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DIGEST OF BANKING AND COMMERCIAL LAWS
COMPILED EXPRESSLY FOR EACH EDITION OF THE RAND-McNALLY BANKERS’ DIRECTORY

by prominent Attorneys in each State of the United States and each province of Canada, the name
of the compiler appearing at the head of each State. The Laws are entered alphabetically
according to States. Provinces of Canada are listed last.

IMPORTANT:

The states in which the Uniform Negotiable Instruments Law is in effect are listed on the
index to Laws. For Tabulated Information, for quick reference in regard to Interest Rates, Days of
Grace, and Statutes of Limitations, see page 16.
to continue this cause for one term for an award, but not longer with­
out consent of parties, or good cause being shown therefor. The
award of the arbitrators may be entered up and enforced as the judg­
ment of the proper court whether made in a pending suit or not.
Arrest. There can be no arrest on civil process except for con­
tempt and in cases of alleged lunacy, and upon writs of ne exeat.
Assignments and Insolvency. Every general assignment made
by a debtor, or conveyance by a debtor of substantially all of hie
property in payment of a prior debt, by which a perference or priority
of payment is given to one or more creditors, shall enure to the benefit
of ail the creditors equally, but this section shall not apply to mort­
gages, pledges, or pawns given to secure a debt contracted contem­
poraneously with the execution of the mortgage. All assignments by
a debtor made with intent to hinder, delay, or defraud creditors are
void. All deeds of assignment for the benefit of creditors shall, as
soon as exocuted, be filed and recorded in the office of the judge of
probate of the county in which the property is situated. Every
judgment confessed, attachment procured by the debtor, or other dis­
position of property by which a debtor conveys all, or substantially
all, of his property which is subject to execution In payment or as
security for a debt shall be deemed a general assignment.
Attachment process will issue upon affidavit by the creditor or hf»
agent of the amount due and that the debtor absconds, or resides,
out of the State, or secretes himself so that process cannot be served
upon him, or is about to remove out of the State, or has or is about to
fraudulently dispose of his property, or fraudulently withholds money,
chattels, or effects which are liable to the satisfaction of his debts;
plaintiff must give bond in double the amount claimed. Attachments
will issue for the following demands: 1. To enforce the collection of
a debt, whether it be due or not, at the time the attachment is taken
out. 2. For any moneyed demand, the amount of which can be
certainly ascertained. 3. To recover damages for a breach of con­
tract when the damages are not certain or liquidated. 4. When
the action sounds in damages merely in falling cases, viz.: I. Where
defendant is a non-resident. 2. When the defendant has absconded.
3. When defendant has secreted himself. 4. When defendant Is
about to remove from the State. 6. When defendant is about to
remove his property from State. 6. When defendant is about to or
has fraudulently disposed of his property or fraudulently withholds
same. One non-resident may sue out an attachment against another
non-resident by making oath that the defendant has not sufficient
property within the State of his residence wherefrom to satisfy the
debt. Attachments may be sued out in aid of a pending suit when
any of the above grounds exist by making affidavit and executing
bond. Garnishment process will issue in aid of attachment in afl
such cases. Garnishment may be dissolved by giving bond. In all
cases of attachments sued out by a resident solely upon the ground
that the defendant is a non-resident, the attachment may issue with­
out giving bond, but if defendant appears and pleads, bond must be
given or the attachment dismissed.
Banks. The national bank system Is in force In this State uncon­
trolled in any way by State laws, except that the shares are subject
to taxation as other personal property, but the bank is required to pay
the tax.
There Is no provision of law for the establishment of banks of Issue
in this State. Banks of discount and deposit may be established
under the general incorporation laws. Open depositors and savings
depositors on equal footing in case of Insolvency.
Any banker who discounts a bill or note at a greater rate than 8
per cent cannot enforce the collection of same except as to the prin­
cipal, and if any interest has been paid it must be deducted from the
principal.

SYNOPSIS OF

THE LAWS OF ALABAMA
RELATING TO

BANKING AND COMMERCIAL USAGES.
Revised by Ritter, Wynn & Carmichael. Attorneys at Law.
610 First National Bank Bldg., Birmingham. (See Card in Attorneys
List.)
Acknowledgments or proof of real estate Instruments may be
taken before one of the following officers: 1st. Within this State,
Judges of the supreme and circuit courts and the clerks of such courts,
chancellors, registers In chancery, judges of the courts of probate.
Justices of the peace, and notaries public. The official should certify
that the person signing the conveyance is known to him and acknowl­
edges that "being informed of the contents of the conveyance he
executed the same voluntarily on the day the same bears date.”
2d. Outside of State—Judges and clerks of any federal court, judges
and clerks of any court of record in any state, notaries public, or com­
missioners appointed by the governor of this State: beyond the limits
of the United States, by the judges of any court of record, mayor or
chief magistrate of any city, town or borough, or county, notaries
public, or by any diplomatic, consular, or commercial agent of the
United States. Foreign officers must attach official seal which fact
must appear in certificate. For forms of deeds see “Conveyances.”
Actions. All ordinary suits at law are commenced by suing out
■ summons which must be accompanied by a complaint stating the
cause of action. Non-resident plaintiffs are required to give security
for costs. When two or more persons are jointly bound by judgment,
bond, or agreement, the obligation is several as well as joint.
Actions on Account. Suits upon open accounts may be accom­
panied by itemized, verified statement of the account, which when
filed with the summons and complaint may be admissible in evidence
to prove the account unless its correctness is denied under oath by
defendant within the time allowed for pleading. Such statements
must be sworn to by a person having knowledge of the correctness
of the account and must show that the amount is due and unpaid
after allowing all offsets and counter claims and when sworn to out­
side State, must bear official seal of officer.
Acceptance. Unconditional promise in writing to accept a bill
before or after drawn Is good in favor of all who take it upon faith
thereof for value. The holder may decline a qualified acceptance and
treat the bill as dishonored; if he takes qualified acceptance drawer
and endorsers are discharged.
A Check is a bill of exchange on a bank payable on demand:
must be presented within reasonable time after issue and If dishonored
notice must be given or drawer is discharged to the extent of loss
caused by delay; does not operate to assign any part of drawer’s funds
In bank, and bank is not liable unless it accepts or certifies. If holder
has check certified the drawer and endorsers are discharged. The
making, uttering, drawing, or delivery of a check, draft, or order
upon which payment Is refused upon due presentation because of
lack of funds shall be deemed prima facie evidence of intent to de­
fraud and party may be convicted of a misdemeanor.
The present negotiable instrument law of Alabama, consisting of
196 sections went into force Ausugt 9, 1907. Its provisions do not
apply to instruments made prior thereto, and is substantially uniform
negotiable Instruments Act. The act so materially changes the law
in this State as to suggest the propriety of special examination in any
doubtful case.
Administration of estates is had in the probate courts of dece­
dents’ residence. All claims must be presented within twelve months
after the same have accrued or within twelve months after the grant of
letters testamentary or of administration, or else barred. Infants and
persons of unsound mind have one year to present their claims after
disabilities are removed. Administration of intestate is granted, 1st:
To the husband or widow; 2d: The next of kin entitled to share In
the distribution of the estate; 3d: The largest creditor of the intestate
residing within this State; 4th: Such other person as the judge of
probate may appoint. There can be no appointment until after
expiration of Five (5) days from date of death. Preference must be
exercised within forty day s or rights relinquished. If several entitled
to administer, men are preferred to women and whole blood to half
blood. Non-resident executors and administrators may sue in this
State by recording In probate judge’s office copy of letters and giving
bond to faithfully administer property. A non-resident may be
appointed administrator or executor of a deceased resident’s estate.
Administrations may be removed to court of equity.
Affidavits may be taken within the State before every judge or
clerk of any court, justices of the peace, and notaries public or any
other person invested by law with judicial functions. Outside the
State and within the United States may be taken before any judge or
clerk of federal court, judge of any court of record in any state,
notaries public and commissioners appointed by the governor. For­
eign officer taking affidavit must attach seal which fact must be
recited in the jurat.
Aliens. “Foreigners who are, or may hereafter become, bona fide
residents of this State, shall enjoy the same rights in respect to the
possession, enjoyment, and inheritance of property as native-born
citizens.”—Sec. 34, Const.
Alterations. When a negotiable Instrument is materially altered
without the assent of all the parties liable thereon, it is voided
except as against a party who has himself made, authorized, or
assented to the alteration and subsequent endorsers. But when an
Instrument has been materially altered and is in the hands of a holder
in due course, not a party to the alteration, he may enforce payment
thereof according to its origjnal tenor. Material alterations consist
of any changes in date; sum payable Interest on principal; time or
place of payment; number and relation of parties; medium or currency
in which payment is to be made.
Arbitration. Courts are compelled by statute to make an order
submitting cases for arbitration when moved for by the parties, and


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Blue Sky Law. It is unlawful to sell or offer for sale in this
State any speculative securities without first obtaining permit from
the State Securities Commission.
Collaterals. Receipt must be given if demanded. Pledges or col­
laterals not transferable without transfer of the debt; after two days
notice in writing collaterals may be sold, by advertising for five days
at public outcry.
Conditional Sales are good between the parties, but void where
personal property delivered to vendee as against purchasers for a
valuable consideration, mortgages and Judgments creditors, without
notice, unless in writing and recorded in the office of the probate
Judge.
Conditional contracts of sales must be recorded In office of the
Judge of Probate of the county in which the property Is located,
to be valid against subsequent purchasers, judgment creditors, or
mortgagees without notice, except in counties having a population
of more than 80,000 when contract is for a less amount than *200.00.
If the property is removed to another county, contract must be
recorded in latter county within three months after removal.
Conveyances. All persons of the age of twenty-one years, not
laboring under some legal disability, may convey their real estate or
any interest therein by instrument in writing signed by the grantor
or his agent duly authorized in writing, and attested by one witness, or
If the grantor cannot write, by two witnesses who are able to write,
and who sign their names as witnesses. If the grantor is not able to
sign his name it must be written for him, and the words “his mark”
written over or against it. The person writing his name must sign
as a witness. A parol lease for less than one year is valid. A married
woman over eighteen years of age may convey dower in her husband’s
lands, and has generally the same rights as married women over twentyone years of age. The husband must join in any conveyance of the
wife’s separate estate. Conveyances, to operate as notice, must be
acknowledged and recorded. General acknowledgment must be
signed to make instrument self-proving. Married women must
acknowledge twice,in the event the homestead is conveyed. Form
of general acknowledgment is as follows:
The State of Alabama........................... County
1............................................................................................ a (style of officer).
hereby certify that......................................................... whose name is signed
to the foregoing conveyance and who is known to me, acknowledged
before me on this day, that, being informed of the contents of the
conveyance, he executed the same voluntarily on the day the same
bears date. Given under my hand and seal, this.................... day of
.....................A. D
(Seall

2205

'

Notary Public

2206

BANKING AND COMMERCIAL LAWS—ALABAMA

No time is required within which conveyances shall be recorded.
They operate as notices from date of delivery to probate judge for
record. (See Acknowledgments.) They may be used as evidence
without further proof of execution. Leasehold estates may be
created to last not exceeding twenty years, but if longer void as to
excess. A married woman must make the following acknowledgment
to a conveyance of a homestead:
State of.................... . County of.....................
I............................ judge of................. (or other officer) do hereby certify
that, on the.................... day of............................ 19........... came before me
the within named................................................ known to me (or made
known to me) to be the wife of the within named....................................
who, being examined separate and apart from her husband touching
her signature to the within...................... acknowledged that she signed
the same of her own free will and accord, and without fear, constraint,
or threats on the part of her husband.
In witness whereof, 1 hereto set my hand and official seal this
........................day of.......................... 19. ...
(Official Character.)
Corporation to make following acknowledgment:
.................................................... that......................................................................
whose name as.........................................of the said corporation, is signed
to the foregoing conveyance, and who is known to me, acknowledged
before me on this day that, being informed of the contents of the
conveyance, he, as such officer, and with full authority, executed the
same voluntarily for and as the act of said corporation.
Corporations. Every company, corporation, or association, not
organized under the laws of Alabama, engaged in any other business
than insurance, shall, before engaging in any business in this State,
file in the office of the secretary of state, at the capitol in Montgomery,
an instrument in writing under the seal of such company, corporation,
or association, and signed officially by the president and secretary
thereof, designating at least one known place of business in this State,
and an authorized agent residing thereat. If such corporation is
engaged in any business of insurance, the statement must be filed in the
office of the insurance commissioner. If the agent is changed, a new
paper must be filed. Held not to apply to corporations selling goods
by travelling agent or sample. Foreign corporations transacting busi­
ness in this State without complying with above provisions for each
offense forfeit to the State $1,000, and any person acting as agent for
foreign corporation that has not so complied, forfeits for each offense
$500. All foreign corporations doing business in this State are
required to pay license fees ranging from $25 upward, according to
capital. Foreign corporations can do no business until fees are paid
and all contracts before then are void. Every foreign corporation
required to procure from secretary of state a permit to do business
in the State. This permit costs $10 per annum.
Courts. Terms and jurisdiction. The supreme court, except to
issue writs of injunction, habeas corpus, quo warranto, and other
remedial and original writs necessary to its supervision of inferior
courts, and impeachments of judicial officers, has only appellate juris­
diction and cases are tried on the record sent up. Court of appeals
has final appellate jurisdiction in the following cases: 1. When
the amount involved exclusive of interest and costs does not exceed
the sum of $1,000. 2. Of all misdemeanors, including the violation
of town and city ordinances, bastardy, habeas corpus, and all felonies,
where the punishment has been fixed at twenty years or under.
Circuit courts have unlimited common law jurisdiction when the
matter or sum in controversy exceeds $50, and exclusive jurisdiction
of libel, slander, assault and battery, and ejectment. Circuit Courts
are held twice each year in every County and exercise full jurisdiction
in equitable and common law actions, though pleadings and procedure
are not affected by consolidation of the two systems. Justices of the
peace have jurisdiction of all civil causes where the amount in con­
troversy does not exceed $100 in value, except in cases of libel, slander,
assault and battery, and ejectment. Names of all parties, plaintiff
and individual names of co-partners, must be set out in writs.
Partnership may be sued in courts of law, in firm name, without setting
forth names of co-partners, but judgment in such suits bind only
partnership’s property, not that of individual partners. The writ
may be served upon any one of the partners; the judgment reaches
the partnership property alone. Any one partner, or his personal
representative, may be sued alone on a partnership obligation. Non­
residents must give security for costs when suit is commenced or
within such time thereafter as the court may direct. Money may
toe deposited with the clerk instead of sureties.
Days of Grace are abolished. (See Negotiable Instruments.)
Depositions. In cases at law, depositions may be taken of wit­
nesses who cannot be present at the trial in the following cases:
When the witness is a female; when the witness is too sick to attend
court; when the witness resides more than 100 miles from the place of
trial, or is absent from the State; when the witness is about to leave
the State, and not return in time for the trial; when the witness is the
sole witness of the facts; when the witness is one of the officers desig­
nated in Code No. 4030. Affidavit must be made of one of the above
facts, and of the materiality of the witness. May be taken on inter­
rogatories by a commissioner appointed by the court for that purpose.
The commissioner may be any suitable person, need not be an officer.
In equity suits, where witnesses live within 100 miles of the place of
trial, depositions may be taken by oral examination before the regiter, or a special examiner, or commissioner appointed for the purpose.
Descent and Distribution. The real estate of persons dying
Intestate, in this State, descends, subject to the payment of debts and
the widow’s dower as follows: First to the children of the intestate
or their descendants per stirpes in equal parts. Next, to the parents,
if they survive, in equal parts. If only one parent survives, then
one-half to such parent and one-half to the brothers and sisters of the
deceased or their descendants, and if there be no brothers and sisters
and their descendants, then the whole estate shall go to the surviving
parent. If there are no children or their descendants, and no father
or mother, then to the brothers and sisters of the intestate, or their
descendants, in equal parts. If there are none of the above to take,
then the whole to the husband or wife of the intestate, and if there be
no husband or wife or none of the foregoing living, then to the next
of kin in equal degree in equal parts. If there are no next of kin
it escheats to the 8tate. The personal estate is distributed the same
as the real estate, except that if there are no children the widow is
entitled to all of the personal estate. If but one child she takes onehalf. If not more than four children to a child's part and if more
than four to one-fifth. Posthumous children take as others. Illegiti­
mate children inherit from their mother. The husband upon the
death of the wife is entitled to half of her personal estate absolutely,
and to the use of all of her real estate for life, unless he has been divested
of all control over her estate by a degree of the chancery court.
Damages recovered by personal representative for death of deceased
are distributed according to statute of distribution and are exempt
from payment of debts.
Discovery. Either party to a suit at law or in equity may examine
his adversary by filing written interrogatories and making affidavit
that answers will be material evidence for him.
Dower. Unless the wife has relinquished her right of dower in the
manner provided by statute she is, upon the death of the husband,
entitled to dower in all lands of which the husband was seized in fee
during the marriage, or of which another was seized to his use or to
which he had a perfect equity having paid all the purchase money
therefor. The dower interest is one-hair when the husband leaves no
lineal descendants, and one-third when the estate is insolvent or the
husband leaves children or their descendants. If the wife has at the
death of the nusbana a separate estate equal in value to her dower
interest, she shall not have dower, and if of less value is only entitled
to such amounts as with her estate will make the full value of the dower.


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Executions. Property subject to; 1st: On real property to
which the defendant has a legal title or a perfect equity, having paid
the purchase money, or in which he has vested interest, in possession,
reversion, or remainder, whether he has the entire estate, or is entitled
to it in common with others. 2d: On personal property of the defen­
dant (except things in action), whether he has the absolute title there­
to, or the right only to the possession thereof for his own life, the life
of another, or a less period. 3d: On an equity of redemption in either
land or personal property, when any interest less than the absolute
title is sold. The purchaser is subrogated to all the rights of the
defendant, and subject to all his disabilities. Writ of fieri facias is a
lien only within the county in which it is received by the officer, on
lands and personalty of defendant subject to levy and sale, from the
time only that the writ is received by such officer and continues as
long as writ is regularly delivered to the sheriff without the lapse of an
entire term. A statement of a judgment certified by the clerk of the
court may be filed in the office of the judge of probate, which makes
the judgment a lien within the county in which it is filed for ten years
thereafter. Execution may be issued on such judgment at any time.
Executions issued by justices are liens on the property of the defen­
dant, on which they are levied, from the time of the levy. An order
must be obtained from the circuit court for the sale of lands levied on
under execution from a justice’s court. No stay of execution in circuit
court except by appeal, and supersedeas bond which delays collection
until affirmance by supreme court, and entails 10 per cent damages,
with legal interest and costs. In justice's court stay is granted on
good security, below $20, thirty days over $20, sixty days.
Exemptions. Homestead not exceeding 160 acres or $2,000 in
value.
Personal property to the amount of $1,000. Exemptions of personal
property may be waived by instrument in writing except as to certain
household furniture and provisions and wages to amount of $25.00
per month.
Fraud. Obtaining money or goods on credit under false color or
pretense of carrying on business, or under false representation of
pecuniary condition, with intent to defraud, or bringing into the State
money or goods so obtained, punished as larceny.
Statute of Frauds. In the following cases, every agreement, or
note or memo thereof, expressing the consideration, is in writing and
signed by the party to be charged: 1st. Every agreement which by
its terms is not to be performed within one year from the making
thereof. 2d. Every special promise by an executor or administrator
to answer damages out of his own estate. 3d. Every special promise
to answer for the debt, default, or miscarriage of another. 4th. Every
agreement, promise, or undertaking, made upon consideration of
marriage, except mutual promises to marry. 5th. Every contract
for the sale of lands, tenements, or hereditaments, or of any interest
therein, except leases for a term of not longer than one year, unless
the purchase money, or a portion thereof, be paid and the purchaser
be put in possession by the seller.
Garnishment may issue in any case after suit commenced upon
affidavit of necessity and bond as in attachment cases, or after judg­
ment. without bond.
Holidays. The following are the legal holidays: Sunday, Christmas
Day, first day of January, nineteenth day of January, twenty-second
day of February, Mardi Gras Day, which is Tuesday before Ash
Wednesday, thirteenth day of April, twenty-sixth day of April, third
day of June, fourth day of July, first Monday in September, second
Tuesday in October, eleventh day of November, and the day desig­
nated by tne governor for public thanksgiving.
If Christmas Day, or 1st of January, or 19th of January, or 22nd
of February, or 13th of April, or 26th of April, or 3rd of June, or
4th of July, or 11th of November falls on Sunday the following Mon­
day is a holiday.
Husband and Wife. The wife has full legal capacity to contract
as if she were sole, except that she can not alienate or encumber her
real estate without the husband joining in the conveyance, unless the
husband be insane or has abandoned her, or is a non-resident, or is
imprisoned under a conviction for crime for a period of two years or
more, in which cases the wife may convey it as if she were sole.
Husband and wife may contract with each other, but the wife can­
not be surety for the husband. All of the property and the earnings
of the wife are her separate estate, and are not liable for the debts of
the husband. The wife must sue and be sued alone for all matters
relating to her separate estate or contracts, and for all torts to her
person or property. Divorce bars dower and husband’s courtesy.
Interest. Legal rate is 8 per cent, and same is allowed on all open
accounts, judgments, and decrees. Usury forfeits all interests and
any sums paid as interest on an usurious contract shall be credited on
the principal.
Judgments of courts of record are proved by a certified transcript.
Judgment not a lien, but when a ceritfled statement thereof, made by
the clerk of the court is filed in the office of the probate judge, it
becomes a lien on all property of the defendant therein in the county,
which is subject to execution for ten years, to enforce which execution
may issue at any time within that period. Execution received by
sheriff during life of defendant may be levied after his decease or alias
execution issued and levied if there has not been lapse of entire term
do as to destroy lien originally created. Above applies to executions
from circuit and chancery courts. An execution issued by a justice
of the peace is a lien only from time of its levy. All agreements to
confess judgment, or to authorize another to confess judgment, made
before the commencement of the suit in which such judgments are
so confirmed are void.
Mechanics’ Lien.
Contractors, including subcontractors,
mechanics, material men, and laborers have a lien on houses built
and the ground on which they stand upon complying with the law.
Lien for Rent. The landlords of any store house, dwelling house,
or other building, shall have a lien on the goods, furniture and effects
belonging to the tenant, and sub-tenant for his rent, which shall be
superior to all other liens, except those for taxes, also on crops grown
on rented premises for rent of the current year
Limitations. Notes and stated accounts, six years; open accounts,
three years; sealed instruments, real actions, and motions against
officers, ten years; judgments, twenty years; actions on the case, one
year. Bar created by statute can only be removed by a partial pay­
ment, made on the contract before the bar is complete, or by an uncon­
ditional promise in writing. If anyone entitled to bring an action,
or make an entry on land, or defense founded on title to real estate,
be at the time such right accrues, within the age of twenty-one years,
or insane or imprisoned on a criminal charge for a term less than life,
he shall have three years, or the period allowed by law, for bringing
such action, if the period allowed by law be less than three years, after
the termination of such disability to bring such suit, etc., but no action
can be commenced after twenty years. Statutes of limitation apply
to married women’s separate estates. Actions founded on a promise
In writing not under seal, or for trespass to person or property, must
be brought within six years. Statutes of limitation are made appli­
cable to equitable as well as legal demands, but do not run against direct
trusts. Any agreement or stipulation to shorten the period prescribed
by law for the bringing of any action is void. Actions seeking relief
on the ground of fraud where the statute created a bar. the cause of
action begins to run upon discovery of the fraud by aggrieved party.
No promise or acknowledgment is sufficient to remove the bar to
suit, except a partial payment made upon the contract by the party
sought to be charged before the bar is complete, or an unconditional
promise in writing, signed by the party to be charged thereby.
Married Women. (See Husband and Wife.)
Mortgages are executed and acknowledged in the same manner as
deeds. May be foreclosed by bill in equity, or if there be a provision
to that effect, by sale under power, upon such default as authorized

BANKING AND COMMERCIAL LAWS—ALASKA
a sale. All mortgages are void against creditors or purchasers withou
notice, unless recorded. Mortgages operate as notice from day of
delivery to probate judge for record. There is no fixed time within
which they shall be recorded. Homestead realty cannot be mort­
gaged or otherwise aliened without the voluntary signature and assent
of wife, evidenced by acknowledgment, upon private examination
separate and apart from the husband, and certified. All mortgages
must be in writing, signed by the mortgagor. Payment of mortgage
debt made before or after maturity of debt, revests in the mortgagor,
or his assigns, the title to the real or personal property mortgaged, if
made in the lifetime of the mortgagor; if made after his death, such
payment revests title to personal property in the personal representa­
tive, and title to realty in the heirs, devises, or legatees of the mortga­
gor. Chattel mortgages must be in writing. When the mortgagor
Is sued by the mortgagee for possession of the mortgaged property,
he may defend by showing payment of the debt, or part payment and
a tender of the balance, or may pay it after judgment.
Negotiable Instruments. Must be payable in money and must
contain an unconditional promise to pay a sum certain on demand or
at a fixed or determinable future time; must be payable to a specified
person or bearer; may be in installments and contain provision that
on any default the whole shall become due; with exchange fixed or
current rate, Interest, and attorney’s fees for collection; may authorize
sale of collaterals but cannot authorize confession of judgment if it
reads, “I promise to pay” all signers are jointly and severally liable;
may be payable at fixed time after date or sight, or after specified
certain event, but not upon a contingency; can waive exemption from
execution; need not specify value given nor place where drawn or
payable; if issued, accepted, or endorsed when overdue it is payable
on demand; may be payable to two or more payees jointly, or one or
more of several payees, or to the estate of a deceased person; absence
or failure of consideration a defense against one not a holder in due
course and partial failure a defense pro tanto. One not a party to
instrument placing a signature in blank before delivery becomes an
endorser. Every endorser engages that on due presentment it shall
be honored or that he will pay the amount to holder or any subsequent
endorser who may be compelled to pay; no days of grace; when
maturity falls on Sunday or holiday payment is due on next business
day; if due on Saturday must be presented on next business day. but
if payable on demand holder may present same before noon on Satur­
day. Fraud and circumvention in procuring execution of instrument
is a defense against any holder.
Partition. Partition of real or personal property may be made,
upon application of any tenant in common in either Courts of Probate
or Courts of Equity, and may be sold for division if it can not be
equitably divided.
Powers of Attorney. Powers of attorney or other Instruments
conferring authority to convey property must be proved or acknowl­
edged in the same manner and must be received as evidence to the
same extent as conveyances (see Conveyances), and msut be executed
as conveyances. A power of attorney to relinquish dower must be
executed by husband and wife jointly. Her signature must be
acknowledged as required for conveyances of land.
Presentment. Is not necessary to charge one primarily liable
except in case of bank notes; if payable at special place ability and
willingness to pay it there at maturity is equivalent to a tender: if
not on demand it must be presented on day it falls due, if on demand
then within a reasonable time after its issue, except a bill of exchange
must be presented within reasonable time after its last negotiation.
Probate Law. A court of probate, consisting of one judge, is
established for each county in the State. This court has jurisdiction
of the probate of wills, of granting letters testamentary and of admin­
istration, and the repeal of revocation of the same; of the settlements
of accounts of executors and administrators, of the sale and disposition
of the real and personal property belonging to, and the distribution of,
intestates’ estates. Also of the appointment, removal, and settlements
of guardians for minors and persons of unsound mind, the binding out
of apprentices, the allotment of dower, and the partition of land belong­
ing to joint owners. A court of probate must be held at the court
house of each county on the second Monday of each month, and the
judge may hold special or adjourned terms whenever necessary, but
such court must at all times be considered open, except on Sundays.
It also keeps a record of deeds, mortgages, and instruments entitled
to record.
Promissory Note. Must be unconditional promise in writing to
pay on demand or at fixed or determinable time a sum certain in money
to order or bearer, and where drawn to maker’s own order is not com­
plete until endorsed by him; may be in installments.
Protest. (See Negotiable Instruments.)
Protest of Foreign Bills. May be made by notary public or by
any respectable resident of the place in presence of two or more credible
witnesses; bill of exchange does not operate to assign funds in hands
of drawee and he is not liable unless he accepts.
Replevin. Writ of replevin lies to recover property in custody of
an officer of the law, and is limited to this. The action of detinue
lies to recover personal property in all other instances.
.
Sales in Bulk. Sales of all or substantially all of stock of mer­
chandise except in regular course of trade is prima facie fraudulent
and void against creditors unless they are notified in writing prior to
the sale in manner prescribed by statute.
Taxes become due October 1st, and delinquent on the 31st of
December of the year for which they are levied and lands may be
sold by proceedings had in the Probate Court commenced in the
month of March following the due date of taxes provided the personal
property is insufficient to pay taxes. The rate of taxation is 6{ mills
or sixty-five cents on each $100.00 on amounts assessed. This is for
State purposes only. Municipalities may levy taxes at the rate of
fifty cents on each $100.00 except, that certain named municipalities
of the larger class may levy a larger amount by special constitutional
provision. Counties may levy similar amount to the municipalities
except that certain special taxes varying in different counties are
levied in addition. Assessments based on 00% of the valuation of
the property. Counties may vote additional levies for specific
purposes and may secure the same by bonds. The purchaser of lands
sold for taxes receives from the tax collector a certificate of purchase
showing a description of the property, the date and amount of assess­
ment, the taxes, costs, and fees, etc., and after the expiration of two
years from the date of sale, the purchaser may get a deed from the
Judge of Probate. The delinquent tax payer, has two years from
date of sale in which to redeem. After purchaser goes into possession
under a deed and keeps possession for three years recitals in the deed
are held to be true and cannot be disproved. On redemption, the
person redeeming pays the amount of taxes for which the land sold,
costs of sale, with interest at 15% per annum and all taxes paid sub­
sequent to the sale by the purchaser with interest thereon at 8% per
annum. Wherever land is sold for state or county taxes, and from
any cause such sale is invalid to pass title to purchaser, sale operates
as transfer to purchaser of lien of state or county, on the property for
payment of taxes for which sold. All cotton factories or cotton mills
which shall be constructed in this State within five years shall be
exempt from taxation for a period of ten years, provided such mills
represent an investment of $50,000.
Wills. AH wills of real or personal property must be in writing
signed by the testator and declared his last will and testament in the
presence of two witnesses who must sign as witnesses in the presence
of testator. Unwritten will of personal property valid only when
the property does not exceed $500 in value, and must be made dur­
ing last sickness by testator at his home. Persons present must
be called on to witness tnat it is testator’s will and must be re­
duced to writing by one of the witnesses within six days. Minor
over eighteen may make a will of personal property. No will effective
until probated. May be contested in probate or chancery court.


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2207

SYNOPSIS OF

THE LAWS OF ALASKA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by R. E. Robertson, Juneau, Alaska (see card in Attor­
neys List)
Acknowledgments. (See Deeds.)
Actions. The distinction between actions at law and suits in
equity and all forms of pleading heretofore existing in actions at law
and suits in equity are abolished, and there is but one form of action,
denominated a civil action, for the enforcement or protection of pri­
vate rights and the redress or prevention of private wrongs. Every
action must be prosecuted in the name of the real party in interest,
except that an administrator or executor, a trustee of an express trust,
or a person expressly authorized by statute may sue without joining
with him the person for whose benefit the action is prosecuted; but
the assignment of a thing in action not arising out of contract is not
authorized.
Affidavits. An affidavit or deposition taken out of Alaska, other­
wise than upon commission, must be authenticated as follows: 1.
It must be certified by a commissioner appointed by the governor of
Alaska to take affidavits and depositions in the state, territory, district
or country where taken; or, 2, it must be certified by a judge of a
court of record having a clerk and a seal to have been taken and sub­
scribed before him at a time and place therein specified, and the
existence of the court, the fact that such judge is a member thereof
and the genuineness of his signature must be certified by the clerk
of the court, under the seal thereof. In all affidavits or depositions
witness should speak in the first person.
Aliens. Any alien who is a bona fide resident of the United States,
or who has declared his intention to become a citizen, or whose rights
are secured by treaty, may acquire and hold lands upon the same terms
as a citizen. Any alien may acquire lands by inheritance or in the
ordinary course of justice in the collection of debts, and may acquire
and enforce liens upon lands, but such lands must be sold within ten
years. Any alien may also acquire and hold lots or parcels of land
in any incorporated or platted city, town, or village, or in any mine
or mining claim, but is not authorized to acquire title from the United
States to any of the public lands.
Arrest. The defendant may be arrested in the following civil
actions: 1. For the recovery of money or damages when the de­
fendant is about to remove from the district with intent to defraud
his creditors; for an injury to person; or for willfully injuring or wrong­
fully taking, detaining, or converting property. 2. For a fine or
penalty; or for money or property embezzled or fraudulently mis­
applied or converted to his own use by a public officer, or by an attor­
ney, or by an officer or agent of a corporation in the course of his
employment as such, or by any agent, broker, or other person in a
fiduciary capacity or for misconduct or neglect in office or in a profes­
sional employment. 3. To recover the possession of personal
roperty unjustly detained, when the property or any part thereof
as been concealed, removed, or disposed of, so that it cannot be
found or taken by the marshal, and with intent that it should not be
so found or taken, or with the intent to deprive the plaintiff of the
benefit thereof. 4. When the defendant has been guilty of fraud in
contracting a debt, or incurring the obligation for which the action is
brought, or in concealing or disposing of the property for the taking,
detention, or conversion of which the action is brought. 5. When
the defendant has removed or disposed of his property, or is about to
do so, with intent to defraud his creditors.
Attachment. The plaintiff, at the time of issuing the summons
or afterwards, may have the property of defendant attached in an
action upon a contract, express or implied, for the direct payment of
money, and, I, which is not secured by mortgage, lien, or pledge upon
real or personal property, or if so secured, when the security has been
rendered nugatory by the act of the defendant; or, 2, against a non­
resident defendant. The writ issues whenever the plaintiff, or any­
one In his behalf, files an affidavit showing that defendant is indebted
to plaintiff (specifying the amount of indebtedness over and above all
legal set-offs or counter-claims) upon a contract, express or implied,
for the direct payment of money; that the payment has not been
secured by mortgage, lien, or pledge upon real or personal property;
and that the sum for which attachment is asked is an actual, bona fide
existing debt due and owing from plaintiff to defendant; and that the
attachment is not sought nor the action prosecuted to hinder, delay,
or defraud any creditor of the defendant. Plaintiff must also file an
undertaking, with one or more sureties, in a sum not less than $100,
and equal to the amount for which he demands judgment, conditioned
that plaintiff will pay all costs adjudged and all damages sustained
by reason of the attachment if the same be wrongful or without suffi­
cient cause, not exceeding the amount specified.
Chattel Mortgages. Any interest in personal property, capable
of being transferred, may be mortgaged; but the mortgage is void as
against creditors and subsequent purchasers and incumbrancers in
good faith and for value, unless possession of the property be delivered
to and retained by the mortgager or the mortgage provide that the
property may remain in the possession of the mortgagor and be ac­
companied by the affidavit of all the parties thereto that the same is
made in good faith to secure the amount named therein, and without
design to hinder, delay, or defraud creditors, and be acknowledged
and filed. The mortgage must be acknowledged by the mortgagor
as a conveyance of real property is and be filed in the office of the
recorder of the precinct where the mortgagor resides and of the pre­
cinct where the property is. Within thirty days next preceding the
expiration of one year from the filing, a true copy of the mortgage,
with a verified statement of the interest of the mortgagee in the prop­
erty at the time the same is renewed, must be filed in the office where
the original was filed, and the lien is thereby extended another year.
Chattel mortgages are foreclosed in the same manner as mortgages
and liens upon real property, but a clause may be inserted in a mortgage
authorizing the marshal to execute the power of sale therein granted
to the mortgagee.
Corporations. Domestic Corporations. Three or more adult per­
sons, bona fide residents of the district, may form a stock corporation
for any lawful purpose, whose chief business shall be in the territory,
except for purposes of banking, insurance, brokerage, or loan, trust
and guaranty associations.
Foreign Corporations. Every corporation or joint stock company
organized under the laws of the United States or any state or territory
shall, before doing business within the district, file in the office of the
secretary of the district and in the office of the clerk of the district
court for the division wherein it intends to carry on business a duly
authenticated copy of its charter or articles of incorporation, and of
any amendments thereto, and also a financial statement, giving
certain statutory information, verified by the oath of its president
and secretary and attested by a majority of its board of directors.
Thereafter such statement must also be so filed within sixty days after
January first of each year. The corporation must also file in the same
offices the appointment and consent of a resident of Alaska upon whom
service of statutory process may be made.

2208

BANKING AND COMMERCIAL LAWS—ALASKA

Deeds. A conveyance of lands, or of any estate or interest therein,
may be made by deed, signed and sealed by the person from whom
the estate or interest is intended to pass, and acknowledged or proved,
and recorded, without any other act or ceremony. A quit-claim deed
passes all the estate which the grantor could convey by deed of bargain
and sale. No covenants are implied in any conveyance. The term
"heirs." or other words of inheritance are not necessary to create or
convey an estate in fee simple. W ife may convey her lands without
joinder of husband. Within the district deeds must be executed in
the presence of two witnesses, who shall subscribe their names as
such; and the person executing a deed may acknowledge the execu­
tion before a judge, clerk of the district court, notary public, or com­
missioner within the district, and the officer taking the acknowledg­
ment must indorse thereon a certificate of acknowledgment and the
truejdate of making the same under his hand.
Depositions. The testimony of a witness, in the district, may be
taken by deposition, in an action, at any time after the service of
the summons or the appearance of the defendant, and in a special
proceeding after a question of fact has arisen, when, 1, the witness is
a party to the action or proceeding, by the opposite party; 2, the
witness’s residence is more than one hundred miles from the place of
trial; 3, the witness is about to go more than one hundred miles beyond
the place of trial; 4, the witness is too infirm to attend the trial; or, 5,
the testimony is required upon a motion, or in any other case where
the oral examination of the witness is not required.
The testimony of a witness, out of the district, may be taken by
deposition, by commission issued, upon eight days’ notice to the otner
party, by the clerk of the court, or justice of the peace in a cause in his
own court, to a person agreed upon by the parties, or, if they do not
agree, to a judge, justice of the peace, notary public, or clerk of a
court selected by the officer issuing the commission.
The amount of the commissioner’s fees should be indorsed upon the
deposition.
Descent and Distribution. The real property of an intestate
deposition, by commission issued, upon eight days’ notice to the other
to the issue of any deceased child by right of representation; and
If there be no child of intestate living at the time of his or her death,
to all his or her other lineal descendants; and if all such descendants
are in the same degree of kindred to the intestate, they take equally;
otherwise, by representation. 2. If intestate leave no lineal descend­
ants, to his wife; or if intestate be a married woman, to her husband;
and if intestate leave no wife nor husband, to the parents equally
or the survivor. 3. If intestate leave no lineal descendants, neither
husband nor wife, nor parents, such real property descends in equal
shares to his brothers and sisters, and to the issue of any deceased
brother or sister by right of representation. 4. If intestate leave
no lineal descendants, neither nusband nor wife, nor father, mother,
brother, nor sister, such real property descends to his next of kin
In equal degree, excepting that when there are two or more collateral
kindred in equal degree but claiming through different ancestors,
those who claim through the nearest ancestor are preferred. 6. If
Intestate leave one or more children, and the issue of one or more
deceased children, and any of such surviving children die under
age without having been married, all such real property that came
to such deceased child by inheritance from such intestate descends
in equal shares to the other children of such intestate and to the issue
of any other children who have died, by right of representation. But
if all the other children of intestate be dead, and any of them have
left issue, such real property so inherited by such deceased child
descends to all the issue of such other children of the intestate in
equal shares, if they are in the same degree of kindred to such deceased
child; otherwise, they take by right of representation. 7. If intes­
tate leave no lineal descendants or kindred, such real property escheats
to the territory of Alaska.
Dower and Curtesy. The widow of every deceased person is
entitled to dower, or the use during her natural life of one-third part
in value of all the lands whereof her husband died seized of an estate
of inheritance.
When wife dies seized of any estate of inheritance in lands, the
husband, on the death of his wife, holds the lands for his life as tenant
thereof by the curtesy, although such husband and wife may not
have had issue born alive.
Evidence. No person may be excluded as a witness on account of
being a party or interested in the event of an action or proceedings,
having been convicted of a crime, or his opinions on matters of religious
belief. Persons of unsound mind and children under ten years of age
who appear incapable of receiving just impressions of the fact respect­
ing which they are examined or of relating them truly may not be
witnesses. An attorney may not, without his client’s consent, be
examined as to communications made by his client to him or his advice
thereon. A priest may not, without the consent of the person making
the confession, be examined as to any confession made to him in his
professional capacity, in the course of discipline enjoined by the church
to which he belongs. A physician or surgeon may not, against the
objection of his patient, be examined, in a civil action; or proceeding,
as to information acquired in attending the patient which was neces­
sary to enable him to prescribe or act.
Executions. (See Judgment and Execution.)
Executors and Administrators. When a will is proven letters
testamentary are issued to the persons therein named as executors,
or to such of them as give notice of their acceptance of the trust and
are qualified. Administration is granted as follows: 1. To the widow
or next of kin, or both, in the discretion of the court; 2. To one or
more of the principal creditors; or, 3, to any other person competent
and qualified whom the court may select. If deceased were a married
woman administration shall in any case be granted to the husband;
if qualified, and he apply therefor within thirty days. Claims are
paid in the following order: 1. Funeral charges. 2. Taxes due the
United States. 3. Expenses of last sickness. 4. All other taxes.
5. Debts preferred by the laws of the United States. G. Debts which
at the death of the deceased were a lien upon his property, in the
order of the priority of the liens. 7. Debts due for wages earned
within ninety days immediately preceding death of decedent. 8. All
other claims.
Exemptions. 1. Earnings to amount of Si 00 of judgment debtor,
for personal services rendered within thirty days next preceding the
levy of execution or attachment, when necessary for the use of his
family supported in whole or in part by his labor. 2. Books, pictures,
and musical instruments owned by any person, to the value of $75.
3. Necessary wearing apparel owned by any person for the use of
himself or family, but watches or jewelry exceeding $i00 in value
are not exempt. 4. The tools, implements, apparatus, team, vehicle,
harness, or library necessary to enable any person to carry on the
trade, occupation, or profession by which such person habitually
earns his living, to the value of $500; also sufficient quantity of food
to support such team, if any, for six months; the word "team” being
construed to include not more than one yoke of oxen, or a span of
horses or mules, or two reindeer, or six dogs. 5. The following prop­
erty, if owned by the head of a family and in actual use or kept for
use by and for his family, or when being removed from one habitation
to another on a change of residence; Ton sheep, with one year’s fleece
or the yarn or cloth manufactured therefrom; two cows and five
swine; household goods, furniture, and utensils to the value of $300;
also food sufficient to support such animals, if any, for six months,
and provisions actually provided for family use and necessary for the
support of such person and family for six months. G. The seat or
pew occupied by the head of a family or his family in a place of public
worship. 7. All property of any public or municipal corporation.
No article, or the proceeds derived from its sale or exchange, is exempt
from execution on a judgment recovered for its price.
Garnishment. (See Attachment.)


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Holidays. The law concerning legal holidays in the Territory
has been amended to read as follows:
The following days are legal holidays, namely: Sunday, the first
day of January, commonly called New Year's Day; the 12th day of
February, commonly called Lincoln’s Birthday; the 22nd day of
February, commonly called Washington’s Birthday; the 30th day
of March, to be called Seward’s Day In commemoration of the sign­
ing of the Treaty, ceding Alaska to the United States; the 4th day
of July, commonly called Independence Day; the first Monday in
September, commonly called Labor Day; the 18th day of October,
commonly called Alaska Day; the 25th day of December, commonly
called Christmas Day; and any day designated by public proclama­
tion by the President of the United States or the Governor of the
Territory of Alaska, as a legal holiday, or as a day of Thanksgiving;
the day known and observed as Memorial or Decoration Day and the
day on which a general election is held throughout the Territory
of Alaska.
Homestead. The homestead of any family, or the proceeds
thereof, is exempt. Such homestead must be the actual abode of,
and owned by, such family or some member thereof, and not exceed
$2,500 in value nor exceed 160 acres in extent, if not located in a town
or city laid off into blocks or lots; or if located in any such town or
city, one-fourth of an acre. This exemption does not apply to decrees
for the foreclosure of any mortgage property executed; but if the
owners of such homestead be married, the mortgage must be executed
by husband and wife.
Interest. The legal rate of interest is 8 per cent, but on contract
Interest at the rate of 12 per cent may be charged by express agree­
ment of the parties. If usurious interest has been received or collected
the party paying the same, or his legal representatives, may, by action
brought within two years, recover double the amount of such interest.
If it is ascertained in any action upon contract that an unauthorized
rate of interest has been contracted for, judgment must be rendered
against the defendant for the amount due, without interest, ana
against the plaintiff for costs. If the rate contracted for is 8 per
cent or less, the debtor may also agree to pay the taxes upon the
debt, credit, or mortgage.
Judgment and Execution. A judgment is docketed imme­
diately after entry. At any time thereafter while execution may
Issue a certified transcript of the docket may be filed in the office
of the recorder of any recording district, and from the date of docket­
ing a judgment or transcript thereof the judgment is a lien upon
all the real property of the defendant within the recording district
or districts where docketed, or which he may afterwards acquire
therein during the time an execution may issue. If no execution
issues within ten years the lien expires, but is renewed if afterwards
leave is given to issue execution and a transcript of the docket of
the order docketed with the recorder.
Execution may issue at any time within five years from the entry
of the judgment, and thereafter on order of the court made on motion
of the party In whose favor the judgment was given. Such motion
must be subscribed and verified as a complaint, and summons must
be served upon the judgment debtor or his representatives, to which
he or they may demur or answer. The order made must be dock­
eted as a judgment. Execution may be against the property of the
Judgment debtor, his person, or for the delivery of the possession
of real or personal property, or such delivery with damages. Execu­
tion from the district court is returnable within sixty days; from the
commissioner’s court within thirty days. Until a levy property is
not affected by the execution.
Licenses. (See Taxes.)
Liens. Every mechanic, artisan, machinist, builder, contractor,
lumber merchant, laborer, teamster, drayman, and other person
performing labor upon or furnishing material of any kind to be used
In the construction, development, alteration, or repair, either in whole
or in part, of any building, wharf, bridge, flume, ditch, mine, tunnel,
fence, machinery, or aqueduct, or any structure or superstructure,
has a lien upon the same for the work or labor done or material fur­
nished at the instance of the owner of the building or other improve­
ment or his agent; and every contractor, sub-contractor, architect,
builder, or other person having charge of the work, in whole or in
part, is, for this purpose, deemed the agent of the owner.
Limitations. Civil actions must be commenced within the
following periods after the cause of action accrued: Within ten
years—action for the recovery of real property, or the possession
thereof; upon a judgment or decree of any court of the United States.
or of any state or territory within the United States; upon a sealed
Instrument. Within six years—action upon a contract or liability,
express or implied, except judgment or sealed instrument; upon a
liability created by statute, other than a penalty or forfeiture; for
waste or trespass upon real property; for taking, detaining, or injuring
personal property, including an action for the specific recovery thereof.
Within three years—action against a marshal, coroner, or constable,
upon a liability incurred by the doing of an act in his official capacity
or in virtue of his office, or by the omission of an official duty, including
the non-payment of money collected upon execution, but not an
action for an escape; action upon a statute for penalty or forfeiture,
where the action is given to the party aggrieved, or to such party
and the United States, except the statute prescribe a different limita­
tion. Within two years—action for libel, slander, assault, battery,
seduction, false imprisonment, or for any injury to the person or
rights of another not arising on contract; upon a statute for a for­
feiture of penalty to the United States. Within one year—action
against the marshal or other officer for the escape of a person arrested
or imprisoned on civil process; upon a statute for the penalty given
In whole or in part to the person who will prosecute, but if not com­
menced within one year by private party may be within two years
by the United States.
Married Women. The property and pecuniary rights of every
married woman at the time of marriage, or afterwards acquired
by gift, devise, or inheritance, or by her own labor, are not subject
to the debts or contracts of her husband, and she may manage, sell,
convey, or devise the same by will to the same extent and in the
same manner that her husband can property belonging to him. For
civil injuries damages may be recovered from a married woman
alone, and her husband is not responsible therefor. Contracts may
be made by a wife, and liabilities incurred, and the same enforced
bv* or against her to the same extent and in the same manner as if
she were unmarried. All laws which impose or recognize civil disa­
bilities upon a wife which do not exist as to the husband are repealed.
Wife may record list of her personal property and such list is prima
facie evidence of her separate ownership, and property not so registered
is deemed prima facie the property of the husband. Neither husband
nor wife is liable for the debts or liabilities of the other incurred
before marriage. Husband and wife may make conveyances and
transfers and create liens between themselves, and either may con­
stitute the other his or her attorney in fact. A woman becomes of
age at twenty-one or upon being married according to law.
Mortgages. Mortgages are executed, acknowledged, and recorded
In the same manner as deeds. No covenant is implied for the pay­
ment of the sum intended to be secured. Record of assignment is
not notice to the mortgagor, his heirs, or personal representatives.
Mortgage may be discharged by entry in margin of record signed by
mortgagee or his personal representative or assignee and witnessed
by the commissioner or deputy, or by certificate executed and ac­
knowledged as other conveyances. Foreclosure is by action of an
equitable nature in which a deficiency judgment may be had.
Notes and Bills of Exchange. Uniform negotiable instruments
act is in effect.
Records. An unrecorded conveyance of real property is void
as against any subsequent Innocent purchaser in good faith and for

BANKING AND COMMERCIAL LAWS—ARIZONA
a valuable consideration whose conveyance is first duly recorded.
A commissioner is ex-officio recorder of a recording district, the
boundaries of which are fixed by the court. Conveyances of lands
not in any recording district are recorded with the clerk of that divi­
sion of the district court within the limits of which such lands are
situated.
Replevin. The plaintiff, at any time after the commencement
of an action to recover the possession of personal property and before
Judgment, may claim the immediate delivery of such property upon
filing an affidavit showing that he is the owner of the same or entitled
to the possession thereof; that the property is unlawfully detained
by defendant; the alleged cause of detention; that the same has not
been taken for a tax assessment or fine, pursuant to a statute, or
seized under an execution or attachment against the property of
the plaintiff; or, if so seized, that it is exempt; and the actual value
of the property.
Service. (See Actions.)
Supplementary Proceedings. (See Judgment and Execution.)
Taxes. No general property tax except in Municipal corporations,
but both the United States and the territory levy and collect license
taxes upon occupations and businesses, the amount of which differs
on the several different occupations and businesses.
Wills. Every person of twenty-one years of age, of sound mind,
may dispose of all his or her property by will, saving a widow’s dower
and a husband's rights as tenant by the curtesy. Will must be in
writing, signed by the testator, or under his direction, in his presence,
and attested by two or more competent witnesses subscribing their
names In the presence of the testator. A will by an unmarried person
is revoked by his subsequent marriage. Children or descendants
of children not named or provided for in the will take as If testator
had died Intestate. A mariner at sea or soldier in military service
may dispose of his personal property as at common law. Proof
of nuncupative will must be made within six months, and the words
or their substance reduced to writing within thirty days after they
are spoken. A person owning property in, but not an inhabitant
of, the district may devise or bequeath the same according to the
laws of his domicile. If such will be probated without the district,
copies of the will and the probate thereof, certified by the clerk of
the court in which it was probated, with the seal of the court affixed
thereto, if there be a seal together with a certificate of the chief
judge or presiding magistrate, that the certificate Is in due form,
and made by the clerk or other person having the legal custody
of the record, may be recorded, admitted in evidence, or contested
and annulled as if executed and proved within the district.

SYNOPSIS OF

THE LAWS OF ARIZONA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by O. B. Wilson, Attorney at Law, Flagstaff, Arizona.
(See Card in Attorneys List)
Accounts. When stated draw interest;when action is upon open
account and affidavit of party, his agent or attorney, is attached,
stating that such “account is within affiant’s knowledge, just and true,
that it is due, and that all just and lawful offsets, payments and credits
have been allowed,” is prima facie evidence, unless at least one day
before trial, defendant files written denial of any item under oath.
Acknowledgments. The form of an ordinary certificate of ac­
knowledgment shall be substantially as follows;
"State of Arizona,
1 aa
County of.................................................................................... j 8
This instrument was acknowledged before me this................day
of.................... A. D......................... by (if by a natural person or persons
here insert name or names; if by a person acting in a representative
or official capacity, or as attorney in fact, then insert name of person
as executor, attorney in fact, or other capacity; if by an officer or
officers of a corporation, then insert name or names of such officer
or officers as the president or other officer of such corporation, naming
it).
A........................................... B............................................
Notary Public.
(Or other officer)
(My commission expires............................................) ”
Every instrument affecting real property in this state executed,
acknowledged and certified in any other state or territory in accord­
ance with the laws of such state or territory, shall be valid and en­
titled to record as if executed in accordance with the laws of this
state.
Actions. Distinction in forms between law and equity are abol­
ished. Pleadings are; Complaint and answer, and in some cases a
reply.
Administration of Estates. Lie in Superior Court. No public
administrator. Where person dies intestate letters shall issue.
Affidavits. May be taken before any officer authorized to take
acknowledgments.
Aliens. Unless rights are secured by treaty cannot hold land in
the state, may acquire by inheritance, or in ordinary course of Jus­
tice in the collection of debts; may acquire liens on real estate, may
lend money and secure same on real estate, but title so acquired must
be sold within five years; may acquire patented mines and hold
stock in domestic corporation owning unpatented mines.
The laws provide that the laws of the state pertaining to aliens
shall not be construed as to conflict in any manner with any rights
existing under and by virtue of any treaty of the United States with
any other country.
Appenls. Appeals are allowed from justice of peace to superior
court in certain cases and from superior court to supreme court
where amount involved is $200 or over.
Arbitration. There are statutory provisions which are not
exclusive of the common law arbitration.
Arrest. Abolished in civil cases, debtor fraudulently removing
Property out of territory or concealing it may be prosecuted criminally.
Attachment. Writ will issue on affidavit showing: 1. That de­
fendant is indebted to plaintiff upon a contract, express or implied;
for the direct payment of money and that such contract was made
or is payable in this State, and that the payment of same has not
been fully secured by mortgage or lien upon real or personal property,
or pledge of personal property, or if originally so secured, that such
security has, without any act of plaintiff or the person to whom the
security was given, became valueless, and shall specify the character
of the indebtedness, that the same is due to the plaintiff over and
above all legal set-offs or counter-claims, and that demand has been
made for the payment of amount due; or 2. That defendant is indebted


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2209

to plaintiff, stating amount and character of debt; that same is due
and payable over and above all legal set-offs and counter-claims, and
that defendant is a non-resident of this State or is a foreign corporation
doing business in this State; or 3. That the action is brought upon a
judgment of another State or territory of the United States, or of the
District of Columbia; or 4. That an action is pending between the
parties, and that defendant is about to remove his property beyond the
jurisdiction of the court to avoid payment of judgment; and 5. That
the attachment is not sought for a wrongful or malicious purpose, and
that the action is not prosecuted to hinder or delay any creditor of
defendant. No such attachment shall issue until suit has been duly
instituted, but it may be issued in a proper case either at the com­
mencement of the suit or at any time during its progress. The wit
may issue, although plaintiff’s debt or demand be not due and under
specified facts of intent to defraud; no final judgment shall be rendered
until such debt or demand shall become due. Writ may issue at or
after action began upon plaintiff or some one in his behalf filing the
affidavit, and upon filing a bond with two sureties in an amount equal
to amount sued for. Sureties can be compelled to justify upon
notice. When more than one attachment is levied on same property
writs take priority according to time of levy. (See Liens, Garnish­
ment.)
Banks—Savings and Loan. May be incorporated to loan and
Invest property. May hold lot and building in which business is
carried on to value of $100,000; such as may accumulate on good
faith loans and such personal property as may be required in trans­
acting its business. To purchase and convey evidence of debt except
national, territorial, and municipal bonds must have a capital of
$100,000. Married women and minors may transact business with
such banks. Are required to have license and are examined by the
bank examiner. Provisions are made for the contents of the charter.
Bills and Notes. The negotiable instrument code adopted by the
American Bar Association is in force. Joint obligor may be released
without releasing others. (See Holdings.)
Bonds. Any standard surety company, organized under laws of
United States or of any state, may execute bonds in judicial proceed­
ings within the state when they have complied with license laws.
(See Guaranty Companies.)
Chattel Mortgage. To be valid against others than the parties
thereto, chattel mortgage must set out the residence of the mortgagor
and the mortgagee, the sum to be secured, the rate of interest to be
paid and time and place of payment of the debt secured, and be
accompanied by the affidavit of both mortgagor and mortgagee that
the mortgage is bona fide and made without design to defraud or
delay creditors. Void as against creditors of mortgagor and subse­
quent purchasers, mortgagees or lien holders in good faith unless
immediate delivery of the mortgaged property is made to the mort­
gagee and the change of possession is actual and continued, unless the
mortgage or a true "copy thereof shall be forthwith deposited and filed
in the office of the recorder of the county where the property shall
then be situated. Removal sale, or other disposition of mortgaged
property without consent of mortgagee entitles mortgagee to imme­
diate possession of it, and such removal, transfer, or sale, or subsequent
encumbrance is felony. If mortgagee permits mortgaged property to
be removed to another county, he shall within one month record his
mortgage in such other county. Chattel mortgage may be fore­
closed in justice court if amount of debt does not exceed $200; other­
wise in superior court. Mortgagee may obtain possession of property
on default and sell after notice which must be served on owner. Upon
stock of goods, wares, and merchandise with continued possession in
mortgagor, void. If copy is filed with recorder, original must be
acknowledged, and copy certified to by county recorder.
Claim and Delivery. (See Replevin.)
Collaterals. No statutory provisions—common law prevails.
Community Property. (See Conveyances.)
Conditional Sales. Where title remains in vendor until purchase
price is paid, void as to persons not parties thereto, and persons
without notice, unless subscribed, and filed with county recorder.
Contracts. (See Bills and Notes.) One or more obligors on a
Joint or joint and several instrument may be released without releasing
the others, and may be sued separately under certain conditions with­
out releasing the others. Married women may contract as if sole.
Conveyances. Conveyances of estate in lands for term more than
one year shall be by instrument in writing subscribed by party making
it, or his agent, duly authorized thereto by writing. A conveyance is
not effectual against creditors or bona fide purchasers unless recorded
in recorder's office in county where land is situate. A conveyance
purporting to convey a greater estate than the grantor has passes only
the estate that, he actually has. A general grant or devise passes the
fee unless expressly limited to a less estate. All deeds to community
realty must be signed by both husband and wife except as to un­
patented mining claims. Deeds must be signed and must be ac­
knowledged before some officer authorized to take acknowledgment,
and properly certified by him to entitle same to registration. The use
of the word "grant" or “convey” implies the following covenants and
none other
1. That previous to the time of the execution of the
conveyance the grantor has not conveyed the same estate, or any
right, title or interest therein, to any person other than the grantee.
2. That such estate is at the time of the execution of such conveyance
free from incumbrances. Married women IS years of age and upward
may convey their own lands without being joined by their husbands.
(See Acknowledgment, Dower, Husband and Wife, Homestead.)
Corporation Commission, organized under Chapter 90, First
Session. Laws 1912. Has general supervision of corporations.
Corporations in General. Any number of persons may become
incorporated for the transaction of any lawful business. Before com­
mencing any business, they must adopt articles of incorporation
which shall be signed and acknowledged by them as deeds and be
filed in the office of the Corporation commission at the State Capital
and a certified copy thereof filed in the office of the County Recorder,
in each county in the state in which they transact business. The
articles of incorporation must contain: 1. The name, residence and
Post Office address of incorporators, the name of the corporation,
which name shall indicate the character of business to be conducted,
and its principal place of transacting business. 2. The general
nature of the business proposed to be transacted. 3. The amount of
capital stock authorized and the times when and conditions upon
which it is to be paid in. 4. The time of the commencement and
termination of the corporation. 5. By what officers or persons the
affairs of the corporation are to be conducted, and the times at which
they are to be elected. 6. The highest amount of indebtedness or
liability to which the corporation is at any time to subject itself, which
must not exceed two-thirds of its capital stock. 7. Whether private
property is to be exempt from corporate debts. Unless so exempted
stockholders are liable for the debts of the corporation in the pro­
portion which their stock bears to the whole capital stock. Must
be published for six times in some newspaper in the county where
the principal business is located. Proof of publication must be Ted
with the Corporation Commission. Corporations to endure for
twenty-five years. Corporation must file in office of Corporation
Commission an appointment of agent who is a bona-fide resident of
this state for three years prior thereto, on whom all notices and process
including summons, may be served aud constitutes personal service.
Charges for incorporation
Recorder’s fees, 20 cents folio. Recorders
fees, certified copy, 20 cents folio. Recorder’s fees certificate to copy,
75 cents. Corporation Commission’s fees, filing cost copy, $10.
Printers’ fees per inch, publishing articles six days, 80 cents. Corpo­
ration Commission’s fees, filing proof, publishing $3.00. Corporation
Commission’s fees, filing appointment of agent, $5.00. Where charter
provides assessments may be levied on shares to par value.

