
attachment, distress, orfeebill, namely: Two workbeasts, orone
workbeast and one yoke ofoxen; two plows and gear; one wagon
andsetofgear,orcartordray; twoaxes,threehoes,onespade,one
shovel; two cows and calves; beds, bedding and furniture sufficient
andpair ofcards; all
for family use; oneloom and spinning wheel
thespun yarnand manufactured cloth manufactured bythefamily
in use; one
necessaryforfamily use; carpeting for allfamilyrooms
table; all books not to exceed seventy-five dollars in value; two
many
bridles; six chairs; or so
saddles and their appendages; twovalue;
one cradle; allthe poultry
as shall not exceed tendollarsin
onhand; tenheadofsheep,nottoexceedtwenty-fivedollarsinvalue;
breadstuff and
isions, including
sufficiefamily
nt provf
a
ll wearing apparel;
or one year; provender suitable
sustainthe
animalfoodto
forlivestock,iftherebeanysuchstock,nottoexceedseventydollars
invalue; andifsuchprovenderbenotonhand,suchotherproperty
asshallnotexceedsuchsuminvalue; allwashingapparatus, notto
exceed seventy-five dollars in value; one sewing machine, and all
family portraits and pictures; one cooking stove and appendages,
and othercookingutensilsnottoexceedinvaluetwenty-fivedollars;
ninety per centum ofthesalary, wages, orincome earned by labor,
ofseventy-five
ofevery person earning a salary, wages, orincome
dollars orless per month, provided thatthelien created by service
ofgarnishment, execution, orattachment, shall only affect ten per
centumofsuchsalary, wages,orincome,earnedatthetimeofservice
ofprocess;ofthesalary, wages,orincomeearnedbylabor,ofevery
person earning a salary, wages orincome in excess ofseventy-five
dollars per month, sixty-seven and one-half dollars per month and
nomoreshallbeexempt.
Tools ofa mechanic, not exceeding onehundred dollars invalue;
librariesofministers oftheGospel, professional librariesoflawyers,
professionallibrariesandinstrumentsofphysiciansandsurgeons,not
to
exceed in value five hundred dollars. In addition to personal
propertythereis for actual bona fide housekeepers with a family
residentin this Commonwealthahomesteadexemptionofsomuch
dwelling house and appurtenancesownedby
land including the
debtor as shall not exceed in value one thousanddollars. This
doesnotextendtoamortgageonorpurchasemoneyduefortheland
orfordebtsorliabilityexistingpriortothepurchaseoftheland,or
ofthe erection ofthe improvementsthereon.
Personalpropertyormoneyonhandorinbanktotheamountof
$750.00shallbeexemptfromdistributionandsaleandshailbeset
apartbytheappraisersoftheestateofanintestatetohiswidowand
children,or,ifnowidow,tohisinfantchildrenorchildsurvivinghim.
Theappraisers shallstateintheirappraisementthemoneyorthe
articlesandvalueofeachsetapartbythemtothewidow,orinfants.
separatelytothearticlesappraisedforsale,butifthewidowbepresent
atthetimeofthe appraisement, oranyoneauthorizedbyherin
writing,shemaymakeherselectionoutofthepropertyappraisedto
theamountofsaid$750.00andsaidappraisersshallsoreport. The
provisionsofthissectionshallapplytocaseswherethehusbanddies
testate, and thewidowrenouncestheprovisionsofthewillinthe
timeprescribedbylaw.
Holidays. The1stdayofJanuary,the22ddayofFebruary,the
30thdayof May.the4thdayofJuly,thefirstMondayinSeptember
(Labor Day), the 12th day ofOctober (Columbus Day),the25th
dayofDecemberofeachyear,andalldaysappointedbythepresident
oftheUnited States,orbythegovernorofthisState,asdaysoffasting
andthanksgivingaredeclaredholidays,andshallbetreatedasSur
day. IfanyofthosedaysnamedasholidaysshalloccuronSunday.
thenextdaythereaftershallbeobservedasaholiday.
HusbandandWife. ByanactwhichtookeffectJune12,1894.
thefollowing Important changesweremadeinthecommonlawof
coverturewhichtheretoforeprevailedin Kentucky. Marriagegives
to the husbandduringthelifeofthewife no interestinany
the wife's property. She has full powerto contractandtobind
herselfand herproperty,except thatshecannotbindherselfto
answerforthedebt,default,misdoingofanother,exceptastoproperty
setapartforthatpurposebymortgage. Shemaysellanddispose
of personal propertyas ifunmarried, butmaynotsellorconvey
realestateunlessherhusbandunitesinthecontract,orconverance
unless empowered todosobydecreeofcourtincaseofinsanity
conviction offelony,orabandonmentbythehusband. Afterthe
deathofeitherhusbandorwifethesurvivorshallhavealifeestate
inone-thirdofalltherealtyofwhichthedecedentwasseizedinfee
simpleduringthe covertureunlesssuchrightshallhavebeenfor
feltedorrelinquished. Suchsurvivorhasalsoone-halfthepersonalty
ofthedecedentleftafterthepaymentofdebts. Abandonmentand
livinginadulterybyeitherparty,ordivorceworks&forfeitureof
theserights.Interest. Thelawfulrateofinterestis6percentumperannum,
andcontractsforagreaterratearevoldastotheexcessofinterest
Judgments. Ajudgmentdoesnotconstitutealienonproperty
inthis State. Alljudgments bearinterestfromtheirdates. Se
ExecutionsandLimitations.)
Limitations. Thefollowingaretheperiodswithinwhichactions
mustbebrought, thetimecommencingtorunfromtheaccrualof
thecauseofaction. Fifteenyears: Actionstorecoverrealproperty
actions upon judgments and written contracts, exceptnegotiable
Seven years: Actions bysenior patenteesagainst
instruments.
patentees, whohaveheldpossessionforsevenyears. Five
junior
Actions uponverbalcontracts; uponaliabilitycreatedby
s
yt
eat
ru
st
:e; actionsfortrespasstorealorpersonalpropertyorfordan
agesforwithholdingsame;forthespecificrecoveryofpersonalprof
erty: actions upon negotiable instruments; actionsuponaccount
between merchants,and actionsforrelieffromfraudormistake
Actions upon merchant's accountsforgoodssold.
Actionsforinjurytopersonorcharacterandforbreachofpromise
years:
Two
Anactrelatingtonegotiable
ofmarriage.
s became
tn
elsmalawJune13,1904.
urtsnI.
Bil
ofExchange
Section1declaresthatas
Notesand
tobenegotiable mustconformtothefollowingrequire
Instrument
(1) Itmust beinwritingandsignedbythemakerof
drawer. (2) Mustcontainanunconditional promiseororderto
ments.
payasumcertaininmoney. (3) Mustbepayableondemand,o
atafixedordeterminable futuretime. (4) Mustbepayabletothe
mce
ne
td
personortobearer. (5) Wheretheinstirnu
orderofaspecified
di
at
toadrawee,hemustbenamedorotherwise
isaddressed
therein with reasonable certainty. Days ofgraceareabolished
Thesignature ofanypartymaybemadebyanagentdulyauthorized
inwriting. Everynegotiableinstrumentispayableatthetimefixed
therein;whenthedayofmaturityfallsuponSunday,oraholiday.
theInstrument ispayable onthenextsucceedingbusinessday.
to
ad
li
or
Powersofattorney
sonalproperty may be acknowledged,
proveda
nc
do
rnevceoyrrdee
np
te
hre
properofficeinthemannerprescribedforrecordingconveyances.
If
PowersofAttorney.
theconveyancemadeunderapower,isrequiredbylawtoberecorded
orlodgedforrecordtomakethesamevalidagainstcreditorsandpur
chasers,thenthepowermustbelodgedorrecordedinlikemanner
Whereanynegotiableinstrumenthasbeendishonored
Itmaybeprotestedfornon-acceptanceornon-paymentasthecase
maybe;butprotestisnotrequired,exceptinthecaseofforeignbill
Protest.
ofexchange. ITaxesduetheStatebybanksandtrustcompaniesare
tisthesaferpracticetoprotestinallcases.
payabledirectlyintotheStatetreasuryonorbeforethefirstdayof
Julysucceedingreportsbytheirchiefofficersrequiredtobemadeto
Taxation.
auditorofpublicaccounts,andtaxes tocounties. cities,townsand
districtsarepaidatthetimefixedbylawforpaymentofliketaxes
Wills. Anypersonofsoundmindandovertwenty-oneyearsof
Willsmustbeinwritingwiththenameof
thetestatorsubscribed theretoeitherbyhimselforbysomeother
personinhispresenceandbyhisdirection.
Ifnotwhollywritten
agemaymakeawill.
bythetestatorthesubscriptionmustbemadeorthewillacknowledged
bythetestatorinthepresenceoftwowitnesses,whoshallsubscribe
theirnamesinthepresenceofthetestator. Thewillofaperso
domiciledoutofthisStateisvalidastopersonalty,ifexecutedaccordingtothelawofthedomicile;buttobevalidastolands,Itmustbe
executed asrequired bythelawofthis State. Thecountycour
hasexclusiveoriginaljurisdictionovertheprobateofwills.
BANKING A N D
COMMERCIAL LAWS-LOUISIANA
1403
a n d trust banking business must be composed of more than five
persons, may be organized for not longer than ninety-nine years,
m a y nothold real estate for longer period than ten years, except
S Y N O P S I S OF
T H E L A W S OF
:
LOUISIANA
R E L A T I N G TO
such asis held as agent or trustee, or necessary for transaction of
their business; m a y accept a n d execute trusts or agencies of all
descriptions, m a y be appointed b y a n y person o r b y court executor,
administrator, syndic, receiver, curator, tutor, trustee or assignee.
Capitalstockconsideredassecurityforfaithfulperformanceofduty.
thoughcourt m a y require other security, a n d m a y require the state
examiner of banks to investigate the affairs and management of
t h e b a n k . Such banks c a n n o t issue notes and m u s t h a v e a capital
notlessthan$100,000, which m u s t b e p a i d upincash. (SeeAct121
of1910, amendingAct45of1902 as to capitalrequiredincities of
BANKING A N D COMMERCIAL USAGES
R e v i s e d b y Messrs. M E R R I C K , G E N S L E R & S C H W A R Z ,
Attorneysat L a w , N e w Orleans.
( S e e C a r d i n A t t o r n e y s ' List.)
A c c o u n t s . (SeeAcknowledgments.)
Acknowledgments ofdeedsexecutedwithintheStatemaybe
madebeforeajudge, notarypublie,parishrecorderorhisdeputy.In
lessthan30,000.) (SeealsoAct179of1902.andamendmentthereof,
Act140of1906andamendmentthereofAct152of1910andamendm e n t thereofAct 96 of 1912.) Act 238 of 1910, amending Act 45
of 1902, provides for branches. Act 112 of 1910 creates a State
BankingDepartmenthavingsupervisionoverallstatebanks, A m e n d edbyAct48of1912.
Chattel Mortgages notlegalin this State except as to lumber,
logs, live stock, vehicles ofal kinds, allkinds of machinery, allwell
casing, linepipes, drilling rigsandtanks. T h e s e m a y b e mortgaged
b u t t h e m o r t g a g e on such properties not legal unless it is o w n e d b y
the mortgagor in excess ofmovableproperty granted him and ex-
empted from seizureunder Act 214 ofthe Constitution of 1898.
thepresenceoftwowitnesses. Thesewitnessesmustbeoverfourteen | (See act 65 of 1912, amended by act 155 of 1914.)
years ofage. InotherStates, before a commissioner of Louisiana, I
Collaterals, m u s t b e delivered t o b e effectual. Act 9.Of 1914
o r a n y officer authorized to take depositionsin the State where he
makesitafelony for a customer of bank to wrongfully dispose of
resides, but the official character of such officermust be properly
collateral security pledgedto bank. Uniform Bilis ofLading loss
verified. ALouisiana commissionermaycertify to the officialpostt i o n o f a n y publicofficerinthe Stateforwhichheisappointed. A
deedtobeauthenticandtobeadmissibleinacourtofJusticewithoutotherproofof signature,mustbeacknowledgedandsignedbefore
a notary or commissioner of deeds. In other states a n y oath or
acknowledgmentmadebeforeanotarypublic,dulyappointedinsuch
states, whencertifiedunderthehandandofficial sealofsuchnotary.
shall h a v e the s a m e force a n d effect without further proof of the
signature, seal a n d official character of such notary, asif taken or
m a d e b y orbefore a Louisiana commissioner residing in such State.
Act140of1896. Inforeigncountrieseverydeed, conveyance,mortgage, sale, etc., m a d e or taken before a n y ambassador, minister,
charge d'affaires, secretary of legation, consul-general, consul, viceconsul, orcommercial agent, a n d e v e r y acknowledgment, attestation,
or authentication of a n y of said Instruments, oaths, etc., m a d e by
a n y o f s a i d officersundertheir official sealsandsignaturesshall have
the full force a n d effect of anauthentic act executedin this State.
Nowitnessesnecessary. Partyappearingbeforeanyofsaidofficers
need not be a resident of the place where sald officeris located.
Notarial coples oforiginalwhendepositedinthisstateinanotary's
officehavefullforceandeffect ofauthenticcoples ofacts executed
inthis State. [Act 164 of1898.]
Actions. Commenced by petition setting forth cause ofaction,
signedby plaintifforhisattorneyanddulyswornto. Plaintiff must
give resident security for costs or m a k e deposit to cover s a m e if
demanded. (SeeAct300 of1914regulatingpleadingsandpractice.)
Administration of Estates by executors, administrators, or
tutors w h o are ex-officio administrators
also by dative executors-
obtains. (Act 94 of 1912.)
Conveyances. All agreements affecting real property mustbe
Inwriting, a n d transfers and mortgages,etc., must be recorded In
theplacewhere the propertyissituated to affect therightsof third
persons. Deedsaremadeunderprivatesignatureorbyactpassed
beforeanotarypublicinthepresenceoftwowitnesses. Bothvendor
a n d v e n d e e sign, though signature of vendeeis not essential, as any
act ofacceptancewill answer. T h e n o t a r y i n Parish ofOrleans proserves the originals ofdeeds passed before n i m a n d certified copies
givenbyhimarereceived as evidencein thecourts. Everynotarial
deedshouldcontain(1) dateofactandplacewhereitwaspassed,(2)
namesandsurnamesandqualitiesofcontractingparties,(3)description
oftheproperty, etc., (4) price of transfer and terms and conditions.
(3) Themarital status ofallparties mustbegiven. W h e n amarried
womanexecutesadeedshemustbeauthorizedbyherhusband. T h e
husbandacts aloneinthe sale ofcommunity property; the signature
o f t h e w i f e being unnecessary.
Corporations. Anynumberofpersons, exceedingsix, mayform
themselves into corporations for literary, scientific, religious, a n d
charitablepurposes; forworks ofpublic improvement, andgenerally
allworksofpublicutilityandadvantage;andanynumberofpersons,
notlessthan three, m a y f o r m themselves into acorporation forthe
purposeofcarryingonmechanical,mining,ormanufacturingbusiness,
exceptdistilling ormanufacturingintoxicating liquors, with acapital
notless than $5.000 or more than $1,000,000. A n y number of per-
sons,notless thanthree, mayformthemselvesintoacorporationon
complyingwiththegeneral corporationlaws. forthepurposeofcarr-
wherethereisnoheirpresentoragentofhelr, publicadministrator
ingonanylawfulbusiness orenterprisenototherwise specially pro-
takescharge. A non-residentexecutorofawill must inallcasesgive
specialact conferring corporate powers. Corporation committinga
bond;aresidentdoes not unless requiredby creditors. Administratorsandexecutors of other states mustopen successionofdeceased
inthecourtsofthisState,andberecognizedassuchherebeforethey
cansueorbesuedortransferpropertyinthis State. Stock inlocal
corporations m a y b e
transferred by non-resident, executors, etc..
without the necessityofsecuringanorderfrom thelocal court,but
n o t r a n s f e r c a n b e m a d e untiltheinheritancetax isadjusted.
Affidavits. (SeeAcknowledgments.)
Aliens. Thereisno law excluding them from buying orholding
lands. Theyareonly excludedfromvoting.
Arbitration. Agreements tosubmittoarbitrationrecognizedby
law. Arbitrators must be sworn, otherwise decision isnot binding.
Stateboard of arbitration of labor troubles established. [Act 139
of1894.]
vided for, except stock-jobbing. The legislature cannot pass a
trespass or d a m a g e m a y be sued at place whereit occurred. [Act
22 of 1894.] All corporations hereafter organized must have their
charters, etc., recordedin the office of the secretary ofstate. [Act
59of1898.] (Seeact154of1902forformationofcorporations for
worksofpublicimprovement.)
A c t 1 2 0 o f 1 9 0 2 providesfor organIzation, etc. of local andforeign building a n d loan or homestead
associations. Three or more persons m a y form a corporation to
carry onanybusinessspecifiedincharter that wouldbe lawful for
a n y individual to carry on. M a y carry on a n y n a m e d businessor
differentbranchesofbusiness, whether related or not. Must have
capitalofnot less than $3,000. [ A c t 7 8 o f 1904.]
No corporation
candeclaredividends outofitscapital stock, underpenalty of for-
feiture of its charter. Meetings of corporations must be held at
domicile ( A c t 6 3 o
f
1
9
1
0
)
.
F
o
r
e
i
g
n
C
o
r
p
o
r
a
t
i
o
n
s may be licensedand taxedbya modediffere n t f r o m t h a t provided forhomecorporations. N o d o m e s t i c o r for-
Arrestfordebtmaybemadeonaffidavitthatthedebtisreally
eigncorporationsshalldoanybusinessinthisStatewithouthaving
thatdebtorisabouttoremove
due,andthatpetitionerverilybelieves
known places of business and an authorized agent or
fromtheStatepermanently, withoutleavinginitsufficientproperty | oneormore
agentsintheStateuponwhomprocess may beserved. All corporatosatisfyhisdemand; andthathedoesnot takehisoathwithinten-
tionofvexingdebtor,butonlyinordertos
ecurehisdemand. Debtortions(exceptmercantilecorporations)domiciledoutoftheStateand
bygivingbond, bymaking doingbusinessin the Stateindefault of filing with thesecretary of
maybedischarged bydisprovingfacts;
surrender, by delivering to sheriff property sufficient to satisfy
demand. Arrest of the debtor only secureshis presence to answer
thesuit; hecannot be held for the payment ofthe debt. Minors,
interdictedperson and women not subject to arrest for debt.
stateadeclarationoftheplaceofitslocalityordomiciletogetherwith
thenameofitsagentintheStateuponwhomserviceofprocessmay
bemade, may besueduponanycauseofactioninanyparish where
t h e right of actionarises.
byNationalBankruptcyact.
Attachment. Writsofattachment issueonapplicationofcreditor,underoath, whenthe debtor residesout oftheState; whenhe
Foreigncorporationsmustfileinofficeofsecretaryofstateawritten
declaration setting forth and containing theplace orlocality of its
domicile, theplaces in the State whereitisdoing business, and the
nameofitsagentorotherofficerinthisStateuponwhomprocessmay
be served. ( A c t 5 4 o f 1 9 0 4 a m e n d e d by Act 284 of 1908. Act 284
of1908amendedbyAct243of1912. SeeAct194of1912.)
defraudhiscreditorsorgiveanunfairpreferencetosomeofthem;
previous acts and undertakes to embody in one act all essentialdetailswith respectto the organization, powerandduties
moneyorevidencesofdebtwithintenttoplaceitbeyondthereach
of trading corporations, foreign a n d domestic. (As to nontrading corporations see Act 259 of 1914.)
Assignments and Insolvency. StateInsolventlawssuperseded
concealshimselftoavoidbeingcited;whenhehasmortgaged,assigned
ordisposed of, or is about to mortgage, assign, or dispose of his
- property, rights, or credits, or some part thereof, with intent to
andwhenhe hasconverted, orisabouttoconvert, his propertyinto
ofhiscreditors, or,ifdebtnotdue,isabout to removehisproperty
o u t o f t h e State.
Creditor m u s t furnish bond equal to the a m o u n t
elalmedtobedue,with
solvent
residingwithin
A c t 267 of 1914 relating to corporations repealed several
Courts. TermsandJurisdiction. InparishesotherthanOrleans:
Justices' courts-exclusive jurisdiction up to $50, and concurrent
thejurisdictionofthecourt,aditionedforpaymenttoanyparty withthedistrictcourts'
,
b
ets
tuj
whe
0no
acnst
dru
$o1
se
ci
tie
wtnbetween$50and$100;exclusive
e$
rr5
uc
ct0
ci0
rt.
siD5.2
courts,
for
Injuredby issuanceofwritofalldamages sustained byhimincase
Itisdecided that the attachment was wrongfully obtained. (Act
No. 7.1888.) Garnishmentmaybehadas anaccessory eitherto
& w r i t of attachment or fieri facias.
Banks. Banking corporations organized under banking laws
adoptedin1853
, 1892,andin1902. Savings,
deposit, andtrustcompanlesprovidedforbyAct 150ofyear1888,
amendedbyAct95of1892, whichisnowamendedby Act 189 of
1902. The number of persons organizing must exceed five. No
special actof incorporation can be passed. By Act 189 of1902,
thegeneralbankingactof1855andtheamendaryactsof1888and
of1892 are amended as follows:
1. Period of time must be fixed
inactnottoexceedninety-nineyears.
2.
Bankscannotholdreal
estateforlongertimethan fiveyears, except such as necessary for
thetransaction of their business, or except that held as agent or
trustee. 3. AllmanagersanddirectorsshallbecitizensofLouisiana.
4. Safedepositsandtrustbankswithoutpowertoissue bank notes.
maybeorganizedunderthis lawwithacapital of$50,000ormore.
business. In Incorporatedtowns withless than 20,000 Inhabitants
ofwhichcapitalatleast$10,000shallbepaidupbeforecommencing
musthavecash capitalofnotlessthan $30,000, whichmustbepald
up before can commence business. It may be made a receiver.
trustee, assignee or syndic, and execute trusts ofeverydescription.
Money or other valuables deposited by married women or minors
maybedrawnoutwithouttheauthorityoftheirhusbandsortutors.
UnderAct45of1902,banksorganizedtodoasavings,safedeposit
allcivilmattersover$100,andinallprobatemattersandappellate
jurisdictioninallcivilmattersinjustices' courts. InOrleans parish:
1. Citycourts-exclusive jurisdictionupto$100. 2. Civildistrict
courts-exclusive over $100. Justices and city courts open at all
times. InparishesotherthanOrleans,districtcourtsshallholdcontinuoussessionsduringtenmonthsoftheyear. InparishofOrleans,
civildistrictcourt sits from October 15th to endofJune, butshall
remainopenonalllegaldaysduringthewholeyearforgrantinginterlocutory orders, issuing writs, trials of rules to quash same, trying
proceedings instituted, or on appeal therein by a landlord for the
possessionof leased property, partition proceedings, and for such
specialprobateandinsolvencybusiness,asthecourtenbancmay by
ruledetermine. Onallamountsup to $2,000, Inclusive, anappeal
maybetakentothecourtofappeals, from thecityanddistrictcourts
respectively, and onall amounts over $2,000, to the statesupreme
court. Anappealliesonbothlawandfacts. Appealsfromthecity
courtsshallbetrieddenovo.
D a y s ofGrace.
Abolished.
Depositions. To take testimony ofwitnessresidingoutofparish
orStateItis necessary to file motiondulysworntoshowingnon-resid e n c e a n d materiality of evidence. WrittenInterrogatoriesarepreparedandserved onoppositeparty, orhiscounsel,whohasthreedays
Inwhich to cross. Commission then Issues, directed to some proper
officer, with interrogatories a n d cross Interrogatories annexed, w h o
mustcausewitnesstoappearbeforenim toanswerunderoaththe
1404
BANKING A N D COMMERCIAL LAWS-LOUISIANA
direct and the cross interrogatories. He should reduce answerto
writing, read sameto witnessand cause witness tosign same. The
officerthenpreparesaprocessverbalofthewhole, attachesittothe
commission,Interrogatories,etc.,andshouldreturnsametothecourt
issuingthecommission withinthetimefixed thereinfortakingthe
deposition. Thedepositionofafugitivefromjusticeisnotadmissible
inevidence. (AlsoseeAct176of1910.)
Descent. Ifone dies leaving no descendants, but a father and
motherand a brotherand sister, or descendants ofthese last, the
succession isdivided into two equal parts, one goes to fatherand
mother, the otherto brothers and sisters ortheir descendants. If
eltherfatherormotherofdeceaseddiesbeforehim,theportionwhich
would have been inherited by such deceased parent goes to the
brothersandsistersofthedeceased,ortheirdescendants. Ifdeceased
leftneitherdescendantsnorbrothersnorsisters,nordescendantsfrom
them, norfathernormother, butonlyotherascendants, theyinherit
tothe exclusion of all collaterals. Ifascendants in paternal and
maternallinesareall ofthesamedegree, theestate isdivided into
twoparts, one goesto ascendants on the paternal and theotherto
ascendants onthe maternal side. Ifthereisinthenearestdegree
butoneascendantinthetwolinessuchascendant excludes allother
ascendantsofamoreremotedegree. Ifonediesleaving no descendants, and his father and mother survive, his brothers and sisters,
ortheirdescendants,takehalfofhisestate. Ifthefatherormother
onlysurvive, brothers and sisters, ortheir descendants, takethreefourths. Ifonedies leaving no descendants nor father nor mother,
his brothers and sisters or their descendants, take all the estate.
The partition ofthehalf, thethree-fourths, orthewhole ofa successionfallingtobrotherxandsistersasabovesetforth,ismadeequal
iftheyareofthesamemarriage,ifofdifferen marriagesthesuccession
isequally divided between the paternal and maternal lines ofthe
deceased. If deceased died without descendants, leaving neither
brothers nor sisters, nor descendants from them, nor mother nor
father,norascendantsinthepaternalormaternallines,hissuccession
passes to his other collateral relations, the one nearest in degree
excluding the others. When the deceased has left neither lawful
descendants norlawful ascendants, nor collateral relations, thelaw
calls to his inheritance eitherthesurviving husband or wife, orhis
or her natural children, or the State. If natural mother left no
lawful children ordescendants, her natural children, acknowledged
byher, inherit totheexclusion ofherfatherand mother and other
ascendants orcollateralsoflawfulkindred. Naturalchildreninherit
fromtheirnaturalfather,whohasacknowledgedthem, whenhehas
left no descendants nor ascendants, nor collateral relations, nor
surviving wife, and to the exclusion only ofthe State. Donations
intervivosormortiscausacannotexceed two-thirds oftheproperty
ofthedisposerifheleaveat hisdeceasealegitimatechild, one-half
ifheleaves two children, and one-third ifheleaves three or more.
Aninheritancetaxislevied uponallinheritances,legacies and donations, providedno directinheritanceor donation toan ascendant or
descendantbelow$10,000shallbetaxed. Taxis2percentondirect
inheritancesanddonationstoascendantsordescendantsorsurviving
wifeorhusbandand5percentforcollateralinheritancesanddonations
collaterals or strangers. Bequests to educational, religious or
to
charitableinstitutions are exempt. Inheritance tax not due when
property inherited, bequeathed ordonated shall have borne itsjust
proportionoftaxespriortotimeofsuchdonation,bequest,orinheritance. R. C. C.915 amended toread "Inallcaseswhen eitherhusband or wife shall die leaving no descendants, nor ascendants and
withouthavingdisposedbylastwillandtestamentofhisorhershare
inthecommunityproperty,suchundisposedofshareshallbeinherited
bythesurvivorin full ownership." (Act 57 of1910.)
Dower. (SeeMarried Women.)
Execution. Property taken underawritoffieri facias mustbe
advertisedandappraised,andcannotbesoldforlessthantwo-thirds
oftheappraised value, untilithas been re-advertised. Advertisements of movablesthree times inten days-of real estate once a
weekforthirty days. Iftwo-thirds ofappraised value isnot bid.
propertymustbe re-advertised forfifteendays,andsoldonacredit
fortwelvemonthsforwhateveritwillbring. Thereisnoredemption
ofpropertysoldunderexecutionormortgage. Nostayofexecution
isgivenexceptonappeal,andexecutionmayissueatanytimeafter
thedelay for appealing suspensively has expired. Act 113 of1906
authorizessheriffsandconstablestoputpurchaserofseizedproperty
inpossession.
Exemptions. Toheadoffamily,realestateifownedandoccupied
as a residence, togetherwith certain furniture, stock, implements.
provisions, etc.;thepropertynottoexceed $2,000,and providedthe
personclaimingthebenefitofthehomesteadexecuteawrittendeclaration ofhomestead (Acts 1880, No. 114), and no exemptionifwife
has separate property worth over $2,000. No registry required in
parishes otherthan Örleans. (Operative Jan. 1,1899.) Widowor
minorchildren surviving isentitled to $1,000 out ofdeceased husband's estate, ifin necessitous circumstances, by preference over
even a first-mortgage creditor. Sheriff or constable
not seize
linenand clothesofdebtororhiswife,nor his bed, norcan
those ofhis
family,norhisarmsandmilitaryaccoutrements,nortoolsand Instrumentsand books, sewing machinesnecessary fortheexercise ofhis
orhercalling, trade, orprofession, bywhichhemakes aliving.the
rightofpersonalservitude,ofuseandhabitation, ofusufructtothe
estateofaminorchild,theincomeoftotalproperty, moneyduefor
salaryofanofficer,wagesorrecompenseforpersonalservice(laborers'
wages) cooking stove, plates, etc., family portraits, musical instrumentsplayed onbyfamily. (Acts 1876, No. 79.)
Fraudvitiatesallcontracts. Actionbarredbyoneyearlimitation
Forfraudonpartofpurchasers
toannualsaleonaccountoffraud.
ofgoodsseeAct 114of1912amending Act94of1896.
Garnishment. Wages earnedoutofthis Stateand payableout
ofthis State,shallbeexemptfromattachment orgarnishmentinall
caseswherecauseofactionaroseoutofthis State,anditshallbethe
dutyofgarnisheesinsuchcasesto
plead such exemptionunlessthe
defendantisactuallyservedwithprocess.
[Act 165 of1904.] (See
Attachment.)
Husbandand Wife. (See Married Women.)
Interest. Legalrateis5percent,but8percentmaybeagreed
uponinwriting. Ifhigherthan8percentischarged,itisreducible
to8 percent. Ifpald,itmaybesuedforandrecoveredwithintwo
years.
Judgmentsrecorded inthe office oftheparish recorderbecome
mortgagesfromdateofrecorduponallrealestateofthedebtor. and
maybethusrecordedinany parishwheredebtorownsreal estate.
Theyarevalidfortenyears,whentheymustberenewed.
Liensor Privileges. Thefollowinghavespecialprivileges, viz.:
1. Lessor's privilege. 2.
Privilege of the creditor on the thing
pledged. 3. Privilegeofadepositoronthepriceofathingdeposited.
4. Privilegeforexpensesincurredinpreservingthing.
ofthevendorofmovableeffectssolongastheyareinthepossession5. Privilege
ofthevendee. 6. Privilege oftheinnkeeperontheeffectsofthe
traveler. Privilegesresting
upon Immovables are as follows, viz.:
1. Thevendorontheestatebyhimsold,forthepayment ofthe
priceorsomuchofitasisunpaid,whetheritwassoldonorwithout
ricklayers. painters, master
a credit, 2. Architects, undertakers, b
bullders, contractors, sub-contractors, journeymen, laborers, cartmen, and other workmen employed inconstructing, rebuilding, or
repairing houses, bulldings, ormakingotherworks. 3.Thosewho
have supplied the owner orotherperson employedbytheowner.
hisagent, orsub-contractor,withmaterialsofanykindfortheco
structionorrepairofan edificeorotherwork,whensuchmaterials
havebeenusedintheerectionorrepairofsuchhousesorotherworks
[Art. 3252.] Privilege oncropsto berecorded(Actof1890.) The
vendorofanagriculturalproductoftheUnitedStateshasafiveday
privilegeforunpaidpurchasepriceinpreferencetoallothers. Priv
legegranted employesinsawmills,etc. (Act145of1888,amende
byact52of1910andact23of1912.
Limitations to Suits. Prescription-Accounts stated and
acknowledged in writing are prescribed onlybytenyears. [Actof
1888.] Personalactionsoneyear: Actionfortortsofallkinds;for
injurytoornon-deliveryofmerchandiseshippedonvessels;forfees
ofJustice,notary,orconstable;forinnkeepers accounts;foraccoun
ofretailersofliquors;forwagesoflaborersorsailors;forfreight;and
fortuition by month. Threeyears: Actionforarrearagesofret
charges,orhireofmovablesorimmovablesormoneylent;forsalaries
ofoverseers,clerks,ortuitionbyquarteroryear;forfeesofphysicians.
apothecaries, attorneys, sheriffs, clerks, and recorders; onoper
accountsofmerchants,whetherwholesaleorretail,andothers. Four
years: Actions byminorsagainsttheirtutors, countingfouryear
frommajority. Fiveyears: Actiononbillsofexchangeorpromis
sory notes, counting frommaturity, andfornullityofcontractsof
wills;forrecisionofpartitions;tosetasidepublicandjudicialsales
for informalities. Ten years: All otheractions;therighttoa
fructorservitude;alljudgments,whetherrenderedwithinorwithout
the State, butjudgmentsmayberevivedbeforelapseoftenyear
andarethengood fortenyearsfromdateofrevival. Prescriptio
doesnotrunagainstminorsorpersonsunderinterdiction. Husban
andwifecannotprescribeagainsteachother.
Limited Partnership. (SeePartnership.)
Married Women. Separatepropertyofwifemaybecontrolled
byher. Revenuesofallseparatepropertyadministeredbythebu
band,andallpropertyacquiredbyeitherhusbandorwifeafterma
riage,exceptbydonationorinheritanceconstitutepartofcommun
unless bought with theseparate meansofeitherandasasepara!
acquisition. Amarriedwomancannotsuewithouttheconcurre
ofher husband orthe authorization ofthecourt, andshecan
bind herselfor her property forhis debts. Wifehasnodower
her husband's real extate. Thewifecanhavenoclaimuponth
property ofthe husband tothe prejudice ofthirdparties,un
recorded. Where one ofthespousesisagentfortheother,bef
she maybewitness fortheotherina matterconnectedwithth
transaction. Afterdissolutionofmarriagebydeathordivorcethe
survivoris entitledto one-halfofallpropertyremainingaftera
ment ofdebts, acquired duringmarriage, andincaseofdeath
usufruct oftheotherhalf,unlessthishalfisdisposedofby f
Wife cannot beawitnesstohusband'swill.
deceased
spouse.
Mortgages
canbe foreclosed atanytimeaftermaturityofthe
debt,byinstitutingaregularsuitandobtainingjudgmentthereonof
iftheactimportsaconfessionofjudgmentinfavoroftheholder.
canapplytothecourtforanorderdirectingthesherifftoseizea
selltheproperty. Allmortgagesmustberecordedbeforetheyca
haveanyeffectasagainst thirdparties. Trustdeedsarenotleg
and chattel mortgagesareunknowntothelawsofLouisianaexcep
asstatedunderheading"chattelmortgages."
ne
AlltacTihtemroerits
gn
ao
gr
ee
sd
he
av
t
ion of property
rtgage.
beenabolished
sinscoeld187under
0. Inmomakingsales
orgivingamortga
uponhisproperty,itisnotnecessaryforthehusbandtoobtainthe
signatureofthewife. Amortgageresultingfromrecordingajudgme
cannothavethateffectuntilafteradjournmentofcourt.
s obligatedtoerect
e e s s e L b)uild
8ing8
cedpA
(rty,can
s,et9c..1
upontleas
rope
mortgagethe lease, togetherwiththeimprovements,etc. (Act
Leases andcontractstoexploreforoil,gasandminera
of1908.) e
maybemortgaged
l
b
a
i
t
o
g
e
N
.
)
0
1
9
1
f
o
2
3
2
t
c
A
(
Instruments.
"Negotiable Instrument Act"(No
64of 1904) changesinmanyrespectsthelawsformerlyapplicableto
Underit,daysofgrace,whichformerlywerecusto
ary,areabolished.
Instrumentsarepayabletobearerifmadepaya
billsandnotes.
totheorderof
o
t
n
w
o
n
k
s
t
c
a
f
h
c
u
s
n
e
h
w
,
n
o
s
r
e
p
g
n
i
t
s
i
x
e
n
o
n
r
o
s
u
o
i
t
i
t
c
i
f
a makingit sopayable;whennameofpayeedoes
theone
mentisin
dnasdrowehtneewtebycnb
ape
lrc
a
sin
das
kie
.rehtnehW
not the figuresofaninstrument,thesumdenotedbythewordsa
pi
en
rt
sl
oy
na
sn
sd
is
ge
nv
ie
nr
ga
il
nlsytlrluambelnettchoenrteao
ingwords,"IpromisetoT
pw
ao
yo
,r
"m
ao
rr
ee
jo
Presentment
for payment isunnecessaryto bindpartyprimary
payable.
thesum
liable. butisnecessarytochargedrawerorIndorser. Noticeofdis
honor must begiventodrawerandindorserwheninstrumentbas
beendishonored by non-acceptanceornon-payment,otherwisethey
aredischarged. Abillofexchangedoesnotoperateanassignment
offundsinhandsofdraweeavailableforpaymentthereof,anddrawer
oe
la
de
is
rd
ea
e
tr
tm
haeybrielqlua
ic
sc
he
opntoarnecd
tobewritten onbill,andifrefusedmaytHr
Anacceptance written onpaperotherthanabill,andanuncond
isnotliabletillheacceptssame.
tionalwritten promise toacceptabillbeforeItisdrawn.bindsthe
acceptor onlyinfavorofapurchaser forvalueonfaiththerect
Drawee hastwenty-fourhourstodecidewhetherhewillacceptor
Adraweewhodestroys abillpresentedtohimforacceptance.
orwhofailstoreturnthebillwithintwenty-fourhours,isdeemedto
issoplacedupo
thesame.
haveaccepted
n
thatitWhereasignature
isnotclearinwhatcapacitytheperson
noetg.otiable instrument
rel
making sameintended tosign,heisdeemedanindorser. Fo
billsmustbeprotested fornon-acceptance ornon-payment. Where
onitsfacetobeaforeignbill,protestthere
abilldoesnotappear
.
A
c
h
e
c
k
m
u
s
t
b
e
p
r
e
s
e
n
t
e
d
for
isunnecessary
Incaseofdishonor
payment withinareasonable timeordrawerwillbedischargedfrom
anylosscausedbydelay. Bankisnotliabletoholderofachec
WhenthelastdaytodoanA
requiredorpermittedtobedoneundertheactfallsonaSundayof
legalholiday,itmaybedoneonthenextsucceedingsecularorbus
until itaccepts
orcertifiessame.
WhendayofmaturityfallsonaSundayoraholiday,the
Instrumentispayableonnextsucceedingbusinessday. Instruments
falling due on Saturdayareto bepresentedforpaymentonnext
succeedingbusinessday,exceptthatinstrumentspayableondemand
nessday.
may,atoptionofholder,bepresentedforpaymentbefore12o'clock
noonon Saturdaywhenthatentiredayisnotaholiday. Iftheday
ordaysnextsucceedingtheprotestfornon-acceptanceornon-par
mentshallbedaysofpublicrestorlegalholidaysorlegalballbol
days,thenthedaynextfollowingshallbecomputedasthefirstday
"Serviceofcitationshallnotbewalved,notju
mentconfessed, byanydocumentunderprivatesignatureexecuted
priortothematurityoftheobligationsuedon." [Article91,Canstitution 1898.] Acceptance must bein writingandsignedb
aftertheprotest.
Itmustnotexpressthatdraweewillperformhispromises
.pLimitedand
ihsrentraP3S
8p3e9
1aflo.98S1
clA
byany othermeansthanpaymentofmoney.
ci
titpu
at(ionsthatoneshall
participateintheprofitsandshallnotcontributetolossesisred.
drawee.
bothasregardspartnersandthirdpersons. Partnershipsaredivided
astotheirobjectintocommercialandordinarypartnerships. Com
mercialpartnershipsaresuchasareformed: 1.Forthepurchase
ofany personalproperty, andthesalethereofeitherinthesame
state or changed by manufacture. 2. Forbuyingorsellingany
personalpropertywhatever,asfactorsorbrokers. 3.Forcarryi
personalpropertyforhire,inshipsorothervessels. Ordinarypar
BANKING AND COMMERCIAL L A W S - M A I N E
1405
nershipsareallsuchasarenotcommercial. Thereisalsoaspecies plaint,filedwithclerkofcourtandsubpænaissuedbyhim,ormay
beinsertedinwritofattachmentandservedbycopyofbillandwrit.
ofpartnership which maybeincorporatedwitheitheroftheother
kinds,calledpartnershipincommendam. Itisformedbycontract.
bywhichonepersonorpartnershipagreestofurnishanotherperson
orpartnershipacertainamount,eltherinpropertyormoney, tobe
Onmotionnon-residentplaintiffs required togivesecurity for costs.
Administration ofEstate.
(SeeEstates ofDeceasedPersons.)
employed by the person or partnership to whomit isfurnished, in
hisor their own name or firm, oncondition, ofreceivingashare in
Affidavits. Affidavits may be made before a notary public or
Justiceofthepeace. Insomecourtmattersauthority ofmagistrate
Partnerincommendamcannotbindotherpartnersbyhisact. Partnershipincommendammustbemadeinwriting;mustexpressamount
furnishedoragreed to be furnished; the proportionofprofitswhich
partneristoreceiveandexpensesandlosesheistobear;muststate
whetherit be received ingoods or money, etc.: mustbe signedby
partiesinpresenceofatleastonewitnessandrecordedinfull within
sixdaysinmortgageoffice. Ifbranchhousesareestablishedthecontract must be recorded in parish where branches are located. If
partner incommendamallowhisnametobeused, orifhe takeany
partinthebusinessofthepartnership,hewillbeliableasageneral
partner. Ordinary partners are not bound in solido for debts of
partnership, and no one ofthem can bind his partnersunlessthey
havegivenhimpowertodoso;eachisboundforhisshareofthedebt
Inproportionto the number ofpartners. Commercial partnersare
eachliablefortheentiredebtsofthe partnership.
Powers of Attorney. M a y b e written ororal. M a y be either
generalforallaffairsorspecialforoneaffaironly. Oneconceivedin
general termsconfers only powerofadministration;tosellmortgage
o r d o any otheract ofownership, the powermust be express and
property. Willsofallensmay beprovedandallowedinthisState.
WidowofacitizenofUnitedStateswhowasanallenwhenshemarried
himhasrightofdescentinhisestate(butseeMarriedWomen).
Arbitration. Judgeofprobatecourtmayauthorizeexecutorsor
administrators to adjust by arbitration claims for or against the
estates represented by them. All controversies which may bethe
subjectofpersonalactionmaybesubmitted,bytheparties,toreferees
forarbitration. Majorityofreferees m a y m a k e report to Supreme
stbeprovAliens
edbycer
tificateofclerkofacourtofrecord.
t
heprofits,intheproportiondeterminedbythecontract,andofbeing muAliens.
llableto losses a n d expenses t o t h e a m o u n t furnishedand no more.
may hold and convey real estate and personal
orSuperiorCourts.
Arrest. (See Executions.) In actionsexdelicto,onmesneproessandexecution,asofcoursewithoutaffidavitororder; in actions
excontractu, on mesne process, upon affidavit of the creditor, his
agent, or attorney, that hehas reason to believeand does belleve
that the debtor is about to depart and residebeyondthe limits of
t h e S t a t e a n d c a r r y w i t h h i m m e a n s o f h i s o w n m o r e t h a n a r e neces-
saryforhisimmediatesupport,andthatat least$10isdueonthe
claim;onexecution,onlyaftersupplementaryproceedingsandfraud
proven, but ifcontractjudgmentor action existing March 17, 1887,
arrestonexecution. Debtorsarrestedonmesneprocessorexecution
special.
maydisclose, give up property not exemptfrom attachmentandbe
dischargedfromarrest,ormaygivebondanddiscloseaccordingto its
Probate Law. Thereisnospecialprobatecourt. Districtcourts
are vested with probate jurisdiction. Successions are openedupon
petitionofInterestedpersonsintheparishwherethedeceasedresided,
ifhe had adomicile or fixedplaceofresidence in thestate;inthe
parish where he left his landed property, ifhe had neitherdomicile
terms. Noarrestinactionsexcontractuforlessthan$10,andnone
ofmarriedwomenincivilactions.
Assignments. C o m m o n l a w assignments for the benefit of
creditors m a y b e m a d e , andafterfour monthswillbe good against
norplaceofresidenceinthestate;orintheparishinwhichitappears
bankruptcy proceedings. Assignments of wages must be recorded
from the inventory that his principal property was situated, ifhe
leftproperty inseveral parishes;Inthe parish where he died, ifhe
hadnocertaindomicile norany fixedproperty. Thejudgeappoints
anadministratorwhendeceasedleavesnowill.
Intownclerk's office.
A t t a c h m e n t . Allpropertynotexemptattachableonmesneproc-
ess as ofcourse withoutaffidavit; securityforcostsby indorser of
Administrators must
writonly ifcreditorisnon-resident;lienbyattachmentsintheorder
renderannualaccounts,andareallowed21-2percentontheinventory as commissions.
Inwhich they are made continue for thirty days after judgment
Attorneys at law are appointed to represent
absentheirs. Propertiesacquiredduringmarriagearepresumedto (extendedwhereexecutionisdelayed,appealfromtaxationofcosts
becommunity property, andsurviving spouse is owner ofone-half. istaken, ordecision oflaw court certifieddown invacation), within
Wheneltherhusbandorwifedies, leaving noascendantsordescendants, and without havingdisposedby willofhis orhershareinthe
community, the survivor holds such share inusufruct during his or
whichtimelevymaybemade. Personalpropertymaybeappraised
andsold on mesne process to avoid expense, depreciation or loss.
onrequestofeitherpartyand proceedsheldby officer inlieu ofthe
property;foreignattachment(garnishment),knownastrusteeprocess.
attaches propertyby ordebtdue from trustee unless: 1. Due on
negotiable paper. 2. Money collected on process by officer. 3.
Inhands of public officer. 4. Due on contingency. 5. Trustee
llabletoexecutiononsame. 6. Twentydollarswages,forpersonal
hernaturallife. (SeeSuccessions.)
Protest.
(SeeNegotiableInstruments.)
Separation from Bed and Board. Maybeclaimedreciprocally
for: 1. Adultery. 2. W h e n spousecondemned to infamouspunishment. 3. Habitual intemperance, excesses, cruel treatment, or
outrages,whensuchrenderslivingtogetherinsupportable. 4. Public
defamation of one spouse by the other. 5. Abandonment. 6.
Attemptof one spouse against life ofother. 7. Whenonespouse
charged with Infamous offense actually flees from justice.
Taxes.
Taxes onreal estatecannotbeenforceduntiltheexpira-
tionoftheyear forwhich they arelevied and afterlegalnoticesto
delinquentsandadvertisement. Landssoldfortaxesareredeemable
withinoneyear, by the owner, his agent, orheirs, oranycreditor,
onpaymentofthepurchase money, with 20percent interestand
costs,andallsubsequenttaxespald. Landssoldfortaxesdueprior
to1880arenotredeemable. statetaxesare59-20millsonthedollar.
and parish taxes not exceeding ten mills; city of N e w Orleans tax
2.02 percent. Delinquent state taxesbearinterestat 2percent a
month, city taxes, 10 percent ayear.
Wills. There are four different kinds of wills, viz.: The olo-
graphic,nuncupativebypublicact,nuncupativebyprivateact,and
mystic(orsealed) will. Theolographicwillmustbewhollywritten.
dated,andsignedbythetestator,andmaybemadewithinorwithout the State. Nuncupative will by publicact as written by a
notaryinpresence ofthree witnesses, overtheageof16years complete, not Insane, deaf, dumb or blind, residing intheplace where
willis executed, or five witnesses not residents oftheplace, at the
dictationofthetestator. Nuncupativewillbyprivateactandmystic
willsaresubjecttomanyformalitieswhichmaybebestobtainedby
referencetoCivilCodeArts, 1581-1587 both inclusive. All persons
ofsoundmindoversixteenyearsofagemaydisposeoftheirproperty
by will. Wills executed without the state given force and effect
providedsamebeinwriting and subscribed by testatorandfollows
formofplacewhereexecuted. (Seeact 176of1912.)
laborof the debtor, wifeor minorchild w i t h i n o n e m o n t h , a n d $10
1
exemptinall cases. 7. In certain cases money due on life and
accident policies, and from fraternal beneficiary associations. (See
Creditors Bills.)
Banks. Savings bank business and discount banking_permitted
onlyunderspecialcharter,andunderstate supervision. Trustcompantesmaybeorganizedundergeneralstatutesonobtainingapproval
ofstatebank examiner. GeneralstatutesrelatingtodiscountbankIngrepealedbyLaws1903,.166. Foreignbankingassociationshavingabranchherepayataxofthree-fourthsofonepercentperannum
o n t h e a m o u n t ofbusinessdone inthis State.
Savingsbankshave
nocapital, anddobusiness onlyforthe benefit ofdepositors, under
statute regulations restricting Investments, requiring reports under
oathandexaminationsbybankexaminer. Mustnotpayover21-2
per centdividendsemi-annually. Franchise tax isfive-eighths per
cent,regulatedtofavorhomeinvestments. Useofthewords"bank,"
"trust company," and similar words indesignating abusiness, forbidden, except bycorporations organizedasabove or underlaws of
UnitedStates. Corporations, iflicensedbybankcommissioner,may
receive savings deposits from theiremployees. Dealers in securities
mustberegisteredwith bankcommissioner and aresubject tocertain
regulations.
Collaterals.
(SeeMortgages.)
Conditional Sales, Consignments. Noagreementthatpersonal
propertybargainedanddeliveredtoanothershallremaintheproperty
oftheselleruntilpaidfor,isvalidunlessinwritingandsignedbythe
persontobebound. Such agreement,inwhateverformitmaybe,
isnotvalidexceptasbetweenoriginalparties,unlessrecordedinthe
officeoftheclerk ofthetowninwhichthepurchaserresides at the
timeofthe purchase. Thisdoes not apply to goods consigned for
sale.
C o n v e y a n c e s . (SeeDeeds.)
Corporations. Threeormorepersonsmayform acorporationto
carryonanylawfulbusinessexceptingbanking,insurance,constructingandoperating railroads, savings banks, trustcompanies, or corporations intendedtoderive profitsfrom theloanoruseof money.
a n d safe deposit companies, but corporations m a y be formed under
thegenerallawfortheconstructionandoperationofrailroadsoutside
theStateofMaine. Corporations for other purposes, excepting for
municipal purposes,andwheretheobjectsofthecorporationcannot
beattainedwithoutspecial acts, arealsoformedundergeneral laws.
Organizationbecomes voidunlesscorporationbeginsbusinesswithin
two years. Corporation maycapitalizetoanunlimited amountand
mayincreaseordecreasetheamountoftheircapitalortheparvalue
oftheshares. No portionofcapitalisrequiredtobepaid in; stock
m a y be issued for property or for services and inabsence of fraud
S Y N O P S I S OF
T H E L A W S OF M A I N E
R E L A T I N G TO
BANKING AND COMMERCIAL USAGES
thejudgmentofthedirectorsas to the valueofsuch property or
services is conclusive, the stock thereupon becoming fully paid.
Only original subscribers and takers ofstock areliableon same to
extentofunpaidparvalueandthenonlyfordebtscontractedduring
theirownershipofstock,andactiontoenforcesuchliabilitymustbe
commencedwithintwoyearsandcanbemaintainedonlybyajudgmentcreditorofthe corporationwho shallhavebegun proceedings
to obtainsuch judgment against the corporationduring theownershipofsuchstockorwithinoneyearafteritstransferbysuchstockholder is recorded on the corporation books. Directors must be
stockholdersormembersofanothercorporationwhichisastockholder.
Ifcorporationfailsforsixmonthstoelectdirectors,courtmayappoint.
Corporations must pay to theStateuponorganization, a feeasfol-
lows: Where the capital stockis $10,000 or less, $10; exceeding
$10,000andupthrough$500,000,$50;above$500,000,$10forevery
$100,000 of capital. Other fees for organization are: attorneygeneral'sfee $5, register ofdeeds $5, secretary of state $5. The
R e v i s e d b y M e s s r s . S E T H L. A N D S Y D N E Y B . L A R R A B E E
annual franchisetaxisasfollows: $5 provided authorized capital
doesnotexceed $50,000; exceeding $50,000andupthrough $200,000,
$10; exceeding $200,000 andup through $500,000, $50; exceeding
Attorneys at L a w . Portland.
( S e e C a r d InAttorneys' List.)
$500,000 and up through $1,000,000, $75; and the further sum of
$50 per$1,000,000 orany partthereof inexcessof$1,000,000. Corporationswhich havesuspendedbusinesstemporarilyand havebeen
excusedfromfiling returns ofamountofcapital stock, etc., are not
Acknowledgments. (SeeDeeds.)
Actions. Atlawbegunbywrit,undercommonlawpractice,but
containing declaration. Suits in equity are begun by bill of com-
liableforfranchisetax. Meetingsofstockholdersmustbeheldwithin
theState. Clerk m u s t b e residentandkeepstockholders' recordsin
the State. His records are open to Inspection by stockholders but
notbymerecreditors. Withtheexceptionofbankingcorporations
!
1406
BANKING
A N D
COMMERCIAL L A W S -
nopublic reportsare required exceptone to the secretary of state
showingnamesandresidencesofofficersandamountofcapitalstock.
Deliveryofcertificateofstocktobonafidepurchaserorpledgeefor
value together with written transfer of same or written power of
attorney to sell, assign, andtransfersame, signedby ownerofcertificate, transferstitleagainstallparties. Foreigncorporationshave
practicallysamerightsasdomestic, butarerequired tofile copyof
charterwith secretary of state, also a c o p y oftheby-laws, andare
alsorequired undersevere penaltiestofile certificate showingamong
otherthingsthenamesofofficers,amountofcapital stockauthorized,
amountissuedandamountpaidin; alsomustfilecertificateshowing
anychangeinaboveparticulars. Suchcorporationsmustalsoappoint
aresidentofMaine,having anoffice or a place of business in the
state, tobeitsattorneyonwhomprocess m a y be served inanylegal
proceeding. Corporationsmaydisposeoftheirfranchisesonmajority
voteofthe stockholders; m a y sueand be sued, a n d h a v e generally
the powers of individuals. Public service corporations are subject
to a Public Utilities Commission.
Courts. Terms and Civil Jurisdiction. Supreme judicial court:
Twoorthreetermsayearineachcounty;unlimitedjurisdictionexcept
as specified below;fulljurisdictionin equity; appellate jurisdiction
enbanoonquestions of law, from trial terms andsuperiorcourts.
Superior courts:
In Cumberland County except
equity.
realactions,extraordinarylegalremediesandsomeothers; exclusive
jurisdiction above $50 to $500, concurrent jurisdiction above $500;
sits first Tuesday of every month, except June, July, andAugust.
Kennebec County; exclusive jurisdiction, with exceptions to $500;
concurrent in habeas corpus and divorce; sits second Tuesday of
JanuaryandfirstTuesdayofAprilandSeptemberatAugusta; second
Tuesday o f J u n e a n d M o v e m b e r at Waterville. Courts ofprobate:
Usual jurisdiction of probate matters. Municipal courts and trial
justices: Exclusivejurisdictionofforcibleentry anddetainerand in
other cases up to limited amount; appeals to superior court where
established, andelsewhereto supremejudicial court.
Creditors' Bills. Bill in equity m a y be maintained to reach
property ofdebtorwhichcannotbe reached byprocessat law, and
isnotexemptfromattachment;also propertyconveyed in fraud of
creditorsandpropertysecretedsothatitisnotrepleviable.
Days ofGrace. (SeeNegotiable Instruments.)
Deeds. A n y ownerof real estatehaving right ofentrymaycon-
veyitbydeed. Noestategreaterthantenancy-at-willcanbecreated
except inwriting. Deeds must be acknowledged by a grantor or
oneofthemorbyattorneyinfact,executingthesame,beforeajustice
ofthepeace,notarypublichavingaseal, orwomanqualifiedtotake
acknowledgments;outsidetheState,andinthe UnitedStates,before
aclerkofacourtofrecordhaving aseal, notary public, orcommis-
slonerofdeedsforthisState,andinaforeigncountrybeforeanotary
public, oraconsulorministerofthe UnitedStates,butifmagistrate
acting outside of Statehas no official seal, his authority and the
genuinenessofhis signaturemustbe authenticated by the clerk of
acourtofrecordincountywhereheresides. Unacknowledgeddeeds
cannotbe recorded. No special form ofacknowledgment required.
Deeds must be recorded tobevaildagainst partles without noticeof
the conveyance. Deeds must be under seal, but witness is not
requiredfor validity although usual tohaveone. Leases for more
than seven years m u s t b e recorded. Trusts concerning real estate
canbecreated only inwriting, except those arising by implication
oflaw.
Depositions. Depositionsmaybe takenbydisinterested justice
throughage, Infirmity, or sicknessto attendat placeoftrial;when
ofthepeaceornotarypublic; maybetakenwhendeponentisunable
deponentresidesout of, orisabsent fromthe State; whendeponent
residesintownotherthanthatinwhichtrialistobeheld,etc. Depositionssotakenmay beused inallcivilsuits orcauses, petitionsfor
partitionofland,libels fordivorce, prosecutionsforthemaintenance
refereesandcountycommissioners,andincasesofcontestedsenatorial
or representative elections. Depositions or affidavits m a y also be
takeninapplications forpensions, bounty, or arrears ofpay under
a n y law of the United States. Courts m a y issue commissions to
takedepositionsoutofthe State, o r t h e y m a y be takenoutofState
byajustice, notary, or otherpersonempowered, but in the latter
caseitiswithinthediscretionofthecourtstoadmitorrejectthem.
Descent a n d Distribution of Property. (See Estates o f D e
ceasedPersons.)
D o w e r . Abolished by laws of 1895, chap. 157, taking effect as
topersonsnotthen married, M a y 1, 1895; astoothers, Jan. 1, 1897.
Wife orhusband m a y bar the right by inheritance to one-third or
one-half,asthecasemay be, ofrealty byjoining intheother'sdeed,
MAINE
thosedeceased;inequalsharesifallareofthesamedegreeofkindred
otherwise, according to the right of representation. 8. IIth
Intestateleaves no widower, widow orkindred,It escheatstothe
State. Anillegitimatechildisanheirofitsparentswhointermarty
alsoofits mother, alsoofitsfather, whoadoptsitoracknowinige
Itbeforeamagistrate;andinanycasewherethechildistreatedu
anheirItInheritsfromthelinealandcollateralkindredoftheparent
andtheyfromit. (SeeWills.)
Executionsissueaftertwenty-fourhours fromrenditionofjude
ment, returnableinthree months, renewablewithintenyearsafter
Nostayexceptbyorderofcourtforcauseandoneyearagainstabsen
defendantsunless bond filed; levied onrealestatebyappraissa
extent, also on real estate and interestsinthesameandfranchise
and personal property by sale; moneyand, byconsent, circulating
notes applied directly. Real estate sold on executionmaybete
deemed in one year. Attaching creditor may withinforty-eighs
hoursafternoticeredeempersonalpropertyofdebtorwhichissubjen
tomortgagepledge, or lien; may also redeem realestatesubjectto
mortgageorotherlien, Specialprovisionsforredemptionofcertain
otherspecialclassesofproperty,suchas buildings onleasedlands
franchises,etc.
Exemptions fromAttachmentandExecution. Homesteads
notexceeding invalue $500, whendulyregistered;debtor'sappar
necessaryfurnitureforfamily, not exceedinginvalue$100;bedand
bedding foreach two persons; familyportraits,bibles,schoolbook
inuse; Statestatutes; library, $150; regularpew; cookstovesad
ironwarming stoves; charcoal, twelvecords ofwood,fivetons
thracitecoal, fifty bushels bituminous coal, $10 worthoflumber
wood, orbark; produceoffarmstillharvested:barrelofflour,thiry
bushelsofcornand grain, potatoes forfamily, one-halfacreoffai
andmanufacturestherefromforfamily; toolsoftrade,andmaterial
and stock, $50; sewing machine, $100; pairworkingcattle,orpal
mules, orone or two horses, $300: hay tokeep them: harnessfor
eachhorseandmules, $20;horsesledoroxsled,$20;domesticfow.
$50; two swine, onecowandonehelfer, ifnooxen,horseormuk
twocows; tensheep, theirwool, theirlambsuntiloneyearold,har
tokeepthemandcattle;plow,cart,truckorexpresswagon,barrow
yokewithbows, ringandstaple, twochains, mowingmachine,
ingboatoftwotons;debtormayelectifhehasmorethanisexempt
Life and accident policies are exempt from creditors, excepta
excessof$150peryearpremiumpaidwithintwoyears,exceptsula
fornecessaries. (SeeAttachment.).
Actionofdebtliesonaforeignjudgmesi
andForeign
recordofiJudgment.
tisprimafacte
evidenceofIndebtedness. Isconclusive
exceptforfraudwhengivenby courthavingjurisdictionofpartis
andsubjectmatter.
Fraud. Usualcommonlawrulesastowhatconstitutesfraud
fraudulentrepresentations, etc.;alsostatutorypenaltiesforfraud
cheats,etc.
Courtof equityhaspowertoaffordrelief. Statuto
provisionstopreventsaleinbulkofpartorwholeofstockofmer
chandiseinfraudofcreditors.
Fraudsand Perjuries. Noactionshallbemaintaineduponany
contract to charge an executor or administrator upon any
specialpromise to answerdamagesoutofhisownestate;norto
chargeanypersonuponanyspecialpromisetoanswerforthedett
misdoingsofanother;nortochargeanypersonupon
default,
or
agreementmadeinconsiderationofmarriagenortochargeanyper
sonuponanycontractforthesaleoflands,tenements,or heredita
ments,orofanyinteresttherein;nortochargeanypersonupona
agreement thatisnottobeperformedwithinoneyearfromtar
makingthereof;nortochargeanypersonuponanycontractto a
adebtafterdischargetherefromunderbankruptlawsoftheUnited
StatesorassignmentorinsolventlawsofthisState,unlesstheprocat
contract, oragreement orsome memorandumthereofisinwri
andsignedbythepartytobecharged,orhisagent. Noactionsta
bemaintainedonaminor'scontractunlessratifiedbyhiminw
afterbecomingtwenty-oneyearsofage,exceptthecontractbe
necessarioming
the obta
benefit. Nocontractforsaleofgoods,etc.,of$30ormoreinva
isvalidunlesspurchaseracceptsorreceivesaportionofthe
orgivessomethingtobindthebargain,orinpartpaymentthe
orsomememorandumismadeandsignedbypartycharged
agent. Contractswherebyonebecomesagentforsaleoflandsbec.me
voldinoneyearunlesstimeforterminationdefinitelystated
Garnishment. (SeeAttachment.)
HusbandandWife. Eachmayholdanddealwithproperty
Individually,subjecttorightofdescentinrealestate. (SeeEsta
ofDeceased Persons.) Husbandnotliablefordebtsofwile
tractedbeforemarriage,norafterwardinherownname,nor!
. sEquityCourthas
t r o t e b s espetcia
ul pjur
sisi
dicd
tiofn o
dtwsi
feetr
e.l
artei
nrgpot
orbysoledeed,orbyante-nuptialsettlement,orbyjointure. Either husbandan.
eSixpercentoranyotherrateagreeduponinwrittag
r
nI
yt
po
refusing to join in other's conveyance m a y b e barredofinheritance
uponapplication tosupremejudicialcourtanddecreeafterhearing.
(SeeEstatesofDeceasedPersons.)
EstatesofDeceased Persons. Eighteen months after noticeof
appointment allowed creditors to present claims and suit m u s t b e
begunandserviceofprocess made within twenty months after such
notice of appointraent. Allowance to widow and minor children,
Judgments,samerate;accountsanddebtsnotontimebearInte
fromdemand. Specialrateintimenotesdoesnotcontinueafe
maturity,unlesssoprovided; norafterjudgmentinanycase
usury laws. On loans forlessthan$200, securedbymoriga
pledgeofpersonalproperty,therateshallnotexceed3perce
monthforfirstthreemonths,and15percentperannumthe
L
oansnegotiatedinthisstatebyagente
n-residentbe
m
adebycourtfromestate. Non-residentexecutororadministrator w
ithintenttoevadeusuryab seewherebnoor
rowerresides
mustappointattorney. Timeofdemandornoticeextendedforabsent
voidable.
creditor if further assets, but prior payments not disturbed thereby.
Noadministrationgrantedaftertwentyyears Therealandpersonal
estateofapersondeceasedintestate(exceptingwildlandsconveyedby
him) beingsubjecttothepaymentofdebtsdescends according tothe
following rules: 1. I f h e leaves a widow and issue, one-third to
thewidow. Ifnoissue, one-half to the widow. A n d i f n o kindred,
t h e w h o l e t o t h e w i d o w . A n d t o t h e w i d o w e r shall d e s c e n d t h e s a m e
shares in his wife's real a n d personal estate. T h e r e shall likewise
d e s c e n d to t h e w i d o w , or w i d o w e r , t h e s a m e share in all s u c h real
estateofwhich thedeceased was selzedduring coverture, andwhich
hasnotbeen barred, or released, as herein provided. In any event,
one-thirdshalldescend t o t h e w i d o w or widowerfreefrom the paymentsofdebts. 2. The remainder ofwhichhedies seized, and if
nowidower, orwidow, thewhole, together with allwild lands, shall
descendin equal sharesto his children, and to thelawful issueofa
deceased child by right of representation. If no childis living at
thetimeofhisdeath, toallhis linealdescendants; equally, ifallare
thesamedegree ofkindred; ifnot, according tothe right ofrepresentation. 3. Ifnosuchissue.Itdescendstohisfatherandmother
inequal shares. 4. Ifno such issue, orfather,itdescends one-half
tohismother. I f n o such issue or mother,it descends one-half to
hisfather. Ineithercase, theremainder, orifno suchissue, father
or mother, the whole descendsin equal shares to his brothers and
sisters, a n d w h e n a b r o t h e r orsisterhasdied, to his orher children
or grandchildren by right of representation. 5. I f n o such issue,
father,brotherorsister,Itdescendstohis mother. Ifnosuchissue,
mother, brother or sister,itdescends tohis father. In either case,
totheexclusionoftheissueofdeceased brothers and sisters. 6. If
nosuchissue,father,mother, brotherorsister,itdescendstohisnext
ofkininequal degree;whentheyclaim throughdifferentancestors,
tothoseclaiming through anearer ancestor, in preference to those
claiming through an ancestor
moreremote. 7. W h e n a minordies
unmarried, leaving property Inheritedfromeitherofhis parents,It
descends to the otherchildren of the sameparent, and the issueof
Atlaw;bygeneralorderatendoftermonalates
orcontinuedforjudgmentbyplaintift:inequity,onlyby
.
s
t
n
e
m
g
d
u
J
whereverdict ordefault, unless stayedbyproceedingsfornew
&
signedbyjustice. Nolienexceptbyvirtueofattachmenton
process (q. v.) andwherespeciallyprovidedbylaw.
Liens. (VoluminousStatuteProvisions,forMechanics.Mala
Men,HotelandBoarding-HouseKeepers,StableKeepers,A
etc.)
LimitationofActions. Sixyears:debtonunsealedcontra
lcourtnotofrecord;
la
bility(exceptjudgme
nts):actionsuponjudgmentsoutofstart
for arrearsofrent; ofaccount, assumps.
caseoncontractorliabilityexpressorimplied;waste,trespass
cl.andd.b.a.;replevin;case,exceptslanderandlibel. Four s
againstsheriff. Twoyears:assaultandbattery,falseimprison
se
lo
aongdneirz.
ie
b.
elaEnidgphetneaelntmyo.nth
Os
ne
ca
ab
pe
fp
ao
ci
b
al
nc
:y
se
taorl:eensb
e,
asncdicroeu
na
ss
,a
Twentyyears:witnessednotes,bankbills,specia
by
realaction,otherjudgmentandallotherpersonalactions
ofplaintiff,deathof
ba
er
g
ub
ne
wf
hoe
nor
writwasmade.
p
ty
re
withinthirtydayIncapacity
safterexpirationoftime,fra
lentconcealmentofaction,absencefromStatewhencauseacc
orresidenceoutoftheStateandabsenceafterwards,extends
Actionsbarredwhere both parties livedarebartedhere
promisemustbeinwritingorpartpaymentmustbemade,toex
tramonths
hime AgainstexecutorsandDadament
stingofaffidavitofnoticegivenofappointorsofexecutororad
Istrator,unlessfurtherassetsofcontentide Against
devisees,oneyearafterclaimaccrued;remedyinequity.
prosecutedwithintimelimitedandifwithoutculpableneglect
LimitedPartnership. Mayconsistofoneormoregeneralpart
nersandoneormorespecial. Specialshallcontributespeciilea
hotliablefor
ofcapitalorpropertyatcashvaluehand
beyondthatamount. Generalpartnersmusttransactthebus
BANKING AND
COMMERCIAL
1407
LAWS-MARYLAND
M a r r i e d W o m e n have s a m e rightsandliabilities as to property
contracts a n d all suits as m e n . Wife'sproperty not liable forher
husband'sdebts,norhisliableforherpriordebtsnorforothersmade
onhercredit. She may sue andbe sued asifsole. M a y notbe
partnerofhusbandandnotliableforfamilyexpenseexceptbyexpress
promise. (SeeArrest,alsoDower,alsoEstatesofDeceasedPersons,
S Y N O P S I S OF
also H u s b a n d a n d W i f e .