2210

BANKING AND COMMERCIAL LAWS—ARIZONA

Corporations, Foreign. Before it can transact business it must
file certified and duly authenticated copy of Articles with Corporation
Commission and also an appointment of agent upon whom a service
personal to the corporation may be made; publish articles of incor­
poration in some paper in each county in which business is to be
conducted at least six times and file with corporation commission
affidavit of such publication. Pay license fee of $15.00.
Corporations, Insurance. May be organized under provision
peculiarly applicable to insurance companies.
Corporations, Railroad. Are organized under a statute espe­
cially providing for them.
Corporations. Savings and Loan. (See Banks and Banking.)
Corporation Stock, Transfer of. Transfer of stock shall not be
valid, except as between the parties thereto, until the same is regularly
entered upon the books of the company, so as to show the names of the
erson by whom and to whom the transfer is made; the number of their
esignation of the shares, and the date of the transfer.
Costs. Plaintiffs who are non-residents, or those who own no
property upon which execution may be levied, are required to give
security for, within ten days after order made; bonds for, must
authorize judgment to be entered against sureties.
Courts. Are the Supreme Court of the State, the U. S. district court
for the District of Arizona: one superior court for each County, except
in counties having over certain population in which event two superior
courts, justices of the peace, police courts, recorders of cities. The
superior court of the several counties is a court of general jurisdiction,
both civil and criminal. It has both original and appellate jurisdiction.
Its original jurisdiction extends to all civil cases where the amount
involved exceeds $200 exclusive of interest, and in all cases involving
the title to or possession of real estate. Justice courts have general
jurisdiction when amount in controversy does not exceed $200.00.
except when title to real estate is involved. (See Jurisdiction.)
Creditors’ Bills. No statutory provisions.
Days of Grace. None.
Depositions. May now be taken either upon oral examination,
and cross-examination or upon written interrogatories and cross
Interrogatories, as is generally provided.
Descent and Distribution. (See Savings Banks.) The law of
community property prevails. The separate estate of an intestate,
when he or she shall die leaving surviving no husband or wife, shall
descend as provided. When an intestate leaves surviving a wife or
husband another method is provided. Children of the intestate
brothers, sisters, uncles and aunts, take per capita. All property
belonging to the community estate of the husband and wife shall go
to the survivor, if the deceased spouse have no child or children; if
the deceased have a child or children, his or her surviving spouse will
take one-half, and the other half goes to such child or children. The
community property always passes charged with the debts against
it. Intermarriage between man and woman to whom a child or
children had before been born, and recognition by the father of such
child or children legitimizes the child or children. Bastards inherit
from the mother and transmit estates as if legitimate. The statute
provides for the adoption of heirs. (See Dower, Husband and Wife.
Homestead.)
Dower. Dower is abolished.
Evidence. The common law rules have not been codified. Parties
may be examined and the other side not concluded thereby. Statutes
of other states and territories purporting to be printed under authority
may be read. No one is incompetent to testify because of religious
belief. Certified copies of all records in territory may be read. Certi­
fied copies of records of all notaries may be read. Court may order
inspection or copy of documents.
Executions. Upon a judgment of superior court, executions may
be issued to any county. Lien of dates from levy, and if on real prop­
erty, the description is endorsed on execution and filed with county
recorder. A range levy may be made upon all of stock under a certain
brand in same manner as upon real estate. (See Judgment, Liens.)
Proceedings supplemental to execution—when returned unsatisfied
creditor is entitled to an order requiring debtor to answer concerning
his property, but not elsewhere than in the county of his residence.
Third parties may, upon affidavit, be required to surrender property.
Court or judge may order suit brought to determine the denial of
owning or of having property.
Exemptions. Every person who is the head of a family, and
whose family resides within this state, may hold as a homestead,
exempt from attachment, execution and forced sale, real property
to be selected by him or her, which homestead shall be in one com­
pact body, not to exceed in value four thousand dollars, upon filing
affidavit designating such homestead in the Office of the County
Recorder in county where property is situated. Such homestead
exempt from date of filing saia affidavit. The following property
shall be exempt from execution, attachment, and sale on any Drocess
issued from any court: 1. The family bible. 2. A seat or pew in
any house or place of public worship. 3. A lot in any burial ground.
4. Necessary household, table and kitchen furniture, including viz:
5. The tools or implements of a mechanic or artisan necessary to
carry on his trade, etc. 6. The sewing machine and implements
of a seamstress actually used in pursuing her vocation. 7. One
watch, one sewing machine, one typewriting machine, and one bi­
cycle. 7a. Five milch cows. 8. The camping outfit of every
prospector in this state, including his mining tools, saddles and burros.
9. The farming utensils and implements of husbandry of the debtor,
etc. 10. Poultry not exceeding in value twenty-five dollars. 11.
Two horses and two mules and their harness; one cart or wagon;
one dray or truck; one coupe; one hack or carriage for one or two
horses or one automobile by the use of which a carman, drayman,
truckman, huckster, hackman, teamster, chauffeur, or other laborer
habitually earns his living, and one horse with vehicle or harness or
other equipment used by a surgeon, physician, constable or clergyman
in the legitimate practice of his profession, with food for such horses
or mules for one month. 12. Fuel necessary for the use of the
debtor and his family for the period of six months. 13. The presses,
stones, type, cases and other tools and implements used by any
person or copartnership in printing or publishing a newspaper or in
conducting any printing establishment or by any person hired to use
them; not exceeding two thousand dollars in value; together with
stock in trade not exceeding four hundred dollars in value. 14. The
library and philosophical and chemical or other apparatus belonging
to and used for the instruction of youth in any university, college,
seminary of learning or school. 15. All moneys received by or
payable to a surviving wife or child upon the life of a deceased husband
or father, not exceeding ten thousand dollars. 16. All moneys
arising from fire or other insurance upon any property exempt from
sale on execution. 17. All moneys, relief, or other benefits payable
to or to be rendered by any police department association, fire
department association, beneficiary association, or fraternal benefit
association, and any person entitled to assistance therefrom, or to
any certificate holder thereof or beneficiary under such certificate.
18. Any claim for damages recoverable by any person by reason
of any levy upon or sale under execution of his exempt personal
property or by reason of the wrongful taking or detention of such
property by any person, and any judgment recovered for such
damages. 19. The earnings of the minor child of any debtor or
the proceeds thereof by reason of any liability of such debtor not
contracted for the special benefit of such minor child. 20
One
half of the earnings of the wages or salary of any person for Lis per­
sonal services rendered at any time within thirty days next pre­
ceding the levy of attachment, garnishment or execution when it
appears by the affidavit of the debtor or otherwise that such earnings
are necessary for the use of the family residing in this state, supported
In whole or in part by him. 21. All arms, uniforms and accoutre­


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ments required by law to be kept by any person, ana also one gun
to be selected by the debtor. 22. All fire engines........... of any fire
department. 23. All courthouses, jails, etc. The property de­
clared to be exempt by this chapter shall not be exempt from at­
tachment or sale In any action brought or judgment recovered for
the purchase price of such property so long as such property remains
In the possession of the original purchaser. (See Homestead, Liens.)
Frauds and Fraudulent Conveyances. Agreements must be in
writing and signed by the parties to be charged: 1. By an executor
or administrator to answer for the debt of his testator or intestate out
of his own estate. 2. By a person to answer for the debt, default or
miscarriage of another. 3. To charge any person upon an agreement
made upon consideration of marriage 4. For sale of real estate or
lease thereof for a term longer than one year. 5. Those which are
not to be performed within the space of one year after the making
thereof. 6. A contract to sell or a sale of any goods or choses in
action, of value of $500.00, or upwards, unless buyer accept and
actually receive the same or give something in earnest to bind the
contract. 7. An agreement authorizing or employing an agent or
broker to purchase or sell real estate, or mines, for compensation or,
commission. 8. An agreement which is not to be performed during
lifetime of the promisor, or an agreement to devise or bequeath any
property, or to make any provision for any person by will. Every
gift, conveyance, or assignment, or transfer, or charge upon any
estate, real or personal; any suit commenced on decree, judgment, or
executions suffered or obtained, or any bond or other writing given
with intent to delay, hinder, or defraud creditors, purchasers or
other persons, shall to such persons be void. All bargains, sales,
and other conveyances of lands, tenements, and hereditaments,
deeds of settlement of marriage, deeds of trust, and mortgages, are
void as to creditors and subsequent purchasers, without notice,
unless properly recorded. The creditor must be a judgment creditor,
and notice must be prior to date of judgment lien. A judgment
creditor may be an innocent purchaser. Every gift, conveyance,
assignment, transfer or charge made by a debtor, which is not upon
consideration deemed valuable in law shall be void as to prior credi­
tors, if debtor had not then other property in the State sufficient
to pay all his indebtedness. Not on that account, however, void
as to subsequent creditors. No gift of any goods and chattels shall
be valid unless duly acknowledged, or proven and recorded, or by
will, or unless actual possession shall have come to and remained
with the donor or some one claiming under him. Fraudulent intent
Is a question of fact and not of law. Conveyance shall not be adjudged
fraudulent merely because not for valuable consideration. If any
person shall do or transact business as a merchant or trader, with the
addition of the words agent, factor, company, or & Co., or words of
like significance or import, and shall fail to disclose the name of his
principal, or partner, or other person who may be interested in such
business by a sign in letters easy to read, placed conspicuously at the
lace where such business is transacted, or if any person shall transact
usiness in his own name, without any such addition, all the property,
stock, money and choses in action used or acquired in such business
except such property as may be exempt from execution, shall, as to
the creditors of any such person, be liable for his debts, and be, in all
respects, treated in favor of his creditors as his property. Criminal
prosecution for fraud is provided. (See Conditional Sale.)
Garnishment. Writ may issue: 1. Where writ of attachment
has issued. 2. Upon affidavit that the debt is just due, and unpaid,
and that defendant has not, within affiant’s knowledge, property in
his possession subject to execution sufficient to satisfy such debt, and
that the writ is not sued out to injure either the defendant or garnishee.
3. Upon judgment, when affiant makes affidavit that the defendant
has not, within his knowledge, property in his possession within this
State sufficient to satisfy said judgment. Proceedings under sub­
division 2 requires a bond in double the amount of the debt, condi­
tioned that plaintiff will prosecute the suit to effect, and pay all
damages and costs that may be adjudged against him for wrongfully
suing out the garnishment. The proceedings are docketed and judg­
ment rendered as if in an independent proceeding. (See Attachment.)
Holidays. Legal holidays are January 1, February 14, February
22, July 4, October 12, Thanksgiving, May 30. December 25, Arbor
Day, Labor Day, November 11, every Sunday and general election
day, Any promissory note, bank check, bill of exchange, acceptance, or
other negotiable instrument, made payable at any future period, which
falls due on any of these days mentioned, shall be considered due and
collectible on the day following, and when any holiday shall fall upon
Sunday, then the Monday following shall be considered as a legal
holiday. Writs of injunctions, attachments, replevin, and pro­
hibition may be issued and served on.
Homestead. Deed to, must be signed by husband and wife. (See
Exemptions.)
Husband and Wife. All property, both real and personal, of
the husband or wife, owned or claimed by him or her before mar­
riage, and that acquired afterward by gift, devise, or descent, as also
the increase, rents, issues, and profits of the same, shall be his or her
separate property. The earnings and accumulations of the wife and her
minor children in her custody while she has lived or may live separate
and apart from her husband, shall also be the separate property of the
wife. All property acquired by either husband or wife during the
marriage, except that which is acquired by gift, devise, or descent, or
earned by the wife and her minor children while she has lived or may
live separate and apart from her husband, shall be deemed the common
property of the husband and wife, and during the coverture personal
property may be disposed of by the husband only. Married women
of the age of twenty-one years and upwards shall have the same legal
rights as men of the age of twenty-one years and upwards, except the
right to make contracts binding the common property of the husband
and wife; and shall be subject to the same legal liabilities. (See
Dower. Conveyance.)
Injunction. Is issued, where party is entitled to relief and
restraint, is required of some prejudicial act: where, pending litiga­
tion, an act is done which tends to render judgment ineffectual, and
when applicant is entitled under principles of equity. Under certain
conditions may be granted ex parte at chambers or by consent.
Bond may be fixed by judge and approved by clerk, except to restrain
collection of money judgment, when it must be double the amount of
such judgment.
Injuries—Personal. Workmen's Compensation Act in force.
Insurance. (See special chapter pertaining to Insurance.)
Interest. May contract, in writing, for any rate of, not exceeding
10 per cent per annum. Any rate exceeding this is usurious. When
no express contract, on bond, bill, note, or instrument of writing,
or judgment, for money lent, or due on settlement of accounts from
date of ascertained balance, and money received for use of another,
interest is computed at 6 per cent per annum.
Judgments. Judgments of superior courts become a lien upon all
real estate of judgment debtor in the county as soon as entered and
docketed. Upon filing with the clerk of the superior court a transcript
of judgment from justice court or of superior court of another county,
the same becomes a lien on all real estate of judgment debtor in the
county. No execution can be issued on any judgment after the
expiration of five years from the date of its rendition and entry, unless
such judgment be revived by scire facias or action for debt be brought
thereon within such five years.
Judicial Bonds. (See Bonds.)
Levy. (See Executions.)
Licenses. For gambling prohibited.
Liens. All persons who may labor or furnish materials in the con­
struction or repairing of any building, superstructure, canals, dams,
mines, or other improvement, or cuts cordwood, shall have a lien on

BANKING AND COMMERCIAL LAWS—ARKANSAS
the same, and in case of buildings and superstructures, on the lot of
land whereon the same is situate and connected therewith. To fix
and secure the lien, the person performing labor or furnishing material
must, within sixty days after the completion of such labor or the fur­
nishing of materials, file his contract in the office of the county recorder
where the property is situate. If the contract be verbal, a duplicate
copy of the bill of particulars should be made, under oath, and one ■
delivered to the recorder and filed for record and the other furnished
the party owing the debt, or his agent. Laborers’ and like liens are
preferred to all subsequent liens, mortgages, and incumbrances, and
such as lien claimant had no notice. Suit to foreclose such liens must
be commenced within six months after filing the same in the recorder’s
office. In case of the levy of writ of attachment or execution, clerks,
laborers, and employes of debtors have a preference claim for wages
for service performed sixty days before levy of writ, not exceeding
$200. upon filing notice of claim unpaid with creditor, debtor, and
officer executing writ. Proprietors of hotels, boarding houses, and
lodging houses have special lien on all property or baggage deposited
with them by guests for price of guests' entertainment. Agister and
liveryman, garagemen, have lien by statute. (See Judgment, Mort­
gage.)
Limitations. To recover realty against person in peaceable and
adverse possession under color of title, three years; against such posses­
sion where person pays taxes and has deed recorded, five years, other­
wise ten years; to recover lots in city or village against person having
recorded deed, and pays taxes, five years; where party in possession
claims by right of possession only, two years. Personal Actions—
One year: Malicious prosecution, false imprisonment, libel, slander,
seduction, breach of promise. Action on liability created by statute,
other than a penalty or forfeiture must be brought within one year
from discovery of fraud. Two years; Personal injuries, trespass to
property, detention or conversion of personal property to own use,
taking and carrying away goods and chattels; and injuries to person
where death ensues,to accrue from date of death. Three years:
Actions for debt not in writing; on stated or open accounts other
than mutual between merchants or their factors and agents; all
accounts, except as between merchants and factors and agents, limi­
tations run from date of each item of delivery. Actions for relief
on ground of fraud or mistake. Four years: For penalties or dam­
ages on any bond to convey real estate; between partners for settle­
ment of partnership accounts; on mutual or current accounts between
merchants, their factors or agents, to accrue from cessation of deal­
ings; upon judgment or instrument without the State; bonds of
executors, administrators, or guardian, after death, removal, etc.;
specific performance; to contest will after discovery of fraud; and
where no provision is otherwise made. Five years: On domestic
judgment where execution has been issued within one year after
rendition. Six years: debt evidenced by writing within the state.
Mines unpatented are real estate for the purpose of inheritance and
conveyance. Location requires seven monuments, three at each end,
and one at discovery, in which notice is to be placed on discovery;
title work consisting of a shaft 4x6x8 feet deep, or its equivalent
in an open cut so that mineral in place is discovered 8 feet from the
surface must be done and notice recorded within three months, and
annual assessment work amounting to $100. maintained each year
thereafter, until patent is ordered.
Minors. (See Savings Banks.)
Mortgages. All mortgages of real property and all deeds of trust
in the nature of mortgages shall, notwithstanding any provision in the
mortgage or deed of trust, be foreclosed by action in a court of com­
petent 'jurisdiction. Failure of mortgagee to lawfully release a
satisfied mortgage for ten days after demand for the release, subjects
him to liability for $100 and actual damages. Mortgages on real
estate are executed, acknowledged and recorded as conveyances of
real estate. (See Conveyances, Chattel Mortgage, Acknowledgments,
Redemption.)
Notary Public. In all certificates and acknowledgments the date
of expiration of commission must be stated, as “commission expires”.
Notary must reside in county for which appointed and has no juris­
diction outside of said county.
Notes and Bills of Exchange. (See Bills and Notes).
Partnerships using fictitious names must file with County Recorder
certificate showing names of partners and their residences, which
must be signed and acknowledged by all partners.
Powers of Attorney. No special statutory provisions relative to.
To confess judgment must be executed subsequent to maturity of debt
confessed, and must be acknowledged. To convey lands or release
mortgages should be acknowledged as deeds, and recorded.
Probate Law. (See Savings Banks and Administration of Estates.)
Protest. Liability of drawer or indorser of bill or note may be
fixed by regular protest and notice, etc., according to the usages and
custom of merchants. (See Bills and Notes.)
Records. The superior courts of each county are courts of record.
The recorder’s office in each county relates to titles of real estate
and personal property, and probate record instrument therein is
notice. The minutes of the Sanitary Live Stock Board are notice of
all brands and marks of live stock.
Redemptions. From Sheriff or judicial sales, six months, by
judgment debtor, or successors in interest. Senior creditor subsequent
to judgment having a lien on the premises sold, may redeed within
five days after expiration of said six months, and each subsequent
lien holder, according to priority of lien, within five days after time
allowed the prior lienholder, by filing with County Recorder statutory
notices of intention to redeem. The same rule applies to foreclosure
of mortgages and trust deeds.
Replevin. For possession of specific personal property which has
not been seized under any process, execution or attachment against
the property of the plaintiff.
Sales. The “uniform sales law” is in force.
Seals. Addition or omission of seals or scrolls to instruments of
writing in no way aifect the force and validity of the instrument.
Instruments executed by corporations must have a corporate seal
attached.
Service. All summons upon persons shall be personal, or by leaving
a copy with copy of complaint at the usual place of residence, of
defendant, with a member of his family over the age of sixteen years;
against incorporated city, or town, or village; upon major, clerk,
secretary, or treasurer: against incorporation or joint stock associa­
tion, upon president, secretary, or treasurer, director or local agent
representing company, or by leaving a copy of summons and com­
plaint at the principal office during office hours; upon any railroad,
telegraph, or express company, or any agent of such company who
resides In or may be found in the county where suit is brought; upon
domestic corporation by serving on statutory resident agent, and where
there is no officer upon whom service can be made in the State, ser­
vice may be had by delivering duplicate copies of summons and com­
plaint to the secretary of the Corporation Commission, and upon
foreign corporation by delivery to statutory agent. Personal service
of summons may also be had by serving upon defendant by registered
mail, as provided in statutes.
Suits. (See Actions.)
Taxes. Aside from those levied by legislative enactment for
specific purposes, as for the construction and maintenance of public
institutions, etc. State taxes are levied by the State Board of Equal­
ization; county taxes by the boards of supervisors of the several
counties, and city taxes by the common councils of the various cities.
Railroads are valued for the purpose of taxation by the State Board of
Equalization. Other property is valued by county assessors. The
assessing of value begins in January of each year. The lien attaches


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2211

on the first Monday of January of each year. One-half of taxes be­
come due and payable on first Monday in September and become
delinquent on the first Monday in November next thereafter. Re­
maining one-half become due and payable on first Monday in March
and become delinquent on first Monday in May next thereafter.
The penalty for delinquency is 4 per cent added thereto and interest
from date of delinquency until paid at rate of 10 per cent per annum.
Sixty days after delinquency action may be commenced in Superior
Court to foreclose delinquent tax liens, and property sold as under
execution.
Warehouses. Personal property In, may be sold for unpaid
charges.
Transfer of Corporation Stocks. (See Corporations.)
Wills. Wills must be in writing, signed by the testator, or by some­
one for him, in his presence and by his direction, and must be attested
by two or more credible witnesses above the age of fourteen years, in
the presence of each other and the testator.
When the will is wholly
written by the testator, no witnesses are necessary. Nun-cupative
wills may be made when property willed does not exceed in value
$50, unless it be proved by three credible witnesses that the testator
called on some person to take notice and bear testimony that such is
his will, and that the testimony, or the substance thereof, was com­
mitted to writing within six days after the making of such will; in
such case the amount willed is not limited. Wills are revocable by
subsequent will, codicil, or declaration in writing, executed with like
formalities as in execution of will, or by testator destroying, canceling,
or obliterating the same, or causing it to be done in his presence, or
by subsequent marriage, and no provision is made for wife. Foreign
wills, the probate whereof is duly authenticated, may be probated
here. Contests of wills can not be initiated after one year from date
of probating.

SYNOPSIS OF

THE LAWS OF ARKANSAS
RELATING TO

BANKING AND COMMERCIAL USAGES.
Revised by Emerson, Donham & Fulk
701-705 A. O. U. W. Bldg.
Attorneys at Law, Little Rock.
(8ee Card in Attorneys’ List.)
Accounts verified by the plaintiff as just and correct prove them­
selves In suits thereon unless denied under oath.
Acknowledgments may be taken within the State before the
supreme or circuit court, or a judge thereof, county and probate
court, or by county or probate judge, or clerk of any court of record,
or a justice of the peace, or notary public; elsewhere in the United
States before any court having a seal, or clerk of such court, notary
public, mayor having a seal, or commissioner of Arkansas; without
the United States before any court having a seal, mayor of a city
having a seal, United States consul, or any officer authorized by the
laws of such country to probate conveyances of real estate, provided
he has a seal.
Actions. Suits are prosecuted under a reformed code of civil pro­
cedure differing from the New York code chiefly in maintaining the
distinction between law and equity.
Administration of Estates. Executors and administrators must
be residents of the State and must give bond in double the value of the
property. Foreign executors and administrators can maintain actions
In our courts. Claims are paid in the following order: First, funeral
expenses; second, expenses of last illness; third, judgments which are
liens on the lands of the deceased; fourth, demands presented within
six months; fifth, demands presented within one year. All demands
not presented in one year are barred. Demands must be authenticated
by an affidavit to the effect that nothing has been paid or delivered
toward their satisfaction except what is credited thereon, and that
the sum demanded, naming it, is justly due. Demands must first be
presented to the executor or administrator, and if disallowed by him
may be presented to the probate court, or sued upon in any court of
competent jurisdiction. Notes and debts secured by mortgages or
deeds of trust must be probated as any other claim, and if not pre­
sented to the executor or administrator within one year after ap­
pointment. are barred by the statute of non-claim of one year. When
the note or debt is barred this carries with it a barring of the mortgage
or deed of trust given to secure the notes or debts.”
Affidavits in this State are made before a judge, justice of the
peace, notary public, or clerk of the court; without the State before
a judge, mayor, notary public, justice of the peace or commissioner
for this State.
Aliens may hold and transmit property in all respects as residents.
Arbitration. Controversies may be submitted to arbitration, and
the award of the arbitrators is filed in court, and is subject to review
on equitable principles only, and not for matters of form. When not
set aside they are entered of record and become the judgment or decree
of the court.
Arrest. Defendants may be arrested for debt only when the
plaintiff files an affidavit charging that the debt was fraudulently con­
tracted; that it is just, giving its amount, and that he believes that the
defendant is about to depart from the State, and with intent to de­
fraud his creditors, has concealed or removed from the State his
property or so much thereof that the process of the court after judg­
ment can not be executed; or that the defendan thas money or securi­
ties in the possession of himself or of others for his use, and is about
to depart from the State not leaving sufficient property therein to
satisfy the plaintiff's claim. Bond must be given conditioned to pay
the defendant all damages that he may sustain if wrongfully arrested.
Assignments for the Benefit of Creditors may be general or
partial, with or without preferences, and where all the debtor’s prop­
erty is conveyed, may exact releases as a condition of preference. The
assignee must file an inventory of the property assigned and give a
bond conditioned that he will execute the trust confided to him, sell
the property to the best advantage and pay the proceeds to the credi­
tors mentioned in the assignment according to its terms, and faithfully
perform his duties according to law. He must sell within 120 days
all property except the choses in action, which he is required to collect,
the sale to be at public auction after thirty days’ notice. Assignments
are vitiated by the fraud of the assignor alone or by any provision
varying from the requirements of the statute. Attacks upon them
are made by proceedings in equity, and, if they are set aside, the
proceeds are distributed equally among all the creditors. Assignees
close up their accounts under the direction of the chancery courts.
Corporations can not prefer creditors.
Attachmemts may be sued out where the defendant is a foreign
corporation or non-resident, or has been absent from the State four
months, or has left the State with intent to defraud his creditors, or
has left the county of his residence to avoid the service of summons,
or conceals himself so that summons can not be served on him,is or

2212

BANKING AND COMMERCIAL LAWS—ARKANSAS

about to remove or has removed a material part oi his property out
of the State, not leaving enough to satisfy his creditors, or has sold,
conveyed or otherwise disposed of his property, or suffered it to be
sold with the fraudulent intent to cheat, hinder, or delay his creditors,
or is about so ta do. It is obtained by fli'ng an affidavit stating the
nature of the plaintiff’s claim, that it is just, its amount and the exist­
ence of the ground, and by giving bond conditioned to pay all damages
the defendant may sustain if the attachment is wrongfully sued out.
The defendant is allowed to traverse the attachment, and the affidavit
and traverse then stand as pleadings upon which the issue is tried.
If the attachment is dissolved, the defendant may have an assessment
of damages upon the bond in the same suit. Persons claiming the
attached property may interplead in the same action. Attachments
may be sued out before the debt is due where the defendant has sold,
eonveyed, or otherwise disposed of his property, or permitted it to be
•old with the fradulent intent to cheat, hinder or delay his creditors,
or is so to do, or is about to remove his property, or a material part
thereof, out of the State with the intent of cheating, hindering or delay­
ing his creditors.
Banks. The banking business is controlled by a state bank depart­
ment under the direction of a bank commissioner. Any five or more
persons, the majority of whom must be residents of this state, may
apply to the commissioner to be incorporated and the shares of capital
■tock shall be not less than $25 nor more than $100 each; application
may also be made by an individual or firm and shall then be in such
form as the commissioner may prescribe and such individual or firm
shall adopt a name which will show that it is not incorporated; all
property owned by such bank shall be held in the name of the bank
and not in the name of the individuals composing the firm and all
assets of any such private bank are exempt from execution by any
creditor of such individual or firm until all liabilities of the bank have
been paid; upon the death of an individual banker bis widow is not
endowed of any property of the bank except such as remains after the
payment of all depositors and other creditors.
No corporation, firm or individual may do a banking business until
a fee of one-fifth of one per cent on the authorized capital stock shall
have been paid to the bank commissioner. Pees at the same rate
must be paid on each increase of the capital stock and for each amend­
ment or supplement to the articles of agreement, except for an increase
of capital stock, there shall be paid an additional fee of $10. There
is also due the commissioner an annual fee of $15 in addition to a pay­
ment of fifty cents on each $1,000 of the bank’s capital stock.
The fully paid-up capital stock of any bank organized after the pas­
sage of the banking act (March, 1913) cannot be less than $10,000 in
cities having less than 2,500 Inhabitants, not less than $20,000 in cities
having more than 2,500 and less than 5,000 inhabitants, not less than
$25,000 in cities more than 5,000 and less than 10,000 inhabitants
and not less than $50,000 in cities having more than 10,000 inhabitants.
The banking act does not apply to trust companies whose minimum
capital stock is $50,000.
The affairs of an incorporated bank are controlled by a board of
directors chosen from the stockholders; each director must be the
owner of not less than $500 worth of stock, par value, fully paid-up and
not hypothecated; every bank must have on hand at all times as a
reserve as much as 15 per cent of the aggregate of its deposits.
Stockholders are liable for the debts of the bank in the sum of the
par value of their stock in addition to the amount, invested in such
stock. (Act No. 113, Acts of 1913. page 462).
Bills. Exchange and Promissory Notes. The Negotiable
Instruments Law went into effect on April 22, 1913.
No person can be charged as an acceptor of any bill of exchange
unless his acceptance shall be in writing. If the acceptance is written
on another paper than the bill, it shall not bind the acceptor except
In favor of the person to whom such acceptance shall have boon
shown, and who, on the faith thereof, shall have received the bill
for a valuable consideration. Every holder of a bill presenting
It for acceptance may require an acceptance on the bill; otherwise
the bill can be protested for non-acceptance. Notwithstanding the
above provisions any one promising to accept a bill is liable to any
person to whom a promise to accept it may have been made; and
who, on the faith of the promise, has drawn and negotiated the bill.
Any person on whom a bill is drawn, and to whom the same may
be delivered for acceptance, who shall destroy it or refuse within
twenty-four hours or such time as the holder may allow to return
the bill accepted or not accepted to the holder, shall be deemed to
have accepted the same. When the bills become due on any holi­
day, they are payable the next succeeding business day. Instru­
ments falling due (or becoming payable on) Saturday are to be pre­
sented for payment on the next succeeding business day; except
that insturments payable on demand may be presented for payment
before 12 o'clock on Saturday if it is not a holiday. The following
damages are allowed where a bill is protested for non-acceptance
or non-payment: If the bill is drawn on any place in this State,
2 per cent; if payable in the states of Alabama, Louisiana, Mississippi,
Tennessee. Kentucky, Ohio, Indiana, Illinois, or Missouri, or any point
on the Ohio River. 4 per cent: if drawn on any other place in the
United States, 5 per cent: if beyond the limits of the United States,
10 per cent. If the bill be drawn by any person at any place within
this State, at the rate of 2 per cent; if drawn by any person at any
place without this State, but within the limits of the United States,
6 per cent; if drawn by any person without the limits of the United
States, 10 per cent. The holder of any bill protested for non-pavment or non-acceptance is entitled to costs of protest and interest
at the rate of 10 per cent per annum on the amount of the bill from
date of protest. The term Bill of Exchange includes all drafts or
orders drawn by one person on another for the payment of a sum of
money specified therein. Bills and notes given for patented machines,
Implements, substance, or instruments of any kind, given to any
citizen of this State, are not commercial paper, unless executed on
a printed form, and showing for what consideration they were exe­
cuted. This applies to patent rights and rights to use any patented
thing of any kind. But this provision does not apply to merchants
and dealers who sell patented things in the usual course of business.
All blank assignments are taken to have been made on such day as
shall be most to the advantage of the defendant. In other respects
the general rules of commercial law apply.
Bills of Lading. (See Warehouse Receipts and Bills of Lading.)
Blue Sky Law. The State Railroad Commission is constituted and
delegated with full power and authority to permit or prohibit the
sale of contracts, stocks, bonds or other securities in Arkansas, and
application must be made and his permission obtained before foreign
or domestic corporations, copartnerships or unincorporated associa­
tions offer their securities for sale
The act was passed in 1915 and amended in 1923, and may be found
in Crawford & Moses’ Digest of the Statutes of Arkansas, sections
750-771. It is a misdemeanor to sell, or offer for sale, contracts,
stocks, bonds, or other securities without first obtaining authority or
a permit from the Blue Sky Department.
Collaterals are governed by the law merchant.
Contracts touching commercial matters are governed by the law
merchant.
Conveyances may be either witnessed by two witnesses or ac­
knowledged. (See Acknowledgments.) if witnessed they are proved
by the oath of two witnesses, and are then entitled to record as though
acknowledged. Dower can be relinquished only by the wife joining
the husband. The wife may convey property acquired since October
30. 1874, by deed as a single person without her husband joining her,
or by joining with him in the form above. The wife may convey by
power of attorney and make executory contracts of sale. Deeds
which have been recorded and are properly acknowledged prove them­
selves. Any substantial departure from the form of acknowledgments
prescribed by the statute, such as the omission of the words “con­
sideration” or "purposes," makes the acknowledgment and record
void; but statutes have been passed from time to time curing defec­


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tive acknowledgments previously made. Such a statute was passed
in 1907. A new Curative Act was passed and approved Febru­
ary, 10, 1911.
Corporations are organized only under general incorporation laws.
Business corporations must consist of not less than three persons who
shall elect a board of directors. The president and secretary are to be
elected by the board and the president must be a member of it. The
secretary and treasurer must reside and keep the books of the com­
pany within the State. The articles of association must be signed by
the president and a majority of the directors, and must be accom­
panied by a certificate signed in a like manner and sworn to by the
president and a majority of the directors, setting forth the purpose of
the corporation, the amount of its capital stock, the amount actually
aid in, the names of its stockholders and the number of shares held
y each respectively, and the articles and certificate must be filed in
the office of the clerk of the county in which the corporation is to
transact business and then with the clerk’s endorsement in the office
of the secretary of State. The stock can be transferred by delivery
of the certificate endorsed In blank or to some specified person, or
by delivery of the certificate and a separate document containing a
written assignment or power of attorney to transfer. The corpora­
tion has no lien on its stock for debts due by its stockholders unless
such lien is stated upon certificate. The president and secretary
are required to file with the county clerk an annual statement of its
financial condition, and in case of a failure to do so become liable for
its debts. If the directors declare a dividend when the corporation
is insolvent they become liable for all the corporate debts. Any
corporation which is insolvent or has ceased to do business may be
wound up on the suit of any creditor or stockholder by a decree of
the chancery court. Preferences by insolvent corporations are for­
bidden. Shares of stock are in denominations of $25 or $100 or non­
par value. Before any corporations, foreign or domestic, can do any
business in this State, an annual franchise tax must be paid to the
State Treasurer, to wit: Eleven one-hundredths (11-100) of one
per cent each year upon the proportion of the outstanding capital stock
of the corporation represented by property owned and used in business
transacted in this state.
Every corporation doing business for profit and organized as a
mutual life, fire, accident, surety, health or other insurance company
not having a capital stock and not organized for charitable purposes
shall pay an annual tax of $100.00.
All foreign or domestic insurance companies, of whatsoever nature,
doing business in this State and having an outstanding capital stock
of less than $500,000 shall pay an annual tax of $100; and such com­
panies having a capital stock of $500,000 or more an annual tax of
$200. this tax being in lieu of the tax on the capital as provided in
other cases.
Every investment company, foreign or domestic, except National
banks and corporation not organized for profit, incorporated or unin­
corporated, which shall sell or negotiate the sale of any stocks, con­
tracts, bonds or other securities of any kind or character other than
bonds of the United States, or of some municipality authorized to
Issue bonds of the State, and notes secured by mortgages on real
estate located in the State, or sell building stock or loan investments,
shall file in the office of the Railroad Commission, together with a fee
of $5.00, in addition to the fees required of all incorporations, the
following documents: A statement showing in detail the plan upon
which it proposes to transact business; a copy of all contracts, bonds
or other instruments which it proposes to make with or sell to its
contributors: a statement showing name and location of company
and an itemized account of its actual financial condition and any other
such information which the Railroad Commission may require: If
such company be a co-partnership or unincorporated association, It
shall also file a copy of its articles of co-partnership or association and
all other papers pertaining to its organization; if it be an Arkansas
corporation it shall file a copy of its articles of incorporation, con­
stitution and by-laws and all other papers pertaining to its organiza­
tion; if it be organized under the laws of any other state or territory
or government, incorporated or unincorporated, it shall file a copy of
the laws of such state or government under which it exists or is incor­
porated, and also a copy of its charter, articles of incorporation,
constitution and by-laws and other papers pertaining to its organi­
zation.
The Railroad Commission shall examine all such papers and may
admit or reject such company in its discretion; a company rejected,
or whose right to do business is revoked by the Railroad Commission,
may, within twenty days, appeal to the chancery court of any county
in the state where its principal office is located or principal agent resides.
If it be found that the refusal or revocation was justified, the cost
shall be paid by the company; otherwise by the state as provided by
statute.
Any individual or persons, co-partnerships, corporation, companies
or association, domestic or foreign, which shall sell any building or
investment contracts or like securities on which payments are to be
made from time to time, shall first enter into a bond with the State of
Arkansas in the sum of $20,000 for the faithful performance of its
contract.
Foreign Corporations shall, before doing business in the State, by
its president file in the office of the secretary of State a certificate
under the seal of the company naming an agent, who shall be a citizen
of this State upon whom service of process can be made. The certi­
ficate shall state the principal place of business of the corporation;
and service on the agent shall bind it. The corporation must also file
a certified copy of its charter together with a statement of its assets
and liabilities, and the amount of its capital employed in this state
in the office of the secretary of State, and in the office of the county
where it opens an office, and must pay same fees as are required of
home corporations. It must also file a resolution of its board of
directors consenting that service of process on any of its agents or on
the secretary of State shall be a good service. If it sues in the federal
court or removes a suit there without consent of its adversary, its
right to do business is revoked. Doing business here without compli­
ance with the law subjects the corporation to a fine of not less then
$1,000. These requirements do not apply to railroad or telegraph
companies that had built lines in the State prior to Feb. 16, 1899. If
any corporation fails to appoint an agent, service of process on the
auditor of State shall bind it. No foreign corporation can sue on any
contract made in this State until these provisions are complied with.
Courts. The supreme court Is held at Little Rock and has juris­
diction of appeals from the circuit and chancery courts. In all coun­
ties separate courts of chancery have been established. The estates
of deceased persons are entrusted exclusively to the probate courts,
with right of appeal to the circuit and thence to the supreme court.
Claims against counties are heardby the county court, as also matters
touching paupers and the like. The justices’ courts have jurisdiction
of matters of contract not exceeding $300, and matters of tort not
exceeding $100. Two terms of the circuit and chancery court and
four of the county and probate courts are held in each county per year.
Courtesy. (See Dower.)
Deeds. (See Acknowledgments and Conveyances.)
Depositions may be taken In the State before any judge or clerk of
a court of record, justice of the peace, mayor, or notary public; out
of the State before a commissioner for this State, judge, justice of the
eace, mayor, notary public, or person commissioned by the court or
y consent of parties.
Descents and Distributions. Property descends to children and
their descendants in equal parts; if no children, then to father, then to
mother, then to brothers and sisters and their descendants in equal
arts, and in default of such to the nearest lineal ancestor or his
escendants in equal parts per stirpes. Illegitimate children inherit
and transmit an inheritance from the mother in the same manner as
If legitimate. If the parents of illegitimate children subsequently
intermarry and the father recognizes them as his, they shall be deemed
legitimate. In default of heirs the whole property goes to husband

S

BANKING AND COMMERCIAL LAWS—ARKANSAS
or tfife, and In their default to the State. If the estate is ancestral it
goes to the blood of the ancestor from whom it was derived. Rela­
tions of the half-blood inherit equally. Heirs take as tenants in
common.
Dower. Where there are children the wife takes one-third of the
husband’s personal estate absolutely and one-third of the real estate
of which he was seized at any time during the marriage, for life. Where
there are no children she takes in a new acquisition one-half of the real
and personal estate absolutely as against heirs, or one-third absolutely
as against creditors. If it is an ancestral estate, she takes one-half for
life against heirs and one-third for life against creditors. Husband
takes same interest in wife’s property by courtesy after death of wife.
If wife kills husband or husband kills wife and is convicted of murder
in first or second degree for such homicide their dower and curtesy
rights are forfeited.
Executions from the circuit court are returnable in sixty days,
those from justices' courts within thirty. They may be stayed for
six months by giving bond. They are a lien on the property of the
defendant in the county from the time they come to the officers’
hands. The officer before levying on personal property, the title
to which is doubtful, may require the plaintiff to give him an indem­
nifying bond, and then suit must be brought by the claimant upon
the bond. The defendant and other judgment creditors have one year
In which to redeem from the sale of real estate. In case the writ is
returned nulla bona the plaintiff may proceed by bill of discovery
against the defendant and examine him on oath, and enforce a sur­
render of concealed property by imprisonment.
Exemptions. Unmarried persons are entitled to $200 and married
persons and heads of families to $500 in selected articles of personal
property as exempt against debts by contract. Persons who are
married or heads of families are entitled to a homestead as against all
debts, except the purchase-money, specific liens, laborers’ and mechan­
ics’ liens, taxes and claims for trust funds converted. The homestead
in the country is not to exceed 160 acres, and in town not to exceed
one acre, nor to be worth more than $2,500, but the country home­
stead is not to be reduced to less than 80 acres nor the town homestead
to less than one-fourth of an acre, regardless of value. The homestead
goes to the widow and minor children after the husband's death. The
homestead can only be conveyed by deed in which the wife joins and
which is acknowledged by her, and if the thusband neglects to claim
the homestead the wife may do so.
Fraud. The English statute of fraudulent conveyances has been
re-enacted in this State.
Garnishments may be sued out pending suit upon giving bond
in double the amount garnished, of after judgment without bond.
Garnishment may be discharged and funds or property in hands of
garnishee released by filing bond for double the amount of sum
garnished. Upon judgment being rendered against defendant sum­
mary judgment may be rendered against sureties on bond. Act 177
of Acts 1925.
Holidays. The following are set apart and designated as legal
holidays: Christmas Day (December 25th); New Year’s Day (Jan­
uary 1st); July Fourth; Thanksgiving Day (last Thursday in Novem­
ber); Washington’s birthday (February 22nd); Labor Day (first
Monday in September); General Robt. E. Lee’s bithrday (January
19th); All general biennial election days; Birthdays, Jefferson Davis,
President of the Confederate States of America (June 3rd); Arbor
Day (first Saturday in March, a special day). When bills become
due on any of these days/ they are payable the next business day.
October 12th is Columbus Day (a public holiday, but not affecting
commercial paper, or the execution of written instruments, nor
Interfering with judicial proceedings).
Husband and Wife. (See Married Women.)
Injunctions may be issued by circuit judges, chancellors, or the
Judge of any court in which suit is brought. The person applying
for the injunction must give bond as the court or judge may direct.
Insolvency. The Supreme Court has held that the Federal Bank­
ruptcy Act has suspended the State insolvency laws.
Interest. The legal rate of interest is 6 per cent, but parties may
contract in writing for not exceeding 10 per cent. Interest exacted in
excess of 10 per cent forfeits the debt. In computing the interest
commissions' paid to the agent of the lender are counted as interest.
Where usury is charged the borrower may go into equity and have the
debt and securities cancelled without tendering the amount lawfully
due. Judgments bear the same rate of interest as the obligation sued
on. Judgments against counties bear no interest.
Judgments (See Interest) are liens upon the real estate of the
debtor in the county where rendered for three years only. The lien
may be renewed and continued for three years by scire facias. Judg­
ments of the United States and other courts can be made liens on lands
in counties other than that where they are rendered by filing a certified
copy in the office of the circuit clerk. A judgment survives for ten years.
Jurisdiction. (See Courts.)
Liens. Mechanics, builders, artisans, laborers, and others doing
any work upon or f urnishing any material for any building or erection
under any contract with the owner or his agent, contractor or sub­
contractor- shall have for such work or material furnished a lien on
the building or improvement together with the land on which it stands
to the extent of one acre if in the country; if in a city the lot or land
upon which the erection is situated. Hotel keepers have lien on
baggage and personal effects of guests. Liverymen have lien on all
stock and property left in their care.
Limitations. Suits for the possession of real estate must be
brought within seven years, saving to minors and lunatics three
years after their disabilities are removed. Actions for recovery of
lands sold at judicial sales must be brought within five years, saving
to minors and lunatics three years after removal of disabilities.
Actions for the recovery of lands held under tax title must be brought
In two years. Actions for forcible entry and detainer, on contracts
not in writing, for trespass and for libel, within three years. Actions
for criminal conversation, assault and battery, false imprisonment,
and slander, within one year. Actions on written instruments, within
five years; on judgments, within ten years; on bonds of executors
and administrators, within eight years. In all cases, except actions
for the recovery of lands, minors and lunatics have, after removal
of their disability, the statutory period in which to sue. Verbal
promises or acknowledgments do not take a claim out of the statute.
One year is allowed after dismissal of a suit in which to begin a new
action. No person can avail himself of a disability which did not
exist at the time the right of action accrued. No endorsement of pay­
ment made by the payee or on his behalf is sufficient proof to take
the case out of the statute.
Limited Partnerships may consist of one or more general, and one
or more special partners. The latter of whom shall constitute in cash a
specific amount as his share of the capital, beyond which he is not
liable for firm debts. Those forming such partnership must make
and file in office of circuit clerk of county, and principal place of busi­
ness, a certificate showing name of firm, names of partners, distin­
guishing between general and special, nature of business, amount
of capital contributed by each partner, period of commencement and
termination of partnership. Business to be conducted by general
partners and suits brought by or against them.
Married Women. The property, real and personal, of married
women remains their separate estate as long as they choose, and may
be devised or conveyed without the husband’s assent, and is not
subject to his debts. If she dies without making any disposition of
her real estate, he is entitled to curtesy. She may carry on' any busi­
ness or perform any services on her own account, and her earnings are
hers, and she may sue alone in respect of her separate property. She
can bind herself by contract only in reference to her separate estate or
business. She can not enter into partnership with her husband.
If she does not file a schedule of her personal property, the burden of
roof is on her to show that it is hers.


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2213

Mines and Mining. Under control of commissioner of mines.
All documents relating to mines must be recorded in the recorder’s
office of the county; and miners of the county may make by-laws
regarding the time, manner, and amount of work necessary to hold
claims and other rules and regulations not in conflict with law. Exten­
sive provisions are made for the protection of the health and safety
of miners. (Acts 1893, p, 213.) Miners have a lien on the output,
machinery, and tools used to secure payment for work done. Three
years’ possession of a mine, with work required by law, gives possessory
right.
_____
Mortgages are not liens as against any one, though such person
has actual notice of their existence, until they are acknowledged in
the form prescribed and filed for record. Mortgages of real estate
are recorded in the county where the land lies, and mortgages of
personal property in the county of the mortgagor’s residence. If the
mortgagor of personality is a non-resident the mortgage is recorded
In the county where the property is situated. Sales under mortgages
and deeds of trust can be made only after appraisement, and the
property must bring two-thirds of the appraised value. In case it is
offered and fails to bring the required amount real estate may be
offered again after one year and personal property after sixty days,
and is then sold for what it will bring. The mortgagor of real estate
has one year from the date of sale in which to redeem. In action to
foreclose a mortgage, it is sufficient defence that the debt (which it
recites), is barred by statute of limitations.
Ohattel Mortgages may be acknowledged and filed as other mort­
gages, or they may be endorsed "This instrument is to be filed but not
recorded," signed by the mortgagee, and may then he filed in the
recorder’s office with the same effect as though recorded. Mortgages
of personal property reserving in the mortgagor the power of disposi­
tion are fraudulent.
Mortgages and Deeds of Trust may be enforced by foreclosure
at any time within the period prescribed by law for foreclosing mort­
gage or deed of trust so far as the property mentioned and described
in such mortgage or deed of trust is concerned, but no claim or debt
against the estate of a deceased person shall be probated against
such estate whether secured by mortgage or deed of trust or not
except within the time prescribed by law for probating claims against
said estate.
Powers of Attorney. Lands may be conveyed by power of attor­
ney. which is acknowledged as deeds and recorded in the county
where the lands lie.
Probate Law. (See Administration of Estates.)
Protests. (See Bills of Exchange and Promissory Notes.)
Records. (See Acknowledgments, Conveyances, Mortgages.
Chattel Mortgages, and Powers of Attorney.)
Redemption. (See Executions and Mortgages.)
Replevin. The plaintiff in replevin may file an affidavit describing
the property, stating its value and the amount of damages he expects
to recover, his title, that the property is wrongfully detained by the
defendant, that it has not been taken for a tax or under process against
plaintiff, and that his cause of action has accrued within three years,
and upon giving bond in double its value, the property shall be taken
from the defendant and given to the plaintiff pending the suit, unless
the defendant within two days after it is taken gives a cross-bond.
Revision. The last revision of the statutes was in 1921.
Taxes. AH property should be assessed for taxes between the
first day of May and the first day of June in each year, except In
counties where the' population exceeds 75,000, in which taxes should
be assessed between the first day of January and the 10th day of
April. State Tax Commission has general supervision and control
over tax matters. Taxes must be paid between January 1st and
April 10th of the year following the assessment. After April 10th
penalty of 25 per cent will accrue. Taxes are first and paramount
ien upon real and personal property after first Monday in June of the
year in which assessment is made, which lien continues until such
taxes with penalty shall be paid.
Testimony. (See Evidence.)
Transfer of Corporation Stock. (See Corporations.)
Trust Companies must have a paid-up capital of $50,000, and
in counties with a population exceeding 50,000, they must have a sub­
scribed capital of not less than $100,000. They may exercise all the
powers commonly conferred on such companies.
Wages. No assignment or order of wages to be earned in the
future to secure a loan of less than $200, shall be valid against any
employer or the person making such assignment or order, until such
assignment or order is accepted in writing by the employer and the
said assignment or order and the acceptance of same has been filed
with the recorder of the county where the party making the assign­
ment or order resides, if a resident of the state where he is employed.
No assignment or order of wages to be earned in the future shall be
valid when made by a married man unless the written consent of his
wife to making such an assignment or order for wages shall be attached.
Warehouse Receipts and Bills of Lading shall not be given
except where the commodities mentioned are received on the premises,
and are under the control of the warehouseman at the time of its
issuance. No warehouseman shall sell, encumber, ship, or remove
any such commodity for which a receipt has been given without the
written assent of the holder of the receipt. The same provisions cover
owners and agents of boats and vessels. All warehouse receipts and
bills of lading are made negotiable by written endorsement and
delivering the same as bills of exchange and promissory notes, and no
printed or written conditions, clauses, or provisions inserted in or
attached to them shall in any way limit their negotiability or impair
the rights and duties of the parties thereto, or persons interested
therein, or such conditions shall be void. Warehouse receipts given
by any warehouseman or other person for goods and other com­
modities deposited, and all bills of lading given by any carrier, boat,
vessel, railroad, transportation, or transfer company may be trans­
ferred by endorsement and delivery; and the transferee shall be
deemed to be the owner of such commodities so far as to give validity
to any pledge, lien, or transfer given, made, or created thereby; and
no property so stored or deposited shall be delivered except on sur­
render and cancellation of such receipts and bills of lading, unless
such receipts and bills of lading have the words “not negotiable”
plainly written or stamped on their face. A carrier may however
deliver to shipper or consignee goods without presentation of bill of
lading upon receiving from such shipper or consignee bond in double
the value of the goods conditioned for delivery to the carrier there­
after the original bill of lading (acts 1907). Penalties are denounced
against any warehouseman or other person who shall violate any of
the provisions of this statute. So much of the act as forbids the
delivery' of property except the surrender and cancellation of the
original receipt or bill of lading shall not apply to property replevined
or removed by operation of law.
Wills. A will must be subscribed by the testator or by some person
for him at his request in the presence of two attesting witnesses, and he
must acknowledge it to be his will to each of them. He must declare
at the time of his subscription or acknowledgment to the witnesses
that the instrument is his will and testament. The witnesses must
sign their names at the end of the will as witnesses at the request of
the testator. If, however, the entire will is in the hand-writing of the
testator, it need not be attested, but may be proved by three witnesses
familiar with the hand-writing. Such will, however, can not be
pleaded In bar of an attested will. Wills are revoked by marriage and
birth of issue, unless provision for such issue is made by settlement,
or is provided for in the will. The will of an unmarried woman is
revoked by her marriage. Afterborn children, not mentioned in the
will, take their regular distributive share. If the testator fails to
mention in his will any child, or its legal representatives, living at the
time of executing the will, he shall, as to such child, or its represent­
atives, be deemed to have died intestate, and such child, or its rep­
resentatives, is entitled to its regular share.

1214

BANKING AND COMMERCIAL LAWS—CALIFORNIA
SYNOPSIS OF

THE LAWS OF CALIFORNIA
RELATING TO
BANKING AND COMMERCIAL USAGES.
Revised by Dinkelspiel & Dinkelspiel
Attorneys and Counselors at Law, 901-908 De Young Bldg.
San Francisco.
(See Card in Attorneys’ List.)
Accounts. An account is assignable, and the assignee may main­
tain an action thereon, although the account is assigned merely for
collection. An action to recover a balance due upon a mutual current
and open account or upon an open book account is barred within four
years. The cause of action on a mutual account is deemed to have
accrued from the date of the last item. In the case of an open book
account, each item becomes outlawed four years after its date. (See
Actions and Limitations.)
Acknowledgments. Before an instrument can be recorded, its
execution must be acknowledged by the person executing it, or if
executed by a corporation, by its president or secretary, or other
person executing the same on behalf of the corporation, or proved by a
subscribing witness, or by judgment in an action brought for the
purpose. The proof or acknowledgment of an instrument may be
made at any place within the State before a justice or clerk of the
supreme court, and within the city, county, or township for which
the officer was appointed or elected, before either: (1) A clerk of a
court of record: (2) a county recorder; (3) a court commissioner;
(4) a notary public; (5) a justice of the peace. The acknowledg­
ment of an instrument must not be taken, unless the officer taking it
knows or has satisfactory evidence, on the oath or affirmation of a
credible witness that the person making such acknowledgment is the
individual who is described in, and who executed the instrument;
or if executed by a corporation that the person making such acknowl­
edgment is the president or secretary of such corporation, or other
person who executed it on its behalf. Officers taking and certifying
acknowledgments or proof of instruments for record, must authenti­
cate their certificates by affixing thereto their signatures, also their
seals of office, if by the laws of the State or country where the ac­
knowledgment or proof is taken, or by authority of which they are
acting, they are required to have official seals. Acknowledgments
taken out of this State to be used within this State may be taken
before a notary public, a commissioner appointed by the governor
of this State, a judge, or clerk of a court of record, or in foreign coun­
tries a minister, consul, vice-consul, or consular agent of the United
States, or a judge of a court of record or a notary public.
Actions. All civil actions are commenced by filing a complaint,
upon which plaintiff may, at any time within one year thereafter, have
a summons issued. There is but one form of action and the only
pleadings allowed on the part of the plaintiff are: 1. The complaint.
2. The demurrer to the answer. 3. The demurrer to the cross-com­
plaint. 4. The answer to the cross-complaint, and on the part of
the defendant: 1. The demurrer to the complaint. 2. The answer.
3. The cross-complaint. 4. The demurrer to the answer to the
cross-complaint.
Administration of Estates. Upon the admission of a will to
probate, letters testamentary are granted by the superior court to the
executor named in the will, unless he be dead or incapable or unwilling
to act, in which case letters testamentary are issued to an adminis­
trator with the will annexed, appointed by said court. In case of
intestacy, letters of administration are issued to the bona fide resi­
dent of the state entitled thereto, in the following order: 1. Relatives
of whole blood entitled to administer in preference to those of half
blood. Surviving husband or wife, or some competent person named
by either. 2. Children. 3. Father or mother. 4. Brothers. 5. Sis­
ters. 6. Grandchildren. 7. Next of kin entitled to share in the dis­
tribution of the estate. 8. Public administrator. 9. Creditors.
10. Any person legally competent. Where the person entitled to
administration is a minor or incompetent, letters must be granted to
his or her guardian, or to any other person entitled to letters of
administration in the discretion of the court. Bonds for faithful
performance of duty are required of an administrator and of an
executor unless waived by the will. Notice must be given by the
administrator or executor by publication to all the creditors to come
In and prove their claims within ten months after its first publication,
when the estate exceeds in value the sum of ten thousand dollars,
and four months when it does not. 11. Claims arising on contract
whether due or not due or contingent, and funeral expenses must be
presented within time prescribed by notice to creditors, otherwise
they are forever barred, unless it appears by affidavit of the creditors
that such creditor was outside of the State and consequently did
not receive notice. Unless claim is approved within the time pro­
vided for in the notice it is barred, unless the claimant can prove
to the satisfaction of the court that he had no notice by reason of
being out of the State, in which case the claim may be presented
at any time before a decree of distribution is entered. When a claim
Is rejected either by the executor or administrator or the judge,
the holder must bring suit in the appropriate court thereon within
three months after the date of its rejection, if it be then due or within
two months after it becomes due, otherwise the claim is forever
barred. No claim can be allowed which is barred by the Statute of
Limitations. Claims against the estate are paid in the following
order: 1. Funeral expenses. 2. The expenses of the last sickness.
3. Debts having preference by the laws of the United States. 4.
Judgment rendered against the decedent in his lifetime, and mort­
gages and other liens in the order of their date; and 5, all other de­
mands against the estate.
Affidavits. An affidavit to be used before any court, judge, or
officer of this State may be taken before any officer authorized to
administer oaths. In this State every court, every judge or clerk of
any court, every justice and every notary public, and every officer or
person authorized to take testimony in any action or proceeding, or
decide upon evidence, has power to administer oaths and affirmations.
An affidavit taken in another State of the United States to be used
In this State, may be taken before a commissioner appointed by the
governor of this State to take affidavits and depositions in such other
State, or before any notary public in another State, or before any
judge or clerk of a court of record having a seal. An affidavit taken
in a foreign country to be used in this State, may be taken before an
ambassador, minister, consul, vice-consul, or consular agent of the
United States, or before any judge of a court of record having a seal,
in such foreign country.
Aliens. 1. All aliens eligible to citizenship may take, hold and
dispose of property, real and personal, within this State.
2. All aliens not eligible to citizenship may acquire and possess land
in accordance with the terms of any existing treaty with any foreign
country of which such alien is a citizen, and not otherwise.
3. Any company, association or corporation composed in the main
of aliens not eligible to citizenship may acquire and possess land in
accordance with the terms of any existing treaty with any foreign
country of which they are citizens, and not otherwise.


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4. When it appears in any probate proceedings wherein any alien
is an heir that he could take real property, or membership, or shares
in a company or a corporation, except for the provision of this act,
the probate court shall order the sale of such real property or shares
in a company or corporation, and distribute the proceeds to such alien.
5. For any violation of this act tne attorney-general shall institute
forfeiture proceedings and upon final judgment the lands shall escheat
to the State.
6. When it appears that any alien or aliens are holding any lease­
hold interests in violation of the above provisions the attorney-general
shall likewise institute forfeiture proceedings, and such leasehold
interest or its monetary value together with the costs of such forfeiture
proceedings shall escheat to the State.
No non-resident alien can take by succession unless he appear
and claim within 5 years after death of decedent.
Arbitration. In all cases except those pertaining to labor, a con­
tract in writing may provide for arbitration of controversies arising
thereafter, or an existing controversy may be submitted to arbitration
in writing with a provision for the rendition of judgment upon the
award in any specified court of record, and the entry thereof in any
specified County. Otherwise, the judgment may be entered in the
Superior Court of the County where the arbitration was had.
Arrest. In an action for the recovery of money, upon a contract,
express or implied, the defendant may be arrested if about to depart
from the State with intent to defraud his creditors, upon order of
court based upon affidavit therefor, also in an action for money or
other property embezzled or fraudulently misapplied by a public
officer, officer of a corporation, or an attorney, factor, broker, agent,
or clerk in the course of his employment, or by any person in a fidu­
ciary capacity; also in actions to recover the possession of personal
property where it has been concealed or removed or disposed of to
prevent its being found; also in cases where the defendant has been
guilty of a fraud in contracting the debt or obligation for which action
is brought; or in concealing or disposing of property; also when the
defendant has removed or disposed of his property or is about to do
so with intent to defraud creditors. Bail given upon arrest is liable
upon judgment secured.
Assignments for the Benefit of Creditors. Assignments for
the benefit of creditors must be written and acknowledged by the
assignor or his agent authorized thereto in writing and recorded, and
must be made to the sheriff of the county where the insolvent resides,
or, if a non-resident, where he has property. Assignments for the
benefit of creditors are void against any creditor not assenting thereto
in a number of instances; for example, where they give one debt a
preference over another, and where they tend to coerce any creditor to
release or compromise his demand. Assignments must contain names
of creditors and the amounts.
Attachments may be issued at the time of or any time after
issuing the summons where amount sued for exceeds $10.00 as is
hereinafter provided. All property not exempt from execution may
be attached. An attachment lien upon real property continues for
three years and may be extended for two years more. The clerk of
the court must issue the writ of attachment upon receiving an affidavit
by or on behalf of the plaintiff showing, (1) That the defendant is
indebted to the plaintiff, specifying the amount of such indebtedness
over and above all legal set-offs or counter-claims, upon a contract,
express or implied, for the direct payment of money, and that such
contract was made or is payable in this state, and that the payment
of the same has not been secured by any mortagge or lien upon real
or personal property, or any pledge of personal property, or. if originally
so secured, that such security has, without any act of p'aintiff, or the
person to whom the security was given become valueless, or (2) That
the defendant is a nonresident of the State, or has departed from the
State, or who is unable to be found after diligent search within the
State, and is indebted to plaintiff specifying the amount of such indebt­
edness over and above all legal set-offs or counter-claims, up@n a
contract expressed or implied; or (3) That plaintiff’s cause of action
against defendant is one to recover a sum of money as damages
(specifying the amount thereof) arising from 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 a nonresident of the
State, or has departed from the State, or who is unable'to be found
after diligent search within the State; and (4) That the attachment
is not sought, nor is the action prosecuted, to hinder, delay, or defraud
any creditor of defendant. Before issuing the writ, the clerk must
require a written undertaking on the part of the plaintiff, in a sum
not less than $200 or in Justices Court of from $50.00 to $300, and
not exceeding the amount claimed by plaintiff, with sufficient sureties,
to the effect that, if the defendant recovers judgment, the plaintiff
will pay all costs that may be awarded to the defendant, and all
damages that he may sustain by reason of the attachment, not exceed­
ing 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 damages, which the defendant may have sustained by reason
of the attachment, not exceeding the sum specified in the undertaking
Banks, Savings. A savings bank may purchase or hold; (X)
Real Estate, furniture, fixtures, etc., in which its business may be
conducted. (2) Property mortgaged or held in trust on account of
any money lent in the course of business. It shall not purchase
personal property except (1) bonds or interest bearing obligations
of the United States (2) bonds of the State. (3) Bonds of any state
which has not defaulted in payment of either principal or interest
within twenty-five years. (4) Bonds of any county, city or town or
school, road, sewer, drainage, reclamation, protective or sanitary
district, organized under the laws of the state, to limited amount.
(5) Bonds of any county, city or town of any state of a population of
more than 20,000 and an entire bonded indebtedness less than 15 per
cent of the taxable property, where interest or principal has not been
defaulted within twenty-five years. (6) Bonds of railroads organized
under any state of the United States and operating exclusively therein
provided, that in all cases the net earnings are as required by statute.
(7) Bonds of Public Utility corporations, incorporated under the laws
of any state provided the properties and earnings, etc., are as required
by statute. (8) Notes or bonds secured by first lien on real estate
to 60 per cent of its market value. (9) Collateral trust bonds or notes
secured by deposit of authorized bonds 15 per cent in excess of such
collateral bonds or the deposit of such bonds and other securities
20 per cent in excess of such collateral bonds, provided the market
value of the authorized bonds deposited equal such collateral bonds.
(10) The capital stock and surplus of savings banks, must equal 10 per
cent up to and including $1,000,000 deposit liabilities, must exceed
5 per cent from $1,000,000, to $3,000,000, 3 per cent from $3,000,000
to $25,000,000, and 1 per cent of deposit liabilities in excess of $25,000,000. (11) No savings bank must loan money except on adequate
security on real or personal property and such loan must not be for
longer than ten years. It must have a paid up capital stock graduated
from $25,000 when located in any place of less than 5,000 population,
to $300,000 when the population is in excess of 200,000. Savings
banks organized without capital stock must have a reserve fund of
$1,000,000. A surviving husband or wife or next of kin of any de­
ceased person may, without procuring letters of administration, with­
draw any sum deceased may have had on deposit in any savings bank
if the sum does not exceed $1,000.00.
Banks. The business of banking may be carried on only by
corporations organized for that purpose under the Bank Act. The
capital stock and surplus of commercial banks must exceed ten per
cent of deposit liabilities. Such corporation are classified as: Com­
mercial, Savings or Trust companies, and, together with building and
loan associations, are conducted under the supervision and inspection
of a State Superintendent of Banks, to whom such banks must sub­
mit at stated intervals to examination- No person unless organized

BANKING AND COMMERCIAL LAWS—CALIFORNIA
as a bank under the laws of this state may hold himself out as en­
gaged in the banking business, or use the word bank, savings or
trust company in connection with his business. Every bank may
conduct a commercial and savings department, provided its capital
stock, if situated in a locality whose population does not exceed 5,000
amounts to $25,000, or both or either departments in conjunction
with a trust department if the same amounts to $125,000. If the
population of a locality is from 5,000 to 25,000 a capital of $50,000 is
required for a savings ana commercial department and $150,000 for
both or either in conjunction with a trust department. If the population
is from 25,000 to 100,000 a capital stock of $100,000 and $200,000
respectively is required: if the population is from 100,000 to 200,000
a capital stock of $200,000 an,$400,000 respectively is required; if
the population is in excess of 200,000 a capital stock of not less than
$300,000 and $500,000 is required. The capital stock must be paid
up in all instances. Every bank must designate the character of its
business. A bank organized under the laws of another state must
comply with all the requirements of the State Bank Act, set apart to
its business conducted here the surplus paid up stock required of
California corporations, and constitute the State Superintendent of
Banks its agent for service of process. A banker has a general lien
dependent upon possession of all property in his hands belonging to a
customer for the balance due to him from such customer in the course
of business. The same capital stock is required of commercial banks
as of savings banks. (See savings banks.) With some exceptions no
commercial bank can lend more than ter per cent of its capital stock
on unsecured loans or twenty-five per cent upon security worth at
least fifteen per cent more than the loan so secured, but a commercial
bank may buy or aiscount bills of lading or exchange drawn against
actual value or buy and discount commercial paper, not to exceed
twenty-five per cer t of its capital and surplus.
Bills and Notes. The Uniform Negotiable Instruments Law is
In force. Statutes of 1917. Chapter 751.
Chattel Mortgages may be made on any personal property,
including growing crops and fruits, except personal property not
capable of manual delivery, articles of wearing apparel and personal
adornment, and the stock in trade of a merchant, provided that when
said personal property refers to fixtures or equipment of a baker, cafe
or restaurant owner, garage owner, machinist or retail or wholesale
merchant seven days’ notice must be given, otherwise the same is void
as to creditors of the mortgagor. In the absence of delivery and con­
tinued change of possession, the chattel mortgage will be void as to
creditors of the mortgagor unless acknowledged or proved, certified, and
recorded, as required in cases of grants of real property and accompa­
nied by affidavits of all the parties that it is made in good faitn, and
without any design to hinder, delay or defraud creditors. Such chattel
mortgages must be recorded in the office of the County Recorder of
the county in which the mortgagor resides, if he be a resident of this
state, and it shall also be recorded in the county in which the property
mortgaged is situated, or (save in the case of live stock, vehicles,
[other than motor vehicles] ana other migatory chattels) to which it
is removed. If removed to another county such chatel mortgage
must be recorded in such county within thirty days of such removal.
If such mortgaged property is voluntarily removed by the mortgagor
from the county where it is situated, the mortgagee may take posses­
sion of the same and dispose of it as a pledge though the debt is not
due, save in the case of life stock, vehicles (other than motor vehicles)
and other migatory chattels. When the mortgage on live stock,
vehicles (other than motor vehicles) and other migatory chattels has
been recorded, and a certificate of the same has been filed with the
Secretary of State by the County Recorder, the mortgage will not be
affected by removal of the property mortgaged to any county within
the State.
Collaterals. Are governed by the law relating to pledges of per­
sonal property. A pledge is a deposit of personal property by way of
security for the performance of any act. Delivery of the thing
pledged is essential to the validity of the bailment. When the per­
formance of the act for which the pledge is given is due in whole or
In part, the pledgee may collect what is due to him by the sale of the
property pledged. But before the property can be sold the pledgee
must demand performance thereof irom the debtor, if he can be
found, and must give actual notice to the pledgor of the time and
place at which the property pledged will be sold, at such a reasonable
time before the sale as will enable the pledgor to attend, but notice
of the sale may be waived by the pledgor at any time. The sale
must be by public auction and must be for the highest obtainable
price. After the sale the pledgee may deduct from the proceeds the
amount due and the necessary expenses of sale and collection, and
must pay the surplus to the pledgor. The pledgee, or a pledge­
holder, may purchase the property pledged when the same is sold
at public auction. A pledgee can not sell any evidence of debt
(collateral) pledged to him, except the obligations of governments,
states, or corporations; but he may collect the same when due.
Contracts. Certain contracts are invalid unless the same or
some note or memorandum thereof is ip writing. (See Statute of
Frauds.) A contract for personal services cannot be enforced for
over five years.
Conveyances. An estate in real property, other than an estate at
will, or for a term not exceeding one year, can be transferred only by
operation of law, or by an instrument in writing, subscribed by the
party disposing of the same, or by his agent thereunto authorized in
writing. Leases of agricultural land for a longer period than fifteen
years and of city property for a longer period than ninety-nine years are
void. A fee simple title is presumed to be intended to pass by a grant
of real property, unless it appears from the face of the grant that a
lesser estate was intended. A grant of real property may be made
In the following form: “I, A. B„ grant to C. D. all that real prop­
erty situated in (insert name of county) county. State of California,
bounded (or described) as follows: (Here insert description, or if
the land sought to be conveyed has a well-established descriptive
name it may be described by such as for instance: 'The Norris
Ranch.’) Witness my hand this (insert) day of (insert month). 19—
A. B." The use of the word “grant” implies the following cove­
nants: 1. That previous to the time of the conveyance the grantor
had not conveyed the same estate, or any right, title, or interest
therein to any person other than the grantee. 2. That such estate
is at the time of the execution of the conveyance free from Incum­
brances, done, made, or suffered by the grantor. Subsequently
acquired title passes by operation of law to the grantee, or his suc­
cessors. Instruments entitled to be recorded must be recorded by
the county recorder of the county In which the real property affected
thereby is situated. Every conveyance of real property, acknowl­
edged or proved and certified and recorded as prescribed by law from
the time it is filed with the recorder for record, is constructiv e notice
of the contents thereof to subsequent purchasers and mortgagees, and
every conveyance of real property other than a lease for a term not
exceeding one year is void as against any subsequent purchaser or
mortgagee of the same property, or any part thereof, in good faith
and for a valuable consideration, whose conveyance is first duly
recorded.
Corporations. Private corporations may be formed by the volun­
tary association of any three or more persons, in the manner prescribed
by statute not to exceed fifty years. A majority of such persons must
be residents of this State. Private corporations may be formed for
any purpose for which individuals may lawfully associate tnemselves.
The number of directors of corporations for profit, except thoee
mentioned as excepted, may be increased or diminished, by a major­
ity of the stockholders of the corporation to any number, not less
than three, who must be members of the corporation. The original
articles of incorporation must be filed with the Secretary of State,
and upon the filing of the Articles of Incorporation and affidavit,
where the same is required, the Secretary of State must issue to the