Mortgages, Ofrealestate: executedandacknowledgedasdeeds |
andmustbe recorded as to third parties;conveyfeewithcondition |
ofdefeasance. Foreclosedwithout possession by serving or advertisingnotice, or by possessionobtainedpeaceably, orbyconsent, or
bysuit. Redemptioninoneyearfrom noticeorpossession; power
ofsalemortgages not authorized by statute and not much used.
Supreme court may authorizeamortgage byapersoninpossession
ofanestatesubjectto acontingent remainder,executorydevise, or
powerofappointment, and such mortgageisbinding onallparties.
T H E L A W S OF M A R Y L A N D
R E L A T I N G TO
1
Chattelmortgagestobegoodagainstthirdpartiesmustberecorded
BANKING AND COMMERCIAL USAGES
in t o w n clerk's office where mortgagor resides w h e n mortgage is
given; or, ifany ofmortgagees are non-residents, thenin registryof
deeds in county where mortgagee resides, w h e n mortgage is given.
Mortgageonhouseholdfurniture muststateamountofloan, interest
RevisedbyHINKLEY, HISKY & BURGER, Attorneysat
Law,Baltimore. (SeeCardinAttorneys' List.)
rate, and cost of procuring loan. Agreements, whether in form of
note, lease, conditionalsale,etc., orotherwise, thatchattelsbargained
anddeliveredshallremain propertyofseller tillpaidfor,mustbein
In general. Bagby's Annotated Code (1911) and Supplemen-
writingand recorded aschattelmortgages; suchmortgagesandnotes
taryVolume (1914) embracethe Public General LawsofMaryland.
foreclosedby sixty days' notice to mortgagor or assignee ofrecord,
or, ifout ofState, by publication; redemption in sixtydays. Collaterals pledged on notes, etc., or forthe performance of anything.
after failure to pay or perform by the pledgor, maybesoldbythe
pledgee, he first giving written noticetothepledgoroftheproposed
sale, orifhis residence is u n k n o w n , by publication ofnotice o n c e a
w e e k forthree successive weeks in a n e w s p a p e r i n t h e city or town
including those of the 1914 session. By statute the Code of 1911
hasbeenmade evidence; special reference to statutes inthefollow-
ing is therefore unnecessary.
A c k n o w l e d g m e n t s ofconveyancesofanyinterestinrealorlease-
holdpropertyforabovesevenyears, maybemadewithintheState,
andinthecountyor city inwhich the land, orany partofit, lies,
wherethepledgeeresides,recordingsaidnoticeandaffidavitofservice| beforeanotarypublic,justiceofthepeace,ajudgeoftheorphans'
court, a j u d g e ofthe circuit court o f a n y county, o r a judge ofthe
ofsameintheclerk'sofficeofcityortownwherethepledgeeresides,
of Baltimore city. Ifwithin the State, but out of
andaftertheexpirationofthesixtydaysfromthetimeofsaidrecord- | supremebench
the county in which the estate conveyed lles, they m a y be m a d e
Ing.
Negotiable I n s t r u m e n t s .
Days of grace abolished except a s t o
sightdrafts. Falling due on Sunday orbank holiday payableand
presentableforpaymentonsecularor businessday nextsucceeding.
Ifhollday falls on Sunday then following Mondayis deemed bank
holiday. On notes payable at fixed place ondemand at oraftera
time certain, no recovery unless d e m a n d proved there before suits
usual d e m a n d a n d notice to charge indorser; notarial protest proves
It:butoneindorsing noteat Inceptionbefore payeedoesisamaker.
Walverofdemandandnotice,acceptanceofbill, draft, orordermust
be in writing and signed. Recovery from indorser without suing
maker. Rateofdamagesonprotestedbillsof$100ormore payable
Inthiscountry, 1 to9 percentaccording toplace. Negotiablepaper
presumedto betakeninpaymentofdebtorliabilityforwhichitis
given, unless creditor would thuslose security he otherwise would
havehad. Legal holidays are January 1; February 22; April 19;
May30;July4;firstMondayinSeptember:Thanksgiving: Christmas,
andArbor Day. If note reads "Ipromise to pay" all signers are
jointlyandseverally llable.
Partnership. Personal property of partnership, or interest of
partnertherein,exemptfromattachmentonmesneprocess, orseizure
onexecutionforanyindividualliabilityofsuch partner;butisstatu-
tory provision for reaching same after judgment. (See Limited
Partnership.)
beforeajudge o f a n y circult courtforthe circuit where the grantor
m a y b e , or before a n y judge of the orphans' court for the city or
c o u n t y i n w h i c h thegrantor m a y b e , notary public, o r a justice of
the peace; the official character ofthejustice m u s t b e certified by
theclerkofthecircultcourtofthecounty, orsuperiorcourtofBaltim o r e city, under his official seal, o r a n y j u d g e o f t h e s u p r e m e b e n c h
ofBaltimore city, if grantor b e i n Baltimore city. If without the
State, they may be made before a notary public, a judge of any
courtof theUnitedStates, orof any state or territory courthaving
a seal, or a commissioner of deedsforthis State. The seal of the
officer or court t o b e affixed to the certificate of acknowledgment
Inallcases. IfacknowledgedwithouttheUnitedStates, theacknowledgment m a y b e m a d e before a n y minister, consul general, vice or
consularagent or deputy, or a notary public, or a commissioner to
takeacknowledgments for State of Maryland. No separate examination of a married w o m a n is required. Defective acknowledgments
cured. ( S e e Conveyances.)
Actions.
The forms of actions, which still savorof the c o m m o n
lawarenow very simple, anyplain statementof facts constituting
a g o o d cause of action being sufficient. A m e n d m e n t i s allowed at
a n y time before verdict. Equitable defenses are n o w allowed
t o b e m a d e i n a courtoflaw,although there are still law courts and
equity courts having different and distinct jurisdiction. Speedy
judgment Acts are in force in Baltimore City and in many ofthe
( S e e Suits.)
Powers ofAttorney. Usualcommonlawrules.
Counties.
Probate L a w .
andtheorphans' court ofBaltimore city are the courtsofprobate.
Administration ofEstates.
(SeeEstatesofDeceasedPersons.)
Protest. (SeeNegotiableInstruments.)
Replevin. Goods or chattels wrongfully taken ordetainedmay
berepleviedbyownerorpartyentitledtopossession. Replevinbond
must bedouble the valueofproperty replevied. Ifdismissedwithouttrial,suitmay bebroughtonthebond,inwhichsuittitlemaybe
"
showntomitigatedamages.
Taxesmaybecollected byarrest, distress, orsult. Onreal estate
theyarealien; proceedings toenforce bysale beginuponnon-paymentforninemonths; non-resident owners have one year from sale
toredeemby paying tax, costs, and10percentinterestfromdayof
sale
sale; residents, two years with 10 percentInterestfromdayof
onwhole sum of tax and costs. L a n d o n which taxes are unpaid,
soldonfirstMondayinFebrurayinyearsucceedingtheyearinwhich
taxwas assessed;saleisofsmallestfractionalpartofinteresttoone
whowillpaytaxes, interest,andcoststherefor. Statetaxassessed
byboardof state assessors ongross receipts ofrallroadsandexpress
companies, and telegraph and telephone lines, collected by sult.
Corporations,otherthanthoseespeciallyprovidedfor,payafranchise
tax of $5.00If authorized capital does not exceed $50,000.00; of
$10.00, ifcapital does not exceed $200,000.00; of $50.00,ifcapital
doesnotexceed $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,
orfraction thereof, in excess of $1,000,000.00. Foreign corporations
p a y a n n u a l license fee of $10.
Inheritance tax r a n g i n g f r o m 1 to 7
percent,according todegreeofrelationshipandamountofbequest.
$500exemptinallcases, and $10,000 exemptincaseofcertainnear
relatives. Special exceptionsandexemptionsfrom 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.
Assignments,Attachment.)
(See
WarehouseReceipts. Holderdeemed true ownerso faras to
givevaliditytocontractforsaleofmerchandisecovered,ortoprotect
oneactingonfalthofsuchownership; butonetakingfromagentas
securityforantecedent debt gets no greaterright thanagent. Title
topropertypassedby endorsement, butnotinblank, topurchaser
orpledgeeingood faith. Property inwarehousemaybeattached
asthatofpersonnamedinreceipt,oroflastendorseeshownbybooks
ofwarehouseman. C o m m o n l a w rules prevall generally.
Wills. Willsmustbeinwritingsignedbythetestator, orathis
requestbysomepersoninhispresence,andsubscribedinhispresence
bythreewitnessesin presence of each other, may be made by any
personofage and ofsound mind, and maydispose ofallproperty.
WillsexecutedinanotherStateorcountryaccordingtolawsthereof,
maybeproved and allowedinthis Stateinthecountywherethe
testatorhadhis residence at time ofdecease;ifproved without this
State(athisdomicile), m a y b e allowed inany countyherewherehe
T h e orphans' courtofthe countles
In cases where decedent left a will, letters are granted to executor
andexecutrixnamedin the will. In grantingletters ofadministration, where decedent died without leaving will, lettersare granted:
1. To w i d o w or child or children; 2. Grandchild; 3. Father; 4.
Brothers and sisters; 5. Mother; 6. Next of kin; 7. Largestcreditor
applying forletters. In each class, malesare preferred to females.
Bondis required with two sureties, or one of certain local surety
companies where authorized by their charter to act as sole surety.
W h e n testatorrequestsinwillthat executorbe excused fromgiving
bond, court only requiresnominalbondforamount sufficient to pay
estimated debts. Six months notice to creditors mustbe given by
publicationbeforeestateisdistributed. Personal property mustbe
appraised, accountedforanddistributedthrough theorphans' court
of the county or city in which decedent resided. All sales must
be authorized and ratified bytheorphans' court. ByActof1896,
Ch. 246, above provisions were made applicable to "estates
ofpersonsabsentand unheard offoraboveseven years." Thisact
has been held unconstitutional. Re-enacted with amendments.
(Acts 1908. Ch. 125.) This act constitutional by decision of Court
ofAppealsincaseofSavingsBankvs.Weeks110Md.78.
Affidavits. (SeeAcknowledgments.) No particularformnecessarybutwhoever can take an acknowledgment cantakeanaffidavit.
Affidavits always required in a mortgage as to the bona fides of
mortgage consideration a n d t h e p a y m e n t o f t a x o n a n n u a l interest
Incertaincounties. (SeeMortgages.)
Aliens. Allens,notenemies, maytakeandholdlands,tenements,
and hereditaments acquired by purchase, or to which they would,
If citizens, be entitled by descent, and may sell, devise, ordispose
o f t h e s a m e o r t r a n s m i t t h e s a m e t o theirheirsasfullyandeffectually
andinthesamemannerasifbybirththeywerecitizensofthisState.
Arbitration. Disputes between partles m a y be conducted by
any judge or justice of the peace mutually agreed upon. Special
agreementsforarbitrationofsuchdisputestobevalld. Partlesmay
berepresentedbyanattorney, andawardofarbitratororarbitrators
t o b e a j u d g m e n t , a n d courtmaygivejudgmentandissueexecution
o n t h e a w a r d . Act1904,Ch. 671,providesameansforthesettlement
ofdisputesbetweenemployersandemployeesbymediationorvoluntaryarbitration.
Arrest. No arrest fordebtsin this State. In criminal cases a
sentence may be passed, Imposing a sum of money as a fine, and
thenin lieu of payment by party, of fine imposed, heisliable to
Imprisonment.
Attachmentsfordebt (SeeAct1890, Chap. 549), or for unliquidated damages, eitherin contract or tort, can be obtained in all
caseswhenthedefendantisanon-residentorhasabsconded, affidavit
being first m a d e b y the plaintiff to the correctness of his claim a n d
thefactthatthedefendantisanon-residentorhasabsconded. T h e y
m a y be also obtained in connection with an original process w h e n
thecreditor or some one inhis behalf shallgivebond indouble the
has property. Widow or widower may within six months waive
provisionin will ofdeceased husband or wife and claim sameshare amountofthedebt, with suretles to be approvedby the clerk, and
inpersonalpropertyaswouldhavehadincasedeceaseddiedintestate. makeaffidavit beforetheclerkofthecourt where thesuitisbrought
Nuncupative will mustbe reduced to writingwithinsixdays, or thatthe defendantis bona fide indebted to the plaintiffinthe s u m
provedbytestimonywithinsixmonths, fromtimewords spokNeont.
Noletters insuch till fourteendays afterdeceaseoftestator.
effectual todispose ofmorethan$100.00 worthofpropertyunless
provedby three witnesses who actedat testator's request.
claimed, a n d that the plaintiff knows or has good reason to belleve
thatthedebtorhas abscondedorisabout toabscondfromthe State,
or that the defendant has assigned, disposed of, or concealed, or
isabouttoassign,disposeof,orconceal,hisproperty,orsomeportion
thereof, with intent to defraud his creditors, orthat thedefendant
fraudulently contracted the debt or incurred theobligation;orthat
the defendant has removed oris about to remove his property, or
someportionthereof,outofthisState,withintenttodefraudcreditors
andtheattachmentmaybemaintained, although thedebtorobliga-
tionuponwhichtheactionisbroughtmaynothavematured, but
BANKING A N D COMMERCIAL L A W S - M A R Y L A N D
1408
Descent and Distribution of Property. Astodescent.see
Art.46,andastodistribution,Code,1904,Art.93.
thedateofthematurityofthedebtorobligationmustbesetforth Code1904,
AnattempttoabrogatetheRuleinShelley'scasehasbeenmadeby
A claimant may have the
(Act
1894,
Ch.
648).
in
the
a
f
f
i
d
a
v
i
t
1
attached property released by filing abondin double the amount Ch.144, Acts1912.
Dower. The common-lawrightofdowerexistsinMaryland,and
ofthe appraisement. Any kind of property or credits belonging
tothedefendant,intheplaintiff'sownhandsorinthehandsofany extends to equitable estates. By act 1898, thehusband'sdower
or capital wascreated; anestateofthehusbandinhiswife'sestatesofInheri
oneelse maybe attached. Thereisa special provision f.
d
e
z
i
s
e
b
t
s
u
m
f
l
e
s
t
i
e
a
c
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t
r
e
c
h
T
s
t
i
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e
r
C
tance,exactlyequivalenttothewife'sdowerinherhusband'sestate.
stockofacorporation.
Adeviseorbequestofrealorpersonalpropertytothewifeorhusband
not due maybe attached, but wages, hire, orsalary not due can shallbeconstruedtobeinlieuofdowerinlandsorshareofpersonal
notbeattached,and 90percent ofwages, hire, orsalary dueshall
Imprisonment for debt estate, respectively, unless otherwise expressed inthewill. Ifthe
6
6
5
.
)
be
exempt.
(Act
1908,
Ch.
always
isabolished. Defendant may be sued wherever he does business. widow orwidower renounces formally inwriting,however,such
Inadditiontoattachmentsagainstnon-residentsorabscondingdebtors provisionmadeforherorhimbythewill,withinsixmonthsafterthe
fordebt (1. e., aliquidated sum), as heretofore, attachments may grantofadministrationontheestateofthedeceasedhusbandorwife,
nowbeissued againstsuchdebtors in cases arisingfrom contracts thedowerrightandtheshareofpersonalpropertyremainundisturbed.
whenthedamagesareunliquidated, andinactionsforwrongsinde- (See Married Women.)
pendentofcontract, butinsuchcasesnoattachmentscanbeissued
Executionsmayissueandjudgmentsmayberenewedorrevived
until a declarationis filed setting out specially and in detailthe byscirefaclasatanytimewithintwelveyearsfromdateofjudgment
breachofthe contractcomplainedoforthetortactuallycommitted. orfromtheexpirationofanystay,andmaybethereafterlevied
verified bytheaffidavitofthe plaintiff orsomeone inhis behalf, on any property ofthe defendant. Inthecircuitcourtsforthe
anduntilabondshallbefiledsimilartothebondrequiredinattach- countiesthereisastayuntilthefirstThursdayofthetermsucceeding
providedthejudgmentisobtained
ments for fraud. (Code Art. 9.) All papers in attachment pro- therenditionofthejudgment,
atthesecondtermafterthedefendantissummoned. Thereisno
,dasinanyotheractionsatlaw.
ednemaebwonnacsgnideectcA(
stayuponjudmentsrenderedinthecourts ofBaltimorecityorby
1898,
Ch. 44The
.) Actof 1910,asamended bythe Acts of1912 and Justicesofthepeaceinthecityorcountles,butexecutionmayissue
Banks.
Thedefendantmay staytheexecutionbysuperseding
1914, made important changes in the bankinglaws ofthis State. forthwith.
Copyofdocket entriesofjudgment
Thelawnowprovidesfortheappointmentofa Bank Commissioner withsuretiesforsixmonths.
inanothercountymakesthejudgmentalienthere.
whenrecorded
withbroad powers for the examination ofall banking institutions
inthisStateotherthanNationalBanksandanannualreportthereon (Act1890, C
h
.
3
1
4
.
)
E
x
e
m
p
t
i
o
n
s
. Nohomesteadlaw. Wearingapparel,booksand
to the Governor. Whenever capital is reduced by impairment
commissionermayrequire Banktomakesuchdeficiencygoodwithin tools (notkeptforsale) and$100ofpropertyinaddition,whether
sixtydays,anduponfailuretodosomaytakepossessionofproperty sameconsistsofmoney,land,goods,ormoneypayableasinsurance,
and business ofsuch institution and retain possession until affairs benefit,orrellef intheeventofsickness,hurt,accident,ordeath,
arefinallyliquidated. This also applies wherethebusiness iscon- areexemptfromexecution,exceptonjudgmentsforbreachofpromise
ducted in an unsafe or unauthorized manner. The requirements to marryand seduction, not applicabletoanybutactualboa
fortheincorporation ofsuch institutions arefullyset forthin the fideresidentsofthisState. Equitableinterestsinpersonalproperty
act. This act also provides for the incorporation and supervision cannotbesoldunderexecution,butmaybeleviedupon,andthe
lienthusacquiredmaybeenforcedinequity. Chosesinaction S
bythe Stateofsaving institutions and trust companies.
Collaterals. The conversion by any banker, broker, merchant,
attorney,oragentofcollateralsismadeamisdemeanor. (SeeCode, beattached.
ForeignCorporations. (SeeCorporations.)
Foreign Judgments. Judgmentsofthecourtsofotherstates
Art.27,
Sec.93.)Thenormal conditionofallpersonsisoneinwhich cer
Contracts.
tifiedundertheactofcongress,arepropercausesofactionagainst
Thefourthandseventeenth
anypersonsubjecttotheprocessofthecourtsofthisState.
theyarecapableofmakinganycontract.
.
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A
Whenanyfalserepresentationismadebyonetoanother
Ch. 362, makeitnolongernecessarytoshowthattheconsideration withtheintenttodefraud,
andthedefraudedparty,thinkingthe
fora promise to answerforthe debt ofanotherisin writing. A
Fraud.
allegedfraudtobetrue,actsuponit,anycontractthusmadecan
citizen can not make a contract with an alien enemy duringthe notbeenforced. Butiftheinjuredpartyknowssuchrepresentations
continuanceofhostilities; butallens,notenemies, maycontractand tobefalse,itcannotbesaidtohaveinfluencedhisconduct.
For
Thelatercasesdecidecontract
holdrealpropertyasfullyascitizens.
StateseeMcAleervs. Horsey35Md.439.
ofInfantsto be voidable and not void; and they are capable of generaldoctrineinthis
Giving checksor draftswithoutprovisionforacceptanceisprima
Thecontracts f
ratificationbyinfantsonarrivalatageoftwenty-one.The
contract of acie evidenceofintentto defraud, andispunishableasacrime
ofinfantsfornecessaries
arebindinguponthem.
Everypersonbuying
alunatic isvoidableandnot
vold. The statute provides that a unlesssuchprovisionismadewithintendays.
inbulkshalldemandandreceivefromthevendora
married womanmayengageinbusiness, contract, sue,andbesued merchandise
written
statementunder
o
a
t
h
c
o
n
t
a
i
n
i
n
g
t
h
e
n
a
m
sandaddresses
upon contracts andtorts, asifunmarried. (Acts 1898, Ch. 457.) ofallcreditorswithamountofindebtedness atlee
astfivedaysbefore
Allgambling contracts and contracts made on Sunday are vold. thesaleis consummated. Thevendeeat leas
fivedaysbefore
Conveyances. No estate or title to any propertylying with- consummating suchsaleshallnotifyallofsaidcredit
torseitherper
Inthis State, forany period abovesevenyears, shallpass or take sonallyorbyregistered mail ofsuchproposedpurchase.
Asale
effectunlessthedeedconveyingthesameshallbeexecuted,acknowl- ortransferofgoodsinbulkwithoutsuchnoticeshallastoallsubedged, and recorded. (See Code, Art. 21, Sec. 1.) Every deed
ofrealestateshallbesignedandsealedbythegrantorandbargainor, sistingcreditors ofthevendorsbevoid.
andattestedbyatleastonewitness. Nowordsofinheritanceneces(SeeAttachments
.efi
WdnadnabsuH).
Divorce,andMarriedWomen)
(SeeDower,
Garnishments.
sary,buteverydeedshallbeconstruedtopassfeesimpletitleunless Inthis
Statethehusbandisnotliableforwife'sante-nuptialdebt
thecontraryappear. Ascrollwiththeword "seal" thereinbyway
ofaseal,issuficient. Adeedmustberecorded withinsixmonths
orcontracts. Husbandisliablefornecessariesofwife. Acts1898
fromdate,incountyorBaltimore City,wherelandlles,butifrecorded Ch.457,giveshusbandsameinterestinwife'sestateaswifehasin
Marriedwomenareespeciallyauthorizedbythe
afterthis, deed, whilevalid between parties,is invalid asto deeds
.
o
t
e
r
h
t
o
i
r
p
d
e
r
o
c
e
i
t
o
n
u
h
t
i
w
s
r
e
a
h
c
r
u
p
e
d
i
f
a
n
o
b
t
y
d
o
b
A
Actsof1900,Ch.633,tobecomepartnersandtocontractwithhus
Eltherdeed,
canreli
nquby
ishiagent
ntereso
tr
ia
ntottohre
'p
sroepaelre
to
an
tsetbiytj
id
n.t
corporatemustembodyinthedeeditselftheappointmentofanattor- husband'sestate.
nr
ey
ls
yc
uo
te
or
or separate
neyto acknowledge the deed as and forthe corporate actofsaid
debts
corporationorhaveitacknowledgedbythe President orVice-Presi- band.
dentwithout such appointment. Vendors' lien may bereleasedin
Interest. Thelegal rateofinterestis 6percentperannum.
originaldeedoruponrecordswhererecorded. (CodeArt.66, Sec.31). Judgments
bearinterest fromtheirdate. Apersonprovedguilty
Conveyancesdefectivelyexecutedmadevalidby Acts1908, Ch. 105 ofthehusband.
and
Acts
1914,
and Ch.
421.theauthority ofthe General
thegood
CorporationsCh.
are 259
organized
under
andlegalinterestthereon. Since1876,wherethe
IncorporationLaw,completelyrevised, Act1908,Chap.240. Liberal andchattelslent,
debt, includingtheusury, ispaid,theusuriousInterestcan
provisions are made for general incorporation:only exception (for whole
municipalpurposes) isintheconstitution. Allcorporations (under not be recovered back. Since September 1st, 1914, judgments
thegenerallaw) mustpayabonustaxofone-eighthof1 percent bearinterestfromthedateoftheverdict.Judgmentsareliensfortwelveyearsfromdateofrenditionon
upon its authorized capital stockand any increase. Corporations anyinterest ofthe defendantinrealorleaseholdpropertywithin
have perpetual succession, may carry on business anywhere, may
Issuebonds,andsecurethembymortgageofallpropertyincluding thecountywhererendered. Theycanbetransferredfromonecounty
franchises. Foreign corporations must file list of resident share- toanotherbysendingacopyofthedocketentriestotheclerkfor
ecord. Theliencommencesfromthedateoftheentryofthedocket
holders,andamountheld. Thecorporation'scertificatemustbefiled r
Judgmentsarenotliensonmortgages. Judg
and$25paid; annualrenewalfeeof$1ischarged. Allcorporations, entriesbytheclerk.
mentsarenotliensonpersonalpropertyuntilexecutionhasissued
notpaying agrossreceipttax (alongenumeration), shall pay an and thewritisinthehandsofthesheriff. (SeeAct1890,Chap.
annualfranchisetax ontheircapitalemployed inthis State, of50
cents per$1,000 but nolessthan $25. If capitalis over$500,000
(SeeSults.)
.
c
t
e
,
0
,
0
,
5
$
o
t
s
e
c
x
e
h
t
n
o
e
c
r
p
1
f
o
h
t
r
u
o
f
e
n
o
e
h
t
s
e
m
o
D
Everybuilding
558,
asto
recte
d, repexaminationofjudgmentdebtors.)
aired, rebuilt, orImprovedtotheextentofone-fourth
ticcorporationsmayissueallkindsofpreferredand commonstock, e
(See Judgments.) Mechanics' Liens.
and exchangesame for stock or good will. Valuationin absence ofitsvalueissubjecttoalienforworkdoneormaterialsfurnished
offraudis conclusive. Asto Stockcertificates,see"UniformLaws.' forLiens.
oraboutthe same. Act of1898, Ch. 502,abolishedllenfor
Courts. Terms and Jurisdiction. The circuit courts in the materialsfurnishedforbuildingsinBaltimorecity. Everymachine.
Counties havejuricdiction at commonlawin casesinvolving more wharf, orbridge, constructedorrepairedissubjectinlikemanner
n
a equityin
h allcases
t
y
e
h $20. T
involving
morethan
hold $50,
fromand
Allboatsorvesselsaresubjecttoalienformaterials
two to four regular terms in each county at which asbuildingsaretoalienaccordingtotheprovisionsofCode1888.
theyhavea jury;thereare, however, intermediate terms fixed by furnishedorworkdoneinbuilding,repairing,orequippingthesame
Tosecurethelienandlayfoundationforenforcingit,thematerial
, to
s which
e l pro
ucesr
e hbetmade
t returnable.
i u c r The
i c
s may
courtandcircuitcourt No.2of Baltimore cityhaveexclusiveequity manmustwithinsixmonthsafterthelastworkhasbeenfurnished.
Art.63,Sec.22.
Jurisdictioninthe city. The superior court,thecourt ofcommon file aclaiminthesuperiorcourtforBaltimoreCity,orinthecircuit
pleas,andBaltimorecitycourthaveconcurrentcommonlawjurisdicTheliensareenforcedbyscirefaciasorby
tionincasesinvolvingmorethan$100. Thecourtofcommonpleas
has exclusive jurisdiction ininsolvency, and the criminal courtin
S
u
i
t
s. Accounts and notesarebarredafter
Limitations
of
criminalcases. Theorphans'courts in Baltimore city,and inthe courtforthecounty.
threeyears,sealedinstrumentsaftertwelveyears;judgmentstwelve
Counties have probate jurisdiction. Justices of the peace have billinequity.
f
o
reign corporations (nolimitations. Act
except
a
g
a
i
n
s
t
years
Jurisdictiontotheamountof $100. The commonlawcourtshave
Averbalpromiseoracknowledgmentwillreviva
threeterms intheyear, andruledaysevery monthintheyearto
whichprocessmaybereturnable. Theequitycourtshavesixterms
Married Women. Actof1898,Chap.457,CodeArt.45,repeals
in theyear, beginningthe first Mondays of January. March. May.
1914
July, September,and November.
Ch. 846.
andre-enactstheentirelawinthis
State. Marriedwomenmay
debtbarredbythestatute.
hold
and dispose oftheirpropertylawfullyasifunmarried,but
Depositions. When the courts are satisfied, by affidavit or
otherwise, thatthereare materialand competentwitnessesresiding husbandmustjoininconveyancesofrealestatetoreleasehisinMarriedwomenmayengageinbusiness,contract,sue,and
withoutthe State,theywill directthat a commissionbe issuedto besueduponcontractsandfortorts,asifunmarried.
Marriedwoman
takethetestimonyofsuchwitnesses. Thecommissionersareselected is
alone liable for ante-nuptialdebtsandcontracts. Husbandis
bythe court, and must qualify before some person authorized to
Widowisentitledtodowerinrealestate.
administeranoathinthestatewheretheyreside. Thedepositions, t
erest.
dulycertified bythecommissioners, shallbeadmitted asevidence andone-thirdofthepersonalestateiftherearechildren,andifno
children, one-halfofthepersonalestate;husbandhassamerights
atthetrialofthecause,subjecttothesameobjectionsandexceptions in
'b
sleproperty
Wherethe
s
tilwlilfiea
fornecessaaswifehasinhusband'sproperty.
ries.
asthesametestimonywouldbe
ifthewitness
hadbeenpersonally
presentin courtandthereexamined.
Partleshavethe
righttobe wifeiaadjudgedalunaticuponinquisition,andthefindingremains
present when the testimony istaken under the commission, and inforce,husbandmayconveyafteracquiredpropertybyseparate
mustreceivereasonablenoticeofthetimeand place. Examination
isrestrictedto
artiecommission.
s and interrogTestimony
atories and of
crosnon-resident
s-interrogatories annexed the
to p
the
witnessescanalsobetakenuponpropernotice,asprovidedby Sec. deed, asifunmarried.
17of Art. 35ofthe Code.
d
m
&
t
m
a
1
BANKING
AND
1409
COMMERCIAL LAWS-MASSACHUSETTS
Mortgages are executed, acknowledged, and recorded same as
deemed to be legally executed, and shallbe ofthesame force and
effectasifexecutedinthemodeprescribedbythelawofthisState
agentatanytimebeforerecording,thattheconsiderationistrueand
bythetestator; andifthetestator was originallydomiciledinMaryland, although atthetimeofmaking thewill or atthetimeofhis
deathhemaybedomiciledelsewhere,thesaidlastwillortestamenttary instrument so executed shall be admitted to probate in any
deeds. a n d a r e notvalidagainst creditorsunlessrecorded within six
months. There must be anaffidavitmadebythemortgageeorhis
b o n a fide, and in the four Counties mentioned below that themortgageewill not require the mortgagor, or a n y other person for him,
provided, said last willandtestamentis inwritingandsubscribed
topaythetaxlevieduponthemortgageinterest, andupontheassignm e n t o f a n y mortgage except for the purpose of foreclosure, a like
affidavitmustbemadebytheassignee. Ifmadebyagent, hemust,
orphan'scourtof thisState;andwhensoadmittedshallbegoverned
byandconstruedandinterpretedaccordingtothelawofMaryland,
inaddition, m a k e oath that he is the agent of the mortgagee. A
like affidavit is required to chattel mortgages, a n d absolute bills
o f s a l e , b o t h o f w h i c h must be recorded within twenty days. T h e
declareacontrary intentionin saidwillor testamentary instrument.
lienofamortgage may, by ceasing to pay interest or any install-
m e n t o f t h e principal for twenty years, be barred. T h e y m a y be
foreclosed at a n y time after the debt becomes due a n d before the
lien is barred. Mortgagees are required to pay a tax of 8 per cent
ontheinterest covenanted t o b e p a i d i n t h e mortgage, inSomerset,
M o n t g o m e r y , Frederick, and Dorchester counties. No tax inBaltim o r e City and other counties. ( C o d e A r t . 81. Ch. 187.)
N o t e s a n d B i l l s o f E x c h a n g e . Negotiable Instruments aredefined by Ch. 1 1 9 o f t h e L a w s o f 1 8 9 8 , which repealsalllaws incon-
sistentwiththeprovisionsofthisact. Section20providesasfollows:
" A n instrument to be negotiable must conform to the following
requirements: 1. It m u s t b e i n w r i t i n g a n d s i g n e d b y the m a k e r o r
drawer. 2.It must contain an unconditional promise or order to
pay asumcertaininmoney. 3.Mustbepayableondemand, orata
fixedor determinable future time. 4. Mustbe payable to order or
to bearer; a n d 5, where the instrument is addressed to a drawee,
he must be n a m e d or otherwise indicated therein with reasonable
certainty."
withoutregardto thelexdomicilii, unlessthetestator shallexpressly
C o d e A r t . 93. C h . 327.
Nowill, testament, codicil, or other testa-
mentary paper shall be subject to caveat or other objectionto its
validityafter theexpiration ofthreeyearsfrom its probate. (Acts
1894, Ch. 405.)
W h e n a p e r s o n i s u n h e a r d o f f o r above seven years,
andsupposed tobedead, the orphans' court, under the provisions
o f A c t o f 1 9 0 8 , C h . 125,maygrantletterstestamentaryorofadministrationas the case m a y b e .
Workmen's Compensation. By the Act of 1914, Chapter 800,
provision is m a d e for the insuranceby employers of their employees
engaged inextra-hazardous occupations, to providefor compensation
for injuries a n d death. This Act is intended to supersede within
its scoperecovery for injuries through negligence as a tort, a n d to
do a w a y with such defenses as "assumed risk," "fellow servant"
and, to s o m e extent, "contributory negligence."
T h e extra-hazardous employments are enumerated at length, and the extent of com-
pensation set out. Employers and employees, m a y b y filing agreement, classify their occupation as extra-hazardous, although not so
enumeratedin thisAct.
Itsnegotiabilityisnotaffectedbyaseal,orbyaprovision
whichauthorizesthesaleofcollateralsecuritiesincasetheInstrument
b e n o t paid at maturity, or authorizes a confession ofjudgmentif
theinstrumentbenotpaidatmaturity; orwalvesthebenefitofany
lawintended for theadvantage or the protection of the obligor; or
givestheholderanelection to require something to be doneinlieu
of payment of money. Itis not necessary that paper should be
made payable at a bank or any fixed place. To charge Indorser,
notice ofnon-payment must at once be given to him. The time
ofmaturityis regulated by Art. 13, asfollows: "Section 104: T i m e
ofMaturity. Every negotiable instrument is payable at the time
fixed thereinwithoutgrace. W h e n t h e d a y of maturity fallsupon
Sunday,oraholiday,theInstrumentispayableonthenextsucceeding
businessday. InstrumentsfallingdueonSaturdayaretobepresented
forpaymentonthenextsucceedingbusinessday,exceptthatinstruments payable on d e m a n d m a y , attheoption of theholder, be pre-
sentedforpaymentbefore 12o'clock noon, on Saturday, whenthat
entire day is not a holiday.' Legal holidays are: Christmas,
NewYear's Day, February 22, Good Friday, July 4, M a y 30, 1st
Monday in September, 12thdayofSeptember, andthe 12th day of
October, all days of general a n d congressional elections throughout
the State and any day of public thanksgiving or humiliation and
prayer proclaimed by the governor or legislature, and all Saturdays
after 12 o'clock noon are a legal halfholiday. Monday is treated
asSundaywhenimmediatelyprecededbyoneoftheholidaysafore-
said. Byact 1898, Ch. 198, itshall belawful forbanks andbankers
inthecityofBaltimoreto close theirdoors for business at 12o'clock
noon, oneach and every Saturday inthe year, and every Saturday
intheyear, 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
S Y N O P S I S OF
andothernegotiablepaper,andforthesepurposesshallbeconsidered
as the first day of the week, or Sunday, and all negotiable paper
shallbedeemed tobe presentableontheseculardaynext succeeding.
Repetition as to days of grace, and so omitted.
P o w e r ofAttorney. Every power of attorney authorizing an
agentorattorneytosellandconveyanyrealestate,shallbeattested
andacknowledgedinthesamemannerasadeed,and recordedprior
toorwiththe deedexecutedinpursuanceofsuchpowerofattorney.
Acorporationshallhavepowertoappointanattorneyforthesame
purpose, by its corporate seal. Such power of attorney shall be
deemedtoberevokedwhentheinstrumentcontainingtherevocation
isrecordedintheofficeinwhichthedeedshouldproperlyberecorded.
ProbateLaw.
T H E L A W S OF
MASSACHUSETTS
R E L A T I N G TO
BANKING ANDCOMMERCIALUSAGES
(SeeAdministrationof Estatesand Wills.)
RevisedbyAUGUSTINEH. R E A D ,
Protestis usually made by notary public. Notary must keep
registerofprotests. Aprotestofnotarypublicisprimafacieevidence
ofnon-acceptanceor non-payment, andofthepresentmentofsaid
noteforpayment, orofsaidbill foracceptanceorpayment, atthe
timeandinthe mannerstated in theprotest,andtheprotestshall
alsobeprimafacleevidencethatsuchnoticehasbeensentordelivered
Inthemannerthereinstated. (SeeNotesandBills ofExchange.)
Replevin is a remedy to recover specific goods and chattels to
whosepossessiontheplaintiffisentitled. Also theproper remedy
AttorneyatLaw,Boston.
(See CardinAttorneys' List.)
AcknowledgmentsandDeeds. Acknowledgmentsmaybemade
beforeanyjusticeofthepeace,notarypublicorspecialcommissioner
torecoverpossessionofgoodsdistrainedunlawfully. Bondmustbe
giventotheState of Maryland, and any party having an interest
IntheState; whentheacknowledgementismadebyanypersonwith-
anactioninthenameoftheStateforhisorheruse.
toryordistrictauthorized by thelawsthereoftotaketheproofand
Intheproperty,may,uponbreachofanycovenantinbond,maintain
Sales&Notices. Act1910,Ch.346,providesaUniformSalesAct.
Taxes. Thecountycommissionersoftheseveralcountiesofthe
State,andthemayorandcitycouncilofBaltimore Cityaredirected
tolevy atax annually upon real and personal property situated
withintheState.andnopersonwhoisnotassessedtothesumof
$100 shall be required to pay any tax. Beginning with 1915, the
Statetaxisthirty-two andone-thirdcents, besidethe Countytax.
TheCountytaxonBankslocatedandinbusinessanywhereinMary-
land is uniformly 1 per cent.
Theproperty ofreligious, charitable.
benevolent,andeducationalinstitutions,andcemeterycompaniesis
exempt from taxation. On timely application exemption maybe
hadfromMunicipaltaxationinBaltimore City andinsomeofthe
Counties, andbeginningwith1915, from Statetaxation. Collectors
maysellpropertytocompelpaymentofoverduetaxes, upongiving
out this Stateand withinany otherstate, territory ordistrict ofthe
United States,it m a y b e m a d e b e f o r e a n y officerofsuch state, terriacknowledgmentofdeeds, and whensotakenthereshallbeattached
tothe certificateofacknowledgmentacertificateof the secretary of
thestateorterritoryinwhichsuchofficerresides,underthesealofthe
stateorterritory,oracertificateoftheclerkofacourtofrecordofsuch
state, territory ordistrict,inthecountyinwhichsuchofficer resides.
undersealofsaidcourt, certifyingastotheauthorityofsuch officer
totakeacknowledgmentsandastothegenuinenessofhissignature.
Indeedswherethereismorethanonegrantor, theacknowledgment
ofoneofthemissufficient.
No separate examination or acknowledgmentofwifejoining ina
releaseofdowernecessary. Conveyancesoflandaremadebydeed
underseal executed by the grantor or attorney having authority
therefor.
Aconveyanceinfee,forlifeorfora term exceeding seven
years, shall notbevalldexceptas against thegrantorandpersons
havingactualnoticeofit,unlessrecordedinthecountyinwhichthe
real estateis situated. Deeds must be under seal, a scroll being
duenoticeofsale, andcomplying with other requisites ofstatute,
andanyperson interested in property may redeem within twelve
calendar months fromdate, and indefaultofredemption,title to
propertyvestsinpurchaser. Taxesareconsideredinarrearsonfirst
January
nextsucceeding thedateoftheirlevy, andbear
day
of from
interest
thatdate.
homesteadandotherinterestsmustbeexplicitlystatedindeed,wife's
"Uniform State Laws" intendedforadoptionbyallthe States
andadoptedbyMaryland: (1) Negotiable Instruments, (2)Bills of
clerksofthe several courts. No declarationneed be insertedinthe
writ, exceptincasesofarrestonmesne process orof anattachment
Warehouse Receipts,(5) Stock Transfer,(6)
Lading,(3)
Sales, Wills.
Probate of Foreign(4)
Certificates ofcapital stock, bills of lading, and warehouse receipts,roughlyspeaking,
(1) arenegotiable,(2)representtheproperty
certified
to.
Willsoflandorpersonalproperty,andanycodicilthereto,must
beinwriting,signedby thetestator, orsomeoneelseforhim, in
hispresence,athisrequest,andwitnessedby two ormorecredible
witnesses, asandforlast willandtestamentofthe testator inthe
presence ofall the witnesses thereto. Nuncupative wills invalid
exceptincaseofdispositionofpersonalproperty bysoldiersand
marinesin actual service. Every willor other testamentary instrument executed without this State in the mode prescribedby law,
either ofthe place where executedorofthe testator's domicile, or
according to the forms requiredbythelaw ofthis Stateshallbe
90
Insufficient.
No subscribing witness isnecessary. Releaseofdower,
joining in deed merely, being insufficient.
Actions. Thereare three classes of actions: contract, tort, a n d
replevin. Actionsatlawarebegunbywritsissuedinblankformbythe
ofavessel. Suitsinequityarebegunby filingabilluponwhicha
subpæna is issued by the clerk of the court. Actions begun by
trusteeprocess mustbebroughtin thecountyin which the trustee
oroneofthemresidesorhashisusualplaceofbusiness.
AdministrationofEstates. Thejudgeofprobateforthecounty
where deceasedlast resided may appoint any person of sufficient
capacity as executororadministrator.
Executors or administrators
arerequiredtogiveabondofaboutdoublethevalueofthepersonal
estate.
A n e x e c u t o r w i l l b e exempt from giving suretles if testator
sodirects. Anadministratorwillbeexemptifallpersonsinterested
InthisStateexceptcreditorsconsentandall creditorsarenotifiedby
publication. Incaseanon-residentisappointedexecutororadminIstrator,hemustappointaresidentagent. Therearepublicadministratorsin each county to w h o m administrationis granted u p o n
estatesofpersonswhodie intestate leavingproperty,andnothaving
BANKING A N D COMMERCIAL LAWS--MASSACHUSETTS
1410
Boston. TrustcompaniesdoingbusinessintheCityofBostonshall
anyhusband,widow,orheirinthis State. Ancillaryadministration keepareserveequalto20percentofitsliabilities. Stockholdersof
abankareliableintheirindividualcapacityforthepaymentofall
maybegrantedupontheestateofanon-residentwhodiesleaving t
hecirculatingnotesremainingunpaidinproportiontothestockthey
Everyadministratorand executorshallfile
propertyinthis State.aninventorywithinthreemonths,andpublishnoticeofhisappoint- respectivelyhold when itstopspayment.
Anycommitteeappointedbythegeneralcourtmayexamineinte
ment. Noticeofadebtanddemandforitspaymentshouldbegiven theaffairsofany
bank,andshallhavefreeaccesstoitsbooksand
toanexecutororadministratorwithinsixmonthsafterhisappointvaults. Thebankcommissionershallvisitonceineveryyear,and
mentandthedebtshouldbepaidaftersix monthsandwithinone as
Nosuit can be brought by a creditor exammuchoftenerastheymaydeemexpedient,allsuchbanks,and
inealltheiraffairs,andmakesuchinquiriesasmaybenecessary
tsniagan
a.tnemtnio
ppa
year ofthe
or administrator within six months after his
executor
givingbond,exceptonaclaimnotaffectedbytheinsolvencyofthe toascertaintheircondition,andmakeareportofsuchinvestigation
estate. Nosuitcanbebroughtagainstanexecutororadministrator tothegeneralcourt.ChattelMortgages.
Chattelmortgagesmustberecordedinthe
whohaspublished noticeofhis appointment, after oneyearfrom
timeofhisgivingbond, unlesshehasreceivednewassetsafterthe recordsofthecity ortownwherethemortgagorresideswhenthe
expirationoftheoneyear,orunlessfurthertimeisallowedbycourt. mortgageismade,andinthecityinwhichhethentransactsbusiness
Acreditor whose claim does not accrue withinthe one year may every mortgage must be recorded within fifteendaysofthedate
causeassetstobereservedtoanswertohisclaim. Whentheestate untilrecordedthemortgageisnotvalidexceptbetweentheparties.
isinsufficienttopay allclaims, the executor oradministrator shall unlesspossessionisdeliveredtoandretainedbythemortgagee. O
bymortgage,therateofinterestcan
representthe estate insolvent, and commissioner will beappointed loanslessthan$1,000 secuIrteid
sacriminaloffensetoremove,sell,or
Claimsforfuneralexpenses,lastsickness,
toreceiveproofofclaims.andchargesofadministration, arenotaffectedbytheinsolvencyof notexceed 18 percent.
the estate. Executors and administrators shallrender an account concealmortgagedproperty.
Corporations. By special actof1903,chapter437,thelawof
business corporations was revised and appliestoallcorporations
oncea
year.
atleast
organizedinthiscommonwealthforthepurposeofcarryingonbust
Residentornon-residentaliensmaysueandbesuedand
Aliens.
ness within the commonwealth for profit, exceptthefollowing
Banks, savings banks, co-operativebanks,trustcompanies,surety
mayholdandconveyrealestate.
Arrest. In an action ofcontract, the defendant unless she isa or
indemnity companies, safedeposit companies,insurancecom
woman,maybearrestedonmesneprocessprovidedtheplaintiff,and
panies,railroadorstreetrailwaycompanies,telegraphortelephone
exceptinactionsonnegotiableinstruments,theoriginalpartytothe companies, gas or electric light, heatorpowercompanies,canal
contract or his executorsoradministratorsmakesaffidavitthathe aqueductorwatercompanies,cemetery,orcrematorycompanies,of
expectstorecoverasumamountingto$20;thathebelievesthatde- anycorporationswhichnowhaveormayhereafterhavetherightto
fendanthaspropertywhichhedoesnotintendtoapplytopaymentof takeorcondemnland, ortoexercisefranchisesinpublicways,pr
videdthatcorporationsformedforpurposeofdealinginrealestate
plaintiff's debt; thathebelievesthatdefendantintendstoleavethe
State. Actions oftort, against women aswellas men, except for shallstatethetermofthedurationofthecorporation,suchtermo
slander orlibel, may bebegun by arrest ofthe defendant, onthe
gnikc
am
heabs
hnaie
oeimo
rovff
efl
rat
iin
fnf
dsa
iitnsia
.lp-edA
toexceedfiftyyears.Underthisactthreeormorepersonsmayassociatetogetherand
fendantarrestedonmesneprocessmaygivebailorhemayapplyto formacorporationforcarryingonanylawfulbusinessnotincluded
takeanoaththathedoesnotintendtoleavethe State,ortheoath intheaboveprovisions. Suchacorporationmusthaveacapa
forreliefofpoor debtors; on taking such oath heis released from ofnot less than $1,000. Thereisnomaximumlimit. Theshares
arrest. Noarrestcanbemadeifthepropertyofdefendantisattached musthaveaparvalueofnotlessthan$5. Thestockmaybedivided
uponthesamewrit. On an execution, except for costs, orfor ali- intotwoormoreclasseswithsuchpreferences,votingpowers,restric
mony,oroneissuedinanactionoftort, orwheredebtorisaboutto tionsandqualifications asmaybefixedbytheagreementofassocia
leavethe State, hecannotbearrested untilhehasfirstbeen cited tion. Upondueorganizationoftheassociatesandfilingacopyof
theagreement ofassociationwiththecommissionerofcorporations
before a magistrate for examination, and itappearing that he has
propertyandrefusestoassignit,themagistratemayorderhisarrest. andonpaymentofafeeofone-twentiethof1percentofthecapital
Whenarrestedunderexecutionthedebtormayapplytotaketheoath butnotlessthan$25,acertificateofincorporationisissuedbythe
Thecapitalstockmaybeissuedforcashproperty
forreliefofpoor debtors.
hh
ee
acmoorupn
fi
co
anpmiutsat
tangibleorintangibleservicesorexpenses. TT
Avoluntaryassignmentto secretaryofstate.
Assignmentsforbenefitofcreditors.
ot
ro
at
stockmaybeincreasedfromtimetotime.
trusteesforbenefitofcreditorscannotbeavoidedbycreditorswho
not less thanthreedirectors, president,clerkandtreasurer
assent thereto, except by proceedings in bankruptcy begun within have
Thedirectors, treasurerand clerkareelectedbythestockholders.
cneds
sftof
Ifthereispropertyin
itorswhohaveassented,theexcessie
nx
ha
so
he Thepresidentischosenbyandfromtheboardofdirectors. The
fourmonths orbyproofoffraud.theclaimsofcred
clerkmustbearesidentofthecommonwealth. Meetingsofstock
A
c
t
s
donein
goodfaith
trusteecanbereachedbytrusteeprocess.
holdersmustbeheldwithinthe commonwealth,butdirectors
bythetrusteeunderanassignmentarevalid,thoughtheassignment
meet within orwithoutthe commonwealth. Votingbypros
beafterwardsetaside,iftheassignmentisassentedtoinwritingby
permitted, but noproxydated morethansixmonthsbeforethe
amajority in number and value ofthecreditorsnotsecured. The
meetingnamedisvalid. Anycorporationmayhold,purchase,
trusteeshallonacceptance ofthetrustgive noticein writingtoall veymortgageorleasesuchrealorpersonalpropertyasthepurposes
knowncreditors oftheassignmentandacceptancethereofandshall
depositwiththeclerkofthecityortownwhereinthedebtorhashis
principal place ofbusiness a copyofthe assignment. Theabove ofthebusinessmayrequire.Everysuchcorporation isrequiredtofileanannualreportofits
wouldprobablynotapplyundertheprovisionsofthe NationalBank- condition,andifitscapitalstockisover$100,000,tofileawritte
oc
ro
erqpuoirrae
make
anannual returntothetaxcommissionerI.tisEa
vl
es
ry
td
iotnoo
rgas
ruptcy Act.Insolvency. Thereisaninsolventlaw,but Itissupersededbythe izedunderthegeneral
statementunderoathbyanauditor.
lawistaxablelocallyuponallrealestateand
Actof1898.
NationalBankruptcy
machinery
ownedbyitinthecommonwealth
to
Attachment. Allreal estate, goods, and chattels not exempt. franchise taxaggregate market valueofitsshar,easnadfitsesrudbejdeucct
ting
maybetakeninattachmentontheoriginalwritandheldassecurity
thevalueofrealestateandmachinerysubjecttolo
forjudgment, exceptthatlandsand tenements cannot beattached therefrom
taxation
asabove,andthevalueofanypropertyofthecorporate
insuitsinvolvinglessthan $20. Attachmentsmaybemadeinsuits situated inanother
stateorcountryandsubject
tc
ot
oi
nt
byoragainstnon-residentsaswellasinsuitsbyoragainstresidents.
Every foreign corporationwhich
hasausualpla
ea
oxfabtuis
nh
eesrs
of
stock
in
Shares
here,orisengagedherepermanentlyortemporarilyintheconstruc
make an attachment.
No bondis required to
State,orof United States, tion,erection,alterationorrepairofabuilding,bridge,railroad,ra
underlawsofthis
corporationsorganized
cannotbeattachedexceptbybillinequity. Attachmentofsharesof wayorstructureofanykind,shallbeforedoingbusinesshereappe
stockisnotvalidagainstabonafidetransfer,althoughnotrecordedin
bookofcorporation. Sharesinforeigncorporationcannotbeattached thecommissionerofcorporations,itsattorneyfortheserviceofproess,suchauthoritytocontinueaslongasanyliabilityremainsour
exceptbybillinequity. Debtormaydissolveattachmentbyfurnish- standing againstit inthis commonwealth;andshallfilewiththe
sionerofcorporationsacopyofitscharter,articlesorcerti
ingbondwithsuretiestopayjudgmentobtainedorvalueofproperty Iccoamtmeisofincorporation,
by-laws, and a certificatesettingforthits
attacheddeterminedbyappraisement. Uponaffidavitbytheoriginal name,location,namesandadd
ressesofitsofficers,dateofitsarcual
partyto the contract except in actions on negotiable instruments
thathehasreasontobelievethatthedebtorintendstoleavetheState meeting,amountofitscapitalstockauthorizedandissued,thenu
berandparvalueofitsshares,theamountpaidthereon,anddeta
and has propertynot exempt fromattachment whichhe does not
Theyarerequired
intendtoapplytothepaymentofplaintiff'sclaim,thedebtormaybe to file annual statements withthe commissioner
ofcorporations
arrestedandheldtobail. Debtoragainstwhomjudgmentisrendered ofany payment thereof n
nn
ec
yo
,rporationarelabe
Oo
ft
ficmadein
ersofaform
eo
ig
for over $20 may be subjected to sworn examination touching his foralldebtsandcontractsmadewhiletheyaresuchofficersifan
property, and ifhe refuses to deliver up suchproperty (not being statement orreportrequiredbylawmadebythemisknowntobe
exemptfromattachment), an orderforarrest willissueandhecan
Failure to file the abovestatements renderseveryoffe
Proceed- showingtheircondition.
thenapplyandbeexaminedtotakethepoordebtor'soath.
agentliableto afineofnot morethan$500. Aforeigncor
dissolveattachmentsmadewithinfourmonthsof and
ingsininsolvency
porationissubjecttotaxationlocallyonitsrealestate,machiner
firstpublication. Anattachmentisdissolvedbydeathofthedefen- and merchandise inthis commonwealth,andtoanexcisetax
dant ifadministration isgranted upon his estateupon application foanles-ef.iftieth(1-50) ofonepercentoftheparvalueofitsauthoriza
madewithinoneyearafterhisdeath.
Banks. Inthis State,safedeposit,loanandtrustcompaniesare capital, buttheexcisetaxshallnotexceed$2,000ayear.
Terms and Jurisdiction. Trialjusticesmayseveraly
hold courtswithinthecountiesforwhichtheyareappointed,and
governedbytheprovisionscontainedinchapter116,revisedlaws,and
amendments thereto. Underthelaw twenty or more persons and Ishallhaveoriginaljurisdiction,exclusiveofthesuperiorcourt,of
a
c
t
i
o
n
s
of
c
o
theirsuccessorsmayformacorporationforthepurposeofcarrying demandedorvalueofthepropertyallegedtobedetaineddoesnot
Courts. ntract, tort, orreplevin,wherethedebtordamages
onthebusinessofbanking. Thegeneralcourtmay, byspecialact,
annulordissolveanysuchcorporation; butitsdissolutionshallnot exceed $100,andconcurrentjurisdictionwiththesuperiorcourtof
Impairanyremedyagainstthesameforliabilitypreviouslyincurred. suchactionswheresuchamountexceeds$100andislessthan$302Policeanddistrictcourtsmayintheirrespectivecountieshaveoricical
Thecapitalstockofeachbankshallnotbelessthan$200,000normore jurisdiction,exclusiveoftheSuperiorCourt,ofactionsofcontract,tort
than$1,000,000.00, exceptincitiesortownswhosepopulationisnot
more than 100,000, the capital may be not less than $100,000.00, orreplevin,inwhichthedebtordamagesdemandedorthevalue
andexcept alsothatintownswhose populationis not more than thepropertyallegedtobedetaineddoesnotexceed$100andbare
riginalandconcurrentjurisdictionwiththeSuperiorCourtofactas
10,000,thecapital stock maybe notlessthan$50,000,dividedinto o
sharesoftheparvalueof$100.00
each. Nobusinessshallbe trans- ofcontract,tortorreplevininwhichthedebtordamagesdenarind
acteduntilthewholeamountofitscapitalstockisactuallypaidin. orthevalueofthepropertyallegedtobedetainedismorethan$10anddoesnotexceed$1,000. Thesupremejudicialcourthasoriginal
Beforecommencingbusinessthepresidentanddirectorsshallmakea jurisdictioninallequitymattersandmayonappealhearallmatters
certificate specifying the corporate name, which shall be different
from any previously organized in the commonwealth;the location determinedbytheprobatecourt,anddeterminequestionsarisingunder
Superiorcourthasjurisdictionwheretheamountclained
ofsaidbank;theamountandnumberofshares ofits capitalstock; ceeds$20.
MunicipalcourtofthecityofBostonhasjurisdicticsonnameand residenceandnumber ofshares ofeachstockholder, and currentlywith
thesuperiorcourtinthecountyofSuffolk,inactions
thetimewhenitistogointooperation; acopyofwhichcertificate wherethedebtdoesnotexceed$2,000,providedoneormoreofthe
shall be filled with the secretary ofthe commonwealth. No part d
efendantsresidesorhashisusualplaceofbusinessinthecountyof
ofthecapitalstockcanbesoldortransferreduntilthewholeamount wills.
thereofis paidup. Nopersoncanholdmorethanhalfthecapital
LandCourthasexclusiveoriginaljurisdictionforregisteringt
stock, exclusiveofthatheldassecurity. Inadditiontothecapital torealestateundertheTorrenssystem,andofwritsofentryand
stocktowhichabankisentitled,thecommonwealthmaysubscribe
theretoanamountnotexceeding50percentofitsauthorizedcapital, Suffolk.
ThedepositionofawitnesswithouttheStatemay
whenprovisionismadethereforbylaw. Saidcommonwealth shall betakenunderacommissionissuedtoapersoninanyotherstatec
beentitledtoitsproportionateshareofprofitsanddividends. Upon countrybythecourtinwhichthecaseispending,oritmaybetak
petitions to cleartitlesto realestate.
thevoteofthree-fourthsofitsstockholders,
abankmayincreaseits
by a commissioner appointed bythegovernorforthatpurpos
capital stocktoanamount not exceeding $1
,000,000. The cashier Everydepositiontakenunderacommissionmustbeuponwritten
Depositions.
isrequiredtogivebondinnotlessthan$20,000,
withtwoormore Interrogatories, to be exhibited totheadverseparty,andcros
sureties,beforeenteringuponhisduties. Thedebtsofabankshall
i
n
t
errogatoriesmaybefiledbyhimbutneitherpartytotheac
atnotimeexceedtwicetheamountofcapitalstockpaidinexclusive
ofdepositsnotbearinginterest,norshalltherebeduethebankmore
than doublethe amount ofcapital stock paid in. Every bankis
requiredtokeepareserveinlawfulmoneyoftheUnited States,equal
to15percent ofitsliabilityforcirculationanddepositsin
Cityof
S
l
3
T
L
BANKING
AND
1411
COMMERCIAL LAWS-MASSACHUSETTS
shallattendat the taking of the depositionor be representedby
optionoftheholderbepresentedforpaymentbefore12o'clocknoon
attorney. Oral examination is allowedifthecourt so orders.
D o w e r a n d C u r t e s y . AwifeisentitledtodowerinthisStateas
a t c o m m o n law. A h u s b a n d s h a l l o n t h e d e a t h ofthewifeholdonethirdofherlandforhislife, this interestisknownas curtesy. Ifthe
on Saturday, when that entire day isnotahollday.
Theacceptanceofabillofexchangemustbe inwritingandsigned
bythedrawee. Thedraweeisallowed twenty-fourhours afterpre-
deceased leaves no issue,the surviving husband orwidow shalltake
protested for non-acceptance; if not so protested the drawer and
$5,000andone-halfoftheremainingrealestateandpersonalproperty.
Ifdeceased leaves issue, the surviving husband o r w i d o w takes onethirdoftheremaining real estateandpersonalproperty. Ifdeceased
leavesnokindred,asurvivinghusbandorwidow shall takethewhole
oftheremainingproperty.
Executions c a n n o t issueuntil twenty-fourhoursafter Judgment
rendered, and an original executionmustbe issued within one year
after plaintiff is entitled to s u e o u t t h e same
Original executions in
allcourts arereturnablewithin sixty days alias executions fiveyears.
Thereisnostay ofexecutionexceptby specialorderofcourt. Execut i o n s m a y b e s e r v e d b y levy uponrealorpersonalestateofthedebtor
o r b y arrest w h e n arrestis allowed. Certain personal property a n d
realestateareexempt fromlevy.
sentmenttoacceptthebill.
W h e n a foreign billis dishonored by non-acceptanceit must be
Indorsersaredischarged.
Anegotiablepromissorynoteisanunconditionalpromiseinwriting
byonepersontoanother, signedbythe maker, to payon demandor
a t a f i x e d t i m e a s u m o f m o n e y toorder or to bearer. A c h e c k is a
bill of exchange drawn on a bank, payable on d e m a n d
A check
must be presented for payment within a reasonable time after its
issue. Whenacheckiscertifiedatrequest ofholder the drawer and
indorsers arereleased
A b a n k includes any person or associationofpersons carrying on
business ofbanking, whetherIncorporated ornot.
ThenegotiableinstrumentactofMassachusetts is about the s a m e
a s t h e l a w n o w in operation in N e w York, Connecticut, Colorado,
Florida, Maryland, and Virginia. All persons becoming parties to
Homestead. If recorded, to the value of $800.
promissorynotespayableontime byasignatureinblankontheback
householdfurniture, and $300 worthinadditionthereto:library, $50;
tools a n d implements, $100; stock, $100; boats and fishing tackle,
etc., $100; one cow,six sheep, one swine,andtwotonsofhay, sewing
standingthedeathofdrawerifpresentedwithintendaysafterdate.
Exemptions.
shallbeentitledtonoticeofthenon-paymentthereofthe
Necessarywearing apparel of family, certain specified articles of sthaemreeoaf,
s indorsers. Checksdrawn on a bank m a y be pald notwithmachine,necessarywearingapparel, pewinchurch,etc. Materialsand
stockdesignedandnecessaryforcarryingonhistradeand intendedto
b e u s e d or wrought therein, not exceeding $100invalue. Shares In
co-operativeassociationsnotexceeding $20invalue,fundsofrailroad
rellef socletles assessment insurance benefits, uniforms, arms, a n d
equipmentsofmilitia officers.
a n d a s a v i n g s b a n k order ifpresented withinthirty days after date.
Suits. Civil actionsin general, except those concerning land (if
oneofthepartieslivesintheState),mustbebroughtinthecounty
where o n e o f t h e m lives o r h a s his usual place ofbusiness.
Where
allparties are non-resident, action may be broughtin any county.
Attachmentofproperty ownedby defendants residing out of State
Holidays. ThefollowingarelegalholidaysinthisState: February
22d. April 19th. May 30th, July 4th, first Mondayin September,
maybemadesufficienttogivejurisdictioninsuitafternoticepublished
byorderofcourt. Suchnotice t o b e g i v e n within one yearfromthe
entry ofthesuit. Persons commorant in Statemay also be arrested
onmenseprocessandheldtobail.
TaxesareassessedasofthefirstdayofAprilineach year,and on
real estate are a lien for two years after they are committed to the
collector; but the collector m a y sell real estate for taxes after two
yearshave elapsed, unless the estate has been alienated prior to the
giving ofthe notice of such sale. Ifnot p a l d o n d e m a n d , collector
m a y sell after advertisement. Owner, his heirs or assigns, m a y
redeem within two years by paying or tendering to the collector
whenheexercises thepoweroftaking, ortothepurchaserofthesum
p a i d b y him, with 10 percent interestand allnecessary intervening
whenany of thedays mentionedoccurs on Sunday. (Saturdayafter
12 o'clock noon for banking purposes.)
Interest. Legal rate, 6 percent, whichisallowed on judgments.
Ifpropertyis taxed to a person unknown, or to tenant or occupant
notowner, or wrong personor mortgagee ofrecord. T h e purchaser
underataxsale,if residentinthe city o r t o w n where the estate is,
mustrecordhisresidenceorplaceofbusiness. Ifheresideselsewhere
F r a u d s , Statute of. No contract for sale of goodsfor$500 or
moreshallbegoodunlessthe purchaseracceptsand receivespart, or
givessomething i n p a r t p a y m e n t o r u n l e s s a m e m o r a n d u m i n w r i t i n g
i s m a d e o f t h e b a r g a i n a n d s i g n e d b y party tobecharged. Noaction
canbebroughtinthefollowing cases uniessthecontractisinwriting
a n d is signed by party to be charged orhis agent: 1. To charge
an executor, administrator, or asigneeininsolvency. 2. To charge
a p e r s o n for thedebt ofanother. 3. On a contractforthe saleof
real estateor interest therein. 4. On an a g r e e m e n t n o t t o b e performedwithinone year.
October 12th, Thanksgiving Day, Christmasorthe day following
Therearenousurylaws,
exceptonloanslessthan$1,000, andany
r a t e m a y be reserved orcontracted forin writing, a n d rate reserved
Innote is payable aftermaturity ofnoteas before; loans less than
$1,000, shall be dischargeableuponpayment or tenderofthesum
actually borrowed a n d Interest at rate of 18 per cent per a n n u m ,
together with a s u m for actual expenses of making the loan, not
exceeding $5: all payments inexcess of said rateshallbeappliedto
dischargeof the principal. N o b o n d canbeissued byacorporation
a t m o r e t h a n 7 p e r cent.
J u d g m e n t s in lower courts m a y b e entered within four days of
default, but do not constitute a lien upon realty or personalty of
debtor not attached on the original writ. Are not outlawed for
twentyyears. Foreignjudgmentsareprovedbyacopyoftherecord.
or
charges,andpersonhavingtitlemayredeemintwoyearsafternotice
hemustappointanagentorattorneyandrecordsuchappointment.
Legacy and
Succession T a x .
All property within the state
belonging toinhabitants ofthestateandallreal estatewithinthe
statebelonging to persons whoare not inhabitants which shallpass
bywillorbylawsregulating intestate succession o r b y d e e d , grantor
gift totakeeffect in possession afterthedeath ofthegrantorto a n y
person, absolutely, orintrust, except to or for theuse ofcharitable,
educational orreligious societies or institutionsthe property ofwhich
isbythelawsofthestateexemptfromtaxation, orfor o r u p o n trust
foranycharitablepurposestobecarried outwithintheState, orto or
fortheuseofacityortownwithintheStateforpublicpurposes,shall
besubjecttothefollowingtax:allpropertypassingtoahusband,wife,
linealancestor,linealdescendant, adoptedchild,linealdescendantofan
andimitationofSuitsnotcontractsofliabilities,expressofimplied| parent,
adoptedthe
chil
dtheoradoptiveofason,
rparent or
oftheautorofadopted
wife
husband ofadaughter, of
thoseupon an attested note, ifsuit is brought by original payee or
hisexecutororadministrator, andpersonal actionsoncontractsnot
limited, twentyyears. Revivor: Partpaymentbythepartysought
tobecharged or newpromise to pay in writing. Absencefromthe
Stateprevents therunning ofthestatute oflimitationsastoadefendantuntilhecomesintotheState.
Ifthepersonentitled tobringan
actionis aminor or isinsane or imprisoned when the right to bring
suchaction first accrues, such action m a y b e commenced withinthe
timehereinbeforelimitedafterthedisability is removed. TheStatue
d o e s n o t r u n against thoseresidingoutoftheState.
M a r r i e d W o m e n . T h e real a n d personal estate of a married
woman, acquiredatanytime, remainshersoleandseparateproperty.
not subject to the control of her husband, nor llable for his debts.
Marriedwomen may carry on tradeorbusiness, make contracts, sue
andbe sued,in all matters relating to theirseparate property, and
such contracts are not binding upon the husband. Wife carrying
onbusiness on o w n account must record certificatewith cityor town
clerk;neglect to do this renders herproperty so employed Hablefor
husband's debts, and rendershusband liableforherdebts thus contracted.
t o w i f e
Deeds, butnot mortgages c a n b e madedirect fromhusband
See Dower and Curtesy, astorights ofhusband in estate
ofdeceasedwife.
Mortgages. Mortgagesnowincommonusecontainaprovision
authorizing a saleofpremisesin case ofabreach ofany oftheconditions. Power of sale mortgages may be foreclosed by a sale in
accordance with the provisionsofthe powercontainedin themortgage, andanaffidavit that themortgageehascompliedwiththeprovisions of the mortgage shall be recorded in the registry of deeds
w
ithinthirtydaysafterthesale. Noticeofthesalemustbepublishedonce aweekforthreeweeks (sale tobenotlessthantwentyonedaysafterfirstpublication), thepublicationtobeinthecity or
townwhere propertyis situated or,ifnopapersopublished, thenin
apaperpublished in the county. Proper execution of the power
ofsaleforeverbarsallrightofredemption. Mortgagesmayalsobe
foreclosedbyentryandpeaceable possessionforthreeyears, which
entry must be certified by two witnesses. Possessionmay also be
obtainedbyactionatlaw.
Notes and Bills of Exchange. The law of negotiable instrumentsis codified in Revised Laws, Ch. 73, taking effect January 1,
thedecedent, shallbe subject to a t a x o f o n e p e r c e n t o f i t s valueif
saidvaluedoesnotexceed$50,000,toataxoftwopercentifitsvalue
exceeds $50,000and does not exceed $250,000, to a tax o f 3 p e r cent
ifitsvalueexceeds$250,000anddoesnotexceed $1,000,000, and t o a
t a x o f 4 p e r cent if its value exceeds $1,000,000. All such property
passingto orforthebenefitofabrother, sister, nephew or nieceofa
decedent, shallbesubjecttoataxof2percentofitsvalueifits value
does not exceed $10,000, to a tax of 3 per cent ifits value exceeds
$10,000, anddoesnotexceed$25,000, toataxof5percentifitsvalue
exceeds $25,000anddoesnotexceed$50,000, t o a t a x o f 6 p e r c e n t i f
itsvalue exceeds $50,000 and does not exceed $250,000, to a t a x o f
7percentifitsvalueexceeds$250,000anddoesnotexceed$1,000,000,
a n d t o a t a x o f 8 p e r c e n t i f i t s valueexceeds$1,000,000,
Property passing to or for the benefit of a n y other person, not
exempt, shallbesubject toa tax of5percent ifitsvalue does not
exceed$50,000; t o a tax of6per centifitsvalue exceeds$50,000, and
does not exceed $250,000; to a tax o f 7 per cent if itsvalue exceeds
$250,000 a n d d o e s not exceed $1,000,000; a n d t o a t a x o f 8 p e r c e n t
ifitsvalue exceeds $1,000,000.
Nobequest, devise,ordistributivesharepassingtoahusband,wife,
father, mother, child, adopted child, adoptive parent o f a deceased,
unlessitsvalue exceeds $10,000, a n d n o otherbequest,devise, ordistributive share of an estate unless its value exceeds $1,000 shall be
subject toatax.
Sharesofstockofnon-residentdecedentsinMassachusettscorporations,nationalbanks and trust companiesaresubject to a t a x o n t h e
transfer thereof.
TransferofCorporation Stock. The deliveryofastockcertifi-
cateofaMaswithawrittentransferofthe
sachusettscorporationtoabon
afideorawrittenpowerof
purchaserorpledgee.
forvalue,
same,
attorney to sell, assign ortransfer thesame, signedby owner of cer-
tificate, shallbe asufficientdelivery to transfer the title as against
allparties.
TrusteeProcess. Allpersonalactionsexceptreplevin,andactions
oftortformaliciousprosecution,slander,libel, orassaultandbattery
m a y be begun by trustee process, a n d goods, effects, or credits of
defendantin hand of a third person m a y b e attached andheldto
satisfyfinaljudgment.
Wills. Any personoffullage may m a k e a willdisposing ofhis
state. Thewill mustbe signedbythetestatorandattested by
1899. Itdoesnotapply toinstruments madeanddeliveredprior e
threewitnesses in presence of the testator. A m a r r i e d w o m a n m a y
tothatdate. An Instrument to be negotiable mustbeinwriting.
signedbythemakerordrawer; mustbeapromisetopayasumcertaininmoney, ondemand or at a fixed time payable to order or
bearer. Aninstrumentpayableuponacontingencyisnotnegotiable.
The validity and negotiable character of the instrument are not
affectedbythefact that itisnotdated, ordoesnot statewherepay-
makeawill,butsuchwillshallnotdepriveherhusbandofhistenancy
by the curtesyinherrealestate,orofalifeestateinone-halfthereof
I f t h e y h a v e h a d n o issuebornalive.
able. Aninstrumentis payable on demand whenitisexpressed
payableondemand,oronpresentation,orwhennotimeforpayment
tsexpressed. When an instrumentis payable ondemand presentmentmustbemadewithinareasonabletime;presentmentmustbe
madeatareasonablehouronabusinessday,attheplacespecified;
whennoplace isspecified oraddress giventhenat theusualplaceof
business or residence; the instrument must be exhibited and when
paiddeliveredto partypayingit. Presentmentforpaymentisdispensedwithwhenthedrawee isafictitiousperson, orbywaiverof
Every negotiable instrument is payableattime fixed
thereinwithout grace, exceptdrafts andbills ofexchangepayable
within this State at sight, on which threedays grace are allowed;
whenthedayofmaturityfallsonSundayoraholidaytheinstrument
ispayableonthenextsucceedingbusinessday. Instrumentsfalling
dueon Saturdayare to bepresented forpaymentonthenextsucceedingbusinessday,exceptthatthosepayableondemandmayat
presentment.
AD
BANKING AND COMMERCIAL LAWS-MICHIGAN
1412
stock, forthebenefit ofdepositors. Alltransfersofproperty,and
paymentsofmoneyafteractualorcontemplatedlasolvencytopreventlegalapplicationofassetsnullandvoid;totalliabilitiesofany
borrowershall not exceed one-tenth partofthewholecapitaland
SYNOPSIS OF
surplus,maybeincreasedtoone-fifthbytwo-thirdsvoteofdirectors:
notto issue certificates ofdeposit forborrowedmoneynormake
partialpaymentsonsuchcertificates;notliabletodepositorsforpaymentofaforgedorraisedcheckunlessnotifiedwithinthreemonths
T H E L A W S OF
M I C H I G A N
afterreturnofvoucher.
Allsharesofbankstockshallbeassessedagainsttheirownersin
thetownship, village, orcitywherethebankislocated,taxesnot
RELATINGTO
paidbystockholders,bank'sdutytopay.
Trustdepositandsecuritycompaniesmaybeincorporatedunder
thegenerallawsofthe Stateapplicablethereto. Sevenormore
BANKING AND COMMERCIAL USAGES
persons may associate to establish-capitalgradedfrom$100.000
to $5,000,000 according to populationofcitieswhereconducted;
depositwiththestatetreasurer50per cent ofthecapitalstock
Inbondsorrealestatemortgagesworthdoubletheamountsecured;
RevisedbyHENRYWUNSCHand EDWARD F.WUNSCH,
powerssuch as are customary for trustcompanies. Theycannot
AttorneysatLaw, Detroit, Michigan.
doanybankingbusiness.Collaterals. Stocks, bonds or otherpersonalpropertypledged
(See Card in Attorneys List)
ascollateralsecurityforpaymentofmoneyortheperformanceof
anyobligation,upondefaultmaybesoldatpublic(orprivatesale
Ifsoauthorizedbythecontract)tosatisfythedebt;butbeforepublic
Acknowledgmentsofrealestateinstrumentsmaybebeforeone sale, tendaysnoticemustbegivenandservedonpledgerorlegal
State: Anyjudge, clerk representative personally orby mail; such salemustbebetween
1.-Within
t
h
i
s
ofthefollowingofficers:
orcommissionerofany courtofrecord,notarypublic,justiceofthe nineo'clockforenoonandsunset,atapublicplaceinthetownship,
peaceormasterin chancery. The officialshould certifythat "On
tomeknown
thisdaybeforemepersonally appeared.
tobethepersonorpersonswho
executedtheforegoing instrument city,orvillagewhereheld.ConditionalSales. Arevalidbetweentheparties: Ifconsignee
orpurchaser,onconditiontitleisretainedbyseller,isauthorizedby
acknowledgedthathe (orthey) executedthe sameashis (or thecontracttosell,allsuchsalesarevalid.
and
Theconsigneeorpur
their) free act and deed." Notary's certificate must showdate of
expirationcommission. Suchinstrumentsmusthavetwosubscribing chasercannotmakevalidsalesagainstthelegalownerwithoutthe
witnesses. 2.-Inanyotherstate, territory,ordistrictofthe United authorityofconsignororlegalowner. (SeeLiens.) (SeeFrauds.)
States: Sameofficialsasdescribed aboveorany officerauthorized
Conveyances. Anypersonoffullageorotherwisecapablemay
by thelaws ofsuch state, territory, ordistrict, or before a com- conveybydeedanyinterestinlands,whetherinactualpossession
missionerappointedbythe Governorofthis Stateforthatpurpose. ornot. Allgrantsanddevisesoflandstotwoormorepersonscreate
Anysuch Instrumentmaybeexecutedaccordingtothelawsofany estatesincommon;nojointtenancy,unlessexpresslysodeclared,
suchotherstateorterritory. Ifofficerhasnoseal, certificateofthe exceptsuchasaremadeintrustortoexecutors,andexceptsuchas
Clerkofthecountyordistrict, orofthe Secretaryof Statewithin aremadetohusbandandwife,whotakeas"tenantsbyentirety."
whichtakenshallbeattached. 3.-Inanyforeign country: notary Thewords"conveysandwarrants"inthedeeddescribingthepremises
public, orministerplenipotentiary, ministerextraordinary,minister andspecifyingtheconsideration,dated,dulysignedandacknowledged
resident, charged'affairs, orcommissionerorcounsulofthe United bygrantoraresufficienttoconveytitleinfeesimpleandtowarrant,
thatgrantorandhisheirsandpersonalrepresentativesisselzedof
States,appointedtoresidetherein.
Actions. Commonlawformsofpleadingsareused,butinsome thepremises,hasgoodrighttoconveysame,guarantees quietpos
respects modified by statute. Non-resident plaintiffs must give sessionthereof,andthathewillwarrantanddefendthetitleagainst
alllawfulclaims. Thewords"conveysandquitclaims"dulysigned.
securityforcosts.
sealedandacknowledged bygrantoraresufficienttoconveygrantor's
AdministrationofEstates: In probate court of each county. I
st. Thewords"mortgages andwarrants"anddulydescribed
Claimsarepassedonbyjudgeofprobateorcommissioners appointed pnrteemries
es, specifying "tosecurethepayment"andrecitingthesum
foreachestate;withinsuchtimeallowedbythecourt,notexceeding forwhichmortgage
isgivenandthenotesandotherevidencesof
infirstinstanceoneyearnorlessthanfourmonths; maybeextended debt secured thereby,
mortgage being dated, signed,sealedand
nottoexceed twoyears fromdate; thecourt mayrevive commis- acknowledged bygrantor,issufficient
andwarrantsperfecttitlein
sionanytime before estateis closed and allowfurther time three thegrantor
and
againstall
previous incumbrances;omittingthe
monthstoexamineanyclaim; anappealtocircuitcourtsfromallow- word"warrants" sufficient,butwithoutanywarranty.
Dowerand
anceordisallowanceofanyclaim. Allclaimsbarred, notpresented homestead
rightsnotwaivedunlesswifejoinsinthemortgage. No
homestead rightwillavailagainstthemortgagee ifthereisnowife,
beforeadministrationisclosed:Administration ofintestate estates isgranted: 1st, to surviv- norifwifejoinsinthemortgage. Marriedwomenoffullagejoining
inghusbandorwife,orkinorgrantee,orsuchoneofthemasjudge
withhusbands inanydeed,mortgage,powerofattorneyorother
may request. 2nd,tooneormoreofthe writing,shallbeboundinrespecttotheirowntitle.
mayappoint,
p
rincipalcreditorasthey
ors. 3rd,tosuchotherpersonasthejudgemaythink
Corporations. Banks, mining, manufacturing, insurance-re.
proper. Non-resident administrators and executors appointed in marine,
accident,burglary-printingandpublishing,manufacturing
otherstates, territories, orforeign countries cannot sue assuchin andmercantile,oraunionofthetwo,partnershipassociations,real
this Statewithoutprocuringadministration inthis State.
estateassociations,realestate,railroads,streetrailways,co-operative
Affidavitsmaybetakenbyanyjudge, masterinchancery,clerk benefitassociations, co-operativesavingsassociations,andreligious
ofcourt, justice ofthe peace, police magistrate, notary public, or societies,arerespectivelyorganizedunderStategenerallaws;required
circuitcourtcommissioner. Any oathauthorized orrequiredtobe tofilewiththesecretaryofstate,articlesofassociation.
made,withouttheStateforuseinjudicialproceedingshere,mustbe
BusinessCorporations. Threeormorepersonsmayorganize.One
authenticatedbyjudgeofacourthavingaseal,andthegenuineness
andatleast10percent
ofsuchjudge'ssignature,existenceof thecourt,andthatsuchjudge halfofcapitalmustbeactuallysubscribed
eitherinmoneyorpropertymustbepaidin;ifinpropertysame
isamemberthereof,certifiedbytheclerkofthecourtundertheseal mustbeforthepurposeofthebusiness,anddescribedanditsvalue
thereof. Ifinanyotherstate orterritory, maybetakenbeforea specifiedinthearticles. Stockholders voteinpersonorbyproxy
commissionerappointed bythegovernorof thisState,oranynotary Eachsharehasasmanyvotesfordirectorsasdirectorynumbers,
publicorjusticeofthepeaceauthorizedbythelawsofanysuchstate
andtheaggregate votemaybedistributedforoneormoreofdirec
orterritorytoadministeroathstherein.
Mayissuepreferredandcommonstockoftheparvalueof
In actions at law affidavits ofamount due on open and stated $10or$100.
Preferredentitledtodividendnottoexceed8percent
accounts, attached toand servedwith processascommencementof and
quarterly,semi-annuallyorannuallyandifnotpaidbeaccumulated
t
o
r
s
.
pald,
before anydividend paidonthecommon. Articlesof
suitmakeaprimafaciecase,unlessdeniedbythedefendant'saffidavit
associationtoberecordedinthecountyclerk'sofficeofcountywhe
Mayhold
filedandservedwithplea.
Aliens. May Inheritor purchaseand holdand convey personal operations
andsuchasacquired
realestateforthepurposeofthecorporation
carriedon,andofficeofthesecretaryofstate.
andrealestate.
t
hanthe
Arbitration. Competent partiesto anycontroversywhichisor
annuallyholdofficeuntilsuc
cessorsarechosen;makeduplicatereportsinJanuaryorFebruary
mightbethesubjectofanactionatlaworsuitinequity,mayagree directorschosenbythestockholders
a
n
n
u
a
l
l
y
f
o
r
t
h
e
f
i
s
c
a
l
y
e
a
r
l
a
s
t
e
n
d
i
n
g
,
o
f
t
h
e
f
i
n
a
n
c
i
a
l
c
o
n
d
i
t
i
onand
toarbitrate, andjudgment ofany circuit court rendered uponthe propertyofthecorporation tosecretaryofstate; stockhold
are
award. Noarbitration ofclaimofanypersontoany estateinfee flableforlabordebts;theymakeallby-lawsforcorporation. Feorrs
eign
orforlifeinrealestate.
corporations organizedunderthelawsofanyotherstateoftheUnited
Arrest. Bywritofcapiasinpersonalactionsintortandinactions statesorofanyforeigncountry,unlawfultocarryonbusinessIn
formoneycollectedbyanypublicofficer;oruponpromisetomarry: thisstateuntil certificateofauthorityprocuredfromsecretaryof
also bywarrantallowed byanyjusticeofthe peace orjudge ofa State;notcapableofmakingvalidcontractsinthisstateuntilauthorcourtofrecord,underthefraudulentdebtor'sact, whenthecreditor izedtocarryonbusiness;unlawfulforanypersontoactasagentof
hascommencedsuitorobtainedjudgmentandthedebtorhasdisposed untilauthorized todobusiness. Salesofgoodsormerchandiseby
oforconcealed.orisabouttodisposeoforconcealpropertyliableto
execution,orthedebtwasfraudulentlycontracted.
therightofinter-statecommercenotaffectedbystatelaws.
Assignments forthe benefit ofcreditors are vold unless made ormoretermsannually
TermsandJurisdiction
Ci
uu
rr
ts
gn
tin
o
ineachcounty,h.aveo
rr
ic
guiintacloj
i,
sh
doilcdtiino
without preferences; mustcomprise all of assignor's property not allcasesoflawandequitywhereintheamountincontroversyis$100
;and
haveappellate
j
u
r
i
s
d
i
c
t
i
o
n
exemptfrom execution. The circuit court in chancery hassuper- andupwards
f
r
o
m
j
u
s
t
i
c
e
o
f
t
h
e
Courts.
peaceprobate
courtsandotherinferiortribunals. Justicecourtsin
visoryjurisdictionofsuchassignments.
ofcasesatlawinvolvingfrom$100to
Attachments. Writsmaybeissuedfromjusticeandcircuitcourts eachcountyhavejurisdiction
$500. InGrandRapidsisa"SuperiorCourt"forcivilcases,limited
and topartiesresident
onaffidavitshowing:debtdueon express orimplied contract,from
ofthecity. Probate courtsineachcountyhave
eltherthatthe debtorhas absconded oris abouttoabscond
J
urisdiction ofestatesofdeceased personsandtestamentarytrusts.
the Stateorhasassigned ordisposed oforis aboutto assignand Supreme
court has finalappellatejurisdiction fromcircuit,munie
disposeofhispropertywithintentto defraudhiscreditors; orisa
non-residentofthestate, oraforeign corporation. Mayissuefrom
the circuit courtfordebt not due butto become due, uponsatisfactoryshowingtothecircuitjudge,butinsuchcasesjudgmentcan- ipaDepositions.
Testimony
l andrecorders'
courts. ofanywitnesswithouttheStateof
notbetakenuntildebtisdue. Mayissueinactionsoftortagainst morethanfiftymilesfromthecourtmaybetakendebeneesse
DaysofGrace. Abolished.
beforeanyjudgeofanystateoroftheUnitedStates,orofanyforeign
non-residentsincertaincases.
Banks. Incorporationof:-Anynumberofpersonsnotlessthan country,orbeforeanycircuitcourtcommissionerinthisoranyother
fivemayassociatetoestablishforaperiodnottoexceedthirtyyears. stateoroftheUnitedStates,oranycommissionerofthisState,any
onsulorconsularofficer,Justiceofthepeace,officerornotarypublie
commercialbanks,savingsbanks,and bankshavingforbothclasses. c
administeroathsinthestateorcountywheretaken
Capitalrequiredisgraded-$20,000to$250,000,accordingtopopula- authorizedto
tionofcitiesorvillageswhereconducted. Uponfilingarticlesofasso- andnotinterestedasattorneyorcounselorintheeventofthecause
reasonablenoticegiveninwritingbypartyorhisattorneyproposing
clation,commissionerofbankingdepartmentand Secretary of State totake,tooppositepartyorhisattorneyofrecord,statingnamesof
Issue certificates oforganization; boardof directors chosen bythe witnesses. timeandplaceoftakingandofficialbeforewhomtobe
stockholders. No morethanthelegalrate ofinterest in advance
Commissionstotakedepositionsofanywitnessesmaybe
shallbereceived; filecorrect listofstockholders withcommissioner issuedbycircuitcourtwhereinthesuitispendingorbythejudgeor
ofbanking, and county clerk and report four times ayearto be registerthereof,orbyajusticeofthepeaceinasuitbeforehimon
publishedinnewspaperwherebankisconducted. Commercialloans, writteninterrogatives.
Feesfortaking,certifying,sealingandfor
nottoexceed50percentofthecapital, onrealestatesecurities, by warding$2;foreach100wordsindepositiontencentsandcoples
two-thirds voteof directors, exceptto secure debtsduethe bank. taken.
Savings depositspayableasdirectors prescribe: commercialdeposits three cents. Each party paysforhisownexaminationorcros
e on
l demand.
b a yBanks
a combining
p s g commercial
n i v and
a s
depositscannot issue post notesnoranybill ornote orcertificate
as money. Savings depositors preferred in distribution ofsavings
examination inthefirstinstance.
t funds.
n e Stockholders
m t r individually
a p e liadble dequally
n a
ratably and notoneforanothertotheamountoftheparvalueof
BANKING AND
COMMERCIAL LAWS-MICHIGAN
thereof: nor shall either be liable to make compensation for labor
Descent. Real estate and personal property ofintestate after
payment ofdebts and administration expenses and allowances, as
orservices rendered fortheother.
Real Property. One-third to widow, remaining two-thirdstohis
Issue:ifnowidow thewhole to his issue to share equallyifofsame
degree of kindred to intestate, otherwise by representation;if no
Issue, husband or w i d o w to the father a n d m o t h e r i n equal shares,
i f o n l y one living to the survivor alone. If surviving husband or
w i d o w a n d no issue, one-half to such survivor, remainder to father
a n d mother or their survivor. If no issue or parents, husband or
widow, equally to brothers a n d sisters a n d the children ofdeceased
brothers a n d sisters; ifnone such relatives, to next of kin in equal
o f s a m e p a r e n t and theirissue by representation. Ifhusband orwife
surviveand no issue, parents, brothers orsisters, ortheir children to
husband or wife, a n d if no foregoing relatives whomsoever estate
escheats to State. Illegitimates heir to mother; dying intestate
estatedescends to mother or her relatives if she be dead; become
legitimatebyparents. Intermarriage or father's writtenacknowledgment. T h e foregoing provisions for the w i d o w are inlieu o f d o w e r
Interest.
dueatsameratespecifiedintheobligationoratthelegalrate.
| orwritten; a n d on settlement ofaccounts from d a y of ascertaining
balancedue;andonjudgmentsfromdayofentry:andonverdictsof
Juryfromdatetodateofentry ofjudgmentsthereon.
Incomputing
timeof Interest and discount on negotiablepaper, a month means
a c a l e n d a r m o n t h a n d a y e a r a c a l e n d a r y e a r of twelvemonths.
J u d g m e n t s of courts of record are not liens on real estate or
personalpropertyuntilbylevy thereon ofexecutionissuedfromthe
courts upon such judgments. Liens under execution levied upon
realestateexist fiveyearsfromandafterthelevy. Judgmentsexpire
by limitation in ten years from date of enteringincourts of record
andsixyearsinjusticecourts,andcannotberenewedexceptbyaction
a t l a w thereon before expiration. Judgments of theJustice of the
p e a c e m a y be enteredin the circuit courts on transcriptduly taken
tothecircuitcourtand thereuponbecomejudgmentsofsuch circuit
Personal Estate. Residue-one-third to widow, two-thirds to
childrenorissue by representation; one child; one-half to child a n d
one-halftowidow; nowidoworchild;toalllinealdescendantsequally.
I f w i d o w a n d no children or issue, to widow, not exceeding $3,000:
estateexcessofthat;one-halfexcesstowidow,otherhalftosurviving
parents, a n d if none such to brothers or sisters; a n d none such, all
such excess to widow. Married w o m e n intestate, one-third to husband, two-thirds to her children or their issue by representation;
onlyonechild orissue ofdeceasedchild; to h u s b a n d a n d such child
equally:If no child or issue of deceased child, one-half to husband
courts.
Liens. A n y person,who pursuanttoacontractwith a n y owner,
partownerorleasee o f a n y land,furnisheslaboror materialsinthe
constructionofabuilding,etc., onsuchland,shallhaveallenonsuch
structureand landto theextentofonequarter sectionorifina city
orvillage,thelotorlotsuponwhich such structureissituated. A n d
a n y sub-contractor, w h o furnishes materialsor labor incarrying fore-
andotherhalf tosurvivingparents, andifnone; to brothersorsisters
1
asforreal property. Estates by courtesy abolished.
Dower.
Legal
ratecollectableonallmoneysdueonanywrittenobligationsandon
allmoneysdueonallcontracts express or implied, whetherverbal
sheappiles for assignment of d o w e r a n d homesteadin which case
herInterestin deceased husband'slandsis limited to t h e d o w e r a n d
homesteadrightand the residueshalldescendas aboveprovidedfor
thatportion nottaken byher.
Inanyothercasesame
Legalrate5percentbutbywritten a g r e e m e n t m a y b e
chargednottoexceed7percent. Forfeitureofallinterestispenalty
forusury. W h e n a n y installment of Interestuponanynote, bond,
mortgage or other written contract shall become due and remains
unpaid,interestisallowedonsuchinstallmentfromthetimeitbecame
and homestead right unless one year after administration granted
orissueofthemandifnone,alltohusband.
Eithermay constitute the other
anattorney in fact to disposeofproperty. Expensesof familyand
children'seducationarenotchargeableuponthepropertyofthewife
butarechargeableagainstthehusbandandhemaybesuedtherefor.
follows:
degreethrough
nearest ancestor: ifanyunmarriedchilddiesunder
age,hisorherinheritancefromanyparent, toother survivingchildren
1413
Wifeentitled touseofone-third part ofalllands o w n e d
wardorcompletingsuchcontractshallhavealienuponsuchbuilding
andlandtotheextentoftheinterestofsuchowner.etc. Anyperson.
artisan, or tradesmanforlaborandskill applied uponanyproperty
delivered forthatpurposeshallhaveapriorlienforamountduefor
suchlabor. Hotels,boarding housesandlodging houseshavealien
u p o n b a g g a g e a n d o t h e r valuables of guests, boarders or lodgers for
byherhusband as estate of inheritance any time during marriage.
Nodowerasagainstmortgagesforpurchaseprice, ormortgagesmade
before marriage, except in surplus. Must exercise option to take
dowerinlieu of rights under will or statute within one yearafter
administration; residing in this Stateand elghteenyears ofageand
upwards m a y bar by joining in husband's conveyances and mort-
accommodations. Any personkeepingand caring fordomesticanimalsintrustedtothemforthatpurposehavealienforpropercharges.
Limitation of Suits.
Judgments ofcourts of record a n d sealed
Instruments ten years, justice court Judgments six years; accounts
andnotes and other simple contracts and fortaking, detaining or
gages o r b y d e e d a l o n e toonewhohashusband'stitle, Intent t o b a r
beingexpressed;orby jointuresecuredas bar.
Injuringgoodsandchattels,sixyearsfromthedatetheactionaccrued;
revivor:partpayment, orpromiseinwritingtopay. Absencesfrom
Execution. Mayissuetoanycountyatonce,unlessstayedafter
theSta
tedeductedfromtheperiodoflimitation. Mortgagesfifteen
judgmentincircultcourt,injusticecourts,expirationoffivedays: | years
after due or after last payment thereon. For trespasses on
notliens on real estate or personal property untillevy by proper
officer.
lands, assaultand battery, false Imprisonment, slanderous words or
libels a n d mal-practice against physicians, surgeons, and dentists,
Real estate is sold without appraisement to the highest
bidder, excepthomestead, to determineexcess ofvalue above $1,500
withintwelvemonths,hisjudgmentcreditorsandothershavingvalid
two years. Formisconductofsheriff ortheirdeputles, three years,
andforpersonal Injuriesthree years. Fortherecoveryofreal prop-
lienswithin fifteenmonthsfromdateofsale. Executionagainstthe
body m a y be issued on all judgmentsin actions of tort. Personal
orsheriff'sdeed; five yearswherethedefendantclaimsandisinpos-
redemption claim.
Defendant or his heirs or assigns m a y redeem
erty, five years where the claim arises against executors, guardian's
sessionoflandsunderdeed m a d e b y auditorgeneralofthisStatefor
taxes;andbyminorsandothersunderlegaldisabilities threeyears
propertyleviedon,aftersettingoffexemptions,maybesoldonsix|
days noticeatpublicsale, tohighestbidderto asufficient a m o u n t t o
satisfy the debt a n d costs: no redemption after such sales.
tionsfromjusticecourtsdo notrun againstreal estate.
after removal of such disabilities;in all other cases fifteen years.
Execu-
Limited Partnerships. Mayconsistofoneormoregeneral and
Exemptions. Homestead-selected by the owner and occupied
byhim; notexceedingfortyacresoflandanddwellingthereon; orone
lotwithdwelling thereon within any recorded town plat or city or
villagenotexceeding invalue $1.500. Samecannotbealienated or
o n e or more special partners.
Specials contribute specific amount
ofcapitalincashorpropertyat cash value, andifactuallypaid in
not liableforfirm'sdebtsinexcessofsuchspecialcapital. General
partnerstransactthebusinessof the firm.
Incumberedwithout consentof wifeorsold o n a n y execution or any i
Married W o m e n . M a y make contracts in respect to their own
other final process from any court, unless appraised to exceed the I propertyand
mayhold and enjoy, and have the same rights and
value of $1.500 and that amountis paid or realized on saleunder
remedies
regarding theirproperty asifunmarried. They m a y carry
suchprocess. Exemptionofhomesteadcontinuesduringitsoccupaonbusinessin t h e i r o w n n a m e s with their o w n property by consent
tionby the widow orminorchildren ofdeceasedperson who when
of their husbands; cannot enter into partnership with husband or
livingoccupiedthesame.
Ianyother personandbecome llableforthe firm contracts. Married
Fraud. Criminal fraud-obtaining the signature of any person.
women'scontractstopayortobecomeliablefordebtsofhusbandsor
firm, orcorporation with intenttodefraud fraudulently issuing or otherpersonvoidable,mayhoweverchargetheirrealestateorpersellingorduplicatinganddisposing ofanystock, scrip, orevidenceof
sonal
property to secure such Indebtedness by deed, mortgage or
debtofany bankorotherincorporatedcompanyofthis State; issue | contract. Married women are entitled to have and to hold their
ofanyfalsereceiptsbywarehousemen, merchants,ortheiragents | tracts
earningrelative
s madeby
theirownpersonaleffort,andmaymakeanyconthereto.
receipt:ortowrongfullydisposeoforconvertproperty to theirown
useafter issuing receipt; wrongfully removing ordisposing ofany
personalpropertybyanyagentdelivered uponwrittenagreementor
instructions: wrongfully to dispose of property covered by chattel
mortgagebymortgagorsorofpropertyheldbycontractofpurchase
titleby such purchaserorofproperty held underany
withoutlegal
leasebylessor. Foranyofficerorstockholderofanybankorany
1
M o r t g a g e s on real estate, executed and acknowledged the s a m e
as deeds; m a y be foreclosed under power of sale by advertisement
orincircuit courtin chancery ofthe county wherein the property
issituated. Trustdeedsnotincustomaryusebutmaybemadeand
executedandwillbetreatedasmortgages.
and bills ofsale;intended assecurityby mortotherpersonforsuchbank; tosign, Issueorknowinglyputincircula- I g a gChattelmortgages
o r , signed and delivered to the mortgagee, sufficient between the
such bank, before the capital stock is
tionanynote or bill of any
parties,butvoidasto creditors, subsequent purchasers and encumpaldin,orbeforethepresidentanddirectors thereofhavecomplied I brancersingoodfaith
and withoutnotice, unlesssuch mortgagesand
withthelaw;foranyofficeroragentofanybankknowingsuchbank billsofsaleortruecopiesarefiledinthecityortownshipclerk'soffice
tobeinsolventorincontemplationofinsolvency, orforanyassignee
ofthepropertyofsuchbanktosellordisposeofanymoneyorproperty
ofsuchbankwithintenttodefraud,delayorhindercreditorsthereof:
person to fraudulentlyobtainordispose ofany
orforanyagent
wheremortgagor resides, orifnon-residentofState,incityortown-
shipwherethepropertyissituated;andunlessaffidavitofmortgagor
o r o f s o m e o n e f o r h i m h a v i n g knowledge ofthefacts is annexed to
moneybelongingtoanyinsurancecompanyorganizedinthisState.Itadequate
hemortga
illof
sale,sWithout
howingcsuch
onsiaffidavit
deratioofficers
nisactforbade
ualand
ag
ne
do
ir
nbgood
faith.
Frauds-Statute of. No executor or administrator is liable on
any special promise to answerdamagesout ofhis own estates.
Fraud, Civil. Sales,transfersandassignmentsofstocksofgoods,
waresmerchandiseand fixtures inbulkpertaining toconductofany
business, otherwisethanin ordinary courseof tradeofseller, etc..
makeinventoryofthe goodsandcostprice tosellerofeacharticle
toreceiveandfilesuchmortgages; cease tobevalldagalust creditors,
subsequent purchasers, a n d encumbrancers in good faith, on expira-
tionofyearfrom filingdate, unless renewed within thirtydays next
preceding expiration byaffidavitofmortgageeshowinghis interest.
etc., filedandannexedto themortgageinsaidclerk'soffice; likewise
voidasagainstcreditors,unlesstheseller,etc.,fivedaysbeforesale,
eachsucceedingyearwhilethemortgageexists.
andunlessthepurchaserdemandsfromsellerlistofnamesand
addresses of creditors and his indebtedness, and within five days
NegotiableInstruments. Apromissorynoteisanunconditional
promisein writingto p a y a s u m certaininmoney, o n d e m a n d , o r a t
beforetakingpossessionandpaymentnotifieseverycreditorofsuch
sale.
Garnishment. Process mayissueinanyactionbrought inany
Justicecourt orcircuit courton contract expressed orimplied. judgmentordecree, to holdwhatever propertyany personmay own or
have belonging to the debtor. Bills of exchange and promissory
notesduein the garnishee's hands at the timeof servingsummons
aregarnishable. Property,realorpersonal,thingsinaction.equitable
Interests,heldbyfraudulent transferfrom the debtorandany propertyliabletoexecutionortothepaymentofthedebtsofthedebtor
inthegarnishee'shands m a y b e recovered; wages ofanyhouseholder
notmorethan $30andless than $8 forhispersonallabor, andofany
otherpersonforlabornotmorethan $15 and notlessthan $4; and
benefitspayablebyfraternal beneficiarysocieties, sharesinbuilding
andloanassociation ofany debtor, except as to onehavingahomesteadexemption,areexemptfromgarnishment.
Husband and Wife. If sued together she maydefend andif
eltherneglecttodefendtheothermaybe orderedtodefendforboth.
Ifhedesertshershemaybeauthorizedbytheprobatecourttoprose-
cuteordefendinhisname. Ifeitherwrongfullyretainstheother's
property, acquiredbeforeoraftermarriage,theownermaysuefor
sameasifunmarried. Neitherliableforthedebtsoftheotherbefore
oraftermarriage, norearningsorproperty ofeithernortheincome
afixedanddeterminatefuturetime,totheorderofaspecifiedperson
o r t o bearer.
Abillofexchangeisanunconditionalorderofonepersontoanother
requiringthedraweeto paytoacertainperson, ororder, orbeareron
d e m a n d or at a fixed or determinate future time a certain s u m of
m o n e y . M a y b e payableininstallments and containprovisionsthat
ondefaultthe w h o l e s u m of m o n e y s h a l l b e c o m e d u e with exchange.
fixed orcurrentrate, Interestandattorney'sfeesforcollection. M a y
authorize saleof collateralsand confession ofjudgments. Ifit reads
"I promise to pay." all makers are jointly and severally liable.
M u s t not be payable u p o n contingency.
Cannot waive exemption
from execution. Need not specify "for value received" nor place
w h e r e d r a w n or payable.
IfIssued, accepted, or indorsedwhenover
due ispayableondemand. M a y be payable to two ormorepayees
jointly or one or more of several payees. W a n t o r fallure of consideration, a defenseagainstone not a holder i n d u e course, partial
failure adefense pro-tanto. One nota party, or the payee of the
paperplacingasignatureinblankonthepaperbeforedeliverybecomes
anendorser. Indorser engages on due presentmentthe papershall
behonoredandthathe willpaytoholderoranysubsequentIndorser.
whomaybecompelledtopay:wherematurityfallsonSundayoron
aholiday,paymentdueonthenextbusinessday;butwhereallofsuch
daynotaholidaymayifpayableondemandbepresentedbeforenoon.
Fraudinprocuringsignaturesanddeliverydefenseagainstanyholder.
An
:
1414
BANKING AND COMMERCIAL L A W S - M I N N E S O T A
Presentment not necessaryto charge anyone primarilyllable. If
notpayableondemandpresentonthedaydue;ifondemandpresent
withina reasonable time after issue; bill of exchange payable on
demandpresentreasonabletimeafterlastnegotiation.
Fraudulentormaterialalterationsdonotaffecttheoriginal instrumentsinthehandsofInnocentholderinduecourse.
Unconditional promisein writing to accept a bill of exchange,
givenbefore orafterdrawn, validinfavor of all who takeitupon
faith thereof for value: holder m a y decline qualified acceptance; if
hetakesqualified acceptance, drawers and Indorsersaredischarged.
Protestofforeignbillsofexchangemaybemadebyanotarypublic
oranyrespectableresidentoftheplaceofpaymentinthepresenceof
twoormorecreditablewitnesses;draweeisnotliableunlessheaccepts.
Checkorabill ofexchangeona bank payableondemand, must be
SYNOPSIS
T H E L A W S OF
OF
MINNESOTA
presentedreasonabletimeafterissue,andifdishonorednoticemust
begivenordrawerisdischarged to extent of loss caused does nct
operatetoassignanypartofdrawer'sfunds; bankisnotliableunless
Itaccepts or certifies. If holder has check certified drawers and
Indorsersaredischarged.
The present negotiable instruments law of Michigan took effect
Sept, 16, 1905, andrepealsallactsorparts ofacts inconsistentwith
itsprovisions;butdoesnotapplytoinstruments madepriorthereto:
materially changes the lawinthis State and should receive special
examinationineverydoubtfulcase.
P o w e r ofAttorney. Almosteveryact that anyperson, firm or
corporationmayperform,maybeperformedbyanattorneyinfact.
Conveyances, mortgages, or leasesfor more than three years' term
byattorneyinfact, thepowerofattorney mustbeinwritingsigned,
sealedandacknowledgedsameasadeedoflands,tobeadmittedfor
recordortoproofthereof.
Probate L a w . (Sce Administration of Estates.)
Protest. (SeeNegotiableInstruments.)
Replevin. Goods orchattels wrongfully taken or detained m a y
bereplevinedbyownerorpartownerorpartyentitledtopossession.
Affidavit ofplaintiff or agent necessary forIssue of writ. If from
circuitcourtsplaintiff required to givebond with sufficientsureties
totheofficerwithintwenty-fourhoursafterseizureandappraisal of
thepropertywhich mustnotbedelivered to plaintiff withinfortyelghthours;andinthemeantimeifthedefendantshallgivesufficient
R E L A T I N G TO
B A N K I N G A N D C O M M E R C I A L USAGES
PreparedandRevisedby DURMENT, MOORE & OPPENHEIMER
AttorneysatLaw, St. Paul. (SeeCardinAttorneys'List.)
Acknowledgments may be certifiedby the following officers
1.Within the State by a resident judge, clerkordeputycierkof
any courtofrecord therein, anotary public, justiceofthepeace
town, cityorvillageclerk, orrecorder, court commissioner,resiteof
deeds, orcounty auditor, ortheirdeputies, countycommissie
memberofthelegislature.
1
2. Outofthestatebutinthel eelsor
byajudgeof thesupreme, circuit, ordistrictcourtsofthe ed
States,orofanycourt ofrecordofanystate, territory, ordistrict
theclerkoradeputyclerkofanysuchcourt,anotary,aJusticeofthe
peace, oranycommissionerappointedbythegovernorofthisState
forthat purpose. 3. In foreign countries bya notarypubile,or
byanyminister, chargéd'affaires, commissioner,consul,commercial
agent or other consularordiplomaticofficerofthe UnitedStates
appointedto reside insuch country, anddeputies orotherreprese
bondtotheofficerhe shallreturn thepropertytothesameperson
tatives ofsuch officers. The form ofthe certificatbefore
e Fiaybe
me
19..
this
d a y of.
tomeknowntobethepersondested
sonallyappeared.
andwhoexecutedtheforegoinginstrumentandacknowledgeitathe
executedthesameas hisfreeactanddeed." Incaseofcorpora006
Taxes. StateandcountypayableeveryyearafterDecember1st,
A. B. to mepersonally known, who being by me duly swoCD
didsaythatheisthepresident (orotherofficer) of(nameofcor
ration), that the seal affixed to the foregoing instrumentisthecr
fromwhomhetookit;Inthatcaseifplaintiffrecovershemayrecover
onthedefendant'sbond;ifhefailsdefendantmayrecoveronplaintiff'sbondaccordingastheJudgmentmaywarrant. Injusticecourts
bondwithsufficientsuretles mustbegivenandfiledindouble value
oftheproperty beforewritIssues.
deliveredtocountytreasurerMarch1st,thereafter,andifdelinquent
bearInterest 1percentpermonth. Returned to auditorgeneral of
State,ifnotpaid, and b y h i m enforcedbyforeclosureInchancery in
every county, and the taxable property sold under decree of the
courtby county treasurer each parcel fortheamountoftaxesand
chargesagainstsame: redeemable one year thereafter and does not
become absolute until proceedings taken by purchaser for writ of
itmaybe,"On this
....day of...
19 , beforemeappeared
poratesealofsaidcorporationandthatsaid instrumentwasexexd
inbehalfofsaidcorporationbyauthorityofitsboardofdirectors
andsaidA. B acknowledged said instrument tobe the freeac
anddeedofsaidcorporation." IfmadeoutsidetheStatethe afte
sion of the official seal of the certifying officer mustbeaffixed,of
assistance, whichmustbeinstitutedwithin fiveyears byserviceof
theremustbeattached thecertificateoftheclerkofacourtofroxond
writ. Ifdecreeregularandpropertytaxable,andduenoticeisgiven
andserved, purchaseris entitled, u p o n d u e proof thereof towrit of
assistance and possession unless redeemed pending the notice by
paymentofdoubletheamountpaldby purchaser and$5.00 foreach
parcel redeemed. City taxes are governed by charter or by the
general act under which cities and villages are organized.
signature of the certifying officer is genuine.
writtennoticeuponownerssix monthsbeforeapplicationforsuch
Wills. Codicils. Everypersonoffullage(twenty-oneyears)andof
s o u n d m i n d m a y m a k e ; mustbein writing, signed by testatororby
somepersoninhisorherpresencedulyauthorized b y h i m o r h e r a n d
attestedandsubscribedinhisorherpresencebytwoormorewitnesses
competentas such at thetime. I f o n e o f t h e subscribing witnesses
shalltestify to theexecution ofthe will inallparticulars and testator was of sound mind at the time will was made, the court m a y
admit the will, in case no person appears tocontestit; ifnone of
thewitnessesresideinthe Stateat the timeofproving the will, the
courtmayadmitthe testimonyofotherwitnessestoprove testator's
sanityand executionand proofofthesignatureoftestatorand subscribing witnesses, Probate of will conclusive of its due execution
and cannotbeassafled collaterally. Foreignwills, dulyadmittedto
probatewithout the State, may be admitted and recorded in any
countyofthe Statein whichtestatorleft real orpersonal estateby
dulyfiling,anexemplifiedcopyofsaidwillandoftherecordadmitting
sametoprobate. Anuncupativewillinwhichthevalueoftheestate
bequeatheddoesnotexceed$300, dulyprovedbytwowitnesses,may
beallowed. Wills m a y be revoked by burning, tearing, cancelling,
orobliteratingwithintentionofrevoking samebytestator,orbysome
otherwritingsigned,attested,andsubscribedinthemannerprovided
forexecution ofwills butshallpreventrevocation Implied by law.
ofthecountyordistrictinwhichitismadeunderhissealthatthe
Actions. The distinction between actions at lawand sultsin
equityisabolished. Thereis onlyoneformofaction.Itiscalled
acivilactionandmustbeprosecutedinthenameoftherealparty
Ininterestexceptthatexecutors,administrators,trusteeofanexpress
trustandpersons expresslyauthorizedbystatutemaysuewithout
Joining the person forwhose benent the sultisbrought.
Administration of Estates.
Estates of deceased personsare
administeredinprobatecourtsofwhichthereisoneineachcounty
presidedoverby theprobateJudgeofthe county.
Ingrantingletters ofadministrationpreferenceisgiven: 1.
thesurvivingspouseornextofkinorsuchsuitablepersonasthey
oreitherof them select. 2.Ifnoapplication ismadefor thirty
daysafterdeath ofintestate, to principal creditororcreditors,of
somepersoninterested, andifdeceasedwasnativeofforeigncountry
totheconsulorotherrepresentativeofthatcountryresidinginth
State, orto suchcompetentandsuitablepersonashemayselect
Upongrantingletters thecourtmakesanorderlimitingthetime
within which creditorsmaypresenttheirclaims. Thistanemast
notbelessthansixormorethantwelvemonths; butmaybeextended
forgoodcausetoadatenot morethaneighteenmonthsafter ce
givenoftheorder. Onproofbyalldavitthattherearenodebt
thetimelimitedmaybethreemonths. Noticeoftheorderisgiven
bypublicationthereofoncecachweekforthreeweeksinanews,
inthecounty, Claimsnotpresentedwithintimelimitedarebarred
Non-residentexecutorsandadministratorsmaysueinthisStale.
Aliens. (Seerighttoholdproperty.)
Arbitration. Allcontroversieswhichcanbethesubjectofac
action may be submitted to one or more arbitrators fordecision.
exceptaclaim toanestate infeeorforlifeinrealestate.
Arrest. Thereisnoarrestfordebt.
Assignments. Statutesrelatingtoassignmentsforthebenefto
creditorsareinforceexceptasaffectedbytheU. S.BankruptcyAct
of 1898.
Practicallytheymaybesaidtobesupersededbythatact.
Attachment. Beforeallowingawritofattachment, thecourt
anaffidavitoftheplaintiff,hisagentorattorney. 1)Thatthedebt
mustrequireoftheplaintiffabondinthesumofatleast$250,end
wasfraudulentlycontractedor(2) thedefendantisaforeigncorpora
tionornon-residentor(3)hasdepartedfromtheStateashebelieves
withintenttodefraudordelayhiscreditors,ortoavolltheserviceof
asummonsorkeepshimselfconcealedthereinwithilikeintent(14
hasassigned,secreted,ordisposedofhispropertywithintenttode'as
ordefraudhis creditorsorisabout todoso.
Banks. ThreeormorepersonsmayIncorporateasabank. Capt
talrequiredis$10,000 intownsof1,000orlesspopulation: $15.a0n00
d
intownsof1,000to 1,500; $20,000 intownsof1,500to2,000
$fullypaidincash
25,000intownsexceeding2.000population. Capitalstockmustbe
beforebankcandobusiness. Stockbindersare
IndividuallyHablefordebtsofbankinanadditionalatcountelto
theparvalueofstockownedbythem,andthisliabilitycenturies.ge
yearafteranytransferofthestock. Atleastone-ofthoftheret
profitsmustbeplacedinsurplusfundbeforeanydividerdispartale
thesurplusamountsto20percentofthecapital.andthissurplusmusi
bemaintainedunimpaired.
Everybankmustmaketothesuperintendentofbanksnotlessthan
LiabilitiestoA
fourreportseachyearwhichmustbepublished.
ofanyperson, corporationorfirm.formoneyborrowed,I
thereinHabilities oftheseveralmembers thereof,shaliatp
exceed15percentofitscapitalandsurplus.Itmusthaveareserve
equaltoone-fifthofallitsmaturedordemandableHabilces, that
ofwhichmustbecash,andtheremaindermaybebalancesdu t
solventbanks. Incaseofinsolvencyorviolationofthebarkinglaws
e
thesuperintendentofbanksmaytakepossession,andapplytothe
court
a receiver.
Bills of Lading. Uniform Warehouse Receipts Act. Ef
April2,1913. Warehousereceiptsandbillsofladingfor
BANKING AND COMMERCIAL LAWS-MINNESOTA
ir transit, unless the w o r d s " n o t negotiable" appearplainlyonthe
face thereof, are transferred by endorsement which shall carry the
titletothepropertyandallrightsoftheendorsertherein.
Initial Carrierreceiving property fortransportationbetweenpoints
withinthe State, liable for loss, d a m a g e or injury caused by it or
other carrier en route, a n d all contrary provisions in BillofLading
Familypletures, library, musicalinstrumentsforuseoffamily,wearingapparel,beds,stoves,cookingutensilsusedbyfamily,otherhouseholdfurniturenotexceeding $500invalue, threecows,tenswine, one
yokeofoxenandahorse,orinlieuthereof,aspanofhorsesor mules.
twenty sheep, the wool therefrom r a w or manufactured, food for
suchstockforoneyear's supply, o n e w a g o n , cart ordray, one sleigh.
twoplows,onedrag,and otherfarmingutensilsnotexceeding $300in
value,provisionsfordebtor'sfamilyforoneyear'ssupport, toolskept
void.
Chattel Mortgages. Everymortgageofpersonalpropertywhich
isnotaccompaniedbyimmediatedeliveryandfollowedbyactualand
forpurposeofcarryingontrade,andstockmanufacturedinwholeor
inpartbydebtornotexceedingin value$400;library ofprofessional
man;presses, type, andtoolsofpublisherofnewspapernotexceeding
$2.000, and his stockin trade not exceeding $400; watch, sewing
machine, typewriter,bicycle,seedforuseofdebtorforoneseasonnot
exceedingcertainamounts;libraryandapparatusofcollegeorschool;
moneypayabletowifeorchildfromInsuranceonlifeofdeceasedhusb a n d o r f a t h e r not exceeding $10.000; m o n e y or relief from benefit
association; m o n e y from insurance on exempt property wages not
exceeding$35for services renderedduring preceding 3 0 d a y s , if suit
continuedchangeofpossessionisvoldasto creditorsand subsequent
purchasers a n d mortgagees in good faith, unlessitis m a d e i n good
faith, attested by
t w o witnesses, a c k n o w l e d g e d a n d filed w i t h t h e
register ofdeeds of the county in which the mortgagor resided at
thetimeofitsexecution, ifaresidentoftheState, orofthatinwhich
the property was then situated ifa non-resident. Ifthe mortgagor
resides in St. Paul, Minneapolis o r D u l u t h or is anon-resident, a n d
theproperty is situated there, the mortgage mustbefilled with the
cityclerk of such city instead of the register ofdeeds ofthe county.
isfornecessaries onlyoneexemptionof$35withinathirty-dayperiod
Duplicatesorcopies certifiedby any officer withwhomthemortgage
isallowed.
hasbeenproperlytiled, maybefiledinotherplaceswhereinanypartof
the property was situated w h e n the s a m e was made. As against
creditorsofthe mortgagorandsubsequent purchasersandmortgagees
ingoodfaiththe lien does not continue b e y o n d t h e t e r m ofsix years
f r o m the date of filing the mortgage unless the indebtedness is not
thendueandpayablebyitsterms, inwhichcaseitcontinuestwoyears
afterthematurityofthedebtand nolonger.
Chattelmortgages g i v e n b y a m a r r i e d m a n or w o m a n on property
e x e m p t f r o m execution must b e e x e c u t e d b y b o t h h u s b a n d a n d wife
if living.
Holidays. January 1st: February 12th and 22d; Good Friday;
M a y 30th July 4th; first M o n d a y i n September: Tuesdayafter first
M o n d a y I n November, each even-numbered year (election day), a n d
December 25th are legal holidays. Thanksgiving day isso farthat
negotiable Instruments or contractsdue that d a y are payable next
succeeding business day.
Interest. Sixpercentislegal rate, butbyspecial contractany
ratenotexceeding 10 percent m a y be exacted.
Judgmentsmaybeenteredbydefaultindistrictcourtsatexpirationoftwentydaysafterserviceofsummons. Whendocketedinthose
courtstheybecomellensuponallrealestateofthedebtorinthecounty
wheredocketed then owned by h i m orafterwards acquired, and the
liencontinuesforten yearsafter theentry oftheJudgment. Transcriptsofjudgmentsinjustice a n d municipal courts m a y be filedin
districtcourtandtheredocketed,andthenbecomelienonreal estate.
Liens. To preserve a mechanic's lien a verified statement must
befilledby the lien claimant within ninety days after furnishing the
lastitemof laboror material intheofficeofthe register ofdeeds of
cutedinthepresenceoftwosubscribingwitnessesandtoentitlethem
to record m u s t b e acknowledged by the person executing the same.
Conveyances m a d e out of the State m a y b e executed as above, or
according to the laws oftheplaceofexecution.
Corporations. Maybeorganizedbyanynumberofpersons,not
less than three, for the purpose ofengaging in any lawful business.
T h e a m o u n t o f capital stock shall i n n o case be less than $10,000,
divided into shares ofnotless than $1.00 or more than $100. T h e
Incorporators must sign and acknowledge a certificate specifying: 1.
thename,generalnatureofbusinessandprincipalplaceoftransacting
the same. 2. Period of its duration if limited. 3. Names and
places ofresidence of incorporators. 4. In what board manage-
thecountyinwhichtheImprovedpremises are situated, orifclaimed
uponalineofrailwayoritsappurtenanceswiththesecretaryofstate.
Limitation of Actions. On contracts express or implied six
years; judgments ten years; to foreclose mortgages fifteen years; to
m e n t i s vested, dateof annual meeting at which such boardshallbe
elected, namesandaddresses ofpersons composing boarduntil first
election. 5. Amount ofcapital stock, how the sameis tobe paid,
numberofsharesandparvalueofeach,andifmorethanoneclass,a
description, andterms of issue and method ofvoting ofeach. 6.
HighestamountofIndebtednesstowhich corporationshallbesubject.
Thiscertificateis filedwiththesecretaryofstateandwiththeregister
ofdeeds of the county in which the principal place of businessis
locatedandpublishedinsuch county two successivedays inadally
newspaper, o r t w o successive weeks in aweekly.
Everystockholderinanycorporation,exceptthoseorganizedforthe
purpose of carrying on a manufacturing or mechanical businessis
labletocreditorsofthecorporationin an amount equal to the par
recover real estate, fifteen years.
M a r r i e d W o m e n . Propertyacquiredbywifebeforeoraftermarrlageremainsherseparateestate. Itisliableforherdebtsandtorts
t o t h e s a m e e x t e n t asifshewereunmarried,and she m a y m a k e a n y
contractwhich she could makeif unmarried, exceptthatnoconveyanceorcontractfor sale ofherhomestead o r a n y interest thereinis
valldunless herhusbandjoins in the same.
Both husband a n d wife are liablefor necessaries furnished to a n d
u s e d b y thefamily.
M o r t g a g e s o n r e a l estateexecutedinthepresenceoftwosubscribingwitnesses,acknowledgedandrecordedintheofficeoftheregisterof
valueofthestockownedbyhim.
deedsofthecountyinwhichthemortgagedpremisesaresituatedmay
Foreign Corporations. Every foreign corporation organized for
engagedonlyinthebusinessofloaningmoneyorinvestinginsecurities,
nortothoseorganizedtoraiseandimprovelivestock,cultivatefarms,
canfruitsorvegetables,norto thosewhosesolebusinessistransportationoffreight orpassengers by water.
Courts. District courts hold one or more terms a year in each
organizedcounty, have originaljurisdiction inallcivilactionsatlaw
andinequity,andinallcriminalcaseswherethepunishmentexceeds
threemonths' imprisonmentorafineofmorethan$100.
Thesupremecourthasappellatejurisdictioninallcases,butthere
isnotrialbyjuryinthatcourt. Ithasoriginaljurisdictioninsuch
remedial casesasareprescribedbylaw.
Probate courts have exclusive jurisdiction of matters connected
withthesettlementofestates ofdeceasedpersons,minors,andInsane
persons. TermsareheldonthefirstMondayofeachmonthineach
organizedcounty.
Municipalcourtsexistincertaincities,andarecourtsofrecordwith
UmitedJurisdictionin civiland criminalactions.
Justicesofthe peacehavenojurisdictionincivilactionswherethe
a m o u n t involved exceeds $100.
D a y s o f G r a c e areabolished.
Depositions may be taken atany placewithinorwithout the
Stateuponnoticeinwriting, statingthereasonfortakingthesame,
thetimeandplace, andgivingtheopposite partyonedayforpreparation, andone day forevery 100 miles, exclusive of Sundays and
thedayofservice,beforeany officerauthorized toadministeroaths.
Descent and Distribution of Property. Homestead descends
tosurvivingspouseforlife, remaindertochildrenandissueofdeceased
children. Ifnochildrenor issueofdeceasedchild, then to surviving
spouseinfee,exemptfromdebtsnotavalidchargethereonattimeof
intestate'sdeath. Afterpaymentofdebtsandcertainallowancesto
thesurvivingspouseoutofthepersonalproperty, theresidueofthe
estatedescends as follows: 1. One-third to thesurvivingspouse,
balanceinequalsharestochildrenandlawfulissueofdeceasedchild
byrightofrepresentation. 2. Ifnosurvivingchild.orlawfulissue
of deceased child, the whole estate descends to surviving spouse if
any. 3. Ifnoissueorsurvivingspouse,tofatherandmotherinequal
shares,orifbutonesurvive, tosuchsurvivor. 4. Ifnosurviving
Issue,spouse,fatherormother,inequalsharestobrothersandsisters
andlawful issueofdeceasedbrotherorsister. 5. Ifnoissue,spouse,
father, mother, brother, sister, or living issue of deceased brother
orsister, tonextofkin, inequaldegree, but thosewhoclaimthrough
nearest ancestor preferred to those claiming through ancestor more
remote.
Ifnospouseorkindred, tothe State.
D o w e r 6.
is abolished.
Employers LiabilityAct. EffectivesinceApril24, 1913.
Usurious contracts
arevold.
Conveyances, Deedsand mortgagesofrealestate mustbe exe-
pecuniaryprotit beforeit can transact or continue businessin this
State, acquire, hold ordispose of property or bring suithere must
maintainapublicofficehere,appointanagentresidinginthecounty
where such officeis located,authorized to accept service ofprocess,
and must file with the secretary ofstate an authenticated copy of
suchappointmentandofitscharterandaverinedstatementshowing
theproportion of its capital stock represented by its property and
businessinthisState,anduponthatitmustpayafee. Thisactdoes
notapplyto exclusively manufacturing corporations, traveling salesm e n soliciting business for non-resident corporations, nor to those
1415
be foreclosed by publication or by action.
T h e mortgagor or his
assignsmayredeemwithinoneyearfrom thedateoftheforeclosure
sale.
1
T h e authority of an attorney conducting a foreclosure by advertisement, must be i n t h e f o r m o f a PowerofAttorney, executedand
acknowledged by the mortgagee or assignee inthe s a m e manneras
a conveyance and recorded prior to the sale in the C o u n t y where
the foreclosure proceedings are had.
T h e mortgagor m a y covenant to pay or authorize the mortgagee
to retain any attorney'sfeein case of foreclosure of not exceeding
$25; wherethe mortgage debt does not exceed $500; $50 where the
mortgagedebt exceeds $500 and does not exceed $1,000: $75 where
the mortgagedebt exceeds $1.000 and does not exceed $5,000; $100
wherethemortgagedebt exceeds $5,000 butdoesnotexceed$10,000;
a n d $200 where the mortgage debt exceeds $10,000.
ARegistry T a x of 15cents is imposed u p o n e a c h $100 or fraction
thereofoftheprincipaldebt securedbyany mortgage covering propertywithin the State of Minnesota and recorded in said State. In
casethe maturityofthedebt so securedshallbe fixedatadatemore
than five years after the date of said mortgage, the amount ofsuch
Registry T a x 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 registered unless such
t a x h a s b e e n p a i d , norshallany suchdocument or record thereofbe
received in evidence in any court or have any validity as notice or
otherwise. If such mortgage describe real estate outside of Minnesota, such tax shallbe imposed u p o n such proportion of the whole
debt secured as the value of the real estate described in this State
bearstothe value ofthe whole real estate, such value to be determ i n e d b y the StateAuditor upon application of the mortgagee.
N o t e s a n d Bills of E x c h a n g e . Uniform Negotiable. InstrumentsLawhasbeeninforcesinceApril 15, 1913. Commercial paper
is payable at the time fixed therein without grace. When due
orpayable on Saturday or on Sunday, or anylegalorbankholiday,
thesameispayableuponthebusinessdaynext succeeding, a n d m a y
beprotestedonsuchsucceedingday.
Right toHold Property. Nopersonunlesshebeacitizenofthe
United States, orhasdeclaredhisintention to b e c o m e a citizen, a n d
nocorporation unlesscreatedunderthelawsoftheUnited States, or
ofsomestatethereof,shallacquirelandsexceeding 90,000squarefeet,
exceptbydevise, Inheritance, or through security for indebtedness.
Thisdoesnotapplytoactualsettlersonfarmsnotexceeding160acres,
or to subjects ofaforeign country, whose rights to hold lands are
secured by treaty.
No corporation, morethan20percentofwhosestockisownedby
persons not citizens of the United States, or by corporations not
createdunderits laws, orthoseofsomestatethereof, canacquire
lands, and no corporation unless organized for the construction of
operationofarailwaycanalorturnpikecanacquire morethan 5,000
acres or morethanisnecessary for its operation, and lands granted
I t b y t h e S t a t e o r UnitedStates.
Butthisdoesnotapplytolandsacquiredinthecollectionofdebts,
nor to a person or corporation engaged in selling lands to actual
settlers, or engagedinmanufacturinginMinnesotawhileso engaged.
Such persons or corporationsnot so engaged must sell w h a t t h e y h a d
April 13, 1911, within ten years fromthat date and sell whatthey
acquiresubsequenttothatdatewithintenyearsaftertheyacquireit.
Executions issuefromdistrict courtsanytimewithintenyears |
Taxes on real estate m a y b e paidone-halfbefore the firstdayof
afterjudgmentandmayruntoanycountywherejudgmentisdocketed Juneandone-halfbeforethefirstdayofNovemberoftheyearfollowarereturnableinsixtydaysandmayberenewedforsixtydaysata Ingthelevy thereof, andifnotso paid apenalty of10percentattimeonrequestofjudgmentcreditororhisattorney. Personalproptaches. Iftaxes onpersonalpropertyarenotpaldbeforeMarch1st
ertyissoldontendays' postednotice;realestateonsixweeks' pub- oftheyearfollowingthelevythereof,apenaltyof10percentattaches.
lishednotice, andsubjecttoredemptionbyjudgmentdebtororhis
Wills. Every person of fullageand sound mind maydispose of
assigns within one year from dateofsale.
Exemptions. Homestead outside of incorporated municipality
may Include eighty acres. IfinIncorporated place containing less
than5.000inhabitants, Its areashallnotexceedone-halfacre, andin
largerincorporatedplacesone-thirdofanacrewithoutregardtovalue.
propertybywillinwriting,signedby thetestator,orbysomeperson
inhis presence a n d by his direction, attested a n d subscribedin his
presencebytwoormorecompetentwitnesses. Everypersonincludes
marriedwomen. If,aftermakingawillthetestatormarries, thewill
Is thereby revoked.
BANKING
1416
A N D
COMMERCIAL
S Y N O P S I S OF
T H E L A W S OF MISSISSIPPI
R E L A T I N G TO
LAWS-MISSISSIPPI
B a n k s . Required capital stocks as follows: Incities,vilars
and communities withpopulation 1,000 or less $10,000: pop!
1,000 and not more than 2,500, $15,000; population2.500and
morethan6,000, $25,000; population from 6.00010,000,$550
10,000 or more, $50,000. This doesnot applytoexistingbank
(1914.) There shall be aboardofbank examinersofthreemea
beelected, dutiestoenforcebankinglawsandexaminebankspere
ically. Deposits guaranteed; depositors names not tobediv
Banks penalized for failure to comply with orders ofexan
B a n k s m u s t h a v e at least threedirectors; unlawfulforanyhatás
receive, deposits for six months in excess often timesitspasd
capitalandsurplus; Banks officers mustnotcontributetocampa
f u n d of candidates.
BANKING AND COMMERCIAL USAGES
Prepared and Revised by FLOWERS, B R O W N ANDDAVIS, Attorneys
a t L a w , Jackson. (SeeCardinAttorneys' List.)
Accounts. Sworntoentitlesplaintifftojudgment,unlessdefendantfilesaffidavitdenying. Theaffidavitmustbebythecreditoror
hisagent. Allaccountsmustbeitemized.
A c k n o w l e d g m e n t s before any judge, clerk o f a court ofrecord
underhis seal, justiceofthepeace, notary public,ormemberofthe
boardofsupervisors, beforeanypolicejustice,or mayorof anycity,
t o w n o r village. Acknowledgments in another state m a y be before
anyofthejudgesofthesupreme court, or any district judgeofthe
UnitedStates,orajudgeofthesupremeorsuperiorcourtinanystate
or territory, any justice of the peace, whose official character shall
becertified tounder thesealofsomecourt ofrecord inhis county,
orbyanycommissioner residinginsuchstateorterritory, appointed
bythegovernorofMississippi, oranotarypublicoraclerkofacourt
of record having a seal of office. Acknowledgments or proof of
deedstopropertyinthisStatebypersonsinaforeigncountrymaybe
madebefore any court of record, or the mayor or chief magistrate
o f a n y city, borough, or corporation where thegrantor or witnesses
reside, or m a y b e ; orbeforeany commissionerappointedby thegovernor of this State, or before any ambassador, foreign minister, secretary of legation, or consul of the United States. The certificate
shallshowthatthepartyor partyandwitness were identified before
the officer, and that the party acknowledged the execution of the
instrument, orthattheexecution wasdulyprovedbythe witness or
witnesses. Acknowledgment must state that party "acknowledged
thathesignedanddelivered" instrument.
Actions. Alldistinctionastoformsabolished. Servicefivedays
beforereturnday. Allactiontriableinthe circultcourtatfirstterm
inwhichthedefendanthasbeenpersonallyservedwithprocessthirty
daysbefore the returnday. Mandamus, quo warranto, mechanics'
lens, attachments, andreplevintriableatreturn termon fivedays'
notice.
Administration of Estates. H a d I n chancery court, according
towill,ifany. Claimsagainstdeceasedmustberegisteredwithinone
All, except, nationalbanks, arerequiredtomakeareport,notle
thanfourtimes each year, to the commissioner. Andthe cul
sioner shall make requisition on all banks for these reportsto
m a d e as ofdates prior to thedateoftherequisition, andsuchca
tobeknownonlytohimself. Suchreportsshallbeverifiedand
bepublished in full in a newspaper ofthe townorcitywhere
bank is located. Resources and liabilities shallbe statedin a
reports. Banks collecting drafts with bill oflading attached
hold funds at least ninety-six hours. Banks must give noti
administrator or executor ofdeceased persons ofdepositsofm
andpapers held for the deceased. Directorsofeverybanktot
atleastthreeregularmeetingseachyear andkeepacomplete
of all proceedings. Every bank with paidupcapitalofas a
as$100,000maydobusiness astrust company;mayactasguarla
receiver, etc.; m a y execute bonds inlegal proceedingsandgesera
performthedutiesofatrustcompany;mayestablishaspecial a
loandepartment; insuchdepartmentinterestonloansnot100
8per cent per annum. Bank not permittedtoallow thede
its n a m e by others in making loans.
Chattel Mortgages and Deeds ofTrustmaybeexecutedand
recordedasothermortgages. Foreclosureisusuallybytrustee's
Ifproperty be removed toanother county,mortgagemustbether
recordedwithin twelve months to affectpurchasers withoutno
Mortgagesonpropertytobeacquiredarevalid,butnotonachancer
stockofgoodsifthemortgagorremaininpossessionandcontr
business. Reservation of title by theseller ofachatteltosecu
purchase money is valid without record, even against purchases
withoutnotice..
Collaterais. Generallawprevails.
Contracts for sale of land, orfor lease formorethan oneyes",
tobeinwriting. Sameinregardtosaleofchattelsofthevalac
morethan$50,unlessdeliveryinwholeorinpartismade. Des
infuturesisforbiddenandagroundforattachment. Gamblingco
tractsandordinary contractsmadeonSundayvold.
Conveyances. Mayvesttitlepresentlyorinfuture. Allestates
inlandgreaterthanforoneyearmustbebydeed,andtoaffectpah
chaserswithout notice must be recorded. Estates tallprohibit
exceptthatadeedordevisemaybemadetoasuccessionof
doncesnotexceedingtwoandtotheheirsofthebodyoftherema
derman,or,indefaultthereof,totherightheirsofthedonorinle
Corporationsconvey under seal. Inallothercasesprivatese
yearafterthefirstpublicationofnoticetocreditors;registrationstops
abolished. Conveyances ordevises to twoormore,ortohusband
paldpro rata.
AffidavitsorOathsbeforeajudgeofanycourtofrecord, clerkof
suchcourt, masterin chancery, memberoftheboard ofsupervisors,
gain,andsell" operateasacovenantthatgrantorisseizedofsome
41
andwife,createtenancyincommon. RuleinShelly'scaseabolistes
t
hegeneralstatuteoflimitations. Alldebtsaretobepaidbefore Remaindergoodwithoutparticularestate.
heirs, distributors, orlegatees. Claims against insolventestatesare
Thewords"grant, ah
Justiceofthepeace,notarypublic,mayor, orpolicejusticeofacity,
town orvillage;in another state by any officer thereof, or of the
UnitedStates,authorizedtoadministeroaths.
Aliens. No restrictionsontherightsorresidentallenstoacquire
propertyordisposeofit. Non-residentalienscannotholdland,but
may takeliens thereon tosecuredebtsand purchaseat foreclosure
thereof,andthereafterholditfornotlongerthantwentyyears, with
powertosell toa citizen infee;orhemayretainitbybecominga
citizen.
AppealsfromJusticecourttocircultcourtwithintendays. From
circultand chancery courts to supreme court within two years.
Appealsalsoincertaincasesfromboardofsupervisorsandmunicipal
courts.
Arbitration. Parties may submitto arbitration ofone ormore
disinterestedarbitrators,withagreementthatpropercourtshallenter
judgment.
Arrestsmadebycertainofficers, orprivatepersonsmayarrestfor
offensecommittedin hispresence. No arrests or imprisonment for
debt.
Assignments and Insolvency. No insolvent law. Debtor,
thoughInsolvent,mayprefercreditors,ifingoodfaithandnobenefit.
direct or indirect,is reserved. No provision forthedischarge o f a
debtoronhismakinganassignment. Ingeneralassignments, where
thevalueexceeds$1,000,theassigneemustgivebondandadminister
thetrustinchancery. Preferencesnotprohibited. Practicallysupersededbybankruptlaw.