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2215

corporation, over the great seal of this State, a certificate that the
original articles containing the required statement of fact have been
filed in his office, and thereupon the persons signing the articles, ana
their associates, and such successors shall be a body politic and cor­
porate by the name stared in the certificate and for the term of fifty
years, unless it is, in the Articles of Incorporation, otherwise stated,
or in this Code otherwise specifically provided; provided however,
that no corporation shall be authorized to transact any business until
it shall have filed in the office of the County Clerk of the County
in which its principal place of business is to be transacted, a copy of
the Articles of Incorporation, certified by the Secretary of State. A
copy of any articles of incorporation filed in pursuance of this chapter,
and certified by the Secretary of State, must be received in all the
courts, and other places as prima facie evidence of the facts therein
stated. (See Foreign Corporations.) All stocks are assessable for the
purpose of paying debts and meeting expenses but no single assess­
ment must exceed 10 per cent. The franchise of all corporations as
distinct from its tangible property is subject to taxation.
Each stockholder of a corporation is individually and personally
liable for such proportion of its debt and liabilities incurred while
he was a stockholder as the amount of stock or shares owned by
him bears to the whole of the subscribed capital stock or shares of
the corporation, and for a like proportion only of each debt or claim
against the corporation, but such liability is barred within three
years after the obligation is incurred. Any creditor of the corporation
may institute joint or several actions against any of its stockholders
for the proportion of this claim, payable by each, and in such action
the court must ascertain the proportion of the claim or debt for which
each defendant is liable, and a several judgment must be rendered
against each in conformity therewith. If any stockholder pays his
proportion of any debt due from the corporation incurred while
he was such stockholder, he is relieved from any further personal
liabilities for such debt; and if an action has been brought against
him for such debt, it shall be dismissed as to him upon his paying
the costs, or such proportion thereof as may be properly chargeable
against him. The term “stockholder” extends to every equitable
owner of stock, although the same appears on the books in the name
of another, and also to every person who has advanced the install­
ments or purchase money of stock in the name of a minor, so long as
the latter remains a minor; and also to every guardian or other
trustee who voluntarily invests any trust funds in the stock. Stock
held as collateral security, if fact of pledge appears, or by a trustee, or
in any other representative capacity, does not make the holder thereof
a stockholder, except in the case above mentioned, so as to charge
him with any proportion of the debts or liabilities of the corporation;
but the pledgor, or person, or estate represented is to be deemed the
stockholder as respects such liabilities. In corporations having no
capital stock, each member is individually and personally liable for
his proportion of its debts and liabilities, and similar actions may be
brought against him, either alone or jointly with other members, to
enforce such liabilities as by this section may be brought against one
or more stockholders, and similar judgments may be rendered.
Courts. Terms and Jurisdiction. Justices’ courts have civil
jurisdiction: 1. In actions arising on contracts for the recovery of
money, only if the sum claimed, exclusive of interest, does not amount
to $300, and the jurisdiction of a justice of the peace in all cases
where money judgment is recoverable is limited to $300. 2. In
actions for damages for injury to the person, or for taking, detaining,
or injuring personal property, or for injury to real property, where
no issue is raised by the verified answer of the defendant involving
the title to or possession of the same, if the damages claimed do not
amount to $300. 3. In actions to recover the possession of personal
property, if the value of such property does not amount to $300.
4. In actions for a fine, penalty, or forfeiture not amounting to $300
given by statute, or the ordinance of an incorporated city or town,
where no issue is raised by the answer involving the legality of any
tax, impost, assessment, toll, or municipal fine. 5. In actions upon
bonds or undertakings conditioned for the payment of money, if
the sum claimed does not amount to $300, though the penalty may
exceed that sum. 6. To take and enter judgment for the recovery
of money on the confession of a defendant, when the amount con­
fessed, exclusive of interest, does not amount to $300. 7. Also con­
current jurisdiction with the superior courts, within their respective
townships in actions of forcible entry and detainer, where the rental
value of the property entered upon or unlawfully aetained does not
exceed $75 per month, and the whole amount of damages claimed
does not exceea $300. Also In actions to enforce and foreclose. iens
on personal property, where neither the amount of the liens nor the
value of the property amounts to $300.
Superior Court. The jurisdiction of the superior court is of two
kinds: 1. Original. 2. Appellate. The superior court has original
jurisdiction in all cases in equity: in all civil actions in which the sub­
ject of litigation is not capable of pecuniary estimation; in all cases at
law which involve the title or possession of real property, or the
legality of any tax, etc., and in all other cases in which the demand,
exclusive of interest or the value or the property in controversy,
amounts to $300; of actions of forcible entry and detainer, of pro­
ceedings in insolvency; of actions to prevent or abate a nuisance; of
all matters of probate, of divorce and for annullment of marriage;
and of all such special cases and proceedings as are not otherwise
provided for. They also have power to issue writs of mandamus,
certiorari, prohibition, quo warranto, and of habeas corpus on petition
by or on behalf of any person in actual custody in their respective
counties. Injunctions and writs of prohibition may be issued and
served on legal holidays ana non-juaiciai aays. The superior court*
have appellate jurisdiction in cases arising in justices’ and other
inferior courts in their respective counties provided the appeal be
taken within thirty days of the judgment.
District Courts of Appeal. The State is divided into three appellate
districts, each of which has a court of appeals with three justices.
These courts have appellate and original jurisdiction. The general
line of demarcation between the supreme court and these courts is
the amount of money or the value of the property involved. The
aistrict courts of appeal have appellate jurisdiction on appeal from
the superior courts in all cases at law in which the demand exclusive
or interest or the value of the property In controversy amounts to
*300 and does not amount to $2,000; also in all cases of forcible
entry and detainer (except such as arise in the justices' courts);
in proceedings in insolvency, and in actions to prevent or abate a
nuisance; in proceedings in mandamus, certiorari and prohibition,
usurpation of office, contesting elections and eminent domain, and
in such other special proceedings as may be provided by law (except­
ing in cases in which appellate jurisdiction is given to the supreme
court); also on questions of law alone in all cases prosecuted by
indictment or information to a court of record, excepting criminal
cases where judgment of death has been rendered. Said courts also
have appellate jurisdiction in all cases, matters and proceedings
pending before the supreme court which shall be ordered by the
supreme court to be transferred to a district court of appeal for
hearing and decision.
Supreme Court. Has original and appellate jurisdiction. In the
exercise of original jurisdiction it shall have power to issue writs of
mandamus, certiorari, prohibition, and habeas corpus; it shall also
have power to issue all other writs necessary and proper for the
complete exercise of its appellate jurisdiction. The supreme court
has appellate Jurisdiction in all cases in equity, except such as arise
in the justices’ courts; also in all cases at law which involve the title
or possession of real estate or the legality of any tax, impost, assess­
ment. toll or municipal fine, or in which the demand exclusive of
Interest or the value of the property in controversy amounts to
$2,000; also in all such probate matters as may be provided by law;
also on questions of law alone in all criminal cases where the judgment
of death has been rendered; the said court also has appellate juris­
diction in all cases, matters and proceedings pending before a dis-

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BANKING AND COMMERCIAL LAWS—CALIFORNIA

trict court: or appeal which shah be ordered by the supreme court to
be transferred to itself for hearing and decision.
Depositions. The deposition of a witness out of this State may
be taken upon a commission issued from the court under the seal of
the court, upon an order of the court, or a judge or justice thereof, on
the application of either party, upon five days’ previous notice to the
other. If the court be a justice’s court, the commission shall have
attached to it a certificate under seal by the clerk of the superior
court of the county to the effect that the person issuing the same
was an acting justice of the peace at the date of the commission. If
issued to any place within the United States, it may be directed to a
person agreed upon by the parties, or if they do not agree, to any
notary public. Judge or justice of the peace or commissioner selected
by the court, or judge, or justice issuing it. If issued to any country
out of the United States, it may be directed to a minister, ambassador,
codsuI, vice-consul, or consular agent of the United States in such
country, or to any person agreed upon by the parties or judge of a
court of record in such county. The commission must authorize the
commissioner to administer an oath to the witness. The testimony
of a witness out of the State may be taken by deposition in an action
at any lime after the service of the summons or the appearance of
the defendant: in a special proceeding, at any time after a question
of fact has arisen therein. Depositions must be taken in the form
of question and answer. The words of the witness must be written
down, in the presence of the witness, by the officer taking the dep­
osition or by some indifferent person appointed by him. It may
be taken down in short hand in which case it must be transcribed
to long hand by the person who took it down. When completed,
(t must be carefully read to or by the witness and corrected by him
in any particular, if desired, by writing, or causing his corrections
to be written at the bottom of the deposition, and must then be
subscribed by the witness. Corrections must be initialed by officer
before whom deposition is taken. If the parties agree in writing to
any other mode, the mode so agreed upon must he followed.
Depositions in this State. The testimony of the witness in this
State may be taken by depositions in an action at any time after the
service of summons or the appearance of defendant, and in a special
proceeding after a question of fact has arisen therein, in certain
enumerated cases.
Depositions for Use out of the State. Any party to an action or
special proceeding in a court or before a judge of a sister state, may
obtain the testimony of a witness residing in this State, to be used in
such action or proceeding, in the cases mentioned following: If a
commission to take such testimony has been issued from the court,
or a judge hereof, before which such action or proceeding is pend­
ing, on producing the commission to a judge of the superior court
with an affidavit satisfactory to him of the materiality of the testi­
mony, he may issue a subpoena to the witness, requiring him to
appear and testify before the commissioner named in the commis­
sion, at a specified time and place. If a commission has not been
issued and it appear to a judge of the superior court, or a justice of
the peace, by affidavit satisfactory to him: 1. That the testimony
of the witness is material to either party. 2. That a commission to
take testimony of such witness has not been issued. 3. That
according to the law of the State where the action of special proceeding
Is pending, the deposition of a witness taken under such circum­
stances, and before such judge or justice, will be received in the action
or proceeding, he must issue a subpoena requiring the witness to
appear and testify before him at a specified time and place. Upon
the appearance of the witness, the judge or justice must cause his
testimony to be taken in writing, and must certify and transmit the
same to the court or judge before whom the action or proceeding is
pending, in such manner as the law of that State requires.
Descent and Distribution of Property. Property, both real
and personal, of an intestate passes to his heirs. Upon the death of
either husband or wife, one-half of the community property belongs
to the surviving spouse: the other half is subject to the testamentary
disposition of the decedent, and in the absence thereof, goes to the
surviving spouse. Community property is all property acquired by
the husband and wife during their marriage, which does not include
property acquired by either gift, bequest, devise, or descent, which
is separate property. Dower interest does not exist. The separate
estate is distriDuted as follows: If the decedent leaves a surviving
husband or wife and only one child, or the lawful issue of one child,
in equal shares to the surviving husband or wife and child or issue of
such child. If a surviving husband or wife and more than one child
living, or one child living and the lawful issue of one or more deceased
children, one-third to the surviving husband or wife, and the remainder
in equal shares to the children and to the lawful issue of any deceased
child by right of representation. But if there be no child living, the
remainder goes to all the lineal descendants, and if they are in the
same degree of kindred to the decedent they share equally, otherwise
by right of representation. If the decedent leaves no surviving
husband or wife, the whole estate goes to the issue—the issue of
children taking by right of representation. If there is no issue the
estate goes one-half to the surviving husband or wife and the other
half to the father and mother in equal shares, or, if one be dead, to
the survivor: if there be no father or mother, then their one-half goes
in equal shares to the brothers and sisters or to their representatives.
If there is no issue, or husband or wife, the estate goes to the father
and mother, or the survivor, or. if both be dead, then »n equal shares
to the brothers and sisters, and to the children of any deceased brother
or sister by right of representation. If the decedent leaves a sur­
viving husband or wife, and neither issue, lather, mother, brother, nor
sister, the whole estate goes to the surviving husband or wife. If the
decedent leaves neither issue, husband, wife, father, mother, brother,
nor sister, the estate must go to the next of kin in equal degree.
Illegitimate children inherit from mother, also from father if recognized
in writing but can only inherit directly and not by representation.
These are the principal provisions of the law of succession. Tenancy
by the courtesy is not known to our law. If the person dies testate
all property passes as directed by the wiLl.
Executions. May issue any time within five years from entry of
judgment and after lapse of five years the judgment may be enforced
or carried into execution by leave of court upon motion, or by judg­
ment for that purpose, founded upon supplemental proceedings.
No right of stay exists except by order of the court in its discretion.
Execution may issue against the property of a Judgment debtor
after his death, only if the judgment be for recovery or real of per­
sonal property, or the enforcement of liens thereon. Real property
may be redeemed within one year, personal property not at all
Exemptions. The following property is exempt from execution*
1. Chairs, tables, desks, and books, to the value of $200. 2. Neces­
sary household, table and kitchen furniture belonging to the judgment
debtor, including one sewing machine, stoves, stove-pipes and furni­
ture, wearing apparel, beds, bedding and bedstead, hanging pictures,
oil paintings and drawings drawn or painted by any member of the
family, and family portraits, and their necessary frames, provisions
and fuel actually provided for individual or family use sufficient
for three months, and three cows and their sucking calves, four hogs
with their sucking pigs, and food for such cows and hogs for one
month, one piano, one shotgun, and one rifle. 3. The farming uten­
sils or implements of husbandry not exceeding in value the sum of
$1,000; also two oxen or two horses, or two mules, and their harness;
one cart or buggy and two wagons, and food for such oxen, horses,
or mules for one month: also all seed, grain, or vegetables, actually
provided, reserved or on hand for the purpose of planting or sowing
at any time within the ensuing six months, not exceeding in value
the sum of $200, and seventy-five bee hives, and one horse and ve­
hicle belonging to any person who is maimed or crippled, and the
same is necessary in his business. 4. The tools or implements of
mechanic or artisan necessary to carry on his trade; the notarial
seal, records, and office furniture of a notary public; the instruments
and chest of a surgeon physician, surveyor, or dentist, necessary to


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the exercise of their profession, wltn their professional libraries and
necessary office furniture; the professional libraries of attorneys.
Judges, ministers of the gospel, editors, school teachers and music
teachers and their necessary office furniture, including one safe and
one typewriter, also the musical instruments of music teachers ac­
tually used by them in giving instructions; and all the indexes, ab­
stracts, 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 ac­
tually used by the owner thereof for making his living; also one
bicycle when the same is used by its owner for the purpose of carrying
on his regular business, or when the same Ls used for the purpose
of transporting the owner to and from his place of business. 5, The
cabin or dwelling of a miner not exceeding in value the sum of $500;
also his sluices, pipes, hose, windlass, derrick, cars, pumps, tools,
implements, and appliance necessary for carrying on any mining
operations, not exceeding in value the aggregate sum of $500; and
two horses, mules, or oxen, with their harness, and food for same
for one month, when necessary to be used in any whim, windlass,
derrick, car, pump, or hoisting gear, and also his mining claim, actu­
ally worked by him, not exceeding in value the sum of $1,000. 8.
Two horses, two oxen, or two mules, and their harness, and one cart
or wagon, one dray or truck, one coupe, one hack or carriage for one
or two horses, by the use of which a cartman, truckman, huckster,
eddler, hackman, teamster, or other laborer habitually earns his
ving, and one horse with vehicle and harness, or other equipments
used by a physician, surgeon, constable or minister of the gospel in
the legitimate practice of his profession or business, with food for
same for one month. 7. One fishing boat and net, not exceeding
the total value $500, the property of anv fisherman bv the lawful
use of which he earns a livelihood. 8. Poultry, not exceeding in
value $75. 9. Seamen’s and seagoing fishermen’s wages and earn­
ings not exceeding $300. 10. The earnings of the judgment debtor
for his personal services rendered at any time within thirty days
next preceding the levy of execution or attachment, where it appears
by the debtor’s affidavit or otherwise, that such earnings are neces­
sary for the use of his family, residing in this State supported in whole
or in part by his labor; but where debts are incurred by any such
person, or his wife or family for the common necessaries of life, or
have been incurred at a time when the debtor had no family residing
in this State, supported in whole or in part by his labor, or incurred
for personal services rendered by any employee or former employee,
the one-half of such earnings above mentioned are nevertheless sub­
ject to execution, garnishment, or attachment to satisfy debts so
incurred. 11. The shares held by a member of a homestead asscciation
duly incorporated, not exceeding in value $1,000, if the person holding
the share is not the owner of a homestead under the laws of tnia
State. 12. All the nautical instruments and wearing apparel of
any master, officer, or seaman of any steamer or other vessel. 13. All
fire engines, 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 or­
ganized-under any law of this State. 14. All arms, uniforms and
accoutrements required by law to be kept by any person, and also
one gun to be selected by the debtor. 15. AU court houses, jails,
and town, county, and State buildings; all public buildings, grounds,
places, etc. 16. All material purchased for use in the construction,
alteration, etc., of any building, mining claim, etc., not exceeding the
value of $1,000. 17. All machinery, tools, and implements neces­
sary in and for boring, sinking, putting down, and constructing sur­
face or artesian wells; also the engines necessary for operating such
machinery, implements, tools, etc.; also all trucks necessary for the
transportation of such machinery, tools, implements, engines, etc., to
the value of $1,000. 18. All moneys, benefits, privileges, or im­
munities accruing, or in any manner growing out of any life insurance
on the life of the debtor, if the annual premiums paid do not exceed
$500. 19. Shares of stock in any building and loan association to
the value of $1,000. 20. Pensions from the United States Govern­
ment. No article, however, or species, of property mentioned in
this section, is exempt from execution issued upon a judgment re­
covered for its price or upon, a judgment of foreclosure of a mortgage
or other lien thereon. (For Homestead Exemptions, see Homestead.)
Fraud. (For Fraudulent Debtors, see Arrest.) Any contract
obtained through fraud is voidable. Consent Is deemed to have
been obtained through fraud only when It would not have been given
had such cause not existed. Actual fraud consists in the suggestion
as a fact of that which is not true, the positive assertion of that which
is not true in a manner not warranted by the information of the person
making It though he believes it to be true, the suppression of that
which is true by one having knowledge of it, and promises made with­
out any intention of performing, or any other act fitted to deceive.
Constructive fraud, consists of any breach of duty, which without an
actual fradulent intent, gains an advantage of the person in fault
by misleading another to his prejudice. Actual fraud is always a
question of fact.
Garnishment. Upon receiving instruction in writing from the
laintifl or his attorney that any person has in his possession, or under
is control, any credits or other personal property belonging to the
defendant or is owing any debt to the defendant, the sheriff must
serve upon such person a copy of the writ and a notice that such
credits, or other property or debts, as the case may be, are attached
in pursuance of such writ. All persons having any such property
at the time of serving of such writ, unless it Is delivered up or trans­
ferred or paid to the sheriff, shall be liable to the amount of such'
credits, property, or debts, until the attachment be discharged, or
any judgment by him recovered be satisfied. No garnishment upon
a bank is effective unless notice of the garnishment and a copy of the
writ is left at the particular branch where the money or evidences of
debt are actually located.
Holidays. Are every Sunday, the first day of January, 12th day
of February, the 22nd day of February, the 30th day of May, the
4th day of July, the 9th day of September, the 1st Monday in Sep­
tember, Columbus Day, 12th day of October, Armistice Day, Novem­
ber 11th, the 25th day of December, Presidential Election Day, every
day on which an election is held throughout the state, and every day
appointed by the President of the United States, or by the governor
of the State, for a public fast, thanksgiving or holiday. If the first
day of January, the 12th day of February, 22nd day of February,
the 30th day of May, 4th day of July, 9th day of September, 12th
day of October, Armistice Day, November 11th, or the 25th day of
December fall on a Sunday, the Monday following is a holiday. Every
Saturday from twelve o’clock noon until twelve o’clock midnight is
a holiday as regards the transaction of business in the public offices
of this State, and also in political divisions thereof where laws, or­
dinances or charters provide that public offices may be closed on
holidays; provided this shall not be construed to prevent or invalidate
the inssuance, filing, service, execution, or recording of any legal
process or written instrument whatever on such Saturday afternoons.
Contracts made on a holiday are valid.
Homestead. The homestead consists in the interest of the claim­
ant, divided or undivided, in the dwelling house in which the claimant
resides, and in the land on which the same is situated, selected, if the
claimant be married, from community property, or the separate
property of the husband, or, with the consent of the wife from her
separate property. When the claimant is not married, but is the head
of a family, the homestead may be selected from any of his or her
separate property. The homestead can not be selected from the
separate property of the wife without her consent, shown by her
making or joining the declaration of homestead. The homestead is
exempt from execution or forced sale, except in satisfaction of judg­
ments obtained: 1. Before the declaration of homestead was filed for
record, and which constitutes liens upon the premises. 2. On debts
secured by mechanics’ contractors’, sub-contractors’, artisans’, archi-

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BANKING AND COMMERCIAL LAWS—CALIFORNIA
tects’, builders’, laborers' of every class, materialmen’s or vendorsliens upon the premises. 3. On debts secured by mortgages on the
premises, executed and acknowledged by the husband and wife of an
unmarried claimant. 4. On debts secured by mortgages on the
premises, executed and recorded before the declaration of homestead
was died for record. In cases not enumerated above, in which, after
a judgment has been docketed against the homestead claimant, and
an execution for its enforcement levied on the homestead, it may be
shown by an appraisement applied for to, and ordered by, the court,
after proper proceedings, that the homestead exceeds in value the
amount of homestead exemption. Then steps may be taken, if it
can be done without material injury to the land, to divide the prop­
erty and reach the excess. The homestead of a married person can
not be conveyed or encumbered unless the instrument by which it
Is conveyed or encumbered is executed and acknowledged by both
husband and wife. Homesteads may be selected and claimed: 1. If
not exceeding $5,000 in value, by any head of a family. 2. If not
exceeding $1,000 in value, by another person upon death of either
spouse, if homestead is selected from community property or from
separate property of spouse joining therein, title thereto vests in sur­
vivor otherwise to the heirs or devises of the person whose property
was selected.
Husband and Wife. The husband is the head of the family.
He may choose any reasonable place or mode of living, and the wife
must conform thereto. In other respects their interests are separate.
Neither husband nor wife has any interest in the separate property
of the other, and either may enter into any engagement with the
other, or with any other person, respecting property, which either
might if unmarried. All property of either, owned by him or her
before marriage, and that acquired afterward by gift, bequest, devise
or descent, is the separate property of such person. All other prop­
erty acquired after marriage by either husband or wife or both, is
community property, but whenever any property real or personal is
conveyed to, or any interest therein or encumbrance acquired by a
married woman by an instrument in writing the presumption is that
the same is her separate property. The husband has the management
and control of the community property, with absolute power of dis­
posal other than testamentary, provided that he cannot make a gift
of the same or convey the same without valuable consideration, unless
the wife consents in writing, either personally or by her authorized
agent, and provided that in the execution of any instrument by which
community real property, or any interest therein is leased for a longer
period than one year, or is sold, conveyed, or encumbered, the wife
must join with him in the execution of any such instrument. The
community property is not liable for the contracts of the wife made
after marriage, unless secured by a pledge or mortgage thereof exe­
cuted by the husband. The husband is not liable for damages or
torts committed by wife except in a case where he would be jointly
liable with her if the marriage did not exist. The separate property
of the husband is not liable for the debts of the wife contracted before
marriage, and the separate property of the wife is not liable for the
debts of her husband, but is liable for her own debts contracted before
or after marriage. A husband and wife may hold property as joint
tenants, tenants in common, or as community property. Upon death
of husband or wife intestate, the entire community property goes to
the survivor. Either the husband or the wife may subject one-half
of the community property to testamentary disposition by will.
Interest. The legal rate of interest is 7 per cent and is due upon
judgments after rendition and upon other obligations unless there
is an express contract in writing fixing a different rate. The parties
may agree, in writing, to a higher rate of interest, but not exceeding
12 per cent for one year and not exceeding that rate for a longer or
shorter time.
Judgments. (See Actions.) Upon filing the judgment roll, which
is a record of the proceedings in the case, it must be docketed by the
clerk, when the abstract of judgment or of the decree of any court
of record of California, or of the United States, not stayed on appeal,
certified by the Clerk, is filed with the recorder of any county, it
becomes a lien upon any real property of the judgment debtor, not
exempt from execution. This lien continues for five years, unless the
enforcement of the judgment be stayed on appeal. A judgment is
barred by the act of limitation within five years, unless revived by
leave of court upon motion or by an action upon the judgment.
Judgment must first be satisfied out of property of the judgment
debtor which has been attache'd and in the custody of the sheriff.
Liens. Mechanics, material-men, contractors, sub-contractors,
artisans, architects, machinists, builders, miners, teamsters, dray­
men and all persons and laborers of every class performing labor
upon or furnishing material to be used in or furnishing appliances,
teams ana power contributing to the construction, alteration, or
repair of any building, wharf, bridge, ditch, flume, aqueduct, well,
tunnel- fence, machinery, railroad, wagon road, or other structure,
have liens upon the property upon which they have worked or fur­
nished material, and any person performing labor in a mining claim
has a lien upon the same, and the works owned and used by the owners
for reducing the ores from such mining claim, for the work or labor
done. The common carrier has a lien upon the luggage of a passenger
for the payment of his fare. One who sells real property has a ven­
dor's lien thereon. Improvers of personal property, depositaries for
hire, veterinary surgeons, livery stable keepers and persons pasturing
horses or stock, have a special lien, dependent upon possession.
Factors, banks, and laundry proprietors have a general lien, deendent on possession, on any personal property in their hands,
eaman 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,
bolts and other timber have a lien thereon for the amount due for
their personal services.
Every person performing work or labor in, with, about, or upon any
threshing machine or engine, horse-power, wagon, or other appliance
thereof, while engaged in threshing, has a lien thereon to the extent
of the value of his services, for ten days after ceasing work or labor,
provided, within that time, an action is brought to recover the amount
of the claim, persons repairing or altering any personal property have
a lien for the reasonable value of such service.
Limitations. If real estate is held adversely for five years, such
adverse possession ripens into title if claimant pays taxes for five years,
except against infants and persons under disability. The periods pre­
scribed for the commencement of actions other than for the recovery
of real property, are as follows: Within five years; (1) An action
upon a judgment or decree of any court of the United States, or of
any State w-ithin the United States. (2) An action for mesne profits
of real property. Within four years: (1) An action upon any con­
tract, obligation or liability founded upon an instrument in writing,
executed in this State. (2) An action to recover a balance due upon
a mutual open and current count or upon an open book account.
Within three years: (1) An action upon a liability created by statute,
other than a penalty or forfeiture. (2) An action for trespass upon real
property. (3) An action for taking, detaining or injuring any goods
or chattels, including actions for the specific recovery of personal
property. (4) An action for relief on the ground of fraud or mis­
take, the cause of action in such case not to be deemed to have accrued
until the discovery by the aggrieved party of the facts constituting
fraud or mistake: Within two years: (1) An action upon a contract,
obligation or liability not founded upon an instrument of writing,
(2) An action on a debt, liability or obligation evidenced by an abstract,
guarantee or certificate of title; and such action shall not be deemed
to have accrued until the discovery of the loss or damage. (3) An
action against a sheriff, coroner, or constable, upon a liability incurred
by the doing of an act in his official capacity, and in virtue of hia
office, or by the omission of an official duty, including the non-pay­
ment of money collected upon an execution; but this subdivision doea
not apply to an action for an escape. Within one year: (1) An action
upon a statute for a penalty or forfeiture, when the action is given to
an individual or to an individual ana the State, except when the


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statute imposing it prescribes a dliferent limitation. (2) An action
upon a statute, or upon an undertaking in a crimina action, for a
forfeiture or penalty to the people of this State. (3) An action for
libel, slander, assault, battery, false Imprisonment, or seduction, or
for injury to or for the death of one caused by the wrongful act or
neglect of another, or by a depositor against a bank for the payment
of a forged or raised check. (4) An action against a sheriff, or other
officer for the escape of a prisoner arrested or imprisoned on civil
process. (5) An action against a municipal corporation for damage*
or injuries to property caused by a mob or riot. Within six months:
(1) An action to recover property seized by tax collector. (2) To
recover corporation stock sold for delinquent assessment. To action*
brought to recover money or other jiroperty deposited with any bank,
banker, trust company, or savings and loan society, there Is no limi­
tation. If when the cause of action accrues against a person, he 1*
out of the State, the action may be commenced within the term
herein limited, after his return to the State, and if, after the cause of
action accrues, he departs from the State, the time of his absence 1*
not part of the time limited for the commencement of the action.
And if the person entitled to bring the action be, at the time the action
accrued, either a minor, insane, imprisoned for a term less than life,
or a married woman, and her husband is a necessary party with her
in commencing such action, the time of such disability is not a part
of the time limited for the commencement of the action. No acknowl­
edgment or promise Is sufficient to take a case out of the operation
of the statute of limitations, unless the same is in writing, signed by
the party to be charged. Part payment will not take the case out of
the statute of limitations. Where a cause of action has arisen In
another State, and would be barred by the statute of limitations of
that State, an action cannot be maintained here. There is no limita­
tion upon actions to recover money or property with banks or trust
companies. (See Accounts.)
Married Women. A married woman may be sued without her
husband being joined as a party and may sue without her husband
being joined as a party in all actions, including those for injury to
her person, libel, slander, false imprisonment, or malicious prosecution,
or for the recovery of her earnings or concerning her right or claim to
the homestead property. A married woman may become a sole
trader by the judgment of the superior court of the county in which
she has resided for six months next preceding the application. The
husband of the sole trader is not liable for any debts contracted by
her in the course of her sole trader’s business unless contracted upon
his written consent. A married woman may convey without consent
of her husband, and is not liable for the debts of her husband, but is
liable for her own debts contracted before or after her marriage.
She may contract as a femme sole so as to bind her separate property.
The wife may make a will of both her separate property and one-half
the community property. The earnings of the wife are not liable for
the debts of her husband.
Mechanics’ Liens. (See Liens.)
Mortgages. Any interest in real property which is capable of
being transferred may be mortgaged. A mortgage can be created,
renewed, or extended only by writing executed with the formalitiea
required in the case of a grant of real property. Every transfer of an
interest in real property, other than in trust, made only as the security
for the performance of any act, is to be deemed a mortgage, and the
fact that the transfer was made subject to defeasance on a condition
may, for the purpose of showing such transfer to be a mortgage, ba
proved (except as against the subsequent purchaser or encumbrancer
for value and without notice) although the fact does not appear by
the terms of the instrument. A mortgage is a lien upon everything
that passes by a grant of the property. A mortgage does not entitle
the mortgagee to the possession of the property. The assignment of
a debt secured by a mortgage carries with it the security. When a
mortgage is satisfied or the mortgage indebtedness paid, the mort­
gagee must satisfy the mortgage of record under penalty. A
mortgagee may foreclose the right of redemption of the mortgagee,
unless expressly stipulated the mortgage is not a personal obligation
on part of mortgagor.
Notes and Bills of Exchange. (See Bills and Notes.)
Pledge. (See Collaterals.)
Powers of Attorney. An attorney in fact may be appointed for
any purpose for which an agency can lawfully be created. Powers of
attorney can only be conferred by an instrument in writing subscribed
by the principal which must particularly specify the powers con­
ferred. If the instrument contains a power to convey or execute
Instruments affecting real property, it must be duly acknowledged
and must be recorded in the county within which the real property
to be conveyed or affected is situated. No such instrument which has
been so recorded is revoked by any act of the party by whom it was
executed, unless the Instrument containing such revocation is also
acknowledged or proved, certified, and recorded in the same office
In which the instrument containing the power was recorded. When
an attorney in fact executes an instrument transferring an estate
in real property, he must subscribe the name of his principal to it,
and his own name as attorney in fact.
Probate Law. (See Administration of Estates, Claims against
Estates of deceased persons. Descent and Distribution.) The superior
court has jurisdiction of proceedings in probate, and such proceeding*
must be instituted (1) In the county in which the decedent was a
resident; (2) in the county in which he may have died, leaving estate
therein, he not being a resident of the State; (3) in the county in
which any part of the estate may be, if the decedent died out of the
State and was not a resident. (4) In any county in which any part
of the estate may be, or the decedent not being a resident of the
State nor leaving an estate in the county of death. (5) In other case*
where application is first made, any person interested may petition
for probate of a will or may contest such probate within one year.
An inventory and appraisement is required of the executor or admin­
istrator within three months. Upon the return of the inventory the
court may set apart for use of the surviving husband or wife, or of
the minor children, all the property exempt from execution including
any homestead selected, providing the same was selected from the
common property or from the separate property of the person select­
ing or joining in the selection of the same. If none has been selected,
the court must select, designate and set apart and cause to be recorded
a homestead for the use of the surviving husband or wife, or of the
minor children, or if there be no surviving husband or wife, then for
the use of the minor children out of the common property, “or out
of the real estate owned in common by the decedent and the person
or persons to whom the homestead is set apart, or if there be no com­
mon property and no such jointly owned property, then out of the
real estate belonging to the decedent as his own separate property.
Property so set apart is not subject to further administration. If
upon the return of the inventory it appears that the value of the
whole estate does not exceed $2,500, the court may set apart the
whole of the estate for the use and support of the family of the
Protest. (See Bills and Notes.)
Replevin. There is no action of replevin in this State, but the
action of claim and delivery substantially takes its place. The
plaintiff in an action to recover the possession of personal property
may at the time of issuing the summons, or at any time before answer,
claim the delivery of such property. An affidavit must be made by
the plaintiff or by some one in his behalf showing that the plaintiff
is the owner of the property, or entitled to its possession, that the
property is wrongfully detained by the defendant, the alleged cause
of detention thereof, and that it has not been taken for a tax, assess­
ment or fine, or seized under an execution or attachment, or if so
seized that it is exempt; also the actual value of the property. Plain­
tiff must also give a bond in double the value of the property. The
defendant may give to the sheriff a written undertaking in double
the value of the property, and retain the same, but in case he fails

2218

BANKING AND COMMERCIAL LAWS—COLORADO

so to do the property is delivered to the plaintiff. Third parties
may upon affidavit of ownership, claim such property and secure
its release unless plaintiff bond against such claim. The judgment
in such action is in the alternative for a return of the property or
for its value in case a delivery can not be had.
Sale of Stock Shares. Permit must be obtained from State Cor­
poration Commissioner.
Statute of Frauds. A will must be in writing, except a nun­
cupative will. (See Wills.) An agreement not to be performed
within a year from making it must be in writing; also a special prom­
ise to answer for the debt, defraud, or miscarriage of another; also
agreements made in consideration of marriage other than a mutual
promise to marry. An agreement for the sale of goods and chattels
or things in action at a price not less than $200, unless the buyer
accept and receive part of the same or any part of the purchase
money. No estate in land will pass other than leases not to exceed
one year, unless in writing. An agreement authorizing or employing
an agent or broker to purchase or sell real estate for compensation
or for a commission. An agreement by its terms not to be performed
in the lifetime of the promisor or to make, devise or bequeath by will.
No evidence is admissable to charge a person upon representations
as to the credit of another, unless the representations be in writing.
However where promisor has received property to apply pursuant
to promise or a discharge of an obligation in consideration of the
promise, or where a creditor parts with value or where the new prom­
ise is substituted for the old debt, or where levy or execution is re­
leased or there is benefit moving to promise from any party or where
a factor undertakes for a commission to guarantee a sale, contracts
to answer for the default of another need not be in writing. Transfer
of personal property capable of manual delivery, except wine in cellars
and tanks, when not accompanied by delivery and change of posses­
sion are deemed fraudulent as to third parties unless notice or inten­
tion of sale is recorded seven days before transfer is made in accordance
with law.
Supplementary Proceedings. When an execution is returned
unsatisfied, the judgment creditor can obtain an order requiring the
judgment debtor to appear and answer concerning his property before
the judge or referee appointed by him, also, in case after the issuing
of an execution, upon proof by affidavit that the judgment debtor has
property which he unjustly refuses to apply toward the satisfaction
of the judgment, the judge may make the order, and instead thereof,
if it appear that the debtor is about to abscond, he may, by order of
the judge, be arrested and required by him to give security for the
judgment, or that he will attend from time to time during the pen­
dency of the proceedings, and that he will not in the meantime disose of any portion of his property, and in default of security he may
e committed to prison.
Taxes. On the first Monday of December of each year taxes
become delinquent, except the last installment of the real property
taxes, and thereafter 15 per cent is added for delinquency; provided,
that if they be not paid before the last Monday in April next succeed­
ing, 5 per cent is added for delinquency. On the last Monday in
April, of each year, all the unpaid portion of the remaining one-half
of the taxes on all real property is delinquent, and thereafter 5 per
cent is added for delinquency; and provided further, that the entire
tax on any real property may be paid at the time the first installment
as above provided is due and payable; and provided further, that
the taxes on all personal property, unsecured by real property, shall
be due and payable immediately after the assessment of said personal
property is made. Public Utility corporations are taxed for the
support of the State other property is taxed for county and city
purposes.
Wills. Every person over the age of eighteen years, of sound
mind, may. by last will, dispose of all his estate, real and personal.
A married woman may dispose of all her separate estate by will with­
out the consent of her husband, and may alter or revoke the will in like
manner as if she were single; she may also dispose of by will one-half
of the community property. Her will must be executed and proved
in like manner as other wills. Every will other than a nuncupative
will must be in writing, and every will other than an holographic
will and a nuncupative will, must be executed and attested as follows;
1. It must be subscribed at the end thereof by the testator himself,
or some person in his presence, and by his direction must subscribe
his name thereto. 2. The subscription must be made in the presence
of the attesting witnesses, or acknowledged by the testator to them
to have been made by him or by his authority. G. The testator
must, at the time of subscribing or acknowledging the same, declare
to the attesting witnesses that the instrument is his will, and 4.
There must be two attesting witnesses, each of whom must sign his
name as a witness at the end of the will, at the testator's request,
and in his presence and in the presence of each other. An holo­
graphic will is one that is entirely written, dated, and signed by the
hand of the testator himself. It is subject to no other form, and
may be made in or out of this State, and need not be witnessed. A
witness to a will should always write his name and residence. All
devises or gifts to a subscribing witness are void unless there are two
other competent subscribing witnesses. No will made out of this
State is valid as a will in this State, unless executed according to the
provisions of the code, except that a will made in a State or country
in which the testator is domiciled at the time of his death, and valid
as a will under the laws of such State or country is valid in this State
as to personal property. Wills proven out of state may be recorded
in county where testator has left over estate.
Bequests for charity are void unless made more than thirty days
before death and must in no case exceed more than one third of the
estate unless there are no legal heirs. Wills are revoked by marriage
unless provision for the same or an intention not to provide clearly
appears.

SYNOPSIS OF

THE LAWS OF COLORADO
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Messrs. Garwood and Garwood, Attorneys at Law
Ernest & Cranmer Bldg., Denver. (See Card in Attorneys’ List.)
Acknowledgments. Of deeds and instruments concerning real
estate, may be taken as follows: —
1. Within this State, before any judge, clerk, or the deputy clerk
of any court of record, clerk, and recorder of any county, or his deputy,
or notary public, or before any justice of the peace within his county.
2. Out of this State and within the United States before the
secretary of any such State or Territory, the clerk of any court of
record, any 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


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State or Territory to take and certify such acknowledgment; provided,
there shall be affixed to the certificate of such officer, other than
those above enumerated, a certificate by the clerk of some court
of record of the county, city or district wherein such officer resides,
under the seal of such court, as to the official capacity, true signature
and authority of the person certifying such acknowledgment.
3. Out of the United States, before any judge, clerk, or deputy
clerk, of any court of record of any foreign kingdom, empire, republic
state, principality, province, colony, island possession or bailiwick,
before the chief magistrate or other chief executive officer of any
province, colony, island possession or bailiwick, before the mayor
or chief executive officer of any city, town, borough, county or mu­
nicipal corporation, having a seal, or before any ambassador, min­
ister, consul, consular agent, charge d’affaires, commercial agent,
or any vice consul, etc., or any diplomatic consular or commercial
agent or representative, or deputy of any thereof, of the United
States or any other government or country appointed to reside in
the foreign country or place where the acknowledgment is made,
each and all certifying same under his official seal.
4. Out of the State, and within any colony, island possession
or bailiwick of the United States, before any such officer as above
enumerated in relation to acknowledgments in foreign countries
(except ambassadors, etc.) or before any notary public, having a
seal.
Actions. The distinction between the forms of actions at law and
suits in equity is abolished. All actions must be prosecuted by the
party in interest, and are governed by a code of civil procedure.
Administration of Estates. All demands not exhibited in twelve
months are barred, unless such creditor can find other estate of the
deceased not inventoried, saving, however, to femmes covert, persons
of unsound minds, imprisoned or beyond the seas, the term of one
year after their disability has been removed to exhibit their claims.
Creditors having liens on the property of the decedent can not fore­
close for one year unless permitted by the court and in no event
until the claim has been allowed. Administration is granted to
surviving husband or widow, or next of kin of an intestate, if they
will accept or are not disqualified: if no such relative appears within
twenty days after death of intestate, administration may be granted
to a creditor; if no creditor appears in ten days after twenty days
from death of intestate, or if next of kin files written relinquishment
county judge may select administrator. In counties having a popu­
lation of more than 50,000 on default of relatives administration
is made by public administrator. An abbreviated form of adminis­
tration is provided for estates of $2,000 or less. (See Wills; Husband
and Wife; Descents and Distributions.)
Agent. (See Partnerships.)
Aliens. Cannot hunt or possess firearms.
Arbitration. Differences may be submitted to arbitration by
consent of the parties in the form prescribed by statute, and a judg­
ment may be entered by the clerk of the District Court upon the
finding of the arbitrators.
Arrest. Imprisonment for debt, except in cases where one refuses
to deliver up his estate for the benefit of his creditors, or in cases
of tort or where there is a strong presumption of fraud. Is abolished.
In civil actions founded upon tort, where the finding is in favor of the
plaintiff and the verdict states that defendant was guilty of fraud;
malice, or willful deceit, execution may issue against the body of
the defendant, but not where the defendant shall have been con­
victed in a criminal proceeding for the same wrong. Imprison­
ment shall not exceed one year, and the prisoner is released upon
payment of the debt. The wit of ne exeat is granted under proper
circumstances. (See Fraudulent Purchasers.)
Assignment. Assignments for the benefit of creditors may be
made in accordance with provisions of the Assignment Act. Assign­
ments of wages not covered at the time of the assignment, or of
other sums to become due to the assignor, are invalid unless recorded
with the recorder of the county where the wages are to be earned,
or the sums are to become due, within five days from date thereof.
If the assignor is a married man or woman, residing with the wife
or husband, he or she must join in the assignment. There are also
provisions regulating assignments to wage-brokers and others.
Attachments. In actions on contracts, express or implied, the
laintiff may have the defendant’s property attached, upon filing a
ond in double the amount sued for, with affidavit of plaintiff, his
agent or attorney, setting forth the amount and nature of the debt
claimed, and one or more of the following grounds of attachment:
1. That defendant is a non-resident. 2. A foreign corporation. 3. A
corporation whose chief office or business is out of this State. 4. Is
evading service, or has been absent from State for four months, while
debt has been overdue. 5. Is about to remove his property out of
State. 6. Has fraudulently conveyed, or (7) fraudulently concealed
or removed or disposed of his property, or (8) and (9) is about to do
either, or has departed or is about to depart from this State, with the
intention of having his effects removed from this State. 10. Has
failed or refused to pay the price or value of any article delivered to
him to be paid for upon delivery, or (11) of any work or labor per­
formed, or for any service rendered by plaintiff, for defendant, to be
paid for upon completion. 12. That the defendant fraudulently
contracted the debt, or procured the money or property of the plain­
tiff. In justice courts, the fact that the debt is for farm products,
house rent, household furniture and furnishing, fuel, groceries and
provisions, clothing and wearing apparel for the debtor or his family.
Is additional ground for attachment. Garnishee process will issue in
aid of attachment when money or property of the debtor is found in
possession of third persons, property of non-residents and absconding
debtors can be attached as in most other States.
Banks, State. No bank hereafter organized shall do business,
unless it shall have a bona fide minimum paid up cash capital of
$25,000 and a paid in cash surplus of 10 per cent of the capital stock.
Generally no bank may take as security a lien on any part of its
capital stock; nor take as security a lien on any part of the capital
stock of other banks; nor take as security a lien for any person on
more than 25 per cent of the total shares of any other bank; nor
may it hold or purchase any portion of its own stock, or of the capital
stock of any other corporation, unless such purchase is necessary to
prevent loss upon a debt previously contracted in good faith, or in
other peculiar circumstances. Stock so purchased must be sold within
three years, and sooner if this can be done without impairing the bank’s
investment. Shareholders in banks, savings banks, trust deposit and
security associations shall be held individually responsible for debts,
contracts, and engagements of said association in double the amount
of the par value of the stock owned by them respectively. Any
banker, bank officer or employee who receives money or property
after he shall have had knowledge of the insolvency of said bank,
shall be deemed guilty of felony, and, on conviction, punished by
imprisonment in the penitentiary for not more than twenty years, or
by a fine of not more than $2,000, or both, and in addition shall be
individually responsible for the property received. Failure of the bank
or banker within thirty days after receipt of such money or property
is prima facie evidence of knowledge of the insolvency at the time of
such receipt. Loans to any one individual or corporation are limited
to 20 per cent of the paid in stock and surplus of the bank. Loans
secured on real estate limited to 25 per cent of total 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 saving deposits and to a period of five years.
No bank may engage in trade or commerce; or acquire realty, except
such as is necessary for its business or such as is necessarily acquired
m the protection or satisfaction of previously existing loans made in
good faith. Any realty so acquired must be sold in five years, or
sooner if possible. No director may borrow money in excess of 10 per
cent of the capital and surplus, without the consent of a majority of

BANKING AND COMMERCIAL LAWS—COLORADO
the directors other than the borrower. No bank shall loan to any
officer or employe thereof. All banks except National Banks, are
under the supervision of the State Bank Commissioner who examines
each institution at least twice yearly. If he finds capital impaired,
he requires the bank to make up deficiency, or takes possession
for purposes of liquidation, as circumstances may require. Insolvent
banks may be placed in control of the State Bank Commissioner.
Usually no receiver can be appointed, nor can a bank make an assign­
ment for creditors. Every bank makes reports of its condition to the
commissioner five times yearly. No bank can do business without
a certificate of authority from the commissioner. Savings banks are
subject to the state banking law under a number of special provisions
and restrictions.
Bills of Exchange. (See Commercial Paper.)
Bills of Lading and Promissory Notes. (See Commercial Paper.)
Blue Sky Law. On August 1, 1923, all corporations organized in
Colorado who desire to place on sale to the public, securities in certain
classes must comply with the "Securities Act” or “Blue Sky Law”
which provides that two copies of prospectus issued shall be filed with
the Secretary of State setting forth certain information with reference
to the company and the Secretary of State shall charge and collect a
fee of $10 for the filing of such prospectus.
Chattel Mortgages when recorded are good for two years where
sum secured does not exceed $2,500; for five years, when sum does not
exceed $20,000, and not exceeding ten years where sum secured
exceeds $20,000; but if such mortgage is made to secure a sum in
excess of $2,500 there shall be filed beginning two years from the date
of filing or recording of such mortgage, and within thirty days after
said two year period, and annually thereafter, on each anniversary
of the filing or recording of such mortgage, or within thirty days
thereafter, in the office of said clerk and recorder, a sworn statement
of the mortgagee or one of the mortgagees if there be more than one,
or by the assignee of such mortgagee, showing: (1) That said mortgage
was given in good faith to secure the payment of the sum of money
mentioned therein; (2) That said sum of money is unpaid; or if a
part has been paid, how much thereof remains unpaid. Chattel
mortgages may be extended after maturity, but not more than six
months after maturity, by filing 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 statute of limitations. Mortgages of stocks of goods
which reserve possession and power of sale to mortgagor, are void as
against creditors and bona fide purchasers. Disposing of mortgaged
property is larceny. Chattel mortgagee, his agent or attorney, now
allowed six months after maturity of debt in which to take possession
of mortgaged chattels, and during said six months or until possession
is taken by mortgagee, his agent or attorney, the mortgagor shall
have the right to pay said debt and have mortgage discharged as if
debt had been paid at maturity. Chattel mortgages, securing the
purchase price of any article may, at any time within six months
after the maturity of the indebtedness, be extended by the mortgagee
for a period not exceeding two years, and for like periods thereafter.
Chattel mortgages upon household goods used by the family, when
made by husband or wife residing with the other, must be made by
husband and wife jointly.
Collaterals. Persons holding stocks In corporations as collateral
security not personally liable as stockholders for corporate debts.
A pledgee of stock may nevertheless represent same at corporate
meetings. Transfer of stock either in pledge or otherwise, must be
noted on the books of the company within sixty days or the transfer
is void for some purposes.
Commercial Paper. To be negotiable, an instrument must con­
tain an unconditional order or promise to pay to order, or to bearer,
a certain sum of money or demand, on at a fixed or determinable
time or times. The instrument may authorize that upon default
of payment of any installment, or of interest, the whole shall become
due, and in case of non-payment, the sale of collateral securities,
or confession of judgment, or waive benefit of any law intended
for the advantage of the obligor. An instrument payable on con­
tingency is not negotiable. The date expressed is prima facie the
true date. One in possession of an incomplete instrument has prima
facie authority to fill in the blanks, but authority must be strictly
pursued. Consideration is prima facie presumed. A pre-existing
debt is a valuable consideration. An accommodation party is liable
to a holder for value with notice. Two or more payees, unless part­
ners, must all indorse unless one has authority for all. An instrument
payable to a person as cashier or other fiscal officer of a bank or corpo­
ration is deemed prima facie payable to the bank or corporation, and
may be indorsed by the corporation or by the officer. For one to
be a holder in due 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 or defect in title. Holder is deemed
prima facie holder in due course; but when the title of a person who
has negotiated it is shown to be defective, the burden is upon the
holder to prove himself a holder in due course. A qualified indorser
warrants the genuineness of the instrument; that he has a good title,
and that he has no knowledge of any invalidity. An unqualified
indorser warrants the instrument valid 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.
Presentment must be made on due day, and notice of non-acceptance
of non-payment given on next business day to all parties primarily
liable unless one has authority for all. Every negotiable instrument
is payable at the time fixed without grace. Waiver of protest is
deemed a waiver of formal protest, presentment, and notice of dis­
honor. Protest is required only in case of dishonored bills appear­
ing on their face to be foreign. It is optional in case of other nego­
tiable instruments. Bills drawn and payable within this State are
inland; others are foreign. Parties secondarily liable are discharged
by extension of time of payment. Payment by a party secondarily
liable, unless an accommodation party, does not discharge the instru­
ment, but he may agin negotiate it. A qualified acceptance dis­
charges drawer and indorser unless they assent. Assent is presumed
after notice, unless they dissent. Holder can refuse to receive a
qualified acceptance. No presentment for payment is necessary
after non-acceptance. A note drawn to maker’s order is not com­
plete unless indorsed by him. A check must be presented within
a reasonable time or drawer will be discharged to the extent of the
loss caused by the delay. The bank is not liable to the holder until
it accepts or certifies the check. When not otherwise provided by
this act, the law merchant prevails. This act applies only to instru­
ments executed on or after July 20, 1897. All instruments falling
due on Sunday or holiday are payable the next business day. In
Denver, during June, July and August, Saturday from twelve o’clock
noon until twelve midnight is a holiday, but negotiable instruments
falling due on Saturday are payable and protestable on Saturday or
next business day at the option of the holder. The provisions con­
cerning commercial paper in this state are practically the same as
in all states where the Negotiable Instruments Act has been adopted.
Conveyances. No joint tenancy in real property unless expressly
declared in the deed, except in certain particular cases. Unless
so declared grantees shall be deemed tenants in common. Lands
not in possession may be conveyed. Not necessary for wife to join
In deed except in a conveyance of or a mortgage of a homestead,
entered as such of record. Witnesses are unnecessary. Seals are
not necessary but a printed or ink seal is advisable. Unacknowl­
edged deeds are deemed notice from the date of filing but they can
not be read in evidence unless subsequently acknowledged or proved,
unless they are on record for over thirty years. (See Acknowledg­
ments; Husband and Wife.)


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2219

Corporations. Three or more persons may form a corpora­
tion by filing a certificate in the proper offices, stating the name,
objects for which organized, amount of capital stock (the par value
of each share shall be in such sum not exceeding 3100.00 per share
as is provided for in the certificate of incorporation or such shares
may be issued without any nominal or par value), term of
existence (not to exceed twenty years, except in particular cases),
number of directors (not less than three or more than thirteen), and
names of those to manage the corporation for the first year, the place
where principal office is to be kept, and counties in which its business
is to be carried on. If part of the company’s business is to be carried
on beyond the limits of the State, that fact shall also be stated in
the certificate. The certificate shall also state whether or not cumula­
tive voting shall be permitted. Fee for 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
thousand dollars in excess of $50,009 represented by capital, property
and assets employed and located in Colorado. Directors of a mining
or manufacturing corporation cannot encumber the mines or plant
of such corporation until the question has been submitted to the
stockholders and a majority vote of all the shares of stock has been
made in favor of such proposition; and such mortgage or encumbrance
without such consent is absolutely void. Cumulative method of
balloting for directors is permitted. Stockholders are liable for
corporate debts to the amount unpaid upon the stock, except that
stockholders in banks, savings banks, trust, deposit, and security
associations are individually responsible in double the amount of the
par valye of their stock. When the stock becomes fully paid up, a
certificate to that effect should be filed. The directors are required
annually, and within sixty days from January 1st, to file a report
stating the amount of the capital stock the proportion actually paid
in, and the amount of existing debts, together with many other
particulars. A failure to file such report makes all the directors and
officers of the company jointly and severally liable for all the debts
of the company contracted during the year next preceding the time
when such report should have been filed, and until such report shall
be made and filed, and subjects president and secretary to a fine of
not less than $1,000. No meetings of the board of directors can be
held outside 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
term of corporate existence than domestic corporations of like char­
acter, but must file renewal certificates and pay fees therefor In the
same manner as domestic corporations, provided that such renewal
must not extend the life of the foreign corporation beyond the term
fixed by the State where it was organized. Generally no foreign
corporation shall have or exercise any corporate powers or hold or
acquire any real or personal property, franchises, rights, or privileges,
or be permitted to do any business or prosecute or defend any suit in
this State, until it has filed in the proper offices copy of its charter and
incorporation act, and designated an agent upon whom service of
process can be made, and until all prescribed fees including ticense
tax, shall have been paid, and until issuance of a certificate setting
forth such full payment.
In addition to all other fees and taxes, every domestic corporation
shall pay on or before the first day of May of each year an annual
State corporation license tax to the secretary of the State of Colorado,
of ten dollars on a capitalization of one hundred thousand dollars or
less and ten cents on each one thousand dollars or fractional part
thereof, when the capitalization is more than one hundred thousand
dollars, and every foreign corporation shall pay at the same rate
upon that proportion of its capital, property and assets located and
employed in Colorado.
Other provisions of the Revenue bill, approved August 4, 1917,
and this act regarding annual reports, assessment of tangible and
Intangible property, etc., too voluminous to be quoted, make it
advisable that care should be exercised by both domestic and for­
eign corporations operating in the State to acquaint themselves fully
with its requirements. (See Guaranty Companies; Trust Companies;
Transfer of Corporation Stock.)
Securities Act. (See Blue Sky Law.)
Courts. Justices of the peace iiave jurisdiction in matters involv­
ing less than $300, county courts in matters involving less than
$2,000, except in the administration of estates, where jurisdiction
is unlimited. The district court is the court of general jurisdiction.
The supreme court is the court of final appeal, and also has some
original jurisdiction, as in cases of habeas corpus, mandamus and
other remedial writs.
Bays of Grace. Are abolished. (See Commercial Paper.)
Depositions. The deposition of a witness out of the State shall
be taken upon commission issued by the clerk of the court where
the suit is pending on the application of either party on five days’
revious notice to the other, which notice shall be accompanied
y a copy of the interrogatories to be attached to the commission.
It may be issued to a person agreed upon by the parties or to any
judge or justice of the peace, or to a commissioner appointed by the
governor of the State to take affidavits and depositions in other States
and Territories, or to a notary public. The adverse party may file
and have attached to the commission such cross-interrogatories as
he may desire. Parties may agree by written stipulation to take
the deposition orally, or, upon proper cause shown, may obtain an
order of court directing it to be so taken. Depositions can be taken
at any time after starting suit.
Descents and Distributions. The estate of an intestate descends
one-half to the surviving husband or wife, and the residue to the
surviving children and descendants of children, if any; if none,
then the whole descends to such surviving husband or wife. Except
as enumerated the estate of every intestate descends: I. To his
children surviving, and the descendants of his children who are dead,
the descendants collectively taking the share which their parents
would have taken if living. 2. If no children nor their descendants,
then to his father and mother, share and share alike, and if one dead,
then to the other; if no father or mother, then to his brothers and
sisters, and to descendants of borthers and sisters who are dead,
the descendants collectively, taking the share of their immediate
ancestors in equal parts. 3. If none of the foregoing living, then to
the grandfather, grandmother, uncles, aunts and their descendants,
the descendants taking collectively the share of their immediate
ancestors in equal parts. 4. If none of the relatives above enu­
merated be living, then to the nearest lineal ancestor and their descend­
ants, the descendants collectively taking the share of their immediate
ancestors in equal parts. All posthumous children or descendants
of the intestate, inherit as if born in the lifetime of the intestate,
and all children of the half blood and all legally adopted children
shall inherit as children of the whole blood. Illegitimate children
Inherit if parents subsequently intermarry. Convicted Murderers
shall not inherit property of victim.
Dower. Common Law Dower and curtesy are abolished, as such,
but statutory half of husband and wife in each others estate is given
In lieu of old common law dower and surtesy. (See Statutes.)
Executions. Executions may be issued where no appeal is taken,
and when placed in the hands of an officer become a lien upon all
personal property of the debtor not exempt, in the county to which
it Is issued, and it may be directed to the sheriff of any county in
the State. Executions may issue upon judgments at any time after
five days from judgment and within twenty years from the date of
entry but from and after twenty years from the entry of judgment, it is

2220

BANKING AND COMMERCIAL LAWS—COLORADO

considered satisfied unless revived as provided by law. Debtor or
legal representative has six months to redeem land from sale under
execution. Judgment creditor has three months after expiration of
said six months. Judgments can be made a six year lien on real
estate of debtor by filing transcript with recorder of the county where
the real estate is situated.
Exemptions. Homestead, consisting of town house and lot or
lots, or of any farm to the value of not to exceed $2,000, is exempt,
when such homestead has been entered of record as such, and is
occupied by a householder, the head of a family. Personal property
exempt includes all wearing apparel of the debtor and his family
pictures, school books and library, beds and bedding, stoves, cook­
ing utensils, and household furniture, not exceeding $100; provisions
and fuel for six months; tools, implements, or stock in trade, up to
$200; one cow and calf, ten sheep and necessary food for six months;
working animals up to $200; the library and implements of a pro­
fessional man up to $300; one bicycle and one sewing machine.
Persons not the heads of families are entitled to tools, working animals,
and stock in trade, not exceeding $300 in value. When debtor is
head of family, or wife of head of family, 60 per cent of wages due
at time of levy, under execution, attachment, or garnishment, is
exempt, when such family resides in the State and Is dependent,
wholly or partially upon such earnings for support. If such wages
do not exceed $5.00 per week at the time of levy, they are entirely
exempt.
Fraud. Parties to any fraudulent sale of any lands, goods or
chattels, or who conceal, secrete, remove or dispose of any goods
or chattels, or are parties to any bond, suit, judgment, or execution,
contract or conveyance had made, or contrived with intent to deceive
and defraud, or defeat, hinder, or delay creditors; are criminally
liable. One who purchases goods on credit under an assumed or
fictitious name with intent to defraud the seller; or having purchased
goods on credit shall, with intent to derraud the seller, sell, hypothe­
cate, or otherwise dispose of them out of the usual course of business,
or secrete himself, or abscond, shall be guilty of a misdemeanor.
Frauds, Statute of. The following must be in writing; Con­
tracts for leasing of land for period longer than one year or for the
sale of lands, or any interest in lands; every agreement which by
its terms is not to be performed within one year; every special
promise to answer for the debt, default or miscarriage of another;
every agreement, promise, or undertaking made upon consideration
of marriage, except mutual promises to marry, and every contract
for the sale of any goods, chattels, or things in action, for the price
of $50 or more, unless the buyer accepts and receives part of such
goods or the evidence of some of them, or the buyer at the time
pays part of the purchase money. (See Sales of Personal Property.)
Garnishment. (See Attachments.)
Holidays. The following are legal holidays in Colorado: First
day of January, 12th day of February, 22d day of February, 30th
day of May, 4th day of July, Presidential Election Day, 11th day of
November (Armistice Day), 25th day of December, Thanksgiving Day.
Arbor Day, being third Friday in April, Colorado Day, being August 1 st.
Labor Day, being first Monday in September. Columbus Day, being
12th day of October, 12th of October does not affect commercial paper
nor interfere with judicial proceedings. In addition to the above,
Saturday is a legal half holiday during June, July, and August, in all
cities of Colorado having a population of 25,000 and over. When
Christmas or any legal holiday falls on Sunday, the following Monday
is the legal holiday. Not all the above are legal holidays for every
purpose.
Husband and Wife retain their separate property, real, personal
and mixed owned at marriage, and any such property which shall
come to either of them by descent, devise, or bequest, or the gift
of any person, for their own separate use. Such property of the
wife is not liable for the husband’s debts. Wife may carry on trade
or business, sue and be sued, contract debts, and execute promissory
notes, bonds, bills of exchange, and other instruments precisely as
if sole and may convey real estate without the husband joining in
the deed. Any chattel mortgage upon, or sale of, the household
goods used by the family, and any conveyance of, or mortgage upon,
a homestead, and any assignment of future wages, or sums to become
due in the future, when made by husband or wife residing with the
other, must be joined in by that other. A married woman may
make a will, but neither husband nor wife shall devise or bequeath
more than half of his or her property away from the other without
the consent in writing of the other, executed after death of the testator
or of testatrix. Marriage revokes a will previously made. The
husband is liable for the debts and liabilities of the wife contracted
before marriage to the extent of the real and personal property he
may receive with or through her, or derive from the sale or rent of
her lands, and no further. The expenses of the family and the edu­
cation of the children are chargeable upon the property of both
husband and wife, and in relation thereto they may be sued jointly
or severally. Either husband or wife living together can separately
declare property of record in the name of the other “A Homestead,”
by an entry of record over his or her signature. Neither can mortgage
nor convey homestead without the signature of the other.
interest. The legal rate is 8 per cent, but any other rate may be
fixed by agreement with the exception of loans of $300 or less upon
which the maximum rate is 12 per cent. Eight per cent is allowed
on overdue bonds, bills, promissory notes, and judgments. County
town, and city warrants and other like evidences or certificates of
municipal indebtedness bear 6 per cent interest from presentation.
Judgments. A transcript of judgment may be filed in the office
of the county clerk and recorder of any county in the State, and
thereupon such judgment becomes a lien upon all real property
owned by the judgment debtor in that county. The lien holds for
six years from the date upon which filed (and successive transcripts
may be filed.) An unsatisfied judgment should be revived every
twenty years. (See Executions.)
Limitations. Actions for the recovery of land must be brought
within twenty years after accrual of right. Actions for the recovery
of lands actually occupied by another under a connected title deducible of record or under tax or execution or other sale ordered by
court must be brought within seven years after possession taken.
If title is acquired after taking possession, statute runs from date
of acquiring title. Actual possession of land for seven years under
claim and color of title with payment of all taxes for said period,
constitutes the possessor owner according to the purport of his paper
title. The same is true of vacant and unoccupied lands, unless some­
one with a better paper title pays the taxes for one or more years
during such term of seven years. Actions of debt founded upon
contract express or implied; upon judgments of courts not courts of
record; for arrears of rent; of assumpsit—or case founded on any
contract: for waste and trespass on land and for replevin, must be
begun within six years after the cause of action accrues. Actions
against sheriffs and coroners, for liability incurred by them in their
official capacity, shall be brought within one year after the cause of
action accrues, also actions for assault and battery, false imprison­
ment, slander and libel; also actions for penalties or forfeitures of
penal statutes. Bills of relief for fraud must be filed within three
years after discovery, in case of a trust not cognizable by the courts
of common law within five years. In actions accruing out of the
State upon contract, express or implied, or upon any sealed instru­
ment in writing, or judgment or decree of any court, more than six
years before the commencement of the action the statute of limita­
tions may be pleaded in bar of recovery. If a judgment has been
rendered without this State more than three months before suit in
this State, and is based on a cause of action more than six years old,
such cause of action can be pleaded in bar of the judgment. The


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Federal Reserve Bank of St. Louis

constitutionality of this latter provision has, however, been attacked,
and is very doubtful. (See 1X7 Fed. 400.)
Married Women. (See Husband and Wife.)
Mechanics’ Liens. Mechanics, material-men, contractors, sub­
contractors, builders, miners, and all persons of every class performing
labor upon, or furnishing materials used in the construction or repair
of any building, or any other structure or improvement upon land,
also all who have rendered their professional, skilled service upon
such structure, have a lien upon the property, also those who work or
furnish materials or machinery for the working of a mining claim
or mineral deposit shall have a similar lien. Liens rank in the follow­
ing order: 1. Laborers or mechanics working by the day or piece,
without furnishing material. 2. Sub-contractors and material-men.
whose claims are either entirely or principally for materials, machinery
or other fixtures. 3. All principal contractors. Laborers are allowed
one month, material men two months, and the original contractor
three months after the completion of the structure, within which to
file claim of lien. Action to enforce such lien must be commenced
within six months after compietion of the building upon which it is
claimed.
Mortgages. Ordinary mortgages on realty are in common use;
also deeds of trust to a public trustee and to private trustees. A
trust deed to private trustee is foreclosed as to a mortgage. In case
the public trustee is named, the property is sold by him as provided
in the deed, after advertisement in a newspaper designated in the
trust deed, and such advertisement shall not be less than four weeks.
Upon a sale by the public trustee, a certificate of sale is issued. A
subsequent incumbrancer may redeem by paying the amount bid,
and the sum so paid shall be added to the amount of the subsequent
encumbrance. The grantor In the trust deed, or his assigns may
redeem from sale within six months. After six months, and within
nine months, a judgment creditor may redeem. After the expiration
of the period of redemption the public trustee executes a deed to
the property to the holder of the certificate of sale, which is assignable.
Redemption from sales of mortgaged property the same as sales under
executions.
Notes and Bills of Exchange. (See Commercial Paper.)
Partnerships, Limited and Special. A limited partnership
may consist of one or more general partners, jointly and severally
liable and one or more special partners 'contributing a specified
amount of cash or property, who are not liable for the debts of the
partnership beyond the amount so contributed. Only the general
partners can bind the firm. A certificate must be signed, acknowl­
edged, published, and filed of record giving details of partnership
All persons doing business under any name other than their per­
sonal names, must file an affidavit showing the real persons repre­
sented, or they may not bring suits upon debts due. and may ba
convicted and fined.
Powers of Attorney. Powers of attorney for the conveyance
of lands must be acknowledged in the same manner as deeds, and
must be recorded in the same county wherein the real property to
be conveyed is situate.
Protest. (See Commercial Paper.)
Replevin. A writ of replevin may issue in any suit to recover
possession of personal property upon filing a bond in double the
value of the property, with affidavit of ownership or right to pos­
session, wrongful detention and value of property, etc. Redelivery
bond in similar amount may be given by defendant in forty-eight
hours after levy.
Sales of Personal Property. Every sale or assignment of goods
and chattels in the possession or under the control of the vendor
is void, as against creditors or subsequent purchasers in good faith,
unless accompanied by immediate delivery and followed by actual
and continued change of possession. Sales of any portion of a stock
of merchandise otherwise than in the ordinary course of trade are
prima facie fradulent and void against creditors, unless seller and
purchaser together, before sale, make inventory, showing quantity,
and cost price of the various articles; and unless purchaser makes
full inquiry of the seller as to names and addresses of all creditors
of seller, and the amount due to each, and obtains an answer; and
notifies each creditor of the proposed sale, the cost price, and the
proposed selling price; and unless the purchaser retains the inventory
and written answer at least six months after the sale. This act
does not apply to sales by legal representatives of public officers
conducting sales in their official capacity and there are some other
exceptions to this law. (See Husband and Wife.)
Suits. (See Actions.)
Taxes are generally a lien on real estate until paid, as also upon
stocks of goods including new goods added thereto, Taxes may
be paid in two semi-annual installments; the first on or before the
last day of February, and the residue on or before the last day of
July of the year following the one in which they are assessed. Tax
sales are held in November when tax certificates are given to pur­
chasers on which treasurer’s deed may issue after three years. Real
estate sold for taxes redeemed any time until treasurer’s deed issues.
All mines and mining property of the class heretofore exempted by
the constitution of the State shall be assessed and taxed and the
taxes levied and enforced by sale of the property taxed in default
of payment, as is provided by law in the case of other classes of taxable
real properties. Delinquent taxes carry interest at the rate of 12 to
18 per cent per annum. Household goods to the value of $200 belong­
ing to a head of a family are exempt.
Wills. Males of the age of twenty-one years, and females of
the age of twenty-one years, may dispose of their real and personal
roperty by will but personal property may be disposed of by will
y any person of the age of seventeen years. For restrictions as to
married persons, see “Husband and Wife.” All wills, whether of
realty or personalty shall be in writing signed by the testator or
some one for him in his presence and at his direction, and attested
In his presence by two or more credible witnesses. Unless otherwise
expressed in the will an after-born child will share in the property.
Devises and bequests to witnesses are nun ana void, unless the will
be attested by a sufficient number of witnesses exclusive of such
persons. No wili can be revoked otherwise than by the subsequent
marriage of the testator, or by burning, tearing, or obliterating the
same by the testator, or in his presence and by his direction and
consent, or by another will or credit, declaring the same, duly signed
and witnessed, or by a formal annulment thereof. The property
devised by will must be administered by the county court, and all
property of non-residents must generally be administered to clear title
to real property situated in this State. (See Husband and Wife;
Descents and Distributions. Administration of Estates.)