Attachment. Against adebtor whoisa non-resident or who
removesorisabouttoremovehimselforpropertyoutoftheState:
w h o soabscondsorconceals himselfthathe cannotbeservedwitha
summons; or w h o incurredthedebtinconducting thebusinessofa
ship,steamboatorotherwatercraftinsomeofthenavigablewaters
ofthisState; orwhoassigns ordisposesofhisproperty, orsomepart
thereof,orisabouttoassign ordisposeofhispropertywithintentto
defraudhis creditors; o r w h o has property or rightsinactionwhich
heconcealsandunjustlyrefusestoapplytothepaymentofhisdebts;
estate of inheritance. Words"convey and warrant" operate
general covenant of warranty. The words "conveyandwarrant
specially" operateasawarrantyonlyagainstthegrantororth
claimingunderhim. Aquitclaimdeedhaspracticallythesameeffect
Husbandand wife, if living together, mustjoininconveyance
Incumbranceofhomesteadofeither,oritwillbevoldastoallunder
$3.000
Corporations. Corporations except for theconstructionand
operationofarallroadotherthanstreetrailroads,andthecarrying
onofaninsurance business, otherthan mutual insurance,mayb
createdunderageneralcharter.
Applicationforchartersignedbyeachoftheincorporatorsa
acknowledged. Itmust thenbe publishedthreeconsecutivewee
Inanewspaperpublishedatthedomicileoftheproposedcorporation
T
heapplication,withproofofpublication,mustbeforwardedtothe
secretaryofstatetogetherwiththefeeforrecording. Thesameto
theattorneygeneralforhisopinionastotheconstitutionalityand
legalityoftheproposedcorporation,afterwhichitisreferredtothe
governorforhisapprovalordisapproval. Thegovernorthenreturns
Ittothesecretary ofstatewithhisactionendorsedthereon. Ifbe
approveit, the secretary of stateshallrecorditinhisofficeand
certify to thesamerecords, andtransmitsittotheapplicants.
mustberecordedintheofficeoftheclerkofthechancerycourtof
thecountyinwhichthecorporationshalldobusiness. Withinthirty
daysaftertheorganization, thecorporstion mustmakereporta
theorganizationtothesecretaryofstave. Ifsuchreportbenotrate
thecharter grantedshallbevold,andallpersonsdoingbusr
thereonshallbedeemedpartnersinthebusiness,andliableassach
Corporations thuscreatedpossessthepowersusualandincideb
toprivatecorporations generally,butexistenceisrestrictedto
years. Corporations created asabove named may holdproperty
necessaryfortheirpurposes,notexceedingonemilliondollars, ma
facturingcompaniesandbanksexcepted,whichmayholdproperty
t o t h e a m o u n t not exceeding two million dollars.
orwhohasconvertedorisabouttoconverthispropertyintomoney
orevidencesofdebt,withtheintenttoplaceitbeyondthereachof
creditors; or who has fraudulently contracted thedebt or incurred
theobligationforwhichsuithasbeenorisabouttobebrought,may
beattached. Inadditiontothosenamedabove,thefollowinggrounds
exist: "9. That thedefendant isbuying, selling, ordealing in, or
Underthelawspassedbythe Legislatureof1913all corporat
orforatermofyears,to, orown land foragriculturalpurposes
t
his Stateoutsideofanincorporatedcity, town,orvillage. A
porationmaybelessor orlesseefornot morethantwentyyears
asmuchas 10,000acresoflandtobeusedforagriculturalpur
butanysuchlease or contract shallnotberenewedorextended
astoauthorizetheholdings ofsaidlandsforanotherperiod.
Thislawdoesnotpreventcorporationsfromtakingdeedsofred
ormortgagesonrealestatetosecureloansordebts,orfromacq
directlyorindirectly, bought, sold, ordealtinfuturecontracts, commonlycalled'futures.' 10. Thatheisindefaultforpublicmoney,
duefromhimasaprincipal,totheState,orsomecounty,city,town,or
villagethereof. 11. Thatdefendantisabanker,bankingcompany,
years.
whetherdomesticorforeign, arenotallowedtoacquiretitlein
haswithinsixmonthsnextbeforethesuingoutoftheattachment, I titletheretouponforeclosure ofsuch securities orfromac
titletolandbydeedforthecollectionofdebts,andthatallla
acquiredmaybeusedandoperatedafterforeclosureforallscr
turalpurposesduringthetimesoheldfornotlongerthant
or corporation, andreceiveddeposits ofmoney, knowing atthetime
thatheoritwasinsolvent,orhasmadeorpublishedafalseorfraudulentstatement asto his or itsfinancialcondition." Attachmentsfor
debtsnotdueallowedfor last six grounds orwhenthecreditorhas
Justcausetobelievethatthedebtorwillremovehimselforhis effects
outofStatebeforedebt will bedue, with intent to defraud. Nonresident creditors have the same rights of attachment as resident
creditors, whether the debtor be resident or non-resident. Plaintiff
mustfurnishbonddoublethedebtandmakeaffidavitastooneormore
grounds. Suitdoesnotabateonverdictfordefendant, onapleadenyinggrounds;butjudgmentonthedebt,tobeoffsetbydamagesinfavor
ofdefendantforwrongfullysuingoutattachment.
Anycreditorsmay
interveneandcontestgroundofattachment.
AttachmentinChanceryonbillagainst theproperty, ordebts
A l l e nIsacquiredby
thesuit. Ifa writfortheseizureofgoodsis obtained, bondis re-
Itisalsothedutyofeverycorporationthatshallacquireinterest
inortitletolandin this Statetofilethedeedtosameinthe
oftheChanceryClerkofthecountyinwhichsuchlandorapart
it, islocatedwithinsixtydaysafterthedateofthedeed
Ifanycorporationorotherpersonshallhaveacquiredans
titleorinterest
inanylandinviolationofthisAct,theyshshallbede
solvedbyasuitbroughtbytheAttorneyGeneraloftheStateorof
theDistrict Attorney, ifit isadomesticcorporation,andifafa
residentcorporationtheyshallnotbepermittedtodobusbes
this State,andthecourtshallthereafterappointareceiverto
chargeofallproperty inthis Statebelonging tosuchcoritat
soheldintrustandtodisposeofthesameunderorderofthe
andafterpayingalldebtsofthecorporationandallcostsandcharges
incidenttosaidsuit,theremaindershallbepaidanddistributed
ofanabsent,non-resident,orabscondingdebtor.
thestockholders.
quired.
ThisActdoesnotaffecttherightsofexistingcorporationsintha
State,butispassedtopreventamonopolyinagricultural'ands
1417
BANKING A N D C O M M E R C I A L LAWS-MISSISSIPPI
Corporations m a y take a lien on property real, or personal, toa
greateramount than they m a y h o l d a s a s e c u r i t y foradebt,ifsame
Thewagesofeverylaborerorpersonworkingforwages,beingthe
headofafamily, totheamountoffiftydollarspermonth; butthis
paragraphshallnotapplytoadebtforboardandlodging ora judg-
Individually lable for the debts the corporation contracted during
his ownership ofstock for the balance that m a y remainunpaid for
stocksubscribedforandmaybe suedbyanycreditor. Directorsare
llableforthewilfulmismanagementorforallowingcapitalwithdrawn
whiledebtsexist. Corporations underthelaws ofotherstatesorof
foreigncountries m a y sueinthisState. a n d h a v e t h e s a m e rights in
theStateas non-residentIndividuals. Thelegislature mayrepeal or
a m e n d charters grantedafter N o v e m b e r 1. 1890. provided rights of
stockholdersarenotinfringed.
Costs. Non-residentorinsolventplaintiffrequiredtogivesecurity.
Courts. TermsandJurisdiction. Justices' courtsmeettwiceeach
month; circuit a n d chancery courts in each county twice a year;
supremecourt twicea year, In Octoberand March. Justices' courts
havejurisdictionupto$200. CircuitcourtshavegeneralJurisdiction
o f a l l c o m m o n l a w a c t i o n s where t h e a m o u n t or value exceeds $200,
mentfoundedonadebtforboardandlodging.
shallbeheld for alonger period thanten years. Stockholders
Theproceedsofinsuranceonproperty, real andpersonal, exempt
from execution orattachment, andtheproceeds ofthesaleofsuch
property
Payable to Executor. Life insurance policy not exceeding five
thousand dollars, payable to the executor, or administrator, shall
Inuretotheheirsorlegatees,freed fromallliability forthedebts of
the decedent, except premiums pald on the policy by anyone other
t h a n t h e insured a n d d e b t s d u e forexpenses of last lliness a n d for
burial;butifthelifeofthedeceasedbeinsuredforthebenefitofhis
heirsorlegateesatthetime ofhisdeath otherwise:and they shall
collectthe same, the s u m collected shallbe deducted fromthethree
thousanddollars,and theexcess of thelatter only shall be exempt.
Lifeinsurancepolicytoamountnotexceeding$10,000.00goestoparties
namedasbeneficiaries freefrom liabilityfordebtsofinsured.
H o m e s t e a d i n Country. Every citizen being a householder, a n d
havingafamily, shallbe entitled tohold exemptthelandandbuildings owned and occupled as a residence, butthequantity shall not
exceed one hundred and sixty acres, nor the value thereof, inclusive
and jurisdiction of appeals from justices' and mayors' courts, and
boards of supervisors. Chancery courts have jurisdiction of the
administrationofestates ofdeceasedpersons, ofminors' businessand
otherprobatematters, andofall mattersinequity. Appeals m a y b e
of improvements, save as hereinafter provided, the sum of three
taken tothe supreme courtfrom any final Judgment of the circuit
thousanddollars.
HomesteadinCities. Every citizenbeing ahouseholder,andhavI n g a f a m i l y residinginany city, town, or village, shall be entitled
tohold, thelandandbuildingsownedandoccupied asaresidenceby
court,andfromthechancerycourt, exceptInsuitsfornotmorethan
$50 originatinginthe Justice's court. Sults of equitable cognizance
Improperly broughtin the circuit court are transferred to chancery
court,andviceversa. Nosultdismissedbecausebeingofanequitable
natureitis improperlybroughtin the circuit court a n d econverso.
such person, not to exceed In value, save as hereinafter provided.
three thousand dollars, and personal property, to be selected by
him, notto exceed in value two hundred and fifty dollars, or the
Creditors' Bills may be filed under general to subject equitable
assets a n d i n aid of execution at law. Such bills m a y , under the
statute,befiledtosubjectpropertyofadebtorfraudulentlyconveyed
withoutajudgmentandreturnofnullabona;andthiswhether complainant'sdebtisdueornot. Nobondisrequiredunlessasequestrationisdesired.
C u r t e s y a n d D o w e r . B o t h abolished since 1880.
D a y s o f G r a c e . Inlandand foreignbillsofexchangeandpromissory notes f o r a s u m certain payable onlyin m o n e y are entitled to
three days of grace; other contracts are not. (Seealso Notes a n d
articlesspecifiedasexempttotheheadofafamily.
Homestead exemption may be increased to $3,000 in value by
filing forrecordin chancery clerk's office a declaration claiming as
exemptcertainproperty.
Nopropertyisexemptasagainst purchasemoneyorforlaborperformedonitormaterialfurnishedtherefor. Moneyloaned atrates
ofinterestnotexceeding6percentisexemptfromtaxation.
Foreign Corporations m a y do business a n d sue and be sued as
I n c a s e ofdomestle corporations. (See Corporations.)
Salesofmerchandiseotherwise thanin usual courseofbusinessand
salesofentirestock ofgoodsingross presumedfraudulentandvoidas
Bills.)
D e e d s . (SeeConveyances.)
Depositions in civil cases, on written or verbal interrogatories;
tendays' notice to opposite party. I f s u c h p a r t y i s a b s e n t a n d h a s
no attorney, filing interrogatories ten days sufficient. T h e officer
tocreditors, unless5days beforesale, seller makecompleteinventory
andthepurchasermadedemandofsellerforname,addressandamount
ofclaimof eachcreditor, and thepurchasernotifiedpersonallyorby
maileachofcreditors ofprasedsaleandofcostpriceofmerchandise
shall swear the witness to testify the truth, and shall impartially
andthepricetobepaidtherefor.
Incaseofdestructionofstockofmerchandisebyfire,onwhichthere
examine h i m on the Interrogatories. T h e testimony shall be fairly
writtendownbytheofficerorwitness, orbyadisinterested person in
thepresenceof, andshallbesubscribed by the witness. Depositions
thencertified, a n d transmitted by mall or other safe a n d convenient
m a n n e r to the court where the s a m e are t o b e used. Officer's certificate prima facie evidence of his character.
D e s c e n t a n d Distribution. Estates of inheritance, real and
personaldescend. 1
Tochildrenandtheirdescendantsperstirpes.
2. To brothers a n d sisters a n d fatherandmotherinequalpartsand
isinsurance,holderofpoliciestonotifycreditorsheowesformerchandiseofhislossand amountofinsurancecarried, within 5days.
F r a u d a n d Fraudulent Conveyances. (See Attachment, Bills
of Lading, Limitations, Creditor's Bill.)
Garnishment on judgments orin attachment. Binds debts or
property ofdebtoringarnishee'shands.
G r a c e . (See Days ofGrace, N o t e s a n d Bills.)
theirdescendantsbyrepresentation. 3. Tothenextofkinaccording
to thecivil law. Except among brothers and sisters there is no
HolidaysareJan.1, Feb. 22,April26, June3, July4, firstMonday
In September, fourth Thursdayin November, a n d December 25.
Homesteadownedandoccupledbyhusbandlivingwithwifecannot
representationamongcollaterals. Advancements mustbebroughtinto
hotchpot. No distinction between children of the whole blood and
besold orencumberedunless thewifejoinsintheconveyance. The
sameistrueas tohusbandif wife owns homestead. (See Exemp-
thoseofthe halfblood, except that children of the wholeblood are
preferred to those ofthehalfblood in equaldegree.
W h e r e there is
tions.)
H u s b a n d a n d Wife. Thedisabilities ofcoverture areabolished,
as are dower and curtesy. Husband a n d wife m a y contract with
a n d s u e e a c h other, but contracts forcompensationforservices rendered to each other are vold. I f h u s b a n d rents wife'sland, mules,
no one to inherit property escheats. Illegitimates inherit from the
mother and f r o m her other children a n d her kindred. Children of
illegitimates and their descendants inherit from brothers and sisters
oftheirfather or mother and from grand parents. But childrenof
illegitimates do not inherit fromany ancestor or collateralkindredif
therebelegitimateheirs ofsuchancestoror collateralkindred,inthe
samedegree. Exempt property ofhusband or wifedescends tosur-
etc.,anddoesbusinessinhisownname,itwillbedeemedthebusiness
ofthewifeastothosewithoutnotice,unlessthecontractbe recorded.
Transfersbetween arevoldas to third persons unless recorded. (See
a l s o M a r r i e d W o m e n , Wills, a n d Homestead.)
vivorandchildren as tenantsincommon.
D o w e r a n d Curtesyhavebeenabolishedsince1880.
Evidence.
In the m a i n c o m m o n law rules apply.
Insolvency. No general Insolvent laws, but insolventestates of
Partles and
decedentsaredividedamongcreditorspro rata.
interested persons competent; except againstdecedent. Affidavit to
openaccount entitles to judgment, unless defendant denies under
oath. Warehouse receiptsand bills oflading conclusive evidence in
favorofa bona fide holder that the property was received by the
shipdebts,andeconverso.
Executions in circuit court Issue within twenty days after the
adjournment ofcourt unless otherwise ordered by the plaintiff, and
m o r e is stipulated or collected all interest is forfeited.
IncaseofInsolvencypartnershippropertyisappliedfirsttopartnerInterest.
Issuer. (See alsoAccountsandAffidavits.)
Injusticescourtsafterthelapseoften daysfromjudgmentrendered,
unlessrecoveringparty makesaffidavitthatheisindanger, bydelay.
oflosinghisdebtordemand,inwhichcaseexecutionissuesforthwith.
No redemption ofproperty sold underexecution or mortgage.
Exemptions. The following personal property is exempt from
seizure under execution or attachment, to-wit:
Thetoolsofamechanicnecessaryforcarryingonhistrade.
The agricultural
laborers.
Implements ofa farmernecessaryfortwomale
Theimplementsofalaborernecessaryinhisusualemployment.
Thebooksofastudentrequiredforthecompletionofhiseduca-
tion.
Thewearingapparelofeveryperson.
Thelibrariesofallpersons,includingpictures,drawings,andpaint-
Ings,notexceedingfivehundreddollarsinvalue;alsotheinstruments
ofsurgeonsanddentists, usedintheirprofession,notexceeding two
hundredandfiftydollarsinvalue.
Thearmsandaccoutrementsofeachpersonofthemilitiaofthe
Allglobesandmapsusedbytheteachersofschools,academies,and
colleges.
Thefollowingpropertyofeachheadofafamily,tobeselectedby
thedebtor.Isexempt:
State.
Twowork-horsesormules,and oneyokeofoxen.
Twoheadofcowsandcalves.
Tenheadofhogs.
Twentyheadofsheepandgoatseach.
Allpoultry.
Allcoltsunderthreeyearsoldraisedinthis Statebythedebtor.
Twohundredandfiftybushelsofcorn.
Tenbushelsofwheatorrice.
Fivehundredpoundsofpork,bacon,orothermeat.
Onehundredbushelsofcottonseed.
Onewagon,andonebuggyorcart,andonesetofharnessforeach.
Fivehundred bundles offodderand one thousand poundsofhay.
Fortygallonsofsorgnumormolassesorcanesyrup.
Onethousandstalks ofsugarcane.
Onemolassesmillandequipments,notexceedingonehundredand
Artydollarsinvalue.
Twobridlesandonesaddle,andonesidesaddle.
Onesewingmachine.
Householdandkitchenfurniturenotexceedinginvaluetwohundreddollars.
Legal rate 6 per cent per annum, and isexempt from
any taxes, but parties may contract inwriting for 8percent,when
4
Judgments enrolledbecome liens ondefendant's propertywithin
the county. Ajuniorjudgment creditor may obtain priority as to
propertyleviedonbyhim,If, aftertendays' notice, theseniorjudgment creditors fail to issue executions and point out the property.
Lien of judgment continues seven years.
Jurisdiction.
( S e e Courts.)
Liens. Lienofanenrolled judgment, ofmechanics and material
men, of landlord and laborer on agricultural products, innkeeper's
andstablekeeper'sllen. Thesellerofgoodsmayenforce llenforthe
priceofthesame, provided the goods are still inthe handsof the
purchaseroronehaving notice. Theprocedureisby affidavit, filed
atthecommencementsuit,statingthatthepurchasemoneyisunpaid.
Awritofselzure issues, and thegoods aretaken. Titletopersonal
propertymaybereserved bythe sellerassecurityforthe price, and
thisisgood evenasagainstasubsequent bona fide purchaser, withoutanywritingorrecord.
Limitations. Open accounts, accounts stated, a n d verbal con-
tracts,express orimplied, threeyears; all other contracts, sixyears:
awards ofarbitrators, six years; judgments a n d decrees rendered in
anotherstateagainst residentof this, three years; rendered in this,
seven years; real actions, ten years. Actions to recover property
soldunderorderofchancerycourtmustbebroughtwithintwoyears,
where possession is taken a n d purchase m o n e y pald in good faith.
Whenthelegaltitleto propertyor rightinactionisinanexecutor,
guardian, or other trustee, beneficiary, though under disability, is
barred when trustee is barred. Action against administrator or
executoronclaimagainstpersondeceasedlimitedto4yearsfromdate
ofqualification of such administrator or executor.
Statutedoes not
applytosuitsonnotesorevidencesofdebtofbanksorother moneyed
corporations. Anacknowledgmentornewpromisemustbeinwriting.
Statutedoesnotrunduringfraudulentconcealment,noragainstinfant
or person n o n compos mentis, nor against a convict in actions for
assault,etc.,untilafterrelease,noragainst State,county,municipality,
oranypoliticalsubdivision ofState
Married W o m e n retain their estate, common law disabilities of
coverture abrogated; have capacity to m a k e contracts a n d do all
acts inreference to property Dowerand curtesy abolished. Husband and wife mustjoin in conveying or encumbering homestead.
(SeealsoHusbandandWifeandDescent.)
M o r t g a g e s a n d Trust D e e d s do not takeeffectastocreditors or
purchasersin good faithand without notice until they are delivered
I t o the clerk for record; with power of sale are foreclosed by salein
Allfamilyportraits.
pals;withoutpowerofsale,bysuitinchancerycourt,andafterforeO n e m o w e r a n d rake forcuttingand gathering hayorgrain.
closure there is no redemption. (See Chattel Mortgages.)
Andthefollowing propertyshallbeexemptfromgarnishmentor
Notaries. Havepowertoadministeroaths, takeacknowledgments
therlegalprocess, t o w i t
andtoprotestnotesandbills. (SeeConveyances,andNotesandBills.>
BANKING A N D COMMERCIAL LAWS-MISSOURI
1418
St
acquiredbyanaliencreditoratforeclosuresalemustbedisposedof
th
NotesandBillsmustbeprotestedandnoticegivensubstantially withinfiveyears.Arbitration.
Partiestoacontroversymaysubmitthesameto
asatcommonlaw,to bindpartiesentitled to notice. Promissory
notes,unlessindorsed,arenotrequiredtobeprotested;demandand arbitrators,andtheirawardbeconfirmedbyacourtandjudgment
noticearenecessarytofixllabilityofpartiessecondarilyliable. There
t
s
e
r
A
.
n
o
e
r
h
t Nopersoncanbearrestedundercivilprocess.
Allnotes, bills, drafts, etc.. rendered.
or
isnolawdefining commercial paper.areassignable,andsultmaybemaintainedinthenameoftheassignee;
Voluntary assignments must befortheequal
defendantcanmakealldefenseswhichhehadagainstpayeebefore benAssignments.
efitofallthecreditorsoftheassignorandareadministeredinthe
noticeofassignment: butthis doesnot applytopaperpayableto circuitcourt.
Nosuch assignmentoperatesasadischargeofthe
bearer,orpayableinanotherstateorcountrywhereadifferentrule
obtains. Foreignbillsprotestedfornon-acceptanceornon-payment, assignorfromhisdebts.Attachments. Thewritmayissuewhenthedebtorisanon-res!draw10percentdamages;billsdrawnpayableintheUnited States, dent;orconceals himselfsothattheordinaryprocessoflawcannot
protested for non-acceptance,draw damages 5 per cent. Checks, beserved;or,hasabscondedorabsentedhimselffromhisusualplace
draftsandnotespayableondemand,arenotentitledtoanydaysof ofabodeinthisState,sothatprocesscannotbeserved;or,isaboutto
grace;whilenotes,billsanddrafts,areentitledtothreedaysofgrace. removehispropertyoutoftheStatewithIntenttodefraud,hinder,or
Whereabankcheckisexpresslymadepayableonafutureday,or delayhiscreditors;or,isabouttoremoveoutoftheStateandchange
the
where,bythewayitisdrawn,ittakesthecharacterofadraftor hisdomicile:or, hasfraudulentlyconveyed, concealed,orremoved
de
Domesticbillsdrawn
b
billofexchange.Itisentitledtodaysofgrace.
onandpayableinthisStatefor$20orupwardmustbeprotestedfor hisproperty,orisabouttodoso,tohinderordelayhiscreditors;or,
hasfailedtopaythepriceofanyarticlewhichhewasboundtopayfor
ifacceptedfornon-payment;theyaregoverned
non-acceptance,or,
uponitsdelivery,orhasfraudulentlycontractedthedebt;or,where
bythesamecustomsandusagesasforeignbillsofexchange,butno
damageaccrues. Whenthedayonwhichanybillornotewouldbe thecauseofactionaccruedoutofthisStateandthedefendanthas
byitstermspresentableforacceptanceorpayment,accordingtoits abscondedorsecretlyremovedhispropertyintothisState;or,where
termsshallfall on Sunday, orlegalholidays shallbepresentedon thedamagessuedforarisefromthecommissionofafelonyormis
demeanorortheseductionofafemale;or,thedefendantisacorpora
tionwhosechiefofficeorplaceofbusinessisoutofthisState. The
thedaybefore.
Governed by general plaintiff,hisagent,orattorneymustmakeaffidavittooneormoreof
Partnership.
Few
statutory
p
r
o
v
i
s
i
o
n
s
.
law. Incase ofinsolvency, partnership propertymust go to pay thesegrounds,andtheplaintiff,exceptwherethedefendantisanonarm debts, and econverso. Provision madeforlimited orspecial resident,mustgivebondfordoubletheamountofthedebt.
Banksareorganizedunderagenerallaw. Thecashcapitalmust
partnerships.Powers of Attorney. May be acknowledged or proved and notbelessthan$10,000normorethan$5,000,000,andincitiesof
recorded as deeds. Mayberevoked inlikemanner. Conveyances 150,000ormore,notlessthan$100,000. Theentirecapitalmustbe
oflandorotherpropertyunderpowersofattorneyarevalid.
subscribed,
one-halfthereofpaiduponorganization,andtheother
D
halfwithinoneyear.
DirectorsmustberesidentsofthisState. The
Redemption. Noredemptionfromsalesundermortgage, execu- r
eceiptofdepositswithknowledgeofthefactthatthebankisinfalling
Two yearsallowed for redemption of circumstances
tion, orotherjudicial sale.landsoldfortaxes,savingtominorsandpersonsnoncomposmentis
, ispunishablebyfineorimprisonment,andofficers
andagentsconsentingtothecreationofdebtswithsuchknowledge,
alikeperiodafterremovalofdisability.
areindividuallyresponsibletherefor. Notmorethan25percentof
Replevin lies to recover personal property wrongfully withheld itscapital stock mustbeloanedtoanyindividualorcorporation.
fromtheowner. Thepropertymayberestoredtodefendantonbond.. Largepowersofsupervisionandcontrolarevestedinthebankco
2
missioner. Privatebankersmusthaveapaid-upcapitalofnotle
Ifhedeclinestobond,plaintiffmaydoso.ofthepropertymaygivethebondIfneitherdoes,aclaimant
andreceivepossession. Damages t
han$10.000.andincitiesof150,000populationormore,notlessthan
maybeassessedforwrongfultaking ordetention.
Taxes. Personal property is assessed once a year; real estate $100,000.Conditional Salesofpersonalproperty,unlessrecorded,arevold
every twoyears,andtaxesconstituteapriorllen. Landdelinquent astosubsequent purchasersingoodfaithandcreditors.
sold on first Monday of April. Redemption within two years, on
Apersonmayconveytitletolandsalthoughnot
paymentofalltaxes,costs, 25percentdamages,and 5percenton
,andalthough
thesamebeinadversepossession. The
amount paid. Infants and persons of unsound mind may redeem inpossession
.
Conveyances
ofthegrantorinadeedneednotbeattestedbyasubscrib
signature
withintwoyearsafterremovalofdisability,onpayingthevalueof ingwitness.
Adeedbyanaturalpersonneednotbeunderhisseal.
permanent Improvementsputonthelandaftertwoyearsfromdate Thecorporate sealmustbeaffixedtodeedsofcorporations. The
useoftheword"heirs"inadeedisnotnecessarytocreateafee
ofsTrust
ale. Companies. Provision for such companies with general simple.
Thestatute abolishes estatestailandconvertsanestate
tailintoalifeestateforthefirsttakerwithremainderinfeesimple
o administer
t - sall trrustse, make
w obonds
p and
e the
e liS
ke. (
totheheirsofhisbody. Thewords"grant,bargainandsell"are
employed inthegranting clauseofawarrantydeed;bystatutethose
Banks.)
WarchouseReceipts. (SeeBillsofLading.)
expresscovenants thatthegrantorwasseizedofan
Wills executed byanyone twenty-oneyearsold, ofsound mind. wordsconstitute
i
ndefeasible estateinfeesimple;thattherealestatewasfreefromall
Astoland,ifnotwhollywrittenandsubscribedbytestator,mustbe incumbrances
doneorsufferedbyhimoranypersonunderwhomhe
Anuncupativewill (ofper- claims;andforfurtherassurances ofthetitletobemadebyhimand
attested)
y
t
l
a
n
o
s
.
e
s
n
t
i
w
g
n
b
i
r
c
s
b
u
o
w
t
y
b
maybemadeduringlastsicknessoftestatorathabitation,
Title,subsequentlyacquired bythegrantorinawarranty
orwheretestatorhas resided tendaysnext beforedeath, orwhere deed, willimmediately passtothegranteewithoutfurtherconver
infuture
ai
ns
chee.irsAnestateoffreeholdmaybemadetocommence
personistakensickfromhomeanddiesbeforereturn;mustbeproved h
.
bytwowitnesses. Nun-cupativewillsnottobeestablishedwherevalue bydeed. Aninterestinrealestate,grantedordevisedtotwoof
morepersons,otherthanexecutors ortrustees,orhusbandandwife,
Soldiersandsailorsinactualservicemay
Norestriction isatenancyincommonunlessexpresslydeclaredtobeajointtenancy.
bequeathedexceeds$100.00.
bequeathpersonaltyfreefromstatutoryrestrictions.
uponthepowertodisposeofpropertybywillexceptthatreligiousor Aconveyance tohusband andwifecreatesanestateinentirety,a
Females ofeighteenyearsareconsideredoffull
Provisionsmadefor
renouncing
charitabletrusts or bequests void.
Probatedincomwillbysurvivinghusbandorwifeincertaincases.
monformmaybecontestedwithintwoyears. Onewhokillsanother atcommonlaw.
realestate. Inthecaseofman
ageforthepurposeofconveying
Corporations areformedundergenerallaw.
facturing andmostotherbusinesscorporations,thecapitalmustbe
cannottakeunderhiswill.
notlessthan$2,000normorethan$500,000,000
d eand
bir
c s b u s e b t s u m f l a h - e.n O
actuallypaidupinmoneyorpropertyofthefoll
valuethereof,ifpartofthecapitalstockispaidinproperty,theremustbeanitemizeddescription,theactualcashvalueofeachitem
Partofthestockmaybepreferred,payingnotto
exceed6percentannualdividends. Cumulative votingispermitted.
Directors mustnotbelessthanthreenormorethantwenty-one;three
ofthemmustbecitizensandresidentsoftheState, Astockholder
beingshown.
SYNOPSIS OF
capitalmaybeincreasedordiminished byavoteofthestockholders.
Bondedindebtedness cannotexceedtheauthorizedcapitalstockand
cannotbeincreasedoftwo-thirdsinvalueofthestockmayapplyto
thecircuitcourtforadecreeforthewindingupofthebusiness.The
M I S S O U R I
T H E L A W S OF
General Assembly of1913 enactedwhatispopularlyknownasa
"blueskylaw,"placingunderstrictsupervision
missioner,corporations andpartnerships carryingooftheBankCom
nthebusinessof
sellingandnegotiating stocks,bondsandsecurities(afewsecurities
RELATINGTO
Amplepowersofvisitationandsummaryactionareconferredupon
the Bank Commissioner, and penalties offineandimprisonment
BANKING A N D COMMERCIAL USAGES
excepted).
Aforeigncorporationmustfileintheofficeofthesecretaryofstate
acopyofitscharterwithastatementoftheproportionofitscapital
Preparedand Revisedby Messrs. GAGE,LADD&SMALL, Attorneysat imposedforviolationofthelaw.
stockinvestedin
Missour! andpaycertainfees. Itthenreceivesa
Law,KansasCity. (See CardinAttorneys'List.)
licensetodobusinessintheState. Itmustalsomaintainanoffice
intheState. ItspersonalpropertyinthisStatemaynotbeIncum
beredtotheinjuryofanycreditorwhoisacitizenofthisState,and
Acknowledgments. Acknowledgments ofinstrumentsaffecting nomortgagebyaforeigncorporationexceptarailroadortelegraph
realestatemaybebeforeoneofthefollowingcourtsorofficers. 1. company,tosecureadebtcreatedinanotherStateiseffectiveas
WithinthisState,somecourthavingaseal,orsomejudge,Justiceor againstanycitizenofthisStateuntilitsdebts,duetoresidentcitizens
clerkthereof, a notary public, orsomejusticeof the peace ofthe
atthetimeofrecordingthemortgage,havebeenpaid. Acorporation
Countyinwhichtherealestateissituated. 2. OutsideofthisState fallingtocomplywiththeseprovisionsissubjecttoafineandcannot
andwithintheUnited States,anynotarypublic,anycourthavinga
maintainasultinacourtofthisState. Acorporationofanycountry
3.
.
s
d
ed
f
o
r
e
n
o
i
si
mo
c
r
o
,
t
r
u
o
c
h
c
u
s
f
o
k
r
e
l
c
e
h
t
r
o
l
a
e
s
t
u
o
h
t
i
W
outsideoftheUnitedStatesbeforebeingauthorizedtotransactbus
theUnited States,anycourthavingaseal,themayororchiefofficer nessinthisStatemusthaveapublicofficeintheState,wherebooks
ofanycityortownhaving anofficialseal,anyminister, consulor shallbekept,showingindetailItsassetsandliabilities,thenames
r ofthe
e United
c Stai
fnotary
f publi
oc having
e a sheal. T
and residencesofitsshareholders,officers,directors,andmanagers.
tes, or
officialshouldcertifythat"beforemepersonallyappeared..
Noneoftheserequirementsapplytoinsurancecompanies.
hiswife,tomeknowntobethepersonsdescribedin,
and
Circultcourtshaveoriginaljurisdictioninallcasesoflaw
andwhoexecuted theforegoing instrumentandacknowledgedthat andequityandholdtwoormoretermsineachyearineachcounts,
they
executed
thesameastheirfreeactanddeed."
J
urisdictionofthesettlementofestatesofdeceasedpersonsisvested
Actions. Thereisinthis Statebutoneform ofcivilactionthe inaprobatecourtineachcounty.
Justicesofthepeacehavefar
practicebeingundera code. Anon-resident plaintiff mustfilethe dictionlimitedto$250;intownshipshaving200,000andlessthan
Courts.
writtenundertakingofsomeresidentforcosts.
400,000inhabitantsthejurisdictionis$500. Appealsliefromjudg
Administrationof Estates. Theprobatecourtin each county
hasjurisdictionofthesettlementoftheestates ofdeceased persons. mentsofjusticesandtheprobatecourttothecircuitcourt.
(SeeNegotiableInstruments.)
DaysofGraceareabolished.
Claimspresentedtothecourtforallowancewithinsix months after
Depositions. Maybetakenonnoticeofatleastthreedaysand
thegrantoflettersarepreferredoverthosepresentedlater. Claims
nedayadditionalforeveryfiftymilesofthefirst300andbeyondthat
notpresentedwithinoneyearfromthegrantingoflettersarebarred. o
Letters are granted: 1. To the husband or wife. 2. To those oneadditionaldayforeach100milesfromtheplaceofservingthe
notice. IftakenoutsideoftheStateacommissionIssuesfromthe
entitledtodistribution,oroneormoreofthem. IfaftertheexpiraThey
int
tionofthirtydaysafterdeathofdeceased,suchpersonsdonot,onfive theStatebyanyjudge,justiceofthepeace.notary
publimaybetaken
c,clerkofacwoit
uhr
days'notice,appearandqualify,lettersmaybegrantedtoanyother mayororchiefofficerofacityortownhavingasealofoffice:andifout
person. Non-residents cannot be executors or administrators, nor court
oftheStatebyanyofficerappointedbyauthorityofthelawsofthis
is
p
e
n
d
i
n
g
.
inwhich the sult
maynon-residentexecutors oradministrators maintainanactionin
this State.
Allens. Allensorallencorporationsmaynotacquire,holdorown
realestateexceptsuchasmaybeacquiredbyinheritanceorinthe
ordinary courseofjustice in the collection ofdebts. Real estate
BANKING AND
COMMERCIAL
State to take depositions, a consul or commercial representative of
theUnitedStateshavingaseal,ormayorofanycityortownhavinga
seal, o r a n y judge, justiceofthe peace, or otherjudicial officer, or a
notarypublic. T h e y maybetakenuponwritteninterrogatories,but
thisis not customary. T h e names of the witnesses or of the officer
n e e d n o t b e mentionedinthenotice. Objections tothecompetency
orrelevancyofthetestimonyneednotbenoted,butcanbefirstmade
LAWS-MISSOURI
1419
llenofajudgmentcontinuesforthreeyears,andmayberevivedatany
time within ten years from its rendition. Execution m a y issue at
a n y t i m e withintenyears from the rendition o f a j u d g m e n t . W h e n
t w o o r m o r e judgments are rendered at the s a m e term as between
partiesentitledtotheJudgments, thelienscommenceonthelastday
o f t h e t e r m a t w h i c h theyarerendered. Judgments bearinterestat
6 p e r c e n t , butifuponcontracts bearing more than 6 p e r cent, the
Judgment bears the rateofthe contract.
Liens. Statutory provisions exist for mechanics' liens, liens of
keeping horses a n d other animals, liens of I n n a n d boarding-house
keepers, liens of contractors, material-men, and laborers against
w h e n i t i s o f f e r e d a t t h e trial.
D e s c e n t a n d Distribution of Property. T h e r e a l a n d personal
estateofan intestatedescendsandisdistributedas follows: 1. To
his children or theirdescendentsin equal parts. 2. If there b e n o
chlidrenortheirdescendants, thentohisfather, mother,brothers,and
sisters,and theirdescendantsinequal parts. 3. I f t h e r e b e n o chil-.
drenortheirdescendants, father, mother, brotherorsister, northeir
descendants, then to thehusband orwife: I f t h e r e b e n o h u s b a n d or
wife, then to the grandfather, grandmother, uncles a n d aunts, and
theirdescendantsinequal parts. 4. I f t h e r e b e n o children ortheir
descendants, father, mother, brother, sister, or their descendants,
husband or wife, grandfather, grandmother, uncles, aunts, or their
railroads.
Limitations.
1.
Actions must be
c o m m e n c e d within ten years:
Upon any writing for the payment of money or property. 2.
O n a n y covenants of warranty or seizin containedin a n y deed. 3
F o r recovery of lands. 4. For relief hot otherwise provided for.
Within five years: 1. U p o n contracts, express or implied, except
Judgmentsordecrees ofcourt. 2. U p o n a statutory liability other
t h a n a p e n a l t y or forfeiture. 3. Trespass. 4. Replevin, a n d for
anyotherinjurytothepersonorrightsofanothernotarisingoncontractandnototherwiseenumerated 5
Forreliefonthegroundof
fraud. Within three years: 1. Against pubile officers for acts of
descendants, thentothegreat-grandfathers,great-grandmothers,and
theirdescendants,inequalparts,andsoon,inothercaseswithoutend
passing to thenearest lineal ancestors a n d their children, a n d their
descendants in equal parts. Posthumous children inherit. W h e n
therearecollateralsofthehalfblood,theyinherithalfasmuchasthose| theactionisgiven
officialcommissiono
roamiparty
ssion.o r a2.
or
or
re
to
p a rFt
ya
ap
ne
dn
ta
hl
etSyt
af
to
er
.fei
Wt
iu
tr
he
iw
nhtew
o
of the whole blood.
Lineal descendantsin equal degree take per
years: Actionsforlibel, slander, assault,battery,falseimprisonment,
or criminal conversation. Statute does not begin to run against a
resident of this State w h o i s a b s e n t a t the timeitaccrues, untilhis
return:Ifhedepartafterit accrues, the period ofhisabsence isnot
counted. Acknowledgments or promises, to take a case from the
operation of the statute, m u s t b e in writing. Judgments are pre-
capital:butwhere partofthemaredeadandpartliving, the issueof
thosedeadtakeperstirpes. W h e n a w i f e s h a l l d i e w i t h o u t a n y child
orotherdescendantsinbeing,capableofinheriting, herwidowershall
beentitledto one-halfthe real a n d personal estate belonging to the
wifeatthe timeofherdeath, absolutely, subject tothe paymentof
thewife'sdebts,andthewidowtakesalikeshareoftheestateofher
I sumedtobepaidaftertenyears. Acauseofactionbarredbythe
on his death without lineal descendants. An illegitimate
husband
childInherits fromits mother, a n d vice versa. Anillegitimate child
becomes legitimate ifthe parentsIntermarry.
D o w e r . D o w e r i n r e a l e s t a t e i s a s a t c o m m o n l a w , butthe widow
has the right, at her election, to choose certain portionsofherhus-
lawsoftheStateinwhichitoriginatedisbarredinthis State.
Limited Partnership. M a y consistof oneor more general and
oneormorespecial partners. Specialpartnerscontributing aspeci-
band's estate asolutely, in lieu ofdower. A w i d o w may renounce
fiedamountincashtothecapitalarenotpersonallyliableforthedebts
of the partnership and have no power to transact its business. A
portionsoftheestate.
therecorderofthecounty. Therecanbenolimited partnershipfor
provisionsinawiilinlieuofdowerandelecttotakeabsolutelycertain
verifiedstatementofthetermsofthepartnershipmustbefiledwith
N o c o n v e y a n c e b y t h e h u s b a n d orsaleunder
thebusiness of insurance or banking.
M a r r i e d W o m e n . A m a r r i e d w o m a n i s d e e m e d a f e m m e soleso
Judgmentordecree willbardower. Theestatebythecurtesyexists
a s a t c o m m o n law.
Executions. Unlessmotionfornewtrialisfiledwithinfourdays
farastoenablehertocarryonortransactbusinessonherownaccount.
issues immediately. Real estate mustbe
tocontractandbecontractedwith, t o s u e a n d b e sued, toenforceor
ofrealestatemustbeadvertisedfortwentydays;ofpersonalproperty
haveenforcedagainstherpropertysuchjudgmentsasmayberendered
fororagainsther,and m a y s u e o r b e s u e d a t l a w o r i n e q u i t y , with or
after Judgment, execution
soldduringasessionofthecourtwhichrenderedthejudgment. Sales
fortendays.
w i t h o u t h e r h u s b a n d being joined as a party.
Execution sales areforcash.
Her real estate and
personalpropertycannotbetakenbyanyprocessoflawforthedebts
Noexecutionisalien
I t m a y issueat
uponpersonal property untilactual seizure thereof.
anytimewithintenyearsfromtherenditionofthejudgment. Deeds
tothepurchaserare madeatonce by the sheriff, no confirmation of
o f h e r h u s b a n d . Neither the rents, issues, or products of her real
estate, northeinterestofherhusbandinherrightinany realestate.
c a n b e levied on forhis debts.
M o r t g a g e s . Mortgages on real estate are executed like deeds.
salebeing required.
Exemptions. The homestead ofthe head ofafamilyis exempt.
inthecountrytotheextentof160acresnotexceedinginvalue$1,500,
Husband and wife mustjointobardower orhomestead, except to
Incitiesof40,000,eighteensquarerods,notexceedinginvalue$3,000;
adeedoftrustwithpowerofsaleinthetrusteeupondefaultinthe
securepurchasemoney.
incitiesof10,000, thirtysquarerods,notexceedinginvalue$1.500:In
townsofless than 10.000, tenacres, not exceedinginvalue$1,500.
Theexemptioncontinues tothewidowandtothechildrenuntil their
majority. Therearealsoexempt,whenownedbytheheadofafamily.
tenhogs,tensheep,twocows,andcertainfarmimplements;twowork
animals spinningwheel, loom,andsmallquantity ofhemp,flax, and
wool; wearing apparel: $100 In household and kitchen furniture;
mechanic'stools, provisionsonhandforfamilyuse;Biblesandother
books used in the family. Lawyers, physicians, ministers, and
teachershave the right to select professionalbooksin lieu ofother
propertyallowed to themanddoctors m a y select medicines.
Inlleu
ofcertainoftheexemptedarticlesanyotherproperty,notexceeding
$300 invalue, m a y b e selected.
FraudsandPerjuries. Noexecutororadministratorisboundby
bispromisetopayanydebtordamagesoutofhisownestate,andno
personisliableuponanyagreementtoanswerforthedebt, default, or
miscarriage ofanother, or m a d e in consideration of marriage, orfor
thesaleoflands oranyinterestinor leasethereofforalongertime
thanoneyear, oronanyagreementthatisnottobeperformedwithin
oneyearunlesstheagreementsuedon,oramemorandumthereof.isin
writingsignedbythepartytobechargedorhisauthorizedagent:and
nocontractforthesaleoflandsbyanagentisvalidunlesstheauthorityoftheagentisinwriting. Everygift, conveyance, orassignment
1
T h e c o m m o n f o r m ofreal estatesecurity la
p a y m e n t o f t h e d e b t . Saleisatpublicauction,upontwentyormore
days' public notice, as m a y b e provided in the instrument. The
trusteeexecutesdeed tothepurchaser. Thereisno redemptionfrom
saleunless theholderofthedebtisthepurchaser,inwhich casethe
debtormayredeeminoneyearif, atthesale,hegivesecurityforthe
payment ofinterest to accrue, Evidences ofdebt secured by mortgage o r d e e d of trust m u s t b e produced to the recorderwhensatis-
factionisentered. No foreigncorporationor individual mayactas
trustee in any deed of trust unless there be n a m e d as co-trustee a
MissouricorporationorindividualcitizenofthisState,andtheresident
trustce mustbeapartyplaintiffinanaction toforeclose.
Chattelmortgages areinvalid exceptasbetween the partiesunless
possession of the property be taken a n d retained by the mortgagee
o r t h e m o r t g a g e be acknowledgedand recordedinthe c o u n t y o f t h e
mortgagorinthesamemannerasconveyancesofrealestate,orunless
themortgageoracopythereofbefiledintheofficeofthe recorderof
the county of the mortgagor, or, where heis a non-resident of the
State, t h e n i n t h e office oftherecorderof the c o u n t y i n w h i c h the
propertyis situated. Every such mortgage ceases to be valid after
theexpirationoffiveyearsfromthefilingofthesame.
Negotiable Instruments. T h e GeneralAssembly of this State
hascodified thelawofnegotiableinstrumentsbythepassage o f " A n
act relating to the negotiable instruments, to revise a n d codify the
oforchargeuponrealorpersonalpropertymadewithintenttohinder, lawconcerning thesame,andtoestablishalawuniformwiththat
subject."
Theactis t h e s a m e a s thatadopted
delay,ordefraudcreditorsordefraudordeceivepersonswhoshallpurchasethesamelands.is vold against creditors andpurchasers, prior
andsubsequent. Thedisposition ofthelarger partorthewholeofa
stockofmerchandise pertaining to vendor'sbusiness otherwise than
intheordinarycourseoftrade, isfraudulentandvoidasagainstcreditorsofthevendor, unless the vendeeshall, at least sevendaysbefore
thesale furnish to the creditors a statement ofthe consideration for
thesale,theamount oftheindebtedness ofthevendor, a n d t h e n a m e s
ofhis creditors. All creations of trustin lands mustbein writing
except those resulting by Implication of law.
Garnishment. Garnishees may be summoned under writs of
attachment or execution. A garnishee may discharge himself by
ofotherstatesonthe
bymanyotherstatesinaccordancewith the recommendationofthe
American Bar Association.
ItbecameeffectiveinMissouriJune16,
1905.
PowerofAttorney.
Aninstrumentofwritingcontainingapower
todoanyactorbusiness, Including theconveyanceofreal estate,as
agentorattorney foranother, w h e n a c k n o w l e d g e d i n t h e s a m e f o r m
asrequiredfordeeds, m a y b e read inevidencewithoutfurther proof
of its execution.
Probate L a w . (SeeAdministration of Estates.)
Protest. (See Negotiable Instruments.)
deliveringupthepropertyorpayingthedebttotheofficerunderorder
Replevin. Goodsorchattelswrongfullytakenorretainedmaybe
pleader. Notmorethan10percentofthe wagesdueforthelast
certaincasesdefendantmayretainpossessionofthepropertybygiving
a b o n d in double its value. Ifplaintiff failin his suit, defendant
recoversjudgment againstplaintiff and the suretles on thebond for
ofcourt. Creditsorpropertyattachedinthehandsofagarnishee repleviedbytheownerorpartyentitledtopossession. Affi.nevigytrd
a
v
e
p
o
r
e
h
t
f
o
e
u
l
a
v
e
h
t
l
b
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n
i
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n
a
e
l
i
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e
b
t
s
u
m
n
Iit
maybeclaimedbyathirdperson,whomayasserthistitlebyInterthirtydays' serviceof thehead ofafamilyandresidentofthisState
canbegarnished. Public corporationsand theirofficers areexempt
fromgarnishment,asarealsoadministratorsandexecutorspriorto
anorderofdistribution.
Holidays. January 1, February 22, May 30, July 4, the first
MondayofSeptember,anygeneralprimaryelectionday,anygeneral
stateelectionday, anythanksgivingdayappointedbythePresident
orGovernor, and December 25 are public holidays; and whenany
thevalueof theproperty and damages.
Taxes. State a n d county taxes are usually p a i d i n N o v e m b e r
orDecember. Ifnotpaid,theyareregardedasdelinquentfromthe
firstdayofthesucceedingJanuary. Stateandcountytaxesforeach
y e a r a r e a l i e n u p o n thereal estatefrom the firstdayofJuneofthe
precedingyear. Delinquentstateandcountytaxesare collectedby
Municipal taxesare payableaccording to the provisions ofthe
October12is chartersorgenerallawsbywhichtheymaybegoverned.
ofthemfallonSunday,thenextdayissuchholiday.
Insome
alsoaholiday, knownas"Columbus," butisnotsuchasrespectscommercialpaper.
H u s b a n d a n d W i f e . (See Married Women.)
Interest. Legalrate6percent,butbyagreementinwritingany
ratenotexceeding8percent. Thelegalrateiscollectibleonmoneys
after they becomedue: on written contracts oraccounts, afterdue
anddemandmade: on moneyrecoveredforthe useofanotherand
retainedwithouttheowner'sknowledge. Ifusuriousinteresthasbeen
paidthatpartinexcessofthelegalrateisdeemedpaymentandcredite d o n thedebt, theholderofwhich recoversthedebtonlywithlegal
Interest after deducting such payments, and costs are adjudged
againsthim. Thereceiptorexactionofusuriousinterestuponadebt
securedbylienuponpersonalpropertyrendersthelieninvalid. Partlesmaycontract thatinterestmaybecompounded,butnotoftener
than once i n a year.
Judgments. Judgmentsanddecreesrenderedbyacourtofrecord
suit.
casesthepaymentofdelinquentcitytaxesmaybeenforcedbyasale
ofthe property without sult:in others, suit must be broughtbefore
s a l e c a n b e m a d e . There is no redemption from asale underajudgmentforstate and county taxes. Redemptionis usually allowed in
asaleforcitytaxesundertheprovisionsoftheparticularcharter.
W a g e s . (SeeGarnishments; Exemptions.)
Wills. Everymalepersontwenty-oneyearsofagemay,byhislast
will,deviseallofhisestate, real, personal,and mixed, and everymale
overthe age of eighteenj years, may,bequeath his personal estate.
W o m e n o f eighteenyears o f a g e a n d upward, married or unmarried,
maydevisetheirrealestateand bequeaththeirpersonalproperty. A
willmustbeinwriting,signedbythetestatororsomepersonbyhis
directioninhispresence,and m u s t b e attested by two or more com-
petentwitnessessubscribing theirnamesto thewillinthepresenceof
thetestator. Ifaftermaking thewillthetestatorshall marryanddie
leavingissueofthemarriagelivingatthetimeofhisdeath, o r b o r n t o
areliensontherealestateofthepersonagainstwhomtheyarerend
himafterhisdeath,thewillshallbedeemedrevoked. Thewillofan
ajudgmentfiledintheofficeoftheclerkofthecircuitcourtofany
orchildren,
thetestatoris
theirdeath,arenotnamedorprovidedforinthewill,
eredsituateinthecountyforwhichthecourtisheld. Transcriptof
othercounty becomesalienuponreal estate insuchcounty. The
unmarriedwomanisrevokedbyhersubsequentmarriage. Ifachild
orthedescendantsofsuchchildorchildren,incaseof
BANKING AND COMMERCIAL L A W S - M O N T A N A
1420
Banksofdiscountanddeposit,incorporatedunderlawsofMontana
deemed to nave died intestateasto such child orchildrenortheir fornotless than $20,000, allpaidincash, maydobusinesswhen
descendants. Wills must be presented for probateto the probate authorized by state auditor, certificateofauditortobepublished
courtofthecountyinwhichwastheplaceofabodeofthetestator. fourtimes intown orcountywherelocated. Eachdirectormust
Willsmaybecontestedwithintwoyearsaftertheprobatethereofby ownatleasttensharesofthebank'sstock. Bankmaydealinreal
rtransactionofItsbusiness,
RealestateinthisState estateonlyasisnecessarytothepropeD
petitiontothecircuitcourtofthecounty.
irectorsmustdeclaresemi-annual
maybedevisedbylastwillexecutedandprovedaccordingtothelaws orin
realizinguponsecurities.
dividendoutofnetearnings,andatsametimemakereporttoState
ofthis State. Personal estatemaybe bequeathed accordingtothe auditorofassetsandliabilities,andpublishonce.
Stockholdersare
lawsofthestateorcountryinwhichthewillshallbemade.
liable for banks' debts to extent ofstockheldbythem. Their
liabilitycontinuessixmonthsafteratransferofthestock. Failure
tocomplywithrequirementsforsixtydaysforfeitfranchise.
Thetotalliabilityofanyperson,firm,corporation,orcompanyto
any suchbankformoneyborrowedshallatnotimeexceedûftees
percentofpaidincapitalandpermanentsurplus;thisdoesnotapply
todiscountofbillsofexchangedrawnuponexistingvaluesorofcommercialpaperownedbypersonnegotiatingsame.
Eachsuchbankmustkeeponhandfundsequalto20percentof
Itsimmediateliabilitieshalfcashandhalfbalancesduefromsolvent
bank. One hundred dollars to five hundred dollarspenaltyfor
makingnewloanswhilereservebelowtheproportion. Lawsprovide
forstateexaminer,whovisitsand examinesfinancialconditionof
banksyearly. BankschargedcertainfeesforStateexaminerfund
Anyemployee,officer,oragentofanybankorpersondoingabank
business,whoreceivesdepositsknowingorhavingreasontoknow
thatsuchbankinginstitutionisunsafeorinsolvent,isguiltyoffelons.
andisliabletoimprisonmentforonetotwentyyears.
Banksmaybedissolvedbydistrictcourtuponvoluntaryapplica
SYNOPSIS OF
tion, orwhendeclared insolventbystateexaminer. Savingback
corporationmaybeorganizedwithnotlessthan$100,000normore
than$500,000capitaldividedintosharesof$100each,$100,000to
besubscribedincashbeforebeginningbusiness. Maydoagener
M O N T A N A
T H E L A W S OF
depositandloanbusiness. Stockholdersllabilitytosameextentas
inotherbanks.Foreignbankingcorporationsmayestablishbranchbanksinthis
Stateuponcompliancewithcertainspeciallaws.
Bankisnotliableforpaymentofforgedorraisedcheck,unless
claimismadewithinoneyearaftercheckisreturnedpaidtodeport
tor. (Session 1909.) Contracts ofconditional saleretainingtitle
BANKING A N D COMMERCIAL USAGES
Invendormustbefiledwithcountyclerkorarevoidastobonafide
purchasers,mortgageesorattachingcreditorspriortofiling.
Conveyances. Titletopropertyofanykind(exceptamerepos
sibilitynotcoupledwithaninterest),includingarightofre-entryfor
Revised by WIGHTand PEW
b
r
e
achofconditionsubsequent,andpropertyintheadversepossession
Helena.
AttorneyatLaw,
Deedtoseveralpersons,exceptte
ofanother,maybetransferred.executorsandtrustees,createstenancyincommon,unlessexpress
declaredajointtenancyinthedeed.
Thefeesimpletitlepassesby
Acknowledgments ofinstruments maybe taken inthis State. agrant,
unless expresslylimitedtoalesstitleinthedeed. Cove
Beforesupremecourtjustice, districtjudge, Justiceofthepeace, nantsthatthegrantorhasmadenopreviousdeedtoanyotherpet
1.
S.Comclerkofanycourtofrecord,countyclerk,notarypublic,orU.
son,andthatthepremisesarefreefromincumbrancebythegrantor
. 2.
rOutside
e nMontana
o iin the
s United
s i Sta
mtes.e Before
h t
justice,judgeorclerkofanycourtofrecord ofthe United States or oranyoneclaimingunderhimareimpliedfromuseofword"grant.
Amarried womanjoining withherhusband inanyinstrument
anystateorterritory; acommissionerappointedbythegovernorfor
thatpurpose,anotarypublic,oranyotherofficerauthorizedtotake affectingrealpropertyisboundtherebythesameasthoughsinge
Instrumentsaffectingrealproperty
acknowledgments. 3. Outside United Statesbefore minister, commay,ifacknowledged,
berecorded,andsuchrecordimpartsnotice
missionerorchargéd'affaires, consul,vice-consulorconsularagentof if
duly acknowledged byher.
the United States, ajudgeofcourtofrecord,commissionerappointed totheworld. (
S
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)
C
r
p
a
i
n areformedunderthegeneralstatute,exceptbank
bygovernorornotarypublic. Inallcasesacknowledgmentmustbe
ing, insuranceandrailroadcorporations,andcorporationsnotfer
takenwithinjurisdictionofofficertaking.
p
r
o
f
i
t
,
whicharegovernedbyspeciallaws.
Stockholdershaveone
"State
of
form:
Must beinsubstantiallyfollowing
190...before voteforeachshare,mayvoteinpersonorbyproxy,andmaycum
dayof
...8.8. Onthis
countyof.
Articlesofincorporationsfiledin
known
(nameand qualityofofficer) personallyappeared
tobethe personwhose name is late votes in director elections.Countywhereprincipalofficelocated,andcopyfiledwithsecretaryof
tome(orprovedonoathof
subscribedtothewithin Instrument, and acknowledgedto me that state;mayhold onlynecessaryrealestate;fromthreetothirteesdirectors,whomaybeempoweredtomakeby-laws:controlbusiness
Same for married women. In stockissuedformoneyorproperty;stockliabilitylimitedtounpald
(orthey) executed the same."
he
caseofcorporationsameto star, then "president or vice president portion, directorsassentingtocreationofdebtsbeyondsubscribed
(orsecretaryorassistantsecretary) ofthecorporationthatexecuted
thewithininstrumentandacknowledgedtomethatsuchcorporation capitalstockormakingdividendsoutofcapitalstockarejointlyand
executedthesame," andincaseofattorneyinfact,"whosenameis severallyliable therefor; stockholdermayexaminebooks,writes
transferorpowerofattorneytosell,anddeliveryofcertificatepasses
subscribedtothewithininstrumentasattorneyinfactof..
title, between parties and
bi
en
ag
ta
tc
aa
cp
hi
et
da
ol
andacknowledgedtomethathesubscribedthenameof.
Everyadgoamiensstticccroe
rd
pi
ot
ro
ar
ts
i;
om
na
hy
av
Outside
theretoasprincipal,andhisownnameasattorney-in-fact.
stockmustfilereportincountyclerk'soffice,withintwentydaysafterDecember31stofeachyear,showingamountofcapitalstock,amount
ofcountymust beaccompaniedbycertificateofcountyclerk.
booksofcorporation.
n oof
i Estateis
t a r t s ihad
n iin
m ddiA
oicttecocuritst.o N
str
paidincash,andamountpaidinproperty,amountofexistingdebtsandnamesandaddressesofdirectors,president,vice-president,ger
creditorspublishedfourweeks. Claimsnotpresentedinfourmonths eralmanagerand
ecretary; directorsneglectingtofileareJolly
after first notice, ifestate $10,000 orless, or ten months ifover andseverallyliablefos
rdebtsexistingduringfalluretofile;director
$10,000,arebarred.
mayexoneratehimselfbyfilingwithintendaysafterdefaultaffidavit
Letters ofadministration granted to: 1. Surviving husband or showingthatduringthetwentydaysheaskedpresidentorsufficient
.dlihC.3 Fatherormother. 4.
wifeorcompetentappointee.
2.
Brother. 5. Sister. 6. Grandchild.
7. Nextofkinwhoinherits.
Foreigncorporations,exceptinsurancecompaniesandcorporations
8. Public administrator. 9. Creditor. 10. Any personlegally directorstofile,andthatdefaultisnotduetohisneglect.
provided for, maydobusinessafterflingwithsecretary
competent. When several claim right and equally entitled, court otherwise
intendtodobusiness,copyofcharter
appoints, preferringmalestofemalesandwholebloodtohalfblood. ofstateandincountywhere
and verified statement ofpresident and secretary,showingname.
Affidavitsmaybetakenoroathsadministeredbeforeanyjudicial capitalstock,amountpaidinmoneyorproperty,assetsandofwhat
officer,clerkofanycourt,countyclerkornotarypublicinthisState; consist,andtheiractualcashvalue,andamountofliabilities;also
inanyotherstatebeforeacommissionerappointedbythegovernor, consenttobesuedandappointmentofagentforserviceofprocess
notarypublic,orjudgeorclerkofanycourtofrecordhavingaseal;
Ifcapitalincreasedordiminishedmustle
In a foreign country before an ambassador, minister, consul, vice- certificatethereofwithsecretaryofstateandcountyclerk,andrefusal
Mustwithintwomonths
consul,orconsularagentoftheUnited States, orjudgeofacourtof todosoforfeitsrighttodobusinessinState.
andacceptanceofsame.
afterApril1st,filereportlikeverifiedstatementjustmentioned,lo
recordhavingaseal.
Whentakenbeforeajudgeinanyotherstateorforeigncountry, countyclerk'soffice,andcopywithsecretaryofstate. Canhaveno
theexistenceofthecourt,signatureandofficialcharacterofthejudge
ForeigncorporationsdoingbusinessinthisStatearemadesubject
mustbecertifiedbytheclerkofsuchcourt,underitsseal.
greaterrightsorprivilegesthandomesticcorporations.
tothejurisdictionofthecourtsofthisStatethesameasdomestic
Aliensand Denizenshavesamerightascitizenstoacquire, use corporationsandtheirstockismadeattachableinthisState. Ses
anddisposeofmining propertyand real estatein connectiontherewith.
District courts have originaljurisdictioninlawand
Arbitration. Anycontroversyexceptovertitletorealproperty equity where over $50 involved;haveprobateandcriminaljurismaybesubmittedtoarbitrationbyawrittenagreementtothateffect sion1909.)Citypolicecourtsofpettycriminaljurisdiction. Justices
filedincourtandmaybe madean orderof court. Whenmadean ofp
eacelimitedto$300,pettycriminalcases;cannottrytitletoland.
Courts.
orderofcourtisirrevocable; otherwiseitisrevocableat any time norquestions ofconstitutionality. Appealsliefromjusticetocle
Supremecourtappellate
trictandfromdistricttosupremecourt.
before award. An agreement to arbitrate cannot be specifically d
i
c
t
couritoonf.lastresort,excepthasoriginaljurisdictioninapplicationsfor
enforced.
Arrest. Defendantinacivilaction maybearrestedwhenabout
toleavethe State or conceal his property, with intentto defraud
creditors, and incertainotheractionwherefraud, wilfulinjury, or habeascorpusandsimilarwrits.
Depositionsofresidentmaybetakenwhenwitnessisapartyin
wilfulviolationofduty,orwrongfulconversionofmoneyorproperty Interest, orresidesoutofthecounty,orisabouttoleaveandwil
None.
DaysofGrace.
pro
bablycontinueabsent
,oristooinfirmtoattend;orthetestimors
byapublicofficerorafiduciary,orforfineorpenalty.
Assignments. Voluntary assignments for benefit of creditors Istobeusedonamotion,orwhenwitnessisonlyonewhocanestaballowed ifwithout conditional preference,notco-erceive,impartial. lishamaterialfactandhispresencecannotbeprocuredatthetrial.
without reservation forfraudulentbenefit ofassignor, and doesnot Examination may be uponoral questionsorbyagreementupon
Incaseofnon-residentwithinUnitedStates.
conferpoweruponassigneetodelayexecutionofthetrust,norexempt
him fromliability for negligence or misconduct. Is under partial judgemayissuecommissionuponfivedays'notice,ifpartiesdonot
supervisionofthedistrictcourt.
agreeuponperson,toanyjudge,orjusticeorcommissioner. Itout
ofUnited
Attachments. Writofmaybehad atthetimeofissuing sum- w
ritteninteSrtraotgeast,ormiaeysb.edirectedtoaminister,embassador,consu
vice-consulorconsularagentoftheUnitedStatesinsuchcountry.
mons or any time thereafter in actions upon unsecured contracts orto
such person as may beagreed upon. ExaminationofDOEexpressorimpliedfordirectpaymentofmoney;orifcontractsorigi- r
esidentsunlessotherwiseagreed,mustbebywritteninterrogatories
when securityhas become worthless without plainnallysecured,
t
iff'sfault. Isissueduponaffidavitonbehalfofplaintiff,afterfiling
Intestates'realandpersonalproperty,subjecttopay
bondindoubleamountofclaim, ifunder$1,000;Ifover,inamount Imentofdebts,descendsasfollows: Ifwidoworsurvivinghusband
ofclaim;bondnevertoexceed $10.000. Anyproperty, realorper- andonechild,halftoeach;ifwidoworsurvivinghusband,andmore
sonal,ordebtduefromormoneyorpersonalpropertyheldbythird Ithanonechildoronechildandlawfulissueofoneormoredeceased
Descent.
child,one-thirdtohusbandorwifeandtwo-thirdstosuchchildren
person,includingjudgments,maybeattached."
Banks. Nospecial provisions regarding national banks except andissueperstirpes;ifnochildliving,two-thirdstolinealdescendthatallbanks,organizedunderlawsofthisStateortheUnitedStates,
shallbetaxedforvalueofitsstockincounty,
town,cityordistrict
wherelocated and not elsewhere, regardless of
residence ofstockholders.
RELATING TO
ant
bar
OD
sti
an
to
bro
hus
sur
Sha
or
fat
thr
001
the
est
ed
&D
OW
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d
ret
0
o
BANKING
AND
COMMERCIAL L A W S - M O N
thereof, ten years, b u t i n such cases statute does not run against
personwho a t t h e time title first descends oraccrues i s a m i n o r , or
ants, equallyifofsamedegree,ifnot,perstirpes;ifissueandnohusbandorwife,wholeestateto issueifsuchissueconsistsofmorethan
onechildliving a n d lawful issue ofdeceasedchild or children, then
Insane, or imprisonedoncriminalchargeforlessthanlife, until such
Inequal shares to living children and issueofdeceasedchildrenper
stirpes;ifnoissue,one-halftohusbandorwifeandone-halftofather
disability ceases: u p o n contract, account or promise in writing.
eightyears; to establishlost, concealed, ordestroyed will, or u p o n a
Judgmentofacourtnotofrecord,fiveyears;againstsheriff, coroner,
a n d m o t h e r inequalshares,oris eitherbedead, thewholehalfgoes
tothesurvivor. I f n o father or mother one-half in equal shares to
brothers a n d sisters or their children per stirpes. If no issue nor
husband or wife, entire estate to father a n d motherequally, or to
survivor. If no issue father, mother, husband, nor wife, In equal
sharestobrothersandsistersandto childrenofanydeceasedprother
orsisterperstirpes. Ifsurvivinghusbandorwife, a n d neitherIssue
father, mother, brother, nor sister, entireestate tohusband orwife;
i f n o n e o f a b o v e mentioned, to n e x t o f k i n i n equal degree, claiming
orconstableforbreachofofficialduty,actionfordamagesforwrongful
death, orforobligationnotinwriting,otherthanacontract, account
orpromise,threeyears;uponstatutoryliabilityforwasteortrespass.
detaineroforinjuryto chattels, forreliefonground offraudormis-
take, or for libel, slander, assault, battery, false Imprisonment or
seduction, two years.
debts, ifsheelectwithintwo monthsafterpaymentofdebts. A
womanmaybebarred ofdower byjointurewithherassentbefore
marriage, consisting offreeholdinlandsoflife,atleast, beginningat
d e a t h o f h u s b a n d . Dowerisnotaffectedexceptby wife'sdeed.
Executionunlessstayedbyorderofcourt,mayissueatonceupon
renditionofjudgment; becomesllen on personaltyupon seizureby
officerholdingwrit. Allpropertysoldtohighestbidder. Defendant
orcreditor m a y redeem from saleofreal estate within year, or sixty
daysafterprevious redemption.
Exemptions. To headoffamily, homestead to value of $2.500.
and descends as such to surviving wife orhusband and children.
Headoffamily allowed wearing apparel, chairs, tables, books, at
$200,allnecessary householdgoodsandcertaindomesticanimalsand
provisions for three months: forty-five days earnings exempt where
necessary for support of family, except one-half such earnings m a y
betakenfordebtsfornecessaries. Generally, tools and implements
oftrade, libraries, etc.,ofprofessionalmenwhoareheadsoffamilies.
Againstasheriff orotherofficer forescape of
civilprisoner;againstmunicipalityforviolationofordinance,against
officerfor m o n e y or property takenas such, andagainst railroadfor
stockkilledorinjured,oneyear; to recoverstocksoldfordelinquent
assessment, and actions against a c o u n t y after rejectionofclaim by
countycommissioners,six months.
All cases not specifically mentioned, five years. Statutedoes not
runduringabsenceofdefendantfromthisState.