E

BANKING AND COMMERCIAL LAWS—CONNECTICUT
SYNOPSIS OF

THE LAWS OF CONNECTICUT
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Field. Durant & Levere, Attorneys at Law, 129
Church St.. New Haven. (See Card in Attorneys List)
Accounts. In all actions for a book debt, the entries of the
parties in their respective books shall be admissible in evidence.
(For limitation of actions on accounts, see Limitations to Suits.)
Acknowledgments. (See Conveyances.)
Actions. There is but one form of civil action. Mesne process
in civil actions consists of a writ of summons or attachment, describ­
ing the parties, the court to which it is returnable, and the time and
place of appearance, and embodies the plaintiff's complaint. All such
writs shall be signed by a justice of the peace, commissioner of the
superior court, or judge or clerk of the court to which it is returnable.
The complaint should contain a concise statement of the facts con­
stituting the cause of action and a demand for relief, and legal and
equitable relief may be demanded in the same action, except in actions
before justices of the peace, who have no equity jurisdiction.
Administration of Estates. The probate court has jurisdic­
tion of deceased estates. Administration on intestate estates Ls
granted to the husband or wife, or next of kin or to both. On their
refusal or incapacity, or upon objection by any creditor or heir to
such appointment found reasonable by the court, then to any other
person whom the court deems proper. Bonds, which must be fur­
nished by the administrators or executors, are usually made double
the estimated value of the personal property. Bonds of surety com­
panies authorized to do business in the State may be accepted. Where
the will waives the bond a nominal bond is required, usually in double
the amount of the debts of the testator. Deceased estates may be
settled as solvent or insolvent. Not less than six months are limited
for the presentation of claims against deceased estates, whether
solvent or insolvent. Such claims are presented to the adminis­
trator or executor if the estate is solvent,, or to commissioners
appointed by the probate court if the estate is insolvent. Creditors
not inhabitants of this State may exhibit their claims against any
estate which has not been represented insolvent, at any time within
one year after order of notice, and if presented more than six months
after order of notice, shall be entitled to payment only out of the clear
estate remaining after 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
solvent estate of the disallowance of a claim. Twelve months is the
usual time allowed for the settlement of deceased estates. Admin­
istrators and executors may mortgage real estate if shown to be for
benefit of the estate, after due application to and hearing in probate
court.
Affidavits. Civil actions do not ordinarily have to be supported
by affidavits. Affidavits have no weight as evidence, and are never
admitted as such.
Aliens. Any alien resident of any of the United States, and
any citizen of France, so long as France shall accord the same rignt
to citizens of the United States, may purchase, hold, inherit, or
transfer real estate in this State in as full a manner as native-born
citizens.
Arbitration. Parties to any controversy desiring to submit the
same to arbitration under a rule of court, and having signed and
sworn to an agreement to that effect, may, upon filing this agree­
ment in the court having jurisdiction of the subject matter, have
this agreement entered of record and obtain a rule of court that
the said parties shall submit to and be finally concluded by such
arbitration; or the said parties may personally appear in court
and acknowledge that they have mutually decided to submit their
controversy to the arbitration of certain named persons and may
obtain a rule of court of similar purport; or in case of an action
pending in court, if the parties thereto desire to refer it to arbitra­
tion, each may choose one arbitrator and the court appoint a third;
and in either of these three cases, the award of the arbitrators being
returned and accepted by the court, judgment shall be rendered
pursuant thereto, and execution granted thereon, with costs.
Arrest. The body is exempt in ordinary actions for debts, except
for money received by one acting in a fiduciary capacity, or where
there is fraud in contracting the debt or in concealing attachable
property so that it may not be reached by civil process. In actions
generally, no attachment shall be granted against the body except
for fraud. A debtor committed to jail on civil process can be released
on taking poor debtors' oath. The debtor will not be released if his
oath is overcome by rebutting evidence.
Assignments In Insolvency. Operation of this section sus­
pended during continuance of U. S. Bankruptcy Act.
Attachments. Attachment may be made upon the original
process, and is served by attaching the goods or lands of the defend­
ant, or, if sufficient goods be not found, the person in actions where
there is fraud in contracting the debt or concealing property or refus­
ing to pay an admitted debt. Attachments may be granted upon all
complaints containing a money demand. Supplemental attachment
may be ordered by the court upon application at any time during
the pendency of the action. If the plaintiff be a non-resident, he is
required to furnish a bond for prosecution from twenty dollars to one
hundred and forty dollars, according to amount attached. An attach­
ment lien expires unless execution is levied within sixty days after
final judgment upon the attached personal property, or within four
months upon the attached real estate. (See Exemptions.)
Banks. (See State Banks and Trust Cos.)
Bills of Exchange. (See Notes and Bills.)
Bills of Lading. Uniform Bills of Lading Act passed in 1911.
Chattel Mortgages. (See Mortgages, Conditional Sales, and
Interest.)
Collateral Inheritance or Succession Tax. (See Taxes.)
Conditional Sales. All contracts for the sale of personal property,
conditioned that the title thereto shall remain in the vendor after
delivery, shall be in writing, describing the property and all conditions
of such sale, and shall be acknowledged before some competent
authority and filed within a reasonable time in the town clerk’s office
in the town where the vendee resides; but the provisions of this act
shall not apply to household furniture, musical instruments, phono­
graphs, phonograph supplise, radios, bicycles or property exempt from
attachment and execution. If not made as required, they are held to
be absolute sales, except as between the vendor and vendee or their
personal representatives. A crime to conceal or convey personal
property held on such conditional sale.
Conditional Sales Concerning Building Equipment. Any
contract for the sale of a portable garage or other portable building,
or electric light fixtures, or plumbing fixtures, or elevators, or building
materials, or any equipment used in any building and so placed as to
apparently form a part of such building, conditioned that the title
thereto shall remain in the vendor after delivery, shall be in writing
describing the property and all the conditions of the sale, and shall
be acknowledged before some competent authority, and filed within
a reasonable time in the office of the town clerk in the town where
the real estate upon which such articles are placed is situated.
The vendor’s rights under such conditional sale contract shall not
be valid or enforcible against any bona fide purchaser or mortgagee


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of the real estate upon which such property shall be placed unless and
until such contract, together with a statement of the name of the
record owner of such real estate,shall be filed in the land records of
the town in which such real estate is situated as provided for in sec­
tion one hereof; and any bona fide interest in such real estate ac­
quired for value after the date of such contract and recorded in said
land records before such conditional sale contract shall be filed as
provided in section one hereof shall be prior to and be protected against
the claims of the vendor under such conditional sale contract.
Contracts. Ordinary provisions of Statute of Frauds apply.
Courts of probate having jurisdiction of the settlement of the estate
of any deceased person may, concurrently with the courts of equity,
authorize the executor or administrator to convey the title of the
deceased in any real estate to any person entitled to it. by virtue
or any contract of such deceased person, and the court of probate
in which the guardian of any minor has been appointed may, in
like manner, order such guardian to convey the interest of his ward
in any real estate which ought in equity to be conveyed to another
person. Contracts for the conveyance of lands or of any interest
therein, may tie recorded in the records of the town in which such
lands are; and such record shall be notice to all the world of the
equitable interest thus created. Gaming or wagering contracts
are void. Contract of incanable person pending appointment of
conservator or applicant. Void when select men have filed in town
clerk’s office certified copy of application in case of incapable person,
and contract of spendthrift void when select men have filed in town
clerk’s office certified notice of proposed appointment in case of
spendthrift. No person who receives a valuable consideration for
a contract, express or implied, made on Sunday, shall defend any
action upon such contract on the ground that it was so made until
he restores such consideration. The Uniform Sales Act passed in
1907 covers contracts to sell. (See Sales by Retail Dealers.)
Conveyances. All conveyances of land must be in writing,
signed, sealed, and acknowledged by the grantor, and attested by
two subscribing witnesses. The word “seal” or the letters (L. S.)
may be used for a seal. The acknowledgment is made by the grantor
before a judge of a court of record of this State or or the United
States, a clerk of the superior court, court of common pleas, or dis­
trict court, justice of the pease, commissioner of the school fund,
commissioner of the superior court, notary public, town clerk, or
assistant town clerk, if in this State, and if in any other State or
Territory of the United States, then before a commissioner appointed
by the governor of this State and residing therein, or any officer
authorized to take the acknowledgement of deeds in such State or
Territory, and if in a foreign country, before any consul of the United
States, or notary public, or justice of the peace in such foreign country.
Conveyances of real estate situated in this State, executed and
acknowledged in any other State or Territory, in conformity with the
laws of such State or Territory, are valid. If the land conveyed
belongs to the wife, the husband should join in the conveyance, if
married before April 20, 1877. If the land conveyed belongs to the
husband, the wife need not join in the conveyance. No separate
examination of a married woman is required in taking her acknowl­
edgment. Conveyances, Including leases for more than one year, to
be effectual against any other person than the grantor and liis heirs
must be recorded on the town records of the town in which the land
lies.
Corporations. Corporations may be formed under the general
laws by three or more persons for the transaction of any lawful busi­
ness except that of bank, savings bank, trust company, building
and loan association. Insurance company, surety or indemnity
company, steam railroad or street railway company, telegraph com­
pany, and gas and electric lighting, water company, or any company
which shall need to have the right of eminent domain.
A certificate of incorporation must be filed, signed, and sworn to
by at least three of the incorporators, giving the name and location
of the corporation, the nature of the business, the amount of authorized
capital stock, which must not be less than *2,000, number of shares
and par value of each, amount of capital stock with which it will
commence business, which shall not be less than *1,000. A certified
copy must be filed in the town clerk’s office.
The organization fee must be paid to the State, of one dollar, on
every thousand of its authorized capital stock up to five million, no
payment to be less than $50.
Stock may be paid for either in cash or property, but if in prop­
erty, a majority of the directors must make and sign upon a record
book a statement of the amount for which the property is received
and its actual value. In case of fraud in such valuation, directors
personally liable.
Certificate of organization must be signed and sworn to by a majority
of the directors and filed in the office of the secretary of state, setting
forth the amount of stock subscribed for. amount paid in cash and
in property, amount paid on each share of stock which is not paid
for in full, names and address of subscribers with number of shares
subscribed for, statement that the directors are officers have been
duly elected and by-laws adopted, names and addresses of directors,
the location of the principal office in the State with the name of the
agent in charge.
There must be at least three directors; vacancies In directors may
be filled by remaining directors.
No stock can be issued until it has been paid for in full. Receipts
for partial payments of stock may be issued by the treasurer. Cer­
tificates for fractional shares cannot be issued. The corporation
has a lien on capital stock owned by any person for debts due to
capital stock with the approval of stockholders owning three-fourths
of its entire outstanding capital stock, given at a meeting called for
that purpose.
Stockholders’ meetings must be held in this State.
Similar corporations may consolidate.
A corporation may be wound up by voluntary agreement of all
stockholders, signed and acknowledged, directors acting as trustees
to wind up the business.
Receiver may be appointed on application of stockholders owning one-tenth of the stock, in case of fraud, mismanagement, or if
assets are in danger of waste by attachment, or when corporation
has abandoned its business.
Annual statements must be filed in the office of the secretary of
state and a certified copy thereof in the town clerk’s office, either
on or before the 15th day of February or August, giving the names
and addresses of the officers and directors, amount of outstanding
stock not paid for in full with the amount due thereon, the location
of the principal office in this State with the name of the agent in charge
on whom process may be served. For failure to file annual statement
the corporation may forfeit $25 to the State.
Stock of no par value may be issued.
Costs. For case before justice of the peace, actual cash costs
not less than $5; before city court from $10 to $50, according to
amount involved; before court of common pleas or superior court,
not less than $25; before supreme court of errors, not less than $50.
Attorney’s fees not included. Attorney justified in asking deposit
of $15 for case in justice’s court and $50 in any other court before
bringing suit. (See Insurance Companies, Injunctions, etc.)
Courts. Terms and Jurisdiction. Superior court holds one term
per year in each county for the trial of civil causes, and has juris­
diction in all law and equity cases exceeding $500, and exceeding
$100 in those counties where there are no courts of common pleas.
Court of common pleas in Hartford, Fairfield, New London, and
New Haven counties has exclusive law and equity jurisdiction above
$100 and below $500, and concurrent jurisdiction with the superior
court above $500 and up to $2,000, and in Litchfield County has
exclusive jurisdiction up to $1,000. Not less than four terms each
year are held in each of the counties named, and there are city courts
in many of the cities, ana a district court at Waterbury, with limited
civil jurisdiction, also town courts in many of the towns. Probate
courts have jurisdiction of_the settlement of the estates of deceased.

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Insolvent, and l ncompetent persons, and are established in t large
number of probate districts—one for each district. Justices of the
peace have civil jurisdiction up to $100- In New Haven and Hart­
ford jurisdiction of justice oi the peace has been transferred to city
court, except in cases of summary process and bastardy.
i»ays of Grace. (See Notes and Bills of Exchange.)
Deeds. (.See Conveyances.)
Depositions. May be taken in a civil action by a judge or clerk
of any court, justice of the peace, notary public, or commissioner
of the superior court, when witness lives out of the State, or more
than twenty miles from place of trial, is over sixty years of age and
unable to attend the trial, is going to sea, or out of the State, or by
age and infirmity is unable to travel to court, or is confined i n jail.
Reasonable notice must be given to adverse party. Deponents must
be cautioned to speak the whole truth, ano carefully examined.
They must subscribe their depositions and make oath before the
authority taking the same, who shall attest the same and certify
that the adverse party or his agent was present (if so), or that he
was notified, and shall also certify the reason of taking such depo­
sition, seal it up, direct it to the court where it is to be used, and
deliever it, if desired, to the party at whose request it was taken.
Depositions may be taken in any other State or country by a notary
public, commissioner appointed by the governor of this State, or by
any magistrate having power to administer oaths, and they may
also be taken before a foreign minister, secretary of legation, consul,
or vice-consul appointed by the United States, if taken out of the
United States. A judge of the superior, common pleas, or district
court can issue a “commission” to take the deposition of a person
residing out of this State, to be used in a cause pending before such
court. The superior court, upon petition, may allow depositions to
be taken to perpetuate testimony concerning that which may there­
after be the subject of a suit. The person taking depositions may
compel attendance of witnesses by subpoena and capias.
Descent and Distribution of Property in Intestate Estates.
(As to the share of a surviving husband or wife, see the title Husband
and Wife.) After the share of the surviving husband or wife, the
residue of the real or personal estate is distributed in equal propor­
tions among the children and the legal representatives of any of
them who may be dead (children who have received estate by advance­
ment of the intestate in his lifetime being charged with the same in
the distribution). If there be no children or legal representatives
thereof, such residue shall be distributed to the parent or parents,
then equally to the brothers and sisters of the intestate of the whole
blood, and those who legally represent them; and if there be no
such kindred, then equally to the brothers and sisters of the half
blood and those who legally represent them; and if none, then equally
to the next of kin in equal degree, kindred of the whole blood to
take in preference to kindred of the half blood, in equal degree, and
no representatives to be admitted among collaterals after the repre­
sentatives of brothers and sisters.
Dower. (See Husband and Wife.)
Evidence. (See Courts, Insurance Company, Corporations.)
Executions. Issue on final judgment, and are returnable within
sixty days. No execution issued in an action founded on contract
merely can be levied on the body of the debtor except for breach
of promise of marriage, misconduct or neglect in office or profes­
sional employment, or breach of trust and cases where the original
attachment is against the body. Any judgment debtor, an execution
against whom shall have been returned unsatiflsed in whole or in
part, may be examined on oath touching his property and means of
aying such judgment, and may be committed for contempt. (See
ixemptions.)
Exemptions. Homestead, to the value of $1,000, if declaration
to hold it as such is recorded. Of the property of any one person,
his necessary apparel and bedding and household furniture necessary
for supporting life; any pension moneys received from the United
States while in the hands of the pensioner (which has been construed
to cover also such pension money when deposited in a savings bank);
Implements of the debtor’s trade, his library not exceeding $500
in value; sundry domestic animals not exceeding $150 in value;
so much of any debt which has accrued by reason of the personal
services of the debtor as shall not exceed $15, including wages due for
the personal services of any minor child (but there shall be no exemp­
tion of any debt accrued by reason of the personal services of the
defendant against the claim for the defendant’s personal board, or
for the rental of any house or tenement occupied by the defendant
as a place of residence when such rental shall not exceed $25); of
the property of any one person having wife or family, two tons of
coal, specified amounts of food-stuffs: the horse of any physician
or surgeon not exceeding $200 in value, and his saddle, bridle, har­
ness, and buggy, also his bicycle; one boat owned by one person,
with rigging, tackle, etc., not exceeding $200 in value, used for plant­
ing or taking oysters or clams or taking shad; one sewing machine
being property of any one person using it, or having a family; one
pew being property of any person having family who ordinarily
occupy it, and lots in any burying ground; and all benefits allowed
by any association of persons in this State toward the support of its
members, incapacitated by sickness or infirmity, shall be exempted
from foreign attachment or execution.
Foreign Attachments. Goods concealed in the hands of agents
or debts due the defendant are reached by foreign attachment which
takes the place of garnishment. No assignment of future earnings
will prevent their attachment when earned unless made to secure
a bona fide debt, due at the date of such assignment, the amount
of which shall be stated therein as nearly as possible, nor unless
the term for which they are assigned shall be definitely limited in
the assignment, nor unless recorded before such attachment in the
town clerk’s office in the town where the assignor resides, or if he
resides without the State, in the town where the employer resides, and
a copy left with the employer. (See also Exemptions.)
Foreign Corporations. Every foreign corporation, except insur­
ance and surety companies and building and loam associations and
investment companies (a corporation which has power to or does
sell or negotiate its own choses in action or sell, guarantee, or negotiate
the choses in action of other persons or corporations as investments),
shall, before transacting business in this State, file in the office of
the secretary of the State a certified copy of its charter or certificate
of incorporation, together with a statement, signed and sworn to
by its president, treasurer, and a majority of its directors, show­
ing the amount of its authorized capital stock and the amount thereof
which has been paid in, and, if any part of such payment has been
made otherwise than in cash, such statement shall set forth the
particulars thereof. Sec. 83.—Every foreign corporation with an
office or place of business in this State, except insurance companies,
surety companies, and buildiDg and loan associations, shall, before
doing business in this State, appoint in writing the secterary of the
State and nis successors in office to be its attorney, upon whom
all process in any action or proceeding against it may be served;
and in such writing such corporation shall agree that any process
against it which is served on such secretary shall be of the same
legal force and validity as if served on the corporation, and that
such appointment shall continue in force as long as any liability
remains outstanding against the corporation in this State. Such
written appointment shall be acknowledged before some officer
authorized to take acknowledgments of deeds and shall be filed in
the office of said secretary, and copies certified by him shall be suffi­
cient evidence of such appointment and agreement. Service upon
said attorney shall be sufficient service upon the principal, and may
be made by leaving a duly attested copy of the process with the
secretary of the State or at his office. Everv foreign corporation
doing business in this State shall, within thirty days after an increase
or reduction of its capital stock file in the office of the secretary
of the State a certificate substantially like that required of domestic
corporations organized under the like conditions. The president and

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treasurer of every foreign corporation doing business in this State
which is not required by law to make other annual returns in this
State, shall, annually, on or before the fifteenth day of February or
August, make, sign, and swear to and file in the office of the secretary
of the State a certificate similar to the certificate required of domes­
tic corporations (See Corporations), except that such certificate
need not give the name of the agent or person in charge of its principal
office upon whom process against the corporation may be served.
The secretary shall thereupon record such certificate in a book kept
by him for that purpose and shall furnish a certified copy to be re­
corded In the office or the town clerk of the town in this State iD
which such corporation has its principal office or place of business
and said town clerk shall record the same in a book kept by him
for that purpose. On the thirtieth day of March and September
the town clerks of the several towns shall report to the secretary
of the State the names of all corporations whose annual reports have
been filed for record during the preceding six months, in accordance
with the provisions of this section, and the secretary shall report
to the attorney-general every six months the names of all corporations
which have failed to comply witii the provisions of this section, and
the attorney-general shall collect all forfeitures due under this sec­
tion. Every corporation whose officers shall fail to comply with
the requirements of this section shall forfeit to the State $i00 for
each failure. The attorney-general may remit this fine.
Foreign Judgments. Not conclusive on question of jurisdiction.
A foreign judgment when used by way of defence, is as conclusive
to every intent, as those of our own courts. In an action on a judg­
ment rendered in another State, evidence on the part of the defend­
ant that he had no legal notice of the suit and did not appear, is
admissible, although the record of the judgment stated that the
defendant axopeared by his attorney. Where the foreign court
has a peculiar and exclusive jurisdiction, its decree is binding upon
the judgment of any other court, into which the same subject comes
immediately into controversy. A judgment rendered by a court
in one State has no efficacy when it is sought to be enforced in Con­
necticut, unless such court had jurisdiction of the person against
whom it is rendered, acquired either by service upon him of the
rocess in the suit, or actual notice to him of the suit, or at least by
is having appeared in it, and thus submitting to the jurisdiction
of the court. Jurisdiction presumed to have been properly exercised,
if court once had jurisdiction. Notice presumed of resumption of
jurisdiction if required by practice of foreign court. A judgment
recovered in a sister State is a bar to the further prosecution of an
action pending at the time in this State between the same parties
on the same cause of action. It makes no difference that the judg­
ment of the sister State has been appealed from, and that the appeal
is still pending, where by the laws of that State, such appeal operates
only as a proceeding in error, and does not supersede the judgment.
Only such pleas are pleadable to a foreign judgment, as are pleadable
when rendered.
Fraud. All fraudulent conveyances, suits, judgments, executions,
or contracts, made or contrived with intent to avoid any debt or
duty belonging to others, shall, notwithstanding any pretended con­
sideration therefor, be void against those persons only, their heirs,
executors, administrators, or assigns, to whom such debt or duty
belongs.
Garnishment. (See Foreign Attachments.)
Guaranty Companies. (See Surety Companies.)
Holidays. In each year the first day of January (known as New
Year’s Day), the 12th day of February (known as Lincoln Day), the
22d day of February (known as Washington’s Birthday), the 30th day
of May (known as Memorial Day or Decoration Day), the 4th day of
July (known as Independence Day), the first Monday in September
(known as Labor Day), the 12th day of October (known as Columbus
Day), the 11th day of November (known as Armistice Day), and the
25th day of December (known as Christmas), or, whenever any of
such days shall occur upon Sunday, the Monday next following such
day, and any day appointed or recommended by the governor of this
state or the president of the United States as a day of thanksgiving,
fasting or religious observance, shall each be a legal holiday.
Husband and Wife. In all marriages contracted arter April 19,
1877, neither husband nor wife acquires by force of the marriage
any right to or interest in any property held by the other before
the marriage or acquired after the marriage, except as to the share
of the survivor in the property of the other as hereinafter stated.
Wife married subsequent to April 19, 1877, may hold and convey
real estate separate from her husband. Separate earnings of the
wife are her sole property. On the death of the husband or wife
the survivor shall be entitled to the use for life of one-third in value
of all the property, real or personal, owned by the other at the time
of his or her decease, after the payment of all debts and charges
allowed against the estate. The right to such third can not be defeated
by will. Where there is no will the survivor shall take such third
absolutely, and if there are no children, shall take all of the estate
of the decedent absolutely to the extent of $2,000, and one-half
absolutely of the remainder of said estate, and if there are no children
of the decedent or representatives of children, and no parent, the
survivor shall take all of the estate absolutely.
Injunctions. Any judge of any court of equitable jurisdiction
may, on motion, grant and enforce writs of injunction, which shall
be of force until the sitting of such court and its further order therein,
unless sooner dissolved. Superior court judge may dissolve tem­
porary injunction granted by other court. All facts stated in appli­
cation for injunction must be verified by oath. Plaintiff must give
bond with satisfactory surety, to answer all damages in case of failure
to prosecute to effect, before temporary injunction, can be issued,
unless the court shall be of opinion that temporary injunction ought
to issue without bond. Injunctions may be granted forthwith, if
the circumstances of the case demand it; or the court or judge may
cause immediate notice of the application to be given to the adverse
party, that he may show cause why such injunction should not be
granted; and it shall be sufficient, on such application for a tempo­
rary injunction, to present to the court or judge the original com­
plaint containing the demand for an injunction, duly verified, with­
out further complaint, application or motion in writing. Whenever
a temporary injunction is granted in any cause before the return
day thereof, it may be dissolved or modified by the court or judge
who issued it, by any judge of the court to which the action is return­
able, or by any judge of the superior court; provided a written
motion for such dissolution shall be prepared before the return day.
Any person who may be directly or indirectly interested in, or affected
by the granting of any temporary or permanent injunction, may
appear and be heard with regard to granting or dissolving the same.
When in any action a temporary injunction has been granted, and
upon final hearing judgment shall be rendered adverse to the contin­
uance of such injunction, either party may apply to the court rendering
such judgment, representing that he is desirous of taking the case
to the supreme court of errors, and praying that said temporary
Injunction may be continued until the final decision therein; and
unless said court shall be of opinion that great irreparable injury
will be done by the further continuance of said injunction, or that
said application is made for delay and not in good faith, it shall
be the duty of the court to continue said injunction until a final
decision be rendered in the supreme court of errors. When in any
action judgment shall be rendered for a permanent injunction order­
ing; either party to perform any act, upon similar application to
that above mentioned, a stay of operation of such injunction, pending
final decision of supreme court of errors, may be granted for similar
reasons. The court in which such case is pending may. however,
if in its opinion the cause of justice shall so require, dissolve said
temporary injunction or remove the stay of said permanent injunc­
tion while said cause is so pending in the supreme court of errors.
Insolvency. Suspended, owing to United States Bankruptcy Act.
Interest. Legal rate, in absence of express agreement, 6 per cent;
no more than 6 per cent can be recovered in either case after debt

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BANKING AND COMMERCIAL LAWS—CONNECTICUT
becomes payable. Express agreements in which 12 per cent is
charged are valid and any person making a greater charge i s liable to
fine and imprisonment. There is no limit to the interest charge
which can be made by any National Bank or any Bank or Trust
Company, incorporated under the laws of this State nor is there any
limit to the interest charge on a bona fide mortgage of real property
exceeding the sum of five hundred dollars. Special law for pawn­
brokers. Loan companies licensed by Bank Commissioner may
charge not to exceed 42 per cent per annum on unpaid balances on all
loans up to $300.
Judgments carry 6 per cent interest, but are not liens, and execu­
tion may be had at any time during the life of both parties. Judg­
ment by default may be obtained if the defendant makes no appearance
on or before the second day of the session. Certificate of judgment
may be recorded by judgment creditor or his assignee in town clerk’s
office, and such judgment from the time of filing such certificate shall
constitute a lien upon the real estate described in such certificate, and
if such lien be placed upon real estate attached in the suit upon which
such judgment was predicated and within four months after such
judgment was rendered, it shall hold from the date of such attachment.
Such lien may be foreclosed or redeemed in the same manner as
mortgages upon the same estate, and may also be foreclosed by decree
of sale.
Jurisdiction. (See Courts.)
Liens. (Mechanics’ Liens.) Any person having a claim for
materials furnished or services rendered, exceeding the sum of $10.00,
in the construction, erection, and repair of any building, or in the
removal of a building, may have a lien on such building, and the
land on which the same may stand, and said premises may be fore­
closed, in the same manner as if held by mortgage. No one other
than the original contractor, or a sub-contractor under a written
contract, assented to in writing by owner, shall be entitled to claim
a lien unless, after starting and not later than 60 days after ceasing
to furnish labor or materials, he gives written notice to the owner
of his intention to claim and such lien. A certificate, subscribed and
sworn to, describing the premises, the amount claimed as a lien
thereon, and the date of the commencement of the claim, must be
lodged with the town clerk of the town in which such premises are
situated, within 60 days after the person performing such services or
furnishing such materials has ceased so to do. Mechanics’ liens may
be dissolved on substitution of bond. Such lien continues only 2 years
after it is perfected unless foreclosure is commenced. Vessels can be
subjected to a lien for moneys due for work or materials furnished in
their construction, by recording claim in town clerk’s office within
10 days after job is done. Persons keeping animals under contract
with owner have lien for their contract charge. Mechanics’ liens, on
claims for materials furnished or services rendered, under any contract
with or approved by a railroad corporation owning or managing the
railroad, are enforceable. The lien, however must be lodged with the
Secretary of State. By Public Acts 1925, there is no priority among
Mechanics’ lienors, unless some other incumbrance intervenes, in
which case prior liens take precedence of incumbrance on pro rata
basis as between themselves. Liens after the incumbrance yield to
the incumbrance and as between themselves none has priority. The
Mechanics’ lien attach subject to apportionment only to the amount
which owner agreed to pay under the contract.
Limitations to Suits. Open accounts and contracts not under
seal, six years; contracts under seal and promissory notes not negoti­
able, seventeen years. Usual exceptions in favor of married women
minors, lunatics, and those imprisoned. The time during which
the party against whom there may be such cause of action shall be
without the State shall be excluded from the computation. Title
to real estate by adverse possession may be gained in fifteen years
There is no limitation against judgments but the common law pre­
sumption of payment after twenty years exists.
Limited Partnerships. Such partnerships (except banking and
Insurance) shall consist of one or more partners, jointly and severally
responsible, as in ordinary cases, to be called general partners; and
one or more partners, furnishing capital to the partnership stock,
whose liability shall not extend beyond the capital so furnished by
them, to be called special partners. Such partnerships shall be
conducted under a company name, in which the name of one or more
of the general partners shall appear; and if any special partner’s
name shall be used in said company name, he shall be held liable
as a general partner. No such partnership shall be deemed to be
formed until the persons forming it shall make, and severally sign
and acknowledge before any officer authorized to take the acknowl­
edgment of deeds, a certificate stating the company name and names
and residences of all the partners designating which are general
and which are special partners, and which of the general partners
are authorized to transact the partnership business and sign the
firm name, and also the amount of capital furnished by each special
partner and the time at which the partnership is to commence and
terminate; nor until such certificate, and also a certificate of the
amount actually paid in by each special partner, signed and sworn
to by such of. the general partners as are authorized to transact the
partnership business, shall be tiled and recorded in the office of the
town clerk of the town where the principal business of the part­
nership is to be carried on; and a copy of such certificate shall be
prima facie evidence of the matters therein contained; and the part­
nership shall be responsible only for the acts of the general partners
designated as specially authorized as aforesaid; and copies of said
certificates shall, in like manner, be filed in every town where such
partnership may have a place of business. Terms of such partnership
must be published for six weeks in newspaper published in county
where business is to be carried on. Any such partnership may be
renewed by filing at any time before its expiration, with the town
clerk, a sworn certificate of the general partners, setting forth the
time for which said renewal is made, whether the special capital
has been reduced or impaired since the last certificate filed by said
partnership, and if so, to what amount, and by publishing not less
than once a week for two weeks in a newspaper published in county,
the time at which the said renewed partnership is to commence and
terminate, signed by the partners thereto, and specifying which are
general and which are special partners. If the requirements con­
cerning original certificate are not complied with, or false certificate
be made, all special partners shall be liable as general partners. All
advancements to the capital stock by the special partners shall
be in cash and no part of the capital furnished by them shall be with­
drawn, either in the shape of dividends, profits or otherwise, at any
time while such partnership continues; except that any special part­
ner may lawfully be paid from the assets of such partnership, each
year during the continuance thereof, a sum not exceeding 10 per
centum upon the cash contributed by him to the capital stock; pro­
vided that such payment shall only be made out of the net profits
actually earned by such partnerships during the year for which such
payment is made. No special partner shall under any circum­
stances be considered a creditor, or allowed to claim as a creditor.
No special partner shall be joined as a party in any action by or
against such partnership unless liable as a sreneral partner
Married Women. (See Husband and Wife.)
Mortgages of real estate are executed, acknowledged, and recorded
In the same manner as deeds, and are foreclosed by strict foreclosure
or by a decree of sale. Chattel mortgages to be good against third
parties, where the mortgagor retains possession, must be executed,
acknowledged, and recorded as mortgages of land, and can only be
made of the following described personal property—with or without
the real estate in which the same is situated or used—namely: ma­
chinery, engines, or implements situated and used in any manu­
facturing or mechanical establishment; machinery, engines, imple­
ments, cases, types, cuts, or plates situated and used in any print­
ing. publishing, or engraving establishment; household furniture in a
dwelling house used by the owner therein in housekeeping; hay and
tobacco in the leaf in any building. Piano, organ, melodeon, and
any musical instrument used by an orchestra or band. Brick burned


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2223

or unburned, in any kiln or brickyard. Hotel keepers may mort­
gage the furniture, fixtures, and other personal chattels contained
and used in the hotels occupied by them or employed in connection
therewith. Chattel mortgages are foreclosed by sale under order
of court. In all cnattei mortgages there must be a particular descrip­
tion of each article of personal property. Judgment for deficiency
after sale, permitted.
Notaries Public hold office for five years from first day of Feb­
ruary of year in which commissioned, unless commission is sooner
revoked by governor. May exercise their function at any place in
State. May take acknowledgments, administer oath, take deposition,
subpoena witnesses to give deposition. The authority and official
acts of any notary may be certified to by the clerk of the superior
court of the county in which he resides, except in New London County,
where the certification is made by the clerk of the court of common
pleas.
Notes and Bills of Exchange. Negotiable Instruments Act
now in force.
Powers of Attorney. Where a deed is executed by a power of
attorney it is recorded with the deed. Powers of attorney to convey
real estate must be executed and acknowledged in the manner required
for the execution and acknowledgment of the conveyance itself.
Private Banks. (See end of State Banks and Trust Companies.)
Probate Law. (See Administration of Estates, Appeals, Assign­
ments and Insolvency, Collateral Inheritance Tax, Courts, Descent
and Distribution of Property, Husband and Wife, and Wills.)
Protest. (See Notes and Bills of Exchange.)
Records. Warranty, mortgage, quitclaim deeds must be recorded
in office of town clerk in town where land lies, also assignments of
mortgage, conditional bills of sale, chattel mortgages, assignments
of future earnings. Certificate of trade-mark to be filed for record
In office of secretary of State. Certificate of unsatisfied judgment
to be filed for record In town clerk’s office. (See Conveyances, Insur­
ance Companies, Limited Partnerships. Judgments, etc.)
Redemption. (See Mortgages.)
Replevy. Replevin lies for goods wrongfully detained, in which
the plaintiff has a general or special property with right to immediate
possession. A writ of replevin can not issue except upon an affidavit
in which the affiant states the true value of the goods to be replevied,
and that he believes that the plaintiff is entitled to the immediate
possession of the same, nor until the plaintiff furnishes a bond with
sufficient surety in a sum double the value of the property. This
bond or recognizance must be signed by the obligors in presence
of at least one witness other than the authority taking the recog­
nizance.
Sale of Retail Business. Any person (including a person having
an interest in a barber shop, dental parlor, restaurant, shoe shining,
or hat cleaning business), who makes it his business to buy commod­
ities and sell the same in small quantities for the purpose of making
a profit and desiring to sell the whole or a large part of his stock in
trade, must file a notice of such intention in the town clerk’s office
not less than fourteen, nor more than thirty days prior to such sale.
Sales. Uniform Sales Act passed in 1907.
Service. Service of a writ of summons in case of a resident is
made by reading it and the complaint accompanying it in the defend­
ant's hearing, or by leaving an attested copy in the defendant's hands
or at his usual place of abode; in case of a non-resident, the several
courts, other than courts of probate, and the judges, clerks, and
assistant clerks thereof, or any county commissioner, in term time
or in vacation, may, except where it is otherwise specially provided
by law, make such orders as may be deemed reasonable, in regard
to the notice which shall be given of the institution or pendency
of all complaints, writs of error and appeal from probate, which
may be brought to or pending in any court, when the adverse party,
or any person so interested therein, that they ought to be made
parties thereto, reside out of the State, or when the names or resi­
dences of any such persons in interest are unknown to the party
instituting the proceeding; and such notice having been given and
proved shall be deemed sufficient service and noticestate Banks and Trust Companies, a reserve fund of 12 per
cent of its demand deposits and 5 per cent of its time deposits must
be held and maintained in the banking office, of which 4-12 must be
gold and silver coin, demand obligations of the United States or
national bank currency, or federal reserve notes and federal reserve
bank notes. The remainder of said reserve fund may consist of
balances subject to demand draft with reserve agents, which are
members of the clearing house associations of New York, Boston,
Philadelphia, Chicago, or Albany, or Buffalo, or a federal reserve
bank, or national banks, state banks, or trust companies, located in
Bridgeport. New Haven, or Hartford, or Waterbury, and of bonds
which are legal investments for savings banks which bonds shall at
no time exceed at par value one sixth of the total reserve fund. No
new loans or discounts may be made when the reserve is below 12
per cent. Bank commissioners may apply for appointment of a
receiver when the reserve falls below 12 per cent after thirty days’
notice. “Demand deposits” shall mean all deposits payable within
thirty days and “time deposits” shall mean all deposits payable after
thirty days.
No one person, corporation or firm may borrow more than 10
per cent of the amount of the capital stock paid in and surplus undi­
vided profits combined, of any state bank or trust company. This
does not apply to collateral loans. Penalty of $3,000 for violation
of this law. Paper of executive officers or clerks may not be dis­
counted. Loans to parties outside the State can only be made when
the loans and discounts in the aggregate amount in this state, to
one-half of the capital stock.
Books of a bank may be examined by stockholders under certain
conditions.
Three-fourths of the directors must be residents of the State. No
director may be obligated to a bank or trust company in an amount
exceeding 5 per cent of the capital actually paid in and surplus undi­
vided profits combined. This does not apply to loans secured by
collateral.
Cashier’s bond of $10,000.
At least three reports, verified by oath, must be made each year
to the bank commissioners, exhibiting in detail the resources and
liabilities of the bank or trust company ten days after receipt of
request therefor from the bank commissioners, which shall be published
in a newspaper in the county where the bank or the trust company
is located. Penalty of $10 for each day of delay in transmitting
report.
Words "bank,” "trust,” or "savings” may only be used by banks,
trust companies and building and loan associations incorporated by
the United States or by the general assembly, but this shall not apply
to firms or individuals doing business as private bankers or brokers
under their own names, who deposit with the State treasurer a bond
of $10,000, or acceptable securities of that amount for the protection
of customers from styling themselves bankers in the conduct of their
business. Banks and trust companies maintaining savings depart­
ments must invest deposits according to the laws of the State con­
cerning investments of savings banks, and must make sworn state­
ments to the bank commissioners on October 1st in each year and
oftener if required by the commissioners, of the amount of such
deposits and the securities in which they are invested. A State Bank
or Trust Company may be incorporated under General Laws as pro­
vided in Chapter 194, Public Acts of 1913.
Suits. (See Actions.)
Surety Companies. Any corporation with a paid-up capital of
not less than $250,000, incorporated and organized for the purpose of
transacting business as surety on obligations for persons or corpora­
tions, on complying with certain requirements of law may be accepted
as surety upon the bond of any person or corporation required by
the laws of this State to execute a bond. Every foreign corporation
before transacting any business in this State amust deposit with the

BANKING AND COMMERCIAL LAWS—DELAWARE

2224

Insurance commissioner a copy of its cbarter or articles of association,
ana sworn statement ol the condition or its business. The insurance
commissioner may thereafter issue to such company a license to do
business in this State. Such company must appoint the insurance
commissioner its agent on whom process may he served. Such com­
pany must llle annually on or before March 1st, with the insurance
commissioner a statement of the capital of such company and its
investments and risks. An annual license is granted if annual state­
ment be satisfactory. Local agents must procure certificates of
authority to act as agent from the insurance commissioner. The
insurance commissioner may also at any time examine the affairs
of any surety company doing business in the State. A reserve fund
must be maintained equal to 50 per cent of the gross amount of
iremiums received on business in force. No such company can
ncur on behalf of any one person or corporation a liability for an
amount larger than one-tenth of its paid-up capital stock and sur­
plus without giving collateral security.
Taxes. Land may be sold for delinquent taxes after due adver­
tising. only so much being sold as is necessary to pay taxes and costs.
Owner has one year in which to redeem, by paying the purchase
money, with 12 per cent interest. Bonds, notes, or other choses
in action, except bonds and notes secured by mortgage on real estate
situated in this State, may be exempted from all local taxation by
paying to the State a tax of 2 per cent on the face amount thereof
for five years, or at the option of the holder thereof for a greater or
less number of years at a proportionate rate. Inheritance taxes are
levied on all property within Connecticut possessed by any resident
of Connecticut at the time of his decease, and all tangible property
within Connecticut possessed by a non-resident at the time of his
death which passed by gift, to take effect at death or by will to any
person, corporation, voluntary association or society, with exemp­
tions in favor of charities and on certain particular kinds of property.
Rates of the taxes are 1 per cent of the value of all property in excess
of $10,000 passing to any parent, grandparent, husband, wife, lineal
descendant, adopted child, adoptive parent ana lineal descendant of
any adopted child, up to $25,000 with graded increases; 2 per cent
on property passing to the husband or wife of any child of such decedant to any stepchild, brother or sister of the full or half blood and
to any descendant of such brother or sister in excess of $3,000 up
to and including $25,000, with graded increases; 5 per cent of the
value of all property in excess of $500 passing to any persons other
than those above mentioned up to and including $25,000 with graded
increases. Only one exemption is allowed for each class.
Transfer of Corporation Stocks. (See Corporations.)
Trust Companies. (See State Banks and Trust Companies.)
Warehouse Receipts. Uniform Warehouse Receipts Act passed
in 1907.
Wills. All persons of the age of eighteen years, and of sound
mind, may dispose of their estate (real or personal) by will. No
devise, except for public and charitable uses, or for the case of ceme­
teries or graves, shall be made to any persons but such as are at the
time of the death of the testator in being, or to their immediate issue
or descendants. Wills must be in writing, subscribed by the testator,
and attested by three witnesses, each of them subscribing in his pres­
ence, but they will be effectual here if executed according to the laws
of the State or country where executed. If after the making of a will,
the testator shall marry or a child shall be born to the testator or a
minor child shall be legally adopted by him, and no provision is made
in such will for such contingency, such marriage, birth or adoption
of a minor shild shall operate as a revocation of such will. No will
or codicil shall be revoked in any other manner except by burning,
canceling, tearing or obliterating it by the testator or by some person
in his presence by his direction or by a later will or codicil. A devise
of bequest to a subscribing witness or to the husband or wife of a sub­
scribing witness, is void unless the will is otherwise legally attested,
or unless the devisee or legatee be an heir to the testator. Wilis are
proved and estates settled in the probate court in the district where
the deceased resided. Wills of nonresidents owning property in this
State may be proved by filing exemplified copies thereof in district
where property is located. Such course should always be taken in
order to pass good title to real estate.
Workmen’s Compensation Act. Passed in 1913-

f

SYNOPSIS OF

THE LAWS OF DELAWARE
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Sylvester D Townsend, Jr., Attorney at Law,
Ford Bldg., Wilmington. (See Card in Attorneys’ List.)

210

Acknowledgment. (See Conveyances.)
Actions. Suit may be commenced by capias, summons, and
(where defendant is non-resident) by attachment of property. Sum­
mons in justice’s court may be issued returnable in five days from
date of service, or may be made returnable forthwith, upon plain­
tiff filing an affidavit that there is danger of his losing the benefit
of his process by delay. In superior court the summons must be
served personally on debtor before court sits, or by leaving a copy
of the summons at his usual place of abode, in presence of some
white adult person, six days before court sits. Service by publi­
cation allowed in the court of chancery only. In Common Plea
Court summons must be served personally, and is returnable in ten
days.
Affidavits may be administered in the State by the chancellor,
any judge, justice of the peace, or notary public, and out of the
State by any official duly authorized to take acknowledgments of
deeds, etc.; but before a notary public is preferable. The affiant
must sign the affidavit.
Assignments and Insolvency. There is a domestic insolvent
law providing for a full surrender and equal distribution of all property,
but it is very seldom used, and there is no provision in the act for
the discharge of the debtor upon his making an assignment. The
assignee must file a schedule of property assigned within thirty days,
and two appraisers are then appointed by the chancellor. Assign­
ments must be for the benefit of all creditors alike.
Attachments. Domestic attachment may be issued against an
Inhabitant of this State, after a return to a summons or capias issued
ten days before the return thereof, of non est inventus, and proof
of cause of action; or upon the filing of an affidavit "that the defend­
ant is justly indebted to the plaintiff in a sum exceeding $50, and
has absconded from the place of his usual abode, or gone out of the
State with intent to defraud his creditors, or to elude process, as
is believed." The writ directs the attachment of property and sum­
mons of garnishees. Attachment may be dissolved on entering
security to satisfy any judgment to the extent of the property attached
that may be recovered against the defendant. On return of attach­
ment the court appoints three persons as auditors of the claims of
creditors; the creditor attaching is allowed a double share for his
diligence, not to exceed full amount of debt. Any creditor not duly
presenting his claim receives no share in the distribution. Plaintiff
is not required to give security. Wages are exempt from attach­


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ment in New Castle County except for board or lodging. Foreign
attachment may be issued against any person not an inhabitant
of the State after a return of non est as in domestic attachment,
or upon affidavit being made “that the defendant resides out of the
State, and is justly indebted to the plaintiff in a sum exceeding $50.”
Foreign attachment may also issue against a foreign corporation, but
in this case the amount of the real debt must be particularly speci­
fied in the affidavit, and must exceed $50. Unlike domestic attach­
ments the plaintiff in foreign attachments has the benefit ef his own
discovery and does not share with other creditors. It is similar to
domestic attachment in all respects except as to appointment of
auditors and distribution among creditors. The court or any judge
upon petition may investigate any allegation in affidavit, except as
to the amount of the debt, and dissolve the attachment if sufficient
ground be not shown. Foreign attachment is otherwise dissolved by
entering special bail. By recent amendment in cases of foreign
attachment it is no longer necessary to enter security to discharge
the attachment, before an appearance can be entered. An appearance
may be entered without security to discharge the attachment, and
the goods attached remain as security pro tanto.
Banks. There is no general banking act and but one State bank,
which was chartered by the legislature in 1807. Banking companies
can not be formed at present, except by special act of the Legislature.
The holders of stock are taxed at the rate of one-fourth of one per
centum on the cash value of each share of capital stock. There
have been recently several trust companies formed in the State,
either by special act before the 1897 constitution, and by general
corporation act since, which nave Deen granted Danking powers to
special statute. Banks and trust companies are now subject by
examination and inspection by insurance commissioner. By recent
amendment, National Bank may act as Trustee, Executor, Adminis­
trator, or Registrar of stocks and bonds. Bank by recent amend­
ment, prevented from loaning more than ten per cent of capital stock
and surplus to any one person.
Bills and Notes. Acceptance should be in writing on the bill.
All checks, notes, drafts, or bills, foreign or inland, payable without
time or at sight, are due on presentment without grace.
Chattel Mortgages must be accompanied with an affidavit that
the mortgage is made for the bona fide purpose of securing a debt,
and not to defraud creditors, and if recorded within ten days from
the acknowledgment thereof, is a valid lien for five years on personal
property, the possession of which may remain in the mortgagor.
Claims Against Estates of Deceased Persons are paid in the
following order; 1. Funeral expenses. 2. Bills for medicine, med­
ical attendance, nursing, and necessaries for last sickness of the
deceased. 3. No more than one year’s wages of servants in house
and laborer on a farm. 4. Rent for not more than one year, either
growing due or in arrears. 5. Judgments and decrees in equity
against deceased. 6. Recognizances, mortgages, and other obliga­
tions of record. 7. Obligations and ' ontracts 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
more of the creditors. 3. To any suitable person, resident or non­
resident. Bond must be given for an amount double the value of
the estate. Notice must be given of claims against the deceased
within six months from granting of letters (except claims of record),
or executor or administrator is protected in paying debts of a lower
grade! One year is allowed for settling the estate, and until the
expiration of that time, he need not make distribution, nor is he
chargeable with interest on the assets in hand. He may be removed
upon sufficient cause. Letters granted in other states and produced
under the seal of the officer or court granting the same, is competent
authority for him to act in this State.
Contracts are joint and several, unless otherwise expressed.
Conveyances of Real Estate must be under seal (a scroll is
sufficient), and should be executed before one witness at least. Deed
may be acknowledged out of the State before any consul-general,
consul, or commercial agent of the United States, duly appointed
in any foreign country at the places of their respective official residence;
before the judge of any district or circuit court of the United States,
or the chancellor or any judge of a court of record of any state, terri­
tory, or country, or the mayor or chief officer of any city or borough,
and certified under the hand of such chancellor, judge, mayor, or
officer, and the seal of his office, court, city, or borough, by certificate
endorsed upon or annexed to the deed; or such acknowledgment
or proof may be taken in any such court and certified under the hand
of the clerk or other officer of said court, and the seal of said court
in like manner. In case of such certificate by a judge, the seal of
his court may be affixed to his certificate, or to a certificate of at­
testation of the clerk or keeper of the seal. Such acknowledgment
may also be taken by any commissioner of deeds for this State, or
by a notary public of any state or territory. Wife must join in deed
to bar dower, and husband to bar curtesy. A deed by a corpora­
tion may be executed and acknowledged by the president or other
presiding officer duly authorized by resolution of the directors, trustees,
or other managers, or by the legally constituted attorney of such cor­
poration under its corporate seal. Deeds must be recorded within
three months after sealing and delivery, to avail against creditors,
mortgagee, or bona fide purchasers, without notice.
Corporations. General Corporation Act for all purposes other
than banking. Each stockholder is individually liable for the amount
of capital stock not paid in in proportion to the amount subscribed
by him. Corporations of other states may be sued in this State,
and the property of the same found here may be seized by attach­
ment. All foreign corporations must file with the secretary of state,
statement of assets and liabilities, and the name of its authorized
agent upon whom process may be served; must pay a State tax of
$10, and fees of secretary of state (this State tax is paid but once)
must file with the prothonotary of each county the name of authorized
agent upon whom process may be served.
Costs. Non-resident plaintiffs may be required to give security
for costs.
Courts. Terms and Jurisdiction. The different courts of the
State are as follows: Supreme court; regular term at Dover third
Tuesday in June and January. Court of chancery and orphans
court; regular terms, New Castle County, at Wilmington, on the
fourth Monday in March and second Monday in September; Kent
County, at Dover, third Monday in March and third Monday in
September; Sussex County, at Georgetown, second Monday in March
and first Monday in September. Superior court, and court of general
sessions are held in New Castle County at Wilmington the first Mon­
day in January, March, May, and November and third Monday in
September, in Kent County at Dover, the first Monday in July and
the third Monday in February, April, and October, and in Sussex
County the first Monday in February, April, and October and last
Monday in June in Georgetown. Oyer and terminer meets on call
of judges. Jurisdiction—The superior court has jurisdiction in all
civil cases, but if suit be brought for less than $50. costs will not
be recovered. Justice’s jurisdiction, $200. New Court known as
Court of Common Pleas was recently created for New Castle County.
Presided over by one of the Judges of Superior Court. Open con­
tinuously except July and August. Jurisdiction of all cases ex con­
tractu up to $1,000.
Descent and distribution of intestate estates. First: In equal
shares to children, and the lawful issue of deceased children, by right
of representation. Second: If no issue, to father and mother as
tenants by entirety. Exceptions in case of divorce. Third: If no
issue, or father or mother, in equal shares to brothers and sisters and
the lawful issue of deceased brothers and sisters; brothers and sisters
of whole blood preferred to half blood. Fourth: If no issue, father
or mother, brothers or sisters or lawful issue thereof, then to next of

BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA
kin In equal degree, and lawful issue; provided collateral kindred
claiming through a near common ancestor shall be preferred to those
claiming through a more remote common ancestor. Fifth: Descent
of intestate real estate subject to rights of surviving husband or wife;
that is, if intestate leave husband and issue, husband shall have onehalf part of real estate for life, and if intestate leave husband and no
issue husband shall have all real estate for! ife. Sixth: If intestate
leave a widow and issue, widow shall have one-half part of real estate
for life and if no issue widow shall have all real estate for life. Seventh:
If intestate leave husband or widow and there be no kin or heir then
to husband or widow in fee simple.
Depositions. In any suit pending, the prothonotary, on appli­
cation, enters a rule commission on the part of the applicant to any
commissioner of the State or other person. The commission issues
on ten days’ notice of interrogatories filed. Exceptions to interroga­
tories must be filed before the commission issues, and are heard
before a judge at chambers. JSxceptions to the execution must be
filed within two days after publication. If the commissioner employ
a clerk, add "The clerk by me employed in taking, writing, tran­
scribing, and engrossing the said depositions, having first duly taken
the oath assigned to the said commission according to the tenor
thereof.”
Executions are a lien upon personalty from the time the sheriff
received the writ, if actual levy be made within sixty days there­
after. Priority of lien remains in force five years. Execution may
be issuea within five years after date of judgment. An execution
from a justice is a lien from time writ is received, if levy be made
within thirty days ana priority of writ remains for two years. Execu­
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 Oastle County wages for a month
of employes oi corporations are preferrea to the execution. Stay
of six months is granted in courts of record upon judgments recorded
for want of affidavit of defence, provided security be given within
twenty days after judgment. In justice’s courts defendant may have
six months’ stay, upon pleading his freehold; nine months’ stay upon
giving security.
Exemptions. No homestead law. Family pictures, bible, and
library; lot in burial ground and pew in church; all wearing apparel;
sewing machines in private families; tools of trade not to exceed $50
in Kent, or $75 in New Castle County; and to the head of a family
in New Castle County $200 of personal property and in Kent County
$150, consisting of household goods only. No additional exemption
In Sussex. The provisions of the exemption law extend and apply
to a person dying and leaving a widow, giving and securing to such
widow the same benefit of exemption that her husband would have
had if living. Wages are exempt from execution attachment in New
Castle County except for board or lodging. Pianos and organs leased
or sold under contract exempt from execution process or distress
for rent, provided the lessor or vendor notifies the landlord in writing
of the claim thereof.
The defectively drawn amendment of 1925 to
"Distress for Kent Act" makes law uncertain as to some exemptions.
Frauds. Sale of goods void as to third parties, unless for valu­
able consideration and the possession thereof be actually delivered
to the vendee. A promise to pay the debt, default, or miscarriage
of another to the extent of $5 is binding if proved by the oath of the
promisee; for an amount between $5 and $25 must be proved by
one credible witness or some memorandum in writing signed by the
person to be charged therewith; for an amount exceeding $25 there
must be some memorandum or promise in writing signed by the
party to be charged therewith. Sale of Goods in Bulk Law recently
amended imposing penalty upon seller and purchaser where require­
ments as to notice on creditors is not carried out.
Garnishment. All persons except public officers, attorneys, etc.,
are subject to summons as garnishees. Wages are not subject to
garnishment in New Castle County except for board or lodging.
Holidays, Legal. January 1st, February 12th, February 22d,
Good Friday, May 30th, July 4th, first Monday in September, Octo­
ber 12—Columbus Day; Armistice Day; Day of the general election as
it biennially occurs. Thanksgiving Day and Christmas, and Saturday
afternoon in New Castle County. If legal holiday falls on Sunday the
next day is observed. Negotiable paper falling due on legal holiday
is due and payable on the next preceding secular day; if falling due oh
Saturday half-holiday, if not presented for payment before boon, is
not due until the next succeeding secular day.
Homestead. There is no homestead law in Delaware.
Interest. Legal rate is 6 per cent. Any person who takes more
for the use or the loan of money shall forfeit and pay to any one suing
for the same a sum equal to the money loaned, one-half for the use
of the State, and the other for the party suing.
Judgments of courts of record are liens upon all real estate of the
debtor in the county where judgment is entered from their date, for
a period of ten years and may be revived and kept alive and a lien
by sei. FA. or agreement before expiration of ten years from date of
entry. This lien may be extended into either or both the other
counties. Judgments can only be obtained in this State upon judg­
ments in other states by suit upon a certified copy of the record of
said judgment authenticated under the Act of Congress passed
May 26, 1790. Transcripts of judgments recovered before justices
of the peace may be entered in the superior court and thus be made
liens on real estate after execution and return by Constable on goods
of defendant. Satisfaction must be entered within sixty days after
payment. Judgment in Court of Common Pleas is not a lien on
Real Estate unless Transcript filed as in case of Justice of Peace.
Limitations. Contracts not under hanu ana book accounts three
year's, bills and notes under hand six years. Judgments and special­
ties are merely presumed to have been paid after the lapse of twenty
years, but this presumption may be overcome by proof to the con­
trary. All judgments must be renewed within ten years in order
to preserve their lien on real estate. The statute does not begin to
run in favor of non-resident debtor until he comes into the State, in
such manner that he may be served with process, and if a debtor
remove after the cause of action has accrued, the time of his absence
is not computed. On recognizances of sheriffs’, administrators’, or
executors’ bonds, within six years from date. Bond of guardian
within three years from the determination of guardianship.
Married Women retain their real and personal property owned
at marriage or received from any person other than the husband.
May receive wages for their personal labor, and prosecute and defend
suits for preservation and protection of their own property, as if
unmarried, and the rents, issues, and profits of their separate estate
are not controllable by the husband. Dower: The widow is entitled
to one-third part of all the lands and tenements whereof her husband
was seized at any time during her marriage, unless she shall have
relinquished such right, for and during the term of her natural life.
If her husband dies without issue or the children of issue she takes a
moiety instead of a third part of the real estate. A married woman
of the age of twenty-one years and upward may dispose of her prop­
erty, both real and personal, by will, without the written consent
of her husband, but subject to his right of courtesy. Two or more
witnesses are necessary for a will. Husband and wife may testify
in ail civil actions in which either or both are or may be parties to
<ihe suit.
Mortgages of Real Property are executed and acknowledged like
other deeds. They become a lien from the time they are lodged
with the recorder. Upon foreclosure of same there is no redemption
of property. A purchase money mortgage should be recorded within
thirty days to avail against a subsequent innocent holder.


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2225

Proof of Claims. The full individual names of plaintiffs and
defendants, together with style of doing business, must be stated;
or if a corporation, the laws of what state under which incorporated.
One of the plaintiffs, if a partnership, or the treasurer or cashier
of a corporation, must make affidavit to the amount claimed, giving
an itemized copy of the cause of action attached thereto. It is
advisable to have the affidavit made before a notary public, though
it may be made before others. (See Affidavit.)
Protest. (See Bills and Notes.)
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 whom it is directed
can execute it the plaintiffs or some substantial person for him must
enter into bond to such officer in a penalty of double the value of
the goods to be replevined, conditioned to prosecute the suit with
effect, etc. Defendant may give counter bond and retain the goods.
Summons may be served on the defendant by stating the sub­
stance of it to him personally at any time before the return of the
writ, or by leaving a copy of it at his usual place of abode in the
presence of some adult person six days before the return thereof.
Against a corporation may be served on the president or head officer, if
residing in the State, and if not, on any officer, director, or manager
of the corporation or duly authorized agent named for said services.
In chancery service may be had by publication under order of the
chancellor. From a justice service must be personal if forthwith,
otherwise four days must intervene before hearing.
Taxes laid and imposed by the levy court of a county or by the
8tate for its own purposes, are a lien upon all the real estate of the
taxable upon whom they are imposed, for two years, from the first
day of July of the year in which tax is imposed. State income tax
payable on or before March 15th of each year for preceding year, and
such lien has preference to all other liens against him. General
assessments are made every four years.
Wills. Any person of the age of twenty-one years or upward,
of sound mind, may make a will as well of real as personal estate.
Every will must be in writing and signed by the testator, or by some
person subscribing the testators’ name in his presence and by his
express direction, and attested and subscribed in his presence by
two or more credible witnesses, or it shall be void, A will shall be
proved before the register of the county in which one testator resided
at the time of his death. A nuncupative will of personal estate not
amounting to over $200 and pronounced by the testator in bis last
illness in the presence of two or more witnesses is valid if reduced
to writing and attested by said witnesses within three days after.
Children born after the date of the will of the parent are entitled to
the same share of the parent’s estate as if such parent had died
Intestate.

SYNOPSIS OF

THE LAWS OF
THE DISTRICT OF COLUMBIA
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Dulanv, Whitman & IIeth, Attorneys at Law, Wilkins
Bldg..Washington, D. C. (See card in Attorney List.)
Acknowledgments. The deed of a corporation shall be executed
by having the seal of the corporation attached and being signed with
the name of the corporation, by its president or other officer, and shall
be acknowledged as the deed of the corporation by an attorney
appointed for that purpose, by a power of attorney embodied in the
deed or by one separate therefrom, under the corporate seal, to be
annexed to and recorded with the deed.
Acknowledgment of Deeds. When any deed or contract under
seal relating to land is to be acknowledged out of the District of
Columbia, but within the United States, the acknowledgment may
be made before any judge of a court of record and of law, or any
chancellor of a State, any judge or justice of the supreme, circuit, or
territorial courts of the United States, or any justice of the peace or
notary public; Provided that the certificate of acknowledgment
aforesaid, made by any officer of a State or Territory, not having a
seal, shall foe accompanied by a certificate of the register, clerk, or
other public officer that the officer taking said acknowledgment was
in fact the officer he professed to be. Deeds made in a foreign coun­
try may be acknowledged before any judge or notary public, or before
anysecretary of legation or consular officer or acting consular officer
of the United States as such consular officer is described in section 1674
of the revised statutes of the United States, and when the acknowl­
edgment is made before any other officer other than a secretary of
legation or consular officer or acting consular officer of the United
States, the official character of the person taking the acknowledgment
shall be certified in the manner prescribed as to deeds out of the Dis­
trict of Columbia but within the United States. No deeds of con­
veyance of either real or personal estate by individuals shall be exe­
cuted or acknowledged by attorney.
Actions. The common law forms of actions are used except as
modified by statutes.
Administration. The probate court, a special term of the
supreme court of the District of Columbia, has exclusive jurisdiction
of the settlement of estates. A written petition stating the facts
in the case must be filed with the register of wills. This petition is
acted upon by a justice of the supreme court of the District, who sits
daily. All executors and administrators and guardians are required
to give bond with security to be approved by the court. The testator
may waive the giving of bond, but the court always requires a bond
sufficient to cover the debts and legacies of the deceased not to exceed
double the value of the personal estate. By act of Congress, certain
trust companies incorporated thereunder may act as executor or ad­
ministrator without bond, and corporations having power under their
charters may act as sureties in all cases where individuals can. Credi­
tors may be barred in thirteen months provided the required notice
is properly published. Probate court may order sale of real estate to
pay debts, in case personal assets are insufficient. Assets of non-resi­
dents in District of Columbia are subject to claims of local creditors
for one year after death.
Affidavits. Affidavits for use in the District of Columbia should
be taken before a justice of the peace, notary public, judge of any
court of record, or a United States commissioner. If taken before a
justice of the peace, a certificate of his official authority from a clerk
of a court of record should be attached.
Aliens. Aliens may hold real and personal property in the District
of Columbia, and may acquire real estate by descent. Alien corpora­
tions are orohibited from acquiring real estate Corporations of which
over 50 per cent of the stock is or may oe owned by persons or asso­
ciations not citizens of United States can not acquire or own real
estate in District of Columbia.

2226

BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA

Appeals. Appeals from the Municipal Court to the Supreme Court
of the District are now abolished. Writs of error from the Court of
Appeals of the District may issue to the Municipal Court for the
review of judgments on questions of law. Appeals may be taken
from the supreme court of the District of Columbia to the court of
appeals of the District of Columbia. Certain cases are appealable
direct to the Court of Appeals. Appeals may be taken from the court
of appeals to the supreme court of the United States:
1. In cases where jurisdiction of trial court is in issue.
2. Prize cases.
3. Constitutional questions or treaties involved.
4. Where validity of any authority exercised under U. S., by an
officer is in question and
5. Construction of any law of U. S. is drawn in question.
Arrest. There is no imprisonment for debt in the District of
Columbia. The court has the power to imprison for non-payment of
alimony in divorce cases, and for contempt of court.
Attachments. In any action at law in the Supreme Court of
the District of Columbia or the Municipal Court of said District, for
the recovery of specific personal property, or a debt, or damages for
the breach of a contract, express or implied, if the plaintiff, his agent
or attorney, either at the commencement of the action or pending the
same, shall file an affidavit showing the grounds of his claim and setting
forth that the plaintiff has a just right to recover what is claimed
in his declaration, and where the action is to recover specific personal
property stating the nature and, according to affiant’s belief, the value
of said property and the probable amount of damages to wnich the
plaintiff is entitled for the detention thereof, and where the action is
to recover a debt stating the amount thereof, and where the action is
to recover damages for the breach of a contract setting out, specif­
ically and in detail, the breach complained of and the actual damage
resulting therefrom, and also stating either, first, that the defendant
is a foreign corporation or is not a resident of the District, or has
been absent therefrom for at least six months: or, second, that the
defendant evades the service of ordinary process by concealing him­
self or temporarily withdrawing himself from the District; or, third,
that he has removed or is about to remove some or all of his property
from the District, so as to defeat just demands against him; or,
fourth, that he has assigned, conveyed, disposed of, or secreted, or
is about to assign, convey, dispose of, or secrete his property with
intent to hinder, delay, or defraud his creditors; or, fifth, that the
defendant fraudulently contracted the debt or incurred the obligation
respecting which the action is brought, the clerk shall issue a writ
of attachment and garnishment, to be levied upon so much of the
lands, tenements, goods, chattels, and credits of the defendant as
may be necessary to satisfy the claim of the plaintiff: Provided, That
the plaintiff shall first file in the clerk’s office a bond, executed by
himself or his agent, with security to be approved by the clerk, in
twice the amount of his claim, conditioned to make good to the
defendant all costs and damages which he may sustain by reason of
the wrongful suing out of the attachment.
Bills and Notes. Uniform Negotiable Instruments Act in force,
adopted January 12, 1899.
Chattel Mortgages. No bill of sale or mortgage or deed of trust
to secure a debt of any personal chattels whereof the vendor, mort­
gagor, or donor shall remain in possession, is valid and effectual to
pass the title herein, except as between the parties to such instru­
ment and as to other persons having actual notice of it, unless the
same be executed and acknowledged and within ten days from the
date of such acknowledgment recorded in the same manner as deeds
of real estate; and as to third persons not having notice of it, such
instrument shall be operative only from the time within said ten
days when it is delivered to the recorder of deeds to be recorded.
Collaterals. The holder of the note as collateral security for debt
stands upon the same footing as the purchaser and may maintain suit
thereon for his own benefit. The collateral pledged may be sold in
accordance with the terms of the collateral note which usually pro­
vides that the collateral may be sold upon non-payment of the prin­
cipal of the note, either at public or private sale, and in such cases the
purchaser at any such sale obtains a valid title to the collateral sold.
Contracts. Every contract and obligation entered into by two
or more persons, whether partners or merely joint contractors, whether
under seal or not, written or verbal, and whether expressed to be
joint and several or not, is for the purposes of suit deemed joint and
several. On the death of one or more of such persons, his or their
executors, administrators, or heirs are bound by said contract in the
same manner and to the same extent as if the same were expressed
to be joint and several. In actions ex contractu against alleged joint
debtors it is not necessary for the plaintiff to prove their joint lia­
bility in order to maintain his action, but he is entitled to recover,
as in actions ex delicto, against such of the defendants as shall be
shown by the evidence to be jointly indebted to him, or against one
only, if he alone is shown to be indebted to him, and judgment will
be rendered as if the others had not been joined in the suit. Any of
several joint debtors, when their debt is overdue, may make a separate
composition or compromise with their creditors.
Corporations. Any three or more persons may form a company
for the purpose of carrying on any enterprise or business which may be
lawfully conducted by an individual, excepting banks of circulation
or discount, railroads and such other enterprise or business as is other­
wise provided for. Such corporations may have a perpetual existence.
No such company is authorized to transact business until 10 per cent
of the capital stock shall have been actually paid in, either in money
or property at its actual value; and the recorder of deeds, before
filing any certificate of incorporation, must be satisfied that the entire
capital stock has been subscribed for in good faith. All of the stock­
holders of such company are severally and individually liable to the
creditors of the company in which they are stockholders for the unpaid
amount due upon the shares of said stock held by them respectively
for all debts and contracts made by such company, until the whole
amount of capital stock fixed and limited by such company shall have
been paid in, and a certificate thereof shall have been made and
recorded. Every such company must annually, except insurance
companies, within twenty days from the first of January, make a
report, which shall be duly published and which report shall state the
amount of capital and the proportion actually paid and the amount of
existing debts. Foreign corporations doing business in the District
of Columbia are subject to service of process on their agents or on
the persons conducting their business, or by leaving copy thereof at
the principal place of business of such company, or at the residence
of its agent. The affairs of the corporation shall be managed by not
less than three nor more than fifteen trustees, a majority of whom
must be residents of the District, to be annually elected, except for
the first year, by the stockholders, at such time and place as may be
provided by the by-laws. The fee of the recorder for filing all certi­
ficates of incorporation where capital stock is authorized is forty
(40) cents on each $1,000 of the amount of the capital stock of the
corporation, as set forth in its certificate, provided that no fee shall
be less than $25.
Courts in session continuously throughout the year. Suits on
contracts, accompanied by sufficient affidavit of right to recover, is
result in judgment in twenty days, exclusive of Sundays and legal
holidays, after day of service on defendant, unless defendant file and
affidavit setting forth facts which, if true, would in law constitute
a valid defense.
Days of Grace abolished.
Deeds. The following form of deed is now all that is required in
the District of Columbia to convey a fee simple title to real estate:
This deed, made this. .. .day of............. in the year.......... by me...........
of............. witnesseth: That in consideration of (here insert con­


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sideration), I. the said............. do grant unto (here insert grantee's
name), of............. all that (here describe the property)
Witness my hand and seal.
.................................. (Seal.)
A deed must be acknowledged and recorded with the recorder of deeds
and takes effect from the time of recording. A scroll is considered a
sufficient seal.
Depositions. Depositions of witnesses to be used in any civil
cause whether the case be at issue or not, may be taken under any of
the following conditions: 1. Where the witness lives beyond the
District of Columbia. 2. Where the witness is likely to go out of the
United States or out of the District and not return in time for the
trial. 3. Where the witness is infirm or aged, or for any reason the
party desiring his testimony fear he may not be able to secure the same
at the time of trial, whether the said witness resides within the District-or not. 4. If during the trial any witness is unable, by reason
of sickness, or other cause, to attend the trial, the deposition of such
witness may, in the discretion of the court, be taken and read at the
trial. The deposition may he taken before any judge of any court of
the United States; before any commissioner or clerk of any court of
the United States, or any examiner in chancery of any court of the
United States: before aiw chancellor, justice, or judge or clerk of
any court of any State or Territory or other place under the sover­
eignty of the United States, or any notary public or justice of the
peace within any place under the sovereignty of the United States:
Provided, that no such person shall be eligible to take such deposition
who is counsel or attorney for any party to the cause, or who is in
anywise interested in the event of the cause.
Descent and Distribution. Iteal Estate, Lands of intestate
descend, first, to child or children equally. If there be children of a
deceased child, these children take (equally) the share of their immedi­
ate ancestor. If no child or descendant of such child, and the estate
descended to intestate on the part of the father, then it goes to the
brothers and sisters of the intestate of the blood of the father, and
their descendants equally. If there be no such brothers or sisters
or descendants, then it goes to the grandfather on the part of the
father; and if no such grandfather living, then it goes to the descend­
ants of such grandfather, and their descendants in equal degree equally;
and so on, passing to the next lineal male paternal ancestor, and if
none such, to his descendants in equal degree equally, without end;
and if no paternal ancestors or descendant from such ancestor, then
to the mother of the intestate, and if no mother living, then to her
descendants in equal degree equally; and if there be no mother living
or descendants from such mother, then to the maternal ancestor and
their descendants in the same manner as above directed as to the
paternal ancestors and their descendants.
If the estate descended to intestate on part of mother, then it
follows the mother’s line, and afterwards that of the father, in manner
above indicated, If the estate vested in intestate by purchase, and
was not derived from or through either of his ancestors, and there
be no child or descendant of such intestate, then it descends to brothers
and sisters of whole blood, and their descendants in equal degree
equally; next to brothers and sisters of half blood, and their descend­
ants; next to father of intestate; next to mother; then to grandfather
on father’s side, or his descendants; then to grandfather on mother’s
side, or his descendants, and so on, alternating next male paternal
ancestor and his descendants, and next male maternal ancestor and
his descendants.
Personal Estate. Surplus of personal estate of an intestate, after
paying debts and expenses of administration, is to be distributed as
follows: If the intestate leave a widow or surviving husband and no
child, parent, grandchild, brother, or sister, or the child of a brother
or sister of the said intestate, the said widow or surviving husband shall
be entitled to the whole. If there be a widow or surviving husband
and a child or children, or a descendant or descendants from a child,
the widow or surviving husband shall have one third only. If there
be a widow or surviving husband and no child or descendants of the
intestate, but the said intestate shall leave a father or mother, or
brother or sister, or child of a brother or sister, the widow or surviving
husband shall have one half. The surplus, exclusive of the widow’s
share, or the whole surplus (if there be no widow), shall go as follows:
If there be children and no other descendants, the surplus shall be
divided equally among them. If there be a child or children and a
child or children of a deceased child, the child or children of such
deceased child shall take such share as his, her, or their deceased
parent would, if living, be entitled to, and every other descendant or
descendants in existence at the death of the intestate shall stand in
the place of his, her, or their deceased ancestor. If there be a father
and no child or descendant, the father shall have the whole; and if there
be a mother and no lather, child, or descendant, the mother shall
have the whole. If there be a brother or sister, or child or descendant
of a brother or sister, and no child, descendant, or father or mother
of the intestate, the said brother, sister, or child or descendant of a
brother or sister shall have the whole. Every brother and sister of
the intestate shall be entitled to an equal share, and the child or
children, or descendants of a brother or sister of the intestate, shall
stand in the place of their deceased parents respectively. After
children, descendants, father, mother, brothers, and sisters of the
deceased and their descendants, all collateral relations in equal degree
shall take, and no representation among such collaterals shall be
allowed. If there be no collaterals, a grandfather may take, and if
there be two grandfathers they shall take alike; and a grandmother, in
case of the death of her husband, the grandfather, shall take as he
might have done. If any person entitled to distribution shall die
before the same shall be made, his or her share shall go to his or her
representatives. Posthumous children of intestate shall take in the
same manner as if they had been born before the decease of the
intestate, but no other posthumous relation shall be considered as
entitled to distribution in his or her own right. In the distribution
of personal estate there shall be no distinction between the whole
and half blood.
Dower. A wife is entitled to dower in all real estate owned by the
husband at the time of his death, including equitable as well as legal
estates.
Evidence. (See Depositions.)
Executions. Executions may be levied upon all goods and chat­
tels of the debtor not exempt, and upon gold and silver coin, bank
notes or other money, bills, checks, promissory notes or bonds, or
certificates of stock in corporations owned by said debtor, and upon
money owned by him in the hands of the marshal or of the constable
charged with the execution of such writ, and also upon all legal lease­
hold and freehold estates of the debtor in land. Executions on judg­
ments before justices of the peace may be superseded, according to
the amount of the judgment, upon good and sufficient security being
entered by a person who may at the time be the owner of sufficient
real property located in the District, above all liabilities and exemp­
tions, to secure the debt, costs and interests from one to six months,
but there can be no stay of execution for wages of servants or common
laborers, nor upon any judgment for less than $5.
Exemptions. (Actual residents.) In addition to wearing ap­
parel, etc., household furniture to the value of $300, implements
of debtor’s trade or business to the value of $200, stock for carrying
on business to amount of $200, one horse, harness and cart, wagon
or dray, and earnings of married men or heads of families, not to
exceed $100 per month for two months. Exemptions are only allowed
where the party claiming such is the head of a family or householder
residing in the District.
Foreign Judgments. Suits may be instituted In the supremo
court of the District of Columbia on any judgment of a court of record
in any other jurisdiction. The declaration in any such case must be
accompanied by a transcript of the record of such judgment verified
according to the act of congress in such cases made and provided, and
judgment in due course may be rendered on such transcript as in
any other case.

BANKING AND COMMERCIAL LAWS—FLORIDA
Garnishment. After judgment the writ of garnishment may
issue against specific property or credits in the hands of the garnishee
and on the return of the writ, if there be credits, the judgment or
condemnation follows. The writ of garnishment can not be issued
against the United States or the District of Columbia.
Holidays.
Legal holidays are January 1st, February 22d,
May 30th, July 4th, first Monday in September (Labor Day), Decem­
ber 25th, or the following day when any of these dates fall on Sun­
day, and such day as may be appointed by the President of the
United States for fasting and prayer, and the day of the inauguration
of the President, in every fourth year, shall be holidays in the District
for all purposes. Every Saturday is a legal half holiday and notes
falling due on that day are not payable until Monday.
Husband and Wife. The wife’s property is exempt from the hus­
band’s debts. The husband may convey direct to his wife. The
wife may use all of her property of every description as fully as if she
were unmarried, and may dispose of the same by deed, etc., as fully
as if she were unmarried. She also has power to trade and to sue and
be sued, but no married woman under the age of twenty-one years can
make a valid deed or conveyance. On the death of a married woman
the husband is entitled to an estate by courtesy in her foe simple prop­
erty of which she dies intestate. The husband is not liable for the
debts of his wife contracted before marriage. A husband, who wil­
fully neglects to provide for wife or minor child under sixteen years,
in destitute circumstances, may be adjudged guilty of a misdemeanor,
and may be fined, or imprisoned, by the court having jurisdiction.
Interest. The legal rate of interest in the District of Columbia is
6 per cent, and in any suit where the contract is tainted with usury the
plaintiff forfeits the whole of the interest so contracted to be received,
and where usurious interest has been paid it can be recovered pro­
vided action for such recovery be brought within one year. In an
action on a contract for the payment of a higher rate of interest than
is lawful in the District, made or to be performed in any state or
territory of the United States where such contract rate of interest
is lawful, the judgment for the plaintiff shall include such contract
interest to the date of the judgment and interest thereafter at the
rate of 6 per centum per annum until paid. By express contract this
rate may be increased to 8 per cent.
Judgments. Every judgment is good and enforceable by an execu­
tion issued thereon for a period of twelve years from the date when an
execution might first have been issued thereon or from the date of the
last revival thereof by scire facias. Judgments of the municipal court
are good for six years, but are not liens on real estate until recorded in
the supreme court of the District of Columbia.
Jurisdiction. (See Actions, Appeals, and Municipal Court.)
Limitations. Fifteen years for recovery of lands, tenements or
hereditaments; executor’s or administrator’s bond, five years; instru­
ments under seal, twelve years; simple contracts and recovery of per­
sonal property and damages for its unlawful detention, three years;
statutory penalty or forfeiture, libel, slander, assault, battery, may­
hem, wounding, malicious prosecution, false arrest or imprisonment,
one year; all other actions three years. Usual exceptions in favor
of persons under disability. Acknowledgment to revive action on
debt must be in writing. Part payment will take debt out of statute.
Married Women. (See Husband and Wife.)
Mortgages. Mortgages are almost entirely supplanted by deeds
of trust, requiring no court proceedings to foreclose. Joining the wife
is necessary to bar dower.
Municipal Court. By an act of Congress, effective June 1, 1921,
the Municipal Court of the District of Columbia was made a court
of record. It now has exclusive jurisdiction in all civil cases in which
the claimed value of personal property, debt or aamages exclusive
of interest and costs, does not exceed $1,000. When the value in
controversy shall exceed $20, and in all actions for the recovery of
the possession of real property, either party may demand a jury trial.
Judgments rendered by the Municipal Court remain in force for six
(6) years and no longer, unless it shall be docketed with the clerk of
the Supreme Court of the District of Columbia, when it remains in
force for twelve (12) years.
No judgment shall be a lien upon the
defendants real property until so docketed.
Partnerships. Limited partnerships for the transaction of any
mercantile, mechanical, or manufacturing business within the District
may be formed by any two or more persons, but the number of special
partners is limited to six. The special partners are not liable for
the debts of the partnership beyond the fund contributed by them
to the capital. A certificate setting forth the firm name; general
nature of the business to be conducted; names of all the general
and special partners interested therein, distinguishing which are
general and which are special, and their respective places of resi­
dence; the amount of capital contributed by each special partner
to the common stock; and the period at which the partnership is
to commence and terminate must be filed with the clerk of the supreme
court after having been acknowledged in the manner prescribed for
deeds.
Protest. May be made by a notary public under his hand and
seal; or by any respectable resident of the place where the bill is
dishonored, in the presence of two or more credible witnesses. Where
a foreign bill, appearing on its face to be such, is dishonored by nonacceptance, it must be duly protested for same; and where such a
bill which has not previously been dishonored by non-acceptance,
is dishonored by non-payment, it must be duly protested for same.
If it is not protested the drawer and indorsers are discharged. Where
a bill does not so appear to be a foreign bill, protest thereof in case
of dishonor is unnecessary. The protest must be annexed to the bill
or contain a copy thereof and must state the (1) time and place
for presentment; (2) the fact that presentment was made and the
manner thereof; (3) the cause or reason for protesting; (4) the demand
made and the answer given, if any, or the fact that the drawer or
acceptor cannot be found.
Records. The exemplification of the record under the hand of the
keeper of the same, and the seal of the office or court where such
record may be made, is good and sufficient evidence to prove any
record made or entered in any of the States or Territories of the United
States; and the certificate of the party purporting to be the keeper
of such record, accompanied by such seal, is prima facie evidence
of that fact. A copy of the record of any deed or other instrument
in writing not of a testamentary character, where the laws of the
State, Territory, or country where the same may be recorded require
such record, and which has been recorded agreeably to such laws,
and the copy of any will which said laws require to be admitted
to probate and record, by Judicial decree, and of the decree of the
court admitting the same to probate and record, under the hand
of the clerk or other keeper of such record and the seal of the court
or office in which the record has been made, is prima facie evidence
to prove the existence and contents of such deed, will, or other instru­
ment in writing, and that it was executed as it purports to have been.
Taxes. The rate of taxation is now subject to the will of Congress
to be fixed each year as may be expedient. At present the rate is
$1.80 per hundred upon assessed values of real and personal property.
Assessments of real estate are fixed at the fair cash value. Penalty
of 1 per cent per month for default in payment. A lien for real estate
taxes accrues on the date taxes are assessed- July 1st. Taxes are
payable, one-half on Sept. 1st and one-hair on March 1st of each
year, with 30 days grace ror payment berore penalty attaches. New
assessments are made every year for real estate tunless improve­
ments are put on) and every year for personal property by a permanent
Board of Assessors. Intangibles are taxed at the rate of one-half of
one percentum of the fair value thereof.


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2227

Trust Companies. Trust companies can be organized under the
general provisions of the code on that subject. No trust company
can be incorporated with less capital stock than $1,000,000. May
do a storage business with a capitalization of not less than $1,200,000.
Foreign companies desiring to operate in the District must first com­
ply with the provisions for the organization of trust companies under
the laws of this District.
Wills. All wills and testaments must be in writing and signed by
the testator, or by some other person in his presence and by his express
directions, and shall be attested and subscribed in the presence of
the said testator by at least two credible witnesses. No will, testa­
ment, or codicil is effectual for any purpose whatever unless the
person making the same be, if a male, of the full age of twenty-one
years, and if a female, of the full age of eighteen years, and be at
the time of executing or acknowledging it, of sound and disposing
mind and capable of executing a valid deed or contract. Any will
executed after January 17, 1887, and before January 1, 1902, devising
real estate, from which it shall appear that it was the intention of
the testator to devise property acquired after the execution thereof
shall be deemed, taken and held to operate as a valid devise of all
such property; and any will hereafter executed, which shall by words
of general import devise all of the estate or all of the real estate of
the testator shall be deemed, taken and held to operate as a valid
devise of any real estate acquired, by said t stator after the execu­
tion thereof, unless an intention shall appear to the contrary. Where
a devisee or legatee dies before the testator, leaving issue, such issue
stands in the place of the deceased devisee or legatee unless a contrary
intention appear from the will.

SYNOPSIS OF

THE LAWS OF FLORIDA
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Haley & Heintz, Attorneys at Law, Graham
Bldg., Jacksonville, Fla.
Accounts. Open accounts are barred in three years.
Acknowledgments must in every instance be under official seal.
If made in the State of Florida, may be made before any judge, justice
of the peace, clerk or deputy clerk of a court of record, or notary public;
or if made out of the State, and within the United States, before a
United States Commissioner of Deeds appointed by the governor of
this State, or before a judge or clerk of any court of the United States
or of any state, territory or district, having a seal, or before a notary
public or justice of the peace of such state, territory or district, having
an official seal, and the certificate of acknowledgment or proof shall
be under the seal of the court or officer as the case may be. If made
out of the United States, before any commissioner of deeds appointed
by the governor of the State to reside in such country, or any notary
public of such foreign country, or before any minister charge d’affaires,
consul-general, consul, vice-consul, commercial agent, or vice-com­
mercial agent of the United States appointed to reside in such country.
Conveyances of dower and powers of attorney for the execution of
deeds to real estate must be executed in like manner as conveyances of
real estate. A wife's acknowledgment must be taken separate and
apart from her husband. Officers must certify that the grantors are
known to him. The following is the usual form adopted, viz:
State of Florida,
I
County of..............................J
Before the subscriber personally appeared........................................... and
his wife.................... known to me to be the individuals described in
and who executed the foregoing instrument who acknowledged that
they executed the same for the uses and purposes therein expressed
and the said..................................................................wife of the said............
............................. being by me further and privily examined separate
and apart from her said husband, acknowledged and declared that
she executed the same freely and voluntarily, and without fear, appre­
hension, compulsion, or constraint of, or from her said husband, and
for the purpose of renouncing and relinquishing all her right, of what­
soever kind, in and to said property.
Given under my hand and seal official this................ day of.................
19....

Notary Public.
My commission expires.............................................................(See notaries.)
Actions. Suits shall be begun only in the county (or if less than
$100 in justice district) where the defendant resides, or where the
cause of action accrued, or where the property in litigation is. If
brought in any county where defendant does not reside, the plaintiff,
or some person in his behalf, shall tile with the precipe or bill in chan­
cery, an affidavit that the suit is brought in good faith and with no
intention to annoy the defendant. This latter provision does not
apply to suits against non-residents. Where there are joint defendants
suit may be brought in any court (or justice district) where any one of
the defendants resides, or where the cause of action accrued or where
the property in litigation is. Corporations (domestic) can only be
sued in a county where they keep an office. Foreign corporations may
be sued in any county where they have an agent, or where the cause
of action accrued or where the property in litigation is.
Administration of Estates. Upon the death of a person intestate
or having made a will but appointing no executor, the county judge
appoints an administrator, preferring first the next of kin; but if none
such apply, then, upon notice given by publication, any creditor or
suitable person. No minor can be appointed. If no one applies for
letters of administration within sixty days after death, the probate
court may order the sheriff to act. The administrator appointed by
the court must give bond in amount to be fixed by the probate judge,
respect being had to the value of the estate. The sheriff when acting
as administrator is liable upon his official bond. Claims against an
estate are barred after one year from date of notice given by adminis­
trator to present same. Claims are required to be filed in the office
of the County Judge. Debts due more than five years prior to death
mentis, imprisoned, or out of State, three years, after removal of disa­
bilities. The compensation of the administrator is determined by
the court and. in addition to compensation for his ordinary duties,
not to exceed 6 per cent of money received for sales made of personal
and real property. Administrators must make annual settlements
before the first day of June each year or forfeit commissions. The
Circuit Court is empowered to authorize administrator or executor
to carry on deceased’s trade or business for a reasonable time.
Affidavits may be made before any judge, clerk of the circuit and
supreme courts, justice of the peace, or notary public.
Aliens. No distinction between any citizens, except that they are
not allowed to vote.
Appeals. Appellate proceedings for the common law side are by
writ of error, which must be sued out within six months from the date
of the judgment. The record must be filed in appellate court on or
before the return day of the writ, under penalty of dismissal. Ques­
tions of fact can only be taken up by bill of exceptions, which must be
presented within the term of the court unless by special order the time
is extended. Appeals in chancery may be taken within six months

2228

BANKING AND COMMERCIAL LAWS—FLORIDA

and the law governing writs of error as tar as it relates to filing of
transcripts of records and proceedings thereon and filing assignment
of errors, the duty of appellate court in giving judgment, in causing
execution of its decrees and quashing writs of error, are applicable
to appeals in chancery. Notice of appeal in chancery must be filed
with clerk and recorded in minutes. This gives appellate court juris­
diction.
Arbitration. Parties to the controversy may make a rule of court
of any arbitration to which they may desire to submit by filing a state­
ment of agreement of the matters they desire to arbitrate in writing
with the court having jurisdiction, which statement shall include the
names of the arbitrators and the umpire. An award upon such arbi­
tration can only be set aside for fraud, corruption, gross negligence,
or misbehavior of one or more of the arbitrators or umpire, or evident
mistake acknowledged by the arbitrators or umpire, who made and
signed the award.
Arrest. No arrest for non-payment of money unless it be for non­
payment of a fine lawfully imposed.
Assignments and Insolvency. Assignments by insolvents are
provided for by law. Preferences are not allowed. All property,
except that which is exempt, must be surrendered to the assignee.
Assignee gives bond and winds up estate.
Attachment process may issue upon affidavit made, setting forth
that amount is actually due: that plaintiff has reason to believe defend­
ant will fraudulently part with his property before judgment can be
recovered or is actually removing his property, or is about to remove
it out of the State, or resides beyond the limits thereof, or is actually
removing or about to remove out of the State, or absconds or conceals
himself or is secreting property or fradulently disposing of same, or
actually removing, or is about to remove, beyond the judicial circuit
in which he, she, or they reside. Attachment may also issue for a debt
not due, upon affidavit stating that the debt is actually existing, and
that the defendant is actually removing his property beyond the
limits of the State, or is fraudulently disposing of his property for
the purpose of avoiding the payment of his just debts or demands, or
is fraudulently secreting his property for such purposes. The making
of the affidavit causes all debts to mature for the purpose of the suit.
Plaintiff must give bond, with two sureties in at least double the debt
or sum demanded. One surety is sufficient if that surety is a surety
company authorized to do business in the state of Florida Service
of notice of the suit may be either personal or by publication where
attachment is levied and property is not retaken by defendant. No
arrest allowed in civil actions. Writs of garnishment may be issued
both before and after judgment. If issued before judgment plaintiff,
his agent or attorney must make affidavit that the debt for which the
plaintiff sues is just, due and unpaid; that the garnishment applied
for is not sued out to injure either the defendant or the garnishee;
that he does not believe that defendant will have in his possession
after execution shall be issued visible property in this state and in
the county in which suit is pending upon which a levy can be made
sufficient to satisfy the amount of plaintiff's claim, stating the amount,
and, except in cases in which plaintiff has had an attachment or
obtained his final judgment, he. his agent or attorney, must enter into
bond payable to defendant in double the amount of the debt, condi­
tioned to pay all costs and damages which defendant may sustain in
consequence of plaintiff’s improperly suing out the writ.
Banks. No banking company shall be organized with a capital
less than SoO.OOO, except that banks with a capital of not less than
$15,000 may with approval of comptroller, be organized in any city
or town containing not more than 3,000 inhabitants, and that banks
with a capital stock of $25,000 may, with the approval of the comptrol­
ler, be organized in any city or town of not more than 6.000 inhabitants.
Savings banks may have not less than $20,000 capital. Banks are
formed as other corporations are, and can not begin business until
authorized by the comptroller. The comptroller of the State may
inspect and supervise the business of the bank, except national banks,
and inspect and examine its books, papers, documents, minutes, and
everything pertaining to the acts of the bank. Banks are required
to make full and complete reports whenever called for by the State
Comptroller in such form as he may prescribe, and advertise in
January of each year amount of stock, property, and contractual
indebtedness. Before organization the whole of the capital stock
must be paid in cash. Stockholders are individually liable to the
extent of their stocK at the par value thereof, in audition to the amount
invested in said shares. Directors must be citizens of the United
States, and own ten shares of stock of $100 per share. The comp­
troller, with the aid of the courts, winds up the affairs of insolvent
banks. Private bankers are subject to all penalties .of the State
banking laws and to the supervision and control of the State Comp­
troller. No new private banks permitted after June 4, 1915. It is
a misdemeanor to make wilful and malicious derogatory statements
affecting banking institutions.
Bills of Lading. Bills of lading are evidence against the carrier of
the direction by which freights are to be received, carried, and delivered
—collector or holder of commercial paper, attached to a bill of lading
not a warrantor of the quantity or quality of the goods represented
thereby, except by express contract in writing, and the officers, agents,
ana employes of the carrier are required to comply with the terms of
the bill or lading under penalty of criminal prosecution.
Blue Sky Law. Corporations before offering for sale their stocks,
bonds, or other securities are required to file with the State Comp­
troller. together with filing fee of $5.00, the following documents:
statement showing in full detail the plan under which the corporation
proposes to transact business; copy of all contracts, bonds, stocks or
other instruments which it proposes to sell; name and location of the
company; itemized financial statement; and such other information
as the Comptroller may require. In addition to the above such
corporation is required to file copy of its articles of incorporation,
constitution ana by-laws. All the above papers to be verified by oatn
of the president of the corporation, or other duly authorized officer.
If it is a foreign corporation it is required to file with the Comptroller
written and irrevocable consent to accept service of process on the
State Comptroller as personal service upon the corporation in suits
filed against it within the State. This consent to be pursuant to
resolution of the board of directors, shall be duly authenticated by
seal of the corporation, signature of the President, Secretary, etc.
The Comptroller and Attorney General are required to make such
detailed investigation and examination of the affairs of the corporation
as they deem necessary at the expense of the corporation. If in the
opinion of the Comptroller and Attorney General the corporation
should be permitted to sell its stocks, bonds, etc., they will issue a
permit. No stock may be sold until the permit shall have been
received. It is also required before stocks, bonds, etc., may be sold
that an agent be appointed by the corporation for the sale of its
stock, bonds, etc., which agent Is required to register with the Comp­
troller as agent for such corporation. The Comptroller and Attorney
General may if they see fit require such agent or agents to file a bond
conditioned that the securities offered for sale are fair and just, and
conditioned to hold harmless the purchasers against loss occasioned
by reliance by such purchasers on false or fraudulent representations
made in the course of sale. The agent’s authority is subject to revo­
cation at any time by the Comptroller and Attorney General, and
automatically expires on January 1st of each year. Financial state­
ments are required to be forwarded to the Comptroller and Attorney
General upon their demand. The Comptroller and Attorney General
are authorized to revoke license of such corporation to transact busi­
ness within the State if in their opinion the corporation at any time
is insolvent, or conducting its business in an unsafe, inequitable or
unauthorized manner.
Chattel Mortgages and Deeds of Trust. All conveyances in­
tended to secure the payment of money are mortgages. Chattel
mortgages must be recorded or the uroperty delivered to mortgagee
to make them effectual against bona fide creditors and purchasers for


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value. Injunction will be granted against the removal of mortgaged
personalty from the State; can only be foreclosed by bill in chancery
unless under $100, and upon personal property, when a common law
action may be brought in justice of the peace court, and mortgage filed
with precipe. The form and effect of trust deeds have not been dis­
turbed by statute. It is a criminal offence to mortgage personal prop­
erty more than once without the consent of first lienor.
tjneeks and Drafts. It is a felony to obtain money or goods by
drawing and uttering check or draft having insufficient- funds on
deposit to pay same, provided the check or draft is presented in due
course and drawer fails to pay same, or return the consideration
received, within twenty-four hours after written notice of dishonor.
Collateral Security. It is a misdemeanor to sell, pledge, loan, or
in any way dispose of collateral security without the consent of pledgor.
A written agreement may be made at the time of making the pledge
for the sale of the collateral in such manner and upon such terms as
the parties may desire, but notice must be given to pledgor ten days
prior to sale.
Contracts. Statute of Frauds. In order to bind an admin­
istrator personally, or any one for the debt or default of another, or
one upon an agreement made in consideration of marriage; or upon
contracts for the sale oflands.tenements.or hereditaments or any uncer­
tain interest therein or for any lease thereof for a period longer than
one year; or upon an agreement not to be performed within one year,
there must be an agreement, note, or memorandum thereof in writing
signed by the party to be charged, or some one lawfully authorized
by him. Contracts for the sale of personal property must be in writing
or the property must be delivered or earnest money paid. News­
papers and periodicals must either be subscribed for or ordered in
writing.
Conveyances. (See Acknowledgments.) All conveyances of real
estate, or any interest therein for a term of years of more than two
years, must be by deed in writing, signed, sealed and delivered in the
presence of at least two subscribing witnesses; and in order to be
effectual against subsequent grantees or incumbrances, must be
recorded. The wife’s separate estate can be conveyed only by the
joint deed of herself and husband, and confirmed by her acknowledg­
ment, taken separate and apart from her husband. Words of limita­
tion unnecessary. Husband may convey direct to wife.
Corporations may be organized for any lawful business under a
general law. Stockholder liable only for amount unDaid upon sub­
scription. Charter fee of $2 for every $1,000 of capital stock up to
$125,000 capital; 50 cents per $1,000 on each additional $1,000 up
to $2,000,000 and 25 cents per $1,000 for additional, payable to the
State, but no fee is less than $10.00. Corporations may have stock
of “no par value.” (See Service of Process.) Designation of resident
agent for service of process required of domestic and foreign corpora­
tions doing business in the state.
Costs. Non-resident plaintiff required to give $100 bond to secure
costs. The defendant may have suit dismissed if bond is not given.
Courts. Circuit courts hold two terms a year in each county,
except in twelfth where four terms are held and in first, ninth, eleventh
and fourteenth circuits where they hold three terms a year, and have
original jurisdiction in all equity cases, also in all cases at law not
cognizable by inferior courts. County courts in such counties as
have county courts have jurisdiction of amounts not exceeding $500
County judges, at all times open for probate business, have full probate
powers, have also civil jurisdiction to extent of $100. Justice’s
jurisdiction, $100.
Creditors’ Bills may be brought before claim is reduced to judg­
ment, but suit at law must be first brought and judgment must be
obtained before decree can be rendered.
Days of Grace are abolished.
Depositions may be taken upon commission when witness resides
out of the county, or is bound for sea, or is about to go out of the
State to remain until after the trial of the cause, or is very aged or
infirm; or when oath is made that a material part of the case or defense
depends upon the testimony of such witness. The time for the suing
out of the commission, the names of the witnesses, and the name of
one commissioner must be given to opposite side a reasonable time
before commission is issued. Printed instructions for the guidance of
commissioners usually accompany commission. Fees or not less than
$5 a witness are to be taxed as costs by the clerk and paid by losing
party.
Descent and Distribution of Property. Property descends: 1.
To the children and husband in equal shares. 2. If there be no
children then all to the husband or wife. 3. If there be no children,
husband or wife, then to the father and mother in equal shares, or to
survivor. 4. If no father or mother than to the brothers and sisters
and their descendants. 5. If there be no brother or sister nor their
descendants, then the estate shall be divided into moieties, one of
which shall go to the paternal and one to the maternal branches in
the following course: 1. To grandfather. 2. To grandmother, uncles
and aunts. 3. To great-grandfathers. 4. To great-grandmother,
brothers and sisters of great-grandfathers, etc., passing first to near­
est lineal male and then to lineal female ancestors and their descend­
ants. The estate of an infant decedent, if without issue, leaving no
husband or wife, shall descend: 1. To father of infant. 2. Mooher of
infant. 3. Brothers and sisters of infant. 4. In case no father, mother,
brothers or sisters or their descendants surviving, then it descends
according to the general rules of descent prescribed by statute. Halfbloods inherit only one-half. Adopted children are treated as children
of blood. Bastards inherit and transmit through mother’s side, as
if legitimate. Aliens have same right as citizens. There are no
entailed estates nor right of survivorship.
Dower. Deceased may not by will cut off his widow’s right to
dower. If dissatisfied with terms of will, she may dissent within
one year after probate of will and she will then be entitled to one-third
of the real estate t'or life, ana, it there are two or more children, to
one-third of the personalty in fee simple; if there are no children, or
only one, she will be entitled to one-half the personalty. She may
within one year elect to take a child’s part in lieu of dower. If the
husband die intestate, without children, the wife takes the whole
estate, or dower, at her election.
Evidence. Witnesses not disqualified by reason of interest. In
civil cases, husband and wife may testify for or against each other.
In suits by or against lunatics or personal representatives, heirs-atlaw, next of kin, assignee, legatee, devisee, or survivor of a person
deceased, no evidence of a transaction or communication between
such lunatic or deceased person and the opposing party or those under
whom he claims, can be given by the opposing party, unless such evi­
dence is first offered in behalf of such lunatic representatives legatees,
devises, etc. No person is excused from testifying or producing
documents in trials for bribery, burglary, larceny, gambling, or illegal
sale of liquors, on ground that it may tend to convict him of crime
but no such person shall thereafter be prosecuted or subjected to any
penalty on account of anything concerning which he may so testify
or produce evidence.
Executions. Executions can be issued immediately upon the
entry of the judgment and within three years thereafter, and are a lien
upon real estate from date of entry, and upon personal property from
the time the sheriff receives them. They can be renewed any time
within twenty years from entry of judgment. Both real and personal
property are subject to sale under execution. Executions are return­
able when satisfied, sheriff reporting progress at each term. Sale day
first Monday in each month. No stay law. No redemption of prop­
erty sold under execution.
Exemptions to every head of a family residing in the State home­
stead of 160 acres of land, and improvements, if in the country; onehalf acre of ground, if in an incorporated city or town, together with
$1,000 worth of personal property. The exemptions in a city or town

BANKING AND COMMERCIAL LAWS—FLORIDA
shall not extend to more Improvements or buildings than the residence
and business house of the owner. No property is exempt from sale
for taxes or assessments, or for obligations contracted for its purchase,
or the erection or repair of improvements thereon, or for house. Held,
or other labor performed thereon. Wages and salary of head of a
family residing in the State is exempt from garnishment.
Foreign Corporations. Commercial corporations can do business
in this State without restriction upon complying with requirements
as to foreign corporation, provided its name is not the same or so
nearly similar to any domestic corporation as to cause confusion.
(See Service of Process.)
Foreign Judgments. Judgments obtained in the several courts
of the State, may be recorded in any county and have same force and
effect as if originally obtained therein. Judgments obtained in other
States or countries, merely evidence, and have to be sued upon to be
made effective as judgments.
Fraud. (See Limitations of Actions.) Obtaining money or prop­
erty under false pretense or by falsely personating another, are punish­
able criminally.
Garnishment. (See Attachment.)
Guaranty Companies. Guaranty Companies are permitted to
become surety upon bonds for all purposes after complying with certain
statutory requirements.
*
Holidays. Defined by statute are: Sundays. January 1st, Jan­
uary 19th, February 22d,. Good Friday, April 26th, June 3d,
July 4th, first Monday in September, second Friday in October,
November 11th, and general election days, Thanksgiving Day, Christ­
mas ana Shrove Tuesday or Mardi Gras in cities where there is a
Carnival Association organized for the purpose of celebrating it
When Christmas or any legal holiday falls on Sunday, the following
Monday is the legal holiday.
Husband and Wife. The husband has full control of wife’s prop­
erty and is not chargeable by the wife with the rents and profits.
Must be joined with wife in sales of her property. Homestead can
only be alienated by their joint deed. Husband not liable for wife’s
antenuptial debts. Has no interest in her separate earnings. Has
action for negligence causing her death; wife’s property not generally
liable for husband’s debts. Wife may sue with respect to separate
estate without husband joining. Infant wife may join husband in
sale of her real estate.
Injunctions. Injunctions are granted without bond upon affi­
davit of inability to give bond, and upon proof satisfactory to the
judge that such affidavit is true, and that the statements of the bill
are true. Injunctions are granted to stay proceedings at law; to
restrain the sale of property under execution or decree obtained against
one other than the owner of the property; to restrain the destruction
of timber by cutting, boxing, or otherwise; to restrain a levy upon
exempt property; to prevent the claiming of exemptions upon property
not legally exempt; to prevent the removal from the State of mort­
gaged personal property, and to abate bawdy houses and gambling
dens.
Insolvency. Statutes suspended by national bankruptcy law.
Insurance Companies. Foreign and domestic, are placed, by
statute, under control of State treasurer. They must annually file
a statement with, and obtain from the State treasurer, a certificate
before being authorized to do business. Certificate may be revoked
if company refuses to pay judgments which have been legally obtained
against it.
Interest. Eight per cent Is allowed on judgments and contracts
where interest is payable but no rate is specified. Contract for more
than 10 per cent is usurious, and all interest forfeited.
Judgments of a court of record are a lien for twenty years upon
real estate of debtor within the county where rendered, and may be
extended to other counties by recording certified transcript of judg­
ment in any county where a lien is sought. Judgments of justice of the
peace may be made a lien upon real estate by recording in the office
of clerk of circuit court.
Liens. In order to secure a lien by lis pendens, a statement must
be filed with the clerk of the circuit court, and recorded by him in a
book kept for that mirpose. setting forth the names of the parties, and
the nature of the relief sought, and the description of the property
upon which it is desired to obtain a lien. Statutory liens are given to
laborers and material-men. Property for which materials are fur­
nished upon which labor has been done, is liable to persons not in
privity with owner to the extent of the unpaid balance of debt due
to contractor. Owner personally liable in like amount. Statutory
liens upon real estate, in order to be available as against subsequent
purchasers or lienors without notice, must be recorded, and suit
must be brought within twelve months after the furnishing of the
material, or the performance of the labor. Liens upon personal
property exist only while possession is retained by lienor.
Limitations of Actions. Civil actions can only be commenced
within the following periods after the cause of action shall have
accrued, to wit: Actions on Florida judgments, actions on con­
tracts or obligations in writing and under seal twenty (20) years;
actions for the recovery of real property, actions on judgments of
courts of the United States or any other state or territory seven (7)
years. On contracts in writing not under seal, five (5) years. On
all actions not herein and specifically mentioned, four (4) years.
Trespass to realty, action upon liability created by statute other
than a penalty of forfeiture, taking, detaining or injury to chattels,
for relief on the ground of fraud, upon contract not founded upon
instrument of writing, including an action open account for goods,
wares and merchandise, three (3) years. Actions for libel, slander,
assault, battery, false imprisonment, or an action by another than the
State upon a statute for a penalty or forfeiture two (2) years. Actions
for wrongful death of a child, actions against railroad companies for
killing cattle, and any action by the State for a statutory penalty or
forfeiture, one (1) year.
Married Women retain their property, real or personal, owned
at marriage or acquired thereafter by gift, devise, descent, or purchase,
and it is not liable for husband’s debts except by her written consent,
executed according to law regulating conveyances of married women.
Husband must join in all sales, transfers, and conveyances of the
wife’s property, except when he has been adjudged insane for more
than a year. Wife may sue concerning her real estate without joining
her husband with her in the suit. Widow takes as dower a life estate
In one-third part of the real estate of which her husband was seized
and possessed at any time during her coverture, and an absolute onethird of all personalty, or may at her option take as an heir equally
with the children of the husband, and if there are no children she will
inherit all the property, real and personal. Wife by petition to proper
court may be decreed a free dealer and as such sue and be sued
Minors. Both sexes attain their legal majority at the age of 21
years. Minors who deposit in savings banks may control, transfer
or withdraw the money so deposited. All other contracts made by
them are voidable, except for necessaries. Marriage removes dis­
ability of non-age of male minor.
Mortgages of real estate must be executed and proved or acknowl­
edged in the same manner as deeds, and they, likewise assignments
thereof, to be effectual against creditors or bona fide purchasers,
must be recorded. Are foreclosed by bill in equity in the circuit
court. Chattel mortgages must be recorded unless property is
delivered to mortgagee and remains in his possession; becomes subject
to debts of mortgagee if left in his possession more than two years
without the mortgage being recorded.
Notaries. Both men and women over twenty-one years may be
appointed notaries public. They must renew commissions every four
years. May administer oaths, take acknowledgments and perform
marriage ceremony. $500 bond is required to be given. Certificate
must show date of expiration of commission.


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2229

Notes and Bills of Exchange. Form and interpretation defined
by statute. No requirement that it shall be made payable at a bank
or any fixed place. 5 per cent damages are allowed on foreign com­
mercial paper protested in this State. Negotiable instruments falling
due upon a holiday (see Holidays) are payable on the next succeeding
business day. Instruments falling due on Saturday are to be pre­
sented for payment on the next succeeding business day, except that
instruments payable on demand may, at the option of the holder, be
presented for payment before noon on Saturday unless that entire
day is a holiday.
Partnership, Limited, and Special. None.
Powers of Attorney. Any contract or conveyance may be made
by power of attorney. A conveyance of a married woman’s real estate
by power of attorney in order to be valid the power of attorney must
be acknowledged by her separate and apart from her husband, and the
acknowledgment must state that she executes it freely and voluntarily,
without compulsion, fear, apprehension, or constraint of or from her
husband. The husband must join either in the deed or powers of
attorney. Powers of attorney for the conveyance of real estate must
be recorded.
Probate Law. (See Administration of Estates.) The county
judge has original jurisdiction of all matters relating to the administra­
tion of estates of decedents.
Protest. (See Notes and Bills of Exchange.)
Records. Records of deeds and mortgages are kept in the office of
the clerks of the several circuit courts, and the original must be recorded
in the county within which the property lies. Wills are required
to be recorded with the several county judges and may be probated
In any county in which the deceased left property, if he dies out of the
State. If death takes piacewwithin the State, then in the county in
which he has had residence, house, or other place of abode at the time
of his death, and if he had none such, then in the county wherein he
died.
Redemption. None, excepting tax sales.
Replevin lies for goods or chattels wrongfully taken, except when
taken for taxes, or under execution, or at suit of defendant when the
property was originally replevied from defendant and has been
delivered to plaintiff, or when plaintiff is not entitled to possession.
Affidavit must be filed, describing property sought to be recovered,
and stating that it was not taken for any tax, fine levied by virtue of
any law of the State, nor seized under execution or attachment against
the goods and chattels of the plaintiff; liable to execution and bond
in double the value of the property with two sureties given before the
writ is issued. Defendant may release the property within three days
by forthcoming bond.
Seal. A scrawl or scroll, printed or written, affixed as a seal to any
written Instrument, is effectual.
Service of Process. Out of circuit court, made by the sheriff or
his deputy. Out of county judge’s or justice of peace courts, may be
made by sheriff or constable. Service in civil actions may be made
either upon the person of the defendant, or by leaving a copy at his
residence with some person over fifteen years of age. Process against
a domestic or foreign corporation may be served upon any officer or
business agent of said corporation residing in Florida. If defendant
corporation is doing or has done business in the State, and the sheriff
makes return that he cannot serve the process because of the corpora­
tion’s failure to elect officers or appoint agents, the court will make an
order requiring defendant to appear and defend upon a rule day after
four weeks’ publication of the order.
Suits. Actions at law are commenced by filing a precipe with the
clerk. Personal service is required except in suits by attachment and
garnishment. Writs are returnable on the next rule day, provided
ten days intervene; if not, then on the rule day in the next succeeding
month. If no appearance of defendant, default is entered forthwith.
Default may be entered for want of plea or other pleading on rule day,
next after appearance day.
Taxes. Taxes are not due and payable until the first day of Novem­
ber, and if not paid by first day of the following April property may be
sold. Owner has two years within which to redeem. Taxes are a
lien from the first day of the year of the assessment, and have the force
and effect of a judgment upon which execution may issue.
Testimony. (See Depositions.)
Transfer of Stock. Stock is transferable in the manner prescribed
in the by-laws. No stock can be transferred until, after all previous
assessments thereon have been fully paid. The transferee succeeds
to all the rights and liabilities of the prior holder.
Warehouse Receipts. Uniform Warehouse Receipts Act adopted,
and effective after July 31st, 1917.
Wills. Any person over twenty-one years old and of sound mind
may make a will. This includes married women. A married woman
may make a will even though she bo a minor. Wills of real estate
must be signed by testator or some person in his presence and by his
express direction, and must have two witnesses who must subscribe
in testator's presence. Wilis of personal property must be in writing
and signed by the testator or some one in his presence, and by his
express direction. Nuncupative wills are good as to personal property.
Revocation may 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
operation of law. Wills must be probated before admittance in evi­
dence. Foreign wills, when duly probated according to laws of the
State, where made and duly recorded in this State, are as effective
as wills executed in this State. Foreign wills are construed according
to law of State where they are executed.

BANKING AND COMMERCIAL LAWS—GEORGIA

2230

SYNOPSIS OF

THE LAWS OF GEORGIA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Randolph, Parker & Fortson, Attorneys at Law
422-430 Healey Building, Atlanta. (See Card in Attorneys List)
Acknowledgments. (See Deeds.
Actions. All distinction between suits at law and in equity is
abolished. Equitable relief can be had in superior courts of law.
Administration of Estates. Letters of administration issue in
the line of preference, first to the husband or wife, second to the next
of kin, relations by consanguinity are preferred to those by affinity.
If there are several of the next of kin in the same degree, preference
is given to that one selected in writing by those most interested in
the estate. If no preference is expressed the ordinary exercises
his discretion. If no application is made by next of kin a creditor
may be appointed, and if no application is made the ordinary will
vest the administration in a county administrator, an officer authorized
by statute for that purpose. Administrators must give bond in double
the value of the estate. Out of the estate of each deceased person,
the first charge, after funeral expenses, is a year’s support for the
family, to be laid off by commissioners according to the condition
and standing of the family. Foreign administrators may act in this
State on giving bond to the ordinary where they qualify. The bonds­
men must be residents of this State. A citizen of any other State may
act as executor of the will of a deceased citizen of this State when he
has the same interest and will give the same bond as in the case of
foreign administrators. Administrators of other States may sue in
this State by filing in the office of the clerk of the court, to which suit
is brought, a properly authenticated copy of their letters of adminis­
tration.
Affidavits. Pleas and defenses in the courts of this State which
are required to be under oath, may be made before any official of
the State or county where the oath is made, who is authorized by
the laws of such State or county to administer oaths. Prima Facie
the official attestation of the officer is evidence that he was author­
ized to act. Any non-resident seeking equitable relief, when called
on to verify proceedings, should be sworn before a commissioner of
this State, or a judge of a court of record where the oath is made,
with the attestation of the clerk of such court that the signature of
the judge is genuine, and that the court over which he presides is a
court of record.
Aliens. The subjects of governments at peace with the United
States and this State are entitled to the rights of citizens of other
States, resident here, in so far as they accord to them the privilege
of purchasing, holding, and conveying real estate.
Appeals. (See Courts.)
Arbitration. Under the law of Georgia disputes and controversies
relating to rights, or property, may be submitted to arbitration.
Arrest. The constitution of Georgia declares that there shall be
no imprisonment for debt. But in an action to recover personal
roperty wrongfully taken or withheld, the defendant will be arrested
y the officer to whom process is directed, and will be committed to
jail unless he shall give bond and good security, or deliver up the
property, or show to the satisfaction of the court that it is without
his power to produce it.
Assignments. Assignments for the benefit of creditors are per­
mitted.
Attachments. A summary process of attachment will lie in
the following cases: 1. Where the debtor resides out of the State.
2. Where he is actually removing, or about to remove, without the
limits of the county. 3. When he absconds. 4. When he resists
a legal arrest. 5. Where he is attempting to remove his property
beyond the limits of this State. 6. Where he has disposed of, or
threatens to conceal, his property, liable for the payment of his debts,
or shall make a fradulent lien thereon to avoid paying his debts.
Attachment will lie to recover the purchase money of an article sold
when the debtor is still in the possession of the property. Attach­
ments may issue upon affidavit by the plaintiff, his agent or attorney,
who must swear that one of the state of facts exists which authorize
an attachment, and also as to the amount of the claim. Bond and
security, in double the amount sworn to, must accompany the affidavit
and the officers require personal security. Non-resident corporations
are liable to attachments, and one non-resident may attach the
property of another non-resident in this State, except for wages
earned without the State.
Banks and Trust Companies. Any number of persons, not less
than five, may form a corporation for the purpose of carrying on the
business of banking. Such corporations, when organized, have power
to have continual succession for thirty years, with right of renewal; to
sue and be sued; to have and use a common seal; to appoint officers
and agents; to make by-laws; to hold, purchase, dispose of and con­
vey such real and personal property as may be necessary for its uses
and business; to discount bills, notes, or other evidences of debt; to
receive and pay out deposits, with or without interest; to receive
special deposits; to deal in foreign exchange; to lend money upon
personal security, or pledges of bonds, stocks, negotiable security; to
take and receive securities by mortgage or otherwise on property real
or personal. The business of the corporation shall be under the
management and control of a board of directors, to consist of not less
than three or more than twenty-five of the members of the corporation,
who must be owners and holders of two or more shares. No bank
shall be chartered without a capital subscription in good faith of at
least 3825,000, of which not less than 60 per cent must be paid in before
filing the declaration with the secretary of State. The corporation
shall be responsible to its creditors to the extent of its capital and
its assets, and each stockholder shall be individually liable for all
debts of the corporation to the extent of his unpaid shares of stock,
and shall be further and additionally liable, equally, and ratably (and
not one for another as sureties) to depositors of said corporation, for
all moneys deposited therein in an amount equal to the face value of
their respective shares. All corporations doing a banking business in
this state shall make to the State bank examiner, under oath, state­
ments showing the resources of the bank or corporation, at the close
of business on any day specified by the bank examiner. No bank shall
loan to its officers any money without good collateral, or other ample
security, and shall not be made until approved by a majority of the
board of directors. No bank or corporation doing banking business
shall reduce its cash in hand, including amount due by banks and
bankers, below 15 per cent of demand deposits. No bank or corpora­
tion doing a banking business shall loan to any one person more than
20 per cent of its capital stock and surplus. Banks may charge same
rate of interest as individuals and the rules of bank discount, that is
to say, taking interest in advance within the lawful rates, have been
held not usurious. No dividend shall be declared by any bank except
from the net profits, nor shall the capital stock be applied to the
purchase of its own shares. In the absence of a contract, expressed
or implied, to the contrary, the bank taking paper for collection is
liable for the defaults of its agents and correspondents to whom the
paper has been entrusted for collection. If any insolvent bank or
banker, with notice of such insolvency, shall receive money or general
deposits, and loss or injury result to such depositor, such banker or
officer in charge of the bank receiving the deposit shall be punished as


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Federal Reserve Bank of St. Louis

prescribed in the penal code. The State has a special lien for all
public money deposited. State banks are authorized to become mem­
bers of the Federal Reserve Bank. By Act of Legislature in 1927, all
trust companies were placed under the supervision of the Superin­
tendent of Banks.
Bills of Lading and Promissory Notes. A bona fide assignee
of a bill of lading of goods will be protected in his title against the
seller’s right of stoppage in transit. It is not necessary to protest
any negotiable instrument upon dishonor, except in case of foreign
bills of exchange. Accomodation endorsers, sureties and endorsers
may be sued in the same county and in the same action with the
maker, drawer or acceptor. Bills of exchange must be accepted in
writing to bind the acceptor. A contract to pay attorney’s fees
cannot be enforced unless the debtor when served ten days before
suit is filed with a written notice of intention to sue with amount
and term of court to which suit will be brought, shall fail to pay such
debt before return day. A waiver of homestead in a promissory
note is a bar to such a claim as against the collection of such note.
Promissory notes and contracts containing reservation of title to
personal property must be executed before a notary public, justice
of the peace, or clerk of a court of record, and must be recorded as
mortgages to hold such property as against third parties or innocent
purchasers.
Checks. (See Notes, etc.) If check or other instrument payable
on demand is not presented for payment within six months from date
thereof, same shall be regarded as stale and payment_ refused by bank
without incurring liability to drawer or maker for nonpayment.
Stop payment orders on checks or drafts must be renewed in writing
every ninety days after original order or notice to bank.
Collaterals. The holder of a note as collateral security for a debt
stands upon the same footing as the purchaser. Property left in
pledge or pawn may be sold at public sale to the highest bidder, upon
thirty days’ notice.
Corporations. Power to create corporations In this State is vested
In the general assembly and the superior courts. Said courts may
grant charters to all corporations except banking, insurance, canal,
navigation, express, and telegraph companies and railroads. The
Secretary of State may grant charters for the corporations above
enumerated in manner prescribed by law in the particular case. A
charter for a private corporation is obtained by a petition to the
superior court, setting forth the object, particular business, corporation
name, capital, place of business, time for which incorporation is desired,
not exceeding twenty years. The petition and order granting the same
constitute the charter. In such corporations the liabilities of the
stockholder is measured by the amount of unpaid stock subscription
due by him. In the charter of many banks heretofore organized
under special act of the General Assembly the rule of personal liability
varies. In some banks stockholders are liable as partners: In others
liability exists under the general rule, viz., to the extent of twice the
amount of stock held, and in some banks liability exists only to the
extent of stock and unpaid subscriptions thereon. The payment of 10
per cent of the capital stock is necessary before commencing business.
General powers of corporations are conferred on all corporations
organized in this state. All corporations organized under the laws
6f the State or doing business therein are required to register with
the Secretary of State and pay a graded license fee. with a minimum
of $10, maximum $600. Voluntary dissolution of a corporation may
be granted by the Superior Court upon petition filed by the Corpor­
ation if authorized by two-thirds of capital stock. Lost stock
certificates must be established by petition to Superior Court.
Costs. A deposit of $10 is required In courts of record from
non-resident plaintiffs before the filing of suits and a deposit of $6 in
all divorce cases.
Courts. The term, jurisdiction, etc., or the several courts of the
State are as follows: JUSTICE COURTS hold monthly sessions and
have civil jurisdiction up to $100. In criminal matters they are
only committing courts. COURTS OF ORDINARY hold their
sessions monthly and have jurisdiction over wills, administration of
estates, and of the conduct of administrators, executors and guardians.
COUNTY COURTS have monthly and quarterly sessions. Their
jurisdiction is limited to controversies not exceeding $300. CITY
COURTS hold four sessions per annum, but the city court of Atlanta
has six terms. The jurisdiction of city courts is unlimited except in
matters of divorce, titles to land and administration of equitable relief.
The municipal court of Atlanta, recently established, replaces the
Justices Courts. Its jurisdictional limit is $2500. It holds one term
eacn month. SUPERIOR COURTS have jurisdiction of all suits
and controversies and have exclusive jurisdiction in equity powers,
divorce cases, and suits involving titles to land, and on the criminal
side exclusive jurisdiction of all cases involving life or imprisonment
in the penitentiary.
Deeds. Deeds to real estate in Georgia must be in writing, and
should be executed in the presence of two witnesses, one of whom shall
be an officer authorized for that purpose. They should be recorded
in the office of the clerk of the superior court of the county where the
land lies, and all deeds, mortgages and other liens, should be recorded
immediately to be available against third parties and innocent pur­
chasers. To authorize the record of a deed to realty, it must be at­
tested by or acknowledged before, if executed out of this State, a
commissioner of deeds for the State of Georgia, notary public, clerk
of a court of record, or a consul, or vice-consul of the United States
(the certificates of these officers under their seals being evidence of
the fact). When the deed is executed out of this State before a
notary public, the attestation should be under his hand and official
seal. In case of acknowledgment it is better, as a matter of precaution,
always to have two witnesses, besides the officer who takes the acknowl­
edgment. If executed in this State, it must be attested by a judge of
a court of record of this State, or a justice of the peace, or notary
ublic, or clerk of the superior court, in the county in which the three
ist mentioned officers respectively hold their appointment, or if subse­
quent to its execution the deed is acknowledged in the presence of
either of the named officers, that fact, certified on the deed by such
officer, shall entitle It to be recorded. (Act of 1893.) Deeds to secure
loans are in more common use than mortgages because they have
been held to pass the absolute title and protect against year’s support
and dower, the equity of redemption remaining in the maker, can not
be levied upon until the debt secured by the deed has been paid
off. Under the law of Georgia these deeds can not be foreclosed as
mortgages, the notes they are given to secure must be sued to judg­
ment, the land must be re-conveyed to the grantor, and then levied
on, but the lien of the judgment relates back to the date of the con­
veyance. In the Federal courts, however, foreclosure can be made
In equity as in the case of ordinary mortgages. Usury will, however,
void such a conveyance, only as to the interest paid on such debt.
Depositions. Testimony is taken in this State by written inter­
rogatories where the witness is a female, or where the witness does
not reside in the county where the suit is pending, or by reason of disa­
bility is unable to attend court. In all counties within this State,
depositions may be taken upon five days’ notice to the other party or
the time and place at which the witness is to be examined. This latter
process cannot be used for taking testimony outside of the State.
Depositions may be taken within or without the state, without com­
mission, before a notary public or any officer authorized to issue
attachments. If within the state or if taken without the state, before
any officer of the state or county where taken, authorized by laws of
Georgia to attest deeds or take acknowledgments, upon 10 days’
notice to opposite party. In taking answers to interrogatories,
which must be authorized by a commission issued for such purpose
by the court here, two commissioners must act. Commissioners must
be disinterested and not related to either party, or connected with
the case: attorneys of the parties are incompetent. None of the parties
to the case, nor their agents or attorneys, can be present when the
commission is executed. The witness can only write his answer Id

E

BANKING AND COMMERCIAL LAWS—GEORGIA
the presence of the commissioners. It is usual, and the better practice,
for one of the commissioners to write the answers of the witness as
they are given. Depositions may be written with the typewriter,
and commissioners may adjourn their sittings from day to day. The
following instructions for taking testimony are important- Instruc­
tions for taking answers to interrogatories: i. insert the commis­
sioners’ names in the commission; any two respectable citizens will
do. 2. State the case as you find it. Then comes the caption, thus:
State of............................
(Here insert the county and State
County of............................ss. where the commission is executed.)
By virtue of a commission from the...................court of...................
county, we have caused the person in said commission named to come
before us, who being duly sworn true answers to make to certain
interrogatories thereto annexed, deposeth and answereth as follows :
(Here insert answers of the witnesses to each interrogatory in order
3. Let the witness sign the answers; then say: “ Answered, sworn to.
and subscribed before us, this... .day of........ ...... .19....” > Then
sign your own names, adding the words “Commissioner (L. S.) ” after
each name. 4. Seal all up together, using two wafers, each com­
missioner writing his name with “Commissioner" across a wafer or
seal. 5. State the case on the package, and address it to the clerk
of the court issuing the commission. 6. If it is to go by mail, get
the postmaster to receipt on the package. “ Received from one of
the commissioners (giving his name) the within interrogatories, to be
forwarded by due course of mail," naming his post-office. Testimony
thus taken must be sent by mail, or by some person specially author­
ized by the commissioner to carry it to the court.
Descent and Distribution of Property. The husband Is the
sole heir to his intestate wife, unless she leave children, and in that
event the husband and children shall inherit per capita, but the
descendants of children shall take per stirpe. If a man die without
children, or the descendants of children, leaving a wife, the wife is
his sole heir. If there are children, or those representing deceased
children, the wife shall take a child's part, unless the shares exceed
five in number, in which case the wife shall have one-fifth part of the
estate. If the wife elects to take her dower, she has no further interest
in the estate. Children stand in the first degree to the intestate, and
inherit equally. Posthumous children stand upon the same footing
with other children. Lineal descendants of children stand in the
place of their deceased parents, and take per stirpe, and not per
capita. Brothers and sisters stand in the second degree and Inherit
if there be no widow or children, or representatives of children. The
half-blood on the paternal side inherit equally with the whole blood.
The father, if living, inherits equally with brothers and sisters, and
stands in the same degree. If there be no father, and the mother
is alive, she shall inherit in the same manner as the father would.
Real estate descends direct to the heirs, and personal estate to the
administrator. But real estate is subject to administration for the
purpose of paying debts, and if necessary, for distribution.
Dower. In this State the wife is entitled to an estate for life in onethird of all lands of which the husband dies seized or possessed at the
time of his death, or to which the husband obtained title in right of
his wife. There is no necessity for renunciation of dower in this State,
and a married woman, on that question, need not join with her hus­
band in conveving land, except in cases where, before 1860, he obtained
real estate belonging to his wife, by virtue of the marital relation.
Executions. Must follow the judgment or decree from which they
issue. They are good for seven years and may be renewed for a like
period by entry nulla bona.
Exemptions and Homesteads. Under the constitution and laws
of Georgia, each head of a family or guardian, or trustee of a family
of minor children, or of an aged or infirm person, or a person having
care and support of dependent females of any age, who is not the
head of a family, shall have exemption of realty, or personalty, or
both, to the aggregate of *1600. The debtor shall have power to waive
or renounce, in writing, his right to the benefit of exemption above
stated, except as to wearing apparel and not exceeding *300 worth
of household and kitchen furniture, and provisions. The homestead
or exemption may be sold by the debtor and his wife, if any, with the
sanction of the judge of the superior court of the county where the
debtor resides, or the land is situated. The proceeds to be re-invested
upon the same uses. A general waiver in writing, of the homestead,
or exemption, is good.
Foreign Corporations. All corporations, except those chartered
and organized under the laws of this State, are held to be foreign
corporations. Such corporations are recognized by comity only;
they are subject to attachment, but have all the rights of replevy and
defense. They cannot exercise any corporate powers or privileges
which by the constitution and laws of Georgia are denied to domestic
corporations or the exercise of which would be contrary to the public
policy of this State. There is otherwise no restriction upon foreign
corporations except in the case of insurance companies and building
and loan associations, which are required to make deposits. All cor­
porations are subject to license fees for doing business and all are liable
for taxes on property owned or held in the State’ (See Corporations.)
Fraud. Contracts, awards, marriages, judgments, sales, and wills
are void when they are brought about and procured by fraud. Prom­
issory notes when procured by fraud are void in the hands of the holder,
who so procures them. The statute of frauds, as of force in Georgia,
requires the following obligations to be in writing, signed by the party,
or his authorized agent, to be binding: 1. A promise by an executor,
administrator, guardian, or trustee, to answer in damages out of his
own estate. 2. A promise to answer for the debt, default, or mis­
carriage of another. 3. An agreement made upon consideration of
marriage, except marriage articles as otherwise provided. 4. Any
contract for the sale of lands, or any interest in or concerning them.
5. Any agreement that is not to be performed in a year. 6. A
promise to revive a debt barred by statute of limitations or bankruptcy.
7. Any contract for the sale of goods, wares, and merchandise,
in existence or not in esse, to the amount of *50 or more, except the
buyer shall accept part of the goods sold and actually receive the same
or give something in earnest to bind the bargain or in part payment.
8. An acceptance of a bill of exchange.
Garnishments. This process may be invoked in any case. Gar­
nishment may be dissolved by giving bond and a third party may
claim a fund held up under garnishment and may release the fund by
giving bond. Any person may claim exemption from garnishment as
to wages to the extent of *1.25 per day and one-half of the remainder.
Holidays. January 1st (New Year’s Day), January 19th (Lee’s
Birthday), February 22nd (Washington’s Birthday), April 26th
(Memorial Day), June 3rd (Jefferson Davis’ Birthday), July 4th
(Independence Day), First Monday In September (Labor Day).
December 25th (Christmas Day), Thanksgiving Day.
Interest. The legal rate of interest in Georgia is 7 per cent, but 8
per cent is legal when contracted for in writing. Parties charging
usury forfeit the excess if usury is set up. Usury has no present
penalty in Georgia, except forfeiture of all interest paid upon the debt.
Judgments create liens from their rendition upon the real or per­
sonal property of the defendant; all judgments at the same term rank
equally, and property sold by a debtor after judgment is obtained
against him is only discharged from the lien of such judgment, if real
estate, after four years’ possession by the vendee, and in cases of per­
sonal property, after two years’. Judgments, whether in the United
States court, or in any State court, obtained in any other county than
that in which the defendant resides have no lien on the property of
the defendant in any other county, unless the execution thereon is
recorded in the county of the defendant's residence. Unless such
execution is recorded as so required within thirty days, its lien will
only date from the time of record. (See Actions.)