M a r r i e d W o m e n . (See HusbandandWife.)
M o r t g a g e s of real estateare executed s a m e as deeds. H u s b a n d
through nearest ancestor;ifleaves morethanone child, orone and
theissue of one or more deceased children, a n d a n y such childdie
unmarried under age, his share goes to children of s a m e parent or
theirissueperstirpes. I f n o h u s b a n d , wifeorkindred,theproperty
escheats to State. Illegitimate childisheirofpersonwho acknowledgeshimself, inwritingbeforeacompetentwitness,tobeits father
a n d i s a n h e i r o f h i s mother;ifparents intermarry,islegitimatized.
D o w e r . Curtesy abolished. Wife endowed of third of lands
o w n e d b y h u s b a n d d u r i n g m a r r i a g e . Equitableestatesandcontracts
Included. N o d o w e r i n l a n d s mortgagedforpurchasepriceasagainst
mortgagee, nor inlands conveyedto h i m b y w a y ofmortgage unless
he acquire absolute title during lifetime, Devise or bequest bars
widow'sdowerunless otherwise expressedin will, but she m a y elect
betweendevise or bequest a n d dower, within one year in writing.
Ifhusbanddieleavingnochildrennordescendantsofchildren,widow
m a y have, absolutely, one-half of allhis estate after payment of
1421
andwifemustjointobardowerorhomestead,exceptpurchasemoney
mortgages. Non-judicial sale under power valid. Lien good for
eightyears after maturity ofdebt, a n d m a y b e r e n e w e d b y affidavit
for eightyears more. A s t o a n y mortgage nowexisting as t o w h i c h
eightyearsormorehaselapsedsamemay berenewedfor eightyears
1
byfiling affidavit in six months from February 17, 1913.
Chattelmortgagemustbedulyacknowledged,andbeaccompanied
byaffidavit of mortgageethat s a m e i s m a d e i n g o o d f a i t h a n d n o t t o
hinder,delay, ordefraudcreditors; notvalidexceptbetweenparties
until filed in county where propertyis situated. Lien good until
maturityofdebtnotexceeding twoyearsandsixtydays. M a y b e r e n e w e d by filing affidavit within sixty days after expiration of t w o
years, stating amountstilldue, andalleginggoodfaith, etc.
Negotiable Instruments. Mustbepayableinmoneyand must
containanunconditionalpromisetopayasumcertainondemandor
a t a fixed ordeterminable future time;must be payable to orderor
tobearer; maybeininstallments and containprovision that on a n y
defaultthe wholeshall become due; with exchange fixed or current
rate, Interest a n d attorney's fees for collection m a y authorize sale
ofcollateralsand confession ofjudgment:Ifit reads"I promise to
pay" all signers are jointlyand severally llable maybepayableat
fixedtimeafterdateorsight, orafterspecifiedcertainevent, but not
uponacontingency; need not specify valuegivennorplace where
drawnorpayable;ifissued, accepted, orendorsedwhenoverdueitis
payableondemand; m a y b e payabletotwo or more payees jointly,
a e exempt.
oroneormoreofseveral payees;absenceorfallureofconsiderationa
defenseagainst one n o t a h o l d e r i n d u e c o u r s e a n d partial fallure a
Fraud.
defenseprotanto. Onenotapartytoinstrumentplacingasignature
Itiscriminalfraud toattempttoobtainInsurancemoney
wrongfully; or fraudulently,destroysinsured property; to issue, sell,
transferorpledgeanyfalse, fraudulent or simulated stock certificate
or evidence of shares o f a n y corporation, or a n y officer to sign any
such certificate; unauthorized useofanother's n a m e in selling stock;
foradirector, officer, oragent ofcorporationtopublish falsereport
ofitsaffairs; to falsely represent one's self as competent to sell or
mortgage real estatewhensignatureofhusband orwifeisnecessary;
to get money or property by false representations as to wealth or
mercantile character; to sell any land after having once sold or
agreedinwriting tosell the sametoanother; to convey any real or
personal property with intent to defraud and deceive others or to
hinderordelaycreditors; towilfullycertifyanyfalseacknowledgment
with intent to defraud; to issue a n y false warehouse receipts or to
wrongfullyremoveordisposeofanypropertyforwhichawarehouse
receipthas been issued: for the mortgagortodisposeinany m a n n e r
ofanypropertycoveredbychattelmortgage. Anynegotiableinstrumentprocuredbyfraudorcircumventiontobeexecutedisvoldeven
inhandsofinnocentholder.
Frauds, Statute of. Agreementofexecutor or administrator to
answer for obligation ofdecedent out of his o w n estate; agreement
nottobeperformed inoneyear; promise toanswerforobligation of
another, unless itis m a d e an original obligation of promissory; an
agreementuponconsiderationofmarriage, exceptmutualpromiseto
marry; forsaleofpersonalty atapriceofover $200, unless partof
price paid or part of goods accepted, except at auction sale when
auctioneerentersaleinsale book; leaseforoveroneyear; forsaleof
realty, orauthorizing brokeroragentto sell landforcompensation;
isvoldunlessinwriting signed by partytobecharged orhisagent
dulyauthorized(Inwritingincaseofagreementsaffecting realestate).
Everytransferof property,orchargethereonmade,everyobligation
incurred, everyjudicialproceeding taken, andeveryactperformed.
withintentto delayordefraudanycreditor, orotherperson,ofhis
demands,isvoldagainstallcreditorsofthedebtorandtheirrepresentativesorsuccessorsin interst, and againstany personupon w h o m
theestateofthedebtordevolvesintrustforthebenefitofothersthan
debtor. Alldeclarations oftrustinlands shallbeinwriting, except
resulting trusts or trusts createdby Implicationoroperationof law.
Husband andWife. Husband mustsupport wifeifable; ifnot,
In blank before delivery becomes an endorser. Every endorser
engages that o n d u e presentmentit shallbe honored orthat he will
p a y t h e a m o u n t to holder or a n y subsequent endorser w h o m a y be
compelledto pay: no days ofgrace; whenmaturityfalls on Sunday
orholiday p a y m e n t i s d u e on nextbusinessday;ifdue o n S a t u r d a y
m u s t b e presented o n n e x t business day, but if payable on d e m a n d
h o l d e r m a y presentsamebefore noon on Saturday. F r a u d a n d cir-
cumventioninprocuringexecutionofinstrumentisadefenseagainst
Presentment. Itisnotnecessarytochargeoneprimarilyllable if
anyholder.
payable at special place ability a n d willingness to payit there at
maturityisequivalenttoatender;ifnotondemandit mustbepresentedondayitfallsdue,ifondemandthenwithinareasonabletime
afterits issue, except a bill of exchange must be presented within
reasonabletimeafteritslastnegotiation.
Alterations. Fraudulentormaterial, donotaffectoriginal instrum e n t i n h a n d s of innocent h o l d e r i n d u e course.
Acceptance. Unconditional promise in writing to accept a bill
beforeorafterdrawnisgoodinfavorofall who takeituponfaith
thereofforvalue.
Theholdermaydeclinea qualified acceptanceand
treatthebillasdishonored;ifhetakes qualified acceptance drawer
a n d endorsers are discharged, unless they consent thereto.
Protest, offoreignbills m a y b e madebynotary pubileorbyany
respectable residentofthe placeinpresenceoftwo or more credible
witnesses;bill ofexchangedoesnotoperatetoassignfundsinhands
ofdraweeandheisnotIlableunlessheaccepts.
Promissory Note. Must be unconditional promise in writing to
p a y o n d e m a n d or at fixed or determinable time a s u m certain in
m o n e y t o orderorbearer, a n d w h e r e d r a w n t o maker's o w n orderis
notcomplete until endorsed by him; maybeininstallments.
A Checkisabill o f e x c h a n g e o n a b a n k payable o n d e m a n d ; must
be presented within reasonable time after issue a n d i f dishonored
notice must be given ordrawerisdischarged to the extent of loss
c a u s e d b y delay; does not operate to assign a n y part of drawer's
fundsinbankandbankisnotliableunlessitacceptsorcertifies. If
holderhas check certified t h e d r a w e r a n d endorsers aredischarged.
The present negotiable instrument law of Montana consisting of
1 9 8 sections wentinto force March 7, 1903.
Its provisions do not
shemust assist; husband has no curtesy; wifehas dower; neither
canbeexcluded from others dwelling: maycontract witheachother,
orany other persons, the same as though unmarried; cannot alter
lezalrelationbycontract, exceptmayagreetoimmediateseparation,
mutual consent being sufficient consideration; may hold property
jointlyorincommon; wifemaysueanddefendalone;allpropertyof
wifeisherseparateproperty,andshecanconvey,orexecutepowerof
apply to instruments made prior thereto. The act so materially
changes thelawinthis State as to suggest theproprietyofspecial
examinationinanydoubtfulcase.
This law isnearlyifnotquiteidentical withthatnowinforce in
acknowledged. Filing inventory ofher personal property exempts
plaintiffistheownerofthepropertyorentitledtopossessionthereof;
thatitis wrongfully detained, and has not been taken fora tax,
attorney thereon without husband's consent. Her deed must be
samefromclaims against husband, exceptfor necessariesforherself
andherchildren. Wife must support husband out ofherproperty
ifheisinfirm. Wifemaydisposeofherpropertybywill,exceptthat
suchwillmustnot, withouthiswrittenconsent,deprivehusbandof
overtwo-thirdsofherrealestateortwo-thirdsofherpersonalproperty;
wifemaymakecontract, etc.,thesameasthoughsingle. Ifhusband
N e w Y o r k , Illinois,andotherstates.
Replevin. Theplaintiffinanactiontorecoverpossessionofpersonalproperty mayreplevy thesameatthetimeofissuingsummons
oratanytimebeforeanswer,uponmaking affidavitshowingthatthe
assessmentorfinepursuanttoastatuteorseizedunderanattachment
oranexecutionagainsttheplaintiff; orifsoseizedthatitisexempt;
andalsostatingtheactualvalueoftheproperty. Ademandforthe
deliveryof thepropertyshouldbeindorsedupontheaffidavitandan
neglecttosupporthiswife,billsfornecessariessoldhercanbecollected
undertaking in double the value of the property must be given.
Thedefendanthastwodaysinwhichtoexcepttoplaintiff'ssureties,
orhemayrequirethereturnofthepropertybygivinganundertaking
latedinsuchagreement.
indoublethevalueoftheproperty.
fromhim,butnotwhenseparatedbyconsent, unlesssupportstipu-
Interest. Eightpercentonjudgmentsanddamages. Inother
cases8percentinabsenceofagreement. Maycontractfornotmore
than12percent per annum.
Ifsuchundertakingisnotgiven
withinfivedaysfromthereplevy thepropertymustbeturnedover
totheplaintiff.
Taxes. Allkindsofproperty,exceptpubliepropertyandproperty
forbeneficent purposes, aresubjecttotaxfor publicpurposes only.
Such taxesarea lienupontheproperty, which lienhastheeffectof
Judgmentofcourtsofrecord(Includingfederalcourtsofcounty)
realtyincountyforsixyears;realtyinanothercountybecomessubJectto lienupon filing oftranscript ofjudgmentinsuch county.
Abstract ofjustice court judgmentbecomes lienonrealty inany
anexecutionlevied onall such asaredelinquentafterthe 30thday
of November, after which apenalty of 10 per centisadded. The
delinquenttax listispublishedinsomenewspaperonor beforethe
Liens. Laborersandmaterialmenhavelien,forlaborormaterial,
onproperty. Must filein couty clerk's office within ninety days
andsuitmustbebroughtwithinayearafterfiling. Hotel,boarding,
andlodging house keepers havelien onbaggage ofguests brought
a m o n t h f r o m thedateofsale. The purchaseris entitled t o a t a x
property, Including feedandcareofanimals,hasalienuponsuch
personalty oranimals.
Limitations ofActions, Actionuponjudgmentofanycourtof
record, actiontoredeemfrommortgagewhenmortgageeisinpossession, tenyears;actionsforrecoveryofrealestateormesneprofits
$100worthofpropertymustbepaidbyanyone,notabloodrelation.
Inheritingsuch property; andblood relationsandadoptedchildren
payataxof$1for$100worthofpropertyinherited. Estatesunder
iftranscriptofsuchjudgmentiffiledindistrict courtare lienon
countywhere filedindistrictcourt.
Intosuchhouse. Oneperforming servicewith respect topersonal
lastMonday of each year, a n d innotless than twenty-oneand not
m o r e than twenty-eight days after the first publication sale ofthe
realestate i s m a d e , subject to redemptiionwithin thirty-sixmonths
fromdateofsale. T h e p u r c h a s e m o n e y d r a w s i n t e r e s t a t 1 p e r c e n t
d e e d a t t h e e n d o f t h e thirty-six months butmustgivethirtydays'
noticetotheowneroroccupantoftheproperty. Taxesare assessed
tothepartyinwhosenamethepropertystandsofrecordonthefirst
Mondayin Marchofeach year. Aninheritancetaxof$5forevery
$7,500notliableforinheritancetax.
BANKING AND COMMERCIAL L A W S - N E B R A S K A
1422
wher
alienuponrealestate,ana,pursuantorsubsequenttosuch,maypur
need
alldisposeofsamewithintenyearsfrom
Redemptionmaybemadebeforedeedbypaymentoftaxes,10per chasesuchrealestate,butsh
the
Theseprovisionsdonotapplytorailroadsnor
centpenalty, 50centsforpublication,andinterestat1percentper timeofacquiringtitle.
sign
torealestateuponwhichbuildingsareerectedandmaintainedfor
esta
nortothatwithinthecorporatelimitsof
month.Actiontoannultaxdeedmustbebroughtintwoyearsafterdate manufacturingpurposes,
Itis
Allenswhodeclaretheirintentiontobecomecitizens
with
citiesandtowns.oftheUnitedStatesthirtydaysbeforeanelection,conformablytothe
ofissuance. [Session1900.J
out
Wills. Everypersonovereighteenyearsafageandofsoundmind
C
may disposeof allhis estate, real and personal, bywill. All wills, lawsofthe United Statesonsubjectofnaturalization,areelectors,
exceptnuncupative, mustbeinwriting. And allwills,exceptnun- sameascitizens.
C
Instead ofsubmitting a controversytoacourt,
cupativeandholographic,mustbeexecuted andattested asfollows: parArbitration.
Co
t
i
e
s
m
a
y
a
g
r
e
e
i
n
w
r
i
t
i
n
g
t
o
a
r
b
i
t
r
a
t
o
r
s
,
w
h
o
s
e
d
e
c
i
s
i
o
n
,
a
f
t
e
r
c
o
n
f
i
r
1. Must be subscribed bythe testatorhimself, or sone one in his mationbythecourt,shallstandasaverdict. Judgmentmaythen
and
d byhisdirection,
n a e cmust
n subscribehisnamethereto.
e s e r p . 2
fully
Thetestator'ssignaturemustbemadeInthepresenceoftheattesting beentered and execution issued.
ofe
Arrests. Arrestand imprisonmentincivilactionsfordebtare
witnessesoracknowledgedtohavebeenmadebyhimorbyhisauthorofsa
ity. 3. The testator must declare tothe attesting witnesses that
orat
s
e
s
e
n
t
i
w
g
n
i
t
s
e
t
a
o
w
t
e
b
t
s
u
m
e
r
h
T
.
d
e
h
s
i
l
o
b
a
Acknowledgments.)Every
ofpa
4.
theinstrumentishiswill.
An
E
x
e
m
p
t
i
o
n
s
,
a
s
s
i
g
n
m
e
n
t
f
o
r
b
e
n
e
f
i
t
o
f
c
r
e
d
i
t
o
r
s
s
h
a
l
l
b
e
m
a
d
e
t
o
t
h
e
s
h
e
r
i
f
f
o
f
t
h
e
Assignments
.
(See
I
nva
whomustsignthewillatthetestator'srequest, Inhispresence.
holographicwill isone entirelywritten bythe testatorhimselfand county,andshallincludeallpropertyoftheassignor,exceptsuchas
o
rju
subject to noform. The estate bequeathed by a nuncupativewill maybeexempt. Assignmentsshallbeexecutedandacknowledged
mustnotexceed $1,000 invalue,must beproved bytwo witnesses, thesameasadeedtorealestate,andwithintwenty-fourhoursafter
musthavebeenmadeinactualcontemplation,fear,orperllofdeath, Itsexecutionshallbefiledforrecordinthecountyclerk'soffice,and
asbe
andmustbeprovedwithinsixmonthsafterstatingthetestamentary Ifrealestateismentionedtherein, itshallalsoberecordedinthe
and
words unless the substance thereof was reduced to writing within registerofdeedsoffice,andwithinthirtydaysitshallberecordedin
C
Awill
executed
accordingto
A
c
r
e
d
i
t
o
r
anyothercountywherepropertyconveyedbesituated.
who
thirtydaysStatewherethetestatorwasthendomiciled
afterthey were spoken.
lawofthe
may bepro- mayfileandproveaclaimandconcurrenttherewith,maypursuea
I
n
t
er
separateremedyagainsttheassignorsforthecollectionofsuchclaim.
after
batedinthis State.
Conveyances,preferences,payments,pledgesortransfersofproperty
S
u
c
h
madebyaninsolventdebtorincontemplation ofsuchinsolvency,
C
withinthirtydayspriortomakinganassignment,arevoid,except
any
thattheassignormaypayorsecureclerksorservants'wages,not
from
exceeding$100toanyoneperson,andmaypayorsecureanydebt
part
createdwithinninemonthspriortothattimeandmaysecureany
form
debtcontractedsimultaneously withthegivingofsuchsecurity.
Diec
Attachments. Theplaintiffatorafterthecommencementofan
exce
action may have an attachment againstthedefendant'sproperty.
byfillinganaffidavitshowinganyofthe
whentheamountisdue,
Thatthedefendantisaforeigncorporation
and
2. Has abscondedwithintentto
the
1. HS
followinggrounds:
3.
at
salteef.tthecountyofhisresidencetoavoid
or non-resident ofthe
4. Soconcealshimselfthatasummons
defraud creditors.
5. Isabouttoremovehisproperty.
theserviceofsummons.
ofthecourtwiththeintent
cannotbeserveduponhim.orapartthereof,out
oftheIs
jurisa
db
ic
io
6.
otu
tntoconverthisproperty,or
C
to defraudhiscreditors.partth
e
r
e
o
f
i
n
t
o
m
o
n
e
y
f
o
r
t
rp
se
ci
gi
eyioc
nd
he
Haspropertyorrhe
ipguh
tos
ionfp
alcat
ino
ntwbh
hth
e
C
conceals. 8. Hasassigned,removed,ordisposedof,orisaboutto
7.
reachofhiscreditors.
disposeofhisproperty,orapartthereof,withintenttodefraudhis
creditors. 9. Fraudulently contracted thedebtor,incurredthe
obligation forwhich suit isbrought. Theaffidavitmustfurther
SYNOPSIS OF
showthenatureof plaintiff's claim,thatitisjustandtheamount
whichaffiantbelievesplaintiffoughttorecover. Noundertakingis
quiredwherethedefendant isaforeigncorporation,orisanon-resi
dentofthe State. InallothercasesplaintiffmustgiveanunderN E B R A S K A
T H E L A W S OF
takingindoubletheamountofhisclaim. Ifpropertycannotbe
seizedbytheofficeritmaybereachedbygarnishmentprocess.T
obtainattachment inanactionnotfoundedoncontract,original
petitionmustbepresented tojudgeofsupreme,districtorcounty
RELATINGTO
courtwhoshallmakeanallowance thereonoftheamountinvalue
oftheproperty thatmaybeattached,andtheamountofbond,if
BANKING A N D COMMERCIAL USAGES
any,tobegivenbyplaintiff.
Banking. Only Nationalbanksandstatebankswhichareincorporated underthelawsofNebraska,cantransactbankingbus
ngboardhasgene
4
RevisedbyMONTGOMERY,HALL& YOUNG,AttorneysatLaw,Omaha. nesshere. StatebankiEverystate
br
aa
nl
ks
mu
up
se
tr
ov
bi
ts
ai
ionncahnadrctoenrtfrroolm
who
in
st
at
ff
rs
s
Board appoints examiner
(See Cardin Attorneys' List.)
Aftereachex
av
mei
ni
agt
ie
oan
baain
k
ofall
s
t
a
t
e
banks.
mustpaytostatetreasurerfeeof$15to$50,accordingtocapital,
tofeachbankatleasttwiceayear.
his board.
Acknowledgments. (See Deeds) may be made in this State notmorethantwofeesinoneyear.
Savingsbanksmusthaveat
before a notary, judge or clerk ofany court, justice ofthe peace, ormore,$75,000. Otherbanksmusthavecapitalasfollows: Minicountyclerkordeputy, register ofdeedsordeputy, deputyclerkof least$15,000capital;ifincityof50,000to100,000,$35,000;100,000
district orcountycourtin nameofhis principal, secretaryofstate, mum,$10,000;intownof100to500, 15,000;500to1,000,$20,000;
Ifacknowledgmenttakeninany 1,000to 2,000, $25,000; 2,000to5,000,$35,000;5,000to25,000,
u
n
d
e
r
s
e
a
l
,
i
f
t
h
e
o
f
i
c
e
r
h
a
v
e
o
n
e
.
o
t
h
e
r state orterritory, itmust bein
accordancewiththelaws of $50,000;
1l
00
re
2o
00
00
25,000to
Suchcapital
shallbeinm1
o0
n0
e,
y0
,0
c0
r,
ed$
i1
t0
s0
,,
n0
a0t0i;ona
,,
s0
t0a0teo
,rcmoou
n,t$y
r,m0u
n.thisStateorofthestateorterritorywheretaken,andmustbebefore icipalbonds,bankfurniture,andthebankbuildingandgroundon
some court ofrecord or clerk or officer holding seal thereof, ora
whichsituated,whichgroundshallbeunincumbered,butinnocase
commissioner ofdeeds appointedbythegovernor ofthis Statefor shallthebankbuildingandground,togetherwithfurnitureandfixthatpurpose, ornotarypublic, orjustice ofpeace; ifbeforejustice tures,exceed invalueone-thirdorthefurnitureandfixturesalone
ofthepeace, acknowledgment must be accompanied by certificate 10percentorthenational,state,countyandmunicipalbondsone
ofhis officialcharacterunderhandofclerkofsomecourt ofrecord, ofthehalfpaid-upcapital. Beforecommencingbusinessthebankshall
towhichthesealofsuch courtshallbe affixed. Iftheofficerhave makeadetailedstatementoftheproposedbusinesstothebanking
no seal, then the acknowledgment must have attached thereto a board,which,afterapproval,shallissueacharter. Everybankmust
certificateoftheclerkofacourtofrecord, orotherpropercertifying makeat leastquarterly detailed reportsunderoath,showingthe
officerofthe district orstate wheretaken, under theseal of his amountloaneduponbondsandmortgages,amountloaneduponnotes.
office, showing that the person taking the acknowledgment was, billsofexchange, overdrafts,andothersecurities,withtheactual
atthedatethereof, suchofficerasheisthereinrepresented tobe; marketvaluethereof,theamountofrediscountsandofcommercial
thatheiswellacquaintedwiththehandwritingofsuchofficer;thathe paperpastdue,theamountinvestedinrealestate,atcost,theamount
believesthesaidsignatureoftheofficertobegenuine,andthatthe ofcashonhandandondepositinbanksortrustcompanies,withtheir
deedorotherinstrumentisacknowledgedinaccordancewiththelaws namesandtheamountdepositedineach,andtheamountofallother
asthebankingboardmay
ofsuch state, district, orterritory. Ifacknowledgmenttakenina assets,togetherwithsuchotherinformation
AsummaryofsuchreportmustbepublishedInsomelocal
foreigncountry,itmaybeacknowledged beforeanynotary public,
andproofofsuchpublicationtransmittedtothebanking
newspaper
ministerplenipotentiary,extraordinaryorresident, chargé d'affaire
s
.
commissioner, commercialagentorconsulofthe United States. In board,andsuchboardmaycallforspecialreportsatanytime. Falloc
rh
eraecphodraty
dn
et
lhienbqouoeknsc
executing acknowledgment, notarles public must writeinthe date ru
er
qe
ut
io
rm
ea
.kereportsentailsapenaltyof$5
i0
nf
su
s'
os
ri
oy
f
andthosemakingfalsestatements
whentheircommissionexpiresorelsesaiddatemustbeimprintedon
thebankmaybepunishedasfelons. Itislikewiseafelonyforabank
theActions.
irseals. Mustbebroughtbyrealpartyininterest.exceptasto
toreceivemoneysorpermitsametobereceivedondepositwhenthe
bankisinsolvent;toloantoanofficeroremployeofthecorporation
administrator, trustee, etc. However, assignees ofchoses in action
withouttheapprovalofamajorityofthedirectors;tocarryasasseta
assignedforpurpose ofcollectionmaysueonanyclaimassignedin
anynoteorobligationofthepartnership,memberthereof,orindividu
writing; butsuchassigneesmustgivesecurityforcosts. Non-resident
al, wheresuchpartnership orIndividualdoabankingbusiness;to
permitshareholders,wherethebankisacorporation,tobecomeIn
plaintiffmustgivesecurityforcosts.
debtedinasumexceeding50percentofthepaid-upcapitalofsuch
Administration of Estates. (See Decedents.) County courts
Every stockholder isliablefordebtsaccruingduringhis
haveexclusivejurisdiction overestates. Administration isgranted
ownershipofstock,foranamountequaltothepald-upvalueofthe
towidowornextofkin,orboth,orsomeoneselectedbythem;butif
sharesheld,andallsharesofstockareassessedintheplacewherethe
unsuitable,oriftheyfallforthirtydaysafterdeathofapartytoapply
bankislocated,whethertheownersthereofresidethereornot,and
forletters,samemaybeissuedtoacreditor,ortosomeoneselected bank.
Aguarantyfundisprovidedby
by the judge. Executors and administrators must give bond, as taxesarealienuponthestock.
assessments onallstatebanksbasedupontheaveragedallydeposits
requiredbythecourt,andmust,withinthreemonthsafterappointBankmayloannottoexceedtentimesamountofcapitalstockand
ment, makereportofall property belonging to deceased. General
A
l
l
s
t
a
t
e
b
a
n
k
s
i
n
c
i
t
i
e
s
o
f
o
v
er25,000mustkeepareserve
surplus.
letters ofadministrationare onlyissued afterduenoticetoparties
Rediscounts andbillspayablemustnotexceedtwo
Interested, andifcaseisurgentaspecialadministratormaybeappointed.whoshallmakereportwithintwoweeks. Personallyisdisthirdsofpaidupcapitalexceptforpaymentofdepositors.
posedofunderdirectionofthecountycourt,buttosellrealestate,
licensemustbeobtainedfromthedistrictcourt. Debtsofdecedent of20percent.
(SeeNotesandBillsofExchange.)
arealienuponallrealestate.
Affidavits. (See Depositions.) Amdavits may be made before
BillsofExchange.
ChattelMortgages.
Everychattelm
ortgage,ifnotaccompanied
.)
(Seecorporations
anyone authorized to takedepositions, and must be subscribedin byanimmediatedeliveryofthegoodsandbefollowedbyanactual
Sky Law.
Blue
presenceoftheofficerandsworntobeforehim,andthisfactmustbe
continued
change
ofpossessionthereof,isabsolutelyvoldas
Bulk
Sales.
(Seesales.)
statedintheaffidavit. IfmadeoutofStateandtheofficerhasnoseal, and
against
c
r
e
d
i
t
o
r
s
ofthemortgagorandasagainstsubsequentpar
affidavitmusthaveattachedtheretoacertificateofclerkofacourt chasersandmortgageesingoodfaith,unlesssuchmortgage,oracops
reciting authority ofsuch officer.
thereof,befilledinthecountyclerk'sofficewherethemortgagorresides,
Allens. Non-residentaliensandforeigncorporationsmaynotown andifhebeanon-resident,thenintheclerk'sofficeofthecounty
orholdrealestateinNebraska,butthewidowsandheirsofsuchallens
whoheldlandspriorto March16, 1889,havetenyearstodisposeof
theirinterests, andthosewhoacquiredtheirownershippriortothat
datemaydisposeofsameduringtheirlife.
Ifnotsodisposedof,the
.
e
t
a
S
e
h
t
o
a
e
h
c
s
d
n
a
l
e
r
i
u
q
c
a
y
m
s
n
e
l
a
t
n
e
d
i
s
r
n
o
,
r
e
v
w
o
H
BANKING
wherethe mortgaged property be situated.
AND
COMMERCIAL L A W S - N E B R A S K A
Such chattel mortgage
1423
n e e d n o t be acknowledged unlessitconveyhousehold goods used in
thefamilybythehusbandandwife,oreither,inwhichcaseitmustbe
statements required. Permit fee, $25, first year, $10 year thereafter
foreach agent, onepermit, one dollar per year. State railway commission investigates a n d gives information but does not recommend
signedandacknowledgedbybothhusbandandwife, thesameas real
securities. Par value ofstocks must be $100.
estateconveyances.
Verbal mortgages are goodbetweentheparties.
Costs.
Itisafelony to transfer ordisposeofpersonal property mortgaged
(See Security forCosts.)
Courts. (SeeActions, Appeals.) Juvenile courts areestablished
withoutprocuring theconsentof the mortgagee, or to remove same
for treatment and control ofdependent, neglected and delinquent
outofthecountywithIntenttodefraudthemortgageeofhissecurity.
children.
Justice and county courts are for all practical purposes,
C l a i m s . (See Accounts, Administration of Estates.)
| open at all times except holldays; but their jurisdictionis limited.
C o m m e r c i a l Travelers. (See Licenses.)
District courts have general jurisdiction, and have exclusive jurisConditional Sales. A sale orlease of personalty m a y b e made
diction in certain cases. T h e terms of the district courtin each
a n d title thereto retainedin the vendor until the purchase price be
countyarefixedby thepresiding judgeatthebeginningofeachyear.
fully paid, orconditioncompiled with, byhaving the contractofsale
Thesupremecourthasoriginaljurisdictioninafewcasesprovidedby
orleaseinwriting signedbythevendee or lessee,andthenniingcopy
statute, butits workis principally confined toreviewingdecisions of
t h e district court.
ofsameinthecountyclerk'soffice,withaffidavit ofvendor,hisagent
orattorneyattached thereto, giving n a m e s a n d fullandtrueinterest
Curtesy. Abolished 1907. (SeeDecedents.)
ofpartiesanddescriptionoftheproperty. Suchsaleorleaseshallbe
D a y s o f G r a c e . (See Notes.)
Invalldatexpirationoffiveyearsasagainstpurchasersingoodfaith,
Decedents. (See Administration of Estates.) Ifa partyleaves
orJudgmentorattaching creditors, unless the vendororlessor shall.
nowillhispropertydescendssubject tohisdebtsasfollows:
withinthirtydayspriortotheexpirationofthefiveyears,repeatthe
filing,whichmustbemadeannuallythereafter. Thesesalesarevalid
1. One-fourth to thehusbandorwife, ifsurvivorisnot theparent
ofthechildren. 2. One-third to thehusband orwife, ifsurvivoris
parentofthechildren. 3. One-halftohusbandorwife, ifoneor no
childliving. Residue toblood relatives. 4. I f n o h u s b a n d orwife
surviving, tothechildren inequal shares and lawful issue ofdeceased
child by representation. 5. If no issue, to father a n d mother or
survivor. 6. If no issue nor parents,in equal shares to brothers
andsistersand children ofsuch deceased, by representation. 7. If
no parents norbrothers nor sisters, to next of kin in equal degree.
b u t w h e r e there are two or more collateral kindredin equal degree.
but claiming through different ancestors, those claiming through
nearest ancestor are preferred to those more remote. Provision is
alsomadeforsurvivingchildrendying underageunmarried. Claims
asbetweenthepartiesandasagainstjudgmentorattachingcreditors
andsubsequentpurchasersand mortgagees withnotice.
Consignments. Itisafelonyonthepartofafactororagentto
w h o m goods have been consigned to sell or assign such goods with
Intenttodefraudthe owner. Isalsoafelonyfortheownerofgoods,
afterreceiving a n a d v a n c e m e n t u p o n t h e s h i p m e n t , tosellortransfer
suchgoodscontrarytotheagreementbetweenhimandtheconsignee.
Contracts. Everycontractforthepurchaseorsaleofrealestateor
anyinteresttherein,exceptaleaseforaperiodnotexceedingoneyear
f r o m the making thereof, must b e i n writing a n d subscribedbythe
p a r t y t o b e charged. Every agreement by its terms not to be performedwithinoneyearfromthemakingthereof,everyspecialpromise
t o a n s w e r for thedebt, default or misdoings ofanother, every agreement, promise, undertaking m a d e u p o n consideration of marriage,
except mutual promise to marry, a n d every special promise of an
executor or administrator to answer damages out ofhis o w n estate,
a n d every contract for the sale ofgoods a n d things in action, for
thepriceof$50, or more, shallbe voidunless noteor m e m o r a n d u m
b e m a d e i n w r i t i n g b y thepartytobechargedthereby. If,however,
w h e n contract for sale of goods a n d chattels of the value of $50 or
againstestatesmustbepresentedwithintimefixedbyprobatecourt.
of which notice is given by advertisement, andis not less than six
m o n t h s n o r m o r e t h a n two yearsafterlettersofadministrationissue.
D o w e r a n d curtesy are abolished.
D e e d s (see Acknowledgments, Married W o m e n ) m u s t b e s i g n e d
Inpresence of one witness and acknowledged. Grantor's seal not
required. Deedconveysallinterestofthegrantor, unlessacontrary
Intention isexpressed.
Depositionsmaybe takenatanytime afterserviceofsummons,
moreismade, andapartofthe purchasepricethereofispaid, ora
a n d m a y b e u s e d a s e v i d e n c e o n l y w h e n t h e w i t n e s s d o e s n o t r e s i d e in
thecountyoftrialorisabsenttherefrom,orisunabletoattendcourt,
orisdead, o r w h e n written testimonyis required insteadofitbeing
oral:maybetakenbeforevariousofficers,butareusually takenbefore
anotarypublic. Theofficermustnotbearelativeortheattorneyof
eltherpartyorotherwiseinterestedintheeventoftheaction,andthis
factshouldbestatedinhiscertificateattached to thedeposition. If
takenoutoftheState, and theofficerhasnoseal,acertificateunder
partofthegoodsandchattelsaredelivered,tothebuyer,nomemorand uConveyances.
m isnecessary. (See
See Statuteof
Fraud.) Conditional Sales.)
Deeds, Mortgages,
Corporations. (See ForeignCorporations.) AnynumberofpersonsmayassociateandIncorporatefor the transactionofanylawful
business, Including the construction of canals, railways, bridges, and
otherworks of internal Improvements. Every corporation, as such,
has power:
1.
To have succession by itscorporatename.
2.
sueandbesued, tocomplainanddefendincourtsofequityandlaw.
3.
4.
thegreatsealoftheState,orofaclerkofacourtofrecordunderseal
To m a k e a n d u s e a c o m m o n seal andalterthesameatpleasure.
Toholdpersonalestateandallsuchrealestateasmaybenecessary
shouldbeappended,statingthattheofficerwas,atthetimeoftaking
thedeposition, properlyauthorized.
for the legitimate business of the corporation. 5. To render all
Interest of the stockholders transferable.
6.
To
D e s c e n t a n d Distribution.
appoint such
(See Decedents.)
subordinateofficersandagentsasthebusinessofthecorporationshall
DistressforRent. No authorityforit.
require, a n d allow t h e m a suitable compensation therefor. 7. To
makeby-lawsnotinconsistent withanyexistinglaw,forthemanage-
Dower.
Abolished 1907.
(See Decedents.)
Employers Liability Act, inforce. Applies to employershaving
mentofitsaffairs. Everycorporationprevioustothecommencement
ofanybusiness, except its own organization, whenthe sameisnot
formedbylegislativeenactment, mustadoptarticlesofIncorporation
five or more employes. Provides for medical a n d hospital services
a n d medicines, andschedule ofbenefits payable weekly. M a x i m u m
fordeath, $3,500.
Estates. (See Decedents.)
andhavethemfiledintheofficeofthesecretaryofstate;anddomestic
corporationsmustalsofilewiththecountyclerkinthecountywhere
their headquarters are located. Banking corporations a n d building
andloanassociations must also filewith StateBanking Board. Insurance companies, holding companies a n d all companies under control ofstate auditor must also file with that department. T h e ar-
decreeofcourt m a y be r e d e e m e d b y the d e b t o r a t a n y time before
ticles ofincorporation must fixthe highest amount of indebtedness
ofliability towhich the corporation shall, at any one time, be sub-
confirmationofsuchsale. Astay ofexecutionisallowedbygiving
bond with approved suretles as follows: In district court within
Executions (see Judgments, Proceedingsin Ald of Execution
Mortgages) may issue at any timeafterjudgment, ifno staybond
befilled,anduntilfiveyearsthereafter. Landsolduponexecutionor
ject, which must in no case exceed two-thirds of the capital stock.
twentydays, on judgments not exceeding $50, threemonths: $ 5 0 t o
(Exceptions made for insurance companies, deposits in banks, loan
and trust companies.) Must incorporate within one year after
organization, or power ceases. Noticemust be published in some
newspapernearthe principalplace ofbusiness, forfourweeks. Such
notice shall contain: 1. The name of the corporation. 2. The
principal place of transacting its business, 3. General nature of
thebusinesstobe transacted. 4. Theamountofcapitalstockauthor-
$100, six months; exceeding $100, nine months. In justice and
county courts, within ten days, as follows: $10 or under, stay of
ized, a n d the time and conditions on which it is to be paid in.
sixty days; $10 to $50, ninety days: $50 to $100, six months: over
$100, nine months. Land sold underexecution must be appraised
a n d must bring two-thirds of such appraisement.
Exemptions. Aheadofafamilyhasexemptfromlevyand sale
certainpersonal property andhousehold furnitureenumeratedinthe
5.
statute,andinadditiontheretohasexemptahomesteadnotexceeding
In value $2,000, exclusive of the mortgage thereon, consisting of a
The time of commencement and termination of said corporation.
6. Highest amount ofindebtedness or liability to which corporation
isat any time to subject itself. 7. B y w h a t officers the affairs of
the corporation are to be conducted. The notice required must
bepublishedwithinfour months fromthetimeoffiling sucharticles.
Two-thirds of its members may dissolve corporation unless otherwise adopted in articles of incorporation. Copy of by-laws of the
dwellinginwhich theparty residesand appurtenancesand 160acres
oflandonwhichsamemaybesituated,or,attheoptionoftheparty,
twocontiguouslotsinany Incorporatedcityorvillage. Suchexempt
propertyshallbefreefromalljudgmentliensandfromsaleonexecution, except that the homestead may be soldonforeclosure ofme-
corporation, with the
chanics' liens,andofmortgages executedby b o t h h u s b a n d a n d wife.
name
of all the officers appended there
mustbepostedinsomeconspicuousplaceattheplaceofdoingbusi- Ifpartyhasnohomesteadasabovestated,heshallhaveexemptthe
ness, subject to public inspection. Shall give notice annually, in sumof$500inpersonalpropertyinadditiontothearticlesenumerated
some newspaper printed in the county or counties, or in State if
none inthe county, of the amount of all existing debts of the corporation, signedbythe presidentandamajorityofthedirectors. If
corporationshallfalltodo so, stockholders ofcorporation shallbe
Jointlyandseverally llableforall thedebtsofthecorporationafter
isgiven, totheamountoftheunpaldindividualsubscriptionofany
stockholdertocapital stock, andinadditiontheretotheamountof
capital stock owned by such individual.
Allcorporations,whetherincorporatedunderlawsofNebraskaor
anyotherState,mustprocureastateoccupationpermitfrom secretaryofstate, annually, before they maydobusinesshere. Annual
feesforsuch permit as follows based uponcapital stock ofhome
companies,oronthatportionofcapitalstockofforeigncompanies
whichrepresents Nebraska business: Capital of$1,000to $10,000,
feeof$5; $10,000to$20,000,$10; $20,000to$30,000,$15;$30,000to
$40,000, $20; $40,000
$50,000, $25: $50,000 to $60,000, $30;
$60,000to$70,000,
$35: $70,000to$80,000,
$50,000to
$90,000,
$45;$90,000to $100,000,
$50;$100,000 to$40;
$125,000,
$60; $125,000
to$150,000,$70;$150,000to$175,000,$80: $175,000to$200,000,$90;
$200,000to $225,000, $100; $225,000to$250,000,$110;$250,000to
$275,000, $120; $275,000 to $300,000, $130; $300,000 to $325,000,
$140; $325,000to$350,000,$150; $350,000to$400,000,$160; $400,000 to $450,000, $170; $450,000 to $500,000, $180; $500,000 to
$600,000, $200;$600,000 to $700,000, $250; $700,000 to $800,000,
$300;$800,000 to $000,000, $350; $000,000 to $1,000,000, $400;
$1,000,000to $10,000,000, $400,and$75additionalforeachmillion
or fraction thereof over $1,000,000; $10,000,000 to $15,000,000,
$1,200; $15,000,000to$20,000,000,$1,500; $20,000,000to$25,000,000
$2,000; over $25,000,000, $2.500. These fees, taxes and penalties
arefirst lienonallpropertyofthecorporation. Feefordomestic
corporationspayableJuly1st.forforeigncorporations,duringmonth
ofJuly. Fifteen per cent penalty for 30 days delinquency after
3monthswilfuldefault,
ofsecretary of
state must bring actionattorney
to forfeigeneralonrequest
t charter. Foreign
corporation
must appoint resident agent on w h o m process m a y b e served.
Blue Sky Law, prohibits saleofmostcorporatesecurities except
by statute. Mechanics, miners, or other persons. whether heads of
famillesornot,havetheirtools and Instruments exempt, andaprofessional man's library and implements are likewise exempt. All
pensionmoney, andproperty purchasedandimprovedtherewith.not
exceeding$2,000invalue,isexempt. Exemptionlawdoesnotapply
toclaimsforclerks,laborersormechanic'swages,norcananattorney
pleadexemptioninasuit formoneyorothervaluable consideration
exhaustingits assets, and foralldebts contracted beforesald notice
upon permit by State Railway Commission. Detailed sworn
received by him. Only 90 per cent of wages are exempt as against
a d e b t for necessaries of life.
Foreign Corporations (see Corporations, Allens) may become
domesticbyfilingwith thesecretaryofstateatruecopyofcharteror
1
articles of association, together with a certified copy of resolution
adoptedby the board of directors accepting the provisions of the
act ofthelegislature of Nebraska, Chapter 42. Laws of 1889; must
make written report to Secretary of State annually in July in form
prescribedby secretaryofstateandpay fee same as occupationtax
for domestic corporations; must on or before September 15th, of
eachyear,fileastatementwithattorney-generalofState,swornto,
showing capital stock, its market value, how paid, names ofofficers,
directorsandagents, amountpaidindividendsandrateofpercentage
thereof, all stockheldinother corporations and value ofsuchstock.
amountofitsownstockheldbyothercorporationsandvaluethereof,
and amount of trust stock held by other corporations. Does not
apply to insurance companies or common carriers. Must appoint
agentandfilenamewithsecretaryofstateandwithregisterofdeeds
in county of principal place of business. Service may be had on
such agent or on state auditor. Secretary of state charges fee of
$50.00 for keeping record of agent. Penalty $1,000 fine. Agent
or representative doing business here for corporation that has no
resident agent, subject to $25 fine. Does not apply to insurance
companiesandrailroads. Any corporationwhoseproductsare sold
in Nebraska must have a resident agent on w h o m service in legal
actioncanbehad. Salebyjobbersofgoods offoreigncorporations
not so represented is prohibited.
Fraud. (See Statute of Frauds, Limitations, Consignments.)
Conveyancesmadeforthepurposeofdefrauding creditorsarevoid
andintentisdeemedaquestionoffact,notoflaw.
BANKING
1424
Garnishment. (See Attachment.)
A N D
COMMERCIAL
Writ m a y be issued before
Judgment in attachment proceedings. After judgment and after
execution returned unsatisfied, writ will issue by filing affidavit for
same. No bond required after judgment.
HolidaysareJanuary1st. February22d,April22d,May30th,July
4th, first M o n d a y i n September, October 12th, Thanksgiving, and
December 25th. No courtcanbeopen,norcananyjudicialbusiness
betransacted onahollday or Sunday, except, first, togive instructions t o a j u r y thendellberating ontheirverdict;second, toreceive
averdict ordischargeajury;third,toactas magistrateinacriminal
proceeding; fourth, to grant orrefuse a temporary injunction or
restrainingorder. IfanysuchfallonSunday,thenext dayshallbe
aHoliday.
H o m e s t e a d . (See Exemptions.)
HusbandandWife. (See Decedents, Divorce,Evidence,Exemptlons, Married W o m e n , Marriage.)
Infancy. Males under twenty-one and females under eighteen
are infants. County court appoints guardians, butif Infant over
fourteenyears, m a y nominatehis own. Infants' real estatemaybe
soldormortgagedtoobtainfundsfor maintenance bypermissionof
district court.
Insolvents. (See Assignments.)
Interest. Legalrateis7percentandcontract rate10 percent.
Judgmentsdraw same rate asspecifiedintheinstrumentonwhich
judgmentobtained, otherwise7percent. Acontractisnotavoided
byusury, butinactionthereonallpaymentsaredeductedfrom the
principalandplaintiffrecoversonlythebalance,withoutinterestand
paysallcosts
J u d g m e n t s . (See Actions, Appeals, Exemptions, Executions,
Interest.) Thoserecoveredindistrictcourtareliensuponrealestate
ofdebtor from firstdayoftermatwhich rendered, except thoseby
confessionandthoserenderedatthesametermatwhichactioncommenced are liens only fromdate ofrendition. Judgmentsofcounty
andjustice courts become liens fromdate offiling transcript inthe
officeofthe clerk ofthedistrict court. Judgments m a y be made a
lienuponlands inothercounties by filing transcripts intheoffice of
theclerkofthedistrict court insuchcounties. Ajudgment becomes
dormantinfiveyearsandlienuponrealestateislost ifexecutionnot
issuedwithinthat time. Afterdormancy mayberevivedby certain
proceedings. Dormantjudgmentscannotberevivedunless actionto
revivebecommenced withintenyears. Injudgments byconfession
causeofactionmustbestatedinthejudgmentorinawritingfiledasa
pleading. Deficiencyjudgmentsmayberecoveredinmortgageforeclosurecases,ifthedeficiencybesuchthatitmayberecoveredatlaw.
Jurisdiction. (See Actions. Judgments.)
Justices ofthePeace. (SeeCourts, Judgments,Actions.)
License. (See InsuranceAgents.) Commercialtravelersarenot
required to take out a license. There isa provision in the code
requiring peddlers and commission merchants to take outa license.
Doesnotapplyto persons selling their own worksorproductionsor
books, charts, maps or other educational matter, or fresh meats,
fruit, farm products, trees or plants exclusively.
Liens. (See Judgments.) Material m e n a n d laborers and mechanicsareentitledtollensuponthe building or improvementsfor
material furnishedand laborperformed, by filingintheoffice ofthe
register ofdeedsanitemized statementofaccount dulyverifiedby
affidavit of party, showing amount due, nature of the contract
descriptionofproperty, namesoftheparties;andiftheclaimarise
outofawrittencontract,orifanoteor other writtenevidencehas
beentakeninpaymentoftheaccount,coples mustbeattached. An
originalcontractormustfilesuchstatementwithinfourmonthsfrom
thetimeoffurnishingsuch materialorperformingthelabor; asubcontractorwithinsixtydays. Liendatesbacktocommencement of
work or labor and is valid for two years from date of filing. All
mechanics' liensonthesamepremisesareofequal priorityandprorateintheproceedsofsaleofproperty,ifsoldunderforeclosurethereof.
Limitations. Actions brought to recover real propertyor foreclosemortgagesthereonmust becommencedwithintenyearsafter
causeof action accrues. Actions for forcible entry and detention,
libel, slander, assault and battery, malicious prosecution, falseimprisonment,andthosetoenforcepenaltiesorforfeitures,mustbecommencedwithinoneyear. Actionsfortrespasstorealproperty,taking.
detainingorinjuringpersonalproperty,uponcontractsnotinwriting
uponaliabilitycreatedbystatuteotherthanaforfeitureorpenalty.
for injuries to rights not arising out of contract, for relief on the
ground of fraud, and all other actions not specifically limitedby
statute, must be commenced within four years. Actions upon a
specialty, agreement, contractinwriting, promissorynotes, etc., and
foreign judgments, must be commenced within five years. A c t i o n s
upon official bonds ofexecutors, administrators, guardians, sheriffs,
orotherofficers,anduponstatutorybonds, mustbecommencedwithin ten years. Ifparties under disability, cause ofaction does not
commencetorununtilsuchdisabilityremoved. Actionsfordamages
for causing death must be brought within two years.
Limited
Partnership. (See
Partnerships.)
Articles
L A W S - N E V A D A
N o t e s a n d Bills. All notes, bonds, orbillsofexchange,except
bank checks and Instruments payable on demand,are payableat
times fixed therein, without grace; arenotnegotiableunlessdraw
payabletoaperson,bearer,order,orassigns. Ifdateofmaturityla
onSaturdayorSunday,oraholiday,arepayableonthenextbusines
day. Party purchasing negotiable paper beforematurity,withou
notice,takesamefreefromequitiesbetweenoriginalparties. Uniform
negotiableinstrumentlawisinforce.
Partnership (see Limited Partnerships) must adoptands
articlesofpartnershipagreementshowingfirmname,natureandplace
ofbusiness, nameandresidenceofeachmember,andfilesameinthe
officeof the county clerk of the county wherebusiness islocated
Neglector refusal tocomplywith this requiremententallsnenaly
butdoesnotaffectlegalityofbusinesstransacted. Partnershipma
sueandbesuedinthe firmname,anditisnotnecessarytosetfort
Inthepleading, orproveatthetrial, thenamesofthepersons
posingthefirm,butinsucheventplaintiffmustgivesecurityforCOSTA
Pleadings. (SeeActions.)
PowerofAttorney toconveyrealestatemustbeexecutedand
acknowledgedsameasdeedsand mayberecorded.
Practice. RegulatedbycodewhichispatternedafterOhio
Probate. (See Courts, Decedents.) Countycourt hasexclusive
originaljurisdictionofall probatematters.
Promissory Notes. (See Notes.)
Proof of Claims. (See Decedents, Accounts.) Same rulesof
evidencegovernas incivilactions.
Protest. (See Notes.)
Replevin. Party may recover possession ofpersonalproperty
withinfouryearsaftercauseofactionaccruedbyfilingpetitionand
affidavit ofhimself, agent orattorney, givingadescriptionofthe
property,statingthefactsconnectedwiththeownership,andthathe
isentitled to theimmediate possession, etc., oftheproperty.
thenselzedbytheofficeranddulyappraised,andwithintwenty-fo="
hoursthereafterplaintiffmustgivebondindoubletheappraisedvalen.
conditionedthathewilldulyprosecutetheactionandpayallcosta
anddamagesthatmaybeawardedagainsthim,andreturntheproper
tyor its reasonable value to thedefendantincasejudgmentfors
returnbe rendered.
Revenue.
(See Taxes.)
Sales. (See Conditional Sales.) Merchant cannot sellinbuis
without notice to creditors.
Statute of Limitations. (See Limitations.)
Stay. (See Executions, Judgments, Mortgages.)
Suits. (SeeActions.)
Summons. (See Actions, Attachments, Divorce. Service)
Taxes. TaxesonrealpropertyarealienthereonfromOctober1st
ofyearoflevy. Taxesonpersonalpropertyarealienthereonfrom
November1stofyearoflevy. Taxdeedmayissueaftertwoyea
fromdateofsalecertificate. Inheritancetaxrunsfrom1perorat
upward. Forallrealestatetaxesdelinquentoneyearormorte,the
countymaysellthepropertybyactionincourt.
TrustCompanies areauthorizedtoactasexecutors,adminis
trators, receiver,agents,etc.
TrustDeedsareseldomusedandaretreatedasmortgages.
Wills. (See Decedents.) Everypersonoffullageandsout
mindmaydisposeofhispropertybywill,whichmustbesignedba
thetestator,orunderhisexpressdirection,bysomeoneinhispresence
andsubscribedinhispresenceandinthepresenceofeachother,at
hisrequest.bytwoormorecompetentwitnesses. Nuncupativewa
arevalidwhenprovedbytheoathofthreewitnessespresentatthe
makingthereof,andwhenthetestatoratthetimeaskedthepersons
tobearwitnessthatsuchwashiswill,orwordsoflikeeffect. Nowa
swillsdulyprovedandallowedinanystateorforeigncountrymaybe
hallbeeffectualtopasstitletoanypropertyunlessprobated.Foreign
probatedinthisStateinanycountywhereinthetestatorshallhave
realorpersonalproperty,onwhichthewillshalloperate
Witnesses.
(See Evidence.)
Workingmen's Compensation. (See Employers Liability
S Y N O P S I S OF
T H E L A W S OF N E V A D A
thereof
RELATINGTO
mustbeinwriting, acknowledgedbythepartiesandrecordedinthe
officeofthecountyclerkofeverycountywherepartnershipshallhave
aplace of business. The special partner is not liable beyond the
amountcontributed tothepartnershipfunds,buthasnothingtodo
withthemanagementorconductofthebusiness; otherwiseisllable
asgeneral partner. Special partner's nameshallnotappearinthe
ûrm.
Married W o m e n (see Decedents, Evidence, Exemptions. Marrlage)maycontract,bargain, sell,andconveytheirseparateproperty
inthe same manner as m a y a married man. and retain ownership
a n d control of their own property notwithstanding the marriage.
Maysueandbesued,carryontradeorbusinessasifunmarried,and
earningsofanymarriedwomanarehersoleandseparateproperty.
Mortgages. ( S e e Actions, Acknowledgments, Courts, Dower.
Limitations,ChattelMortgages.) Mortgagor, regardlessofstipulation
containedinmortgage(andintheabsenceofspecialagreement,which
mustbeinaseparatewriting),retainslegaltitleandrightofpossession
ofproperty. Incaseofassignmentofmortgageitissaferto record
theassignment. If note secured by mortgage is negotiable assignmentneednotberecorded. R e l e a s e m a y b e b y separateInstrument
oruponthemortgagerecordsinregisterofdeed'soffice,andifmortgagee, after mortgage fullypald, neglects orrefusesforsevendays to
dischargesuchmortgage,heisliabletoapenaltyof$100andallactual
damages suffered by the other party. Mortgages canonly beforeclosedbysuit,andafterforeclosuresuitcommencednoactioncanbe
maintainedatlawuponthedebt,unless authorizedbythecourt and
Ifactionbe first commenced at law, cannot foreclosethe mortgage
untiljudgmentobtained and execution returned thereon unsatisfied.
Afterdecreeofforeclosureofmortgageobtained,defendantmaystay
further proceedings for nine months by filing arequest for stay in
the office of the clerk of the court within twenty days after such
decreeentered. Suchstayisequivalenttoredemptionperiodallowed
Inotherstates,andownermayredeematany time beforeconfirma-
tionofsale. Deedsareheld tobemortgageswhenIntendedonlyas
security,and must beforeclosedsameas mortgages.
NegotiableInstruments. (SeeNotes.)
B A N K I N G A N D C O M M E R C I A L USAGES
PreparedandRevisedbyJEROMEL.VANDERWERKER,Attorneyand
CounseloratLaw,Reno. (SeeCardinAttorneysList
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whichisattachedtoadeedtoberecordedoutofhiscounty,
haveacertificateofaclerkoracourtofrecordofhiscountyasto
hissignatureandofficialcharacter. IfoutsideoftheUnitedStates
theacknowledgmentcanbehadbeforeoutsideofthelerkofacou
havingaseal,oranotarypublicoraminister,commissioner,orcoun
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Theformofacknowledgmentmeindividualshallbe
substantiallyasfollows:
B A N K I N G
S t a t e o f N e v a d a , C o u n t y of...
A.
of....
D.
A N D
C O M M E R C I A L
Onthis...........day
personally
appeared
beforeme, anotarypublic (or judgeorotherofficerasthecasemay
be) in a n d for the C o u n t y of.
S t a t e of.
known (or proved) to me to bethe persondescribed in
a n d w h o executed the foregoing instrument, w h o acknowledged to
methathe (or she) executed thesamefreelyandvoluntarilyandfor
t h e uses a n d purposes therein mentioned.
Inwitness whereof I have hereunto set my h a n d a n d affixedmy
official seal the d a y a n d year in this certificate first above written.
Notary PublicinandfortheCountyof.....
Stateof......................(or other official name oftheofficerwhotakes
theacknowledgment).
F o r m ofacknowledgment of acorporation.
StateofNevada, County of...
f
o
. A. D
Onthis...
personally appeared before me
......day
a notary
public(or other officer or judge asthe case may be) inandfor the
Stateof....
C o u n t y of..
(nameofpartywho
executesand acknowledges instrument) known (or proved) t o m e t o
bethepresident (vice-president or secretary) ofthe corporationthat
executed the foregoing instrumentand u p o n o a t h d i d d e p o s e t h a t h e
istheofficer of saidcorporationas above designated, that h e i s a c
quaintedwiththeseal ofsaidcorporationandthattheseal affixed to
saidinstrumentisthecorporatesealofsaidcorporation;thatthesignatures to said instrument were m a d e by officers of saidcorporation
as designated after said signatures; a n d that the said corporation
executed thesaid instrument freelyand voluntarilyandfor theuses
andpurposestherein mentioned.
Inwitness whereof I have hereunto set my h a n d a n d affixed my
official seal the day and year in this certificate first above written.
NotaryPublicinandfortheCountyof........
.
.
f ( oo r other
e
t official
a
tnameoftheofficer
S
s
e
k wah o t
t h e acknowledgment).
F o r m b y attorney-in-fact:
On this......
..day
State of Nevada, County of.....
personallyappearedbeforemeaNotary
Public(or judge or other officer as thecasemaybe) inandforthe
.
.
f
o
A.
. D
C o u n t y of..
S t a t e o f N e v a d a ( n a m e o f p e r s o n w h o exe-
L A W S -
N E V A D A
1425
Banks. State-areregulatedandcontrolledbya comprehensive
generalbanking law.
C o n v e y a n c e s . Thehusbandhastheentiremanagementandcontrol
ofthecommunityproperty,withthelikeabsolutepowerofdisposition
thereof, exceptashereinafterprovided,asofhisownseparateestate;
provided, thatnodeedofconveyance,ormortgage, o f a h o m e s t e a d a s
n o w d e f i n e d b y l a w , regardless of whethera declaration thereofhas
beenfiledornot,shallbevalidforanypurposewhatever,unlessboth
thehusbandandwifeexecuteandacknowledgethesameasnowprov i d e d b y l a w f o r the conveyance of real estate.
Corporations. T h e l a w s o f t h i s S t a t e a r e substantially the s a m e
a s t h o s e of N e w Jersey. Foreign corporations to transact business
a n d Institute actionsinthis State must file certified copy ofarticles
ofincorporation with thesecretary ofstateand county clerk.
CurtesyisnotrecognizedinthisState.
Courts. Jurisdiction. District courts have original, statutory,
andcommonlawjurisdictioninallcasesatlawandinequity,alsoin
law, w h e n the title or possession of land or mining claims m a y be
Involved, or legality ofany tax, etc., also in actions to foreclose
mechanics' llen; a n d inall casesin which the d e m a n d , exclusiveof
Interest, or the value of the property in controversy exceeds $300,
andinprobateinallcasesrelatingtoestatesofdeceasedpersons,and
personsandestatesofminors,Insanepersons. Justice'sJurisdiction,
$300, exclusive of interest, a n d attorney's fees.
D e e d s . A d e e d ofquit-claimpassesallthe titlethatthegrantor
hasatthedateoftheconveyance. Adeedofgrant,bargainandsale
carriew with it the statutory covenant that at the time that the
grantorexecutedthedeed,hewastheownerofthepropertyconveyed
a n d h a d n o t conveyed it to a n y other person a n d h a d placed no
encumbranceupon it. This form ofdeedconveysany titlethatthe
grantor shall afterwards acquire. A w a r r a n t y deed contains a covenant: " T h e grantor herein will forever warrant a n d defend the
title to the premises herein described against any and all persons
whomsoeverclaimingthe same.
Thelawgoverningandformofacknowledgmentsistitledunder
"Acknowledgments.
cutesandacknowledgesinstrument) known (orproved) t o m e tobe
Depositions. DepositionsmaybetakenwithinthisStatebefore
anyjudge, clerk, justiceofthepeaceoranotary public,uponnotice
totheoppositeparty ofthetimeandplace oftaking. Depositions
maybetakenoutofthe Stateuponcommissionunderthesealofthe
nameas attorney-in-fact, freelyandvoluntarilyandfortheusesand
courtuponproperapplication, or by stipulation ofthe attorneys.
Statutory Residence,
Residenceisdefined asfollows:
t h e p e r s o n w h o s e n a m e issubscribedtothewithin instrumentasthe
..andacknowledged to me t h a t h e subattorney in fact of
scribedthenameofsaid.
theretoas principal, and his o w n
purposes therein mentioned.
Inwitness whereof I havehereunto set m y h a n d and affixed my
official seal the day and year in this certificate first above written.
Notary Public in and for the County of..
Stateof
(orotherofficialnameoftheofficerwhotakesthe
. . .
. .
acknowledgment).
Bythelaws ofthe StateofNevada, any acknowledgmentheretoforeorhereafter taken or certificatethereofmade without this State
eitherinaccordance withthelaws ofthis Stateor inaccordancewith
thelaws ofthe State, Territory, or Country where the acknowledgm e n t istaken, shallbe sufficientinthis State.
T h e certificate of acknowledgment of conveyance:
Acertificateofacknowledgmentofanyconveyanceorotherinstrumentinanywayaffectingthetitletorealestateorpersonalproperty.
ortheproofofexecution thereofasprovidedinthelaws of Nevada,
signed by the officer taking the same, and under the seal of such
office,shallentitlesuchconveyanceorinstrument withthecertificate
or certificates ofacknowledgment to be recorded in the office of the
recorderofanycountyinthisStateprovidedthatanyStateofUnited
Statescontractorpatentforlandmayberecorded withoutanysuch
acknowledgmentorproof.
Actions. (See Suits, Limitations.)
Affidavits. Affidavits taken out ofthis Statetobeused before
anycourtorofficerinthisStatemustbetakenbeforeanotarypublic,
&commissionerappointedbythegovernorofthis State,orajudgeof
acourthavinga seal attestedbythe clerk. Ifinaforeign country
suchaffidavitsshallbetakenbeforeanembassador, minister,orconsul
oftheUnitedStates,orjudgeofacourtinsuchforeigncountryhaving
aseal.
Allens. Personsandcorporations, exceptsubjectsofthe Chinese
Empire, havethe same rights as resident citizens anddomesticcorporations, exceptthatforeigncorporationsmustcomplywithcorporationlawsofthisState.
Appeals. Actionstriedinjusticecourt may be appealed todistrictcourts, where trial ishadde novoand canproceed nofarther.
Actionsinwhichthedistrict courtshave original jurisdictionmaybe
appealedtothesupremecourt.
Arbitration. Provisionismadebylawforthesettlementofdisputesbyarbitration; theawardofthearbitratorstobefiledwiththe
clerkofthedistrict court and docketed the sameasajudgment in
civilaction.
Arrest. Afraudulent orabscondingdebtor, oronewho conceals
hisproperty, orremovesordisposesofit with intent todefraudhis
creditors,maybearrestedonaffidavitofthefactmade;suretyinnot
lessthan$500 being givenbytheplaintiff. (SeeAttachment.)
Assignments and Insolvency.
Except as affected by the
national bankruptcy act of 1898, the following statute respecting
assignment is inforce: Insolvent debtors
may be discharged from
theirdebtsbycomplyingwithprovisionsofinsolventlaws. Anassignmentofinsolventdebtor,notincompliancewithinsolventlaws,is
voidastocreditors.
Attachment. Writofattachmentmaybeissuedwithsummons,
oratanytimeafterward on affidavitandbond. Inanactionupon
acontractfor thedirectpaymentofmoney,made,orbytheterms
thereofpayable,inthis State, whichisnotsecured by mortgage,
lien,orpledgeuponreal or personal property, situatedorbeingin
theState; ifsosecured, when such securityhasbeen renderednugatoryby the act of thedefendant: or inanaction uponacontract
againstadefendant not residing in this State. Inanaction by a
residentoftheStatefortherecoveryofthevalueofproperty,where
suchpropertyhasbeenconvertedbyadefendantwithouttheconsentoftheowner. Wherethedefendanthasabsconded,orisabout
"The legal residenceofa person with reference tohisorher right
ofsuffrage, eligibility tooffice, rightofnaturalization, right tomaintainordefendanysuitatlaworinequity,oranyotherrightdependent
on residence, is that place where he or she shall have been actually.
physicallyand corporallypresent withinthe stateofcounty, as the
c a s e m a y be, during allofthe period for which residence isclaimed
byhimorher; provided, however, should anypersonabsenthimself
fromthejurisdictionofhisresidencewith theintentioningoodfaith
toreturnwithout delay a n d continuehis residence, thetime ofsuch
absence shall not be considered in determining the fact of such
residence."
Dowerisnotrecognizedinthis State.
Executions. StayofExecution;Judgments. ThelawsofNevada
o n t h e s e pointsare similar to those of California (see ante), except
thatwhenredemptionismadeofrealestate,18percentmustbepald
Inadditiontopurchasemoney.
Exemption. Homestead, $5,000; theearnings ofthe debtor, if
earnedthirtydayspreceeding, ifit ismadetoappear necessary for
thesupportofthedebtor, exemptwheredebtisfornecessaries, orhis
family: personal and mining property, tools, implements, etc.,
exemptsameas in California[whichseel.
G a r n i s h m e n t . (SeeAttachment.)
Holidays. Sunday, N e w Year's D a y , Lincoln'sBirthday, Wash-
ington'sBirthday, MemorialDay, Fourth ofJuly, Labor Day, October12thand31st (Nevada admissionday), Thanksgiving, December
25th, andalldaysonwhichageneralelectionisheld, arenon-judicial
days and aretermedlegalholidays and generally observedas such.
A l s o A r b o r d a y f i x e d b y proclamation ofgovernorone month before
fixing such date, a n d is only a holiday for public schools. Bills
of exchange, checks, promissory notes, and other negotiable instrumentsfallingdueuponanyholiday are payablethedayprevious.
HusbandandWife.
(SeeMarriedWomen.)
Interest. Thelegal rateis7percentperannum,butpartiesmay
contractinwritingforthepaymentofanyotherratenot inexcess of
12percentper annum. Afterajudgment onsuchacontract, only
theoriginal claim shalldraw interest, andthe rateofinterestmust
bementionedinthejudgment.
Limitations of Suits. O p e n o r s t o r e account a n d contract not
inwriting, four years; upon contract or instrument of writing, six
years; recoveryofminingclaims, two years;real actions-theperson
prosecuting ordefending the same mustshowthathewas seizedor
possessedofthepremiseswithinfiveyearsbeforethecommencement
ordefense of the action, judgment, ordecree of the district court-
sixyears; of thejustices court-five years. Revivor: Acknowledgmentornewpromiseinwriting. Judgmentsbecomealienuponreal
property for two years. Foreign judgments, contracts, obligations
orliabilities forthe paymentofmoney ordamages executed orincurred outofthisState, two years.
M a r r i e d W o m e n . Allpropertyofthewife, owned byherbefore
marriage, and that acquired afterward by gift, bequest, devise or
descent, her separate property.
In Nevada, under the statute of
1873,
thewife hasabsolute poweroverherseparateproperty,
m a y d i s p o s e of the s a m e without the consentofherhusband. and
All
otherpropertyacquiredduringcoverturebyhusbandorwife,common
property,butcontrolledbyhusband. Uponadissolutionofthecom-
munitybythedeathofthehusband,thehomesteadsetapartbythe
h u s b a n d a n d wife, or either of them, goes to the wife a n d minor
children,andiftherearenominorchildren,tothewidow. Thehus-
bandmaydisposeofone-halfofthecommonpropertybywill,exclusiveofthehomestead. Theotherhalfofthecommunityproperty
toabscond, withintenttodefraudhis creditors. Where thedefendantconcealshimselfsothatserviceofsummonscannotbemadeupon
goestothewife,subjecttoadministrationanddebtsofthehusband.
Mortgages mustberecorded. No mortgageofpersonalproperty
isvalidunless possession is delivered toand retainedby the mortgagee,orunlessthemortgageisverifiedbytheoathofthemortgagor
and mortgageeandis recordedin thecounty where the mortgagor
andmortgageereside. Recordingisequivalenttopossession,except
that growingcrops and otherpersonal property may be mortgaged
withthe intent to defraud his creditors. Where adefendanthas
Instrument without such possession. Mortgages of real estate can
only be foreclosed by action for foreclosure.