Jurisdiction.

(See Title Courts.)


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2231

License. No license is required of commercial travelers. Itinerant
traders must pay license fees.
Liens. Under the laws of Georgia mechanics, material-men, ma­
chinists. employes of steamboats, millwrights, builders of gold mine
machines, stone-cutters, and marble works laborers have special liens
on property improved or worked on. Landlords have a general lien
which takes effect from the levy of distress and a special lien on crops
for rent of land on which they are raised. Common law liens of inn­
keepers, factors, pawmees. carriers, attorneys and others are recog­
nized. Vendor’s lien on land has been abolished. ’Attorneys have a
special lien on papers in their hands and on property recovered in suits
brought by them or successfully defended by them.
Llmitations. Suits on open accounts are barred after four years,
on promissory notes and bills after six years, on instruments under
seal after twenty years, on suits for personal injury after two years.
Seven years’ adverse possession of real estate under color of title, and
twenty years’ adverse possession without color of title, will bar the
claims of ail persons not laboring under disability. Infants have seven
years to assert their rights, after becoming twenty-one years of age.
Married Women. The wife may contract and sue and be sued in
her own name in respect to her separate estate as a femme sole, except
that she can not bind her separate estate by suretyship for any one,
and any promise to pay her husband's debt is void. She cannot
sell to her husband or trustee for any purpose, except by order of the
superior court. A -wife or her heirs may sue and recover from any
person money or property used by her husband to pay his debt where
the creditor takes with notice. All the property of the wife at the
time of marriage, and all she may acquire by gift, inheritance, or pur­
chase, shall vest in and belong to her, and shall not be liable for the
debt, default, or contract of her husband. The wife with her children,
if any, is entitled to twelve months’ support out of the estate of her
deceased husband. The husband is bound to support and maintain
the wife, and his consent is presumed to her agency in the purchase of
necessaries. The wife's separate property is not liable for debts con­
tracted by her as agent, of her husband in the ordinary support of her­
self and children, but by special contract in her own capacity, and
not as agent for her husband, she could bind her separate estate, for
that purpose. A married woman can dispose of her property by will.
Mortgages. Mortgages are only security for debts. They may
embrace property in the mortgagor’s possession, or to which he has
a right of possession. They may cover a stock in bulk, but changing
In specifics, and after acquiring property. No particular form is
necessary, but it must be cleared that the instrument indicates a lien,
describes the property and specifies the debt it secures. Mortgages
on land are not good against dower, and a wife cannot waive her
dower as against this lien. Mortgages must be executed and attested
In the same manner as deeds, except that in mortgages on personal
property, only the official witness is necessary. Mortgages with power
of sale are valid in Georgia. Homestead and exemption may be
waived in the mortgage. All mortgages on personal property must
be recorded in the county where the mortgagor resides and the prop­
erty is located. Mortgages on land must be recorded in the county
where the land is situated.
Notaries. Commercial notaries, male or female, are appointed
for four years by the superior courts, and for the state at large by the
State Librarian. They must have seals and are authorized to attest
deeds and mortgages, and make protest of commercial paper.
Notes and Bills of Exchange. (See Bills of Lading and Promis­
sory Notes.) Promissory notes are negotiable by endorsement of
payee, or holder, notes payable to bearer are transferable by delivery
only. Bonds, specialties, contracts, bills of lading, and warehouse
receipts, are negotiable by endorsement or written assignment in the
same manner as bills of exchange and promissory notes. Endorse­
ments may be limited by express restrictions. Acceptances of bills
must be in writing. Transferers of negotiable instruments warrant
that they are the lawful holders, have the right to sell, that the
instrument is genuine and that prior parties had capacity to contract.
Bona fide purchasers of negotiable paper asking the same for value
before due, and without notice are protected against any defense,
except: 1. Non est factum. 2. Gambling, or immoral or illegal
consideration. 3. Fraud in its procurement by the holder. Maturity
gives notice of dishonor. No days of grace are allowed. Any draft,
bill of exchange or check, drawn upon an institution or person with
which the drawer has not sufficient funds on deposit to meet same,
subjects the drawer to criminal liability.
Probate Law. (See Administration ot Estates. Deeds and Mort­
gages.)
Protests. (See Bills of Lading and Promissory Notes.)
Records. (See Deeds and Mortgages.)
Redemption. There is no redemption in this State under judicial
sales except in case of sale of property under tax execution where
parties may redeem in twelve months if improved land and wild land
within two years.
Replevy. All property seized under attachment, distress, or other
similar process, may be replevied. Property seized under process
and claimed by the third party may be delivered over upon bond and
security for its forthcoming to answer final judgment of decree.
Revision. (See Courts.)
Sales. Sales may be made to pay debts, but any sale of stocks of
goods in bulk is deemed fraudulent unless the seller delivers to the
buyer a list of all creditors and the amount due each. It shall then be
the duty of the buyer to notify the creditors of his purchase. This
notice must be mailed five days before completion of the purchase.
Taxes. Taxes are a lien upon all the property of the debtor, real
or personal, and Its lien is preferred as stated in section herein relating
to distribution of the estates. Sales of property for taxes are con­
ducted in the same manner as other judicial sales. One year in which
to redeem is allowed.
Wills. All persons of full age and sound and disposing memory,
including married women, may make wills, and dispose of their estates.
Wills must be executed in the presence of three witnesses, all of whom
shall be present, must be called by the testator as witnesses, and must
sign, and shall certify that they signed, in the presence of the testator,
and in the presence of each other. Wills must be in writing, except
nuncupative wills. Wills of citizens of other States, where executed
according to the laws of the State, and probated in solemn form in
such State, which dispose of real or personal property in Georgia, may
be admitted to probate in this State, when an exemplified copy of
the will is presented. Wills are probated in the court of ordinary
in the county where the testator resides at the date of his death. All
wills executed out of this State by citizens of this State to dispose
of property in Georgia must be executed according to our law. A
foreign will, executed according to the law of Georgia, will constitute
a muniment of title to real property without being probated in this
State, when recorded on the record of deeds in the county where the
land lies, together with an exemplification of record admitting It to
probate in another State, certified according to the Act of Congress

2232

BANKING AND COMMERCIAL LAWS—IDAHO
SYNOPSIS OF

THE LAWS OF IDAHO
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Richards & Haga, Attorneys at Law, Boise. (See Card
in Attorneys' List.)
Acknowledgments. All conveyances and other Instruments
required to be acknowledged In this State must be acknowledged, if
within the State, before a judge or clerk of a court of record, a county
recorder, a notary public, or a justice of the peace. If without the
State, but within the United States, they must be acknowledged before
any such officer, or a commissioner of deeds for this State, or before
any officer authorized by the laws of this State or Territory to take
such acknowledgment. If without the United States, they must be
acknowledged before a minister or charge d’affairs of the United
States, resident and accredited in the country where the acknowledg­
ment is taken, before a consul of vice-consul, a judge of a court of
record, a duly appointed commissioner, or a notary public. The
certificate of acknowledgment, if made before a justice of the peace,
when used in any county other than that in which he resides, must
be accompanied by a certificate, under the hand and seal of the recorder
of the county in which the justice resides, setting forth that such
justice, at the time of taking such acknowledgment, was authorized
to take the same, and that the recorder is acquainted with his hand­
writing, and believes that the signature is genuine. Proof of the
execution of an instrument may be made though it has not been
acknowledged. Form of married woman’s acknowledgment the
same as that of a single person. (See Conveyances.)
Actions. There is but one form of civil action in this State. As
action is commenced within the meaning of the statute when the
complaint is filed with the clerk. Every action must be prosecuted
in the name of the real party in interest.
Affidavits are used only to verify pleadings, to prove service of
summons, notice, or other paper, to obtain provisional remedy.
Aliens. Anti-Alien bill prohibits aliens not eligible to citizenship
and corporations, a majority of whose members are such aliens, from
acquiring or holding real estate except to the extent and for the pur­
poses prescribed by existing treaties between their countries and the
United States, but permits such aliens to lease lands for not more
than five years for agricultural purposes. Also prohibits such aliens
from acting as guardian or trustee for any real estate and provides
that lands hereafter conveyed to such aliens shall escheat to the State.
(Law 1923, p. 160.)
Arbitration. Persons capable of contracting may submit to
arbitration any controversy which might be the subject of a civil
action between them, except a question of title to real property in
fee or for life.
Arrests. The defendant may be arrested in a case for the recovery
of money or damages on a cause of action arising upon a contract,
express or implied, when the defendant is about to depart from the
State with intent to defraud his creditors; also for money or property
embezzled or fraudulently misplaced by a public officer or any person
in a fiduciary capacity, or when the defendant has been guilty of
fraud in contracting the debt, or in concealing or disposing of personal
property, for the taking or conversion of which the action is brought;
or when the defendant has or is about to remove or dispose of his
property with intent to defraud his creditors.
Assignment for Benefit of Creditors. No assignment for benefit
of creditors shall be valid unless made to a bona-fide resident of this
state or to a corporation duly authorized to do business in this state.
(Laws, 1927, Chap. 209., P. 293.)
Attachments. Attachments may be had in actions on judgments
or contracts express or implied where defendant is a non-resident or
the debt is unsecured. Plaintiff at the time of issuing the summons
or any time afterwards may obtain the attachment upon filing affi­
davit and undertaking and notice of attachment must be published.
Banks and Banking. Idaho has a full and complete law upon
the formation and regulation of banks and the formation of banking
corporations. No banking corporation can have less than five
directors. All banks, other than national banks, are under the super­
vision of the Commissioner of Finance. The banker has a general
lien, dependent upon possession, upon all property in his hands belong­
ing to a customer for the balance due him from such customer in the
course of the business. (Laws 1925, pp. 190-235). (Laws 1927,
Chap. 37, P. 49; Chap. 38, P. 50; Chap. 84, P. 102.)
Bills of Lading. Uniform act recommended by the American
Bar Association.
Blue Sky Law. Idaho has a blue sky law governing corporations,
unincorporated associations and partnerships, domestic or foreign,
dealing in stocks, bonds, and other securities, excepting United States
bonds. State or municipal securities in Idaho, and Idaho real estate
mortgages. This law requires the filing of various statements,
accounts and other papers, and makes it unlawful to do business in
the State without compliance. Administration of Blue Sky Law by
Dept, of Finance. (Compiled Statutes 1919, secs. 5305-5324, Laws
1921, pp. 29, 297, 375; Laws 1923, p. 125; Laws 1925, p. 172, 286.)
Appeal is allowed from ruling of Commissioner of Finance to District
Court, Ada County. (Laws, 1927, Chap. 234, P. 348.)
Collaterals. No statutory regulation.
Community Property. All property acquired after marriage
other than by gift, bequest, devise, or descent, is community property.
The personal earnings of the wife and the income from her separate
property are community property unless she is living apart from her
husband.
Contracts. A written instrument is presumptive evidence of a
consideration.
Conveyances. Real estate is conveyed by instrument in writing,
subscribed by the party or his authorized agent in writing. The
community property can be conveyed or incumbered only by husband
and wife joining in the execution and acknowledgment of the instru­
ment. During the continuance of the marriage the wife has the
management, control, and absolute power of disposition of her separate
property, and may bargain, sell, and convey her real and personal
property, and may enter into any contract with reference to the same,
in the same manner and to the same extent and with like effect as a
married man may in relation to his real and personal property.
Separate property of wife not liable for debts of her husband, wife is
not liable as surety unless the obligation is for her benefit or benefit
of her separate property. An instrument purporting to grant real
property to take effect upon condition precedent, does not pass the
estate upon, the performance of the condition. Such instrument is
merely an executory contract. (See Acknowledgments.)
Corporations. Private corporations may be formed by three (3)
or more persons, at least one of whom must be a bona fide resident
of this State. Such corporation is formed by executing articles
of incorporation, containing; 1. The name of the corporation. 2.
The purpose for which it is formed. 3. The place where its prin­
cipal business is to be transacted. 4. The term for which it is to
exist (not exceeding fifty years). 5. The number of its directors or
trustees not exceeding fifteen, who must be stockholders of the
corporation. 6. The amount of the capital stock, and the number
of shares into which it is divided.
7. The amount actually sub­


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scribed, and by whom. The articles may provide for the election
of one-third of its directors annually. Railroad, wagon road, telegraph
and telepnone corporations must state also in their articles; 1. The
kind of road, telegraph or telephone line intended to be constructed.
2. The estimated length of the road or line. 3. They may provide
in their articles the number of directors which shall constitute a quorum
for the transaction of ousiness, the decision of the majority of such
quorum to be a valid act. 4. Whether meetings of the board shall
be held within or without the State. 5. Whether stockholders shall
be individually liable for debts of corporation. Railroad corporations
must have subscribed, before filing articles, $1,000 per mile; wagon
road corporations, $300 per mile; telegraph corporations, $100 per
mile, and the articles must be verified by affidavit of president, secre­
tary, or treasurer named in articles, that such stock has been sub­
scribed. All articles of incorporation must be filed in the office of the
county recorder, in which the principal place of business is located,
and a copy thereof certified by the recorder, filed with the Secretary
of State. All corporations, except insurance, non-productive mining
companies, co-operative telephone and irrigation companies, must
ay between July 1st and September 1st of each year, a license fee
ased on the amount of authorized capital stock, varying from $10 to
$150; a failure to make payment by September 1st entails a penalty
of $10, and a failure to make payment by November 30th entails a
loss of charter for domestic corporations and a loss of the right to do
business within the State for foreign corporations. Between July 1st
and September 1st, all corporations must make an annual report, and
a failure to do so takes away such exemptions as are mentioned above.
Corporation, Foreign. Foreign corporations desiring to do busi­
ness in this State, may have all the rights and privileges of like domes­
tic corporations, by filing with the secretary of State, and in the
office of the county recorder of the county where the principal place
of business of such corporation is to be conducted, a copy of their
articles of incorporation, and the designation of some person residing
in the county in which such principal place of business is to be located
upon whom process issued by authority of or under any law of this
State may be served. Designation of agent must be filed with Clerk
of District Court instead of County Recorder.
Courts. Terms and Jurisdiction. The judge of the district court
of each of the judicial districts of the State must annually fix the
time for holding the district court in the several counties of his dis­
trict; and he may hold such special terms as he deems proper and
necessary. District courts have original jurisdiction in all civil cases.
Probate courts are held in each county continuously, and have juris­
diction up to $500, in civil cases and concurrent jurisdiction with
justice’s courts in all criminal cases. Justices’ jurisdiction, $300.
Curtesy does not exist.
Days of Grace abolished by statute.
Depositions may be taken before any judge, justice of the peace,
notary public, or United States commissioner, or any other person
agreed upon by the parties, upon notice served upon the opposite
party, stating the court, action, time, and place, and before whom
the same will be taken, or they may be taken upon commission issued
by the judge with interrogatories attached.
Descent and Distribution of Intestate Estates. If a person
dies intestate, surviving spouse takes all the community property,
both real and personal.
On death intestate separate property, both real and personal,
descends as follows: If decedent leaves spouse and one child, each
entitled to one-half of decedent’s separate property; if more than
one child, surviving spouse gets one-third and remainder goes in
equal shares to children of decedent and to the lawful issue of any
deceased child by right of representation, but if no children of decedent
living at his death, remainder goes to all of his lineal descendants,
and if they are in same degree equally, otherwise according to right
of representation; if decedent leaves no surviving spouse but leaves
issue, the whole estate goes to such issue or their descendants if
deceased; if decedent leaves no issue, one-half goes to surviving
spouse and other half to decedent’s father and mother in equal shares,
or if either be dead, the whole goes to the other; if no issue nor hus­
band or wife, estate goes to father and mother; if neither issue, hus­
band, wife, father nor mother, in equal shares to brothers and sisters
of decedent and to their children by right of representation; if spouse
survives decedent and there are neither issue, father nor mother,
whole estate goes to such spouse; if decedent leaves neither issue,
husband, wife, father, mother, brother, nor sister, estate goes to next
of kin in equal degree, computed according to rules of civil law; if
decedent leaves no heirs, property escheats to State.
Dower does not exist. (See Curtesy and Community property).
Employers and Employes. All persons employing mechanics or
laborers in working mines, erecting or repairing buildings, construct­
ing canals, railroads, etc., must make, record, and publish a state­
ment, under oath, setting forth the following; The name of the
owner of the premises where work is being done or upon which it is
intended to begin work; the name of the person or company engaged
in or who contemplates engaging in work upon such premises; the
conditions under which such person or corporation is prosecuting
the work as agent, owner, etc., the principal office of the owner and
the agent in this State; the time and place where payment of laborers
and mechanics will be made. A copy of the statement must be
posted at the place where work is prosecuted.
Employer’s Liability Law. Provides for damages not to exceed
$5,000 for injuries to employes caused by employer's negligence. (See
Workmen’s Compensation Act).
Executions issue at any time within five years after judgment.
The only stay is hy appeal, with supersedeas bond. One year allowed
for redemption from execution and foreclosure sale.
Exemptions. Homestead, not exceeding $5,000, if declaration
of homestead is duly acknowledged and recorded; office furniture
and library, $200; necessary household and kitchen furniture not
exceeding in value $300, and provisions for family for six months;
certain farm animals, etc., with food for six months; and water
right of 160 inches, when actually used in irrigation; also crops grow­
ing or grown on fifty acres of land, leased, owned or possessed by
person cultivating the same; tools or implements of mechanic neces­
sary for his trade of the value of $500; all instruments of surgeons,
etc., also all professional libraries; miner's dwelling of value $500, and
his pipes, cars, etc., of the value of $200; pack animals and equip­
ments, not exceeding $250; team, wagon, etc., of drayman; seventyfive per cent of the personal earnings of a debtor within thirty days
preceding levy, where earnings are necessary for use of family, resid­
ing in this State; the shares held by parties of the Building and Loan
Association to the value of $1,000; provided, such person has no
homestead; all benefits arising out of life insurance, represented by
an annual premium of $250; all property of fire companies. All the
above property may be sold under foreclosure of mortgage, which
includes same or execution issued on judgment for purchase price.
Garnishment. Any personal property or credits in the hands of
another, belonging to the defendant, is subject to garnishment, as
are debts owing to him from another if due.
Guaranty, Title and Trust Co. May furnish abstracts, act as
surety, trustee, fiscal agent. Paid up capital of $25,000 required.
Capital deemed security for the performance of their duties.
Holidays. January 1st. February 22nd, May 30th, June 15th,
(Pioneer Day), Fourth of July, first Monday in September (Labor
Day), October 12th, November 11th, Thanksgiving Day, Christmas.
Sundays and any day on which a general election is held.
Husband and Wife. All the property of the wife owned by her
before marriage, and that acquired afterwards by gift, bequest, or
descent, or that which she shall acquire with the proceeds of her

BANKING AND COMMERCIAL LAWS—ILLINOIS
separate property, shall remain her sole and separate property, to
the same extent and with the same effect as the property of a hus­
band similarly acquired. The wife has the management, control, and
absolute power of disposition of her separate property, to the same
extent and with like effect as a married man may have in relation
to his real and personal property. The separate property of the
wife is not liable for the debts of her husband, but is liable for her
own debts contracted before or after marriage. There is no estate
by courtesy or in dower. Marriage settlements are provided for,
and when properly executed and recorded may vary the statute
governing the relations of husband and wife concerning property
rights. Minors may execute valid marriage settlements
Interest. Where there is no express contract in writing fixing a
definite rate of interest, the rate is 7 per cent per annum. Parties
may agree in writing for interest at a rate not to exceed 10 per cent per
annum. Judgments bear interest at the rate of 7 per cent per annum.
Compound interest allowed if aggregate does not exceed 10 per cent
on principal.
Judgments are liens on all real estate of debtor within the county,
from time of docketing, and may be extended to other counties by
filing transcript in recorder’s office. Lien continues five years.
Justice's court judgments become liens when certified and recorded.
May be revived by issuing execution within limitation.
Liens, Mechanics’. Every person performing labor upon or fur­
nishing materials used in the construction or repair of any mining
claim, building, or other improvement, has a lien thereon. Farm
laborers have lien upon the crop and products thereof, upon which
they bestow labor. All liens must be set forth by a statement in
writing, showing the amount due, the facts connected with the matter,
that there are no credits due on the claim, or offsets against the
same; which statement must be verified by the claimant, and recorded
in the office of the county recorder, if on claim of original contractor,
within ninety days, if on claim of other persons, within sixty days
from the time of the completion of the structure the completion of the
labor, or the furnishing of the materials. Lien must be enforced by
suit within six months, unless credit is given, expires at all events
In two years.
Limitation for Suits. Judgments six years; written contracts
or for real property, five years; contracts or obligations not founded
on writing including open accounts, four years; trespass, trover
replevin and fraud, three years; personal injuries, two years; other
relief, four years. Kevivor: by acknowledgment of debt in writing
or part payment of principal or interest.
Married Women. All property, real or personal, acquired before
marriage and acquired after marriage, by gift, bequest, devise, or
descent, are the wife’s separate property; all other property acquired
after marriage, common property; wife must record inventory of
separate personal property. No estate as tenant by courtesy allowed
the husband nor dower to the wife.
Mines and Mining. (Principal regulations under United States
Statutes.) Quartz locations may be 1,500 feet long and 300 feet on
each side of the middle of lode. Monuments must be established at
all exterior angles of claim. Claim should be tied to some natural
or permanent monument. Copy of location notice must be posted
at discovery within three days after discovery. Notice of location
must be recorded within ninety days after location; within sixty days
ten-foot shaft must be sunk or its equivalent. Location notice must
contain name of locator, name of claim, date of discovery, dimensions,
distance from some permanent, natural, or artificial object; name of
mining district, county, and state. Placer locations made in same
manner as quartz locations, except that within fifteen days after
making location, locator must excavate not less than 100 cubic feet
for purpose of prospecting claim, and must record notice of location
within thirty days after making location.
Mortgages. A real estate mortgage must be acknowledged and
certified, and recorded in like manner as conveyances and deeds
of real property, and is foreclosed by action in the district court.
Chattel Mortgages must be acknowledged as real estate mortgages
and sworn to by the mortgagor that the same is made in good faith
without any design to hinder, delay, or defraud creditors. Must be
filed and a minute record made by recorder, unless mortgagee has
ossession. Survives as long as the debt. Mortgages are discharged
y a satisfaction duly executed and recorded, or by entry on margin of
the record, witnessed by recorder.
Negotiable Instruments. Negotiable instruments are governed
by the rules of the Uniform Negotiable Instrument Law, as recom­
mended by the American Bar Association. (See Laws 1903, p. 380.)
Notaries, when requested, to demand acceptance and payment
of foreign, domestic, and inland bills of exchange or promissory
notes and protest the same for non-acceptance and non-payment;
exercise such other powers and duties as by the law of nations and
commercial usage, or by the laws of any other Territory, State, govern­
ment, or country may be performed by notaries. Attach acknowl­
edgments or proof of powers of attorney; mortgages, deeds, grants,
transfers, and other instruments of writing executed by any person.
Give certificate of such proof or acknowledgment, to take depositions,
affidavits, and administer oaths and affirmations in all matters incident
to duties of the office. To keep a record of all official acts; when
requested, and upon payment of his fees therefore, to make and give
a certified copy of any record in his office; to provide and keep an
official seal, on which must be engraved his name, the words "Notary
Public," and “State of Idaho. To authenticate with his official
seal all official acts. The commission is good throughout the State.
Power of Attorney. Powers of attorney for grants of real estate
and to execute a mortgage must be in writing, subscribed, acknowl­
edged or proved, certified and recorded as other instruments affecting
real property. Powers of attorney which have been recorded must
be revoked by revocation in writing, acknowledged, proved, certified,
and recorded the same as original power.
Probate Law. Probate courts have jurisdiction to open and
receive proof of wills and admit them to proof; to grant letters testa­
mentary and guardianship and revoke same; appoint appraisers of
estates, compel executors, etc., to render accounts; order sale of prop­
erty of estates and minors; order payment of debts due from estates,
order and regulate distribution of property or estates; compel attend­
ance of witnesses and production of all instruments pertaining to
estates and property of minors, and make such orders as may be neces­
sary to exercise all powers conferred. Proceedings of this court are
construed the same as courts of general jurisdiction and like force given
to its records.
Protest. (See Notaries.)
Records. All deeds, mortgages, real and chattel, and instruments
affecting the title to lands must be recorded. Inventory of the
separate personal estate of a married woman when recorded, becomes
prima facie evidence that the property therein enumerated is her
separate property. In case of levy of attachment upon real estate, a
copy of the writ, with a copy of the notice of levy attached thereto,
must be filed in the office of the county recorder.
Redemption. Property may be redeemed within one year after
sale, on paying purchaser amount paid on sale and 10 per cent addi­
tional. Property may be redeemed by successive redemptioners
within sixty days from last redemption, and within one year from
sale, by paying an additional 4 per cent. In cases of tax sales, the
owner may redeem in four years
Replevin. Action of, must be brought within three years from time
it accrues. Plaintiff may sue for the possession without claiming
immediate possession, or he may claim immediate possession at time of
commencing suit or afterward. Affidavit showing that plaintiff is the
owner the detention, the unlawfulness of the detention, etc*, and bond


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2233

with sureties required to obtain immediate Dossession. Defendant
may execute undertaking, with approved sureties, for the retention of
the property, and that it will be forthcoming, subject to the order of
the court in which the action is pending, and thereupon retain the pos­
session of the property involved.
Sales. Uniform sales Act recommended by American Bar Asso­
ciation.
Seals. The distinctions between sealed and unsealed instruments
are abolished. Written contracts presumptive evidence of con­
sideration.
Taxes. All property must be assessed with reference to Its value
at twelve o’clock noon on the second Monday of January of each
year at its full cash value, and the owner or other claimant of the
property shall have the same listed for taxation, and such taxes are
a lien from and after that date. If taxes are not paid by the fourth
Monday in December they become delinquent, but half of the taxes
may be paid before said date and the remaining half before the fourth
Monday in June without delinquency. A penalty of 2 per cent is
added on all delinquent taxes. Delinquency entries are made as of
the first Monday in January in the succeeding year by the tax collector
and have the force and effect of a sale to the county. They bear
interest at the rate of 10 per cent per annum from date and are not
assignable. Redemption may be made within four years from the
date of such entry. Notice of expiration of redemption period must
be given by tax collector not less than three, nor more than five months,
before such expiration in order to entitle county to deed. A statute
applying to taxes for the years 1920-1922 inclusive, permits re­
demption from delinquent taxes on payment of the amount of the
original tax, less penalties with 7 per cent interest and the same statute
permits redemption from tax deed as long as the property is held by
the county upon payment of the amount of the original tax, less
penalties together with 7 per cent interest and anv tax subsequently
assessed with like interest. (The constitutionality of this statute
has been upheld by the Supreme Court of Idaho in the case of Wash­
ington County vs. Paradis, 38 Idaho 364,222, Pac. 775.) (Compiled
Statutes, 1919. Chap. 144, Laws 1921 p. 520, Laws 1923, pp. 49, 236.)
Trust Companies. (See Guaranty Companies.)
Warehouse Receipts. The Uniform Warehouse Receipts Act,
recommended by the American Bar Association.
Wills. Every person over the age of eighteen years, and of sound
mind, may make a will. Every will, other than a nuncupative will,
must be in writing, and every will other than an olographic and a
nuncupative will, must be executed by the testator subscribing thereto
or some person by his direction, which must be done in the presence
of two attesting witnesses, each of whom must sign his name and
state that the testator requested him to witness the testator's signa­
ture, and the testator must also declare in the presence of the wit­
nesses that such is his last will and testament. One-half of com­
munity property may be disposed of by will to his. her or their children,
but not to exceed one-fourth to a parent or parents of either spouse.
Workmen’s Compensation Act. See Chapter 236 Compiled
Statutes 1919, amended Laws 1921, p. 474.)

SYNOPSIS OF

THE LAWS OF ILLINOIS
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Michael J. Stanton, Attorney at Law, 538 S. Clark Street,
Rand McNally Bldg., Chicago. (See Card in Attorney’s List.)
Acknowledgments. Of deeds of real estate and other instruments,
may be taken before the following officers: Within this State before
a master in chancery, notary public, United States commissioner,
county clerk, justice of the peace, any court of record having a seal
or any judge, justice, clerk, or deputy clerk thereof. Without this
State, and within the Uniced States, its territories, dependencies, or
the District of Columbia, before a justice of the peace, notary public,
master in chancery. United States commissioner, commissioner to take
acknowledgments of deeds, mayor of a city, clerk of a county, or
before any judge, justice, clerk or deputy clerk of the supreme, or
district court of the United States, or before any judge, justice, clerk
or deputy clerk, prothonotary, surrogate, or registrar of the supreme,
circuit, superior, district, county, common pleas, probate, orphans or
surrogate court of any of the States, Territories, or dependencies of
the United States. In any dependency of the United States, such
acknowledgement or proof may also be taken or made before any
commissioned officer in the military service of the United States.
When such acknowledgment or proof is made before a notary public.
United States commissioner, or commissioner of deeds, it must be
certified under his seal of office. If taken before a mayor of a city,
it must be certified under the seal of the city; if before a clerk, deputy
clerk, prothonotary, registrar, or surrogate, under the seal of his court;
if before a justice of the peace or a master in chancery, there must be
added a certificate of the proper clerk under the seal of his office
setting forth that such person was a justice of the peace or master in
chancery at the time of taking such acknowledgment or proof. An
acknowledgment or proof of execution may be made in comformity
with the laws of the State, Territory, dependency, or district where it
Is made. Without the United States, before any court of any republic,
dominion, state, kingdom, empire, colony, territory, or dependency
having a seal, or before any judge, justice, or clerk thereof, or before
any mayor or chief officer of any city or town having a seal, or before
a notary public or commissioner of deeds, or any ambassador, minister
or secretary of legation, or consul of the United States, or vice-consul
deputy consul, commercial agent, or consular agent of the United
States. The acknowledgment of a conveyance by a married woman
may be made and certified as if she were single. An acknowledgment
taken by any one interested in the conveyance is void.
Actions. Forms of action and pleadings are substantially as at
common law except in justice courts and the municipal court of Chi­
cago, wherein the practice has been much simplified. A non-resident
is required to give a bond for costs.
Administration of Decedents’ Estates. Letters testamentary
issue to executor named in will, if he be a resident. If there be no
will, or no executor named, or the executor is disqualified, or refuses
to act, administration is granted to surviving husband, or wife, next
of kin. or some competent person. The surviving husband or wife,
or the person nominated by him or her, has preference. If none of
the above named applies within sixty days from death of deceased,
then administration is granted to the public administrator of the proper
county. The administrator must be a resident of the State. A
foreign executor or administrator, within the United States, may
prosecute suits to enforce claims or to sell lands to pay debts. The
Uniform Foreign Probate Act is in force in Illinois. The executor
or administrator must file an inventory within three months from the
date of his appointment and must fix upon a term of court, within
six months from the time he qualifies, for the adjustment of claims,
and publish notice thereof. The claimant should produce and file
his verified claim, which, if not objected to, may be allowed without
further evidence. If objected to, the claim is set down for trial. If
the claim is not presented at the time fixed upon, it may afterwards,
within one year, from the date of the issuance of letters of adminis­
tration, be filed with the clerk, whereupon a summons issues against
the executor or administrator, and the matter is heard at a subsequent

2234

BANKING AND COMMERCIAL LAWS—ILLINOIS

term. All claims not exhibited within one year from granting of
administration are Darred. Claims are classitied as rollows: 1. Fu­
neral expenses and cost of administration. 2. Widow’s or children’s
award. 3. Expenses of last illness, including physician’s bill, and
demands due common laborers or household servants of deceased for
labor. 4. Debts due common-school or township funds. 5. Trust
funds. 6. All other debts. Claims have priority of payment in the
above order.
Affidavits. Within this State oaths and affirmations may be
administered by any judge, justice of the peace, master in chancery,
clerk of a court, police magistrate, or notary public, in their respective
jurisdictions. Without the State the oath or affirmation may be
administered by any officer authorized by the laws of the particular
State, and if such officer has a seal, his certificate under his official
seal is received as prime facie evidence of his authority.
Aliens. The present law went into effect July 1, 1897. It does
not affect the rights of aliens as to personal property, who still take
the same as citizens. Its provisions are subject to treaties made by
the United States with foreign countries. All aliens, subject to cer­
tain restrictions mentioned in the act, may acquire and for a limited
time hold real estate situated in this State by deed, devise, or descent,
and may transfer, devise or encumber it.
Arrest and Bail. No person can be imprisoned for debt unless
upon refusal to deliver up his estate for the benefit of his creditors
in such manner as shall be prescribed by law, or in cases where there
is a strong presumption of fraud.
Assignments. The operation of the Illinois Act relating to
voluntary assignments for the benefit of creditors has been suspended
by the national bankruptcy law.
Attachments. A creditor, resident or non-resident, whose claim
Is due, may bring attachment in a court of record if the amount
exceeds $20, and in justice court for any amount not exceeding $200,
on any of the following grounds: 1. Where the debtor is a non-resi­
dent of this State. 2. Where the debtor conceals himself, or stands
in defiance of an officer so that process can not be served upon him.
3. Where the debtor has departed from this State with the intention
of having his effects removed from this State. 4. Where the debtor
is about to depart from this State with the intention of having his
effects removed from this State. 5. Where the debtor is about to
remove his property from this State to the injury of such creditor.
6. Where the debtor has, within two years preceding the filing of the
affidavit required, fraudulently conveyed or assigned his effects, or a
part thereof, so as to hinder or delay his creditors. 7. Where the
debtor has within two years prior to the filing of such affidavit fraudu­
lently concealed or disposed of his property so as to hinder or delay
his creditors. 8. Where the debtor is about fraudulently to conceal,
assign, or otherwise dispose of his property or effects so as to hinder
or delay his creditors. 9. Where the debt sued for was fraudulently
contracted on the part of the debtor, provided the statements of the
debtor, his agents or attorney, which constitute the fraud, shall have
been reduced to writing, and his signature attached thereto by him­
self, agent, or attorney. The creditor must give bond in double the
amount of the claim. Real estate or personal property may be
attached or funds garnished. The property or funds may be released
by the debtor giving a forthcoming bond, or entering into a recog­
nizance in court to pay the judgment.
Banks and Banking. Under the state constitution stockholders
have a double stock liability, and every bank must make, under oath,
and publish each quarter a full and accurate statement of its affairs.
An Act to revise the law in relation to banks and banking was
passed and approved June 23, 1919. and ratified by referendum at
the election of November 2, 1920. Banks may be formed under the
statute for the purpose of discount and deposit, buying and selling
exchange, and doing a general banking business, except the issuing
of bills to circulate as money; may loan on both personal and real
estate security, and may accept and execute trusts. An association
of persons, as hereinafter set forth may organize a bank by filing a
statement with the Auditor. The minimum number of persons in
such associations is fixed according to populations as follows:
Populations
No. of Persons
10,000 or less............................................................. 5
10,000 to 25,000........................................................ 10
25,000 to 50,000........................................................ 15
50.000 to 100,000......................................................20
Over 100,000............................................................. 25
All such persons must be residents of place where bank is to be
established and in places exceeding 100,000 population, 20 persons of
the association must reside within 3 miles of the proposed location
of the bank.
Accompanying the application must be a statement made before
some officer authorized to acknowledge deeds giving the net financial
worth of each of the members of such associations together with at
least three references as to personal character of each individual
named therein. Whereupon the Auditor issues a permit?.to organize.
The shares shall be $100 each. After the permit to organize is issued
and the stock fully subscribed, the stockholders meet, fix the number
of directors and elect the directors who shall manage the corporation
for one year, or until their successors are elected. At the election of
directors, stockholders have the right of cumulative voting. The
diirectors elect one of their number President, appoint the necessary
Officers and employes, fix their salaries and make by-laws. Each
director shall file with the State Auditor an affidavit that he will
faithfully perform the duties of his office in accordance with law; that
he is the owner in his own right, of ten shares of the stock of the bank,
free from incumbrance. The directors must cause suitable books to
be kept and file with the Auditor a list of stockholders and a copy of
any other records the Auditor may require. Unless another day is
fixed by the by-laws of the Association, the stockholders shall meet
the first Monday in January and elect directors. Vacancies are
filled by vote of two-thirds of the directors. Each director must
own ten shares of the stock of the bank and file a certificate or certif­
icates thereof with the Cashier, to be held during his term as director.
A quorum of the directors must meet once each month. Any officer,
director or employe who shall make a false statement to any official
authorized to examine the affairs of the bank, upon conviction shall
be punished by imprisonment of not less than one or more than ten
years. When the State Auditor is satisfied on examination that the
bank has been duly organized and its stock fully paid, he issues a
certificate that the bank is authorized to commence business, which
certificate must be filed with the Recorder of Deeds of the county In
which the bank is to carry on its business.
The double liability of stockholders applies to all debts contracted
while they hold stock in the bank and is not released by an assignment
of the stock. The President or Cashier must, within thirty days after
organization file with the Recorder of Deeds, a complete list of stock­
holders and their holdings and record thereafter a certificate of all
transfers within ten days after such transfers. A statement of the
resources and liabilities of the bank must be filed with the State Auditor
when required by him. The Auditor must call for such report at least
once each three months. This report must be published in a news­
paper of the city or town where the bank is located.
The State Auditor shall appoint a suitable person, not connected
with the bank, to make a thorough examination of the affairs of each
bank once a year, and report the same to the Auditor. A bank may
hold only such real estate as may be necessary for a banking house or
such as may be acquired in the collection of debts. Real estate
acquired for debts must be disposed of within five years. No bank
may establish branches. The total liability for money borrowed of
any person, corporation or firm (including the members of the firm)
to any banking association shall at no time exceed 15 per cent of the
capital and surplus (not Including undivided profits) of such bank
and shall in no event exceed 30 per cent of the capital stock actually
paid in. Provided, however, that money borrowed within the mean­
ing of the Act shall not include (1) the discount of bills of exchange


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Federal Reserve Bank of St. Louis

drawn in good faith against actually existing values; (2) the discount
of commercial or business paper actually owned by the person negoti­
ating the same; (3) the purchase of, or loaning money in exchange for,
evidences of indebtedness which shall be secured by mortgage or trust
deed upon productive real estate, the value of which, exclusive of
buildings, as ascertained by the oath of two disinterested appraisers,
is double the amount of the principal debt secured; and (4) the pur­
chase of, or loaning money in exchange for, evidences of indebtedness
secured by a written pledge covering live stock, the president, vicepresident or cashier of such bank or association certifying at the time
of such purchase or loan that the value of such live stock is double
the principal debt secured; but in no event shall the liabilities of any
such person, corporation or firm to such bank, exceed the amount
of its capital stock, or 25 per cent of its deposits. Directors are made
personally liable for any violations of this provision to the extent of
the loss occasioned thereby to the bank, its stockholders or any other
party. No loan shall be made to the President, Vice-President or
any employe of the bank until the loan shall have been approved by
the Board of Directors.
The minimum amounts provided for the capital stock of banks
are as follows. In cities, towns and villages that have not exceeding
five thousand inhabitants, $25,000; between five thousand and ten
thousand, $50,000; between ten thousand and fifty thousand, $100,000;
over fifty thousand, $200,000. Upon impairment of the capital stock
the Auditor may require assessments of stockholders or a reduction
of the capital. If he shall deem the bank is being conducted in an
unsafe, fraudulent or illegal manner, he may file a bill for an injunc­
tion dissolution and receiver, but such a bill can be maintained only
in the name of the Auditor. Upon deficiency of assets, the court
may require, in such a suit, that the receiver proceed against the
stockholders on their stock liability. There are provisions for con­
solidation, change of name and voluntary dissolution. All banking
associations heretofore organized by general or special Act, are made
subject to all the provisions of this Act.
After January 1, 1921, no natural person or natural persons, firm
or partnership shall transact the business of banking or the business
of receiving money upon deposit, or shall use the word “ Bank” or
“Banker” in connection with said business; provided, that nothing
herein contained shall be construed to prohibit banks incorporated
under the laws of this State or of the United States from appointing
natural persons as agents to receive deposits of savings in and through
the public schools. Any person violating the Act is guilty of a mis­
demeanor and is subject to a fine not exceeding $1,000, or imprison­
ment in the penitentiary for one year. A banker is liable to fine and
imprisonment if he receives a deposit after he knows the bank has
become insolvent and thereby the depositor suffers loss.
One drawing and delivering a check, draft, or order on a bank with
intent to defraud, and knowing at the time that he had not sufficient
funds in or credit with the bank to pay the check, draft or order in
full is guilty of a misdemeanor and is subject to a fine of $1,000 or
imprisonment for one year, or both.
Bills of Lading. The Uniform Bills of Lading Law is in force in
Illinois.
Blue Sky Law went into effect June 10, 1919, governing the
sale of stocks of corporations. Securities are divided into four classes.
Certain securities can be sold only after a full statement in regard
thereto has been filed with the Secretary of State and a permit issued
The law is stringent. Copies of the law and forms for use thereunder
can be obtained by writing to the office of the Secretary of State,
Springfield, Ill The act is entitled “The Illinois Securities Law.”
Chattel Mortgages. No mortgage, trust deed, or other convey­
ance of personal property having the effect of a mortgage or lien, is
valid against third persons, unless possession be delivered to, and
remain with the grantee; or the instrument provides for the possession
of the property to remain with the grantor, and the instrument is
acknowledged and recorded. The instrument must be acknowledged,
in counties having a population of less than two hundred thousand,
before a justice of the peace, police magistrate, a clerk or deputy clerk
of a municipal court, or county judge of the county in which the mort­
gagor resides; in counties having a population of 200,000, or more,
before a justice of the peace of the town or precinct, or if there be no
justice of the peace, before the clerk or deputy clerk of the municipal
court in the district where the mortgagor resides. If the mortgagor is
a non-resident of the State, the mortgage may be acknowledged before
any officer authorized bv law to take acknowledgments of deeds.
After acknowledgment and within ten days after its execution the
instrument must be filed for record with the recorder of the county
in which the mortgagor resides when the instrument is executed,
or, in case of a non-resident of the State, then in the county where
the property is situated. The mortgage is a valid lien until ninety
days after the maturity of the entire debt or obligation, not exceeding
three years from the filing of the mortgage, and may be renewed for
one year. A note secured by chattel mortgage, must state on its
face that it is so secured, otherwise the mortgage is void. A mortgage
may be released on the margin of the record, or by a release deed.
A mortgage on a stock of goods permitting mortgagor to retain
possession and buy and sell is void as to creditors.
Commercial Paper. (See Negotiable Instruments.)
Consignments. Agreements to sell on consignment are valid.
If a commission merchant, or party selling on commission, converts
the property consigned, or after demand fails to account for the pro­
ceeds, he is subject to fine and imprisonment, and liable for double
the value of the property so convertedConveyances. (See Deeds.)
Corporations. Corporations, except for charitable, educational,
penal, and reformatory purposes, may be organized only under gen­
eral laws. (Const, art. XI, 1.) In all elections of directors every
stockholder has the right to vote, in person or by proxy, for the number
of shares of stock owned by him, or may cumulate his votes. (Const,
art. XI, 13.)
A new act relating to corporations for profit, became in force
July 1, 1919. Corporations may be created under tne act for any
lawful purpose, except for banking, insurance, real estate, brokerage,
the operation of railroads, or the business of loaning money; and may
be organized also, for any one of the following purposes: (1) "building
corporations,” for acquiring, owning, erecting, leasing, or operating
only one building and the site therefor of not more than 80,000 square
feet of land; (2) “agency and loan corporations,” for the purpose of
acting as agents for others in the purchase, sale, renting, and man­
agement of real estate and leasehold interests in the operation of an
Insurance agency business, in the negotiation of loans on real estate
and leasehold interests, of lending money on bonds or notes secured
by mortgages or trust deeds on real estate or leaseholds or on the
mortgage bonds of industrial or railroad companies or of any public
service corporation, or on any State, municipal, or quasi-municipal
bonds, or for the purpose of buying, selling, pledging, mortgaging, or
otherwise dealing in any of such securities; (3) “real estate improve­
ment corporations,” for the purpose of owning land, erecting resi­
dences thereon, and selling or leasing such land or residences, which
land so owned shall be situated only in the county in which the cor­
poration's principal office is located.
Corporations under the act have the following rights, powers, and
privileges: (1) succession; (2) to sue and be sued in its corporate
name; (3) common seal :(4) capital stock, with or without a par value,
and divided into classes; (5) to acquire, and to own, possess, and
enjoy so much real and personal property as may be necessary for
the transaction of the business of such corporation, and to lease,
mortgage, pledge, sell, convey, or transfer the same; (6) to own,
purchase, or otherwise acquire, whether in exchange for the issuance
of its own stock, bonds, or other obligations or otherwise, and to
hold, vote, pledge, or dispose of the stocks, bonds, and other evi­
dences of indebtedness of any corporation, domestic or foreign;
(7) to borrow money at such rate of interest as the corporation may

BANKING AND COMMERCIAL LAWS—ILLINOIS
determine without regard to or restrictions under any usury law of
this 8tate and to mortgage or pledge its property, both real and
personal, to secure the payment thereof; (8) to elect officers, appoint
agents, define their duties and fix their compensations; (9) to lease,
exchange, or sell all of the corporate assets with the consent of twothirds of all of the outstanding capital stock of the corporation at
any annual meeting or any special meeting called for that purpose;
(10) to make by-laws not inconsistent with the laws of this State for
the administration of the business and interests of such corporation;
(11) to conduct business in this State, other States, the District of
Columbia, the Territories, possessions, and dependencies of the
United States and in foreign countries, and to have one or more
offices out of this State, and to hold, purchase, mortgage, and convey
real and personal property outside of this State necessary and requisite
to carry out the object of the corporation; (12) in time of war to
transact any lawful business in aid of the United States in the prose­
cution of war, to make donations to associations and organizations
aiding in war activities, and to loan money to the State or Federal
Government for war purposes; (13) to cease doing business and
to surrender its charter; (14) to have and exercise all the powers
necessary and convenient to carry into effect the purpose for which
such corporation is formed.
The right of a corporation to hold the stocks of other corporations
Is restricted to cases where the effect thereof shall not be in restraint
of trade, to lessen competition, nor to create a monopoly. No cor­
poration, except as specifically provided herein, shall be organized
under this act for the purpose of acquiring or owning real estate. No
corporation under the act shall, except as provided, by any implication
or construction, be deemed to possess the power of carrying on the
business of discounting bills, notes, or other evidences of debt, or
receiving deposits of money, or foreign coins, or buying and selling
bills of exchange, or issuing bills, notes, or other evidences of debt
for circulation as money; but corporations created, or to be created
under the provisions of the act, to buy, sell, or otherwise deal in notes
(not including the discounting of notes), open accounts, and other
similar evidences of debt (not including bills of exchange), shall not
be considered within this prohibition. No corporation shall be
created under this act to deal in commercial paper in the exercise of
the functions of bank discount.
The board of directors must consist of at least three persons, who
shall be stockholders and one of whom must be a resident of this
State. The directors exercise the corporate powers of the corporation.
They may hold meetings and transact business outside of this State.
They elect officers, adopt by-laws, and may appoint an executive
committee. The name of a corporation must indicate that it is a
corporation. If the name of a person or copartnership is used, it
must be followed by the word ‘‘corporation,’’ "incorporated,"
“limited,” or their abbreviations. The corporation must maintain
an office or place of business in this State, with a resident officer or
agent in charge. The Secretary of State must be kept informed of
any change of address of such office or place of business.
Each share of stock when issued shall nave stamped thereon the
amount actually received by the corporation for such stock, either in
cash, property, services rendered, or expenses incurred. Each certi­
ficate must contain a statement of the rights of the holder, whether
the stock has been fully paid, and if not what per cent of it has been
paid. When additional payments are made they must be stamped
on the certificate. Shares without par value shall be represented
by certificates which shall state the number of shares, the name of
the holder and the total number of shares the corporation is author­
ized to issue. All stockholders’ meetings must be held within this
State. Directors are elected at the regular annual meeting of the
stockholders. No stock can be voted which shall have been trans­
ferred on the books of the corporation within ten days prior to such
meeting. No proxy is good after eleven months from its execution,
except where the stock is pledged as security for a debt to the person
bolding the proxy.
Stockholders are liable to creditors, after exhaustion of the assets
of the corporation, only to the amount unpaid on the shares held by
them. Solvent stockholders are liable for two weeks unpaid wages
to employees. An assignee of unpaid stock, with notice, is liable as
though he had been the original subscriber; but only the real owner
is liable.
Foreign Corporations. Each foreign corporation organized for
pecuniary profit (except banking, insurance, building and loan, and
surety companies), not now licensed to do business in this State, shall
before it transacts any business or maintains an office in this State,
procure a certificate of authority therefor from the Secretary of State.
No foreign corporation shall engage or continue in any kind of business
in this State, the transaction of which by domestic corporations is
not permitted by the laws of this State. Each licensed foreign cor­
poration shall keep on file in the office of the Secretary of State a
copy of its charter and all amendments thereto; and also a verified
statement giving the location of its principal office in this State and
the name and address of an agent on whom service of process may be
had. No foreign corporation doing business in this State without a
license shall be permitted to maintain any suit at law or in equity
in any of the courts in this State upon any demand, whether arising
out of contract or tort; and all such corporations shall be liable by
reason thereof to a penalty therefor of not less than $250 nor more
than $1,000, to be recovered in any court of competent jurisdiction,
in a civil action to be begun and prosecuted by the Attorney-General.
Each corporation including railroads, domestic and foreign, other
than homestead associations, building and loan associations, banks,
religious corporations, insurance companies, and corporations not for
ecuniary profit shall make a report in writing to the Secretary of
tate between February 1 and March 1 of each year for the calendar
year ending December 31, preceding, on forms to be prescribed and
furnished by the Secretary of State. Such report shall give the address
of the corporation, officers and directors in this State by street and
number: and also shall disclose such facts as necessary to enable
the Secretary of State to ascertain the proportion of its capital stock
represented by business transacted and property located in this State
and such other information as may be necessary or appropriate in
order to assess the annual license fee or franchise tax.
Fees and Taxes. To the Secretary of State on filing a certificate
of incorporation one-twentieth of 1 per cent upon the amount of
issued capital stock, but in no event less than $20. If the stock has
no par value, for the purpose of fixing the fee the shares shall be
taken and considered at the amount of the consideration received by
the corporation therefor. A like fee upon any subsequent increase.
Upon the filing of a certicate of amendment additional fee of $20. A
foreign corporation, other than an insurance company or building and
loan company, upon obtaining a certificate to do business in Illinois
pays the same fees upon the amount of its capital stock represented
by business transacted and tangible property in Illinois as similar
domestic corporations pay upon incorporation. If the stock of a
foreign corpora tion has no par value, for the purpose of fixing fees and
taxes the shares shall be taken and considered at the amount of the con­
sideration received by the corporation therefor. A domestic corporation
or a foreign corporation licensed to do business in Illinois (except insur­
ance companies), and which are required to make annual reports, must
pay to the Secretary of State an annual license fee or franchise tax
amounting to 5 cents on each $100 of the proportion of its issued capital
stock represented by business transacted and property located in this
State, but in no event shall any such license fee or franchise tax be less
than $10 for any one year. If it appears from the annual report that
the corporation has no tangible property located in this State, and is
transacting no business in this State the following franchise tax must
be paid annually; on capital stock of $50,000 or less, $10; between
$50,000 and $200,000, $15; between $200,000 and $500,000, $20;
between $500,000 and $1,000,000, $50; between $1,000,000 and
$10,000,000, $200; over $10,000,000, $1,000; stock of no par value
shall be taken and considered at the amount of the consideration

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2235

received by the corporation therefor. The franchise tax is payable
on July 1 for the succeeding twelve months. If a corporation fails to
make an annual report within the time required, the Secretary of
State assesses a franchise tax on the best available information, adding
a penalty of 10 per cent on the amount of such assessment. In case
a corporation fails to file an annual report or pay its franchise tax as
required by the act, the Attorney-General may take proceedings to
forfeit its charter. No corporation required to pay a franchise tax
or fee under the laws of this State shall transact any business in this
State or maintain any action at law or suit in equity, unless such corpo­
ration shall have paid such franchise tax or such fees when the same
become due and payable. Corporations are taxed on their tangible
property, real and personal, within the State, and also upon the fair
cash value of their capital stock, including franchises, over and above
the assessed value of their tangible property. Shares of stock of
domestic corporations, whose tangible property or capital stock is
taxed, are not subject to taxation in the hands of owners.
A corporation organized for the purpose of accepting and executing
trusts may be appointed assignee or trustee by deed, and executor,
guardian, or trustee by will, and any court may appoint such com­
pany receiver, assignee, guardian, conservator, executor, adminis­
trator, or other trustee, provided such appointment apply to the
estate only and not to the person. Such corporation is not generally
required to give bond for the performance of a trust, but it is required
to deposit with the Auditor of Public Accounts $200,000 in bonds of
the United States, or in municipal bonds of this State, or real estate
mortgages, and to make a statement, and file reports with the Auditor
annually. There are special acts also as to the organization of cor­
porations not for pecuniary profit, religious corporations, loan asso­
ciations, co-operative associations for profit, insurance, etc. Cor­
porations, foreign or domestic, under certain restrictions, may do a
surety business.
Courts. Supreme court (seven judges); four appellate courts
(intermediate court of appeals, three judges each); circuit courts (in
Cook County also superior court of equal jurisdiction); criminal
courts; county courts (which also exercise probate jurisdiction in
counties having less than 70,000); probate courts (in counties having
over 70,000); municipal courts (Chicago has a municipal court with
a chief justice and thirty-six associate judges and special practice)and justice courts.
I>a.ys of Grace are abolished. (See Negotiable Instruments.)
Deeds conveying land should be signed, sealed, and acknowledged
by grantor. Scrawl seal is sufficient. No subscribing witnesses are
required. Statutory forms of warranty and quit claim deeds and
mortgages are provided. The words employed are (1) conveys and
warrants, (2) conveys and quit claims, (3) mortgages and warrants.
No deed releases the right of homestead unless it contains a clause
substantially as follows: “Hereby releasing and waiving all rights
under and by virtue of the homestead exemption laws of the State
of Illinois," in which case the certificate of acknowledgment should
contain the clause, “including the release and waiver of the right
of homestead.” To release dower the husband or wife must join in
the conveyance, except in the case of a mortgage for purchase money;
otherwise the husband and wife may convey as unmarried. Deeds
and other instruments affecting real estate should be recorded in the
county wher.e the real estate is situated; until so recorded they are
void as to creditors and subsequent purchasers without notice.
Depositions. In chancery cases if the witness resides in the
county, depositions may be taken on five days’ notice; otherwise on
ten days’ notice and one day in addition for every fifty miles. At
law, on like ten days’ notice, where the witness resides in another
county or is about to depart from the state. Where the witness
resides out of the county or state, the deposition may be taken before
a notary public or commissioner on a commission issued on ten days
notice, either on written or oral interrogatories; one day additional
notice of the time and place of taking the deposition being required
for each one hundred miles. If a witness subpoenaed to give his
deposition before a notary public or other officer under commission
issued by a court of this State, or of any other State or country,
declines to appear or testify he may be cited before the circuit court
of the county where he resides and be compelled to appear, testify,
and produce documents.
Descent and Distribution. Property in this State, real and
personal, of residents or non-residents dying intestate, descends and
is distributed as follows: 1. To the children and their descendants
equally, the descendants of a deceased child or grandchild taking
the share of their parents in equal parts. 2. When there is no child,
nor descendant of a child, and no widow or surviving husband, then
to the parents, brothers, and sisters and their descendants equally,
allowing to the parents, if living, a child's part, or the survivor a
double portion; and if there is no parent living, then to the brothers
and sisters and their descendants. 3. AVhen there is a widow or sur­
viving husband, and no child or descendant of a child, one half of
the real estate and the whole of the personal estate goes to the widow
or surviving husband absolutely, and the other half of the real estate
descends as in other cases where there are no children or descendants
of children. 4. When there is a widow or surviving husband, and also
a child or descendants of a child, the widow or surviving husband
receives one-third of the real estate and one-third of the personal
estate absolutely provided dower is waived (see Dower and Curtesy).
5. If there is no child o>- descendant of a child, and no parent, brother,
or sister, or descendant of parent, brother, or sister, and no widow or
surviving husband, the estate descends in equal parts to the next of
kin in equal degree (computing by the Civil Law), there being no
representation among collaterals, except with descendants of brothers
and sisters, and no distinction being made between kindred of the
whole and the half blood. 6. In case of a widow or surviving husband,
and no kindred, the whole estate goes to the widow or surviving
husband.
Dower. A surviving husband has dower (i. e., life interest in a
third part of all lands whereof deceased was seized of an estate of
inheritance during marriage) the same as a widow. Equitable estates,
and land contracted for before death, are subject to dower. If dower
is waived, surviving husband or wife takes one third of the real estate
and personal estate absolutely. Dower may be barred by jointure
assented to; by devise, unless widow or surviving husband renounces
benefit of devise within one year from date of letters of administration;
by divorce as to the party in fault; and by abandonment coupled with
adultery. There is no dower in land as against a purchase-money lien
The husband or wife may renounce any devise under the will of the
other and take if there be children, one third of the real estate, and
one-third of personal estate, or, if no children, one-half of both real
and personal estate absolutely.
Executions. (See Judgments and Executions.)
Executors and Administrators. (See Administration.)
Exemptions. There is a homestead exemption to the extent of
$1000. It may be extinguished by conveyance joined in by husband
and wife properly acknowledged. (See Deeds.) The following
personal property is exempt: 1. The necessary wearing apparel,
Bibles, school books, and family pictures. 2. One hundred dollars
worth of other property, to be selected by the debtor, and in addition,
when the debtor is the head of a family and resides with the same,
$300 worth of other property, to be selected by the debtor. Exemp­
tions can not be claimed out of partnership property. The wages
of an employee being the heed of a family and residing with the same
are exempt from garnishment to the amount of $15 per week.
Frauds, Statute of. The following contracts should be in writing:
1. A promise of an executor or administrator to answer any debt or
damages out of his own estate. 2. A promise to answer for the debt,
default, or miscarriage of another. 3. An agreement made in con­
sideration of marriage. 4. An agreement not to be performed within

2236

BANKING AND COMMERCIAL LAWS—ILLINOIS

one year. o. Any contract, for the sale of lands, or any interest
therein for a longer term than one year. 3. Express trusts relating
to real estate. - a contract to sell or a sale of any goods or cnoses
in action of the value of five hundred dollars or upwards is not enforcible oy action, unless the buyer accepts part of the goods or choses
In action so contracted to be sold or sold, and actually receives the
same, or gives something in earnest to bind the contract, or in part
payment, or unless some note or memorandum in writing of the
contract or sale be signed by the party to be charged or his agent in
that behalf. The act applies to sales for future delivery and to goods
to be obtained or manufactured by the seller, but not to sales of goods
to be manufactured on special order if they be not suitable for sale
to others in the usual course of business.”
Garnishment. The funds or property of a debtor in the possession
of a third party may be garnished in an attachment suit, or in a separate
proceeding after judgment has been obtained against the principal
debtor. (See Attachments.)
Holidays, Legal. January 1st, February 12th, February 22d,
May 30th, July 4th, October 12th, December 25th, first Monday in
September (Labor Day), Thanksgiving Day, and Tuesdays next after
the first Mondavs in November in even years (election days), Novem­
ber 11th, Armistice Day; also every Saturday from 12 o’clock noon
to 12 o’clock midnight. Where holidays fall on Sunday, the day
following.
Husband and Wife. (See Married Women.)
Interest. Extreme contract rate, 7 per cent, except as to corpora^
tions, no limit as to corporations; legal rate, 5 per cent. Interest is
allowed at the legal rate on moneys after they become due on any bond,
bill promissory note, or other instrument in writing; on money loaned
or advanced for the use of another; on money due on the settlement
of an account, from the date of ascertaining the balance; on money
received to the use of another, and retained without the owner’s
knowledge; and on money withheld by an unreasonable and vexa­
tious delay of payment. Judgments or decrees draw interest at 5 per
cent. Penalty for contracting for more than 7 per cent is the loss of
the entire interest, and only the principal sum can be recovered. A
written contract, wherever payable made, in this State between
citizens of this State and of a foreign State (or secured by a mortgage
on lands in this State) is controlled by the law of this State as to the
rate of interest, and the penalty for usury. Usury must be specially
pleaded. In all computations of time, and of interest and discounts,
a month is considered to mean a calendar month, and a year twelve
calendar months, and a day the thirtieth part of a month. A foreign
corporation is subject to the same penalties for usury as a citizen of
this State.
Judgments and Executions. A Judgment is a lien on real
estate situated in the county where the judgment is rendered, for
seven years from its date. If an execution is not issued on a judgment
within one year the judgment ceases to be a lien. A transcript of a
Judgment in another county may be filed and thereupon becomes a
lien upon real estate of the defendant in the county where filed, and
execution may issue thereunder. An execution becomes a lien on
personal property from the time It is delivered to the officer to be
executed. All goods and chattels, including money and stock in a
corporation, may be levied on. Personal property may be sold under
execution on ten days’ notice. A forthcoming bond may be given
by the defendant to the officer. A third party claiming the property
levied on may have a trial as to the right of property in the county
court. Judgments may be confessed by a debtor or his authorized
attorney without process in term time or vacation.
Liens. A landlord has a lien for rent upon crops growing on the
demised premises. Hotel, inn, and boarding-house keepers have a
lien upon baggage and other valuables of guests. Stable-keepers have
a lien upon horses, carriages, and harness for the keeping thereof.
Garage keepers are entitled to liens on automobiles, parts and acces­
sories, for keeping, repairing, materials furnished thereto, and the
expenses bestowed thereon at the request of the owner, or the person
having the possession thereof. Agistei-s and persons keeping, yarding,
and feeding domestic animals have a lien therefor. All persons furnish­
ing supplies, or doing work for any railroad organized under the laws
of this State, necessary for the construction, maintenance, operation,
or repair of the road, have a lien therefor on all the property of the
company, which is good as against mortgages and other liens acquired
after the commencement of the delivery of supplies, or the doing of
the work. Attorneys have liens on all demands, claims, and causes of
action of their clients, after the service of notice upon the adverse
party. Contractors and sub-contractors, including architects, super­
intendents, timekeepers, etc., have liens on any real estate, interest
therein, or improvements thereon, for all kinds of labor and services
performed, and materials furnished for the erection of any building,
or the improvement of any real estate, or thing connected therewith.
A person furnishing material, apparatus, fixtures, machinery or labor
to a contractor for a public improvement, has a lien upon the money,
bonds or warrants due or to become due under such contract: Pro­
vided, the claimant serves upon the municipality a notice of his claim
before payment be made to such contractor; but the lien attaches only
to the portions of the money, bonds, or warrants against which no
voucher or other evidence of indebtedness has been issued and delivered
to the contractor.
Limitations. In personal actions as follows: Libel and slander,
one year; actions for damages for injury to persons, two years (where
death results, one year after death); for false imprisonment, malicious
prosecution, for a statutory penalty, for abduction, seduction, or
criminal conversation, two years; actions on unwritten contracts,
express or implied, on awards of arbitration, to recover damages for
injury to property real or personal, to recover possession of personal
property, or damages for the detention of conversion thereof, and
all civil actions not otherwise provided for, five years; actions on
bonds, promissory notes, bills of exchange, written leases, written
contracts, or other evidences of indebtedness in writing, ten years;
but any payment or new promise to pay in writing renews the right of
action on such instrument for ten years from the time of such payment
or promise, A domestic judgment of a court of record, twenty years;
of a foreign court of record, five years.
Limited Partnership. There are statutory provisions as to the
formation of limited partnerships, but such partnerships are not
common in Illinois.
Married Women. A married woman may sue, be sued, or defend,
as if she were unmarried. When the husband deserts, the wife may
prosecute or defend in his name. The husband has the same right
upon the desertion of the wife. The husband is not liable for the
wife’s torts except in cases where he would be jointly responsible
if the marriage did not exist. The husband or wife is not liable for
the debts of the other incurred before marriage, or for the separate
debts of each after marriage, except that the husband and wife are
jointly and severally liable for the expenses of the family and the
education of their children. The wife may contract as if unmarried,
except that she can not carry on a partnership business without the
consent of her husband, unless he has abandoned her, or is insane,
or confined in the penitentiary. She may receive and use her own
earnings free from the interference of the husband or his creditors.
Neither the husband nor the wife can recover compensation for any
labor performed or services rendered for the other. She may own
in her own right real and personal property obtained by descent,
gift, or purchase, and manage, sell and convev it to the same extent
that the husband can property belonging to him; but no transfer of
personal property between the husband and wife living together is
good as against third persons, unless acknowledged and recorded as
chattel mortgages are required to be. A married woman who without
her fault lives apart from her husband may maintain an action for
reasonable support and maintenance. The wifemay insure her


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husband's lire. She may become surety for the husband. She may
execute a will,it over eighteen years of age, at which age she attains
majority.
Mortgages. Real estate mortgages should be executed and ac­
knowledged the same as deeds. The wife must ioin to bar dower,
except in mortgages for purchase-money. Trust deeds are often
preferred to mortgages because of the facility in the transfer of the
security and. in case of non-resident creditors, in obtaining a release,
the trustee generally being a resident. Real estate mortgages may
be released upon the record or by release deed. Mortgages and
trust deeds must be foreclosed by scire facias or by regular foreclosure
suit in a court of chancery. In extreme cases, where the mortgaged
property is clearly of less value than the debt secured and the mort­
gagor is insolvent, there may be a strict foreclosure which cuts off the
right of redemption, in which case the mortgagee takes the property
in discharge of the debt. In other cases, after decree of foreclosure,
the officer designated to execute the decree delivers a certificate of
sale to the purchaser and files a copy thereof for record. The debtor
may redeem within twelve months, or if no judgment creditor redeems,
then within fifteen months; at the end of which time the purchaser
is entitled to a deed. The holder in due course of a note secured by
a mortgage or trust deed on real estate in Illinois stands in no better
position, so far as the enforcement of his security is concerned, than
the payee or original holder; but this doctrine does not apply to
corporate bonds payable to bearer.
Negotiable Instruments. The “Uniform Negotiable Instru­
ments Law” is in force in Illinois, with the following modifications:
1. All Promissory Notes, Bonds, Due Bills, and other instruments in
writing, whereby one promises or agrees, to pay any sum of money
or articles of personal property, or any sum of money in personal
property, or acknowledges any sum of money or article of personal
property to be due, are negotiable. Except as to Promissory Notes
payable in money due diligence must be used by the holder against
the maker, if he be a resident and solvent, by suit at first term of
Court after maturity, in order to hold the endorser. 2. Accommoda­
tion paper may be issued after maturity, if such was the intention of
the accommodating party. 3. The addition of words of assignment
or guaranty to a blank indorsement does not affect the signature as
an indorsement unless otherwise expressly stated. 4. The defenses of
fraud and circumvention in the execution of negotiable paper, or that
the consideration arose out of a gambling transaction prohibited by
sections 130, 131, and 136 of our Criminal Code, may be asserted as
against a holder in due course. 5. The fact that a depositor makes
his note payable at a bank does not authorize the bank to pay it out
of his funds on deposit. 6. An alteration of an instrument voids it
only when it is material or fraudulent, and made by the holder. 7. A
promise in writing to accept a bill made either before or after it is
drawn is deemed an actual acceptance as to the person receiving
the bill on the faith thereof. 8. Section 137 of the Uniform Negotiable
Instruments Law, providing that the destruction by the drawee of a
bill of exchange left with him for acceptance, or his refusal to return
the same within twenty-four hours after delivery to him or within
such further period as the holder might allow, should be deemed an
acceptance of the bill, is omitted from the Illinois act.
Partnership. The Uniform Partnership Act and the Uniform
Limited Partnership Act are in force in Illinois.
Probate Law. (See Administration of Estates.)
Recording Acts. In counties having a population of less than
60,000, the clerk of the circuit court is ex officio the recorder. In
other counties a “recorder of deeds” is elected. As to what instru­
ments must be recorded, see respective titles.
Replevin. The action lies for personal property wrongfully de­
tained. The action may be brought in any county where the property
is, or where any of the defendants reside or may be found. Before
the execution of the writ, the plaintiff, or some one in his behalf,
must give the officer a bond with sufficient security (a real estate
owner of the county is generally required) in double the value of the
property.
Sales. The Uniform Sales Act has been adopted in Illinois.
Sales In Bulk. Sales of the major part or all of a stock in trade,
chattels or fixtures not in the ordinary course of business, are fraudu­
lent and void as to creditors unless the buyer obtains from the seller
an affiaavit giving a list of his creditors with addresses and amounts
due each, and the buyer, five days before payment, gives notice to
each creditor personally or by mail of the contemplated purchase.
Taxes. All real and personal property in this State, including
moneys, credits, bonds, stocks, investments, shares of stock in cor­
porations (see Corporations), and of banks doing business in this State,
is subject to taxation. Real and personal property is listed with the
County Assessor and assessed between April 1st and June 1st as of
April 1st. The taxes are payable on or before May 1st of the ensuing
ear; after which time penalties are added. There is an Inheritance
'ax Law, the rates varying according to the relationship of the heir,
devisee, or legatee, ana the amount of the legacies, ranging from 2 per
cent in the cases oi widow ana children, as to legacies exceeding $20,000
and not exceeding $50,000 to 30 per cent on amounts bequeathed to
persons not related to the deceased exceeding $100.
Warehouse Receipts. The Uniform Warehouse Receipts Law
Is in force in Illinois.
Wills. Every male over twenty-one, and female over eighteen.
Is competent to make a will. It must be signed by the testator or
by some person in his presence and by his direction, and attested in
his presence at his request by at least two witnesses. The witnesses
should be disinterested. A devise to a witness is void unless the will
be otherwise duly attested by two witnesses exclusive of such person.
Where the subscribing witnesses are dead, secondary evidence of the
execution is admissible. The will is proved, after notice to heirs and
legatees, in the county (or probate) court, and may be contested, in
chancery, within one year after its probate. Wills or authenticated
copies, affecting estate within this State, duly proved outside of this
State, in accordance with the law of the State where executed, accom­
panied with a certificate of the proper officer of that fact, may be
recorded here. Wills executed and published out of this State may
be admitted to probate in any county in this State where the testator
had lands or personal property upon like proof as if executed and pub­
lished here, whether or not the will has been first probated in another
state or county. The Uniform Foreign Probate Act is in force in
Illinois. All originals wills, after being filed, must remain in the office
of the county (or probate) court. Children may be disinherited.

?

BANKING AND COMMERCIAL LAWS—INDIANA

SYNOPSIS OF

THE LAWS OF INDIANA
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Messrs. Pickens, Davidson, Gause and Pickens,
Attorneys at Law, 1300 Fletcher Tr. Bldg., Indianapolis.
(See Card in Attorneys' List.)
Acknowledgments. All conveyances of real estate, except leases
for less than three years, must be in writing, and acknowledged and
recorded at once, or they will not bind third Darties. Within the
State acknowledgments may be taken before a judge or clerk of the
court of record, justice of the peace, auditor recorder, notary public,
member of the general assembly, or mayor of a city, and in other
states and territories before the like officers, or a commissioner of
deeds for Indiana. In any foreign country, before a diplomatic or
consular officer of the United States. If such acknowledgment or
roof is in some other than the English language, or is not attested
y such official seal, it must be accompanied by the certificate of an
officer of the United States, to the effect that it is duly executed accord­
ing to the laws of such foreign country, and that the officer has legal
authority to certify to the proof or acknowledgment and the meaning
of his certificate, if made in a foreign language. Wife must join in
deeds and mortgages of husband’s lands in order to carry her in­
choate one-third interest in husband’s lands. No separate acknowl­
edgment of wife necessary in order to convey her inchoate interest'
In husband's lands, although she must acknowledge. The certifying
officer should state the date when his commission expires.
Actions. The distinctions between law and equity are abolished.
The statute provides but one form of action. Pleadings are governed
by code. Non-resident plaintiffs must give bond to secure costs.
Administration of Estates. Except in Marion County, which
has a separate probate court, the circuit court has exclusive probate
Jurisdiction. In cases of intestacy letters are granted in following
order. 1. Widow or widower. 2. Next of kin. 3. Largest resi­
dent creditor. Letters of administration shall be granted in the
county: l. Where intestate was inhabitant at time of death. 2.
Where, not, being inhabitant of the State he leaves assets. Where
an intestate, not being an inhabitant, shall die out of the State,
leaving assets in several counties, letters may be granted in any one
of the counties in which such assets may be at time of death, and
the administration first lawfully granted shall extend to all of the
estate. Letters cannot issue to a married woman without her hus­
band’s consent in writing. Such consent makes husband jointly liable
with wife. Preference is given to foreign executor of a decedent
not an inhabitant of State, if, before letters are granted in this State
It appears that proper letters have been granted in another state,
except there be resident creditors, legatees and heirs entitled to dis­
tribution, who are inhabitants of the State. No action shall be
brought against an estate for any claim against the decedent; but
the holder thereof, whether the claim be due or not, shall file a suc­
cinct and definite statement thereof in the office of the clerk of the
court, setting forth all credits to which the estate is entitled, and
accompanied by the affidavits of the claimant, his agent, or attorney,
that the claim is just and wholly unpaid. If claim be secured by a
lien, the lien shall be particularly set forth. The claim must be filed
within one year from the notice of the administrator’s appointment,
or claimant must pay costs; and if not filed at least thirty days
before the final settlement of the estate, it shall be barred, except
that heirs, devisees and distributees shall be liable to the extent of
the property received by them, to any unpaid creditor who six months
rior to the final settlement was insane, an infant, or out of the
tate.—suit to be brought within one year of removal of disability,
and if upon claim of non-resident creditor, within two years of the
settlement of the estate.
Affidavits may be taken before any officer qualified to take acknowl­
edgments (see above). Date of expiration of officer’s commission
must be certified by the officer himself.
Aliens. Resident aliens who have declared their intention to
become citizens, may acquire, hold, and enjoy real estate, and may
convey, devise, mortgage, or otherwise encumber the same, in like
manner and with the same effect as citizens of thus State. Aliens,
whether resident or not, may own real estate not exceeding 320 acres
lands in excess of that amount they must convey within five years or
suffer escheat as to such excess.
Arrest for Debt. Defendant in a civil action may be arrested and
held to ball in the amount claimed, at any time before judgment, or
affidavit that he is about to leave the State, taking with him property
subject to execution, with intent to delay or defraud the plaintiff
Bond is required of plaintiff.
Assignments and Insolvency. Any debtor may make a genera!
assignment of all property in trust for benefit of all bona fide creditors
This trust is administered under the direction of the county court.
Dividends are allowed on all claims allowed by the trustee or court.
Debtor is not discharged from his liabilities.
Attachment may issue against the property of a non-resident or
foreign corporation, and against any who may have disposed of, or be
about to dispose of, property, to cheat, hinder or delay creditors, or
against a creditor who conceals himself so that summons can not be
served upon him. An affidavit is required, and a bond to pay dam­
ages if the proceedings be wrongful or oppressive. Creditors who file
under the original attachment, before final judgment, are required
to furnish a like affidavit and bond, and all share pro rata in the
proceeds of the attached property. The wages of a resident house­
holder, not exceeding one month at any one time, are exempt so long as
debtor remains in such employment. It is a misdemeanor to send
claims out of the State to be collected by attachment, or garnishment,
when creditor, debtor, and person owing for earnings intended to
be reached are all within the jurisdiction of the court of this State.
The collection of claims so sent may be enjoined.

S

Banks, Private. Act of 1907 (in effect Dec. 1, 1907), regulating
private banking applies to any one who may use the word “bank"
in his business. Capital must be at least $10,000, not more than onethird of which may be invested in the bank building. All real estate
must be held in name of bank. Bank cannot invest in real estate
except in realizing on doubtful claim. Statement must be filed with
state auditor showing copy of articles of partnership acknowledged
(one of the partners to be resident of the state); location, amount
of capital, net worth of partners to be double capital paid in, names
of officers. List of officers must be posted in bank. Two reports of


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Federal Reserve Bank of St. Louis

2237

resources and liabilities are called for each year by auditor and pub­
lished in local newspaper. Examination of bank made at least
annually by auditor. Special reports can be called for by State
Bank Commissioner whenever necessary. Statement of property held
in trust by bank must be filed in county recorder’s office. Depositors
have lien on assets. Jurisdiction over all persons interested is obtained
by process served on officer in charge. Banks!lean not commence
business until chartered by State Charter Board. Banks cannot
establish branches without first having obtained a charter from the
State Charter Board.
Banks, Savings. Governed by a general statute which regulates
in minute detail the investments and conduct of business. Savings
banks may purchase, hold, and convey real estate for the following
purposes, and none other: For the location of banking house, reid
estate mortgaged to it m good faith for money loaned, or upon which
it shall have purchased a mortgage; real estate taken upon judgments
and decrees on behalf of the bank, or purchased to prevent loss on
claims held by the bank.
Banks, State. Regulated by a general banking law. The state
department of banking appoints a bank examiner who shall not be a
director or other officer of the bank, and shall have power to make
a thorough examination into all the affairs of the bank, and, in doing
so, to examine any of the officers and agents thereof on oath. The
examiner reports in detail the condition of the bank from time to
time. The state banks must make not less than five reports each
year, verified by the president, or other managing agent, which
reports must exhibit the resources and liabilities at the close of busi­
ness on any past day to be by the auditor specified. The report so
required must be published in a newspaper where the bank is estab­
lished, or, if there is no newspaper in the place, then in one pub­
lished nearest thereto in the same county or an adjoining county.
The auditor may require special reports from any bank, whenever
In his judgment, it shall be necessary in order to a full knowledge of
its condition. Any bank failing to make such report shall be subject
to a penalty of $100 for each day that it delays to make and transmit
the same. All banks are empowered to execute trusts and act as
trustees.
On September 30, 1920 all duties, power and authority formerly
vested in the auditor of State as to banks of all kinds building and
loan associations, mortgage guarantee companies, rural loan and savmg
associations, will be lodged in a Banking commissioner appointed by
the Governor and said Commissioner will be at the head of the Depart­
ment of Banking a separate branch of the State Government. All
laws relating to above named companies remain in full force and effect.
“Bank” includes any person or association of persons, whether
incorporated or not, carrying on the business of banking.
“Fiduciary” includes a trustee under any trust, expressed, implied,
resulting or constructive, executor, administrator, guardian, con­
servator, curator, receiver, trustee in bankruptcy, assignee for the
benefit of creditors, partner, agent, officer of a corporation, public
or private, public officer, or any other person acting in a fiduciary
capacity for any person, trust or estate.
“Person” includes a corporation, partnership, or other association,
or two or more persons having a joint or common interest.
“Principal” includes any person to whom a fiduciary as such owes
an obligation.
If a fiduciary in whose name are registered any shares of stock,
bonds or other securities of any corporation, public or private, or
company or other association, or of any trust, transfers the same,
such corporation or company or other association, or any of the
managers of the trust, or its or their transfer agent, is not bound to
inquire whether the fiduciary is committing a breach of his obligation
as fiduciary in making the transfer, or to see to the performance of
the fiduciary obligation, and is liable for registering such transfer
only where registration of the transfer is made with actual knowledge
that the fiduciary is committing a breach of his obligation as fiduciary
in making the transfer, or with knowledge of such facts that the
action in registering the transfer amounts to bad faith.
If any negotiable instrument payable or endorsed to a fiduciary as
such is endorsed by the fiduciary, or if any negotiable instrument
payable or endorsed to his principal is endorsed by a fiduciary em­
powered to endorse such instrument on behalf of his principal, the
endorsee is not bound to inquire whether the fiduciary is committing
a breach of his obligation as fiduciary in endorsing or delivering the
instrument, and is not chargeable with notice that the fiduciary is
committing a breach of his obligation as fiduciary unless he takes the
instrument with actual knowledge of such breach or with knowledge
of such facts that his action in taking the instrument amounts to bad
faith. If, however, such instrument is transferred by the fiduciary
in payment of or as security for a personal debt of the fiduciary to the
actual knowledge of the creditor, or is transferred in any transaction
known by the transferee to be for the personal benefit of the fiduciary,
the creditor or other transferee is liable to the principal if the fiduciary
in fact commits a breach of his obligation as fiduciary in transferring
the instrument.
If a check or other bill of exchange is drawn by a fiduciary as such,
or in the name of his principal by a fiduciary empowered to draw
such instrument in the name of the principal, the payee is not bound
to inquire whether the fiduciary is committing a breach of his obliga­
tion in drawing or delivering the instrument, and is not chargeable
with notice that the fiduciary is committing a breach of his obligation
unless he takes the instrument with actual knowledge of such breach
or with knowledge of such facts that his action in taking the instru­
ment amounts to bad faith. If, however, such instrument is payable
to a personal creditor of the fiduciary and delivered to the creditor
in payment of or as security for a personal debt of the fiduciary, to
the actual knowledge of the creditor, or is drawn and delivered in
any transaction known by the payee to be for the personal benefit of
the fiduciary, the creditor or other payee is liable to the principal if
the fiduciary in fact commits a breach of his obligation in drawing or
delivering the instrument.
If a check or other bill of exchange is drawn by a fiduciary as such,
or in the name of his principal by a fiduciary empowered to draw
such instrument in the name of his principal, payable to the fiduciary
personally, or payable to a third person and by him transferred to
the fiduciary, and is thereafter transferred by the fiduciary, whether
in payment of a personal debt of the fiduciary or otherwise, the
transferee is not bound to inquire whether the fiduciary is committing
a breach of his obligation in transferring the instrument, and is not
chargeable with notice that the fiduciary is committing a breach of
his obligation, unless he takes the instrument with actual knowledge
of such breach or with knowledge of such facts that his action in
taking the instrument amounts to bad faith.
If a deposit is made in a bank to the credit of a fiduciary as such,
the bank is authorized to pay the amount of the deposit or any part
thereof upon the check of the fiduciary, signed with the name in which
such deposit is entered, without being liable to the principal, unless
the bank pays the check with the actual knowledge that the fiduciary
is committing a breach of his obligation in drawing the check or with
knowledge of such facts that its action in paying the check amounts
to bad faith. If, however, such check is payable to the drawee bank
and is delivered to it in payment of or as security for a personal debt
of the fiduciary to it, the bank is liable to the principal if the fiduciary
in fact commits a breach of his obligation in drawing or delivering
the check.

2238

BANKING AND COMMERCIAL LAWS—INDIANA

If a check is drawn upon the account of his principal in a bank by
a fiduciary who is empowered to draw checks upon his principal’s
account, the bank is authorized to pay such check without being
liable to the principal, unless the bank pays the check with actual
knowledge that the fiduciary is committing a breach of his obligation
in drawing such check, or with knowledge of such facts that its action
in paying the check amounts to bad faith. If, however, such a check
is payable to the drawee bank and is delivered to it in payment of or
as security for a personal debt of the fiduciary to it, the bank is liable
to the principal if the fiduciary in fact commits a breach of his obliga­
tion in drawing or delivering the check.
If a fiduciary makes a deposit in a bank to his personal credit of
checks drawn by him upon an account in his own name as fiduciary,
or of checks payable to him as fiduciary, or of checks drawn by him
upon an account in the name of his principal if he is empowered to
draw checks thereon, or of checks payable to his principal and en­
dorsed by him, if he is empowered to endorse such checks, or if he
otherwise makes a deposit of funds held by him as fiduciary, the
bank receiving such deposit is not bound to inquire whether the
fiduciary is committing thereby a breach of his obligation; and the
bank is authorized to pay the amount of the deposit or any part there­
of upon the personal check of the fiduciary without being liable to
the principal, unless the bank receives the deposit or pays the check
with actual knowledge that the fiduciary is committing a breach of
his obligation in making such deposit or in drawing such check, or
with knowledge of such facts that its action in receiving the deposit
or paying the check amounts to bad faith.
When a deposit is made in a bank in the name of two or more
persons as trustees and a check is drawn upon the trust account by
any trustee or trustees authorized by the other trustee or trustees to
draw checks upon the trust account, neither the payee nor other
holder nor the bank is bound to inquire whether it is a breach of trust
to authorize such trustee or trustees to draw checks upon the trust
account, and is not liable unless the circumstances be such that the
action of the payee or other holder or the bank amounts to bad faith.
In any case not provided for in this act, the rules of law and equity.
Including the law merchant and those rules of law and equity relating
to trusts, agency, negotiable instruments and banking, shall continue
to apply. (Acts Feb. 23, 1927, effective May 16, 1927).
Bills of Exchange and Promissory Notes. No grace is allowed.
Damages for protest on bills upon any person at any place out of
this State, but within the United States, 5 per cent on bills drawn
upon any person at any place without the United States, 10 per cent.
The Uniform Negotiable Instrument Law has been in force in Indiana
since 1913. (See Negotiable Instruments.)
Cognovit Notes. The execution, indorsement and procurement of
such notes, and the taking of judgment thereon otherwise than by
action of court upon a hearing after personal service upon the debtor,
are prohibited. (Act March 10, 1927, effective May 16, 1927).
Blue Sky Law (Enacted 1925). The Act known as the Indiana
Securities Law was approved February 27, 1925, and was effective
April 25, 1925. Provides for a Securities Commission. The Secretary
of State shall constitute the Securities Commission with plenary power
to administer the Act.
•‘Security” shall include any note, stock, treasury stock, bond,
debenture, evidence of indebtedness, transferable certificate of interest
or participation, certificate of interest in a profit-sharing agreement,
certificate of interest in an oil, gas, or mining lease, collateral trust
certificate, pre-organization certificate, pre-organization subscription,
beneficial interest in a trust or pretended trust, any transferable share,
investment contract, or beneficial interest in or title to property or
profits.
"Person” shall include a natural person, a corporation created
under the laws of this state or any other state, country, sovereignty,
or subdivision thereof, a partnership, an association, a joint stock
company, a trust, a syndicate, a firm, and any unincorporated organiza­
tion.
"Sale” shall Include every disposition or attempt to dispose of a
security or interest in a security for value.
"Dealer” shall include every person other than an agent, who in
this state engages either for all or part of his time directly or through
an agent in the business of selling any securities. The word “dealer"
shall not include a person having no place of business in this state,
who sells or offers to sell securities exclusively to a promoter or dealer
actually engaged in buying and selling securities.
Issuer” shall mean and include every person who proposes to issue,
has issued, or shall hereafter issue any securities. Any natural person
who acts as a promoter for and on behalt of a corporation to be formed
shall be deemed to be an issuer.
"Agent” shall include every natural person, other than a dealer,
employed or appointed or authorized by a dealer or issuer to sell
securities in any manner in this state.
This Act shall not apply to the following classes of securities:
(a) Any securities issued or guaranteed by the United States or
any territory or insular possession thereof, or by the District of Colum­
bia or by any state or political subdivision thereof, having the power
of taxation or assessment
(b) Any securities issued or guaranteed by any foreign government
with which the United States is at the time of the sale or offer of
sale thereof maintaining diplomatic relations.
(c) Any securities issued by a national bank or by any federal land
bank or joint-stock land bank or national farm loan association under
the provisions of the federal farm loan act of July 17, 1916, or by the
war finance corporation or by any corporation created or acting as
an instrumentality of the government of the United States.
(d) Any securities issued or guaranteed either as to principal.
Interest or dividend by a corporation owning or, operating a railroad
or any other public service utility: Provided, that such corporation
is subject to regulation or supervision as to the issue of its own
securities by a public commission.
(e) Any securities issued by a corporation organized under the
laws of this state exclusively for educational, benevolent, fraternal,
charitable, or reformatory purposes, and not for pecuniary profit
(f) Securities appearing in any list of securities dealt in on the
New York stock exchange, or on any other recognized and responsible
stock exchange which has been previously investigated and approved
by the commission: Provided, however, that the commission may at
any time withdraw its approval of any such stock exchange or security
listed on the New York stock exchange.
(g) Any securities issued by a state bank, trust company, or savings
Institution incorporated under the laws of Indiana, and subject to the
supervision and control of the state government.
(h) Any securities issued by any corporation, organized under the
laws of this state authorized to deal in securities and whose holding
stock is owned solely and in the same proportion by the owners of the
stock of any national bank, or any state bank or trust company
incorporated under the laws of and subject to the examination, super­
vision and control of this state.
(il Negotiable promissory notes or commercial paper.


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Federal Reserve Bank of St. Louis

(j) Capital stock issued by a corporation organized under the laws
of this state where no expense in excess of one per cent of the proceeds
from the sale of its capital stock to be presently issued is incurred
and no compensation or remuneration is paid, or given in connection
with the sale of such capital stock, and provided that no part of the
issue to be disposed of is issued directly or indirectly, in payment
for patents, services, good will, trade-marks, leases, copyrights,
processes, formulae or other intangible assets.
(k) Any securities which, under the laws of this state, are a legal
investment for savings banks or trust funds.
(l) Any securities secured by real estate or leasehold within the
state of Indiana, which is purchased for investment or resale by any
state bank, etc. subject to the supervision of the banking authorities
of the United States or the State of Indiana.
The Act does not apply to the sale of any securities at any judicial,
executor’s, administrator’s, guardian’s, or conservator’s sale, or at
the distribution by a corporation of capital stock, to its stockholders
as a stock dividend.
The transfer or exchange by one corporation to another of their
own securities in connection with a consolidation or merger of such
corporations.
No securities except those exempted shall be sold within this state
unless and until such securities shall have been registered by notifica­
tion or by qualification.
The following securities shall be entitled to registration by notifica­
tion:
Securities issued by a corporation, partnership, association, etc.,
which has been in continuous operation not less than three years, and
which has shown during a period of not less than two years, nor more
than ten years, next prior to the close of its last fiscal year preceding
the offering of such securities, average annual net earnings.
Securities entitled to registration by notification shall be registered
by the filing by any registered dealer interested in the sale thereof in
the office of the Commission of a written statement containing the
following:
N ame of issuer.
Brief description of the securities including the amount of the issue.
Amount of securities to be offered in the state.
Brief statement of the facts which show that the securities fall
within one of the notification classes.
The price at which the securities are to be offered for sale.
The filing of such statement in the office of the Commission and the
payment of the fee shall constitute registration of such security, and
such security when so registered may be sold in this state by any
registered dealer.
Applicants for registration shall pay to the Commission a fee of
one-twentieth of one per cent of the aggregate par value of the securi­
ties to be sold in this state, but in no case shall such fee be less than
$5.00 nor more than $150.00.
All securities required by this Act to be registered before being sold
in this state, and not entitled to registration by notification, shall
be registered only by qualification, as follows:
Applications shall be in writing and sworn to upon prescribed forms.
The applicant shall pay to the Commission a fee of one-twentieth
of one per cent of the aggregate par value of the securities to be sold,
but in no case shall such fee be less than $25.00 nor more than $200.00.
Upon application for registration by qualification, whether made
by an issuer or registered dealer, where the issuer is not domiciled
in this state, there shall be filed with such application the irrevocable
written consent of the issuer that suits and actions growing out of
the violation of any provision or provisions of this Act may be com­
menced against it in the proper court, said consent agreeing that
such service of process shall be taken as valid and binding as if due
service had been made.
The Commission may revoke the registration of any securities upon
cause, and the Commission shall have access to and may compel the
production of all the books and papers of such issuer.
No dealer or agent shall engage in the business of selling securities
until he had been registered and shall also file with his application
a bond in the sum of $5,000, said bond being executed by a surety
company of a net worth of not less than one million dollars.
The fees shall be $25.00 in the case of dealers and $5.00 in the case
of agents.
Registration may be refused such applicant or registrant upon
cause.
Nothing in this Act shall be construed to relieve corporation from
making reports now or hereafter required by law to be made to the
Secretary of State or any other state officer, or paying the fees now or
hereafter to be paid by corporations.
This Act shall not be construed to repeal any law now in force regu­
lating the organization of corporations or the admission of any foreign
corporations.
An appeal may be taken by any person interested from any final
order of the Commission to the Marion Circuit Court by serving upon
the Commission within twenty days from the entry of such order a
written notice of such appeal, and executing a bond in the penal sum
of $500.00.
The Act approved July 26, 1920, and amended March 9, 1921,
entitled An Act to Prevent Fraud in the Sale and Disposition of Stocks,
Bonds, and other Securities and real estate in certain cases in the State
of Indiana," and all acts and parts of acts in conflict herewith are
hereby repealed as of the date of the taking effect of this act.
Chattel Mortgages. Chattel mortgage on personal property left
In the hands of the mortgagor with power to sell must stipulate that
the money received by the sale be applied to the payment of the
mortgage debt, and should be drawn in the form of an absolute bill
of sale, must be acknowledged in the same manner as prescribed for
the acknowledgments of deed, and recorded within ten days from
execution, and in the county where the mortgagor resides. An
assignment of goods, by way of mortgage, where such goods are not
delivered to the mortgagee, shall not be valid against any other person
than the parties thereto, unless such mortgage shall be acknowledged,
and recorded within ten days after the execution thereof. Where
delivery of the chattels to the mortgagee occurs at the time, record
is unnecessary. A mortgagee of household goods can not sell mort­
gaged property except under a judicial proceeding in the circuit or
superior court. For certain restrictions on the lending of money
on mortgage of household goods, see the statutes.
Conveyances. All conveyances, mortgages or leases for more than
three years shall be recorded and take priority according to time of
filing as against good faith purchaser, lessee or mortgagee. Lands in
this State may be taken, held, conveyed, devised, or passed by
descent, by or from any citizen of the United States; or by or from
any alien (see Aliens), with some provided exceptions as to descent

BANKING AND COMMERCIAL LAWS—INDIANA
or devise. Lands which may have come by descent or purchase to
the wife of an alien, may be held, conveyed, devised and passed by
descent by and from her, notwithstanding the fact of her residence
with her husband in a foreign state or country.
Except bona-flae leases for a term not exceeding three years, con­
veyance of lands, or of any Interest therein, must be by deed, sub­
scribed, and acknowledged by the grantor or by his attorney in fact.
The joint deed of a husband and wife is sufficient to pass the lands
of the wife. Except in cases of mortgages, conveyances in trust,
conveyances to husband and wife, and cases of estates vested in
executors or trustees, as such, and so held by them in Joint tenancy,
ail conveyances and devises of lands, or of any interest therein, made
to two or more persons, shall be construed to create estates in com­
mon, and not in joint tenancy, unless it shall be expressed therein
that the grantees or devisees shall hold the same in joint tenancy
and to the survivor of them, or it shall manifestly appear from tenor
of instrument, that it was intended to create an estate in joint tenancy.
A deeu ot release or quit-claim shall pass all the estate which the
grantor could convey by a deed of bargain and sale. If it be the
intention of the grantor to convey any lesser estate it must be so
expressed in the deed. Liability on lineal and collateral warranties
is expressly abolished; a covenant or agreement of any person leaves
heirs and devisees answerable thereon only to the extent of property
descended or devised to them. Any conveyance of land worded—
“A. B. convey# and warrants to C. D. (here describe the premises)
for the sum of (here insert the consideration),” or "A. B. quit-claims
to O. D. (here describe the premises) for the sum 01 ,i.ere insert the
consideration),”—the same being dated, and duly signed and acknowl­
edged by the grantor,—shall, in the one case, be a conveyance in fee
simple to the grantee, his heirs and assigns, with covenant from the
grantor for himself and his heirs and personal representatives that
he is lawfully r sized of the premises, has good right to convey the
same, and gua- antees the quiet possession thereof, that the same are
free from all incumbrances, and that he will warrant and defend the
title of the same against all lawful claims; and shall, in the other
case, be deemed to be a good and sufficient conveyance in quit-claim
to the grantee, his heirs and assigns. Any mortgage of lands worded
—“A. B. mortgages and warrants to C. D. (here describe the premises)
to secure the repayment of (here recite the sum for which the mortgage
Is granted or the note or other evidences of debt, or a description
thereof, sought to be secured, also the date of the repayment”—the
same being dated and duly signed and acknowledged by the grantor
—is a sufficient mortgage to the grantee, his heirs, assigns, executors
and administrators, with warranty from the grantor and his legal
representatives of title perfect and unincumbered in the grantor.
When a deed purports to convey absolutely any estate in lands, but
Is made, or intended to be made, defeasible by force of a deed of
defeasance, bond or other instrument for that purpose, the original
conveyance shall not thereby be defeated or affected as against any
person other than the maker of the defeasance, or his heirs or devisees,
or persons having actual notice thereof, unless the instrument of
defeasance shall have been recorded, according to law, within ninety
days after the date of said deed. Every conveyance or mortgage of
lands, or of any interest therein, and every lease for more than three
years, shall be deemed fraudulent and void as against any subsequent
purchaser, leasee or mortgagee in good faith and for a valuable con­
sideration. unless recorded in the recorder's office of the county where
such lands are situated. (See Acknowledgments, Married Women.)

2239

tary of State showing: articles ot incorporation, business intended
to pursue, capital stock, proportion of i ts business carried on in this
State, amount paid in on capital stock, and answers to other inter­
rogatories propounded by the Secretary of State, and shall pay a
fee of $25 on first $10,000 of assets used in Indiana, $10 for each
additional $10,000. Annual report must be filed in January and fee
of $1 paid. Foreign corporations may not hold real estate except
such as may be necessary for proper carrying on of its legitimate
business.
Courts and Jurisdiction. Circuit Courts in all counties, original
general jurisdiction in all civil causes, original general jurisdiction in
all criminal causes, except in the counties of Lake and Marion in
which there are criminal courts, probate jurisdiction, except in Marion
County which has a probate court, also appellate jurisdiction in
appeals from Justices of Peace, Mayors of cities and Board of County
Commissioners. Superior Courts are established in many counties
with original concurrent jurisdiction with the circuit courts in all
causes except slander and libel, criminal causes, probate matters and
concurrent appellate jurisdiction with circuit courts. Justices of the
Peace in all townships, jurisdiction in civil actions for $200.00 or less,
in the township, also jurisdiction in petty criminal causes. Party
may confass judgment in Justice’s court for $300.00. In actions on
written obligations for money of more than one party Justice has
jurisdiction in township where either party resides and may issue
process to any county in the state for other parties. Supreme Court
is highest appellate court and has no original jurisdiction except in a
few specified cases. Appellate Court has final appellate jurisdiction
in many cases, no original jurisdiction. In some specified classes of
cases defeated party may have cause transferred to Supreme Court.
Both Supreme and Appellate Courts sit only in Indianapolis. Munici­
pal Court, Marion County (Indianapolis), four judges. Original juris­
diction concurrent with Superior and Circuit Courts in all civil cases
founded on contract or tort in which debt or damage or value of prop­
erty sought to be recovered does not exceed $500. Jurisdiction
irrespective of value of property in possessory actions between land­
lord and tenant. Criminal jurisdiction as is now vested in city courts
in cities of first class. Jurisdiction in cases involving violation of
ordinances of cities and towns or other municipalities.
Courts of record within their respective jurisdictions shall have
power to declare rights, status, and other legal relations whether or
not further relief is or could be claimed.
Any person interested under a deed, will, written contract or other
writings constituting a contract, or whose rights, status or other legal
relations are affected by a statute, municipal ordinance, contract or
franchise, may have determined any question of construction or
validity arising under the instrument, statute, ordinance, contract, or
franchise and obtain a declaration of rights, status or other legal
relations thereunder.
A contract may be construed either before or after there has been
a breach thereof.
Amy person interested as or through an executor, administrator,
trustee, guardian or other fiduciary, creditor, devisee, legatee, heir,
next of kin, or cestui que trust, in the administration of a trust, or of
the estate of a decedent, infant, lunatic, or insolvent, may have a
declaration of rights or legal relations in respect thereto.

When either the husband or wife is of unsound mind the party
with the sound mind can either join in the guardian’s deed or make
his separate deed and the effect would be the same as a joint deed of
husband and wife both of whom are of sound mind.

The court may refuse to render or enter a declaratory judgment or
decree where such judgment or decree, if rendered or entered, would
not terminate the uncertainty or controversy giving rise to the pro­
ceeding.

Corporations. Domestic Corporations. Corporations are created
only under general statutes. This is done by means of articles of
association, filed with the secretary of state, and the recorder or clerk
of the county, as provided by statute. The liability of stockholders
varies according to the nature of the corporation in question and the
law under which it was organized. In the corporations which were
in existence November 1, 1851, and which accepted the terms of the
act of March 6, 1883, stockholders are liable, in case of insolvency,
for a sum at least eaual to amount of stock held at time the debt
was contracted. In most corporations, stockholders who have paid
for their stock are not liable for debts of the company. However,
there is liability in some cases for labor and services of employes.
Shares of capital stock in a private corporation are subject to attach­
ment. Annual reports must be filed in June with the Secretary of
State. A new code regulating the incorporation of companies for
profit has been enacted (1921) which supplants many existing statutes
creating such corporations.

All orders, judgments and decrees under this act may be reviewed
as other orders, judgments and decrees. (Act March 5, 1927, in effect
May 16, 1927).

Foreign Corporations. Agents of foreign corporations, before
entering upon the duties of their agency in this State, shall deposit
in the clerk’s office of the county, where they propose doing business,
tho power of attorney, or appointment, under which they act. They
shall also file a duly authenticated order, resolution or other sufficient
authority of the board of directors authorizing citizens or residents
of this State having a demand against such corporation arising out
of any transaction in this State with such agents to maintain a
action in respect to the same in any court of this State of competent
jurisdiction, and authorizing service of process on such agent, and
that such service shall authorize judgment and all other proceedings
against such corporations. By act of 1913, foreign corporations
must file with auditor of State certified copy of vote of directors
consenting to accept service of summons on auditor of State as sum­
mons on corporation. If foreign corporation has no agent within
State, summons may be served on Auditor of State, who shall notify
corporation. Contracts made by such agents shall not be enforced
in any court of this State until there has been a compliance with
the above provisions. Failure of a foreign corporation to comply
with these provisions will not bar—but will abate such action. Any
person who 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,
shall be deemed agent. This provision does not apply, however,
to persons acting as agents for a special or temporary purpose >r for
purposes not within the ordinary business, nor does it aj>ply to
attorneys at law. Any person acting as agent of a foreign corpora­
tion, who shall neglect or refuse to comply with the foregoing pro­
visions, is liable to a flue in any sum not less than $50. In 1879 it
was enacted that: Every foreign corporation now doing or trans­
acting. or that shall hereafter do or transact, any business in this
State, or acquire any right, title or interest in or lion upon real estate
in this State, that shall transfer or cause to be transferred from any
court of this State to any court of the United States, save by regular
course of appeal after trial in the State courts, any action commenced
by or against such corporation in any court of this State by or against
any citizen or resident thereof; or that shall commence in any court
of the United States in this State, on any contract made in this
State, or liability accrued therein, any suit or action against any
citizen or resident of the State of Indiana, shall thereby forfeit all
right and authority to do or transact business in this State, or hold
real property or liens thereon, and all contracts between such cor­
porations and citizens and residents of this State made after the
passage of this act shall be rendered void, as in favor of such cor­
porations, but enforceable by such citizen at his election. The pro­
visions of the foregoing section are made conditions upon, which
such corporations may be authorized to do business, or hold titles to,
or liens on, real estate in this State. By the act of 1901, foreign
corporations are required to designate an agent in this State upon
whom legal process may be served; to have an office where proper
books of account may be kept. By act of 1907 foreign corporations
desiring admission to state must make verified statement to Secre­


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Days of Grace are no longer recognized.
Depositions. Depositions may be taken anywhere in the United
States without a commission, before any judge, justice of the peace
notary public, mayor, or recorder of a city, clerk of a court of record,
or commissioner appointed by the court to take depositions. Per­
son taking deposition must not be of kin to either party or interested
in the action. When taken outside of the United States they shall
be taken pursuant to an order of the court, under a commission, with
such reasonable notice of the time and place of taking the same as
the court shall require, and they shall be certified and returned by
the commissioner in such manner as the court shall direct. Notice
of the taking of the deposition should be served upon the adverse
party or his attorney, specifying the cause, the court or tribunal of
trial, the time and place of taking, and the names of the witnesses.
Reasonable time shall be allowed for the attorney so served to com­
municate with the client, and for travel to the place of taking, exclud­
ing the day of service, of the taking and intervening Sundays. The deonent shall be first sworn according to law. He shall then be examined
y the party producing him, and then by the adverse party, and then by
the officer, if he see cause. The deposition shall be written down by the
officer, by the deponent, or by some disinterested person, in the presence
and under the direction of the officer, and after the same has been
carefully read shall be subscribed by deponent. The following facts
shall be stated in a certificate to be annexed by the officer: I. That
the deponent was sworn according to law. 2. By whom the depo­
sition was written, and if written by deponent or some disinterested
person, that it was written in the presence and under the direction of
the officer- 3. Whether the adverse party attended. 4. The time
and place of taking, and the officer shall sign and attest the certificate,
and seal the same, if he have a seal of office. If he have no seal, his
certificate shall be authenticated by the certificate and seal of the
clerk or prothonotary or any court of record of the county in which
certificate shall be authenticated by the certificate and seal of the
clerk or' prothonotary of any court of record of the county in which
the officer exercises the duties of his office. The officer taking the
deposition shall seal the same in a sufficient envelope and himself,
post, or express, or deliver the same to the clerk, of the court in which
the action is pending, endorsing on the envelope the names of the
parties and of the court and of the witnesses whose depositions are
enclosed. Adjournments may be had from day to day after the
deposition has been begun, and for longer periods, upon written con­
sent of the parties, which written consent must be attached to the
deposition. Adjournments should be noted at the place in the
deposition when they occur. A narrative form may be used. A
witness identifying a written instrument should attach it to his
deposition, making it a part of his answer.
Descent. The real and personal property of any intestate shall
descend to his or her children equally; and posthumous children
inherit equally with those born before the death of the ancestor.
Children of deceased children take the share which would have
descended to the father or mother and grandchildren, and more
remote descendants, and other relatives, lineal and collateral, inherit
by the same rule, excepting that if the heirs are all grandchildren
they inherit equally. Where there are no heirs as aforesaid, onehalf of the estate goes to the father and mother as joint tenants, or
to the survivor, and the other half to the brothers and sisters, and
to the descendants of such as are dead, as tenants in common. If
there be neither father nor mother, the brothers and sisters, and
the other descendants, take the estate as tenants in common; or.
per contra, the father and mother as joint tenants of the survivor.
Kindred of the half-blood inherit equally with those of the wholeblood in property purchased by the ancestor; otherwise, as to property
acquired by gift, devise, or descent. Illegitimate children inherit
from the mother same as if they were legitimate, and vice versa.

2240

BANKING AND COMMERCIAL LAWS—INDIANA

Tenancy by the curtesy ana dower are abolished, and widows take
one-third of the real estate in fee simple, unless the property is worth
over $10,000, in which case, as against creditors, she takes one-fourth
only; and where the real estate is worth over $20,000, oue-flfth only
as against creditors, but as against other heirs she takes one-third
In fee simple, regardless of value, except where there is but one
child. In which case each inherits one-half. A second or subsequent
wife, however, takes only a life estate in her husband's lands, If there
be a child or children by a previous marriage, and none by such
widow. Other special provisions of the statute are too extensive to
set out. The estate of a person dying intestate without kindred
capable of inheriting will escheat to the State for the support of the
common schools.
Dower. (See Married Women.)
Executions may issue at any time within ten years after judg­
ment and are returnable in ISO days. From a court of record may
Issue to any county in the State. Are a lien on personal property
within the county from the time they are placed in hands of officer.
The liens upon personal property attach in the order in which the
officer receives them. When levy is upon real estate the dates of
the judgment control the right to participate in the proceeds, and
they must be applied according to their priority. Personal property
taken in execution may be left with execution defendant by the
giving to the officer of a delivery bond with sufficient surety; debtor
may, by giving sufficient freehold sureties, have a stay of execution
on any sum exceeding $100, for six months. Where the sum is less
than $100, the stay Is not so long, varying with amount of judgment.
Lands sold under execution may be redeemed within one year by
the owner, mortgagee or person having a lien thereon, the owner
retaining possession during the redemption year and being liable for
reasonable rents and profits in case of failure to redeem.
Exemptions. Property up to $600 is exempt in suits on contract
where debtor is a resident householder. Resident householder is
entitled to exemption as well when in transit with his family and
property as when permanently settled. The debtor must file a sched­
ule of all of his property, and select the property claimed, which is
then appraised. Contract waiving exemption is void. Pension
money in transit to pensioner is exempt, but when received by him
and invested in other property is no more so than any other property.
One month’s wages also exempt if the debtor is still employed.
Fraud. Assignments, in writing or otherwise, of any property
made or suffered with intent to hinder, or defraud are void as to the
persons defrauded. The question of fraudulent intent is a question
of fact.
Frauds—Statute of. The following contracts, if enforceable In court,
must be in writing and signed by the party to be charged: 1. To
charge an executor or administrator, upon any special promise, to
answer damages out of his own estate. 2. To charge any person,
upon any special promise, to answer for the debt, default, or mis­
carriage of another. 3. To charge any person, upon any agreement
or promise, made in consideration of marriage. 4. Upon any con­
tract for the sale of land (except loan not exceeding the term of three
years). 5. Upon any agreement not to be performed within one
year from the making thereof. 6. Sale of goods exceeding $50 in
value, unless part payment or part delivery be made. 7. Upon
any representation made concerning the character, conduct, credit,
ability, trade or dealings of any other person.
Garnishment. (See Attachment.) Garnishment is a remedy in
aid of attachment. Upon any personal action arising out of contract
any person may be summoned as a garnishee defendant upon an
affidavit that official has good reason to believe that any person
named has property of the defendant in his possession or under his
control, or that he is indebted to the defendant, or has control or
agency of money, property, credits, or effects; that he has any share
or interest in the stock of any association or corporation, and all
money or property in the hands of the garnishee defendant is bound
from the time the summons is served upon him. Resident house­
holders are entitled to an exemption of $600 in garnishment pro­
ceedings, as in all other cases. Upon service of execution on any
individual, said execution shall become a lien. Wages of non-residents,
to the amount of $25, and of resident householders to the extent of
one month’s wages, are exempt from execution so long as the defendant
remains in the employ of the garnishee. Indiana claims can not legally
be sent or taken out of the State for prosecution, and suits instituted
elsewhere in violation of this prohibition may be enjoined and the
offender be criminally prosecuted.
Holidays. (See Legal Holidays.)
Husband and Wife. (See Married Women.)
Inheritance Tax. (See Taxes.)
Interest. The legal rate is 6 per cent, but interest may be taken
In advance. No agreement to pay a higher rate is valid unless the
same be in writing, and in such case it is not lawful to contract for
more than 8 per cent. When a greater rate is contracted for. the
contract is void as to all interest In excess of 6 per cent, is usurious
and illegal, and the excess may be recouped by the debtor whenever
It has been reserved or paid before the bringing of the suit. Interest
on judgments runs from the date of the verdict or finding, at the
rate specified in the original contract, not exceeding 6 per cent, and
If no contract has been made 6 per cent is allowed.
Judgments of courts of record are a lien upon all real estate of
defendant within the county for ten years. Judgment may be
obtained at the first, term of the court, after process has been served
on debtor ten days prior to the first day thereof. Judgment in justice
court becomes a lien on real estate of judgment, defendant t rom time
of filing a transcript in office of the clerk of circuit court. A certified
copy of any judgment rendered by the District Court of the United
States for district of Indiana may be filed with the county clerk.
Legal Holidays as to commercial paper are as follows: The first
day of the week, commonly called Sunday; the 1st day of January;
the 4th day of July; the 25th day of December; any day appointed
by the president or governor for public fasting or thanksgiving; 12th
day of February; 22d day of February; 30th day of May; first Mon­
day of September; 12th day of October: and any election day; when
any holiday (other than Sunday) comes on Sunday the Monday next
succeeding shall be the legal holiday; Saturday afternoon is a legal
half-holiday in the city of Indianapolis and may be made so by act
of bankers in other cities of over 35.000 population.
Liens. Liens are granted by statute to attorneys; to persons
holding claims against watercraft on account of supplies furnished or
work done; also for demands for damages arising out of freight con­
tracts. or for willfulness or negligence of the master, owner, or agent,
or out of any contract relating to transportation, and for injuries to
persons or property; also to employes of any corporation as against
any of its corporate property or earnings for labor done; also to
keepers of livery stables and all persons engaged in feeding stock, for
the feed and care bestowed upon the same, also to blacksmiths; also to
contractors, sub-contractors, mechanics, journeymen, laborers, and all
persons performing labor or furnishing material or machinery for
erecting, laboring, repairing or removing any house, mill, manufactory
or other building, bridge, reservoir, system of water-works, or other
structure, known as a mechanic’s lien; also to bailees and tradesmen
for their valid and reasonable charges in the construction, repair,
or alteration of any article of value; also to the bailee or keeper of
personal property for any feed or care bestowed by him upon such
property; special lien for storage or repair of motor vehicles; also to


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forwarding and commission merchants on goods which may have
remained in store for one year or more- also to all persons, firms
and corporations engaged in the business of storing, warehousing and
forwarding, goods remaining in possession of such person, firm or
corporation for more than six months may be sold at public auction
to pay amount of lien; also to landlords upon crops. Persons storing,
furnishing supplies or repairing a motor vehicle or garage owners
have lien on motor vehicle which can be foreclosed within one year
from failure of owner to pay charges. Judgments rendered in any
county in the State are a lien upon the real estate situated in such
county for a period of ten years from the rendition thereof, and judg­
ments rendered in the federal courts are a lien upon any real estate
in the State for the same period. Provision is made by statute, how­
ever, for the filing in the county where the real estate is situated of a
transcript of any judgment rendered in the United States courts.
The office of the clerk of the circuit court in each county contains a
public record known as the lis pendens record, in which notice of the
filing of complaints to enforce liens are required to be recorded, and
also in cases where real estate is seized by attachment or execution.
Unless so recorded the bringing suits does not operate as a constructive
notice.
Limitations to Suits. Actions for injury to person and cnaracter,
and for statutory penalty or forfeiture, two years; against public
officers relating to their official duties, and on public improvement
assessments, five years; open accounts and contracts not in writing,
for use, rents and profits of real estate, injuries to and detention of
property, recovery of personal property and relief against frauds, six
years; upon promissory notes, bills of exchange and other written
contracts for payment of money, ten years; actions not limited by
statute, fifteen years; other written contracts, judgments of courts of
record and real actions, twenty years. Revivor: part payment or
new promise in writing. Except in favor of sureties, the statute of
limitations does not run against the State.
Married Women control their real and personal property. The
husband is liable for the wife’s debts contracted before marriage to
the extent of the personal property he may receive from her, and no
further, and her lands are liable for such indebtedness. A married
woman may devise her separate estate; may sell and transfer her separ­
ate personal property; carry on any business, labor, or service, and
receive the earnings accruing therefrom; enter into any contract in
regard to her separate personal estate business, labor, or service, and
her separate estate, real and personal, be liable therefor, the same as a
femme sole; and her husband is not liable for such debts, nor for
indebtedness created by the wife lor improvement of her separate
real estate. She can make leases of real estate for terms of three
years or less, and execute mortgages to secure purchase money, with­
out husband joining. She is bound by covenants of title in convey­
ances of her separate real estate. Her deed conveying her real estate,
her husband not joining, is absolutely void. She may sue as a femme
sole for any damage to her person or character. She is bound in
like manner as principal on her official bond. Disability as to surety­
ship has been abolished, therefore, in making loans to married women
it is not necessary for her to make an affidavit that the money used
is for her own benefit. She is entitled to hold as exempt from execu­
tion in any suit on contract property to the amount of $600. A widow
takes one-third of her deceased husband’s real estate in fee, and free
from all demands of creditors, where the estate does not exceed $10,000;
one-fourth, if under $20,000, and one-fifth, if above that amount.
She also takes a child’s interest in the personality where the number
of children does not exceed two, and where there are more than two,
her interest shall not be less than one-third of the wnole of personalty
after payment of debts, and in all cases takes $500 without accounting,
and may occupy the dwelling of forty acres of her husband’s land for
a year, rent free. But the one-third of her real estate which the
widow takes in fee, can not, upon her marrying again, be effectively
conveyed or mortgaged by her, if there be a child or children, or their
descendants, alive by the previous marriage. Real estate which
husband and wife hold by title made to them as husband and wife,
is held as an estate by entirety; it cannot be taken for the debt of
either; is not subject to the lien of a judgment against either, except
in case of the death of either or upon divorce granted, when the estate
is destroyed and becomes subject to levy and sale; and a mortgage
thereof by them both for a debt of the husband has no legal validity.
Mortgages. (See Conveyances.)
Negotiable Instruments are defined by Chapter 63 of the Acts
of 1913 which is the Uniform Negotiable Instrument Act. Section 1
provides that an instrument to be negotiable must conform to the
following requirements:
1. It must be in writing and signed by the maker or drawer.
2. Must contain an unconditional promise or order to pay a cer­
tain sum in money.
3. Must be payable on demand, or at a fixed or determinable
future time.
4. Must be payable to order or to bearer.
5. Where the instrument is addressed to a drawee, he must be
named or otherwise indicated therein with reasonable certainty.
Its negotiability is not affected by a provision which authorizes
the sale of collateral securities in case the instrument is not paid at
maturity, or authorizes a confession of judgment if the instrument
be not paid at maturitv, or waives the benefit of any law intended for
the advantage of the obligor, or gives the holder an election to require
something to be done in lieu of the payment of money.
To charge indorser notice of non-payment must oe given to him at
once .unless waived Dy him.
Every negotiable instrument Is payable at the time fixed therein
without grace. Where day of maturity falls on Sunday or a holiday,
instrument is payable on next succeeding business day. Instruments
payable on Saturdays are to be presented for payment on next succeed­
ing business day. except that demand instruments may be presented
for payment before noon Saturday when that entire day is not a holiday.
In any case not provided for in the act the law merchant governs,
and all laws in conflict are repealed.
Act does not apply to negotiable instruments made and delivered
before April. 1913.
Power of Attorney must be executed and acknowledged, and (if
for the conveyance of real estate, or to affect real estate) recorded, in
the same manner that deeds are made.
Probate Law.

(See Administration of Estates.)