Notes and Bills ofExchange. Theuniformnegotiable Instru-
him. Whereadefendantisaboutto removehis property, orany
partthereof, beyond thejurisdictionofthecourtwiththeintentto
defraudhis creditors. Whereadefendantisabout to converthis
property,oranypartthereof,intomoneywithintenttoplaceitbeyond
thereachofhiscreditors. Whereadefendanthasassigned,removed,
disposedof,orisabouttodisposeofhisproperty,oranypartthereof,
fraudulentlyorcriminallycontractedadebtorincurredtheobligation for which
been commenced.
suit has
. t nThe
e m hclerkofthe
c a t t t a Garnishee
f o dcourtshallissuethe
ianida
process
hebyam
writofattachment upon receiving and filing an affidavit by or on
hehalfoftheplaintiff,showingthenatureoftheplaintiff'sclaim,that
sameisjust, theamountwhich theaffiantbelieves theplaintiff is
entitledtorecover,andtheexistenceofanyoneofthegroundsfor
anattachmentabove enumerated, withanundertakingnotlessthan
$500,andanamountequaltoone-fourthofdemand,butnotexceeding
$5,000.
91
by the execution, acknowledgment, and recording of amortgage
m e n t l a w h a s b e e n a d o p t e d i n t h i s State.
Probate. Allclaims againstestates ofdeceasedpersonsmustbe
filedwithinthreemonthsafter the firstpublicationofthenoticeof
appointmentoftheexecutororadministrator.
Estatesnotexceeding
$2,000 in value, in the discretion of the judge, may be summarily
administered,andincasesofsummaryadministrationallregularproceedings and notices aredispensed with, except the notice ofthe
BANKING A N D COMMERCIAL L A W S - N E W
1426
appointmentoftheexecutororadministrator.
Creditorsofsuchan
estatemust file their claims within forty days.
Allestatesofhusbandor father of$500 orlessaredistributedto
widoworchildrenunderagewithoutprobate,notsubjecttoanydebts.
Suits. Practiceisunderacode,andthereisbutoneformofaction,
knownasacivilaction,andcommencedbyfilingcomplaintwiththe
clerkofthecourtand the issuanceofasummons. Serviceonnon-
residentsmaybehadbypublication. Personalserviceofacopyof
summonsandcomplaintisequivolentto thepublicationofthesumm o n s .
Taxesareallenuponthepropertyassessedandtherealestateof
the owner thereof from the first Monday in March in each year.
Sults fordelinquent taxes m a y be commenced bydirection of the
countycommissioners, andthereisredemptionofrealestatesoldat
taxsaleinthesamemannerasrealtysoldunderordinary execution.
HAMPSHIRE
Bank. Bankscanbecharteredonlybyaspecialactofthelegis
lature. Building andloanassociationsmaybeorganizedasvolun
taryassociations. Onceeveryyearathoroughexaminationshallbe
made into the condition andmanagement ofeverybank,buliding
andloanassociation, andtrustcompanyintheStatebyoneofthe
three bank commissioners. (Bill now pendingreducingnumberof
bank commissioners toone.)
The commissionersshallonorbefore
the1stdayofOctober, annually, filetheirreportwiththesecretary
ofstate. Theyshallgiveintheirreportadetalledstatementofall
theitemsofexpenseofeachinstitution,withthenamesofthetreas
urerandclerks,thesalaryofeach,withthekindandamountofstocks
andbondsheldbyeach,withtheparvaluethereof,andthecostand
themarketvalueat thedate ofexamination. Thecashiersofevery
statebank,andeveryassociationorpartnershipformedforthepur
poseoftransacting suchbusinessas isusuallytransactedbybanka
shall, onthefirstMondayofMarch, June, September,andDecember
Ineachyear,makeastatementofitsconditiononsaldday,specify
inginseparatecolumnsthecapitalstockactuallypaidin;debisdue
thebanksecuredbypledgeofitsstock;valueofrealestatebelang
Ingtothebank;amountofdebtsduefromdirectors;amountofspecie
In the vaults; amount ofbills ofotherbanks on hand;amountof
deposits in the bank; amount on deposit in other banks forthe
redemptionof itsbills; andtheamountofbillsofthebanktheni
circulation; which statement shall be signed and sworntobythe
cashier, andreturnedtothesecretaryofstate. Thetrusteesofsav
ingsbanksshall make athoroughexaminationoftheaffairsoftheir
respective banks once in every sixmonths, and a reportofsuch
examination,signedbyacommitteeofthetrustees,shallbereturned
tothebankcommissioners, andacopyofthereportpublishedin
newspaper published in the place where such bank isestablished.
or. Iftherebe no newspaper insuchplace, theninanewspaperat
thenearestplace.
Bills ofExchange. (SeeNotes,andBillsofExchange.)
ChattelMortgages. (SeeMortgages.)
Collateral. There have been no statutory enactments onthis
subject. Pledgeeofstock isnotliableasastockholder,butthegeneral ownerts.
Conveyances. Everydeed,andleaseformorethansevenyears.
shallbesigned, sealed, attestedby two or morewitnesses,acknow
edgedbeforea justice ofthepeace,notarypublic, orcommissioner.
andrecordedin the registryofthecountywhereintherealestateis
situated. Every power ofattorney to conveyrealestatemustbe
executedwith thesameformalities. Conditional conveyancesmust
state thesumto besecured, orthe thingtobeperformed. Admin
Istrators,guardians,andtrusteescanconveyonlybyvirtueofalleen
fromtheprobatecourt. Sheriff'sdeedsshallgivefullparticularsas
S Y N O P S I S OF
totheaction,andshallcovenantthathehasobservedalltherequirementsoflaw.
T H E L A W S O F N E W
H A M P S H I R E
Corporations. Corporationscanbecharteredby thelegislature
Voluntarycorporationscanbeformedforanypurposeexceptbank
Ing,lifeinsurance,railroadingortrading-stampbusiness. Fiveper
R E L A T I N G TO
BANKING A N D COMMERCIAL USAGES
Revisedby J O H N R. SPRING, Attorney at L a w , Nashua.
(SeeCardinAttorneys' List.)
Acknowledgments of deeds or other conveyancesofrealestate
mustbemadebeforeajustice, notarypublloorcommissioner, or in
foreigncountriesbeforeaministerorconsuloftheUnitedStates. The
signatureofthegrantormustbeattestedbytwowitnesses.
Actions. The c o m m o n law prevails as to procedure. Non-restdents caninstitute suit, a resident becoming responsible forcosts
by indorsing the writ. Transitory action may be broughtin the
county where one of the parties resides. If botharenon-residents
theactionmaybebroughtinanycounty.
Administation of Estates. Administration shall be granted in
thefollowing order ofprecedence: To the executor named; to the
widow, o r a n y ofthe next ofkin, or to such person as they shall
sons may associate themselves together under written articlesof
agreement, which articles shall set forth the corporatename, t
object,placeofbusiness,andamountofcapital,whichmaybeany
wherefrom$1,000 to$5,000,000, withtheparvalueofthesharesat
notlessthan$25ormorethan$500. Thisagreementshallberecorded
Intheofficeofthesecretaryofstate,andintheofficeoftheclerkofthe
townwherethebusinessistobecarriedon, Everycorporationwhich
shallnotcarryonitsbusinessintheState, obtainingacharterhere,
shallpayacharterfeeasfollows: $10onacapitaloflessthan$25,000,
$25onacapital between $25,000 and $100,000; $50 onacapital
between$100,000 and $500,000;$100onacapitalbetween$500,000
and $1,000,000; and $200 whereIt exceeds $1,000,000. Thesaid
charterfee shall be paidwhen the articles arerecorded. Theclerk
ofevery corporation shallbeandcontinuea residentoftheState
Andatleast one of thedirectors shallbe anactual residentofthe
State, ifthe corporation asany stockholdersresidentintheState
N
ocorporationshallsellfordisposeofanyofitsstockatapriceless
thantheparthereof. Anoteisnotpaymenttherefor. Cumulative
voting isnot permitted. Stockholders in all corporations, except
banksandrailroads, shallbeliableforallthedebtsofthe company
untilthecapitalisfullypaid,andacertificateundertheoathofthe
treasurerandamajority of thedirectors shallhavebeenrecorded
withthe town clerk. Every corporation, except banks, rafirmada,
and Insurance companies, shallannually,in May,
return&swart
ofthedirectors,of
report, signed by the treasurer and a majority
Its assets, llabilities, and any assessments, which report, shallbe
nominate;tooneofthedeviseesortoacreditor;tosuchotherperson
as thejudgeshallthink fit. Anon-resident shallnotbe appointed
recordedintheofficeofthesecretaryofstate. Afalluretomakesuch
returnrenderstheofficerspersonallyliableforallthecompanydebita.
presentedwithinoneyearafterhisappointment, andnoactioncan
bebroughtafter two years. Actionsarenot maintainable against
Thesupremecourtdecidesquestionsoflawuponbillsofexception.
transferredfromthesuperiorcourt,anditholdsitssessionsevery
unless urgent necessity demands. An ample bond with resident
suretles shallbefiled. No suit shall be brought against theadministratorwithin the firstyearofhis administration. Claims shall be
anadministrator ofanestate, afteradecreeofInsolvency.
Estates
maybeadministeredintheinsolventcourse,andthenacommissioner
shallbe appointed to examine andallowclaims. Preferredclaims,
tobesettledin fullare: Expensesofadministration,widow'sallowance,chargesofburial,andtaxes.
Claimsforthelastsicknessshall
bepaidinfullifthereremains anythingafterpaying the preferred
claims. (SeeArbitration.)
Affidavits.
Affidavits are not admissible in evidence, being ex
parte,butmotionsarehearduponaffidavitspresentedtothecourt.
Maybemadebeforeanofficerauthorizedto administeroaths. (See
Attachments.)
Aliens. Theyarenotentitledtovote. Anallenmaypurchase.
holdandconvey realestate,anditwilldescendinthesamemanner
asifhewereanative born citizen. W h e n the wife ofanalienhas
residedin the State six months, separate from her husband, she
acquiresallthe rightsofthewifeofanativeborncitizen.
Arrest.
Nofemalecan bearrestedinanyactionfoundedupona
contractoruponaconditional sale ofclothing: nor cana voteron
electionday, oradefendantinarealaction.
The sheriffis exempt
fromarrest. ( S e e A t t a c h m e n t s . )
Assignmentsand Insolvency. Assignmentsforbenefitofcreditors to be filed inthe probate courtofthe countyinwhich debtor
resides. Theprovisions ofthelaw uponthissubjectare suspended
bytheUnitedStatesbankrupt law.
Attachments ofall realandpersonal property m a y b e m a d e on
theoriginalwrit,andconstituteavalidlienonthepropertyforthirty
daysafterjudgment,withinwhichperiodtheexecutionmustbelevied
topreserve and perfect the lien. All attachments take precedence
inorderofpriority, except in case ofliens ofbuilders, contractors,
etc,whenthey take precedenceinthe order or priority of the lien.
Trusteeprocess (analogous to garnishmentin other states) m a y b e
usedto reach money or credits of the defendantin the hands of
another. Sive as against claims for necessaries the wages of the
defendantup to$20areexemptfromsuchprocess. (Billnowpending
fu L e s T e a r e to modify trustee exemptions.)
In actions on
con-
tracts where debt exceeds $13./53, defendant m a y be arrested on
affidavitofplaintiff that be (defendant) has concealedhis property
or isaboutto leavethe Stateto avoidpayment ofhis debts. (See
Garnishment.)
Courts. Thesuperiorcourthasoriginaljurisdictionoverallcauses
month, except JulyandAugust. Probate courtshavejurisdicta
over estates of deceased persons, Insolvent estates, minors, insane
persons,adoptions, changeofnames, trustees,andpartitionofrea
estate. Districtpolicecourtsandjusticesofthepeacehaveconcurreal
jurisdictionwiththesuperiorcourtupto$100whenthetitleto
estateisnotinvolved,andcanrenderjudgmentuponconfessionupto
$200. Thetermsofthesuperiorcourtshallbeheldineachyear
thetimesandplacesfollowing: ForthecountyofRockingham.f
Exeter, onthethird TuesdayofJanuaryandthethirdTuesdayof
April;andatPortsmouthonthethirdTuesdayofOctober. Forthe
countyofStrafford,at Dover, on thesecondTuesdayofFebruary
andthethirdTuesdayofSeptember. ForthecountyofBelknap.Al
Laconia, onthe first Tuesdayof MarchandthefirstTuesdayof
November. ForthecountyofCarroll,atOssipee,onthethirdfure
dayofMay,andthesecondTuesdayofNovember. Forthecousty
ofMerrimack,atConcord,onthefirstTuesdayofAprilandtheLost
TuesdayofOctober. ForthecountyofHillsborough,atMantener
onthefirstTuesdayofJanuary,andthefirstTuesdayofMay.And
at Nashuathe third Tuesdayof September. For thecountyof
Cheshire,atKeene,onthefirstTuesdayofAprilandthefirstTwe
dayofOctober. Forthecountyof Sullivan,atNewport,onthese
ondTuesdayofMayandthesecondTuesdayofNovember. Forthe
countyofCoos,atLancaster,onthethirdTuesdayofApril:atG
brook,onthefirstTuesdayofSeptember,andatBerlin,onthefes
TuesdayofDecember. ForthecountyofGrafton,atPlymouth,
TuesdayofNoverwher
thesecondTuesdayofMayandthesecond
atHaverhill,onthethirdTuesdayofMarchandthethirdTuesdayef
September:atLebanon,onthethirdTuesdayofAprilandthethird
TuesdayofOctober.
DaysofGrace.
Noneexceptonsightdrafts.
Depositions. Thepartyproposingtotakedepositionsshallthe
theoppositepartyafourdays'notice,
otf'wyhoifcrhet
f:oloDweipn
ziitna
at
ch
oe
rd
os
" T O A B.C.,
etc.,or
be t a k e n at the office of
andStateof
intheCountyof
In
onthe... dayof
10
18
noon, inwhichaction
Court M
at.... o'clockinthe
dayof
..isdeft., to be heard and triedatthe
and
.onthe.
b e h o l d e n at
IntheCountyof
dayof
this
19...
Datedat
JusticeofthePeace."
BANKING AND COMMERCIAL L A W S - N E W
One extra day'snotice to be given, up to twenty days, for each
twenty additional miles. They are taken before a justice of the
peaceoracommissioner. Theycanonlybetakenbywrittenquestions
andanswers proposed by counseland administered by the magistrate. Objectionsare minuted on thedeposition by themagistrate,
buthedoesnotpassuponthevalidity of suchobjections. Depositionsshallbesignedbythedeponent,andheshallbesworntotestify
tothetruth,thewholetruth,andnothingbutthetruth. T h e y m u s t
beenclosedinanenvelopeandsealedupbythe magistrate, withthe
followingendorsement:
"TotheSupremeCourt.
Enclosedisthedepositionof
of
afterjudgment.
Sixpercentannualinterestallowed onjudgments.
Inactions on mortgages the judgmentis conditional, that if the
m o r t g a g o r p a y the a m o u n t o f t h e j u d g m e n t w i t h i n t w o months, the
t h e t e r m o f t h e courtwheretheactionhasbeendisposedof.
Liens. Besides the commonlaw lienthe legislaturehasprovided
Sealedupbyme ....
JusticeofthePeace."
Theyshouldthenbemalledtotheclerkofthecourtwheretheyare
tobeused. No deposition canbe usedinajury trial unless taken
beforethe Tuesday nextpreceding the Tuesday on which theterm
commenced.
Acopyofthenoticewiththeaffidavitofservicemustbeannexed
to the deposition.
deposition:
untilsaleofpropertytaxed,and12percentthereafteruntiltimeof
redemption. Upon current accounts interest commences fromdate
ofdemand forpayment, unless controlled by the custom oftrade.
whichisaquestionoffacttobedeterminedbyatrial thereof.
Judgmentsarenotallenuponreal estate, exceptwhen attachmentismadeontheoriginalprocess,whenallenexistsforthirtydays
judgmentshallbevold. Judgmentsarerendered onthe lastdayof
tobeusedintheaction
v s .
"Stateof..
1427
HAMPSHIRE
T h e following is a form for the caption of the
88.
Countyof
Personallyappearedbeforeme,aJusticeofthePeacewithinandfor
o n t h e
dayof
saidCounty, the within n a m e d
o'clock in the
noon, at the office
19.., at
of
..., in said County.
Street,In
andmadeoaththattheannexeddeposition byhimsubscribedcontainsthetruth, thewhole truth, andnothingbutthetruth relative
t o t h e c a u s e f o r w h i c h i t w a s t a k e n . Saiddepositionistakenatthe
of
to be used
.request of
...Court, in an action now pending (or to be
inthe
entered) insald Court, wherein of, etc.,ispiff,and of, etc.,isdeft.
T h e taking of sald deposition was begun at
o'clock in the
....noon of said day, and was continued until finished. The
sald
w a s (not) p r e s e n t a n d d i d (not) object.
this .... d a y o f
Datedatsald
19
JusticeofthePeace."
D e s c e n t o f P r o p e r t y . Therealestatesubject todowerorcurtesy
andhomesteadshalldescendinequal sharesasfollows: 1. To the
childrenandto thelegalrepresentatives o f s u c h o f t h e m a s a r e d e a d .
2. Ifthere be no issue, to the fatherand motherinequal shares, if
b o t h a r e living, a n d to thefather or mother, i f o n e o f t h e m i s d e a d .
3. Ifthere be no issue or father or mother,in equal shares to the
brothersand sistersortheirrepresentatives. 4. T o t h e n e x t o f k i n
In equal shares. I f a p e r s o n d i e s underage,his estate, derivedby
descent ordevise f r o m his father or mother, shall descend to his
brothersand sisters, ortheir representatives,ifany, totheexclusion
of the other parent. No representation allowed beyond thedegree
foralienuponall the effects andbaggage ofaboarder; alsolienfor
the pasture of horses, cattle, sheep, or other domestic animals. A
p e r s o n w h o mayhaveperformedlabororfurnishedmaterial toward
building, repairing, fitting or furnishing a vessel shall have a lien
thereonforthe spaceoffourdaysafter completion. A p e r s o n w h o
m a y h a v e furnished a m o n u m e n t ortablet, or curbing, shallhavea
lienthereon. Andapersonhavingalienonpersonalproperty,when
n o t i m e i s limitedforthepaymentofthedebt, m a y s e l l t h e s a m e a t
auction, fourteendays' notice ofthesalebeing required,ifthe value
ofthepropertyexceeds$100,andaswornreturnofsaidsaleshallbe
recordedInthe officeofthe town clerk.
Limitations ofSuits. Accountsandsimplepromissorynotessix
yearsaftermaturity;judgments,sealedinstruments,andnotessecured
bymortgage,twentyyears. Timeofdebtor'sabsencefromtheState
Isexcluded. Verbalacknowledgmentandpromisetopayissufficient
to revive the debt. Action against administrators limited to two
years.
Married Womenretainallpropertyownedby thembeforemarrlage, oracquiredafterwardinanywayexceptthrough propertyof
thehusband,totheirsoleandseparateuse,asifunmarried. Alltheir
contractsin relationto such propertyare valldandbinding, andall
theirothercontractsarebinding,exceptthoseassuretlesorguarantors
fortheirhusbands,orforandinbehalfoftheirhusbands. Uponthe
deathofwife, thehusbandisentitled tosubstantiallythesameshare
ofherestateasshewouldbeofhisestateincaseofhisdeath. (See
Descent of Property.) T h e y are llable for debts contracted while
single, andtheirpropertymay be attachedtopaythem. Theyare
alsollablefortheirtortsbeforemarriage inrelationto theirseparate
property. Thehusbandisnotliableforthewife'sante-nuptialdebts,
andcannot convey his improved real estatesoas to barhis wife's
rightofdowerandhomesteadwithoutherconsent.
Marriedwomen
oftheageoftwenty-oneyearsmaydisposeoftheirpropertybywill,
but not to affect husband's rights, nor can they convey so as to
deprivethehusbandofhisright.
Mortgages. Real Estate. A conditional conveyance shall be
Ineffectualunlessthesumtobepald,orthethingtobedone,isstated
ofbrothers' a n d sisters' grandchildren. Thepersonal estate shallbe
distributed as follows: 1. To the widow, her share according to
intheconveyance. Allmortgagesshallbe signedinthe presenceof
twowitnesses and acknowledgedbefore ajustice of the peace or a
notary public. Mortgages may be foreclosed. 1. By entry under
processoflawinto the premisesand continuedactual possession for
estate, by releasing her dower a n d homestead, a n d by walvingany
provisioninthe willinherfavor. I n c a s e t h e real estate (provided
no issue survives) does not exceed $1,500in value, the survivor,
husbandorwife, takesthewholethereof. Thesameprovisionexists
inpossessiontaking formal possessionunderthesecondmethod. 4.
Byasaleundertheprovisionsofapowerofsalemortgage. Mortgages
ofpersonal property, to be effectual, the mortgagor and mortgagee
law. 2. To the same persons who would take as in the case of
realty. Thewidowis entitled,Inaddition to herdowerandhomestead,toone-thirdorone-halfofthepersonalty,asshedoesordoes
notleaveissuesurviving, andsheholdsthe sameinterestinthe real
astodistributionofthepersonalty. Astoanybalanceabove$1,500,
thedistributionismadeaccordingtotheotherprovisionsofthelaw,
asabovesetforth.
A surviving h u s b a n d h a s t h e samerightsinhis
wife'sestatethat a wife would have inherhusband'sestate. (See
Dower.)
Dower.
A w i d o w i s e n t i t l e d t o d o w e r i n t h e realestateofwhich
herhusband died seized, excepting inland not under cultivation or
Inawoodlotnotused in connection withafarm. Thedowermay
beassigned by metes and bounds, and the widow hasanundivided
netthirdpartofthe rentsand profits untildowerisassigned. She
m a y b e e n d o w e d with s o m u c h oftherealestateofherlatehusband
aswillproduceayearlyincomeequaltoone-thirdofthetotalincome.
Evidence.
Persons are not excluded f r o m testifying becauseof
Interest, except where the partyis an executor, administrator or
guardianofinsane,andthesubjectofthetestimonyoccurredduring
thelifeofthe deceased, or prior to the ward's Insanity, unless the
executor, administrator, or guardian of the insane person elects to
testify;or,whenitisclearlyshown tothecourtthatInjusticemaybe
donebytheexclusionofthetestimonyofsuchperson. Husbandand
wifearecompetentwitnesses for or againsteach other, exceptasto
matters, whichin the opinion of thecourt, mightlead to the violationofmarital confidence. Incriminalproceedings,respondentmay
testifyinhisownbehalf,ifheelects, butnototherwise. Conviction
ofaninfamouscrimedoesnotbarthepartyfromgivingevidencebut
bearsuponhiscredibility. Therulesofcommonlawgoverngenerally
theadmissibilityofevidence.
Executionsmaybe takentwenty-fourhoursafterjudgment, and
arereturnablebeforejustice'sandpolicecourtsinsixtydays;before
superior court, at the next trial term of court. Writofpossession
Issuedsixtydays after judgment. A r e v i e w m a y b e grantedby the
courtwheninjustice appears to have been done through accident,
one year. 2. By peaceable entry in the presence of two witnesses
andcontinuedactualpossessionforoneyear. 3. B y t h e mortgagee
m u s t take a n d subscribe the following oath: " W e severally swear
thattheforegoing mortgageis m a d e f o r t h e p u r p o s e ofsecuringthe
debtspecifiedintheconditionthereofandfornootherpurposewhatever, a n d that saiddebtwasnotcreatedforthe purposeofenabling
the mortgagor to execute the sald mortgage, b u t i s a just debt,
h o n e s t l y d u e a n d o w i n g f r o m t h e m o r t g a g o r t o the mortgagee." T h e
mortgagemustberecordedintheofficeoftheclerkofthetownwhere
themortgagorresides, a n d i n c a s e of the non-residenceofthe mortgagor,itmustberecorded intheofficeoftheclerkofthetownwhere
thepropertyissituated.
N o t e s a n d B i l l s of E x c h a n g e . An instrument to be negotiable
mustconformtothefollowing requirements: 1. I t m u s t b e i n w r i t i n g a n d s i g n e d b y t h e m a k e r o r drawer. 2. I t m u s t c o n t a i n a n u n -
conditional promise or order to pay a s u m certain in money. 3.
Mustbe payable ondemand, or at a fixed or determinable future
time. 4. M u s t b e payable to order or to bearer; and 5, where the
Instrumentisaddressed t o a d r a w e e , he m u s t b e n a m e d orotherwise
Indicated therein with reasonable certainty. Its negotiability isnot
affectedbyaprovisionwhichauthorizesthesaleofcollateralsecurities
Incasetheinstrumentbenotpaidatmaturity, or authorizesaconfession o f j u d g m e n t i f the instrument be not paid at maturity; or
waives thebenefitofanylaw intendedforthe advantageortheprotectionoftheobligor; orgives theholderanelectiontorequiresome-
thingtobedone inlieu ofpayment of money. To chargeindorser,
notice of non-payment must at once be given to him. Time of
Maturity: Everynegotiableinstrumentispayableatthetime fixed
thereinwithoutgrace,exceptsightdrafts. Whenthedayofmaturity
fallsuponSunday,oraholiday,theinstrumentispayableonthenext
succeedingbusinessday. Instrumentsfallingdueorbecomingpayable
onSaturdayaretobepresentedforpaymentonthenextsucceeding
businessday,exceptthatinstrumentspayable o n d e m a n d m a y , a t t h e
optionoftheholder,bepresentedforpaymentbefore12o'clock,noon.
mistake, or misfortune. Real property taken under execution may
onSaturday,whenthatentiredayisnotaholiday. (SeeHolldays.)
Exemptions. Homesteadtothevalueof$500;necessaryapparel
andbeddingandhousehold furnituretothevalueof$100;biblesand
schoolbooksin use in the family, library tothevalueof$200; one
cow,onehog,andonepig,andporkofsamewhenslaughtered;tools
ofoccupation to the value of $100; six sheep and theirfleeces, one
cookingstoveandits furniture, provisionsandfuelto thevalueof
$50, andonesewing machine; one yoke ofoxen, orahorse, when
numeroussessionsinvariousplaces. Proceedingsarebegunbypetitionandcitationissued. Thecitationsareservedtwelvedaysbefore
b e r e d e e m e d within one year.
requiredforactual use; domestic fowls notexceeding $50; one pew,
onelot ina cemetery, and hay not exceeding fourtons.
Fraud. Aside from criminal frauds, the superior court, in the
exerciseofitsequityfunctions,hasjurisdictionoverfrauds.
Garnishment. K n o w n to our lawas trusteeing. Anypersonal
actionexcepttrespass,defamationofcharacter,andmaliciousprosecution,maybebegunbytrusteeprocess. Trusteesarenotchargeableupondefault. Wages earnedafter the serviceofthewritare
notheld by the process. Twenty dollars inwages are exemptas
against all claims except for necessaries. (Subject to passage of
pendinglegislation-1913.)
Holidays. (Seetable,page 13.)
Husband and Wife. They may makeante-nuptial agreements
Arrest.Allens, DescentofProperty, Dower,Divorce,MarriedWomen,
andWills.)
Interest. Attherateof6percentperannum. Ifanyperson,
uponanycontract, receivesatahigherratethan6percent,heforfeitsthreetimes theexcess paid, tothe personaggrievedandsuing
therefor;butnocontractis invalidated by reason ofany stipulation
forusuriousinterest;themoneyactuallyadvancedmayberecovered
withlegalinterest. Interestuponalljudgmentsisattherateof6
percentperannum. Interest uponunpaid taxes isat the rateof
whichcanbeinlieuofdower,homestead,anddistributiveshare. (See
10percentafterthefirstdayofDecemberfollowingtheirassessment.
P o w e r o f A t t o r n e y . (See Conveyances.)
P r o b a t e L a w . T h e probate courtis a county court, a n d holds
the returnday. Thecourt mayproceedwithoutnoticeinthefollow-
Ingcases:
Intheprobateofwillsinthecommonform;intheappoint-
m e n t of an executor nominated in a will; in the appointment of
appraisersofanestate;inlicensing thesaleofrealestateunder $200
invalue,orwheretheheirsconsentinwriting;inappointingguardians
and commissioners:in granting allowances;in assigning dowerand
homestead;inmakingordersforsuitsuponbonds;inchangingnames:
inappointing trustees nominated in a will. (SeeAdministration of
Estates, Courts, Descent ofProperty, Dower, Married W o m e n , a n d
Wills.)
Protest. Notariespublicaretheproperprotestingofficers. Notice
o f t h e n o n - p a y m e n t orthenon-acceptanceupon residents by mallis
sufficient. (SeeNotes andBills.)
R e p l e v i n m a y b e b r o u g h t to recover goods or chattels inspecie.
T h e question of right ofpossessionbeing in issue, the plaintiff shall
g i v e b o n d to the sheriff i n a s u m not less than double the value of
thepropertytobereplevied, t o p a y s u c h d a m a g e s a s m a y b e a w a r d e d
against him. I f t h e defendant shall prevailhe shallhave judgment
forthereturn ofthegoods, a n d other damages, orfor theirvalue.
Taxes become a lien upon the realty simultaneously with their
assessment(April1stofeachyear). O n e y e a r f r o m t h e d a y o f s a l e is
allowedin which to redeem land sold for taxes, costs of sale and
interestattherateof12percentperannum beingadded.
[
Asucces-
sionor inheritance tax of5percentuponInheritances by collateral
heirs, is collected through the probate courts.
Wills. Every person, including married women, of the age of
twenty-oneyears,ofsanemind,maydisposeoftheirpropertybywill.
Nowilliseffectualtopasspropertyunlessitisinwriting,signedby
thetestatororbysomepersoninhispresenceandbyhisexpress
:
B A N K I N G A N D C O M M E R C I A L L A W S - N E W JERSEY
1428
ares
fraudulentlyconceals. 3. Whenhehasassigned,removed,ordisasthe
posedof,orisabouttoassign,remove,ordisposeof,anyofhisproperty
direction,andattestedinhispresencebythreeormorecrediblewit- with
plied
intent
to
defraud
c
r
e
d
i
t
o
r
s
.
4.
W
h
e
n
h
e
f
r
a
u
d
u
l
e
n
t
l
y
c
o
n
Foreign tractedthedebtinquestion. Nocapiaswillissueexceptbyorderof
Asealisnotnecessary.
.gnitirwepytniebnaCyrevE
n
esses.
this
willsvalidinthestatewhereexecutedmaybeallowedhere.
childorgrandchild,oreverychildbornafterthedeceaseofthetes- court,judge,orcourtcommissioner.
ness
Assignmentsand Insolvency. TheInsolventlawsprovidefor
tator,shallbeentitledtohisdistributiveshareintheestate,ifnot thedischargeofapersonunderarrestfordebtordamagesonhis
tions
namedinthewill. Aforeignwillisprovedherebytheproducionof delivering up all his realand personalpropertytohiscreditors.
inNe
anauthenticatedcopythereof,togetherwithanauthenticatedcopy Assignmentsbydebtorsforthebenefitofcreditorsmustbewithout
under
preference, andallothersarevold. DebtormustannexswornInoftheprobatethereof.
ventory. Wagesofservants, clerks,andlaborersupto$300each
ton,
arepreferredclaims. Assigneemustfilelistofcreditorsattheendof
had
threemonths,andmakedividendsatthenexttermofcourt. Creditor
Comp
36000
notpresentingclaimdoesnotshareinthedividend,butretainshis
Co
rightofactionagainstthedebtor. Corporationmaymakeassign
Comm
mentforthebenefitofitscreditors.
dictio
Attachment.
Acreditormay
a
t
t
a
c
h
t
h
e
p
r
o
p
e
r
t
y
o
f
a
n
o
n
S
excep
residentorabscondingdebtorbymakingoathtothefact,andtothe
tola
amountofhisclaim,beforeanyofficerauthorizedtoadministeroath
terms
or affirmations. Attachments are forthebenefitofallapplying
most
creditors,buttheplaintifforplaintiffsaretobefirstpaidtheamounts
equity
duehimorthembeforedivisionwithothercreditors. Debtsnotdue
co-ex
maybeprovedunderanyattachmentissued,andreceivetheirpro
jurisd
ratadividend. Noattachmentcanissueagainstthemembersofa
cities
co-partnership,where oneofthemresidesintheState,noragainst
ofthe
wages orpersonal property ofnon-residentwhensaidpropertyis
has
exemptbylawsoftheStatewheredebtorresides,atthesultofanos
P.L
residentcreditor. Garnishmentcanbeeffectedonlyinattachment
dictio
c
a
s
e
s
.
Wherecaplasadrespondendumwillissueinanactionupon
Supre
USTOMTOR contract,anattachmentwilllie;awardedbycourtorajudgethereet
D
orsupremecourtcommissioneruponaffidavitfiledasrequiredtoob
toth
taincapiasadrespondendum. Attachmentwillissueagainstfemale,
corporationororganizationasifsuchdefendantwereliabletoarrest.
D
(Inactionsoftortattachmentwillissueifsummonscanbeserved)
andle
(See Arrest.) Anactionmaybecommencedbyattachmentupon
from
prooftocourt,judge,orcourtcommissioner: 1. Thattheplaintif
prem
hasacauseofaction, statingnatureandparticulars,andthatthe
defendantabscondsfromhiscreditorsorisnotresidentandthatsu
mate
OF
SYNOPSIS
(Butnoattachmentwillissuehereunder
lasued
ONY
againstthe
rollin
gerstockofacommoncarrierofanotherstateof
Inter
monscannotbe
s
v
e
d
.
take
againstthegoodsofanon-residentintransitinthecustodyofaco
2. Thatcauseofactionsur
W J E R S E Y
NE
T H E L A W S OF
moncarrierofthisoranotherstate.)vivesagainstheirsordeviseesofdecedent,andthatsomeofsuchare Such
unknownornon-residentandthereispropertyofdecedentintals Cour
deeds
Statellabletoanswerthecauseofaction.Banksareincorporated underspecialact. Undercertaincond
Wher
RELATINGTO
tionsmaypurchase,hold,andconveyrealestate. Havethesame
generalpowersandaresubjecttotherestrictionsandliabilitiesco
tainedinthegeneralcorporationact,sofarasthesameareapplicable.
BANKING A N D C O M M E R C I A L USAGES
Everybankshallmakeatleastfourreportseachyeartocommissioner
Thesereportsshallbepublishedinnews
paperwhere bankislocated. Individualorprivatebankersare
ofbankingandinsurance.
Prepared and Revised by JEROME D. GEDNEY,Counselorat Law, subjecttothesupervision
andcontrolofthedepartmentofbanking
East Orange. (See Cardin Attorneys'List.)
andinsurance. (
S
eP
.
L
.
1
8
9,
p
.
4
3
1
.
)
C
h
a
te
l
M
o
r
t
g
a
g
e
s. Chattelmortgagestobevalldmustbes
knowledged asdeedsandaffidavitoftheconsiderationmustbemade
AcknowledgmentsofdeedsaremadewithintheStatebeforethe bythemortgagee. Theymustberecorded. Incasehouseholdgoods
chancellororajusticeofthesupremecourt, amasterin chancery,
attorneyatlaw,judgeofthecourtofcommonpleas,commissionerof aremortgaged, thewifemustalsojoin.Assecurityforloans,regulated bycommerciallaw.
deeds,surrogateofcounty,oradeputysurrogate,orregisterofdeeds,
ur
la
by
ta
ustee
topawnbrokers
ofproperty
countyclerk,ordeputycountyclerkduringhiscontinuanceinoffice; Pledges
Collaterals.
Le
sforalonger
mustberiengw
it
teidng
:sta
Thefollowing
withouttheState,beforeajusticeofthesupremecourtoftheUnited termthanthreeyears.
Assignments,grants,orsurrenderoflease
States,circuitoradistrictjudgeofthesame,orajudgeorjusticeof Declarations
evitcur
orcreations
tsn
ocf
ode
ilp
mih
ere
fre
tnitonseo
d(t
sura
tfonts and assignments oftrusts. Special
Contracts.
g
r
t
r
u
s
tiw
s
)
,
thesupremeorsuperiorcourtorchancelloroftheState, district, or
e
territory,orbeforeanymayororchiefmagistrateofanycity,borough, promise ofexecutor oradministratortoansweroutofhisownestatof
orcorporation,dulycertifiedunderthesealofsuchcity,borough,or anyotherperson.
Tochargeanypersonuponanyagreementmade
corporation,orbeforeajudgeofthecourtofcommonpleasorcounty
courtofsuchstate, district orterritory, orcommissioner for New uponpromiseofmarriage
stnoranyinterestinorconcerning
ematiderehro,stne
.menet
C,o
sdnna
tlr
fo
aec
latsro
them. Anyagreement
Jersey, duly certified, underthe official seal ofsuch commissioner, nottobeperformed
withinoneyearofthemakingthereof. Contract
orbyamasterinchancery,orattorneyatlawofthis State, orby forthesaleofgoodsofthevalueof$500orupward(acceptance
of
anyofficerauthorizedatthetimeofsuchprooforacknowledgement, partofthegoodsorpayment ofpartofthepriceobviatesnecessit
y
bythelawsoftheStatewhereinthesameshallbemadeortaken,to ofwriting);appliestosalesforgoodstobemadeaswellassuchare
taketheacknowledgmentofdeedsoflandslyingand beinginsuch inexistence, unlessgoodsaretobemadeespeciallyforpurchaser
state. Incasetheacknowledgmentismadebeforeamayororchief andarenotsuitableforsaletoothersinordinarycourseofseller's
magistrate,thecertificatemustbeattestedbythesealofthecity;if business. Promisemadeaftercomingofagetopaydebtcontracted
beforeajudgeofthecourtofcommonpleasorcountycourt,orother ininfancy. Promiseofbankrupt topayafterdischarge. Commissions
officer,itmustbeattestedbysealofsuchcourt,andcertifiedbythe
clerkofthecourt. Ifbeforeanofficernotenumeratedbutauthorized tobrokerorrealestateagent,authoritytosellmustbeinwritingand
Incaseofdebtsfraudulentlycontracted
as above stated, itmust be certified that he is such officer and Isultmaybebroughtforrecoveryassoonasthefraudisdiscovered
authorized,underthelawsofsuchstate, districtorterritory, atthe
timeoftakingsuchacknowledgement,totakeacknowledgmentsand rateofcommissions
tated.
Conveyances. s
Usuallybargainandsaleorwarranty
Mustbe
proofs. Inforeigncountriesacknowledgmentorproofmaybemade
beforeamasterinchancery,anycourtoflaw, notarypublic, mayor, notwithstanding debtmaynotbedue.
(SeeMarried
W
o
m
e
n
.
)
Corporations
.
C
o
r
p
o
r
a
t
i
o
n
s
a
r
e
f
o
r
m
e
d
u
n
d
e
r
t
h
e
g
e
n
e
r
a
l
act;
or chief magistrate, or any ambassador, consul, consularagent,
however,insurantoberecorded.
ce,safedepositortrustcompanies,bankingcorpora
orotherrepresentativeofthe United States; ifbeforeforeignofficer acknowledged
ions,savingsbanks,railroadcompanies,orturnpikecompanies,or
thentheprooforcertificatemustbeaccompaniedbyacertificateunder t
thegreatsealofsuchforeignkingdom,etc.,thattheofficerwasauthor- suchothercompanieswhichintendtoderiveprofitfromtheloanor
ized,underthelawsofsuchkingdom,atthetime,totakeacknowledg- useofmoney,orwhichshallneedtopossesstherightoftakingorconmentsandproofsofdeedsorconveyancesoflands,tenementsorhere- demningland,mustbeincorporatedunderspecialactgoverningsuch
companies. Thecertificateofincorporationshallbesignedpersonally
1.Thename
ditamentsinsuchkingdom,
etc.
Actions. Allcommonlawactionsare
nowdenominated"action byallsubscriberstothecapitalstockandsetforth:
ThelocationofitsprincipalofficeintheState
atlaw ; this,however,doesnotapplytoproceedingsuponPreroga- 3. Theobjectorobjectsforwhichthecorporationisformed.4.
Theamountofthetotalauthorizedcapitalstockofthecorporation
tiveWrits.
AdministrationofEstates. Willsareprovedbeforetheordinary whichshallnotbelessthan$2,000,thenumberofsharesintowhich
2.
ofthecorporation.andtheparvalueofeachshare.
Theamountof
oftheState,orthesurrogateofthecounty,andletterstestamentary sameisdivided,
aregranted. Incasethere isno will, letters ofadministration are capitalstockwithwhichitshallcommencebusinesstobenotlessthan
granted. Shouldtherebea contestofthewillordisputeastothe $1,000,whichmaybepaideitherincashorproperty,andiftherebe
morethanoneclassofstockcreatedbythecertificateofincorporation.
rightofadministration,theorphans' courthaspowertoact. This adescriptionofthedifferentclasseswiththetermsonwhichthe
courtisalsothepropertribunalforalldisputesinmattersofestates,
5. Thenamesandpost-oice
istheauditorofallaccounts,andhasvariedpowersinmattersregard- respectiveclassesofstockarecreated.
ingestates,suchastherighttoappointtrusteesunderawill,partition addressofincorporatorsandthenumberofsharessubscribedforby
each,theaggrevateofwhichshallbetheamountofcapitalstockwith
whereminorsareinterestedinlands,etc.
whichthecompanywillcommencebusiness,andshallbeatleast
Affidavits inthe state may betaken before the Chief Justice
6. Theperiod,ifany,limitedforthedurationofthecom
ofthe United StatesoranyassociateJusticeofthe Supreme Court $1,000. 7.
The certificateofincorporationmayalsocontainany
oftheUnited States,the Chancellor, ajudgeofanycourtofrecord. provision astotheregulationofthebusinessandconductofthe
masterinchancery,attorneyatlawofNewJersey,justiceofthepeace. affairsofthecorporation,andanyprovisioncreating,dedning,limit
mayor,recorder, oraldermanofanycityorborough,supremecourt ing,andregulatingpowersofthecorporation,thedirectorsandthe
stockholders,
oranyclassofstockholders,providedsuchprovision
commissioner,cityclerk, clerkorsurrogateofanycounty,clerkof
pany.
be
not inconsistent with theactconcerningcorporations. Every
courtofrecord,notarypublicorcommissionerofdeeds.
ertificateandreportmustgiveaddressofNewJerseyofficeandname
Aliens. Norestrictionsastoholdingproperty. Foreigncorpora- c
reof,uponwhomprocessagainstthecorporation
tlons, otherthan municipal, may purchase, use, and convey real ofagentinchargetheD
irectorsshallbestockholders,andshallbechosen
estatein NewJersey. (P.L.1903, Chapter22.)
annuallybythestockholders. Theymustbethreeinnumber,at
Appeals. FromJustice'scourttocourtofcommonpleasofcounty.
Theofficersarechosenannually;presidentmustbeadirector.
Fromdistrictcourttosupremecourtonquestionoflaworevidence. OnedirectormustbearesidentoftheStateofNewJersey.Corpors
Fromcommonpleasorcircuitcourttosupremecourt. Fromcircuit t
ionmaydeterminethemannerofcallingandconductingallmeetings
maybeserved.
.
s
l
a
e
p
a
d
n
s
r
o
e
f
o
t
r
u
o
c
t
r
u
o
c
e
m
r
p
u
s
r
o
w
t
s
r
i
f
n
t
p
e
c
x
E
andwhatnumberofsharesshallconstituteaquorum.
.a
L.
0r
1,
orsupreme court to court of errors and appeals. From orphans' l
p.260.)
Whencorporationisinsolvent,remedyisbybillin(cPh
n1c9e
y
courttoprerogativecourt. Fromprerogativecourtorcourtofchan- te
haesatp.plicLaatbioornefrosraannddwaoprpkomiennthmaevnetfoifrrsetcleiievneurpoofnsauscsheItnsstoolavleinmtictoemd
cerytocourtoferrorsandappeals.
Liabilityofthestockholderceaseswhensharesarefully
Arbitrationsmaybythesubmissionbemadearuleofcourt,con- amount.
paidfor.orinotherwords,astockholderisonlyliabletotheamount
cludingtheparties, bytheaward
ofhisunpaidsubscriptiontothecapitalstock. Foreigncorporations
Arrests. Incivilactions,uponcontract,adebtormaybearrested
underthefollowingcircumstances:
1. Whenheisabouttoremove pany.
anyofhispropertyoutofthejurisdictionofthecourtinwhichan
actionisabouttobecommencedwithintenttodefraud creditors.
2. Whenthedefendanthas propertyorrights inactionwhichhe
1429
BANKING A N D COMMERCIAL L A W S - N E W JERSEY
are subject to the provisionsofthe general corporationactinsofar
asthesameareapplicable;theprovisionsofwhichhavingbeencompliedwith, thereis issued by the secretary of state to such foreign
corporationsacertificatethatitisauthorizedto transactbusinessin
thisstate. Itisunlawful foraforeigncorporationtotransactbusinessinthisStateuntilsuchcertificateisobtained. Foreigncorpora-
$50,000: 2
corporationlawofthe State, with fullforms and instructions for incorporating,issentwithoutexpenseby the secretary ofstate, Tren-
centbetween $50,000and$150,000, etc.
ton, N. J., uponapplication. Acopyofthecorporationactmaybe
hospitals,charitableinstitutionsandthe like,organizedunderthelaws
h a d free u p o n application to N e w Jersey Registration a n d Trust
C o m p a n y , 5 2 5 M a i n Street. East Orange. N. J.
Courts. Terms a n d Jurisdiction. Circuit courts a n d courts of
commonpleas,holding threeterms a yearineach county,have jurisdictioninallcivilcases,buttocarrycostsmustrecoveratleast$100,
e x c e p t t h a t t h e c o u r t o f c o m m o n p l e a s h a s no jurisdictionwheretitle
t h e p e r s o n f r o m w h o m t h e property passes or is transferred. Ifpaid
withinone year a discount o f 5 p e r c e n t i s allowed, and ifnotpaid
withinone year interest at rateof 10 per cent per a n n u m isadded.
(SeeP. L. 1 9 1 4 C h a p . 151.)
terms ayearatTrenton, hasalso originaljurisdictioninallcases,but
m u s t recover $200 to carry costs
Court of chancery has exclusive
equityjurisdiction, and sits atTrenton. District court jurisdiction,
co-extensive with county, in amounts $500 or under; justices' court
jurisdiction co-extensive with county, in a m o u n t $200 or less. In
citieswhere district courts are established a n d defendant or justice
o f t h e peace reside within the limits of said city the justices' court
has no civil jurisdiction whatever. ( S e e district court revision
P. L. 1898.) The court oferrors and appealshas nooriginaljurisdiction buthears appealsfromcourt ofchancery prerogativecourt
s u p r e m e c o u r t a n d circuit courts."
Days ofGrace. Abollshed since July 4, 1895, unless stipulated
tothecontrary.
Depositions of material witness residing in the State, whois
ancient, or very infirm, sick, a b o u t t o go out oftheState, orabsent
fromtheState,maybe takende beneessebeforeajusticeofthesup r e m e court, judge of the court of c o m m o n pleas, supreme court
commissioner,or masterinchancery, onnoticetoadverseparty. Of
material witness residing out o f t h e S t a t e b y virtue ofacommission
per cent between $50,000and$150,000, etc.; passingto
ahusband,wife,childattherateof1percent up to $50,000; 1) per
Allothers,exceptchurches,
ofandoperatingsolelywithinthisstate, areliabletoa5percenttax
o n a m o u n t s of$500 ormore.
Alltaxes imposed by theact aredueandpayableupondeathof
Interest. Legal interest on debts and judgments, 6 per cent.
Usuryispunishableby forfelture ofall interestand costs. Interest
onanopenaccountaccruesoneachitemfromitsdate,asatcommon
law. No corporation can m a k e defense of usury.
Judgmentsbecomealienonlandsfromtimeofactualentry, and
soremainfortwentyyears. Wherethereareseveraljudgments,that
underwhichthefirstlevyismadetakespriority. Judgmentsrecovered
ordocketedinthe supremecourtarealienonalllands ofdefendant
withintheState. Judgments recoveredbeforeajusticeofthepeace
m a y b e docketed incommonpleas, so as to be a lien uponlands.
Decrees in chancery may be enrolled in supreme court; when so
recorded,haveeffectofjudgmentrecoveredtherein.
Limitations of Suits. Contracts not under seal, six years; real
actionsandjudgments, twentyyears;notessecuredbymortgageand
contractsunderseal, sixteenyears. Revivor: P a r t p a y m e n t o r n e w
promise or acknowledgment in writing.
MarriedWomenholdandcontroltheirproperty, realandper-
court, ordistrict court, or court of c o m m o n pleas, commissionerof
sonal, preciselyas ifunmarried. Butamarriedwomancannotbecomeanaccommodationindorser, guarantor, orsurety, exceptunder
certainconditions. (SeeP. L. 1895, p.821.) Shecannotconveyor
Incumber real estate withoutherhusband, except sheis living ina
stateofseparationfromherhusband,andtherehas beennoissueof
suchmarriage, orher husband isunable tojoin through lunacy or
othermental Incapacity, orincaseanassentto thesame has been
signed and acknowledged by the husband. Amarried w o m a n m a y
deedsappointedbythegovernoroftheStateofNewJersey resident
wherethewitnessis, on noticeofone day. exclusive of Sunday, for
everyfifty miles oftravel and not less thantendays inall. Ifthe
absolutedisposition of her own private personal property without
Issuedoutofthecourtbeforewhich theactionispending,eitheron
Interrogatories or orally u p o n notice.
The commissioner must first
takeandsignanoath, "faithfully,fairly,and Impartially toexecute
thesaldcommission" before a n y officer authorized to t a k e a n oath.
Such depositions mayalso be takenbeforeajudge ofthe supreme
witness resides on the Pacific coast, the court fixes the length of
notice. I f i n a f o r e i g n state or kingdom, notless than forty days'
noticemustbegiven. (SeeJeffery'sLaw Precedents, p. 260,etseq.,
andDickinson's Chancery Precedents, p. 217, et seq.,forformsand
instructions.)
Descent a n d
Distribution.
Descent:
1.
To
children a n d
grandchildren,and so on, thatis, lineally, adinfinitum. 2. Inde-
faultofclass 1, to brothers a n d sisters of thewholeblood,and their
Issue. 3. In default of classes 1 a n d 2, to the father, unless the
Inheritancecamefromthemotherbydescent, devise, orgift. 4. In
default ofclasses 1, 2, a n d 3, to the motherforlife. 5. Indefault
oftheformerclasses,tothebrothersandsistersofthehalfbloodand
childrenof such, provided the inheritance camefrom the common
blood orby purchase. 6. Indefaultofallof these to the persons
ofequaldegreesofconsanguinity. 7. Indefaultofallaboveclasses
tothehusbandorwife,ifany, infeesimple. Escheatto Stateafter
all above claims are exhausted. Distribution: 1. One-third to
thehusbandorwidow, residuetochildrenandlegalrepresentativesof
children. 2. If no children or legal representatives whole of estate
t o h u s b a n d or widow.
3. I f n o husband or w i d o w all to children,
andifnochild,norrepresentativeofchildequallyamongparentsand
brothersandsisters,exceptwhereintestateaminorthenalltoparents
ofliving, ifnotliving, thentobrothersand sisters equally. 4. Ifno
husband or widow, child, legal representative of child, nor parent,
brotherorsister, thenalltonextofkininequaldegree.
Dower. Widow entitled to one-third forlifeofall thelands of
which her husband was seized during coverture, for which shehas
givenno relinquishment or release by deed, properly executed and
acknowledged (See Descent and Distribution.)
Executions issueimmediately uponarendition ofjudgment,and
are returnable either in term or vacation.
An
execution and levy
uponajuniorjudgmenttakes priorityoveraformerjudgmentunder
whichnoexecutionandlevyhasbeenmade. Theproceedsareapplied
tothepaymentof the executionuponwhichthesaleishad. There
isnostayofexecution,exceptonthosewhichareissuedoutofjustices
courts. Inthese courtsthirty daysareallowed onsums up to$15;
threemonthsupto$60,andsixmonthsonallsumsover$60,andthis
onlycaseofjudgmentbyconfessionanddefendantgivinggoodand
Thereisnoredemptionaftersaleinany
sufficientfreeholdsecurity.
Where an execution has
been returned unsatisfied, the court
case.
outofwhichitwasissuedmay,onapplicationofthejudgmentcreditor,makeanordercompellingthedebtortoappearbeforetheofficer
n a m e d a n d make discovery on oath concerning his property. The
Judgmentcreditor shall present to the courtapetitionverifiedby
oath, inwhich he shall statethe amountdue onsaldexecution, the
returnmade,andhis bellef that thedebtorhas propertyinhisown
rightoverandabovethatwhichisreservedbylaw. Courtmaymake
orderforbiddingdebtorfromreceivingortransferringpropertywhere
Itisshownhehaspropertyorrightsinaction. Ordermayalsobe
1
H u s b a n d a n d W i f e . (SeeMarriedWomen.)
Inheritance T a x e s - T r a n s f e r Taxes. Property in excess of
$5,000passing to father, mother, brother, sister, wife of son, widow
ofson,husbandofdaughter is taxed atthe rate o f 2 p e r c e n t u p t o
tions,otherthanmunicipal,maypurchase,use,andconveyrealestate
InNewJersey. Associationsnotforpecuniaryprofitmayincorporate
under special law providing for such Incorporation. A c o p y o f t h e
to lands comes into question. The supreme court, holding three
r
giving D a y , a n d a n y general election day. If a n y of these days
happenon Sunday the holidayis kept Monday. Every Saturday
from12o'clockatnoonto12o'clockatmidnightisahalf-hollday.
madeagainst thirdperson owing debtororhaving his property in
control,custody, orpossession. Arrestonacaplascanonlybehad
Incaseoffraudorattemptedremovalordisposalofpropertywith
intenttodefraudcreditors. Creditormayproceeduponunsatisfied
Judgmentatlawbybillinchancery;courthaspowertocompeldiscovery, examine debtor, and to preserve and makedispositionof
property.
Exemptions. Thelotandbuildingthereon,ownedandoccupied
bythedebtor,beingtheheadofafamily, tothevalueof$1,000,providingthat in the debtor's deedItis set out that the property is
intendedforahomestead,orelsethatnoticetosucheffectisfiledin
thecountyclerk's office. Personalpropertytotheamountof$200,
besideswearing apparel, ownedbyaresidentheadofafamily,appraisedbythreepersonsappointedbythesheriff; andthewidowof
familyofadeceasedpersonmayclaimthesameexemptionof$200as
againstthecreditors. Family ofabscondingdebtormayclaimexe m p t i o n o f $200 as above.
F r a u d s . (See Contracts.)
Garnishment.
(See Attachment.)
Holidays. Legal holidays are: January 1st, commonly called
NewYear'sDay: February 12th,calledLincoln'sBirthday:February
22d, known as Washington's Birthday: Good Friday: May 30th,
knownas Decoration Day; July 4th, called Independenceday; first
MondayofSeptember,knownas LaborDay; October12th,knownas
"ColumbusDay;" December25th,knownasChristmasDay: Thanks-
makeawillofherseparateestateasifsheweresole,butcannotdefeat
her husband's interest in her real estate, although she can m a k e
regard to her husband.
A
married w o m a n w h o is an executrixor
trusteemay convey lands of testator without husband joining. A
married w o m a n m a y executeavalld conveyance oflifeestate. (See
Dower.) Amarriedwomanmaysue, orbesued,without joiningher
husband, in any case inwhichhewould b e a n unnecessary party, if
notherhusband.
Mortgages. Unlesstosecurepurchasemoney,wifemustjoin. A
married woman cannot execute any mortgage without husband.
Foreclosureisbyactioninequity. Chattelmortgagesareabsolutely
vold as against creditors a n d subsequent bona finde purchasers a n d
mortgagees,unlessthemortgageisacknowledgedorprovedaccording
tolawandrecorded,orunlessthemortgageisaccompaniedbyimmediatedeliveryandfollowedbycontinuedchangeofpossessionofmortgagedproperty. Foreclosureofchattel mortgagesisusuallyeffected
by seizureand sale, although may beforeclosedinequity. Chattel
mortgages m u s t h a v e anaffidavitannexed, setting outtheinterestof
themortgagee, considerationof the mortgage, and theamountdue
andtogrowdue thereon: saldaffidavittobe madebytheholder, or
his agent or attorney.
Chattel mortgages u p o n household furniture
Intheuseofthefamily,unlessgivenforthepurchasethereof,mustbe
executedandacknowledgedby bothhusbandandwife.
Negotiable I n s t r u m e n t s . Regulated by an act entitled, "A
General Act relating to negotlable instruments (being an act to
establish a l a w uniform with the laws of other states on that subject)," was this year adopted. T h e a c t i s quite identical with that
passed in New York, Massachusetts, Connecticut, Rhode Island,
Pennsylvania,Maryland.Virginia, NorthCarolina,Tennessee, Florida,
Wisconsin, North Dakota, Colorado, Utah, Oregon,andWashington.
P o w e r s of A t t o r n e y for sale o f l a n d in which married w o m a n
Joins,mustcontainafullandparticulardescriptionofthelands,tenements, orhereditaments authorized t o b e conveyed.
Probate L a w . (See Administration of Estates a n d Wills.)
Replevinrequiresbondfrompartyissuingthewrit. Officerholds
fortwenty-four hours, during which defendant may give bond and
retain thegoods, whenthecaseproceeds.
Inthesamesultdamages
mayberecovered. Ifnobondisgiven,goodsaredeliveredtoplain1
.
Suitsarecommencedbywritsofsummons,caplas, warrant, orattachment. Serviceby publicationmaybemadeinequity only,and
Incommonlawcourts,incaseofaforeigncorporation,ifservicecannot
bemadeonofficers oragents,directors,clerksorengineers.
T a x e s are a n d remainparamount liens, except as to taxes subse-
quentlyassessed,fromandafterDecember20thfollowingassessment.
TaxesdueandinarrearSeptember1stnextafterassessmentmaybe
collected by sale ofland. Rightof redemption extends two years
f r o m sale.
Transfer of Corporation Stocks. Shares ofstock are personal
property,transferableonbooks,butcannotbevotedoniftransferred
twenty days before election. Subject to attachment and levy of
execution
Wills. TherearefourrequisitestomakeavalidwillinthisState.
Theyare: 1. T h a t i t b e i n writing. 2. T h a t i t b e signed by the
testator. 3. That such signatureshallbe madebythe testator, or
themakingthereofacknowledgedby h i m inthe presenceoftwowitnesses,whoshallathisrequestsigntheirnamesassuchinthepresence
ofthetestatorand ofeach other. 4. Thatitshallbedeclaredtobe
hislastwill inthepresenceof thesewitnesses. Sealingiscustomary.
B A N K I N G A N D C O M M E R C I A L L A W S - N E W MEXICO
1430
SYNOPSIS OF
T H E
L A W S
OF
N E W
M E X I C O
RELATINGTO
BANKING AND COMMERCIAL USAGES
Prepared and Revised by J.BENSON NEWELL, Attorney at Law.
Albuquerque. (SeeCardin Attorneys'List.)
Acknowledgments. (SeeConveyances.)
Actions. The practice in this Stateis the code modified by
rules of court. All civil actions in district courts are brought as
follows: Alltransitoryactionsshallbebroughtinthecountywhere
elthertheplaintiff, ordefendant, orsomeoneofthem, resides. orin
the county wherethe contract sued on was made, oris to be performed,orwherethecauseofactionoriginated,orindebtednesssued
onwasincurred; orinanycountyinwhichthedefendant, oreither
ofthem, maybefound, inthejudicial district wherethedefendant
resides. Whenthe defendant has rendered himself liabletoa civil
action by any criminal act, sult may be instituted against such
defendantin the countyin whichthe offense was committed, orin
which the defendant may be found, or in the county where the
plaintiffresides. Whensuitisbrought fortherecoveryofpersonal
property, otherthan money, Itmay be brought as herein stated.
Inthe countywherethe property maybe found. When lands, or
anyinterestinlands,are theobjectofanysuit, inwholeorinpart,
suchsuitshallbebroughtinthecountywheretheland,oranyportion
thereof, issituated. Suitsfortrespass onland shallbe brought as
providedforintransitoryactions,orinthecountywheretheland,or
any portion thereof, issituated. Suits may be brought against
transient persons or non-residents in any county of this State.
Administration of Estates. Letters of administration are
grantedinthecountyinwhichthemansion,house, orplaceofabode
ofthedeceasedis situated, orin the countyin whichlandsofthe
decedentarelocated, and intheabsence ofallthese,inthe county
wherethedeceased died. Lettersaregranted, first, tothehusband
orwifesurviving;secondly,iftherebenohusbandorwifesurviving,
tothosewhoareentitledtodistributionoftheestate, oroneormore
ofthem, as the probate judge shall belleve will best managethe
estate;thirdly,to any creditorthirtydaysafterthedeath;fourthly,
probatejudgemay selecta suitableperson. The probatecourthas
exclusivejurisdiction, and fromallitsacts anappealliesto thedistrictcourt. (SeeClaims Against Estates.)
Affidavits. Affidavits to be used in court may be taken before
anypersonauthorizedto takeacknowledgments.
Allens. By statute of the State foreigners have the same
rightto own anddisposeofrealestatethatcitizens ofthis country
enjoy,andpropertydescendstotheirheirsandiscontrolledbytheir
executors and administrators in precisely the sameway. (SeeAct
ofCongress,July20, 1886.)
Arbitration. Alllitigantsshallhavetherighttoterminatetheir
sults, in whatevercondition they may be, by means ofarbitrators.
Thearbitrators shallenterinto anagreement (theformof which is
provided by statute) tosubmittheirdifferences to arbitration, and
thearbitrators shall receive proofs and heararguments ofcounsel,
and render sentence asthe majority ofthe arbitrators may decide,
andanyofthecourtswillenforcethedecision ofthearbitrators by
issuingexecutionthereon.
Assignments. Underchapter67,lawsof1889,insolventdebtors
maymakeassignmentsforthebenefitoftheircreditors. Nopreferencesareallowed,buttheassignmentinurestothebenefitofcreditors
generally,prorata. Thecourtmayuponproperapplicationcompel
theassignee tosurrenderthepropertyto a receivertobeappointed
bythecourt. The claims ofcreditorstobeverified bytheoath of
the creditor, his agent, orattorney. Assigneeis required
to settle
uptheestatewithintwelvemonths.
Attachment. Creditorswhosedemandsamountto$100 ormore
may suetheir
theWhenthe
district codebtor
urt, byis
attachment
following
cases,debtors
to-wit:in1.
not a residinthe
ent of
nor resides in the State. 2. When the debtor has concealed
himself or absconded, or absented himself from his usual place of
abodeinthis State. so that the ordinary process oflaw can not
be passed upon him. 3. When the debtoris about to move his
property oreffects out ofthis State,orhas fraudulently concealed
ordisposedofhispropertyoreffects,soastodefraud,hinder,ordelay
hiscreditors. 4. Whenthedebtorisabouttofraudulently convey
orassign,conceal,ordisposeofhispropertyoreffects,soastohinder,
delay
ordefraud his creditors. 5. Whenthedebt was contracted
outofthisState, andthedebtorhasabsconded orsecretly removed
his property or effects into the State with intenttohinder,delay
ordefraudhiscreditors. 6. Whendefendantisacorporationwhose
principal office or place of business is out of this State, unless
such corporation shall have a designated agent in the State, upon
whomserviceofprocessmaybemadeinsuitsagainstthecorporation.
7. Whenthedefendantfraudulentlycontractedthedebt,orincurred
theobligation,respectingwhichthesuitisbrought,orobtainedcredit
fromtheplaintiffbyfalsepretenses. Anattachmentmayissueupona
demandnotyetdue,inanycasewhereanattachmentisauthorized.
inthesamemannerasupondemands alreadydue. Theattaching
creditormustfilewiththeclerkofthecourtabondwithtwoormore
suretiesindoubletheamountoftheclaim,andanaffidavitswornto
byplaintiff orsomeperson forhim,setting outtheamountofthe
claim,thatitisdueafterallowingalljustcreditorsandoffsets,and
onwhataccount; andthatafflanthas good reasonto believe, and
doesbelleve,inoneormoreofthecausesforattachmenthereinbefore
setforth. Anypersonhavingpropertyoreffectsofdefendantinhis
hands may be garnisheed. The attachment may be dissolved by
denyingandsuccessfullycontestingthetruthofthegroundofattachment specified inthe affidavit, and thenthe sult proceeds as an
ordinaryaction.
Banks. Byanactoflegislativeassemblyanynumberofperson
notlessthanthree, mayassociatetoestablishabank;thecapital
stockshallnot belessthan$30,000,ofwhich,atleast,50perce
shallbepaidinatonceandbeforetransactinganybusiness,andthe
remainder be paid withinayear; statementsshallbesenttothe
territorialtreasureroftheconditionofthebankonthefirstMonday
inJanuaryandJuly,andbepublishedatleastonceaweekforthree
successive weeks in a newspaperofthe county. Theofficersand
stockholders ofevery bankformedundertheprovisionsoftheact
shallbeindividuallyliableforalldebtscontractedduringtheterm
oftheirbeing officers orstockholdersofsuchcorporation,equally
andratably,totheextentoftheirrespectiveshares,exceptthatwhe
anystockholdershallsellandtransferhisstock,suchliabilityshall
ceaseattheexpirationofoneyearfromthedateofsuchtransfer
Itisalso provided, however,thatthestockholders,collectivelyf
anybank,shallatnotimebeliabletosuchbank,eitherasprincip
debtors, orsureties, orboth,toanamountgreaterthantwo-fifths
oftheamountofthecapital stockactuallypaidinandremainingundiminishedbylossesorotherwise.
BillsofExchange. Allbillsofexchangeshallbedueandpayable
asthereinexpressed,andshallhavethesameeffectandbenegotiate
inlikemannerandshallhavedaysofgraceaccordingtothecustom
ofmerchants. Damagefornon-acceptanceornon-paymentbype
sonsoutsidetheUnitedStates12percentupontheprincipalspecie
inthebill, withinterestonthesamefromthetimeoftheprotes
ifdrawnupona personat aplaceinanyoftheUnitedStates,of
territories thereof, 6 percentwithinterest. (SeeBillsandNota
BillsandNotesareassignableasatcommonlaw,andtheassigne
thereofcanbringsuitinhisownname.
Onajointandseveralnote
anyoneofthemakers maybesued. Indorsersaresubjecttothe
sameliabilitiesasatcommonlaw. Interestislimitedbystatuteto
12 per cent perannum. Daysofgraceareallowed. Commercial
paperfallingdueon Sundayoranylegalholidayis,understatute
payable onthenextbusinessdaythereafter.
ChattelMortgages. Chattel mortgagesandallinstruments
like effect must be acknowledged andrecordedasdeeds. Inth
absenceofstipulationtothecontrarymortgagorhasrightofposses
sion. Everymortgagesofiledforrecordisvoidasagainstcrediton
subsequent purchasersand mortgagees, aftertheexpirationofo
yearfromthefilingthereof, unlesswithinthethirtydaysnextp
cedingtheexpirationofoneyearfromsaidfiling,andeachyearthere
after,saldmortgagebecontinuedbyaffidavitofmortgagee,hisage
orattorney,filedwithmortgagee,showinginterestofmortgageand
amountstilldue.
Claims Against Estates. Claimsmustbeproperlyentitled
thenameoftheclaimantagainsttheexecutororadministratorof
theestate,andmustbefilledwithinoneyearfromtheappointmen
oftheexecutororadministratorortheywillbebarred. Theproble
Judgehearsanddeterminesclaimsagainstthedecedent'sestate. A
l
claimsfiledandnotexpresslyadmittedinwritingbytheexecutorof
administratorshallbeconsideredasdenied. Claimantsmayappe
fromtheprobatecourttothedistrictcourt,whichappealmustbe
takenwithin 90daysfromthedecisionoftheprobatecourt,and
within
eighteen Claimshavepreferenceasfollows:
months aftertheappointmentoftheexecutoror
administrator.
1.Expensesof
Expenses of funeral and last(sickness.J.
administration. 2.Allowanceformaintenanceofwidowandchildren. 4.Claimsp
ferred by theexpress provision ofthe United States orState
laws. 5. Taxes. 6. All other debts. 7. Legacies. A cla
againstanestateonaccountofmattersoccurringduringthelifetime
ofthedeceased cannot beallowedontheuncorroboratedevidence
oftheclaimant. Allconveyances ofrealestateshallbesubscribed
histitleorinterestinsaidrealestate,or
bythepersontransferring
Conveyances.
ei
nt
ty
i,
ns
wh
ra
il
tl
ib
ne
ga
bcykwnhoiwclh
byhislegalagentorattorney.
ev
de
,r
iy
ni
ln
as
wt
or
ru
em
qu
realestateistransferred oraffectE
The
acknowledgment ofall conveyances orwritingaffectingany
estate, inlaworequity,shallbetakenbeforeanyofthefollowing
named officers: Ifthe acknowledgment ismadewithintheState
itshallbemadebeforeany(1)clerkofthedistrictcourt,(2)judgeof
(3)notarywpi
ut
bh
li
in
c,
hs
e
probatecourtusingprobateseal,
t(
h4
e)
Uj
nu
istteidcSetoaftte
IftakenwithouttheStateand
tobetaken(1)beforeaclerkofsomecourtof
theacknowledgment
ofdeedsdulyappointedunder
recordhavingaseal,(2)acommissioner
peace.
Ifacknow
edgedbeyondthelimitoftheUnitedStates,Itshallbedonebefore
a notary havingaseal
thelawsofthis State (3)
Statesresidentandaccredited inthecountrywheretheacknowled
mentismade,(2)consulgeneral,consul,vice-consul,deputyconsul
consularagentoftheUnited States,residentinthecountrywhere
theacknowledgment ismade,havingaseal,(3)anotarypublichav
ingaseal. Husbandorwifemayconveytheirseparateestatewith
outconsentoftheother and husbandhassolemanagementand
disposalofcommunity property. Nosealorscrollnecessarytothe
By aexceptbycorporations
ct of congress, appr.
oved M
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validityofconveyances
granting
chartersofespecialprivileges,butwereauthorizedtopass
Corporations.
gen
eralincorporationactstopermitpersonstoassociatethemselves
together as bodies corporate for certain purposesnamedwhich
lawsremained inforceafteradmissionasaState. ACorporation
Commission isin voguenow similarto otherstates. Anythree
ormorepersonsmayformacorporationformining,manufacturing.
orotherindustrialpursuits,ortheconstructionandoperationofra
roads, wagonroads,irrigatingditches,andthecolonizationandim
provementoflandsinconnectiontherewith;orforcolleges,seminaries
churches,libraries,oranybenevolent,charitableorscientificassocia
Todosotheymustmake,sign,andacknowledge-beforesome
officercompetenttotaketheacknowledgmentofdeeds-astatement
inwriting (forthefilingofwhichthe Stateisentitledtogradusted
f
te
ie
os
n)
., setting forththefull namesofsuchpersons;thecorporate
nameofthecompany;theobjectsforwhichitisformed;theamount
ofitscapitalstock;thetimeofitsexistence,notexceedingfiftyyea
thenumberofsharesintowhichthecapitalstockisdivided:thenum
berofdirectorsandtheirnames,whoshallmanagetheaffairsofthe
company forthefirstthreemonths,andthenameofthecity,or
townandcountyinwhichtheprincipalplaceofbusinessofthecompanyislocated: theamountofthecapitalstockwithwhichitwil
commencebusiness,whichshallnotbelessthan$2,000,andifthere
bemorethanoneclassofstockcreatedbythecertificateofincorp
tion,adescriptionofthedifferentclasses,withthetermsonwhichthe
respective classes ofstockarecreated;thenamesandpost-ce
addressesoftheincorporatorsandthenumberofsharessubscribed
byeach, andshallalsogivethenameoftheagentinchargeofthe
principal officeuponwhomprocesscanbeserved. Thereshallbe
atleast three directorsin eachcompany,andamajorityofthem
citizensoftheUnited States,andatleastonearesidentoftheState
And afterthe expiration ofthetermofthosefirstselected(thre
months), theyshallbeselectedannuallybythestockholdersfro
amongtheir number. A majority ofthewholenumberofdirec
torsformaquorumforthetransactionofthebusiness. Whenthe
certificatehasbeenfiledthelifeofthecorporationbegins,withall
Thestockofthecorporationsper
Thereisnopersonal liabilities uponstockholdi
ersit
stockispaidup,exceptwheredebtsareincurredinexcessofthecap
theusualliabilitiesandpowers.
sonal estate.
b
t
t
t
d
ent
BANKING AND COMMERCIAL L A W S - N E W
ital stock.
T h e s t o c k ofastockholder m a y b e takenonattachment
or execution. Thecapital stock may be increasedordiminishedby
avoteoftwo-thirds oftheshares o f s t o c k a t a meetingofthestockholders, called for that purpose, u p o n fourweeks' notice, signedby
amajorityofthedirectors. Foreigncorporations,orthoseorganized
under the laws of other states a n d territories, m a y do business in
this State by filing with the secretary and probate clerk of county
i n w h i c h the principal place of its business shall be a copy of the
laws under which they are chartered, a n d a certified copy of their
charter, andalsoacertificate signedby the president a n d secretary
ofsuchcompany,dulyacknowledged,designatingtheprincipalplace
w h e r e the business of said c o m p a n y shall be carried on, a n d an
authorized agent or agents residing at said principal place ofbusinessuponwhomprocessmaybeserved. Railroadcorporationscome
u n d e r a s e p a r a t e h e a d with peculiar privileges and restrictions.
Costs. Securityforcosts o r a d e p o s i t o f m o n e y i n l i e u thereofis
requiredofplaintiffs, inthediscretionofthecourt.
Courts. Districtcourtshold twotermsayearinallthecountles,
a n d h a v e unlimited c o m m o n l a w a n d chancery jurisdiction. There
areprobate courts with the usual powers, holding six terms a year.
District courts are at all times in session for the transaction ofall
businessexceptjury trials.
D a y s o f G r a c e . (SeeBillsandNotes.)
Depositions. Depositions of witnessestobeusedinanycourtin
this Statein all civil cases,, a n d proceedings m a y b e t a k e n i n t h e
following cases: 1. W h e n by reasonofage, infirmity, sickness or
official dutyitisprobablethat the witness willbeunable toattend
t h e court. 2. W h e n the witness resides without the State, or the
county in which the suit is pending. 3. W h e n the witness has
left or is a b o u t t o leave the State or countyin which the suit
ispending,andwillprobablynotbepresentatthetrial. Depositions
m a y be t a k e n o n Interrogatories a n d cross-interrogatories attached
t o a c o m m i s s i o n to be issued by theclerk o f t h e court orjusticeof
thepeace, a n d m a y b e taken within the State b y a district judge,
clerk ofdistrict court,clerk ofprobatecourt oranynotarypublicof
t h e c o u n t y w h e r e taken. T h e y m a y be taken without the State
b y a n y clerk o f a c o u r t of record having aseal, by a notary publie
o r a c o m m i s s i o n e r of deeds duly appointed under the laws of this
State, a n d residing within the state or territory within which the
witnessisallegedtobeorresides. T h e o f f i c e r t o w h o m t h e c o m m i s sionisaddressedis authorized to issue subpoenasfor witnesses,and
upontheirappearance, a n d takeandreducetowritingtheiranswers
to the Interrogatories, which shall be signed to a n d sworn by the
witnesses. T h e officershallcertifythattheanswerswere signedand
sworn to by the witness before h i m a n d shall seal t h e m up i n a n
envelopetogetherwith thecommissionandinterrogatories,andshall
writehis n a m e across the seal, a n d shall direct the package to the
clerkofthecourt orjusticeofthepeaceissuingthecommission. If
sentbymall the postmastermailing thesameshallindorse thereon
thathereceived t h e m fromtheofficer takingthe s a m e , a n d signhis
n a m e . In every case the officer taking thedeposition shall certify
1431
MEXICO
theaccount. Judgmentsbearthesameinterestascontractsuedon:
andintheabsenceofanyspecifiedrate,6percent.
Judgments. Money judgments of the district court for the
countiesofSantaFe,SanMiguel,Bernalillo,Socorro,andDonaAna,
are liens on real estate of the judgment debtor from the date of
rendition, if within sixty days after rendition of such judgment a
transcriptofthedocketofsuchjudgmentbe filedintheoffice ofthe
recorderofthe c o u n t y i n w h i c h such real estateissituated. A like
judgment of the district courts of allothercounties oftheState
a n d o f t h e s u p r e m e c o u r t o f N e w M e x i c o becomes a lienupon the
real estate o f t h e judgment d e b t o r f r o m t h e d a t e o f the filing o f a
transcriptofthedocketofsuchjudgmentinthe officeoftherecorder
o f t h e c o u n t y i n w h i c h the realestateissituated.
Jurisdiction. Justice courts have jurisdiction to the a m o u n t of
$200. District courtshave unlimited originaljurisdiction. Probate
courtshold six termsannually, andhaveordinaryprobatejurisdiction. District courts in certain counties also sit for the trial a n d
hearing of causes arising under the constitution a n d laws of the
United States. District courts and probate courts are courts of
record.
Liens. Every personperforming laborupon, orfurnishingmaterialstobeused intheconstruction, alteration,orrepairofbuildings,
e t c . , h a s a l i e n u p o n t h e s a m e f o r t h e w o r k done, orforthematerials
furnished, but every original contractor claiming the benefit of the
llenlawmust, within ninetydaysafterthecompletionofanybuilding, etc.,file with the county recordera claim showing t h e a m o u n t
ofhisdemand remaining due him, name of thepersonbywhomhe
w a s employed, a n d a general statement of his contract; also a de-
scriptionof the property to be charged with the lien, which claim
m u s t be verified by the oath of the party or his agent.
Sub-con-
tractorshavesixtydaysinwhichtofileliens. Landlords,innkeepers,
and common carriers have the usual llen on propertyand baggage
oftenants. guests,andshippers. (SeeJudgments.)
Limitations. Ten years' adverse possessionoflandunder color
oftitle,havingpaidtaxesonthesameforsuchperiod,barsallactions.
Infants, femme covert, persons of unsound mind, Imprisoned, or
beyondthelimits oftheUnitedStates,excepted,andhaveoneyear
afterremovalofdisabilityinwhichtobringaction. Allotheractions
U p o n judgments of courts of record,
m u s t be brought as follows:
withinseven years; on bonds, promissory notes, bills of exchange,
orother contractsin writing, and uponjudgmentsofany court not
of record, within six years; on open accounts a n d unwritten con-
tracts, injuries to property, conversion of personal property, relief
on account of fraud,within four years, against sureties on official
bonds, and against sheriffs and public officers, within two years.
Actions of replevinmust be brought within one yearafterright of
actionaccrued.
MarriedWomen.
(See Dower.)
Maysueandbeusedasfemme
sole.
M e c h a n i c s ' Liens.
(See Liens.)
MortgagesofPersonal Property. (SeeReal EstateandChattel
thatheknows the witness to be thepersonsuchwitnesspurportsto
be,butifsuch witness isnotpersonallyknowntotheofficerheshall
Mortgages.)
thenrequire the witness to be identified by atleasttwo responsible
recordedin the same manner as deeds. Mortgages of chattels are
providedforinthestatute,andmaybegivenonallkindsofpersonal
personswell known to theofficer, andhe shallcertify tothefactof
Identificationofthewitness.
Dower. All property owned by any w o m a n a t the time ofher
marriage, continuestobeherseparate property,and shemayreceive
andholdproperty during coverture freefrom liabilities onaccount
ofherhusband's debt, except for necessaries of life. There is no
dowerin the Statebut a married woman is entitled to one-half
ofallthepropertyacquiredbythehusbandandwifeduringcoverture,
first, however, deducting all Indebtedness.
Executions. Executionsmayissueatanytimewithinsevenyears,
providedfirst executionistakenoutwithinfiveyearsafterrendition
of judgment, and to any countyin the State. From district
courtsarereturnable insixty daysfromdelivery to sheriff,andfrom
Justices' courts within thirty days from date of issue. No stay of
executionexceptbyappeal. Awritoferrorwillstay executionofa
Judgmentindistrict court,if such writis applied for within three
months from date of rendition of judgment, and bondisgiven for
double the amount of such judgment. The supreme court m a y
assess10percentdamageswhereappealistakenwithout reasonable
cause. Real estate sold under execution, and subject to liens and
incumbrances, mayberedeemedwithinoneyear. Salesunderexecutionmustbeadvertisedfourweekspriortodayofsale,insomenewspaper.
Exemptions. Realestatetothevalueof$1,000 shallbeexempt
fromexecutioninfavorofheadsoffamilies actually residing onthe
tame, provided the exemption be claimed. But ifintheopinionof
thecreditors the premises claimed as exempt are worth more than
$1.000,it shall be lawful for the officer to advertise and sell the
premises, and out ofthe proceeds ofsuch sale pay to the execution
Mortgages of Real Property. There is no statute relating to
mortgages on real estate, except that they must be executed a n d
property, except growing crops. Every mortgage so filed shall be
voldasagainstthecreditorsofthepersonmakingthesame, oragainst
subsequentpurchasers or mortgageesingoodfaith, after the expiration of one year after the filing thereof; unless within thirty days
nextprecedingtheexpirationofthetermofoneyearfromsuchfiling,
andeachyearthereafterthemortgagee, hisagent,hisattorney,shall
make an affidavit exhibiting the interest of the mortgagee in the
propertyatthetimelastaforesaid, claimedby virtue ofsaldmortgage,andifsaidmortgage is to secure the payment ofmoney, the
a m o u n t y e t d u e a n d unpald; such affidavit shallbeattached to a n d
filedwith theinstrumentor,copyonfile,towhichitrelated. I n t h e
absence ofastipulationtothe contrary, the mortgagor ofpersonal
propertyhas the right to the possessionthereof. Aftercondition
b r o k e n t h e mortgageeorhisassignee m a y , w h e r e t h e a m o u n t o f t h e
debtdoesnot exceed $300, proceed tosellthe mortgagedproperty.
orsomuch thereofasshallbenecessary tosatisfythemortgageand
costof sale, havingfirst given noticeofthe t i m e a n d placeof sale.
bywrittenorprintedhand-billspostedupinatleastsixpublicplaces
intheprecinctin which the property is to be sold, atleast forfour
weeks preceding the dayof sale. If the mortgagee or his assignee
shall have obtained possession of the mortgaged property, einher
beforeorafter condition broken, the mortgagor or a n y subsequent
mortgagee may demand in writinga sale of such property. having
firstgivennoticeasprovidedforabove. Ifaftersatisfyingthemortgageandcostsofsalethereshall beanysurplusremaining, the s a m e
shallbepaid t o a n y subsequent mortgageeentitled thereto, o r t o t h e
mortgagororhis assignee. T h e h u s b a n d m a y mortgagehis separate
estate without the consent or signature ofhis wife. (See Convey-
debtor$1,000,andapply thebalancetopaymentofexecution, pro-
ances.)
Notes
fortheuseofthefamily;andfirewoodsufficientforsixtydays,when
twoormorepersonsforthetransactionofanymercantile,mechanical.
manufacturing, or other business, except banking or insurance,
Such partnerships may be general or special. Dissolution of all
partnershipsmustbepublished in newspapers ofgeneralcirculation.
Legalrateforpublication30centsper 100 emsforfirst insertion, 20
centsper100emsforeachsubsequentinsertion.
videdthatno salecanbe made unless more than$1,000bebidfor
the premises. Also the clothing, beds, and bed-clothing necessary
actually provided and Intended therefor. All Bibles, hymn-books,
testaments, schoolbooks usedby thefamily,andfamilyandreligious
pictures. Provisions actually provided, to the amount of $50, and
kitchenfurnitureandhouseholdfurniturenotexceeding$200in value
bothto be selected by the debtor. Also alltoolsandimplements
belonging tothedebtorthatmaybenecessary to enablehimtocarry
onhistradeorbusiness, whetheragriculturalor mechanical, to be
selectedbyhim, andnot to exceed $150 invalue. Real estatewhen
soldunder execution must be first appraised by two freeholders of
the vicinity, and must bring
two-thirds of the appraised value.
Unmarriedmenhave
no exemptions. Anyresident of the State
owningnohomesteadmayselectotherproperty,notexceeding$500
invalue inlieu thereof.
ForeignCorporations. (SeeCorporations.)
Foreign Judgments. Actionfoundeduponanyjudgmentofany
courtofrecordofanyotherstateorterritory ofthe UnitedStates,
orofthefederalcourtsmaybebroughtwithinsevenyearsfromand
aftertherenditionofsuchjudgments,andnotafterwards.
Fraud. Fraudulentconveyances, orconveyancesmadewiththe
designtopreferone ormorecreditorsinpreferencetoothers,and,
whenthedebtorisinsolvent, maybesetasideuponapplicationby
abillinequity. (SeeAssignments.)
Garnishment. All persons and corporations are subject to
garnishmentformoneysofadebtorin theirhands, andafailureof
thegarnisheetoappearandanswer, subjectsthegarnisheetoaproceedingforcontempt. (SeeAttachments.)
Holidays. Sundays, Christmas, New Years, Fourth of July,
October12th, Columbus Day, andsuchotherdaysasmaybedesign a t e d b y the government asholidays.
H o m e s t e a d s . (SeeExemptions.)
H u s b a n d a n d W i f e . (See Dower.)
I n s o l v e n t L a w s . (SeeAssignments.)
Interest and Usury. Sixpercent interestisthelegal rateof
a n d Bills o f E x c h a n g e .
(See Bills andNotes.)
Partnerships, Limited. Limitedpartnershipsmaybeformedby
P r o b a t e L a w . (See Claims Against Estates, Descentand Distribution, Executions,andAdministrationof Estates.)
Protest. Anynotarypublicmaymakeprotestofbillsofexchange,
acceptances, promissorynotes,etc., fornon-payment. Thecertificate
ofanotary, underhisofficialseal,asto presentment, demand, nonpayment, ornon-acceptance, and notices to parties, shall be prima
tacleevidenceofthefactscertifiedto. Feesforprotestandcertificate
thereof $2.00; 25 cents additional for each notice.
R e c o r d s . (See Conveyances.)
Redemption. Real estatesoldunderexecutionmayberedeemed
by the executiondebtorwithin one year, b y p a y i n g to the purchaser
thepurchasemoneywithinterestthereonat12percent. Realestate
soldfor taxes m a y b e redeemed within three years, but thedebtor
shallpayinterestat11-2 p e r c e n t p e r m o n t h o n t h e p u r c h a s e m o n e y .
Thepurchaserunder executionis entitled to thegrowing crops, a n d
the rents a n d profits. w h e n property is sold under a foreclosure
proceeding the mortgagor has nine months within which to redeem
sameby paying theamountofthedebtandcosts, with12 percent
Interest.
Replevin.
A n y person entitled to the Immediate possession of
personalproperty may havea writ of replevin for the same, upon
filing an affidavit that heis entitled to the immediatepossessionof
theproperty, that the same was wrongfully taken or iswrongfully
detainedby the defendant, and that the plaintiff's right ofaction
accrued within one year. Before the writis served, plaintiff must
give bond to the officer conditioned to hold h i m harmless, m a k e
returnoftheproperty. Ifareturnbeadjudgedandpayallcoststhat
may be adjudged against him, the affidavit to be made and bond
executed by the plaintiff, or some responsible personfor him. If
theplaintifffailinhisaction, ortoprosecutethesame,defendantis
entitledtoareturnoftheproperty,oritsvalueathisoption,andto
Interestinabsenceofcontract,butpartiesmayagreeinwritingfor
anyrateofinterestnotexceeding 12percent. Openaccountsbear doubledamagesforthedetentionoftheproperty. Nocrossreplevin
Interestat6percentfromsixmonthsafterthedateoflast item in
allowed.
BANKING
1432
A N D
COMMERCIAL
Taxation. Taxeshavetheforceandeffectofajudgmentagainst
thepersonassessedandconstitutealienuponrealandpersonalproperty. Taxesbecomedelinquent, one-halfthe firstdayofDecember
oftheyearforwhichthesamewaslevied,andtheotherhalfthefirst
ofJunefollowing,andsuchtaxesshall,fromrespectivedatesofdelinquency, bearinterestatrateofoneper cent per month, untilpaid.
Noticeoftaxsale ofduplicatecertificateshallbemailedtoowneror
agentofland, ifknown. After sale certificates draw interest at the
rateof 1 per cent per month. Real estate sold for taxes m a y be
L A W S -
N E W
YORK
creditors: (Laws 1909, Chap. 17, Art. II.)(asamendedbyChu
360, Laws 1914.) Wages or salaries ofemployes, forservices
deredwithinthreemonthspriortotheassignmentarepreferred
allotherdebts;thedebtormaycreateotherpreferencestothea
ofone-thirdinvalueofthe assignedestateleftafterdeductingst
wagesor salaries and the costsandexpensesofexecutingthethat
Also regulatingthe filling ofinventory,thegivingofbondsand
countingbytheassignee. Thecourthaspowertoremoveavi
redeemedwithinthreeyears. Exemptiontoamountof$200allowed
a n d m a y require creditors to present claims withinaperiod
prescribed, notice whereof is to be given by advertisement
andinsoundmind, maydisposeby willofallhis property, except
t h e d e b t o f t h e assignor, a n d d o notdischargeorsatisfythewho
indebtedness of the assignor.
Statutory provision alsoexistsforaresidentinsolventdebtorto
toheadoffamily residing in State. Irrigation, reservoir, and railroadcompanies exempt undercertainconditionsforatermofyears.
Wills. A n y person ofthe age of twenty-one years or upwards,
Thedividends paidby such an assigneeneedonlybeapplied
whatissufficientto payhisdebts. T w o or more witnessesshallbe
sufficient. Thewitnesses t o a written willmust be present, see the
testatorsign the will, or some onesignit forhim at his requestas
andforhislastwillandtestament,andmustsignaswitnessesathis
dischargedfromhisdebtsuponhiswrittenpetitionandthewho
request, inhispresenceandinthepresenceofeachother. Anywill
proceeding israrelyresortedto.
Attachmentsmayissueinactionstorecoverasumofmoney
executedinanyforeignjurisdictionsufficienttoconvey the title or
real estate insuch jurisdiction, shall bevalid inthis State to the
same extent as in the jurisdiction where made. Allwritten wills
are irrevocable, except by specially mentioningit i n a subsequent
willanddeclaringthathetherebyrevokesthesameorbyasubsequent
validwilldisposing ofthesameproperty. Theprobatejudgeshave
powertoqualifyand approvewills afterhearing the evidenceofthe
witnesseswhoattestthe will,andanyother factsconnectedwiththe
executionofit. Iftheprobatejudgefindseverything tobelegaland
properheapprovesthewill,butifnot, thenhereturnsittotheparty
applyingforitsapproval, withhisreasons forfalling toapprovethe
same. T h e p e r s o n t o w h o m i t i s returned m a y present the s a m e t o
thedistrict court at the next regular term heldin the county, for
itsapprovalordisapprovalwhichisfinal.
consentofunsecuredcreditors whoseclaimsamounttonotlessthe
two-thirdsofallthedebtsowingbythepetitionertocreditorsres
withintheUnitedStates. (Lawsof1909, Chap. 17,Art.III.
asdamages for breachofcontract, wrongfulconversionofperse
property, or injury to person or propertyinconsequenceofo
genceor fraud, where thedefendantiseitheraforeigncorpora
or non-resident, or has left the State, or concealshimselftha
service, or has removed from the State, or sold,assigned.
orisabouttoremove,sell,assign,orsecretehispropertywith
todefraud creditors, or where, for the purposeofprocuring
or an extension of credit, a false statement wasmadein
u n d e r t h e h a n d a n d signatureofthedefendant,oradulyauthe
agent,madewithhisknowledgeandacquiescence,astohisfina
responsibility or standing, or wherethedefendant,beingatiw
has been continuously without the State ofNew Yorkfort
t h a n s i x m o n t h s a n d h a s n o t madeadesignationofaperson
w h o m to serve a summons in his behalf.
Banks. The constitution prohibitsthelegislaturefrompa
anyactgrantinganyspecialcharterforbankingpurposes;but
porations or associations may beformedforsuchpurposesuni
general laws.
OnApril16, 1914,thenew bankingactbecamealaw. This
repeals virtually allpreviouslaws onthissubjectandcover
entirebanking field.
Themostimportantchangemadebythisactisinregardto e
S Y N O P S I S OF
privatebankerengagedinthebusinessofprivatebankinginanyofthestate.
T H E L A W S
OF
N E W
1. W h o makes use of any office signbearingthereonthew
oftheword"bank,"oranywords inaforeignlanguagehave
same or similar meanings, or who makes use ofany exterior
"bank", "banker", "banking."" or any derivativeorcompe
Y O R K
bearingthereonanysuchwordorwordsoranywordswhates
indicatetothegeneralpublicthatsuchpersonisengagedinthe e
R E L A T I N G TO
n e s s o f a p r i v a t e b a n k e r ; or
2. Whopaysorcreditsinterest,orpays,creditsorgivesanyfor
BANKING A N D COMMERCIAL USAGES
orgratuityor
anything ofvalue, except oncertificatesofde
actuallyoutstandingatthetimethisacttakeseffect,toanyde
PreparedandRevisedbyGEORGE J. HATT,2D,AttorneyatLaw,
Albany. (SeeCardinAttorneys'List.)
suchprivatebankerisengagedinbusinessinacityofthese
Acknowledgments must be made within the State, before a
Justiceofthesupremecourt;orwithinthedistrictwhereinsuchofficer
isauthorizedto performofficialduties,beforeajudge, clerk, deputy
clerk,specialdeputyclerkofacourt,anotarypublic,orthemayor,a
recorderofacity,ajusticeofthepeace, surrogate, specialsurrogate,
special county judge, or commissioner ofdeeds. (No special form,
separateandapartfromherhusband, etc., n o w requiredfor married
women.) IfmadewithouttheState,theymaybetakenbyjudgesof
UnitedStatescourts,judgesofthesupreme, circultorsuperiorcourt
ofanyotherstateorterritory, within thejurisdictionof theircourts
bythemayor ofany city, orby a N e w York commissioner, orany
officerofsuchstateorterritoryauthorizedbyitslawstotakeacknowledgments, orproofsordeedstoberecordedtherein. Whenacknowl-
edgedaslastabovestated, theremustbeobtainedacertificate"under
thenameandofficialsealofthesecretaryofstateoftheStateinwhich
suchofficerresides, orunder the n a m e a n d officialseal oftheclerk,
register, recorder, orprothonotaryofthecountyinwhichsuchofficer
resides, ortheclerkofanycourt thereofhavingasealspecifyingthat
theofficerwasauthorized,etc." Provisionismadebylawforacknowledgmentsandproofsinforeigncountries;also Cuba, PortoRico, and
Philippines.
Theacknowledgment by an individual isin the following form:
" S t a t e o f N e w York,
County of...
Cityof.
On
this
88:
}
day of.
ninehundred and
appeared
missiontoothersorforanyotherpurposeinsuchsumstha
averageoftheseparatedepositssoreceivedbysuchprivateta
sinceApril 1st, 1914, orduringanytwelvesuccessivemonths,of
suchperiod, iflessthantwelvemonths,thatsuchprivatebank
beenengagedinsuchbusiness,exclusiveofdividendchecks,C
orothersmallcollectionitemscollectedbysuchprivateback
customersintheordinarycourseofbusiness, is(a) lessthan$
ifsuchprivatebankerisengagedinsuchbusinessinacity
classhavingapopulationofover1,000,000,or(b)lessthan$
engagedinbusinessinanyothercityofthefirstclass,oritless
$200, ifengagedinbusiness inanycityofthesecondclass
lessthan$100,ifengagedinsuchbusinessinanycityofthethird
ThefollVerified
owingarecs
omeofthemoreimportantsubjectsander
ertificate to be submittedbyprivatebat
article:
ness:ka
department; ConditionsprecedenttotransactingbuPsei
privatebanker under authorization certificate; rmanent
increaseordecrease;Segregationofinvestmentsofcapitaland
in
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eDdedpeopsoistiotrss;pDreepfoesrirteodfisneccausreiotfiietssw
ofbanking: Investmentofpermanentcaptai
superintendent
deposits; reserves against deposits, etc.
Fiveormorepersonsmayformacorporationtobeknownasahaza
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described in and w h o executed the foregoing instrument,
acknowledgedtome thatheexecutedthesame.
T h e acknowledgmentby acorporation isasfollows:
person
"StateofNewYork, }ss:
County of.
d a y of.
On
the..
mepersonallycame.
n tih e e year.
r o
f
e
b
tomeknown, who, beingby
:
medulysworn, did deposeandsaythat heresides in.
thatheisthe(president orotherofficer) ofthe(nameofcorporation),
thecorporationdescribedinandwhichexecutedtheaboveinstrument;
t h a t h e k n o w s the seal ofsaidcorporation; that the seal affixed to
saidinstrumentissuchcorporateseal; thatitwassoaffixedbyorder
oftheboardofdirectors ofsaidcorporation, andthathesignedhis
nametheretoby likeorder.
(Signature a n d office of officer taking acknowledgment.)"
Administration of Estates. The administration of estates is
committed to surrogate's courts. In cases of intestacy, letters of
administrationareto be granted to the relatives ofthedeceasedentitledtosucceedtothepersonalpropertyofdecedent,whowillaccept
t h e s a m e i n the following order: 1. To the survivinghusband or
To t h e children. 3. To t h e grandchildren. 4. To the
wife
2
father. 5. To the mother. 6. To the brothers. 7. To the
8
class,or(c)lessthan$200,ifsuchprivatebankerisengagedinbi
inacityofthe thirdclass; or
3. W h o receives money ondeposit forsafekeepingorfort
in the year one thousand
notexceed30,000,$50,000isthecapitalrequired,andnotless a
beforeme, the subscriber, personally
emasehtebotn
$100,000
wonkyllanosrepemot.erehwesle
andhe.
.
onadepositbalance of(a) lessthan$500, ifsuchprivatebasi
engagedinbusinessinacityofthefirstclass,or(b)lessthan&
of kin,
to share
s To ra n y other
e
tnext s
i entitled
s
s
ini t h e d
tribution oftheestate. Ifapersonentitled isa minor, administration mustbegranted tohis guardian. Ifno person entitled to take
or share in the estate will accept administration shall be granted
(a) To the public administrator, (b) To the County Treasurer, or
to the petitioner in the Surrogate's discretion. (c) To any other
person
Afidavitsmaybetaken byanyofficerauthorized toadminister
oathsincludingcommissionersofdeedsandnotariespublic, thelatter
alsoincountlesotherthanforwhichtheyareappointed, upon their
filingcertificates insuchcounty.
Arbitration may be resorted to, upon disputed questions, the
Provisionismadeforcirculationandadepositforsecuritytheorder
theamountoftheirstockatpar,inadditiontotheamoun
insuchshares, foralldebtsandliabilities;billholders,inca
solvency, shallbeentitledtoapreferenceinpaymentovera
creditorsofthebank. Quarterlyreportsarerequiredtobe
tothesuperintendentasofadatedesignatedbyhimbyal
Stockholdersofallbankingcorporationsareliabletotheex's
bankers, trust companies and banks ofdiscount
arerequired toreport onor before February 1standNic
ofeachyear whichreport shallstateits conditiononthe
ofJanuary1standJuly 1stinsaidyear. Heisalsogiven
toexaminethebooks of any bank. No corporationother
moneyedorinsurancecorporationmaydobusinessinthisMate
thewords, "trust," "bank," "banking," "insurance.
"indemnity." "guarantee." "guaranty." "savings."
"loan,"or"benefit,"asapartofitsnameorcorporatete
Thegeneralbankingactalsoprovidesfortheorganizat
managementofsavingsbanksandtrustcompanies.
Banksofdiscountanddeposit, includingIndividualbaske
maintain total reserves against its aggregatedesand
follows
18percentofsuchdepositsiflocatedinBen
populationof2,000,000orover;15percentifinboroch
12percentelsewhereinstate. MemberofaFederalReser
maymaintain such portion ofreserveswithsaid FederalBas
required ofits members.
Trustcompanieshavingtheirprincipalplaceofbus
branchoffice, borough ofthis State, having population
arerequired tohave alawful money reserveoffifteen
inboroughof1,000,000p
opulation13percent,andonalleet
percent. Theamountofreservet
intheStateten(10)
onhand isdependentuponlocation. Atleast50per f
serves onhand must consist of gold, goldbullion, ged
1
goldcertificatesorU.S. Notes:thebalancemustconststof
ofcurrency,otherthanfederalreservenote authorizedb
practicebeingregulatedbythecodeofcivilprocedure.
(Chap. 17
Lit
the
AssignmentsandInsolvency. Statutory provision exists,regulatingthemakingofgeneral assignments intrust, forthebenefitof
ForeigS.
nbankingcorporationsmaytransactinthisStatethe
Issuinglettersofcreditorofreceivingmoneyfortrats
transmittingthesame orofmakingsterlingorotherloans
nessofbuying,selling,payingorcollectingbillsofexcha
BANKING AND COMMERCIAL L A W S - N E W
corporation is authorized by its charter to carry on such business
bypayingalicensefeeof$250ayear,submittingtoSuperintendentof
Banksexemplifiedcopyofits charterandby-laws,designatingsuper-
intendentas attorney infact to accept serviceof processand other-
wisecomplywithChap. 144-147oftheBankingLaw. andreceivefrom
thesuperintendentofbanks a license authorizing itto transact such
business. Butnoforeign corporation,otherthananationalbank,shall
keep a n y office for the purpose of receiving deposits or discounting
notes orbills, or issuing any evidence ofdebt t o b e loaned or put
incirculation as m o n e y within this state.
P a y m e n t o f S a v i n g s B a n k Deposits. Deposit i n n a m e o f a n y
minoris free f r o m control ofall persons, except creditors, a n d the
receiptofsuchminorforsuchdepositisvalidtothebank.
Anydeposit intrust foranother, in the eventofthedeath ofthe
trustee, m a y b e p a i d t o t h e p e r s o n f o r w h o m t h e depositwasmade,
Intheabsenceofnoticeofthe existenceofalegal trust.
A d e p o s i t i n t h e namesofdepositor and a n o t h e r p e r s o n a n d m a d e
payabletoeltherorthesurvivor,maybepaidtoeitherduringthelifetimeofboth,ortothe survivorafterthedeathofone.
Bills o f E x c h a n g e . (SeeNotes andBills ofExchange.)
B u l k Sales. (See Personal PropertyLaw.)
Chattel Mortgages. (See Mortgages.)
ConsolidatedLaws. TheLegislatureof1909passedalargenum-
berofcompiled statutes reported by the Statutory Consolidation
Board, knownas"Consolidated Laws," todistinguish t h e m from the
"RevisedLaws,""RevisedStatutes,"and"GeneralLaws" heretofore
Inforce inthis State.
Conveyances. Anestateorinterestinrealpropertyotherthana
leaseforaterm not exceeding oneyear, cannotbecreated orgranted
exceptbyadeed orconveyance,in writing, subscribedbytheperson
creating and granting the same, or by his lawful agent thereunto
authorizedbywriting. Thisdoesnotaffectthepowerofthetestator
inthe disposition of his real property bywill. Deeds mustbeacknowledged andtakeeffect from delivery only.
Every conveyance not recorded is void,as against a subsequent
purchaser in good faith and for a valuable consideration from the
same vendor, his heirs or devisees, whose conveyance is first duly
recorded.
Acknowledgment must be made by the party who executes the
conveyance, or s o m e other p e r s o n w h o i s a w i t n e s s to itsexecution,
a n d a t the same time subscribed his name to the conveyance as a
witness.
Amarriedwomanmustjoinintheconveyancetoreleaseherdower.
T h e formerprovisions ofthe Revised Statutes relatingto the seal-
1433
YORK
have jurisdictioninactions oncontract wherethe s u m claimeddoes
notexceed$200,anddistrictcourtsofthecityofNewYork,wherethe
s u m d o e s n o t e x c e e d $ 2 5 0 , thecitycourtofthecityofAlbany,where
thesumdoesnotexceed$1,000,andtheMunicipalCourtoftheCity
o f N e w Y o r k where the a m o u n t does not exceed $500.
D a y s ofGraceareabolished.
D e e d s . See Conveyances.
Depositions. Thedepositionofapartyorofapersonnotaparty
withinthisState,inanactionbroughtortobebrought, m a y b e t a k e n
where shown that such testimonyis material and necessary inthe
prosecutionordefenseoftheaction; oriftheactionispendingthat
thepersontobeexaminedisabouttodepartfromthe State, orthat
heissosickorinfirmas toaffordreasonablegroundtobelievethathe
willnotbeabletoattendthetrial. Suchdeposition,exceptthatofa
partytakenattheinstanceofanadverseparty,canonlybeusedupon
proofofthewitness' inability toattendthetrial. Depositionsmay
betakenwithouttheStateforusewithintheState.
Thecommission,
inthediscretionofthecourt, maydirecttheexaminationuponoral
questions or written interrogatories.
Depositions m a y a l s o be taken
withintheStateforusewithouttheStateinanactionorspecialproceeding pendinginacourt without the State, either in the United
States orinaforeign country. A p e r s o n w h o fails to respond t o a
s u b p æ n a for such examination is guilty of contempt of court.
Depositionsmayalsobetakenforuseonamotionin any action or
proceeding.
D o w e r . (SeeMarriedWomen.)
Executions will issue at a n y time within five years from dateof
Judgment; after five years, leave must be obtained from the court.
Executions may issue to two or more counties at the same time.
Therearenostaylaws,unlessanappealistaken,whenanundertaking
securingthejudgmentcanbegiven. O n a j u d g m e n t , i n a n y c a s e o f
over$25,afterexecutionisreturnedunsatisfied,defendantandothers,
includingcorporations, m a y b e examined astothejudgmentdebtor's
propertyinproceedingssupplementarytoexecution, andrequiredto
applyanynot exemptinpayment.
Exemptions. Homestead, $1,000 (to secure such exemption,
deed, ornoticedesignatingthattheproperty i s t o b e u s e d a s a h o m e -
stead,mustberecorded);necessaryfurniture, tools,team,etc.,$250,
exceptwhere executionis issued onjudgmentfor either work performedinthefamilyasadomestic.orforthepurchasepriceofoneor
morearticles specially exempt.
N o t to exceed 10 per cent o f t h e
earningsor income ofajudgment debtor receiving $12 or moreper
weekmaybecollectedandappliedonjudgmentby orderofthecourt
ing of deeds have been omitted from the present Real Property
u n d e r a g a r n i s h e e execution.
Law,butit isthe universal practice toaffixaseal andtheforms of
deedsincorporated inthe "Real Property Law" refer in theattestationclausetotheaffixingoftheseal. Theword"Seal"ortheletters
tenseisnotcriminal,wherethefalsepretenserelatestothepurchaser's
"L. S." oppositethesignaturewill, however, sufficeasthesealofa
person. Itis otherwise as to corporations, which should adopt a
seal a n d affix it to the conveyance.
Section258ofChapter50oftheConsolidated Laws,beingChapter
52ofthe Lawsof1909, providesthefollowingformforaFullCovenantDeed:
DeedwithFullCovenants
This indenture, made the......... day of.......
year nineteen hundred and...
between..
in
the
of
(insertresidence) ofthe first part, and.............of (insert
FalsePretenses. Apurchaseofpropertybymeansofafalsepremeansorabilitytopay, unless thepretenseismadeinwriting, and
signedbythepartytobecharged. Wheneverpropertyispurchased
byaldofastatementrelatingtothepurchaser'smeansorabilityto
pay, made in writing and signed, wherein he states that he keeps
books of account, the purchaser upon failure to pay at maturity
a n d during the period of ninety days subsequent to such failure
mustproducewithintendays, uponrequest,hisbooksofaccountand
permitcreditorstoexaminethem,andfalluretodosoismadepresump-
tiveevidenceofthefalsityofsuchstatement,andthepartysomaking
thestatementmaybeproceededagainst criminally.
False S t a t e m e n t t o O b t a i n P r o p e r t y o r Credit. A n y p e r s o n w h o
residence) ofthesecondpart.
knowinglymakes, orcausestobemade,directlyorthroughanyagency
Witnesseth, thatthesaidpartyofthefirstpart, inconsideration
of.
...dollars, lawful m o n e y ofthe United States, paid
bythepartyofthesecondpart,dothherebygrantandreleaseunto
thesaidpartyofthesecondpart,hisheirsand assigns forever (de-
whatsoever, anyfalsestatement,inwriting,respectinghisfinancialcondition,orthatofanyperson,firm orcorporationinwhomheisinterested, orforwhomheisacting,forthepurposeofprocuringthedelivery
scription), together with the appurtenances and all the estateand
rightsofthepartyofthefirstpart inandtosaidpremises.
T o h a v e and to hold the above granted premises unto the said
partyofthesecondpart, hisheirsandassigns forever. Andthesaid
partyofthe first partdothcovenant with saidparty ofthesecond
partasfollows:
1. Thatthepartyofthefirstpart isseizedofsaidpremisesinfee
simple,andhasgoodrighttoconveythesame.
2. Thatthepartyofthesecondpartshallquietlyenjoythesaid
premises.
3. Thatthesaidpremisesarefreefrom incumbrances.
4. That the party of the first part will execute or procureany
furthernecessary assuranceofthetitletosaidpremises.
5. Thatthepartyofthefirst part willforeverwarrantthetitle
tosaldpremises.
Inwitness whereof, thesaidparty ofthefirst parthathhereunto
sethishandandsealthedayandyearfirstabovewritten.
Inpresenceof:
The above enactment does not prevent or invalidate the use of
otherforms.
Corporations. Insurance,banking,rallroad,transportation,and
formedunderthegenerallawsofthe
businesscorporationsmaybe
State.
Foreign Stock Corporations (other than moneyed corporations),
beforedoingbusinessintheState,arerequiredtoobtainacertificate
ofauthorityfromthesecretary of State. "Noforeignstockcorpotion, doing business in this state, shall maintain any action inthis
Stateuponany contract m a d e b y itinthis Stateunlesspriortothe
making ofsuch contract itshallhave procured such certificate."
"Thisprohibition shallalso apply to any assignee ofsuch foreign
stockcorporation,andtoanypersonclaimingundersuchassigneeor
suchforeignstock corporation or undereitherofthem." Whatconstitutes"doingbusinessinthis State" dependsontheparticularstate
offactsineachgivencase; ingeneralitmaybesaidthattheselling
ofgoodsinthisstatebymailorthroughtravelingsalesmendoesnot
constitute "doing business." Foreign corporations doing business
InthisStatemayacquirerealpropertyforitscorporatepurposesand
conveythe samein the same manner as adomestic corporation.
Foreign corporationsmayacquireonsaleinforeclosureofamortgage
heldbythemoruponanyjudgmentordecreefordebtsduethem,or
uponasettlementtosecure suchdebts, realpropertyinthis State
coveredbyorsubjecttosuchmortgage,judgment,decree,orsettlement,andmaytakebydeviseanyrealpropertysituatewithinthis
ofpersonalproperty,thepaymentofcash,themakingofaloanorcredit,
theextensionofcredit, thediscount ofanaccountreceivable, or the
making,acceptance,discount,saleorendorsementofabillofexchange
orpromissorynotefor thebenefitofeitherhimselforofsuchperson.
firm or corporation, or, knowing that a false statement, in writing,
has been made, procures u p o n the faith thereof a n y of the things
ofbenefit above mentioned, or w h o represents on alaterday, either
orally or in writing, that such statement theretofore made, ifagain
m a d e o n s a i d d a y , would be then truewhen,infact,thestatementif
t h e n m a d e would be false, a n d procures u p o n t h e faith thereofany
ofthethings ofbenefitaforesaid,is guiltyofamisdemeanor, punishablebyimprisonmentfornotmorethanoneyearorafineofnotmore
than $1,000, or both.
G a r n i s h m e n t . (See Exemptions.)
Holidays. The termholidayincludesthefollowingdaysineach
year: The first day of January, known as N e w Year's Day; the
twelfthdayof February, knownas Lincoln'sBirthday; thetwentysecond day of February, known as Washington's Birthday: the
thirtiethdayofMay,knownasMemorialDay;thefourthdayofJuly.
knownas Independence Day; thefirstMondayofSeptember, known
as LaborDay; thetwelfthdayofOctober,knownas ColumbusDay:
and the twenty-fifth day of December, known as Christmas Day:
andifeither ofsuch daysis Sunday, the next d a y thereafter; each
generalelectiondayand eachdayappointedbythepresidentofthe
United States or by the governor ofthis Stateasaday of general
thanksgiving, general fastingand prayer, or other general religious
observance. Thetermhalf-holiday includes theperiodfromnoonto
midnightofeachSaturdaywhichisnotaholiday. Whereacontract
byitstermsrequiresthepaymentofmoney,ortheperformanceofa
conditiononapublicholiday,suchpaymentmaybemadeorcondition
performed, onthenextbusinessdaysucceeding such holiday, with
thesameforceandeffectasifmadeorperformedinaccordancewith
the terms of the contract.
H u s b a n d a n d Wife. (See Married W o m e n . )
Insolvency. (See Assignments a n d Insolvency.)
Interest. Thelegal rateofinterest is fixed at 6 per cent. All
notes, bonds, contracts, securities, etc., whereby a greater rate is
reserved, or taken, oragreed for, are absolutelyvold,andthelender
canrecoverneitherprincipalnorinterestinsuchcases. butcorporationscannotpleadusury asadefense.
Usury, in certain cases, such
asloans on household furniture, etc., is also punishable as a misdemeanor by fine or imprisonment, or both.
State b a n k s h a v e b e e n
State,andholdthesamefornotexceeding fiveyears. Anassignment
forthebenefitofcreditorsmadeinthis Statebyaninsolventforeign
corporation, valld under the law of itsdomicile, will be recognized
placedonthe samefooting asnational banks as regards usury, and
asvalidhere. (Vanderpoelvs. Gorman,140 N. Y.,563, Jan.1894.)
No domestic or foreign corporation, except religious, charitable
orbenevolentcorporations,areauthorizedtodobusinessintheState
exchange,bonds,orothernegotiableinstruments,pledgedascollateral.
Itislawful to receive a n d collect, as compensationfor making such
o f N e w York unlessits namehas such word or words, abbreviation,
affixorprefix thereinor thereto as wouldclearly indicatethatit isa
corporationasdistinguished from a natural person,firmorco-partnership,orunlesssuchcorporationuses withitscorporatename, in
thisState,suchanaffixor prefix; this provision relates onlytocorporations authorized todo business inthis State,ortodomesticcor-
are thereby exempt from the extreme penalties mentioned above.
Ondemandloans of $5,000 and over, madewithwarehousereceipts,
bills of lading, certificates of stock, certificates of deposit, bills of
advances, any sum, tobe agreed uponinwriting by the parties to
thetransaction.
J u d g m e n t s . Judgmentsdocketedinacountyclerk'sofficebind,
a n d a r e a chargeupon, real property for ten years, which thejudgm e n t debtor has or acquires within that time. A judgmentispre-
sumedtobepaidaftertheexpirationoftwentyyearsfromthetime
whenthepartyrecoveringitwasfirstentitledtoamandatetoenforce
porationsformedsinceJanuary 1, 1912.
It. Confession or an offer ofjudgment can be made inan action.
Courts. Terms and Jurisdiction. The supreme court has unlimitedjurisdiction. Thereisacountycourtforeachcounty(except
New York County) having jurisdiction totheamountof$2,000, in
thoseunderseal, sixyears;recoveryofrealestate,uponjudgments
Revivor:
actionswhere thedefendantis, orifthereismorethanone, whereall
ofthedefendants are, residents ofthecounty. Justicesofthepeace
Married w o m a n m a y confess judgment.
Limitations of Suits.
Contracts, express or implied, except
ofcourtsofrecord andsealedinstruments, twenty years.
Partpaymentornewpromiseinwriting.
1434
BANKING A N D COMMERCIAL L A W S - N O R T H CAROLINA
MarriedWomenmaytake,hold,mortgage,andconveyrealand
personalproperty. A married w o m a n m a y contract with her husband,oranyotherperson,tothesameextent, with likeeffect,andin
thesameformasifunmarried,andsheandherseparateestateshall
bellablethereon, whetherthecontractrelatestoherseparateestate
orotherwise, andIninocaseshallachargeuponherseparateestatebe
necessary. Amarriedwomanmayconveyrealestatedirectlytoher
husband,andthehusbandmayconveydirectlytohiswife. Widows
haverightofdower. Marriedwomenmayconfessjudgment.
Mortgagesmustbeexecutedandrecordedsameasdeeds. Where
containingapowerofsale,maybeforeclosedbyanactionbroughtfor
S Y N O P S I S OF
T H E L A W S O F NORTHCAROLINA
the purpose, or without intervention of court (by advertisement.)
Thereisno redemptionunderamortgagesale. Chattel mortgages,
exceptwherethepossessionofthepropertymortgagedpassesto,and
RELATINGTO
isretainedby,themortgagee, mustbefiledforthwith, orarevoldas
againstcreditorsandinnocentpurchasers. Such mortgage ceasesto
bevalidinoneyear,exceptastothemortgagororhisrepresentatives,
unlessacopythereofisrefiledannuallywithacertificateofthemort-
gageeastotheamountunpaidthereon, and thiscopy, mortgage,
B A N K I N G A N D COMMERCIALUSAGES
andcertificateconstitutesarenewalofthemortgageforoneyear. All
mortgages onreal estatearetaxableattherateoffive mills oneach
dollaroftheamountoftheprincipaldebt,payableatthetimeofre-
cordingthemortgage.
Notes andBills o f E x c h a n g e . Negotiable instrumentsaredefinedby Chapter38 ofthe Consolidated Laws. Section20 provides
as follows: "Section 20. F o r m of Negotiable Instrument. An
Instrumentto be negotiable mustconformtothe following requirements: 1. Itmustbeinwritingandsignedbythemakerordrawer:
2. Mustcontainanunconditional promiseor order to pay a sum
certaininmoney; 3. M u s t b e payableondemand, oratafixed or
determinablefuturetime:4. Mustbepayabletoorder, ortobearer;
a n d 5 , where the instrumentisaddressed to a drawee, he m u s t b e
named or otherwise Indicated therein with reasonable certainty."
Itsnegotiabilityisnotaffected byaprovision which authorizesthe
saleof collateral securities in case the instrument be not paidat
maturity, or authorizes aconfessionof judgmentifthe instrument
benotpaldatmaturity; orwaivesthebenefitofanylawintendedfor
theadvantageor the protectionofthe obligor; or gives theholder
anelection to require something t o b e d o n e inlieu of payment of
money, orprovidesforthepaymentofcostsofcollectionoranattorney'sfeein case ofnon-paymentat maturity. Itis not necessary
thatpapershouldbemadepayableatabankoranyfixedplace. To
chargeindorser, notice of non-payment must at once begivento
him. T h e t i m e o f maturityisregulated asfollows by"Section 145.
T i m e of Maturity. Every negotiable instrument is payable at the
timefixed therein without grace. W h e n t h e day of maturity falls
upon Sunday, oraholiday, the instrument is payableon thenext
succeedingbusinessday. Instrumentsfallingdue or becoming payableonSaturdayaretobepresentedforpaymentonthenextsucceedingbusinessday, except that instruments payable on d e m a n d m a y ,
attheoptionoftheholder,bepresentedforpaymentbefore12o'clock,
noon, on Saturday, w h e n that entire day is not aholiday." (See
Holidays.)Personal Property L a w . By Chapter 571, Laws of 1911, in
effectSeptember 1, 1911, theLegislatureenactedalawinrelationto
salesofgoods. Thisenactmentisacodificationoftheentirelawasto
suchsalesand makes extensivechangesinthecommonlawuponthe
subject. "Acontracttosellorasaleofanygoodsorchosesinaction
ofthevalueof$50orupwardsshallnotbeenforceablebyactionunless
thebuyershall acceptpart ofthegoods or choses inaction, socontractedtobe sold or sold, and actually receive the same, or give
something in earnest to bind the contract, or in part payment, or
unlesssomenote or memoranduminwriting ofthecontract or sale
b e s i g n e d b y t h e party tobe charged orhisagentinthat behalf."
This does not apply to goods to be manufactured by the seller
especiallyfor thebuyerandnotsuitableforsaletoothersinordinary
courseofbusiness. Thestatutealsodefines Warranties, expressand
implied,etc.Thetransferofastockofgoodsinbulkisvoidasagainst creditors
unless they have five days' notice ofthe proposed transfer.
Probate L a w . (See Wills.)
Protest. (See Notes a n d Bills of Exchange.)
Sales o f G o o d s . (See PersonalProperty Law.)
Taxes. Lands m a y b e soldfor taxes w h e n t w o years delinquent.
Publicationofsaleismadefortwelveweeksinthecountypaper, and
twoyearsaftersaleareallowedforredemption, theownerhavingthe
righttoredeembypaying thepurchasemoneyandinterestat10per
cent per annum. Amortgagee (where the Instrumentisduly recorded) hasasimilarrightofredemptionanduponfilinganoticeof
hismortgage, itsdate, record,etc., with the properofficer,isentitled
tonoticebeforethetaxtitlecancutoffhismortgage. Specialprovisionsforsalesoflands fortaxesexistinseveralcitiesandcounties,
Incities, assessments for local improvements may be enforcedby
sales of the houses a n d lots assessed.
Wills. All persons, except Idiots, persons of unsound mind, and
Revised by A. B. ANDREWS. JR., Attorneyat Law,Raleigh.
(SeeCardinAttorneys' List.)
AccountsandClaims,Proofof. InanyactionInstitutedina
courtoftheStateuponanaccountforgoodssoldanddelivered
Itemizedstatementofsaidaccount,properlyverified,shallberecet
Inevidence,andshallbedeemedprimafacleevidenceofthe
nessof said account. All creditors ofthemakerofadeedof
orassignment must filewith theclerkofthesuperiorcourt&
mentunderoath, thattheamountclaimedisjustlydue,afters
ingallcreditsandoffsets. Creditorsofadecedentmustpresent
accounts and claims to the administrator orexecutorwithin
months after publicationofnotice ofadministration. Butif
failtodoso, and thepersonal representativehasnotdisburse
assets ofthe estate, the creditor may still recoverofthepr
representative. If he has disbursed the assets, the creditor
recoveroftheheirs,devisees,legatees,ornextofkin,whomay
receivedpropertyoftheintestate.
A c k n o w l e d g m e n t s a n d ProbateofDeeds. Everyconvenc
oflandmustbeacknowledgedorprovedandregisteredinthe
wherethelandlies. AlldeedsconveyinglandsinthisState,of
ofattorney,orotherinstrumentsrequiringregistration,maybep
or acknowledged (1) before any one ofthefollowingofficers
State: Ajusticeofthesupremecourt,ajudgeofthesaper
acommissionerofaffidavitsappointedbythegovernoroftha a
theclerkofthesupremecourt,aclerkofthesuperiorcourt,ad
clerkofthe superior court, aclerk ofthecriminalcourt
public, or ajusticeofthepeaceofthis State; or(2)beforea
ofthefollowingofficialsoftheUnitedStates,oftheDistrictof
bia, ofthe several states and territories oftheUnitedStatesA
countries under the dominion ofthe United Statesandoff
countries: Anyjudge ofa court ofrecord, anyclerkof
record,anynotarypublic, anymayororchiefmagistrateof
poratedtownorcity, anyambassador, minister, consul
vice-consulgeneral, or commercial agentoftheUnitedStates
executionofsuchinstrumentmaybeprovenoracknowledge
anyjusticeofthepeaceofanyStateorTerritoryoftheUnitedSa
butwhensuchacknowledgment orproofistakenbythelast
officerresiding outofthecountyinwhichtheinstrumentis
forregistration, theclerkofsomecourt ofrecordinthecan
suchjusticeresides mustattachhis certificate thatthejusticewa
thetimeanactingjusticeofthepeaceofsuchcounty.
AdmistrationofEstates. Lettersofadministrationaregra
bytheclerksofthesuperiorcourt: 1. Tothehusbandor
2. Tothenextofkinintheorderoftheirdegree,whentheys
differentdegrees;ifofequaldegree, tooneormoreofthemal
discretionof theclerk. 3. Tothemostcompetentcredit
residesintheStateandproveshisdebtonoathbeforetheces
thesuperiorcourt. 4. Toanyotherpersonlegallycompetent
resident of another state maynotact. 5. Theremaybe
countyapublicadministrator, tobeappointedbytheders
superior court, who may obtain letters of administrato
partyentitleddoes notapplyinsixmonths, oriftheperso
renounces. Whereno one applies within six months a
aredeemedtohaverenounced,andtheclerkmaynowappot
4
discreet person.
Thefollowing personsareincompetent toqualifyasad
tors,namely: Aminor, anon-resident, an alien,apersona
beenconvictedofafelonyoroneadjudgedbythejerkin
byreasonofdrunkenness, improvidentorwantofundersta
onewhorefusesorfailstogivethebondrequired.
Affidavitsmaybemadebeforetheclerksofthesupremecu
andsuperiorcourts, notariespublic,andjusticesofthepes
State:andalsobeforecommissionersofdeedsforNorthCa
andupward, andfemalesofsixteenyearsandupward, maybequeath
residinginotherstates,andclerksofanycourtofrecordfora
state. Apleadingmaybeverifiedbeforeanotarypublileto
oftheState, aswellasbeforetheotherofficersabovenamed
Aliens. Residentornon-residentallensmaytakerealpropert
anddeclaretheInstrumenttobehislastwill. Awillofanunmarried
w o m a n i s revoked by subsequent marriage. A devise or bequest
toawitnesswhosetestimonyisnecessarytoestablishthewillisvold.
Arbitration. There isno statute regulatingarbitration
agreementofthepartiesasexpressedinthe"submission"
Infants,maydevisetheirrealestatebywill. Malesofeighteenyears
personal estate. Wills must be subscribed by the testatorinthe
presenceoftwowitnesses,eachofwhommustsignhisnameatthe
endofthewill,attherequestofthetestator, whomustacknowledge
TheCodeofCivil Procedure regulatesthepracticeofprobating wills
Inthesurrogates'courtsoftheseveral countlesoftheState. Within
twoyearsaftertheprobateofawillanactionmaybebroughtinthe
supremecourttodeterminethevalidityoftheprobate,byanyperson
Interested inthewillorcodicil. Personswithinageof minority, of
unsoundmind,Imprisoned,orabsentfromtheStatemaybringaction
twoyearsafterdisabilityhasbeenremoved.
bypurchaseordescentorotheroperationoflaw.
Awardsareconstruedliberallyandwillnotbesetasidebecause
mistakeoflawunlessitappearsthatitwastheintentionto
accordingtolaw.
ArrestandBall. Thedefendantmaybearrestedincertala
prescribedbystatute.
Assignmentand Insolvency, Debtorsarenotpermitted
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Attachments. Awarrantofattachmentagainsttheprope
oneormoredefendantsinanactionmaybegranteduponthe
cationoftheplaintiffwhentheactionistorecoverasum1of
only,ordamagesforoneormoreofthefollowingcauses:
o
fcontractexpressorimplied. 2.Wrongfulconversionofpe
opeIr
yrtyotothe
property. 3. Anyinjurytorealorpersonalpr
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mentmaybegrantedtoaccompanythesummons,ofataf
BanksandBanking. Anynumberofpersons,betlessthat
afterthecommencementoftheaction.
three,mayassociatetoestablishbanksofdiscountandder
beknownascommercialbanks,andalsotoestablisho
anddeposit,tobeknownassavingsbanks toestaba
havingdepartmentsforbothclassesofbusiness The
I
talshallbenotlessthan$25,000,exceptatabankor
cityortownnotexceeding1,500inhabitan
ofnotlessthan$5,000,and5.000Inhabitantsofnotlessthat
Therecordsof
Incorporationshallbitants editi
recordedintheofficeofthesuperlobexecutedofthe
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BANKING AND COMMERCIAL L A W S - N O R T H CAROLINA
mence business until the corporation commission shall have ascer
tainedtheamountofmoneypaidinonaccountofcapital, the n a m e
a n d residence of each of itsdirectors, the a m o u n t ofcapital stock
o f w h i c h e a c h isthe owner i n g o o d faith, a n d w h e t h e r t h e b a n k has
complied with all the provisions of law. Whereupon a certificate
tothiseffect from the corporationcommissionis issuedtothebank.
Uponits Incorporationthebank mayexerciseallofsuch powersas
1435
Courts. T h e supreme courtisthe appellatecourt oflast resort.
It sits twice a year. The superior courts have exclusive original
Jurisdiction ofallcivil actions, whereof original jurisdiction isnot
given to s o m e othercourt, a n d they have appellate jurisdiction of
allcasesdeterminedbyasuperiorcourtclerkorajusticeofthepeace.
Theysittwiceayearineverycounty,andinnearlyallofthecounties
oftener. Clerksofthesuperiorcourthavejurisdictionoftheprobate
are necessary to carry on the business of banking, discounting or
negotiatingusurynotes,drafts,bills ofexchangeandotherevidences
o f d e b t b y receivingdeposits, by buying and selling exchanges, by
ofdeeds,grantingletterstestamentaryandofadministration,appoint-
loaning money onpersonal security orreal property. I t m a y t a k e
appointmentandremovaloftrustees. Theirofficesarealwaysopen.
andreceiveanyinterestatthelegalrateuponitsloans. I f m a y p u r chase,holdand conveyreal estate,suchas maybenecessaryforthe
convenient transaction of its business, which investment shall not
m e n t a n d removal of guardians, apprenticing orphans, auditing of
administration a n d guardian, receivers' a n d trustees' accounts, the
Justices of the peace have original jurisdiction of all civil actions
foundedoncontracts,whenthesumdemandeddoesnotexceed$200,
andwhenthetitletorealestatedoesnotcomeinto thecontroversy.
exceed25percentofitspaid-incapitalstockandpermanentsurplus,
They also have jurisdictionconcurrent with the superior courtsof
s u c h a s i s mortgagedto ittosecureloans, suchasis conveyed toit
Insatisfactorydeedsandsuchasitacquiresbysaleonanyexecution
initsfavor. At least 50 p e r c e n t o f t h e capital stock must b e p a i d
civilactionsnotfoundedoncontract, whereinthe valueofproperty
Incontroversydoesnotexceed$50.
D a y s o f G r a c e . Allbillsofexchangepayablewithinthestate,at
sight,inwhich there isanexpressstipulationtothat effect, a n d not
inbeforeitcommencesbusiness, andtheremaindermustbepaidin
monthly installments of at least 10 percent, the payment ofeach
installment to be certified to the corporation commission.ssion. Provided
no bank shall be authorized to c o m m e n c e business with less than
paid in capital of $5,000. T h e delinquent stockholders m a y be
soldoutby thebank. Thetransferofnostock shallbevalidagainst
t h e b a n k s o long as the registered holder thereof is a director ofthe
bank. T h e stockholders shall be individually responsible, a n d not
one for another, for all contracts o f t h e bank to the extent of the
parvalue of their stock in addition to the amount invested in such
shares.
Bills of E x c h a n g e a n d P r o m i s s o r y Notes. Protest is not
requiredinordertoholdthemakerorendorserofapromissorynote.
ortheacceptor ofabill ofexchange,butitisnecessary to holdthe
drawerorendorserofthebill ofexchange.
Unless thecontrarybeplainlyexpressed, the endorser ofanybill,
negotiable bond, or promissory note is liable as a surety, a n d n o
demanduponthe makeris necessaryprevious tobringinganaction
against the endorser. But thisdoes notapplytobills ofexchange,
whether Inlandorforeign, n o r t o n o t e s w h i c h are m a d e a n d b e c o m e
operativeascontractsbeyondthelimitsoftheState,nortoendorsementmade out ofthis State. Itappllesinthose cases only where
not only the endorsementin question, but all antecedent endorsements were made within this State. A note signed and endorsed
Inanotherstate, but which was neverdelivered untilnegotiatedin
this Stateis governed by the l a w of this State, a n d underit, no
demand, protest, or notice ofnon-paymentis required to bind the
endorser.
Allbonds,bills,andnotesformoneywith orwithoutseal,
andexpressed or notto be payable to order or forvalue received,
arenegotiableinlike manner, asareinlandbills ofexchange by cus-
tomofmerchantsofEngland. January 1st, January19th, February
22d,April12th, M a y 10th, May20th, July4th. firstMondayinSeptember, and the day appointed bythe governor asathanksgiving
day, Tuesday after the first Mondayin November when a general
electionisheld,andDecember25thofeachandeveryyear,arepublic
holidays,andwheneveranysuchholidayshallfalluponSundaythe
Mondayfollowingshallbeapublicholiday, andpapersdueonsuch
SundaysorMondaysshallbepayableonthenextsucceedingbusiness
day. Thereisno differencebetween Saturdayandanyotherbusiness
d a y s o f a r a s negotiable instruments are concerned. W h e n t h e d a t e
ofmaturity falls upon Sunday or a legal holiday, the instrument is
p a y a b l e o n t h e nextsucceeding business day.
D e m a n d paper falling
d u e o n a Saturday not aholiday may bepresented before12 noon
The Negotiable Instruments Law, which is the same as the N e w
Yorkstatute, was adopted in 1899, andis chapter 54 (Sections2151
to 2346) of Revisal of 1905.
C l a i m a n d Delivery. In an action to recoverthe possessionof
personalpropertytheplaintiff may, atthetimeofissuing summons,
oratany time beforeanswer, claimtheimmediatedelivery ofsuch
property. Hemustfileanaffidavitshowing: 1. Thattheplaintiff
istheownerof the property claimed (particularlydescribing it)or
islawfullyentitledtothepossessionthereof. 2. Thattheproperty
iswrongfully detained by the defendant. 3. Thealleged causeof
thedetention thereof. 4. That the property has not been taken
foratax,assessmentor finepursuanttostatute, orseizedunderan
executionorattachmentagainstthe propertyof theplainttiff, or, if
soseized, thatitisexemptby statutefrom suchseizure. 5. The
actualvalueoftheproperty. Theplaintiffmustgiveanundertaking
withsuretiesindoublethevalueoftheproperty,foritsreturntothe
defendant, if return thereof be adjudged, and for damages. The
defendantmayretainthepropertytoabidetheeventoftheaction
ongivingbondtodeliverthepropertytotheplaintiffandpaydamages, ifitbesoadjudged.
Conditional Sales. All conditionalsalesofpersonalpropertyin
whichthetitle isretainedby the bargainormustbereducedtowrit
ingandregisteredinthesame manner,forthesamefee,andwiththe
sameeffect, asisprovided forchattel mortgages;otherwise theyare
Inoperativeas against creditors and purchasers, for value, inso far
otherwise, shallbeentitledtodaysofgraceasthesameareallowed
bythecustomsofmerchantsinforeignbillsofexchangepayableat
theexpirationofacertainperiodafterdateonsight: Provided that
nodaysofgraceshallbeallowedonanybillofexchange,promissory
note,ordraftpayableondemand.
D e e d s . AscrollisasufficientsealtoadeedinNorth Carolina.
W h e n real estateshall be conveyed to anyperson, the s a m e shall
b e h e l d a n d construed to b e a conveyanceinfee, whether the word
"heirs" shall be used ornot, unless such conveyance shall in plain
andexpressedwords,showoritshallbeplainlyintended b y t h e conveyanceor s o m e part thereof, that the grantormeantto c o n v e y a n
estateof less dignity.
I f t h e deed conveys husband'slands,it should contain aclause
releasingdowerbythewife, althoughhersignatureand acknowledgm e n t alone bars her right of dower. (See Acknowledgments a n d
ProbateofDeeds.)
Depositions. A n y party inacivil actionor special proceedings
maytake the depositions of persons whose evidence he maydesire
touse. Writtennoticeofthe timeandplaceoftakingadeposition,
specifyingthe n a m e ofthe witness, m u s t b e servedby the party at
w h o s e instanceitis taken, u p o n theadverse party orhis attorney.
T h e time for serving such notice shall be as follows: Three entire
days w h e n the party notified resides within tenmiles of theplace
wherethedeposition isto be taken;inother cases, where the party
notifiedresidesintheState,onedaymoreforeachadditionaltwenty
miles, except where the deposition is to be taken within ten miles
o f a r a i l w a y in running operationintheState, w h e n one d a y only
shallbegivenforevery100 milesof the railway to theplacewhere
thedeposition is to be taken. Where adeposition is to be taken
beyond the State, ten days' notice of the taking thereof shall be
given,whenthepartywhosedepositionistobetakenresideswithin
tenmilesofarallwayconnectingwithalineofrailwaywithintwenty
milesoftheplacewhere the personnotified resides. Inother cases,
wherethereareno rallways runningasabovespecified,twentydays'
noticeshallbegiven.
D e s c e n t a n d Distribution. W h e n a n y person shall die seized
ofaninheritance,nothavingdevisedthesame,Itshalldescendaccording to the following rules: 1. Real estate lineally descends. 2.
Females shall inherit equally with males, a n d younger with older
children. 3. The linealdescendants shall representtheirancestors.
4. On the fallure of lineal descendants, a n d w h e n the inheritance
hasbeentransmitted b y d e s c e n t o r d e r i v e d b y gift, devise or settlementfromanancestor, theestateshalldescendto the nextcollateral
relations of the person last seized, w h o were of the blood of such
ancestor. 5. On the failure of lineal descendants, and when the
Inheritancehasnotbeensotransmittedordevised,orwhentheblood
of such ancestorsis extinct, the estate passes to the next collateral
relations of the person last seized, 6. Collateral relations of the
halfbloodshallinherit equally with thoseofthewholeblood. 7. A
persondying, withoutIssue, and leaving no brother or sister, or
Issueofsuch,thefather,ifliving,shallinherit,andifnot,themother.
W h e n a person shall die leaving no heirs. the w i d o w shall be
d e e m e d his heir. 9. Illegitimate children shall inherit f r o m their
mother. 10. Illegitimate children m a y inherit from each other.
Whenanillegitimate child shall die without issue, his mother shall
Inheritfrom him. 11. The personal estateofa deceasedperson,in
caseof intestacy, shall be distributed in the following manner: 1.
I f n o t m o r e than two children, one-third to the w i d o w a n d all the
8.
residueequallyamongthechildrenandsuchpersonsaslegallyrepres e n t s u c h p e r s o n s w h o m a y b e d e a d . 2. I f t h e r e a r e m o r e t h a n t w o
children, thewidowandallthechildrensharealike. 3. Iftherebe
nochildnorlegalrepresentative ofadeceasedchild,then one-halfof
theestate to the widow and the residue equally to the next ofkin
t o t h e intestate, w h o are of equal degree, a n d those w h o represent
them. 4. Ifthere be nowidow, thenequally among the children
astheyreservethe titleinthevendor.
a n d t h e legal representatives ofthe deceased children. 5. I f t h e r e
be neither w i d o w nor children n o r a n y legal representatives of the
Corporations. Maybeformed, by anynumberofpersons, not
lessthanthree, under the general statute, either with orwithout
personal liability, by filing and recording aplan of incorporation
secretary
in theofficeofthe
duly signed,
orarticlesofincorporation,
and
ofstate. Thereupon the secretary
of State
shall record them
a n d t h o s e w h o l e g a l l y represent them. 6. If, i n t h e lifetimeofthe
father, anyofhischildrenshalldieintestatewithoutwifeorchildren,
sendacopyofthesametotheclerkofthesuperiorcourtofthecounty
ofthemother, any ofhischildren shalldieintestate, without wife
orchildren, everybrother or sister, andtherepresentatives ofthem,
wheretheoffice ofthe corporation islocated, who shall record the
sameinhisoffice. Charters of corporations formed under general
lawsmaybeamended by proceedings before the secretaryofstate
withwhomthe plan ofincorporation was filed, provided there be
nochangeofthe businessincorporated. Theymayalsobecreated
b y a special act of the legislature.
Domesticcorporations may hold, purchase and convey real and
personalestate,withoutlimit,inandoutoftheestate,andmaytake
suchpropertybydeviseorbequest. Anycorporationcreatedbyan
otherstateorforeigngovernmentmayacquirebydeviseorotherwise,
andmayhold, mortgage,leaseandconveyrealestateinthis State,
"forthepurposeofprosecutingitsbusinessor objects, orsuchreal
estateasitmayacquirebywayofmortgageorotherwiseinthepaymentofdebts," providedtheforeigngovernmentunderwhoselaws
suchcorporationwas created be not at warwith the United States
atthetimeofpurchasing suchrealestate.
ForeignCorporations. EveryforeigncorporationbeforebeingpermittedtodobusinessintheStateofNorthCarolina(railroad,banking, Insurance, expressandtelegraph companiesexcepted) shallfile
intheofficeofthesecretaryofstateacopyofitscharter,orarticles
ofagreement,attestedbyitspresidentandsecretary, underitscorporateseal, and astatementattestedinlike manneroftheamount
ofitscapitalstockauthorized,theamountactuallyissued, theprincipalofficeinthis State, thenameoftheagentinchargeofsuch
office, thecharacterofthebusinesswhichittransactsandthenames
a n d postoffice addresses of its officers a n d directors.
A n d such cor-
porationshall pay to the secretaryofstate, for theuseoftheState,
tencentsforevery $1,000 ofthe total amountofthecapital stock
authorizedtobeissuedbysuchcorporation,butinnocaselessthan
$10normorethan$100. Everycorporationfallingtocomplywith
theprovisions of this section shall forfeit to the State $500, t o b e
recoveredwith costsin an action tobe prosecutedbytheattorneygeneral, who shall prosecute such actions wheneverit shall appear
thatthissectionhasbeenviolated. Actsof1903, page 1124.
children, then thenextkinoftheintestatewho are inequal degree
thenthefathershallbeentitledtoallofthepersonalpropertyof such
deceasedchild,but, ifafterthedeathofthefatherandinthelifetime
shall have an equal share with the mother of the deceased child.
7. Ifthere be no child nor legal representative o f a d e c e a s e d child
noranyofthenextkinoftheintestate,thenthewidow, iftherebe
one, shall be entitledto all o f t h e personal estate of such intestate.
8. I f a n y married womandieintestate leaving o n e c h i l d a n d a h u s -
band,her personal estate shallbe equally dividedbetween the child
a n d t h e h u s b a n d . Ifsheleave m o r e t h a n one childand a h u s b a n d ,
herpersonalestateshallbedividedinequal portionsandthe husband
shall receive a child's part: Provided, However, that this act shall
n o t a p p l y where t h e h u s b a n d o f t h e deceasedwomanisfather ofall
the children, or theirdescendantsofhisdeceased wife.
D e t i n u e . (SeeClaim a n d Delivery.)
D o w e r . Thewifeis entitled to one-thirdinvalue ofall the land
of which her husband was seized during coverture, including the
dwellinghouseinwhichherhusnandusuallyresided,forherlifetime.
Dower, and all other rights in a husband's estate, are forfeitedby
elopementwithanadulterer,byabandonmentwithoutjustcause,and
byadivorceavinculo,ordivorceamensaetthorograntedatthesuit
ofthehusband. A w i f e w h o murdersherhusbandforfeitsherright
ofdower. (See Administration ofEstates.)
Executions. A t a n y time withinthree years after docketing of
Judgment, oraftertheissueofthelastexecution,judgmentsmaybe
enforcedbyexecutionwithoutapplicationtocourt,bythejudgment
creditor, orincaseofhisdeath byhis personal representativeduly
appointed; after three yearsfrom thedocketing ordateofissue of
last execution, only by leaveofcourt, u p o n satisfactory proof that
the judgment has not been paid. Executions issuing from the
superior court m a y i s s u e immediately after the term at whichjudgm e n t w a s rendered a n d shall be returnable to the next term of the
courtbeginning not less than forty days after the issuing thereof.
Issuingfrom ajustice'scourt they are returnablein sixtydays.
Exemptions. Articlesofpersonalpropertynottoexceedthevalue
of$500,andrealestate notto exceed $1,000 invalue, to beselected
1436
BANKING
A N D
COMMERCIAL L A W S -
b y t h e owner thereof, and t o b e valuedby threeswornappraisers,
providedhebearesidentoftheState. Thehomesteadisnotexempt
from liability tobesoldforcontractmade for the purchaseofthe
same, norfor taxes. T h e w i d o w a n d infant childrenareentitledto
thehomesteaduntiltheyoungestchildreachestheageoftwenty-one
years. The statute of limitations shall not run against any judgmentowingbytheownerofahomesteadorhomesteadinterest,duringtheexistence ofsuch homestead orhomestead interest, whether
thesamehasbeenorshallhereafterbeallowed,assigned,orsetapart
underexecutionorotherwise. Theallottedhomesteadshallbeexempt
fromlevysolongasownedandoccupiedbythehomesteaderorbyany
oneforhim, but when conveyed by him in the modeauthorizedby
theconstitution (article ten, sectioneight), the exemption thereof
ceasesastoliensattachingpriortotheconveyance. Thehomestead
right being indestructible, the homesteader w h o has conveyed his
allotedhomestead,canhaveanotherallotted,andasoftenasmaybe
necessary: Provided, thisactshallnothaveany retroactiveeffect.
Thelawofpartitionhasbeenchangedsothatlandsheldincommon
m a y b e partitioned attheinstance ofajudgmentcreditor, inorder
thathomestead m a y b e allotted, and mineral Interests and timber
Interests m a y be partitioned separate from theland interests.
ForeignCorporations. (SeeCorporations.)
Fraud. Alienations, which m a y be contrived forfraud, shallbe
d e e m e d a n d taken tobeutterly void and o f n o effect. Every conveyance,ofanylandsorgoods, ifthesamebemadewiththeactual
intentinfacttodefraudsuchpersonashathpurchased, orshallpurchase, ortodefraudsuchasshallpurchaseany rentorprofitoutof
thesame, shallbedeemedutterly void.
FraudulentSales. Thesaleinbulk oralargepart ofthe whole
ofastockofmerchandise, otherwise thanintheordinary course of
tradeandin regularand usual prosecution of the seller's business,
shallbeprimafacleevidenceoffraud,andvoidagainstthecreditors
ofthe seller, unlessthe seller, at least sevendays beforethesame
makeaninventory showingthequantityand, sofaraspossible, the
costpricetothesellerofsucharticlesincludedinthesale, and shall
withinsaidtimenotifythecreditorsoftheproposedsale,andtheprice,
termsandconditions thereof, provided, thatifthe owner orowners
ofsaidstockofgoodsshallatany timebeforethesaidsaleexecute
agoodandsufficentbondtoatrusteethereinnamed,inanamount
equaltotheactualcashvalueofsaidstockofgoods,andconditional
thatthesellerofsaidstockofgoods will apply the proceeds ofsaid
sale, subject tothe right oftheowner or owners to retain therefrom
thepersonal property exemption or exemptions as are allowedby
law, sofarasitwill goin paymentofdebts actually owing by said
owner or owners, then the provisions of this act shall not apply.
FraudulentTrading. Thatifany personor persons shalltransact
business as a trader or merchant, with the addition of the words
"factor," "agent," "and company" or " a n d Co." or shall conduct
suchbusinessunderanynameofstyleotherthanhisown, exceptin
caseofcorporation, andfalltodisclose thenamesofhisprincipalor
partnerbyasign placed conspicicuously at the place wherein such
businessisconducted, or ifany marriedwoman shall conduct such
business through herhusbandoranyotheragent, orifany husband
oragentofany marriedwoman shallconduct such Lusiness forher
withoutdisplaying the Christian n a m e o f such married w o m a n , and
the factthatsheisa femeconvert, b y a s i g n placed conspicuously
attheplacewhereinsuchbusinessisconducted, thenalltheproperty
stockofgoodsandmerchandiseandchosesinactionpurchased, used
andcontracted in the court of such business shall, as to creditors,
beliable for the debts contractedin the course ofsuch businessby
thepersoninchargeofsame. Anymarriedwomanconductingbusinessasaforesaldwithoutcomplyingwith theaboveshall forallpurposesbedeemedandtreated
toalldebtscontractedinthecourseof
suchhbusinessasafree-trader. Nobusinesscanbelegallyconducted
ortransactedinthisStatebyanypersonorpersonsunderanyassumed
name, or under any designation, name or styleother than the real
nameornamesoftheindividualorindividualsowning, conducting or
transacting the same, unless such personor persons shall file in the
officeofthe clerk ofthe superior court ofthe county or counties in
which such business is conducted a certificate duly acknowledged
settingforththenameunder which suchbusiness is to be conducted
ortransacted, andthetrueandrealnameornamesofthepersonor
personsowning,conducting orcarryingonthesame,withthehome
and post office address or addresses of said person or persons; but
the foregoing shallnot apply to the selling ofgoods by sample or
through traveling agents or salesmen, or by orders forwarded by
purchasersthrough the mails. Failureto comply isamisdemeanor.
Frauds, Statute of. No action shall be brought whereby to
chargeanexecutororadministratoruponaspecialpromisetoanswer
damagesoutofhis ownestate orto chargeany defendant upona
specialpromisetoanswerthedebt,defaultformiscarriage, ofanother
personunlesstheagreementuponwhichsuchactionshallbebrought
orsomememorandumornotethereofshallbeinwritingandsigned
bythepartychargedtherewith, orsomeotherperson thereuntoby
h i m lawfullyauthorized. Allcontracts forthesaleofland, andall
leasesandcontractsforleasinglandforthepurposesofdigginggold
orotherminerals, orformininggenerally, ofwhateverduration, and
allotherleasesandcontractsforleasinglands, exceedinginduration
N O R T H CAROLINA
elapsesince the date ofthelast execution thejudgment becomes
dormant, andexecutionshallonlybe issuedthereonbyleaveofthe
court upon motion, with personal notice totheadverseparty,and
after satisfactory proof that the judgment or some part thereof
remains unsatisfied. Transcripts of judgments obtained froms
Justiceofthepeacemaybedocketedinthesuperiorcourt,andfrom
thattimethejudgmentshallbeajudgmentofthesuperiorcourtin
allrespects. Alljudgmentsrenderedatatermofthesuperiorcourt
beardate as of the firstday ofthe term, and thereisnopriority
between them in the countyof their rendition. Atranscriptofa
docketed judgmentproperly certifiedby the clerk, maybefiledin
theclerk'sofficeofanyothercounty,whenitbecomesallenuponthe
debtor's realestateinthatcountyfromthedateofthedocketingin
such county. Judgments ofthesupremecourtmaybedocketedin
thesuperiorcourtofanycountyoftheState,andwhensodocketed
theirlienshallbethesameasjudgmentsofthesuperiorcourt. Judg
mentsofnocourtconstitutealienuponthepersonalpropertybelore
levy.
Limitations. Withintenyears: 1. Anactionuponajudgment
ordecreeofanycourtofthisState,oroftheUnitedStates,orofany
stateorterritorythereof,fromthedateofrenditionofsaldjudgment
ordecree. Butnosuchactionshallbebroughtmorethanonce,nor
have the effect to continue the lien of the original judgment. 2.
A n a c t i o n u p o n a sealed instrument against the principal thereto.
Withinseven years: 1. An action on a judgment renderedbya
Justiceofthe peace, fromthedatethereof, 2. Byanycreditorof
adeceasedpersonagainsthispersonalorrealrepresentative,within
sevenyearsnetnextafterthe qualificationoftheexecutororadminIstrator, andhis makingtheadvertisement requiredbylawforcred
itorsofthedeceasedtopresenttheirclaims,wherenopersonalservice
ofsuchnotice inwritingismadeuponthecreditor,andthecreditor,
thusbarredofarecoveryagainsttherepresentativeofanyprincipal
debtorshallalso bebarredofarecoveryagainstanysuretyofsuch
debt. Within six years: 1. An action uponthe officialbondof
anypublicofficer. 2. An action againstanyexecutor, administrator, collector, or guardianonhis officialbond,withinsixyearsafter
theauditingofhisfinalaccounts, bytheproperofficer,andthefiling
of such audited accounts as requiredby law. Withinthreeyears
1. Anactionuponacontract, obligation, orliabilityarisingoutof
acontract,expressorimplied,exceptthosementionedintheprecedi n g sections.
MarriedWomen. Amarriedwomanmayholdproperty,both
realandpersonal, freefrom thedebts, obligations, orengagements
ofher husband. A married w o m a n i s authorized to contractand
dealsoastoaffectherrealandpersonalpropertyinthesamemanner
andwiththesameeffectasifshewereunmarried,butnoconveyance
ofherreal estateshallbevalid unless madewiththewrittenassent
ofherhusbandasprovidedbysectionsixofarticle10oftheConsti
tution, andherprivy examinationas totheexecutionofthesame
takenandcertified as n o w required by law. Thereal orpersonas
propertyofanyfemaleinthisstate,acquiredeitherbeforeorafter
andmaybedevisedor
herhusband, may be conveyed herasifshe wereunmarried. No
man, by marriage, shall incuranyliabilityforanydebtsowingof
contractsmade,orforwrongdone, byhiswifebeforethemarriage.
Marriedmenwhosewivesarelunaticsmayselltheirrealestate. The
deedmadeunderitconveysmerelytherightofthehusband,reserving
totheinsanewifeherrightofdower,butapparentlynotherhome
stead. Married womenmayconfess judgment. Theearningsofa
marriedwomanby virtueofanycontractforherpersonalservices,
andanydamagesforpersonalinjuries, orothertortsustainedbyher
marriage,shallremainthesoleandseparatepropertyofsuchfemale,
bequeathed,and,withthewrittenconsentof
canberecoveredbyher suing alone, andsuchearnings orrecovery
shallbehersoleandseparatepropertyasfullyasifshehadremained
unmarried.
Mortgages. Mortgagesanddeedsoftrustarerequiredtoberegis
tered,andareonlyvalidasagainstcreditorsorpurchasersforavain
able considerationfrom thedate ofregistration,but amortgageis
valid against the maker without registration. Mortgagesofincor
poratecompaniesupontheirpropertyorearnings,whetherinbonds
orotherwise, hereafter Issued, shallnothavepowertoexemptthe
propertyorearningsofsuchcorporations,fromexecutionforthesal
isfactionofanyjudgmentobtainedincourtsoftheStateagainstsuch
corporation, forlaborperformednorforcostscommittedbysuch
corporation.itsagentsoremployees, wherebyanypersoniskilled
orany personor property injured. When there are twoormore
mortgageesortrusteesthesurvivorisauthorizedtoexecutepowerof
saleinthemortgageordeedoftrust,andsoistheexecutororadmia
istratorofadeceasedmortgage. Whenthemortgageordeedoftrust
contains apowerofsale,it maybeexercisedafterthedeathofthe
mortgagor.
Incaseofsaleofrealestateindeedoftrustormortgage
thepremisesmustbedescribedinthenoticeofsalesubsequentlyaf
theyaredescribedinthedeedoftrustormortgage,andthesalemay
bemadethroughanagentorattorneyforthatpurpose,appointed
orallyorinwriting, whetherthemortgageeortrusteebepresentof
not. Deedsoftrust, mortgages,andsimilarsalesshallberegulated
astotimeofadvertisementandcostsofthesame,bythesamestatute
which regulatessalesunderexecution.
Negotiable Instruments. (SeeBillsofExchange.)
threeyears from the making thereof, shall be void unless put intc
writingandsignedbythepartytobechargedtherewith, orbysome
personbyhim lawfullyauthorized thereto. No acknowledgmentor
promiseshallbereceivedasevidenceofaneworcontinuingcontract,
wherebytotakethecaseoutoftheoperationofthestatuteoflimitations,unless thesamebecontained insomewritingsigned by the
partytobecharged thereby. But this shallnotalter the effect of
tionofdeedsorotheractsrequiringasealmustbeunderaseal. It
attachmenttohold,andwhereathirdpartymayoweorhavebelong-
StayofExecution. Judgmentinajustice'scourtontymaybe
stayeduponsecuritygiven.Ifaskedforatthetrial,asfollows: For
anypaymentofprincipalorinterest.
Garnishee Process. Process m a y issue upon judgment and in
ingtodebtor.
Holidays. January 1. January 19, February 22, April 12, M a y
10, May20, July4, firstMondayinSeptemberandadayappointed
bythegovernorasadayofthanksgiving. TuesdayafterfirstMonday
o f N o v e m b e r when a general electionis held, and December 25.
Andwhenever any such holiday shall fallon Sunday, the M o n d a y
followingshallbethepublicholiday. W h e n thedayofmaturityof
anotefallson Sundayoraholiday, thenoteispayableonthenext
succeeding business day. (See Bills of Exchange and Promissory
Notes.)
Homestead. (SeeExemptions.)
H u s b a n d a n d W i f e . (SeeMarriedWomen.)
Interest. Thelegalrateofinterestis6percent. Taking, recelvIng, orcharging agreaterrate, eitherbeforeoraftertheinterestmay
accrue, when knowingly done, shall cause a forfeiture of the entire
Interest. Thepersonorcorporationby whomitispaidmayrecover
backtwicetheamountofinterestpaidinthenatureofanactionfor
debt. commenced within two years after payment. In any action
brought to recover upon the note or other evidence of debt, the
defendant m a y plead by w a y of counterclaim twice t h e a m o u n t o f
Interestpald, andalso the forfeitureoftheentire interest. No person shall recover any costs w h o m a y endeavor to recover u p o n a
usurious contract
Judgments. Judgmentsofthesuperiorcourt areliens uponthe
landsand interests ofadebtor within the county from thedate of
docketing the sameforthespace oftenyears, Ifthreeyears shall
Partnership. Apartnershipdoing business under anassumed
namemustfilewiththeClerkoftheSuperiorCourtthenamesofthe
partners.
PowersofAttorney. Powersofattorneyauthorizingtheexecu
shouldberecordedalongwiththedeed.
anysumnotexceedingtwenty-fivedollars, onemonth:foranysum
abovetwenty-fiveandnotexceedingfiftydollars, threemonths:for
anysumoverfiftydollarsandnotexceedingonehundreddoliars,four
months: foranysumaboveonehundreddollars, sixmonths. No
stayisalloweduponasuituponaformerjudgment
Supplementary Proceedings. Uponaraffidavitshowing: 1
Thereturnoftheexecutioninwholeorinpart. 2. Thewantof
knownpropertyllabletoexecution. 3. Theexistenceofproperty
belongingtothejudgmentdebtorunaffectedbyanylienandIncapatie
oflevy. 4. Theexistenceofproperty,chosesinaction,andthings
Invalue(belongingtothejudgmentdebtor) unaffectedbyany den.
andincapableoflevy,anordermaybeobtainedfortheexaraidatos
ofthejudgmentdebtorconcerninghisproperty. Supplementarypra
ceedingmaylikewisebeInstitutedbeforethereturnoftheexecation
uponanaffidavitshowingtheforegoingfacts,andalsothattheJa
mentdebtorhaspropertywhichheunjustlyrefusestoapplytothe
satisfactionofthejudgment. Thirdpartiesmayalsobeexa
Ifitappearsbyaffidavitthattheyowethedefendantmorethan
Witnessesmaybeexamined. Propertydiscoveredmaybeapre
totheexecution. Areceivermaybeappointed, andtransfersby
debtors enjoined.
Taxes. ThellenoftheState,county,andmunicipaltaxes,levied
suhtees
taxesonthe1stdayofJuneannually. AllpersonalpropertyAlltaxe
totaxationshallbeliabletobeseizedandsoldfortaxes.
aredueonthefirstMondayofSeptemberineachyear.Iftheparty
chargedhaspersonalpropertyofthevaluetothetaxchargedagainst
forallpurposesineachyearattachestoallpropertysubjecttos
B A N K I N G
A N D
C O M M E R C I A L
him, the sheriff ortaxcollectorshall seizeandsellthesame a s h e i s
requiredtosellotherpropertyunderexecution. Ifthepartycharged
h a s n o t personal property to be f o u n d i n the county, of sufficient
value, therealestateofthedelinquent shallbelevieduponandsold.
Wills. Nolastwillortestamentshallbegoodorsufficientinlaw
toconvey or give an estate, real or personal, unless such last will
shallhavebeen writteninthetestator's lifetime, a n d s i g n e d b y h i m ,
o r b y s o m e other person in his presence a n d by his direction. All
wills must be subscribed in his presence by two witnesses at least.
No one o f t h e m shall be interested in the devise or bequest of the
saidestate, except as hereinafter provided. Or, unless, suchlast will
a n d testament be found a m o n g the valuable papers and effects of
a n y deceased person, or shallhave been lodged in the hands o f a
personfor safekeeping, a n d t h e sameshall be inthehandwritingof
suchdeceased person, with his n a m e subscribed thereto, or inserted
in s o m e part of such will; a n d ifsuch handwriting shall be proved
by three credible witnesses, w h o verily believe such will and every
part thereofis inthe handwriting ofthe personwhosewillit appears
t o b e , then such will shallbe sufficient to give a n d convey real and
personal estate. No person shall be capable of disposing of real
or personal estateby will, nor be allowed to qualify as executor of
a w i l l until he shall have attained the ageoftwenty-one years. A
married woman owning real or personal property may dispose of
the s a m e by will.
L A W S -
N O R T H
D A K O T A
1437
A n e x e c u t o r oradministrator must beovertwenty-oneyears ofage.
Anadministratorcannotbeasurviving partner. A m a r r i e d w o m a n
cannot be appointed administratrix. B o n d must be given in such
sumasthecourt requires. Debtsarepaidasfollows: 1,expensesof
administration; 2, last sickness a n d funeral; 3, allowance of family
inexcess of exemptproperty; 4, debts having preference under the
lawsoftheUnitedStates;5,debtswhichareliensuponspecificproper-
ty,intheorderoftheirpriority, totheextentofthepropertysubject
tothelien;6, all otherdemands, which includesdeficiencyonsecured
debtsnotpaidbysaleofthepropertyheldassecurity. Noticemust
b e g i v e n o f the time ofpresenting claims, which m u s t b e presented
withinsix months afternoticeif theestate exceeds $5,000, a n d four
monthswhenitdoesnot. Exemptpropertyissetaparttothefamily.
Affidavits. Anaffidavitmaybemadebeforeanypersonauthorized to administer an oath.
Aliensmayacquire,hold,andtransferrealestatesameascitizens.
Arbitration. Parties m a y submit controversies to arbitration
under statutory provision.
Arrest. Nopersoncanbeimprisonedfordebtunlessuponrefusal
todeliveruphisestateforthebenefitofhiscreditorsinsuch manner
asshallbeprovidedbylaw, orincasesoftort,orwherethereisastrong
presumptionoffraud. No femalecan bearrestedexcept forinjury
toperson,property,orcharacter. Anorderofarrestmaybegranted
by the order of the courtin which the action is brought, w h e n it
appears by affidavit that the caseis o n e o f t h o s e i n which arrestis
provided for.
Attachment. Inactionsforrecoveryofmoneyonly,andforthe
wrongfulconversionofpersonalproperty,andfordamagesarisingout
ofcontract, orotherwise, attachment mayissueagainsttheproperty
ofthedefendant,incases providedbylaw. Anactionmaybecom-
mencedbeforetheclaimisdue,andpropertyofthedefendantattached
whenhehasassignedordisposedofhispropertywithintenttodefraud
hiscreditors, orisabouttodoso. Inanactionto recoverpurchase
money for personal property sold to the defendant an attachment
m a y b e issuedand levied upon such property. (See Garnishment.)
Banks. Associationsforcarryingonthebusinessofbankingmay
beformedbyanynumberofnaturalpersonsnotlessthanthree, twoS Y N O P S I S OF
T H E L A W S OF N O R T H D
A
thirdsofwhom shallberesidentsoftheState.
Thepersons unitingtoformsuchanorganizationshall,undertheir
hands, m a k e an organization certificate, specifying:
1. Thenameassumedbysuchassociation, whichshallnotbethat
o f a n y otherbankin the State.
2. T h e p l a c e where the business ofdiscount and deposit is t o b e
carried o n .
3. T h e a m o u n t of capital stock a n d the a m o u n t into which ite
sharesaretobedivided.
4. T h e n a m e s andplacesofresidenceoftheshareholdersandthe
numberofsharesheldbyeachofthem.
5. Theperiod at which s u c h b a n k shall c o m m e n c e a n d terminate
R E L A T I N G TO
B A N K I N G
A N D
C O M M E R C I A L U S A G E S
R e v i s e d b y P I E R C E , T E N N E S O N A N D C U P L E R , AttorneysatLaw,
Fargo. ( S e e CardinAttorneys' List.)
Acknowledgments of deeds or other instrumentsmay bemade
business.
T h e organization certificate must be acknowledged and recorded
i n t h e officeoftheregister o f d e e d s i n t h e county where such b a n k
m a y be established, and transmitted to the secretary of state, w h o
m u s t recordand preserve the same.
U p o n m a k i n g a n d filingsaidarticlesand certificatetheassociation
shallbecome a body corporate a n d have power:
1. To a d o p t a n d h a v e a corporateseal.
atanyplacewithinthisStatebeforeajusticeoraclerkofthesupreme
2. Tohavesuccessionforaperiodoftwenty-fiveyears.
court, oranotary public; and withindistrictinthisStateforwhich
anofficerisappointedorelectedbeforeajudgeorclerk ofacourt of
record, a mayorofcity, registrarofdeeds, ajusticeofthe peace, a
4. Tosueandbesued, complainanddefendinanycourt oflaw
U. S. circuitordistrictcourtcommissioner, o r a c o u n t y auditor, a n d
withouttheState,butwithinthe UnitedStatesandwithinthejuris-
dictionofthe officer, beforeajustice, Judge, orclerkofanycourtof
recordoftheUnitedStates,orclerkofanycourtofrecordofanystate
3.
To m a k e contracts.
orequity.
5. Toelectorappointdirectors,two-thirdsofwhomshallberesidentsofthisState. Byitsboardofdirectorstoappointapresident
andvice-president,membersofsaidboard,acashierandotherassistants, anddefine theirduties.
6. To prescribe, byits board ofdirectors, by-laws, and regulate
orterritory,anotarypubile, anyotherofficeroftheStateorterritory
wheremadeauthorizedbyitslawstotakeacknowledgments,acommissionerappointed for the purpose by the governor ofthis State;
Its business.
wheremade, secretaryoflegation, aconsul, vice-consul, orconsular
agentoftheUnitedStatesresidentwheremade,ajudge,clerkregistrar
halfitscapitalstockandsurplusandmustnotguarantypaymentor
collection thereof.
Suchbanking associationshall have powerto purchase, hold, and
withoutthe UnitedStates, beforeaminister, commissioner, orcharge
d'affairesoftheUnitedStates residentandaccreditedinthecountry
or commissioner o f a c o u r t of recordofthe country where m a d e , or
anotarypublicofsuchcountry,oranofficerauthorizedbylawswhere
officersinnameofprincipalasdeputy,orbysuchdeputyasdeputy.
Certificatemustbeauthenticatedbynameandofficialdesignationand
sealofofficer. Theformisstatutory,andissubstantiallyasfollows:
prooforacknowledgmentis taken, totakesuch; anydeputyofthese
Stateof...
Countyof....
ss.
7. To exercise, by its boardofdirectors, allpowers necessary to
carry onitsbusinessofbanking.
8. Itcannotcarryamongassetsatanyonetimeloanswhollyupon
realestatesecurity ( a n d then onlyonfirst mortgage) exceeding one-
conveyreal estateonlyforthefollowing purposes:
1. Suchasmaybenecessaryforitsimmediateaccommodation,not
exceeding30 percentofitscapital.
2. Suchasshallbemortgagedtoitassecurityfordebtspreviously
contracted, or as security for loans m a d e .
3. Suchasshallbeconveyedtoitinsatisfactionofdebtspreviously
contracted.
Onthis
Inthe year...., before me perdayof
sonallyappeared.
. . k n o w n to me to be the person..whois
(are) describedin, and who executed the withininstrument,andacknowledgedtomethathe (orthey) executedthesame.
decrees, ormortgagesheldbyitortosecuredebtsheldbyit,butsuch
realestateshall notbeheldlonger than five years.
Ingform:
populationofthetowninwhichthebankissituated,andcannotbe
. . . .
Acknowledgmentofcorporationmustbesubstantiallyinthefollow-
Capital Limit. Theminimumofcapital requireddepends on the
lessinanycasethan$10,000. Fiftypercentmustbepaldinbefore
commencingbusiness; the balancein monthly installments of 10 per
Stateof..
Countyof..
Onthis....dayof
4. Such as shall be purchased byit at sales under Judgments,
... .,intheyear
beforeme(hereinsert
cent each.
The organization certificate a n d authorization of the
thenameandqualityoftheofficer),personallyappeared.
...), t o b e t h e
knowntome(orprovedtomeontheoathof
president(orsecretary) ofthecorporationthatisdescribedinand
secretary ofstate must be published.
suchcorporation executed thesame.
transferisonlyvalldbetweenpartieswhennottransferred onbooks.
Notransferofstockisvalidagainstthebankoranycreditorthereof
that executedthe withininstrument, andacknowledged to me that
Acknowledgment ofan attorney infactmust besubstantiallyin
thefollowingform:
Stateof..
Countyof.
Onthis
..dayof... Intheyear
beforeme(hereInsert
thenameandqualityoftheofficer), personallyappeared.
...) to be the
k n o w n t o me (or proved to me on the oath of
personwhoisdescribedinandwhosenameissubscribedtothewithin
and acknowledged
Instrumentas the attorneyinfact of
tomethathesubscribedthenameof
theretoasprincipal,
andhisownnameasattorneyinfact.
Actions. Actionsincourtsofrecordarecommencedbyserviceof
summonsonthedefendant,requiringhimtoanswerwithinthirtydays.
andifnoappearanceismadewithin that time, theplaintiffmaytake
Judgmentbydefaultuponthe expirationofthethirtydays. When
propertyofdefendantisattached,andinactionsaffectingrealproperty, andfor divorced, summons may be served by publication when
defendant is a non-resident or cannot be found. Personal service
outsidetheStateisequivalenttoservicebypublicationandserviceis
completeattheexpirationoffifteendaysaftersuch personalservice.
Judgmentbydefault maybe takenattheexpirationofsixty-sixdays
afterthefirstpublicationsofsummons, forty-fivedaysafterpersonal
serviceoutsidetheState,andthirtydaysafterpersonalserviceinthe
State.
A d m i n i s t r a t i o n of Decedent's Estate. Administration is
granted: 1, to survivinghusband orwife or s o m e competentperson
w h o m h e o r she may request to haveappointed; 2, his heirs; 3, his
creditors;4.anypersonlegallycompetent,forlackofanyotherclasses.
S h a r e s m a y b e sold fornon-paymentofinstallments.
Sharesshallbe$100 each, shallbedeemed personalproperty, and
maybetransferableon the booksasprescribedby the by-laws, and
aslongasregisteredholderisllable for any pastdue indebtedness,
andnodividendscanbepaidonsuch stock aslong assuch liability
continues. Every transferee ofstock becomes, in proportion tohis
shares, responsibleforliabilities of priorholders thereof
Thearticlesofassociationmayprovideforincreaseofcapital. No
Increaseshallbevalid untilallispaldincash andcertifiedunderoath
tosecretaryofstate,anduntilapprovedbytheStatebankingboard.
Dividends may be declared semi-annually, but one-tenth of net
profitsmustbecarriedtothesurplusfunduntilsameamounts to20
per cent of capital.
QualificationsofDirectors. Everydirector mustownatleastten
shares,unpledgedandinhisownright,mustbesworn, andoathfiled
withpublicexaminer.
Reports. Atleastfivereportsshallbemadeeachyeartothepublic
examinerand published,andthe examineris empowered to callfor
specialreportsatanytime. Penaltyof$200fornotmakingsame.
Reserve F u n d . Association shall at all times have on h a n d i n
availablefundsanamountequalto 20percentofitsdeposits. Wheneversuchfundsgetbelow 20percentofdeposits,liabilitiesmustnot
be increased. E x a m i n e r m a y require reservefundtobe m a d e g o o d .
a n d failure so to do for thirtydays subjects t o a p e n a l t y ofnotless
t h a n $ 1 0 0 norover $500, t o b e imposedbypublicexaminer.
ResponsibilityofShareholders. Eachshareholdershallbeindividually responsible, equallyand ratably, for allcontractsanddebts to
theextentofhisstock and unpaid installments, inadditionto the
a m o u n t invested in such shares.
afterany transfer.
Such liability continues one year
Ar
BANKING
1438
A N D
COMMERCIAL
Security. Noloansshall be madeonsecurityofsharesofitsown
stock. Association cannot purchase or hold such stock except to
preventloss,andshallnothaveor carry amongitsassetsloansdependent wholly upon real estate security.
Total L o a n t o OneConcern. Nottoexceed15percentofcapital
paidinmaybeloanedtoanyoneborrower, includingthe individual
membersofacompanyorfirm. Thelimitofbankloanstooneconcernnot to exceed 15 per cent of the capital orthe surplus stock
actuallypaidinmaybeloaned to any oneborrower, including the
Individual members o f a b a n k orfirm; but thediscount ofbills of
exchange drawningood faith against actual existing valueorloans
uponproduce intransit oractually instockas collateral securityis
allowedabove15percent.
Nobankingbusiness c a n b e d o n e otherwisethanunderthislaw.
Violations of the provisions of theact, and false entries and the
receiptofdepositswheninsolvent,arepunishedbyfineandImprisonment.
Public examinerisex-officiosuperintendentofbanks,
Insolvency. The Statebanking board, incase ofviolationoflaw
orbyInsolvencyofanybankingassociation,takeschargeofinsolvent
bankandappointsatemporary receiver,pendingactionofthecourts.
•Other Business. No bank shall as principal employ any of its
assetsintradeorcommerce,orInvesttheminstock,corporation,bank
partnership orfirm,norinspeculativemarginsor othercommodities.
Banking Board. The governor, secretary ofstate, and attorneygeneral constitute the State banking board, and have charge and
control of all statebanking organizations and make rules for their
government,examineallreportsandapproveordisapprovethesame.
T h e l a w gives Banking Board power to refuse a charter.
T h e l a w k n o w n a s thenegotiableinstrumentact, recently enacted
Inseveral states isnowinfullforcehere.
Chattel Mortgages. A mortgage of personal property must be
signedbythe mortgagorinthepresenceoftwowitnesses w h o must
signthesame as witnesses thereto, or acknowledge the execution of
the same before some official qualified to take acknowledgments,
Andeverymortgageemustsurrendertothemortgagoratthetimeof
theexecutionofthemortgageacorrectcopyoftheoriginal mortgage
so signed, with witnesses or acknowledgementshown thereon. A n d
themortgagormustsurrenderto the mortgageeareceipt whichshall
beattached totheoriginal mortgage showingthatthemortgageehas
surrendered to him a c o p y ofsuch mortgage, and saidreceipt must
accompanythemortgagewhenpresentedtotheregisterofdeedsand
filedtherewith.
Collaterals.
Thereare no statutory provisionswith referenceto
collaterals.
Contracts. Thecivilcodecontainsacodificationofthelawonthe
subject of contracts, not materiallydifferent from the rules of the
c o m m o n l a w . Contractsfor saleofrealproperty mustbeinwriting,
signed by vendor or by his agent thereunto authorized in writing.
Conveyances. Conveyances of real estateor mortgages thereof,
mustbebyaninstrumentinwriting,subscribedbythepartydisposing
ofthesame,orbyhisagenthavingwrittenauthority. Toentitlesuch
conveyancetobe recorded,itmustbeacknowledgedasprovidedby
law. (SeeAcknowledgments.) Witnesses orseals are not required.
Instrumentmustbe recorded tomakeitvalldasagainstsubsequent
L A W S -
N O R T H
DAKOTA
thetruth, thewholetruth,andnothingbutthetruth. 2. Thatthe
depositionwasreducedtowritingbysomeproperperson,namingb
3. That thedepositionwas writtenand subscribedinthepreses
ofthe officer certifying thereto. 4. Thatthedepositionwastas
atthetimeandplacespecifiedinthenotice. Thedepositionsotaärs
mustbesealed,endorsedwiththetitleofthecause,withthenameof
theofficer taking the same, and byhimaddressedandtransmitted
totheclerkofthedistrictcourtwhereactionorproceedingispe
WhentakenoutsidetheStateonnoticetheycanbetakenbya
Justice or chancelor orclerk ofany court ofrecord,ajusticeoft
peace,notary ormayor,oracommissioneroftheState.
Descentand DistributionofProperty. 1. Ifadecedentleave
&survivinghusbandorwife,andonlyonechild,orthelawfullaste
onechild.Inequalsharestothesurvivinghusbandorwifeandc
orissueofsuch child. Ifthedecedentleaveasurvivinghusband
wife, a n d more than one child living, oronechildliving, andthr
lawful issue of o n e o r more deceased children, one-thirdtothefr
vivinghusband or wife, a n d the remainderinequal sharesto
children, and to thelawful issue ofany deceasedchild,byrightof
representation;butiftherebe no childofthedecedentlivingatba
death, the remaindergoes to allofhislinealdescendants;and fa
thedescendantsarein the samedegreeofkindredtothedecedent
they share equally, otherwise they takeaccording totherightof
representation.
Ifthedecedentleave no survivinghusbandorwilh
butleavesissue, thewholeestategoestosuchissue,andifsuchiss
consistsofmorethanone child living, or onechildlivingandthe
lawfulissueofone ormoredeceasedchildren, thentheestategom
equalsharesto the children living, ortothechildrenlivingandthe
Issueofthedeceasedchildorchildrenbyrightofrepresentation. 2
Ifthedecedentleavenoissue,andtheestatedoesnotexceedinvalse
thesumof$10,000,alltheestategoestothesurvivinghusbandorwh
andallthepropertyinexcessof$10,000invalue,one-halfthereofgom
to the surviving husband or wife, and the other one-halfgoest
decedent'sfather, andifhebedead,thentothedecedent'smother.
a n d i f b o t h father and motherare dead and the decedantlesom
brothersandsistersorchildrenofadeceasedbrotherorsister,thenla
equalsharestothebrothersandsistersofdecedentandtothech
ofanydeceased brotherorsisterbyrightofrepresentation. If
decedentleaveno issue,norhusband, norwife, theestatemustgot
thefather,andifhebedead, tothemother. Ifthedecedentleaves
surviving husbandor wife, andno issue, andnofathernormother
norbrother,norsister,norchildrenofadeceasedbrotherorsister,the
wholeestategoes to thesurvivinghusbandorwife. 3. Iftherebe
noissue,norhusband,norwife,norfather,normother,thenin
sharestothebrothersand sisters ofthedecedent,andtothech
ofanydeceased brotheror sisterby rightofrepresentation. 4.
thedecedentleavenoissue,norhusband,norwife,norfather,andso
hismothertotheexclusionoftheissue. Ifany,ofdeceasedbrothersof
sisters. 5. If the decedent leaveno issue, norhusband,norw
andnofather, normother, norbrother, norsister,theestatemust
tothenextofkin,inequaldegree,exceptingthatwhentherearetwo
ormore collateral kindred, in equal degree, but claiming the
different ancestors those who claim through nearest ance
must be preferred to those claiming through an ancestor
brotherorsisterisliving atthetimeofhisdeath, theestateroes
remote.
However,
If the decedent leave several ch
or one child and the issue of oneormorechildren,andanysuch
survivingchilddiesunderage,andnothavingbeenmarried,athe
estatethatcame to thedeceasedchildbyinheritancefromsuchde
H u s b a n d n e e d n o t sign conveyance ofwife'sproperty, nor wife that
cedent, descendsin equal shares to theother childrenofthesame
ofhusband's, unless it is ahomestead.
parent,andtotheissueofanysuchotherchildrenwhoaredead
rightofrepresentation. 6. If, atthedeathofsuchchild,whodie
Corporations. Corporationsmaybeformed foranypurpose for underage, not having been married, all the otherchildrenofthe
whichpersonsmaylawfullyassociate,and,exceptrailroadsandinsur- parentsarealsodead,
andanyofthemhaveleftissue,theestatethat
puerchaseduly
rsorrirecorded,
ncumbra
ersingdoodfaitjudgments
hfnorvaluewahereconveyances
anc
and
as
ancecompanies, m a y b e f o r m e d by the associationof threepersons,
andtheproperfiling ofarticlesofincorporation. Transfersofstock
mustbemadeuponthebooksofacorporation, andareonlyvalidas
between the parties unless so made. A creditor of a corporation
having secured judgment, issued execution against the corporation
thereon, may, whenthe sameisreturned unsatisfied, havearecelver
appointedfortheproperty ofthecorporation, andthedistrict court
Is then empowered to distribute the property of the corporation
amongitscreditors, and asettlementof thejudgment, whichis the
basis of the proceedings, does not prevent the continuance of the
action, which maybecontinuedby any creditor. Corporations m a y
alsobedissolved by actiononthepart of the State, orincasethe
attorney-general fails to commence action after proper application,
byactiononthepartofthecreditororstockholder. Domesticcorpo-
rationsmust fileareportduring the monthofJulyineachyearwith
thesecretaryofstate,andfailuretodosoforfeitsthecharter. Foreign
corporations are prohibited from transacting any business in this
State,acquiring,holding,ordisposingofanyproperty,realorpersonal,
untiltheyhave filedintheofficeofthesecretary ofStateacopy of
theirarticlesofincorporation, togetherwith apowerofattorney.
appointingthesecretaryofstateandhissuccessorstheirattorney, on
whomprocess maybeserved. Insurancecorporations mustfilesuch
er.
powerofattorneyandarticlesintheofficeoftheinsurancecommission-
defaultinthefilingofsuchpapers,
arewhollyvoldastothecorporaoritsagent, whileitisin
Allcontracts madebyacorporation
tion, but m a y be enforced againstit, and the directors and stock-
holdersare personally llable onsuch contracts. These provisions
donotapplytocorporations createdforreligiousorcharitablepurposesonly, norto the holding anddisposing ofreal estate acquired
onlybyforeclosureorotherwise,inliquidationofmortgages orother
securities. Insurance compantes musthave $100,000capitalpaidin
cash. Conveyances orotherinstruments affecting realestatemaybe
executedbyanyofficerauthorizedbytheby-lawsofthecorporation,
andintheabsenceofsuchby-laws,thepresidentorsecretaryofsuch
corporation, or the president, secretary, or cashier of any banking
house, ortrustcompany,mayacknowledgeandexecutesuch instrument,who must signthe corporatename byhimselfas such officer,
anditmustbeattestedbythesealandsignatureofthesecretary.
Costs.
Courts.
Costs are allowedto theprevailing partyin suits.
T h e r e are twelve judicial districts.
T h e district courts
haveexclusivejurisdictioninequityandatcommonlawabove$200and
wherethetitleorboundaryofrealpropertyisinquestion,exceptina
fewcountles where county courts have concurrent jurisdiction with
district courtsarts in civilactionswhereamountIncontroversy does not
exceed$1,000. T w o terms ofdistrictcourtareheldeachyearinall
organized counties and oftenerinafew countles. Each organized
county has a county court, and the county courts have exclusive
probate jurisdiction. Justices' Jurisdiction is $200.
Creditors' Bills. Creditors' bills are permissible.
D a y s o f G r a c e are n o t a l l o w e d .
cametosuchchild byinheritancefromhisparentsdescendstotas
Issueofallotherchildrenofthesameparent;andifallissueareinthe
same degree ofkindred to the child, theysharetheestateequa ,
otherwise they takeaccordingtothe right ofrepresentation. 7.
thedecedentleavesnohusband,wife,orkindred,theestateeschra
totheStateforthesupportofthecommonschools. s. Ifdev
beinfant,andleavesnoheirs,wholeestategoestofosterpareniwa
supports infant.
Dower. Dower isabolished. Surviving spousehashomestead
rights to extent of $5,000 in value.
Evidence. Evidencemaybegivenincourtorallyorbydeposition
takeninaccordance withlaw. (SeeDepositions.)
Executions. Judgmentcreditormaytakeoutexecutionata
timewithintenyearsafterentryofjudgment. Realpropertyand
onexecutionmayberedeemedwithinoneyear.
Exemptions. Absoluteexemptionsarefamilypletures,per
booksusedbythefamilyandotherbooksusedasapartoftheis
library,andnotexceeding $100invalue,allwearingappartis
clothingofdebtorandhisfamily,oneyear'snecessarysupply(
visionsfordebtorandfamily,providedorgrowing,orboth,and
year'sfuel,andthehomestead,notexceeding$5.000invalue,ex
againstmechanics'orlaborers' liensthereon,debtssecuredby
gagethereon,debtsforpurchasemoneythereof,andtaxesthe
Husbandandwifemustjoininconveyanceofhomesteadofe
houseofworship,alotorlotsinburialground,familybibleandst
Inadditiontosaldabsoluteexemptions,ifaheadofafamilyaf
selectfromallotherofhispersonalproperty,goods,chattNeo'ps,
e
chandise,moneyorotherpersonalpropertyupto$500.
p
roperty,exceptabsoluteexemptiroon(s,
isexemptfromexe
orforpos
ans'
)
.
s
l
l
i
b
laborers
o
btaineduor
ndemechanics'
rfalsepretweangseess. Nophysicians'
propertyisexemptfromex*«
tionforthepurchasemoneythereof.
Fraud. Contractsexemptingfromresponsibilityforfrandsim
declaredbystatutetobevold.
ForeignCorporations. Noforeigncorporationexceptanta
ancecompanycantransactanybusinesswithinthisState,orac
hold,ordisposeofproperty,realorpersonal,withintheState
ItshallhavefiledintheofficeofthesecretaryofStateadulya
ticatedcopyofitscharterorarticlesofincorporation,andsha
appointedthesecretaryofStateandhissuccessorsitstruean
attorneyuponwhomallprocessinanyactionorproceedingsare
Itmaybeserved,andthereinagreesthatanyprocessthatmat
serveduponsaldattorneyshallbeofthesameforceandval
IfserveduponitpersonallyinthisState,andthatsuchappcat
s
hallcontinueinforceirrevocablesoon anyliabilityres
ac
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et
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atteiiosnra
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y
residentmanagerintheUnitedStates,ortosuchotherpersonas
havebeenpreviouslydesignatedbywrittennoticefiledinthe
Deeds. Deeds mustbe subscribedbythegrantororbyhisagent
thereuntoauthorizedinwriting. Toentitlethemtorecordtheymust
beacknowledged. Nosealorwitnessesarenecessary. Canberecord-
ofthesecretaryofState. Failingtocomplywiththesepro
renderseveryofficer,agentorstockholderofsuchcorporation
edonproofbywitnessifnotacknowledged;onememberofpartner-
contractmadewithoutcomplyingwiththeseprovisions,isw
voldonbehalfofsuchcorporationsanditsassignsbutmaybeecf
ship m a y execute.
Depositions. Depositionsmaybetakenupon commissionissued
byacourtofrecord,oruponnotice,whichlatteristheusualmethod.
Thedepositionmust be writtenbythe officerorinhispresenceby
thewitness,orsomedisinterestedperson,andmustbesubscribedby
thewitness. The officer taking the deposition must annex thereto
his certificateshowing: 1. That the witness was sworn to testify
andseverallylableonanyandallcontractsofsuchcorpers
madewithinthisStateduringthe contractdefaultcandevery
againstit. Theymustfilewithreportshowingthelocationofthe
thesecretaryofstatebetween200
andAugust1stofeachyear,apalofficeinthiscity,namesofoicerswiththeirresidenceandofficeaddress,date,expirationoftheerswiththeirresidepethereft
theyarepursuingactivebusinessunderermaterandkindofbusiness
BANKING AND COMMERCIAL L A W S - N O R T H DAKOTA
e n g a g e d i n , a n d m u s t s h o w p a i d u p capital stock ofat least$100,000
inavailablecashassetsoverandaboveallHabilitiesforlossesreported,
expenses, taxesand re-insuranceofalloutstandingrisks.
Garnishment.
A
creditor m a y
proceed by garnishment.
Judgment canbe rendered againsta garnishee on:
gotiable note, bill, draft, note or other security.
No
1. U p o n a n e
2. By reasonof
moneycollectedbyhimassherifforotherofficer. 3. Byreasonof
m o n e y i n h i s h a n d s as apublic officer, f o r w h i c h h e m u s t a c c o u n t t o
t h e d e f e n d a n t a s a public officer. 4. B y r e a s o n o f m o n e y , or other
thing, owing f r o m h i m t o thedefendantwhich shallnothavebecome
absolutelydue,butjudgmentmayberenderedforanymoneyorother
thingowing tothedefendantafteritshallhavebecomedueabsolutely.
Publiccorporationsmaybe madedefendantswhenowingorholding
propertybelonging to the debtor.
Holidays.
Holidays are every Sunday, January 1st, February
12th, February 22d, M a y 30th. July 4th, December 25th, the first
MondayinSeptember,everydayonwhichanelectionisheldthroughouttheState,andeverydayappointedbythepresidentoftheUnited
States,orbythegovernoroftheState,forapublicfast,thanksgiving.
orholiday. If January 1st, February 22d, July 4th, or December
25th, falls upon Sunday, the Monday followingisaholiday. All
otherdaysarebusinessdays,andanyactofasecularnatureappointed
b y l a w o r c o n t r a c t t o beperformeduponaparticularday,whichday
fallsuponaholiday, m a y beperformeduponthenextbusinessday.
with thesameforceandeffect asifithadbeenperformeduponthe
d a y appointed.
H u s b a n d a n d Wife.
(See Married W o m e n . )
Interest. Usury. ThelegalrateofInterestis7percentperannum
unlessadifferentrate,
notexceeding 12percent,iscontractedforin
writing, a n d contracts shall b e a r t h e s a m e rateafterasbeforedue,
unlessotherwiseexpressed. I t i s u s u r y t o t a k e m o r e t h a n 1 2 percent
p e r a n n u m . Acontract forusuryforfeitsallinterest. I f u s u r y h a s
beenpaid,twicetheamountofInterestandusurymayberecovered
1439
mentlawrecentlyadoptedbyseveralStates. Notestakenforpatent
rights, stallions, Jackasses, lightning rods, patent medicines, or for
cureofdiseasesmusthave writteninredinkorstampedacrossface,
"givenforalightningrod"or"givenforastallion,"orotherpurposes,
a s t h e c a s e m a y be,andarenon-negotiable.
P o w e r s o f Attorney. Powers ofattorney to convey real estate
mustbeacknowledgedand recorded,andcanonlyberevokedbyan
Instrumentin writingacknowledgedand recordedinthe s a m e office
inwhichthepowerofattorneyisrecorded.
Probate L a w . (SeeAdministrationofEstates, D e s c e n t a n d D i s
tributionofProperty.) Thecountycourthasexclusiveoriginaljurisdictionofall probatematters. Aspecial administrator may be appointedtopreserveandcollectthepropertyofthe estatewhenthere
Isdelayintheappointmentofanexecutororadministrator. Claims
mustbepresented withinthetimefixedbylaw, which is sixmonths
afternoticeiftheestateexceeds$5,000,andfourmonthsifitdoesnot,
andallclaims notproperly presentedandfiledinthecountycourt
foradjustmentarebarred,butthecourt may, forgoodcauseshown.
allowaclaim tobefiledaftertheexpirationofthetimestatedinthe
notice. Theprovisionbarringclaimsdoesnotpreventtheforeclosure
ofamortgageorotherlienonspecific propertyby civilaction, and
doesnotpreventtheforeclosureoftherealestatemortgagebyadvertisementpriortothetimethecountycourtobtainsjurisdictionofthe
estate of the mortgagor. I f a c l a i m i s rejected, the claimant m a y
bring suit in proper court according to amount withinfour months
afterdateofrejectionifthendue orwithinthree months afteritbecomes due, otherwiseitisbarred forever. No claim barred by the
statuteoflimitation canbeallowed. An executor oradministrator,
unlessotherwiseprovidedinthewill,mustgivebond. R e a l a n d p e r -
sonal property is equallyliable forthe payment ofthedebts. The
executororadministrator must takeintohis possessionall the prop e r t y o f t h e decedent, real andpersonal, except t h e h o m e s t e a d a n d
personalproperty not assets. Time forprobating will, within six
expiration o f t h e ten years.
Jurisdiction. Courts o f t h e Stateconsist o f t h e supreme court,
yearsaftertestator's death, o r i f n o t m a d e k n o w n w i t h i n t h a t time.
withinoneyearafteritsdiscovery.
Protest. Notice ofdishonor ofaforeignbill o f e x c h a n g e c a n b e
g i v e n o n l y b y notice ofprotest. An inland bill of exchange is one
d r a w n a n d payablewithinthis State;all othersare foreign. Notice
o f p r o t e s t m u s t b e m a d e b y a n i n s t r u m e n t i n w r i t i n g , givingaliteral
copyofthebillofexchangewithallthatiswrittenthereon, orannexIngtheoriginal, stating thepresentmentand the m a n n e r i n w h i c h i t
districtcourts,countycourts,courtsofjusticesofthepeace,andsuch
wasmade,thepresenceorabsenceofthedraweeoracceptor,asthe
othercourts a s m a y b e c r e a t e d b y l a w f o r c i t i e s , incorporated towns
c a s e m a y b e ; the refusal toaccept o r t o pay, o r t h e inabilityof the
draweetogiveabindingacceptance;andincaseofrefusal, thereason
assigned,ifany,andfinallyprotestingagainstallpartiestobecharged.
P r o t e s t m u s t b e m a d e b y a n o t a r y p u b l i c , ifwithreasonablediligence
onecanbeobtained,andifnot, thenbyanyreputablepersoninthe
b a c k by action c o m m e n c e d within two years.
J u d g m e n t s ofcourts ofrecord are alienonallreal estateofthe
Judgmentdebtor, exceptthehomestead,fortenyears fromtimesuch
Judgmentisdocketedintheclerk'sofficeofthecountywherethe land
issituated,andmayberenewedbyaffidavitwithinninetydaysbefore
a n d villages. Supreme, district, and county courts are courts of
record. The supreme court has appellate jurisdiction only, except
thatitmayexerciseoriginaljurisdictiontoissuewritsofhabeascorpus,
mandamus, quo warranto, certiorari, and such original and remedial
writsasarenecessaryto the properexercise ofitsjurisdiction. But
Itissueswritsofhabeascorpusonlyincaseofstrictlypublicconcern
Involving questions affecting sovereignrightsofthe State, oritsfran-
chisesorprivileges. Districtcourtshavegeneraljurisdiction. County
courtshaveoriginaljurisdictioninallprobate matters,andincertain
countieshave concurrentjurisdiction-in civilactions w h e r e a m o u n t
Incontroversydoesnot exceed $1,000, andincriminalactionsbelow
felony. Courts of Justice of the peace have concurrentjurisdiction
with thedistrict court in civil actions w h e n amountincontroversy
does not exceed $200, but have no jurisdictionin cases when the
boundaries of, ortitleto real estatecomesinquestion.
Liens. Mechanics,laborers,andfurnishersofmaterial,machinery,
orfixturesfor improvementofreal estate,havealienthereforand
mustfileaverified accountoftheclaim, withinninetydaysfromthe
dateofthelastitem,intheofficeoftheclerkofthedistrictcourt.
Limitations. AnactionbytheStateofNorthDakotarespecting
realpropertymustbecommencedwithinfortyyears. Anactionfor
therecoveryofrealpropertyorthepossessionthereofmustbecom-
mencedwithintwentyyears. Actionsotherthanfortherecoveryof
realproperty can only be commencedwithinthefollowing periods
afterthecauseofaction shallhave accrued: 1. Withintenyears:
anactionuponajudgmentordecreeofanycourtintheUnitedStates,
orofany stateorterritorywithinthe United States, oroncontract
containedin conveyance or mortgage of real property. 2. Within
sixyears: (a) actionsuponacontract,obligationorliability, express
orimplied; (b) action upona llabilitycreated bystatute; (c) action
fortrespassuponrealproperty; (d) actionfortaking,detainingor
Injuringanygoods orchattels; (e) actionforcriminalconversion; (1)
actionfor relief on ground of fraud; (g) action for foreclosure of
mechanic'slien. 3. Withinthreeyears: anactionagainstanofficer
forbreachofofficialduty;anactionforapenalty
(threeyears:)
action
4. Within one
year; allactions
years.)
(twoofficer
fordeath by injury;
other
fortheescapeofaprisonerarrested
againstasheriffor
or imprisoned on civil process. 5. All other actions for reliefin
tenyears. No acknowledgmentorpromiseissufficientevidenceof
aneworcontinuedcontractwherebytotakethecaseoutoftheoperationofthestatuteoflimitation,unless thesamebe inwriting, signed
bythepartyto be chargedthereby; but thisdoesnotaltertheeffect
anyofpaymentofprincipal orinterest.
Married W o m e n retaintheirownrealandpersonalproperty,and
m a y m a k e contracts, sueandbesuedasifsole. Neitherhusbandnor
wifehasaninterestin the property of the other except underthe
statute relating t o t h e homestead; b u t n e i t h e r c a n b e e x c l u d e d f r o m
theother'sdwelling. They mayenterintoanyengagementortransactionwith each other, subject to the general rules which control
theactions of persons occupying confidential relations with each
other. Dowerandcurtesyareabolished. Neitherhusbandnorwife.
presence of two witnesses. A protest for non-acceptance must be
madeinthecityortowninwhichthebillispresentedforacceptance,
andaprotestfornon-paymentinthecityortowninwhichitispresented for payment. A protest must be noted on the d a y of the
presentment,oronthenextbusinessday,butitmaybewrittenoutat
anytimethereafter. Noticeof protest must b e m a d e and given by
t h e n o t a r y w h o makes the protest. Ifaforeign bill o f e x c h a n g e o n
Itsfacewalvesprotest, n o t i c e o f d i s h o n o r m a y b e g i v e n t o a n y p a r t y
thereto, exceptthatifanyindorser of such abill expressly requires
protesttobe made,byadirectionwrittenonthebillatorbeforethe
Indorsement, protest m u s t b e made,andnotice thereofgiven to h i m
andallsubsequent indorsers. An irregular indorser isnot considered
jointmaker a n d must be givennotice ofprotest to beheld.
Redemption. The periodofredemptionfrommortgageforeclosureandjudgmentsalesofrealestateisoneyear,andfromforeclosure
ofchattel mortgages fivedays.
Replevin. Personalpropertymayberepleviedatthetimethesumm o n s i s issued, o r a t a n y time before answer. Anundertaking ap-
provedbythesheriffmustbegivenindoublethevalueoftheproperty.
Revision. ThelatestrevisionofthelawsoftheStateiscontained
i n t h e compiled Laws of 1913.
Service. (See Actions.)
Suits. (SeeActions.)
TaxesbecomedueandpayableonthefirstdayofDecemberineach
year. AllunpaidtaxesonrealpropertybecomedelinquentMarch1st
ofeachyear. UnpaidtaxesonpersonalpropertybecomedueDecember1stofeachyearanddelinquentonthefirstdayofMarchfollowing.
Personal property taxesdrawinterestat the rate of 1percentper
monthaftertheybecomedelinquent. Apenaltyof5percentattaches
topersonal property taxes as soon as they become delinquent. A
penalty of3 percentisadded to taxes on real propertywhenthey
becomedelinquent,andalsoifunpaidanadditional penalty of3per
centonthefirst day ofApril following, anadditional penalty of 3
percentonthefirstdayofJunefollowing,andafurtherpenaltyof5
percentonthefirstdayofNovemberfollowing. Thecountytreasurer
sellslandsforunpaidtaxesonthefirstTuesdayinDecemberineach
year. Landssoldfor taxes may be redeemedwithin three yearsor
atanytimebeforeexecutionofthedeedofconveyance,bypayingthe
a m o u n t m e n t i o n e d in thecertificate of sale, a n d intereststhereonat
theratebidbypurchaseratsale,togetherwithapenaltyof5percent
andall othertaxespaldsubsequenttosaidsale,and interest thereon
a t t h e r a t e o f 2 percent per month. Taxes andspecial assessments
b e c o m e a lien as between grantor a n d grantee on the first d a y of
Decemberintheyearlevied. Nodeedoflandcanberecordedwithout
countyauditor'scertificatethereonthatalltaxesarepaid.
assuch,isanswerable fortheacts oftheother. Theearnings of the
wifearenotliableforthedebtsofthehusband. Theseparateproperty
ofthehusbandisnotllableforwife'sdebtscontractedbeforemarriage;
norseparatepropertyofwifeforhusband'sdebts,butisllableforher
T e s t i m o n y . (SeeEvidence.)
Transfer of Corporate Stocks. (See Corporations.)
Transfers ofCapital Stock. Certificates ofstock m a y b e transferredbyindorsement, by thesignature oftheholderorhis attrney
notaries public.
except betweenthe parties thereto until entered u p o n the books of
thecorporation.
Mortgagesofrealpropertymustbeinwriting, andexecutedas
requiredincaseofagrantofrealproperty. Neitherhusbandnorwife
needjointheotherinmortgageexceptofhomestead. Ifcontaining
powerofsale, mortgageofrealpropertymaybeforeclosedbyadver-
Trust C o m p a n i e s . (See Guaranty Companies.)
Wills. Everypersonovertheageofeighteenyears,ofsoundmind;
may,bylastwill,disposeofallhisestate,realandpersonal. A n h o l o -
owndebtscontracted beforeorafter marriage. Husbandandwife
arebothllablefornecessitieswhilelivingtogether. Womenmaybe
tisement. I f n o powerofsaleinthemortgage,Itmustbeforeclosed
byaction. Mortgagor may redeem from foreclosuresalewithin one
yearon payment ofthe sum forwhich the propertyissold, with12
percentinterestthereonfromdateofsale,andalsoalltaxespaidby
orlegalrepresentative,anddeliveryofthecertificate, butisnotvalid
graphicwillisoneentirelywritten,dated,andsignedbythehandof
the testator himself. It is subject to no other form, and m a y b e
madeinoroutofthis State,andneednotbewitnessed. Everywill,
other than a nuncupative will, must be in writing.
T h e words
thepurchaserandinterestthereonat12percent. Possessionofreal
propertysolduponforeclosure notdeliveredto purchaseruntilend
ofyearofredemption, but purchasermaycollect rentsfromtenant
inpossessionduringyearofredemption. (See ChattelMortgages.)
Real estate mortgage cannot be foreclosed by agent or attorney,
without power of attorney authorizing foreclosure. Agents and
attorneys musthavepowerofattorney to foreclose, whichpower
mustbe filedwithregisterofdeedsand pleaded when foreclosure
"writing" and"written" include"printing" and"printed." exceptin
isbyactionandbeforestatutoryattorney'sfeesareallowedattorney
must file with registerofdeeds beforesale,hisaffidavit thatallsaid
feesgosolelytohim,etc.,andthathe isabonafideresidentofNorth
Dakota. (Seealso Chattel Mortgages.)
Negotiable Instruments. The law known as the negotiable
Instrumentlaw, recentlyadoptedinseveral States,isineffect.
Notes and Negotiable Instruments. Lawofnotesand negotiableinstrumentsissubstantially whatiscalledthenegotiableinstru-
thesubscription mustbe made inthe presenceofthe attestingwitnesses,orbeacknowledgedbythetestatortothemtohavebeenmade
b y h i m o r by hisauthority. The testator must,atthetimeofsubscribingoracknowledgingthesame,declaretotheattestingwitnesses
thattheinstrumentishiswill; andtheremust be twoattestingwit
nesses, each o f w h o m must signhisnameasawitnessat the endof
thewill,atthe testator'srequestandinhispresence. Awitnessto
caseofsignatures,and where the wordsareused b y w a y ofcontrast
toprinting. W r i t i n g m a y b e m a d e i n a n y m a n n e r , e x c e p t t h a t w h e n
apersonentitled to require the executionofawriting d e m a n d s t h a t
Itbemadewith ink,Itmustbesomade. Thisapplies toallinstruments a n d papers. Every will, other t h a n a n holographic will a n d
nuncupativewill, mustbeexecutedandattestedasfollows: I t m u s t
besubscribedattheendthereofbythetestatorhimself,orsomeperson
Inhispresence,andbyhisdirectionmustsubscribehisnamethereto;
1441
BANKING AND COMMERCIAL L A W S - O H I O
shallreport tothesecretary ofstateandpayfeeofthree-twentieths
ofone percent upon capital stock represented by its property in
cealment ofproperty by thedebtor-or where debtorwas arrested
Ohio, in no caseless t h a n $10.
must be appraisedby three disinterested free-holders, and cannot
Costs. Nocostsallowed to successful partyasand forattorney's
fees.
Courts. Supreme Court.-Court oflast resort. Acourt of error
except in cases where judgment ofcourt ofappeals is final. Has
original jurisdiction in habeas corpus, mandamus, and quo warranto. Court of Appeals.-State is divided into eight districts.
Likeoriginal jurisdictionassupremecourtandappellatejurisdiction
and jurisdiction in error from the common pleas court. C o m m o n
Pleas Court.
Original jurisdictioninallcivilcases w h e r e a m o u n t in
disputeismorethan$100, andactions involvingtitletorealestate.
Appellatejurisdictionfrominferiorcourtsandcountycommissionersin
propercounty. Probate Courts.-Original jurisdiction incontrol of
estatesofinsolvents,deceasedpersons, minors,lunatics,impeciles,and
habitualdrunkards; probatingwillsandsettlementofestates; original
Jurisdictioninaidmattersof guardianship,inquest oflunacy; concur-
rent jurisdictionwithcommonpleascourt inappropriationproceedIngs. Justices of the Peace.-Exclusive original jurisdiction in
amounts less than $100; concurrent jurisdiction with commonpleas
court in a m o u n t from $100 to $300, except in cases involving title
toreal estate.
Municipal courts for Cleveland, Cincinnati, Columbus, Dayton,
Hamilton, and Youngstown have jurisdiction in their respective
cities concurrent with justice courts a n d in certain cases concurrent
with c o m m o n pleas courts. Designed to supersede justice courts
and relieve common pleas of controversies of $1,000 and less, the
a m o u n t varying in the different cities.
Deeds, Mortgages, etc. Alldeeds or instruments conveyingan
Interestinrealpropertyshallbesignedbythegrantorinthepresence
of two witnesses, and such signing shall be acknowledgedbefore a
Judge ofacourt ofrecordofthis State, oraclerk thereof, a county
auditor, county surveyor, notary public, mayor, or justice of the
peace, who shall certify the acknowledgment on the same sheet of
beforejudgmentandnotdischargedunderthelaw.
Landslevied on
besoldforless than two-thirds of such appraisement.
Executions
arestayedbeforejustices, byenteringintoabondtoadverseparty
withintendays after rendition ofjudgment, on judgments for $5
andunder, sixtydays:$5andunder$20,ninetydays; $20andunder
$50, 150days; $50 andupward, 240days. Nostayonjudgmentin
favorofanypersonforwagesdueformanuallaborperformed.
Exemptions.
E v e r y h e a d o f f a m i l y a n d w i d o w m a y h o l d exempt
fromexecution, attachmentsorsale,wearingapparel,bedsandfurniture, certaincattle, certain religiousbooks,familyprovisions,sewing
machines, tools and implements worth $100, personal earnings for
three months. Everyunmarried womanmayholdexemptwearing
apparel, sewing and knitting machines, religious books and beneficiaryfundsnotexceeding$50.00.
Regalia, etc., of benevolent societies is exempt. Property of
municipalityorfirecompanies forextinguishingfires isexempt, but
ownermaymortgage. Husbandandwifelivingtogetherorwidower
living with unmarrieddaughter orminor son, and every unmarried
femalehaving custody of minor child,if resident of Ohlo andnot
o w n e r o f h o m e s t e a d , m a y h o l d onselection $500 worth ofpersona