Protest. The statutory damages on such protest are 5 per cent
on the principal of a bill of exchange, if drawn or negotiated within
this State, upon any person, at any place out of this State, but within
the United States, and 10 per cent if upon any person, at any place
without the United States.
Replevin. When any personal property is wrongfully taken or
unlawfully detained, or, if taken on execution or attachment, is
claimed by a third party, the owner or claimant may bring an action
for possession thereof. He may claim immediate delivery upon
affidavit therefor, whereupon the sheriff takes possession of the
property, and if delivery bond Is given on behalf of the defendant
within twenty-four hours, the property is returned to him, otherwise

BANKING AND COMMERCIAL LAWS—IOWA
the plaintiff may give bond and take the property: failing to do so
it is returned to the defendant. The plaintiff has twenty-four hours
In which to file bond. Justices of the peace have jurisdiction in
replevin suits involving property worth $200 or less. Procedure is
same before justice of the peace, except that the plaintiff must file
bond in all such cases. Replevin may also be had without bond, by
allowing defendant to retain possession of property pending suit.
Suits. (See Actions.)
Taxes. State, county, township, municipal, school, and road taxes
attach as a lien on real estate on March 1st of each year, and penalties
attach on first Monday in May in the next year. One-half of all
taxes may be paid without penalty, if paid before first Monday of
May; other half, if paid before first Monday of November provided
that all war taxes charged shall be included in the first installment.
Sales of real estate for taxes are held on the second Monday of Feb­
ruary, and all lands on which taxes are delinquent for two years are
offered. Owner has two years in which to redeem, by paying the
amount set forth in the certificate of purchase with all subsequent
taxes paid, and 10 to 25 per cent upon the whole sum, with legal interest
from the date of purchase or payment. Lands are sold for one year’s
delinquency, but the following year’s tax (not yet delinquent) is
embraced in the amount of the sale. An inheritance tax, graduated
in amount according to the amount involved, and the relation of the
beneficiaries to the decedent, is levied upon all intangible or tangible
proper of resident decedent, and upon tangible proper of non-resident
decedent. Tax applies as well to gifts made in anticipation of death,
to take effect at that time. Inheritance taxes do not apply to the
transfer of the estate of any decedent leaving an estate of less than
$25,000, dying or who has died while In the military or naval forces
of the United States during the World War or within one year after
the termination of the war. (Revision of the tax laws made by 1919
Legislature and for further information reference should be made to
the Acts 1919.)
Wills. No will except a nuncupative will shall affect any estate
unless it be in writing, signed by the testator or by someone in his
presence, with his consent, and subscribed in his presence, by two or
more competent witnesses in the presence of each other. A will made
before marriage becomes void on marriage of testator. No nun­
cupative will shall be valid when more than the value of $100.00 is
bequeathed, nor unless it is made in the last sickness of the testator,
and the subject thereof be reduced to writing within fifteen days after
it shall have been declared and proved by two competent witnesses
who shall have heard the testator, in effect, request some of those
present to bear witness thereto; and no such nuncupative will shall be
proved after six months from the death of the testator, nor until his
widow and heirs shall have reasonable notice of the time and place of
proving the same
Any soldier or sailor in actual service may dispose
of his personal estate, in his actual possession, and his wages, by a
nuncupative will. Any person may contest the validity of any will
or resist the probate thereof at any time within one year after the will
has been offered for probate. Upon the death of any testator any
erson interested in any part of the estate specified in the will may
ave the will probated. A will in writing shall be proven by one or
more of the subscribing witnesses, or, if they be dead, out of the state,
or have become incompetent from any cause since attesting the will,
then by proof of the handwriting of the testator or of the subscribing
witnesses thereto.

g

SYNOPSIS OF

THE LAWS OF IOWA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by B. J. Cavanagh, Attorney at Law, Suite, 1310
Equitable Bldg., Des Moines.
(See Card in Attorneys’ List.)
Accounts and Claims of. Statements of account, for use in
court or for proof in the settlement of estates of deceased and in
guardianship matters, must be itemized and verified. A statement
of “balance,” or "goods,” or “merchandise” is not sufficient.
Acknowledgments. All instruments affecting real estate, includ­
ing mortgages, deeds of trust, powers of attorney relating theretof,
and leases for more than one year, must be acknowledged or the
execution thereof proved and the instruments must be recorded in
the proper office, in order to affect third parties. The same is also
true as to bills of sale of personal property. Conditional sales contracts
or leases must be signed by both vendor and vendee, or lessor and lessee
and acknowledged by one of them, and must be filed the same as
chattel mortgages (see Chattel Mortgages). Articles of incorporation
must also be acknowledged and recorded. Forms of acknowledgments
are prescribed by statute, and must be substantially as follows:
State op Iowa \
County ... J8SOn this-------- day of------- a . d. 19— before me-------------------------------- -a

Notary Public in and for------------- County, Iowa, personally appeared
-----------------to me known to be the person, name in and who executed
the foregoing instrument, and acknowlegded that----------executed the
same or ——• voluntary act and deed.
Notary Public in and for-------------------- County, Iowa.
Actions. The common law forms of pleading are not used,
although the common law forms the basis of procedure. Pleading,
practice, and procedure are statutory, and accord, in the main,
with what is known as the reformed, or code procedure.
Administration of Estates. Where an executor is not appointed
by will, administration shall be granted: 1. To the spouse of the
deceased. 2. To the next of kin. 3. To creditors. 4. To any other
erson whom the court may select. Claims against the estate of a
eceased person are payable in the following order: 1. Debts entitled
to a preference under the laws of the United States. 2. Public
rates and 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 dis­
tributive shares. All claims of the fourth of the above classes not
filed and allowed, or if filed and notice thereof not served within
twelve months from the giving of the notice of appointment are
barred, except as to actions against decedent pending in the district
or supreme court at the time of his death, or unless peculiar circum­
stances entitle the claimant to equitable relief.
Affidavits. Affidavits may be taken before any person authorized
to administer oaths in the state where taken. If taken without the
8tat.e of Iowa, the official character of the officer administering the
oath should be evidenced in the same wav as the official character of


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2241

an officer taking depositions. (See Depositions.) Affidavits may be
taken within the State for any lawful purpose, of one unwilling to
voluntarily make an affidavit, by filing a petition with an officer author­
ized to administer oaths, who may cause the person to come before
him and make affidavit. This proceeding is statutory and must con­
form strictly to the statutes of Iowa.
Affidavits for proving accounts and form: State of.............................
County of.....................ss, I......................being first duly sworn, on oath
depose and say that I am (a member of the firm of....................and
that said firm is) the owner of the account hereto attached, marked
exhibit A, and made a part hereof, that the same is correct in all
particulars and that tlie articles named therein were sold and delivered
to said.................... at the prices and times therein named and agreed
upon, and that said articles -were reasonably of the value charged,
and that the said account is due and unpaid. That there is no legal
set off or credit to the same or any part thereof except as herein stated.
Subscribed and sworn to before me, by the said.................... this....
day. etc.
Aliens. Non-resident aliens or corporations incorporated under
the laws of any foreign country or corporations organized in this
country, one-half of the stock of which is owned or controlled by non­
resident aliens are prohibited from acquiring title to or holding any
real estate in Iowa, but the non-resident alien widow, heirs, or devisees
of an alien or naturalized citizen may hold the same for twenty years,
and if not sold wit-hiu that time, escheats to the State. Aliens may
acquire property of any kind within a city or town or lands not exceed­
ing 320 acres or stock in any corporation for pecuniary profit and may
alienate or devise the same, but this law does not affect personal
property. A lien holder may acquire title to the property embraced
in such lien but real estate so acquired must be sold within ten years
after title is perfected in an alien, otherwise it will escheat to the
State.
Arrest. No person can be imprisoned for debt on either mesne
or final process, unless in case of fraud. Debtors, however, may be
ordered to appear before a court of record wherein a judgment has
been rendered, and if the debtor is about to leave the State, or conceal
himself, he may be arrested and compelled to give bond to appear
before the court for examination, and in the meantime, not dispose
of his property. (See Supplementary Proceedings.)
Assignments and Insolvency. General assignments not valid
unless for benefit of all creditors, when assent of creditors is presumed.
The debtor must annex to the instrument of assignment a sworn
inventory and list of creditors; and such instrument must be acknowl­
edged and all of the papers recorded like a deed of real estate. The
assignment vests in the assignee title to all property of the debtor.
Assignee must give bonds, prepare a verified inventory and valuation,
and notify creditors by mail to file claims within three months.
All claims not filed within three months after notice published or
within such extended time as the court grants, not exceeding nine
months, including claims not yet due, can not be paid until all claims
filed within said time are paid. An assignment does not discharge
the debtor from his debts and liabilities, but only entitles creditors
to share equally in his estate. All claims filed must be itemized
and sworn to.
Attachments. An attachment, auxiliary to the main case, may be
sued out upon any one of twelve (12) statutory grounds for a debt,
which is past due; or upon any one of four (4) statutory grounds
for a debt on contract, not yet due. A bond must be filed for three
times the amount claimed, if the action is founded upon contract,
otherwise, in a sum to be fixed by the court, if the action is not founded
upon contract. Garnishments may be effected under the writ of
attachment. Special attachments are permitted, to attach specific
personal property, in a few prescribed cases.
Banks. The banks organized under the laws of Iowa are respect­
ively designated as savings banks and state banks.
Savings banks must have a minimum capital of from $10,000 to
$50,000, according to the population of the city or town in which
each is located. Each share must be of the par value of $100. The
statutory provisions must be consulted concerning the manner of
organization, the issuance of and payment for capital stock, the
board of directors, quorum, voting by proxy, limitation of deposits,
and the investment thereof, the loaning of funds, the cash reserve
required, and the dissolution of such banks.
State banks must nave a minimum capital of from $25,000 to
$50,000, according to the population of the city or town in which
each is located. Each share must be of the par value of $100. The
statutory provisions must be consulted for the particulars above
referred to on the subject of savings banks.
Banks and loan ana trust companies may obtain power to act as
executor, administrator, guardian, receiver, assignee, trustee, or in
other fiduciary capacity. National Banks may exercise the same
powers when authorized by Act of Congress. Any Iowa State or
Savings Bank or Trust Company may become a member of the
Federal Reserve bank system.
Bills of Exchange. The negotiable instrument law recommended
by the interstate commission on uniformity of law has been enacted
and is now law in Iowa. (For Grace, See Days of Grace.) A provision
for the payment of exchange, in addition to the amount of principal
and interest, does not render a bill of exchange non-negotiable.
Bills of Lading. The uniform Bill of Lading law has been adopted
In Iowa.
Blue Skv Law. This law obtains with respect to offering for
sale certain stocks or securities, and all corporations, dealers, brokers
and other parties affected must have permit from Secretary of State,
from whom copy of the law, rules, requirements, applications and
report blanks may be obtained upon application.
Chattel Mortgages. No sale or mortgage of personal property,
where the vendor or mortgagor retains actual possession, is valid
against existing creditors or subsequent purchasers without notice,
unless a written instrument conveying same, be executed acknowledged
like conveyances of real estate, and such instruments, or a duplicate
thereof duly recorded, or filed and deposited with the recorder of the
county where the property shall then be situated or if the mortgagor
be a resident of the state, then of the county where the holder of the
property resides. No encumbrance of personal property which may
be exempt from execution by the head of a family if a resident of the
State shall be of any validity unless the same be by written instru­
ment and unless the husband and wife concur in and sign the same
joint instrument.
Collateral Securities. There are special statutory provisions
concerning the pledging of corporate stock, as security; and also
upon the subject of sales of collaterals by action in court and judicial
sale. Otherwise the subject is governed by the common law.
Conditional Sales. No sale, contract, or lease wherein the
transfer of title or ownership of personal property is made to depend
upon any condition, shall be valid against any creditor or purchaser
of the vendee or lessee in actual possession, obtained in pursuance
thereof, without notice, unless the same be in writing, executed
by the vendor and vendee, or by the lessor and lessee, acknowledged
by the vendor or vendee, or by the lessor or lessee, and recorded or
filed and deposited the same as chattel mortages.
Convevances. No particular form is necessary for conveyances
or mortgages. The name of the parties, the description of the property,
the consideration, the date, signature, and acknowledgment, is all
that is necessary; as between the parties they are valid without
being recorded. The wife must join with her husband in conveyances,
and a conveyance of the homestead is of no validity unless husband
and wife concur in and sign the same joint instrument- A corporation
executes conveyances under its corporate seal, except where the

2242

BANKING AND COMMERCIAL LAWS—IOWA

corporation has not adopted a seal. Such conveyances must be signed
in the name of the corporation by the officers authorized so to do.
by the Articles of Incorporation, or By-Laws, or by resolution duly
entered of record in the minutes of the corporation, and duly acknowl­
edged by such officers, as the act of the corporation.
Corporations. Private corporations, sole or aggregate, may be
formed for any lawful purpose. But there are special statutory
provisions which must be complied with for the organization and
government of insurance, banking, loan and trust, building and loan,
and railway corporations. In all cases, the articles of incorporation
must be acknowledged and recorded, in the manner provided by
law, and approved by the secretary of state. With a few exceptions,
an incorporation fee or $25. plus $1 for each thousand dollars of
capital in excess of $10,000 must be paid, upon the organization
or renewal of a private corporation. The general term of the life
of a private corporation is twenty years, renewable for a like term.
Railroads, savings banks, and a few others may last fifty years,
also renewable.
Foreign corporations must obtain a permit to do business in the
state. The statute provides in detail what the application shall
contain, and must pay to the Secretary of the State a fee of $25 upon
$10,000 or less of money and property of the company actually within
the State, and $1.00 for each $1,000 of such money or property within
the State in excess of $10,000. No foreign stock corporation doing
business in this state shall maintain any action in this state upon
any contract made by it in this state, unless prior to the making of
such contract it shall have procured such permit. This prohibition
shall also apply to any assignee of such foreign stock corporation and
to any person claiming under such assignee of such corporation or
under either of them.
Courts. Terms and Jurisdiction. The district court has jurisdic­
tion of all actions, civil arid equitable, and has criminal and probate
jurisdiction. Superior courts may be established by the vote of
the people in any city of 4,000 inhabitants. It has jurisdiction to
cry all violations of city ordinances, and the same criminal jurisdiction
as justice of the peace courts. It has jurisdiction to try and determine
civil and criminal appeals and civil writs of error from justices of
the peace, situated in the township where the court is located. Has
the same jurisdiction as the district court to try all suits in law and
equity, except grant divorces, alimony, and separate maintenance,
and it has no probate jurisdiction. Transcripts from superior and
justice's courts must be filed in district court to create a lien on real
estate, and. are then enforced as judgments of the district court;
justice’s jurisdiction, $100, or, by written consent of parties. $300.
The supreme court has only appellate jurisdiction and nolds sessions
at Des Moines, January to May, from May to September (less vaca­
tion), and from September to December.
Municipal Court may be established by the vote of people in cities
of 5,000 inhabitants. It has jurisdiction to try all violations of city
ordinances, and the same criminal jurisdiction as Justice of the Peace
court, and exercise the jurisdiction conferred on the District Court
for the trial of misdemeanors. It has concurrent jurisdiction with
the District court in all civil matters involving $1,000 or less, but has
no jurisdiction to grant divorces, alimony or separate maintenance,
and has no probate jurisdiction. Transcripts must be filed in District
Court to create a lien, and appeals are taken direct to the Supreme
Court.
Days of Grace. Every negotiable instrument is payable at the
time fixed therein without grace.
Depositions may be taken within the State, on notice, and within
or without the State, on commission, issued after notice by the clerk
of the proper court. When to be taken on commission, defendant
may elect, in writing, duly served, to cross examine orally; thereupon
plaintiff may also elect in writing to examine orally. Exceptions
must be filed within three (3) days, after the filing of the deposition,
but objections may nevertheless be made on the trial for competency,
materiality, and relevancy.
Descent and Distribution of Property. Subject to rights of
dower and other charges thereon, and burdens imposed during the
lifetime of the decedent, and in the absence of a valid will, the estate
of one deceased shall descend in equal shares to his children. The
heirs of any deceased child shall inherit in same manner as though
such child had outlived his parents. If the intestate leave no issue
the whole of the estate to the extent of $7,500 after payment of debts
and administration expense, and one-half of the estate in excess of
said $7,500 goes to the surviving spouse and the other half to the
parents. If no surviving spouse, the whole thereof shall go to his
parents or the survivor of them; and so on through ascending an­
cestors and their issue, if both parents be dead. Personal property
not necessary to pay debts is distributed to the same persons, and In
the same proportions as though it were real estate.
Dower. Dower in Iowa is abolished, but the surviving spouse
Is entitled to one-third in value of ail the legal and equitable estates
In real property possessed by the deceased spouse at any time during
the marriage, which have not been sold on execution or any other
judicial sale, and to which such survivor has made no relinquishment
of right. A spouse, heir or devisee feloniously taking or procuring the
taking of the life of the other spouse, or decedent, cannot have dower
or inherit power or take under the will of the decedent. (See Limi­
tations.)
Employers Liability. Employers liability and workmen’s com­
pensation is governed by statute.
Executions may be stayed, according to their amount, for ninety
days or six months, with a few specified exceptions, and the issuance of
execulion may be prevented by filing an appeal bond. Otherwise
execution may issue immediately after rendition of judgment. The
Judgment is a lien on realty within the county where rendered, or by transcript, it may be made a lien in any other county. Executions
become liens on personal property only from the time of the levy and
seizure. Real estate is sold on execution subject to redemption within
one year, except in appealed cases, or where the interest is a leasehold
of two years or less. Creditors having liens, may redeem from the
sale after six months and before nine months from date of sale. Per­
sonal property is sold wdthout redemption.
Exemptions. The head of a family is entitled to a homestead of
forty acres or less of farm land, or half an acre or less in city or town.
Pension money, its proceeds, wages of the head of a family for 90
days past, and numerous items of personal property are exempt by
statute. There are statutory provisions concerning the creation of
liens on exempt real or personal property, and the assignment of
exempt wages. As to alimony there is no exemption unless the
party in whose favor rendered remarries.
Fraud. In actions for fraud, heretofore solely cognizable in a court
of chancery, the cause of action shall not be deemed to have accrued
until the fraud complained of shall have been discovered by the party
aggrieved by the exercise of due diligence. In actions brought by a
Judgment creditor to set aside a fraudulent conveyance of property
from one spouse to the other and to subject said property to execution,
either husband or wife may be compelled to testify against the other.
Gross fraud is punishable by fine or imprisonment.
Garnishments. (See Attachments.)
Husband and Wife. (See Married Women.)
Holidays. The first day of the week. January 1. February 12.
February 22, May 30, July 4, the first Monday in September, the
eleventh day of November, December 25, the day of general election


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and any day appointed or recommended by tne governor or this State
or the President or the United States as a day of fasting or thanks­
giving are holidays, for all purposes relating to the presentation for
payment or acceptance, and for the protesting and giving notice of
the dishonor of bills of exchange, drafts, bank checks, orders and
promissory notes
Interest. By written contract, maximum legal rate, 8 per cent.
Judgments draw 6 per cent, or such rate as is fixed by the contract
on which the judgment or decree is rendered, not exceeding 8 per
cent per annum. Open accounts draw 6 per cent after six months
from date of last item; money loaned, money due, money due on
settlement of accounts, bear interest at 6 per cent per annum. Con­
tract for more than 8 per cent forfeits all interest and costs.
Judgments in the district and superior courts may be obtained
at first term after suit commenced, if undefended; an equitable
action, except one for foreclosure of mortgage, or mechanic’s lien
or for divorce, is triable at the second term after the case is at issue.
Judgments of the district court are liens on real estate owned by
the debtor at the time of rendition, if the lands lie in any other
county, from the time of filing therein an attested copy of the judg­
ment. Lien also covers all lands which defendant may acquire
within ten years from date of judgment, or upon which a levy is
made after ten or before twenty years from the date of the judgment,
but this lien dates only from the time of the levy. Judgments of
superior courts and justice of peace courts become liens on real estate
by filing transcript in district court within county where obtained,
and become liens in other counties in the same manner as if rendered
In the district court.
Liens. These are mainly created by statute and are enforceable
In equity. In a few cases, and under peculiar circumstances, equitable
liens on real estate are established and enforced in equity.
Limitations. Actions, according to their subject matter, have
various periods of limitation, fixed by statute, extending from three
months to ten years after the cause of action accrued. Actions upon
judgments rendered in courts of record have a limitation of twenty
years. There are special limitations barring action for interest in
real estate based on defective trustees, guardians, administrators,
executors and sheriffs deeds; also as to other defects in the title to
real estate.
Married Women may own in their own right, real and personal
property, and may manage, sell, convey, and devise the same by
will. Neither husband nor wife is liable for the debts or liabilities
of the other incurred before or after marriage, nor are the wages,
earnings, or property of either liable for the separate debts of the.
other. Contracts may be made by a wife, liabilities incurred, and
enforced by or against her, as if unmarried. Both husband and
wife are liable for the reasonable and necessary expenses of the family,
and the education of the children.
Mortgages must be subscribed and acknowledged by the parties
creating the lien and recorded same as deeds. The wife should join
in the instrument, except mortgages for purchase money, and mort­
gages upon non exept personal property. The mortgagor has one
year in which to redeem real estate after execution sale, except as
stated under the sub title “Executions.” When a mortgage is paid
off, satisfaction thereof must be made on margin of the record, or by
satisfaction piece, acknowledged and recorded. If no satisfaction is
entered within thirty days after request in writing, the mortgagee
forfeits $25. (See Chattel Mortgages.) (See Limitations.)
Non-residents. Action may be brought against non-residents to
enforce liens on any property within the state; to enforce any debt
against a non-resident where action is aided b.v attachment on prop­
erty found within the State. Personal judgment cannot in any case
be rendered against defendants, not appearing, unless personal
service is had on such defendants within the State. Non-residents
may not sell at auction unless reciprocal legislation exists in the state
of their residence.
Notaries. These officers are appointed and commissioned by the
governor, upon filing a bond and paying the fee required by law.
They have power to administer oaths, take depositions, and the
usual power of such officers concerning presentation, demand, protest,
and notice of protest of negotiable commercial paper, only within the
county in which commissioned.
Partnerships, Limited and Special. Limited and special part­
nerships are permitted, but not favored. The statutes on this subject
must be strictly compiled with. A certificate showing prescribed
details and particulars of the partnership must be signed, acknowl­
edged, ana filed in the office of the clerk ot the district court of the
county in which the principal place of business s situated, to be
there recorded ana similarly recorded in each county where such
partnership has a place of business. There must be an affidavit
that the amount stated in: he certificate has been actually contributed
by each separate partner. Publication must be made ot the ce-tiflcate
and affidavit for six weeks in two newspapers in each senatorial
district in which the partnership is to; ransact business.
Powers of Attorney. A power of attorney to convey, or in any
manner affect real estate, must be acknowledged and recorded. A
revocation of such power must be acknowledged and recorded in the
same office wherein the original power of attorney is recorded.
Receivers. In distributing property in the hands of a receiver
there shall be paid in the following order: 1. Taxes or debts due
the United States. 2. Taxes or debts due the State. 3. Debts owing
to employes for labor, not exceeding $100.
Records. All instruments conveying or creating liens upon the
real or personal property and all conditional sales must, after having
been signed and acknowledged, be recorded in the office of the recorder
of deeds in the proper county or counties where the property conveyed
is situated. Unless so recorded, such instruments are invalid as to
a bona fide purchaser or encumbrancer.
Redemption. Redemption from a sheriff’s sale of real estate,
whether sold under a general or special execution, may be made
by a creditor who has a lien on the property sold, at time after six
months and within nine months from date of sale by paying to the
clerk of the court the amount provided by statute, being generally,
the amount of the purchaser’s bid, with interest at the same rate that
the judgment bears. Within the time named creditors may redeem
from each other. After nine months, and within one year’s from the
date of sale the owner of the real estate sold has the exclusive right to
redeem from such sale, and in so doing, the debtor must pay off the
claims of judgment creditors, who have made redemptions as herein
above stated, in addition to the amount originally bid.
Replevin. In actions for the recovery of personal property, the
petition must be verified; and if plaintiff desires immediate delivery
of the property, he shall execute a bond for double the value of the
property sought to be recovered. The defendant may stay all pro­
ceedings and retain the property by executing a bond to the plaintiff
with sureties to be approved by the clerk.
Sales. This State has a uniform sales law.
Sales of Goods in Bulk. The sale, transfer or assignment in bulk
of any part of the whole or a stock of merchandise and fixtures per­
taining thereto otherwise than in the ordinary course of trade and
in the regular orosecution of business, is void as against the creditors
of seller: 1. unless at least seven days before the sale a detailed
inventory is made, and 2. unless the purchaser demands and receives
from the seller a written list of names and addresses of the creditors

2243

BANKING AND COMMERCIAL LAWS—KANSAS
of the seller, with the full amount of indebtedness due or owing to
each and certified by the seller under oath to be a full, accurate and
complete list of his creditors and of his indebtedness, and 3. unless
the purchaser shall at least seven days before taking possession or
paying the purchase price, notify personally or by registered mail
every creditor whose name and address are stated in said list or to
which he has knowledge, of the proposed sale and of the price, terms
and conditions thereof.
The bulk sales law does not apply to sales by executors, admini­
strators, receivers, trustees in bankruptcy, or any public officer under
judicial sale. A purchaser not complying with these provisions be­
comes a receiver and accountable to the creditors for all merchandise
and fixtures coming into his possession by virtue of the purchase.
Security for Costs. Nonresident and corporation plaintiffs may,
on motion of defendant, be required to file a bond with sureties to be
approved for security of costs either in Justice Court, Municipal
Court, or District Court.
Statute of Frauds. No evidence except in writing and signed
by the party to be charged or by his authorized agent, is competent
relative to the following contracts: 1. In relation to sale of personal
property, when no part of the property is delivered and no part of
the price is paid. 2. In consideration of marriage. 3. Wherein
one promises to answer for the debt, default or miscarriage of another.
Including promises by executors to pay the debt of decedent from their
own estate. 4. For the creation or transfer of any interest in lands,
except leases for a term not exceeding one year. 5. Those not to
be performed within one year from the making thereof.
Stocks and Bonds. The sale of stocks and bonds is governed by
what is termed a "Blue Sky Law.”
Supplementary Proceedings. When an execution has been
returned unsatisfied, plaintiff may have an order for the appearance
and examination of the judgment debtor: or such order may be
obtained after execution has issued upon proof by plaintiff's affidavit
or other proof that debtor has property which fie unjustly refuses to
apply to the satisfaction of the judgment. If any property be found
by such examination it may be levied upon; if in the hands of others
the court may require its delivery to satisfy the judgment, and
appoint a receiver of debtors property, forbid the sale thereof and
order Equitable interests in realty to be sold.
Taxes. Real estate is assessed every odd year; personal property
is assessed every year. All property Is assessed at its actual value,
and taxed at twenty-five (25) per cent of the assessed value. All
road taxes and one-half of the other taxes levied are payable without
interest or penalty before April 1st: the balance is payable
before October 1st. Delinquent taxes bear interest at the rate of
1 per cent per month. Taxes upon realty are liens thereon: taxes
upon personalty are liens upon the owner’s realty, except the home­
stead, and may be continued as such liens, if the statute is complied
with, from year to year. Taxes upon stocks of goods or merchandise,
fixtures and furniture in hotels, restaurants, rooming houses, billiard
halls, moving picture shows and theaters is a lien thereon and such
lien continues when sold in bulk and the purchaser is personally liable
therefor; also a lien on buildings assessed separate from real estate;
taxes assessed on personalty in this state belonging to a nonresident
is a lien thereon. Personal property may be levied on and sold for
taxes by distress and sale. Real estate is sold for unpaid taxes, after
notice by publication on the first Monday in December of each year,
subject to redemption in three years from the date of sale.
Trust Companies. Domestic trust companies are organized under
and governed by the general corporation laws of the State. Foreign
trust companies doing business in this State are governed and C9ntrolled by the general statutes concerning and relating to foreign
corporations doing business in Iowa. (See Corporations.)
Trust Deeds. They must be executed and foreclosed, and consid­
ered as mortgages. That is, the power of sale on notice is abolished,
and they must be foreclosed by equitable action.
Warehouse Receipts. Any person, firm, or corporation desiring
to issue elevator or warehouse certificates (or receipts must file a
written declaration with the recorder of deeds in the county where
his or its elevator or warehouse is situated, setting forth the particu­
lars required by statute, which declaration must be recorded by the
recorder of deeds. Thereafter he or it may issue certificates for
commodities actually in such elevator or warehouse, but the certifi­
cates must conform to the statutory provisions. A register of
certificates issued must be kept by the parties issuing them. A
violation of these provisions, issuing double certificates for the same
property, or selling or encumbering property included in any ware­
house receipt, is made a criminal offense. There is also a criminal
statute against issuing false warehouse receipts or certificates.
Wills. Any person of full age and sound mind may dispose of
his property by will, subject to the rights of homestead and exemp­
tion created by law and the distributive share in his estate given
by law to the surviving spouse, except sufficient to pay his debts
and expenses of administration. Wills, to be valid, must be written,
witnessed by two competent witnesses, signed by the testator, or
by some person in his presence and by his express direction. Sub­
scribing witnesses can derive no benefit from a will, unless there be
two competent witnesses besides them. Wills executed outside of
Iowa, in accordance with the laws of the State where executed or
of the testator's domicile, if in writing and subscribed by the testator
are valid in Iowa. If probated in any other state or country they
shall be admitted to probate in this State on the production of a copy
of such will, and of the original record of probate thereof, authenticated
by the attestation of the clerk of the court in which such proba­
tion was made or of the probate judge, under seal, if they have one.
All wills must be probated before they can be effectual.


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SYNOPSIS OF

THE LAWS OF KANSAS
RELATING TO

BANKING AND COMMERCIAL. USAGES
Revised by Amidon, Hart, Porter & Hook, Attorneys at Law
Suite 505 Fourth National Bank Bldg., Wichita, Kansas.
(See card in Attorneys List.)
Acknowledgments.

(See Deeds.)

Actions. Civil actions are conducted as required by a code of
procedure. Security for costs must be given or resident plaintiffs
may deposit $15 in lieu of bonds for cost. Non-resident plaintiffs
may be required to give bond for costs.
Administration of Estates. Probate courts in each county have
Jurisdiction of estates. Demands against the estate are divided into
the following classes: 1. Funeral expenses. 2. Expenses of the
last sickness; wages of servants; demands for medicines and medical
attendance during the last sickness and expense of administration.
3. Debts due the State. 4. Judgments rendered against the
deceased in his lifetime: but if such judgments are liens upon real
estate and the estate be insolvent, such judgments shall be paid
without reference to classification, except the first two which have
precedence. 5. All demands without regard to quality which shall
be legally exhibited against the estate in one year after granting
first letters of administration. 6. Demands not exhibited within
one year are barred, except as to infants, persons of unsound mind
or persons imprisoned or absent from the United States, who shall
have one year after the removal of their disabilities. Foreign ex­
ecutors, and administrators with the will annexed, may sell real
estate in this State in accordance with the power contained in the
will, unless administration upon the estate has been granted in this
State; provided that at the time of such conveyance an authenticated
copy of such will has been recorded in the office of the probate court
In the county in which the land is situated.
Affidavits. Affidavits may be made in or out of the State by the
same authority and with like authentication, as depositions.
Aliens. Law prohibiting aliens from inheriting or holding real
estate, repealed 1901. (See Foreign Corporations.)
Arbitrations. Persons having controversies may submit them to
the arbitration of any person or persons mutually agreed upon and
may make such submission a rule of any court of record in the State.
The parties may enter into arbitration bonds conditioned for the
faithlul performance of the award. Award to be filed in court agreed
on and judgment entered as on a verdict of jury. Parties may have
process, orders, and execution as in civil cases.
Arrest. Upon the plaintiff filing a bond in double amount of his
claim, a defendant may be arrested in a civil action upon filing an
affidavit with the clerk of the court that he has removed or begun
to remove his property out of the jurisdiction of the court with
Intent to defraud his creditors; or has begun to convert his property
into cash, for the purpose of placing it beyond the reach of his creditors;
or has property which he fraudulently conceals; or fraudulently con­
tracted the debt.
Assignments and Insolvency. Assignments must be for the
benefit of all creditors and only discharge the debtor to the amount
of payments made.
Attachment. At or after the commencement of an action an
attachment may be had by plaintiff. The affidavit of the plaintiff,
his agent, or attornev must be filed, stating the nature of the claim,
that it is just, the amount affiant believes ought to be recovered,
and the existence of some one or more of the following grounds: 1.
That defendant is a foreign corporation or a non-resident of the State
(but in this case for no other claim than a demand arising upon con­
tract, judgment, or decree, unless the cause of action arose wholly
within the limits of the State). 2. That the defendant absconded
with the intention to defraud his creditors. 3. That the defendant
has left the county of his residence to avoid a service of summons.
4. That he so concealed himself that summons can not be served
upon him. 5. That he is about to remove his property or a part
thereof out of the jurisdiction of the court with the intent to defraud
his creditors. 6. That he is about to convert his property or a
part thereof into money for the purpose of placing it beyond the
reach of his creditors. 6. He has property or rights in action which
he conceals. 8. Has assigned, removed, or disposed of, or is about
to dispose of his property, or a part thereof, with the intent to defraud,
hinder, or delay his creditors. 9. Or fraudulently contracted or
Incurred the debt on which the suit is brought. 10. Or that the
suit is brought for damages from the commission of some felony or
misdemeanor. 11. Or that the debtor has failed to pay for any
article or thing delivered for which by contract he was bound to pay
upon delivery. A bond in double the amount of plaintiff’s claim is
required except where by the attachment affidavit defendant is shown
to be a non-resident of the State.
Banks and Banking. There is no constitutional provision relating
to banks, except banks of issue. Other banks are organized under a
general act. The Charter, in addition to the requirements of the
aw relating to corporations, shall contain the names and places of
residence of the stockholders and the amount of stock subscribed by
each, and may contain such other provisions, not inconsistent with
law, as the stockholders may deem proper, and shall be subscribed by
at least five of the stockholders of the proposed bank who are residents
of the State of Kansas. Board of Directors not less than five nor
more than twenty-five in number, a majority of whom shall be resi­
dents of the county or adjoining counties to that in which the bank is
located. The word “State” shall be included in the title. The full
amount of the capital stock must be subscribed before the charter is
filed. The bank shall transact no business, except the election of
officers, the taking and approving of their official bonds, and the
receipts of payments on account of subscriptions to its capital stock,
until it has been authorized by the bank commissioner to commence
business. Capital stock shall be subscribed in full before charter is
filed. The capital stock shall be not less than $20,000 in unincor­
porated towns and in cities of the third class; not less than $30,000 in
cities of second class; not less than $50,000 in cities of the first class.
No bank shall employ its money directly or indirectly in trade or
commerce by buying and selling goods,chattels, wares and merchandise,
and shall not invest in the stock of any bank or corporation, nor
make any loans on the security of the shares of its own capital, nor
be the purchaser or holder of any such shares, except to prevent loss

2244

BANKING AND COMMERCIAL LAWS—KANSAS

upon a debt previously contracted in good faith. All such property
coming into the possession of the bank in the collection of debts shall
not be considered assets after the expiration of six months. Banks
must maintain a reserve consisting of fifteen per cent of amount of
its demand deposits and five per cent of amount of its time deposits.
One-half of said reserve shall be in cash or balances in correspondent
banks as primary reserve; other half may be in certain bonds as
secondary reserve. Officers are personally liable for paying over­
drafts. Not more than 15 per cent of the capital stock and surplus
can be loaned to any one person, company or corporation. Penalties
are provided for false statements and for receiving deposits when the
bank is in a failing condition. Private banks are subject to the
provisions of the law. The Bank Commissioner or deputy must make
examination of each bank at least twice each year. Four reports per
annum are required, and the commissioner may call for others. Banks
may purchase, hold and convey real estate under certain conditions
and for certain purposes to the extent of one-half of their capital and
surplus. Shareholders are additionally liable for a sum equal to the
par value of stock owned and no more. If the Bank Commissioner
finds a bank insolvent or violating any banking law, he shall take
charge and may appoint a special deputy to handle affairs of the
bank for a period of not longer than six months, at which time Com­
missioner must appoint receiver, who serves under orders of District
Court. Claims of creditors must be filed with receiver within one
year from appointment.
Bills of Exchange. (See Notes and Bills of Exchange.)
Bills of Lading. These are governed by the common law.
Bulk Sale. “The sale or disposal of any part or the whole of a
stock of merchandise or the fixtures pertaining thereto, otherwise
than in the ordinary course of his trade or business, shall be void as
against the creditors of the seller, unless the purchaser receives from
the seller a list of the names and addresses of the creditors of the
seller certified by the seller under oath to be a complete and accurate
list of his creditors and unless the purchaser shall, at least seven days
before taking possession of the property, or before paying therefor,
notify in person or by registered mail, every creditor whose name
and address is stated in said list, or of whom he has knowledge, of
the proposed sale.”
In lieu of notice may give bond twice amount debts shown by
sellers affidavit signed by two resident sureties, who justifv for prop­
erty in excess of the obligation of the bond the bond to be approved
by and filed with the clerk of the district court of the county where
the property sold is located.
Chattel Mortgages. A mortgage of personal property, where the
property is not immediately delivered to the mortgagee who retains
actual and continuous possession thereof, is void as* against creditors
of the mortgagor and as against subsequent purchasers and mortgages
In good faith, unless the mortgage, or a copy thereof is filed in the office
of the register of deeds in the county where the property is situated,
or if the mortgagor is a resident of the state, then of the county of
which he is at the time a resident. A mortgage so filed is invalid
after two years unless within thirty days next preceding the expiration
of such two years and each two years thereafter the mortgagee, his
agent or attorney, makes an affidavit exhibiting the interest of the
mortgagee in the property and showing the balance unpaid on the
debt, and files the same in the same manner as the mortgage. In
case of default the mortgagee may sell in the manner provided in the
chattel mortgage.
A mortgage of exempt personal property is invalid unless executed
jointly by husband and wife where that relation exists unless it be
given for the purchase price of the mortgaged chattel.
Collaterals. Governed by the common law on Bailments and
Pledge.
Conditional Sales. Conditional contracts, by which the owner­
ship remains in the party proposing to sell until the purchase price
Is paid, are treated as chattel mortgages and must be filed in the
office of the register of deeds in the same manner as such chattel
mortgages but remain in force without the renewal affidavit required
In chattel mortgages.
Contracts. Ail contracts which, by the common law, are joint
only, shall be construed to be joint and several. The use of private
seals in written contracts (except seals of corporation) is abolished,
and in suits upon written contracts, as to the performance of con­
ditions precedent, it is sufficient after setting out the contract to
allege generally that plaintiff has fully performed the contract.
Conveyances. (See Deeds.)
Corporations. Corporations are formed under a general statute.
Prospective corporations must apply to the charter board for a charter.
A $25 application fee must accompany an application. Charter fee
Is one-tenth of one percent of its authorized capital stock upon the
first $100,000; one-twentieth of one per cent on all in excess of $100,000.
Forms for applications and charters furnished by the Secretary of
State. Every corporation must commence active operations within
one year after filing its charter with the secretary of state; failure to
do so works its dissolution. Duration of charter is fifty years, or less,
as may be specified in the charter. No corporation (except railroad,
banking, and building and loan), can commence business until it
file with the secretary of state an affidavit made by its president and
secretary setting forth that not less than 20 per cent of its capital
stock has been paid in actual cash, or property equivalent thereto,
but a corporation de facto exists if the 20 per cent has been paid
even though the affidavit has not been filed. The name adopted
must indicate the nature of the business. The corporate name must
begin with the word “the" and end with the word “corporation.”
“company,” “association,” or "society,” but this does not apply
to banks, benevolent or religious societies. There must be at least
five directors, three of whom must be residents of the State. The
annual statement shall be made by each corporation for profit or on
before March 31st of each year, showing a complete detailed state­
ment of the condition of such corporation, on the 31st day of December
next preceding. Failure to file this report within ninety days from
time fixed works a forfeiture of the charter, and a penalty of $5 for
each day the report is delayed. The capital stock can be increased
to an amount not exceeding three times the original amount fixed in
the charter and to any further amount of bona fide paid up capital.
Capital stock may also be decreased. Preferred stock can be issued
If all the holders of common stock consent. Dividends can not be
declared from any source other than that which results from profits.
The corporation can borrow money not to exceed the amount of its
capital stock.
Corporations (except banks, insurance, building and loan companies
and those not organized for profit) must pay an annual franchise tax
on paid-up capital as follows: Not over $10,000, $10; over $10,000;
and not over $25,000, $25; over $25,000 and not over $50,000, $50;
over $50,000 and not over $100,000, $100; over $100,000 and not over
$250,000, $125; over $250,000 and not over $500,000, $250; over
$500,000 and not over $1,000,000, $500; over $1,000,000 and not
over $2,000,000, $1,000; over $2,000,000 and not over $3,000,000,
$1,500; over $3,000,000 and not over $5,000,000, $2,000; over
$5,000,000, $2,500.
Costs. In the District Court a bond for costs or a cash amount
in lieu thereof must be deposited by resident plaintiffs. Nonresident
plaintiffs may be required by order of court to give additional security
for costs. In Justice Courts cost deposits may be $3.00 to $5.00.
depending on custom of Justice. In City Courts cost deposits are
customarily $5.00.
Courts. Terms and Jurisdiction. District courts, holding two to
three terms a year in every county, have general original jurisdiction
In law and equity. Regular terms of the probate court are held in
each county on the first Monday in each month and special or adjourned
terms may be held as business may require. Justice's jurisdiction in
civil actions for the recovery of money, $300; to recover specific
personal property not valued in excess, $300. The supreme court is


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the court of last resort. City courts with jurisdiction in civil actions
to the amount of $1,000 and in replevin actions to $500 exist in the
following cities: Arkansas City, Atchison, Coffeyville, Kansas City,
Leavenworth, Topeka, and Wichita. Procedure corresponds to that
of justice courts.
Creditors' Bills. Creditors may bring an action In the nature of
a creditors’ bill to marshal assets or set aside fraudulent conveyances
as in other states.
Days of Grace. Abolished.
Deeds. No particular forms of conveyances are prescribed. As
a rule the form used in other States is sufficient. As between
the parties conveyances are valid without being recorded. Deeds
may be valid as against attaching creditors without being recorded.
The wife should join with her husband in the conveyance, and any
conveyance or mortgage of the homestead without her uniting in the
same is absolutely void. If the wife has never resided in the State
her signature is not necessary. Grantors need not attach any seal
or scroll to their signatures, and no witnesses are necessary unless
grantors are unable to write. Corporations convey by deed, sealed
with the corporate seal and signed by president, vice-president, pre­
siding member, or trustee. The acknowledgment must be before a
judge or clerk of the district court having a seal, a justice of the
peace, notary public, county clerk, register of deeds, mayor or clerk
of an incorporated city. Every notary public shall add to his official
signature the date of the expiration of his commission as notary
public. In cases where the acknowledgment is made out of the
State it must be made before a court of record, a clerk, or other
officer having the seal thereof, a commissioner of deeds for Kansas,
justice of the peace or notary public, or before any consul of the
United States resident in any foreign country or port. Deeds and
mortgages must be recorded in the office of the register of deeds of
the county in which the land is situated, or they will be void as to
subsequent grantees in good faith without notice.
Deeds of Trust in the nature of mortgages are not used so far as
sale by the trustee is concerned. (See Trusts, etc.)
Depositions. Depositions are taken upon notice to the opposite
party. Courts are also authorized to appoint commissioners to take
depositions. The depositions may be taken before any person author­
ized to take acknowledgments. Each witness must sign his own
deposition. The notice must be attached to the depositions and
inclosed with them. Depositions should be taken on the date named
and some portion on each successive day or the officer before whom
the depositions are taken should note continuances or adjournments
from day to day. Sundays and national holidays not being regarded.
If taken by interrogatories and cross-interrogatories, under agreement
or otherwise, each interrogatory and cross-interrogatory must be
put to each witness and answered so far as he can answer it, and the
answer written down. If the depositions are taken before the mayor,
notary public, or commissioner appointed as aforesaid, they must
be certified under his official seal. If before any officer not possessing
a seal, a certificate must be annexed, under the seal of the county, or
the great seal of the State, that the officer by whom the depositions
were taken was. at the time of taking the same, such officer as he
represents himself to be in his certiflctae. This should be attached
to the certificate of the officer (not possessing a seal) who took the
depositions.
Descent and Distribution. The homestead is the absolute
property of the widow and children—one-half in value to the widow,
and the other half to the children, when both survive. The home­
stead can not be divided or sold by an action for partition until all
the children attain majority. One-half of all real estate owned by
husband during coverture, and not conveyed by husband and wife,
nor sold at judicial sale, and not necessary to pay debts goes to the
wife in fee simple; except of land sold by husband whose wife never
before such conveyance resided in the State. Remaining real estate
goes to the surviving children, and living issue of prior deceased
children, children taking per stirpes, in equal shares, or. if none, the
whole estate goes to the widow. For want of wife or child or living
issue of deceased child the whole estate goes to the parents. The rules
applicable to widow of deceased husband apply to husband of deceased
wife. Illegitimate chiluren inherit from the mother, ana also from
the father, if his recognition has been general and notorious, or in
writing. When a child would inherit from either parent, such parent
will inherit from the child. Personal property descends in the same
way as real estate except exempt household furniture is sole property
of surviving spouse. Property descending by law or will is subject to
an inheritance tax, varying in percentage according to relationship and
amount. (See Exemptions.)
Dower. Dower is abolished by law. (See Descent and Distri­
bution.)
Evidence. (See Testimony.)
Executions may be ordered as soon as judgment is obtained if stay
has not been granted or supersedeas given. Executions running to
the sheriff of the county where the levy is to be made, may be levied
on property in any county of the State and issue only out of court
where judgment obtained except where abstract or transcript of justice
judgment filed in district court of same county as that of the justice
court, execution will issue on said judgment only out of said district
court. There Is no stay of execution in the district court except by
supersedeas bond which may be given on appeal. In justice’s courts,
by filing bond, stays of execution are granted as follows. On any
judgment for $20 and under, thirty days; over $20 and under $50,
sixty days; over $50 and not exceeding $100. ninety days; over $100,
one hundred and twenty days. Real estate is only subject to execu­
tion issued out of district court of county wherein judgment rendered
or abstract or transcript from justice of the peace filed. Executions
are liens on personal property only from time of levy. Real estate
sold on execution or order of sale, giving the debtor eighteen months
in which to redeem. The debior is entitled to possession of the
property and rents and profits, during the period provided for redemp­
tion, except in case of waste. Receiver may be appointed to present
waste and may use so much of reuts and profits as are necessary to
repair waste and pay costs of receivership. Surplus If any to be paid
to judgment, debtor free from the lien of any judgment.
Exemptions. Homestead of 160 acres of farming land, or of one
acre within an incorporated town or city, with buildings thereon,
appurtenant to the use of the property as a homestead, unlimited in
value. To the head of a family the following articles of personal
property; All books, pictures, musical instruments, pews in churches,
burial lots; wearing apparel of debtor and family; beds and bedding,
cooking utensils, stoves and appendages necessary for use of family;
sewing machine and all other household furniture not exceeding $500;
two cows, ten hogs, one horse or mule; yoke of oxen or in lieu thereof
span of horses or mules; twenty sheep; food necessary for support
of stock hereinbefore mentioned; also one wagon, two plows, one drag
and other farming utensils not exceeding $300; all provisions and
fuel necessary for support of family for one year; necessary tools
and implements of mechanic, miner or other person used and kept
for carrying on trade or business, and in addition thereto stock in
trade not exceeding $400; library, implements and office furniture
of professional man. Also personal earnings of the debtor earned
during three months preceding the garnishment or attachment, and
three months’ pension money, where such earnings or pension money
is necessary for the support of the debtor’s family, but 10 per cent
of such earnings may be required to be paid in and applied on the
judgment.
Foreign Corporations. A foreign corporation doing business in
this State must file a certified copy of its charter or articles of in­
corporation with the secretary of state and pay to the state treasurer
the same fees upon the amount of capital invested or used in this
state as a domestic corporation, when it receives a certificate author­
izing it to do business and is then subject to substantially the same

BANKING AND COMMERCIAL LAWS—KANSAS
provisions, judicial control .restrictions and penalties as a domestic
corporation. Annual statements must be filed on or before March
31st. giving condition on the 31st of December preceding. If •
foreign corporation fails to file with the secretary of state the state­
ment required by law within ninety days after the time provided for,
its right to do business in the State is thereby forfeited. A penalty
is imposed of $5 for each day this report is delayed. Foreign cor­
porations must pay an annual franchise tax on that portion of their
capital represented by its property and business in Kansas on the
same basis as domestic corporations. Failure of foreign corporations
who transact business in Kansas, other than interstate commerce
to comply with this law renders them subject to ouster and receiver­
ship proceedings on the part of the State but does not now affect the
right of such foreign corporation to sue in the courts of this State.
Fraud. (See Attachments, Arrest, and Assignments.)
Garnishment in District Courts. At or after the time of
beginning an action to recover damages founded upon contract,
judgment or decree, or after the issuance of an execution and before
it is returned, if tbe plaintiff cause to be filed with the clerk an affidavit
stating the amount of his claim over and above all offsets, that he
believes that some person, naming him, indebted to, or has property
in his possession or under his control belonging to the defendants, and
that such defendant has no property liable to execution sufficient
to satisfy his debt, and that the indebtedness or property so held is
not by law exempt from seizure or sale upon execution, the clerk
shall issue a garnishment summons. In justice courts the affidavit
differs from that acquired in district court actions only in that affiant
states that plaintiff is in danger of losing his claim, in lieu of the
allegations that the defendant has not property subject to execution
sufficient to satisfy the debt. In the district courts bond in double
amount claimed is required on garnishments before judgment, except
where defendant is a non-resident. No bond required in justice
courts. Defendant may at or after complaint is filed and before
judgment, release garnishment by entering into undertaking with
sufficient surety to the effect that they will pay on demand any judg­
ment rendered against defendant. The bond shall be not less than
double amount of plaintiff’s claim.
Guaranty Companies. (See Trust Companies.)
Holidays. The following are legal holidays: January 1st, known
as New Years Day. February 12th, Lincoln’s Birthday. February
22nd, Washington’s Birthday. May 30th, Memorial Day. July 4th,
Independence Day. First Monday in September, Labor Day. Oc­
tober 12th, Columbus Day (but does not affect commercial paper).
December 25th, Christmas Day. If any of these days fall on Sunday
the next secular or business day is a legal holiday. Legal or business
proceedings had on a holiday, excepts Sundays, are valid.
Husband and Wife. ■ (See Married Women.)
Injunctions. Injunctions may be granted by a district court or
by the judge thereof at the beginning of an action or afterwards, in
his discretion. A bond must be given to protect the defendant
against any loss in case the Injunction is wrongfully obtained. In
the absence of the judge from the county the probate judge may
grant temporary injunctions.
Insolvency. (See Assignments.)
Interest. Legal rate, 6 per cent, but 10 per cent may be agreed
upon. Excess of 10 per cent is forfeited, and in addition thereto there
shall be deducted from the amount due for principal, with lawful
Interest, an amount equal to the interest contracted for in excess of
10 per cent. The legal interest originally contracted for continues
until the debt is paid, and no additional interest can be charged by
way of penalty for default except from date of default. A purchaser
of a negotiable note in due course takes the note free of the usurious
taint.
Judgments. Judgments of courts of record are liens on the real
estate of the debtor within the county from the first day of the term
at which the judgment was rendered; but judgments by confession
and judgments rendered at the same term during which the action
was commenced are liens only from the day on which the judgment
was rendered. Judgments lose their priority over subsequent judg­
ments unless execution is issued and levied within one year after
iudgment. A certified copy of the judgment appearing of record in
the district court may be filed in the office of the clerk of the district
court of any other county ana the judgment will then be a lien on
real estate in that countv. Abstracts or transcripts of justice court
Judgments may be filed in the district court ot the same county,
are liens on real estate in such county from the date of filing, after
which executions issue only out of said district court on such judgments.
Jurisdiction. (See Courts.)
License. Agents of insurance companies are required to take out
licenses from the superintendent of insurance. Cities are authorized
to enact license ordinances and certain classes of business are required
to take out a license.
Liens. Mechanics, material-men, and laborers, both original con­
tractors, and sub-contractors, and laborers of sub-contractors are
entitled to obtain liens upon real estate for labor performed or material
furnished in the erection or repair of any building. Sworn statements
Itemized as fully as practicable as to the amount of the claim, for
what and when it was rendered and by whom, giving names of con­
tractor and owner and description of property and date of last material
furnished, must, be filed in the office of the clerk of the court. Original
contractor’s lien claim must be filed within 4 months from date of
last materials, or labor furnished and others entitled to lien within
sixty days after last materials or labor furnished. Lien claimants
other than original contractors, must give immediate notice of filing
of lien claim to owner or person in possession of the premises, where
that, may be done, otherwise must post notice on the premises.
Supreme' court has rendered notice almost unnecessary. Action to
foreclose lien must be begun within one year after filing claim. Liverystable keepers, forwarding merchants aud common carriers have liens.
(See Judgments.) Attorneys have lieu on papers and funds in hand
for general balance of compensation and have lien on moneys in hands
clients adversary due client in any matter, action or proceeding, in
which the attorney was employed for services therein from the time
of service on the adverse party, in the manner of a summons, of
written notice of the lien.
Blacksmith, horseshoer, wagon maker, keeper of garage or any
other person shall have lien on any goods, chattels, horses, wagons,
automobiles, etc. for value of labor and material used thereon as long
as said property remains in his possession. Such person may retain
lien by filing statement thereof under oath in office of Register of
Deeds' within thirty days after parting with possession. Threshers
shall have lien on grain threshed and same must be filed within fifteen
days from completing threshing. Action must be brought within
ninety days after filing of thresher’s lien or same will be deemed to
have been abandoned.
Liens similar to ordinary mechanics lien are given by statute for
materials and labor furnished on oil leases in their development,
and are foreclosed in like manner.
Limitations of Suits. An action for the recovery of real property,
sold on execution or by executors, administrators, or guardians,
brought by the execution debtor, or the heirs, ward, or guardians,
within five years after the deed is recorded. Other actions for
recovery of real property, within fifteen years. On official bonds
and contracts in writing, five years. Contracts not in writing, three
years. Trespass, detinue, replevin, injuries not arising on contract,
and relief on the ground of fraud, two years. Action for libel, slander,
malicious transaction, or false imprisonment upon a suit for penalty
or forfeiture, one year. Action for any other relief not before
provided for, five years. In any case founded on contract, part
payment, or an express written acknowledgement or promise, renews
the contract. The statute runs from the date of such renewal. Con­
tractual limitations differing from the statutes are void.


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2245

Married Women. The real and personal property owned by a
woman at the time of her marriage, and any property which comes
to her by descent, devise, or bequest, or gift of any person except her
husband, remains her sole and separate property notwithstanding her
marriage, and is not subject to the disposal of her husband or liable
for his debts. Married women may sell and convey their real and
personal property and enter into any contract with regard to the
same in the same manner and to the same extent as a married man
may in relation to his property. She may sue and be sued in the
same manner as if she were single. She may carry on any trade or
business, perform labor or services for her separate account, and her
earnings or proceeds from labor, trade, or business remain her separate
property, and may be used and invested by her in her own name.
Her husband is not liable for her debts incurred in her separate busi­
ness undertakings by virtue of the marriage relation. She may also
contract with her husband with the same effect as though the married
relation between them did not exist.
Mines and Mining. The law provides for the appointment of a
mine inspector with authority to require mine owners to provide
certain facilities for the health and safety of persons employed and
compel proper ventilation, regulate excavations, air courses, etc.
This law Is quite elaborate and violations of the safety provisions of
the act—resulting In injury to employees, usually results in liability
even where the Kansas Workmen’s Compensation Act does not
apply, on the part of the mine operator to the employees because of
the positive duty resting on the operator to comply with such statutory
provisions.
Mortgages. A mortgage of real estate, to be valid as against
subsequent bona-fide purchasers without notice, must be duly ac­
knowledged and recorded in the office of the register of deeds of the
county where the land is situated. Mortgages may be valid as against
attaching creditors without recording. Mortgages may be discharged
on margin of record by mortgagee or attorney or assignee by duly
acknowledged power of attorney or assignment in presence of register,
or by satisfaction entered on the instrument when copied on the
margin by the register; or by an independent release duly acknowledged
and recorded. Wife must join in all mortgages except those for
purchase money, except in cases where she has never been a resident
of the State. Mortgages are foreclosed by suit only. By an act
of the Legislature which took effect May IS, 18S3, real estate sold
under foreclosure of mortgage is subject to eighteenmonthsredeinption.
If the mortgage foreclosed is on abandoned property or not occupied
in good faith and the court so finds, six months only is allowed for
redemption. This act does not apply to mortgages executed prior
to the date the act took effect. When a mortgage is assigned the
assignment should be acknowledged and recorded. (For Forms, see
Deeds: see Executions.)
(For Mortgages on Chattels, see Chattel Mortgages: see Execu­
tions.)
Notaries. Notaries are appointed by the Governor and serve for
four years. They give bond in the sum of 31,000 and are required
to affix the date of the expiration of their commission to all certifi­
cates.
»
Notes and Bills of Exchange. Uniform Negotiable Instrument
Act took effect June 8, 1905.
Partnerships. Limited or special partnerships may be formed
for any legal purpose except banking or insurance. Such partnerships
may consist of one or more persons who are general partners, and
one or more who contribute a specific amount of capital and shall
be called special partners. The special partners are not liable for the
debts of the partnership beyond the amount contributed by them
respectively but the names of the special partners must not be used
in connection with the business Such a partnership is formed by
executing a certificate stating the name, the nature of the business,
the names of the general and special partners, and their place of
residence, and the amount of capital contributed by each special
partner, and the perioa when the partnership is to commence and
when it will terminate. The certificate must be acknowledged and
filed and recorded in the office of the county clerk.
Power of Attorney. (See Deeds.)
Probate Law'. (See Administration.)
Protest. (See Notes and Bills.)
Records. (See Deeds.)
Redemption. (See Mortgages.)
Replevin. The plaintiff in an action to recover the possession of
specific personal property may claim the immediate delivery of the
same by filing affidavit and giving bond double the sworn value of
the property. Property replevined must be held by the officer taking
It twenty-four hours, during which time the party from whom the
property is taken may give bond to the plaintiff for not less than
double the amount of the value thereof conditioned for the return
of the same or its value in case it shall be adjudged the plaintiff Is
entitled thereto, and thereupon may have the property returned to
him.
Service. All service of process is made by the sheriff or by con­
stables, or by some one specially authorized in any particular case,
and must be issued in the name of the state with the seal of the officer
issuing the same affixed.
Suits. (See Actions.)
Taxes. All taxes shall be due on the first day of November of
each year, and if half of the same are not paid on or before the 20th
day of December, a 5 per cent penalty is added to the entire amount
of taxes due, and if not paid by June 20, an additional penalty of
5 per cent is added. If half of the taxes are paid by December 20,
payment of the remaining half may be deferred until June 20 of the
succeeding year without penalty. When the tax upon real estate is
delinquent it is sold for taxes on the first Tuesday in September
following. After sold it bears interest at the rate of 15 per cent
per annum and the same rate upon subsequent taxes paid and indorsed
on the tax certificate. The tax lien attaches to real estate on Novem­
ber 1, in the year in which the tax is levied. After land is sold for
taxes, it may be redeemed within three years from date of sale. The
interest of a minor may be redeemed at any time within one year
after he attains his majority, and idiots and insane persons may
redeem within five years after the sale.
A registration fee of 25 cents on each $100 of the principal debt
secured by real estate mortgage must be paid to the Register of
Deeds when such mortgage is filed for record and thereafter such
real estate mortage and the note which it secures is not subject to
taxation.
Trust Companies. Trust companies may be organized with a
capital of not less than $100,000, and may receive moneys in trust
and execute any trust committed to them, either by any person or
by order of any court, and may execute or guarantee any bond required
by law to be given in any proceeding in court, and act as agent for
the investment of money, and for the purpose of issuing, registering,
transferring or countersigning certificates of stock, bonds or other
evidences of debt, act as guardian and guarantee the fidelity and per­
formance of duty of persons holding public offices or private trusts,
and certify and guarantee title to real estate and sell all kinds of
negotiable paper, and receive deposits from banks and other trust
companies or public officers. They are required to keep od hand 25
per cent of deposits subject to check and 10 per cent of t ime deposits,
in the same manner as state banks. Each director must be a stock­
holder in the sum of not less than $1,000. Trust companies are
under the supervision of the bank commissioner and subject to his
examination.
Trusts and Powers. All trusts concerning lands must be created
in writing except such as arise by implication of law.
Warehouse Receipts. Practically the Uniform “Warehouse
Receipts Act.”

2246

BANKING AND COMMERCIAL LAWS—KENTUCKY

Wills. Any person of full age and sound mind and memory, hav­
ing an interest in real or personal property, may give and devise the
same to any person by last will and testament lawfully executed,
subject, nevertheless, to the rights of creditors and the estate given
a spouse by statute. Wills must be in writing, signed at the end by
the testator, or another in his presence and by his express direction,
and subscribed in his presence and at his request by two or more
competent witnesses who saw him subscribe or heard him acknowledge
it. Wills executed without the State in the manner prescribed by the
law either of the place where executed or of the testator's domicile or
of the State of Kansas are declared legally executed. Compliance with
these requirements should appear in the witnessing clause. A will
executed, proved, and allowed in another State, in the court of
original probate, according to the laws of that State, may, relative
to property in this State, be admitted to record in the probate court
of the county in which such property is situated, by producing an
authenticated copy of the will and order of probate admitting it to
probate by the proper court of the county and State of which
deceased died a resident, after due publication of notice thereof.
Every will, when admitted to probate, shall be filed in the office of
the probate court and recorded.

SYNOPSIS OF

THE LAWS OF KENTUCKY
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Woodward, Warfield & Hobson, Attorneys at Law,
616 Inter-Southern Bldg., Louisvihe.
(See Card in Attorneys’ List.)
Acknowledgments. Deeds executed within the State may be
acknowledged before the clerk of the proper county court or a notary
public, or may be acknowledged before and proven by two subscribing
witnesses. Deeds executed without the State and within the United
States must be acknowledged before the clerk of a court or his deputy,
notary public, mayor of a city, secretary of state, commissioner of
deeds, or judge of a court; if executed without the United States
must be acknowledged before
a foreign minister, consul or
secretary of legation of the United • States, or the secretary
of foreign affairs, or notary public of the nation in which the acknowl­
edgment was made or judge of a superior court of the nation where
the deed shall be executed, attested in either case by the officer's seal
of office. When the acknowledgment is taken ,the officer may simply
certify that the deed was acknowledged before him, and when it was
done. All deeds must show source of grantor’s title.
Actions. Actions are commenced by filing in the clerk’s office of
the proper court a petition setting forth the cause of action and caus­
ing a summons or a warning order to be issued thereon. Non-resi­
dents and corporations, other than banks, created by laws of this
State, are required to give security for costs. Limitations continue
to run until summons issues.
Administration of Estates. Personal estates of deceased persons
must be administered by the executors named in the will, or if these
refuse to qualify, or none are named, then by an administrator ap­
pointed by the county court of the county in which the decedent
resided at the time of his death. Administrator and executors are
required to give bond for the 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 to make
settlement within two years from the date of qualification and as
often thereafter as the court requires.
Affidavits. An affidavit may be read to verify a pleading, to
prove the service of a summons, notice, or other process, in an action;
to obtain a provisional remedy, an examination of a witness, a stay
of proceedings or a warning order- or. upon a motion. An affidavit
may be made: 1. In this State, before a judge ot a court, or a
Justice of the peace, notary public, clerk of a court, or master-com­
missioner. 2. Out of this State, before a commissioner appointed
by the governor of this State; or before any other person empowered
by a commission directed to him by consent of the parties or by
order of the court; or before a judge of a court, a justice of the peace,
a mayor of a city, or notary public.
Appeals. Appeals may be taken from a justice's court to the
quarterly court regardless of the amount in controversy; from the
quarterly court to the circuit court when the value in controversy,
exclusive of interest and costs, exceeds $25; from the circuit court to
the court of appeals as a matter of right in all cases in which the title to
land, or the right to an easement therein, or the right to enforce a
statutory lien is directly involved, and in all cases when the value
In controversy, exclusive of interest and costs, amounts to $500 or
more, but when such amount in controversy exceeds $200 and is less
than $500, tne party desiring the appeal may, upon payment of the
tax and filing the record in the clerk’s office of the Court of Appeals,
enter a motion that the appeal be granted. If the court upon exam­
ination of the record decides the appeal should not be granted, the
motion will be overruled without a written opinion, and no petition
for a rehearing will be entertained, but if the court should be of opinion
that the judgment be reversed then the appeal will be granted and a
written opinion will be filed. No appeal lies to the Court of Appeals
from any judgment of a quarterly, city, police, fiscal or justice's
court, nor from any judgment of the county court.
Arbitration. All controversies which might be the subject of a
suit may be submitted to the decision of one or more arbitrators, or
two and their umpire. The submission may be in writing or by
entry of record, and the agreement of submission shall be binding on
the parties thereto, if it states the matter to be submitted and who
are to be the arbitrators. Each arbitrator and the umpire, if one
be chosen, shall take an oath to decide the matter in controversy
fairly and impartially according to law, justice and the equity of
the whole case. The award must be in writing signed by each arbi­
trator and the umpire, if any, and shall be a Anal settlement of the
controversy between the parties. A copy of the award must be
given within a reasonable time and shall be binding upon both.
Arrest. An order for the arrest of the defendant shall be made
by the court in which the action is brought or pending, at its com­
mencement, or at any time before judgment. If an affidavit of the
plaintiff be filed in his office showing: 1. The nature of plaintiff’s
claim. 2. That it is just. 3. The sum or value, which the affiant
believes the plaintiff ought to recover. 4. That the affiant believes,
either that the defendant is about to depart from this State and with
Intent to defraud his creditors has concealed, or moved from this
State, his property, or so much thereof that the process of the court
after judgment can not be executed; or that the defendant has money,
or securities for money, or evidences of debt, in the possession of
himself, or of others for his use, and is about to depart from this
State without leaving property therein sufficient to satisfy plaintiff’s
claim.


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Assignments and Insolvency. Subject to National Bankrupt
Law. Every voluntary assignment made by a debtor to any person
In trust for his creditors shall be for the benefit of ail the creditors of
the assignor, in proportion to their respective claims, after the pay­
ment of the expenses of the trust; except that property conveyed
by the deed of assignment, and upon which there is a valid lien, shall
be applied first to the discharge of the lien debt; and except that
debts due by the assignor as guardian, committee, trustee of an
express trust created by deed or will, or as personal representative,
shall be paid in full before the general creditors receive anything.
The intent of the assignor in making the deed of assignment shall
not invalidate the deed, unless he be solvent, and it appear that the
assignment was made to hinder or delay creditors. The deed vests
in the assignee the title to all the estate, real and personal, belonging
to the assignor at the time of making the assignment, except that
property exempt by law shall not pass unless embraced in the deed.
If the assignor, before making the deed, shall have made a preferential
or fraudulent transfer, conveyance, or gift of any of his property,
or fraudulent purchase of any property in the name of another, the
property so fraudulently transferred, conveyed, or purchased shall
vest in the assignee, and it shall be his duty to institute such pro­
ceedings as may be necessary to recover same. If, upon demand,
he refuses to do so, any creditor may, and the property so recovered
shall become a part of the estate, and be distributed as other assets.
If creditors representing one-half in number and two-thirds of the
amount of debts against the estate shall so request in writing, the
court shall remove the assignee and appoint another in his stead.
Attachments. The writ may issue against a defendant who is a
foreign corporation or non-resident of the State; or has been absent
from the State four months; or has left the State with intent to
defraud creditors; or has left his county to avoid service of summons;
or so conceals himself that summons cannot be served; or is about to
remove, or has removed his property or material part out of the
State not leaving enough to satisfy claim of plaintiff or defendant’s
creditors; or has disposed or is about to dispose of his property, with
fraudulent intent to cheat, hinder or delay creditors. Also in action
for money due upon contract judgment or award, if defendant have
no property in State subject to execution, or not enough to satisfy
plaintiff and collection will be endangered by delay in obtaining judg­
ment and return of nulla bona. Also in action for personal property
ordered to be delivered to plaintiff which as to part thereof has been
disposed of, removed, or concealed, so that order of delivery can not
be executed. Affidavit as prescribed by civil code and bond required,
except no bond or affidavit required in action upon nulla bona return.
Banks. It is unlawful for any person or persons, either as
individuals or co-partners to engage in or conduct the business of
private banking in this commonwealth. Corporations may be organ­
ized to conduct both a banking and trust company business. The
boards of directors of banks and trust companies doing business in
this State have full power and authority to fix the hours of opening
and closing of said banks and trust companies, and may provide
that on Saturday of each week such hour of closing be as early as
twelve (12) o’clock noon. A Department of Banking, providing for a
Banking Commissioner, deputy commissioner and examiners of State
banks, and prescribing their duties and for the examination of all
financial institutions organized and doing business under the: laws of
the State was created by a law effective July 1st, 1912. The laws
governing the State Banking Department have been amended and
enlarged by acts of 1926, which should be consulted by those interested.
Blue Sky Law. The Blue Sky Law of Kentucky is a confprehensive regulation of the sale of corporate securities, based on the
law of Michigan. Those interested should refer to provisions of the
law.
Before transacting business in Kentucky investment companies
Issuing securities must file a detailed statement of their organization,
plan of business, and financial condition with the State Banking
Commissioner who has the power to investigate, approve or disapprove
any such business proposed. Non-residents must appoint the banking
commissioner agent for service of process. Books of all concerns
must be open to inspection. Dealers must obtain licenses from the
banking commissioner who may revoke them in certain cases.
The following classes of securities are exempted from the operation
of the law:
Securities issued by the United States, any foreign government, any
State or Territory or sub-division thereof; public utilities; banks,
trust companies and building and loan associations; domestic cor­
porations without capital stock not organized for gain; of corporations
listed in any standard manual except as otherwise provided: securities
sola througn a licensea dealer, member of a recognized stock exchange
in Kentucky; listed on any stock exchange recognized by the Banking
Commissioner or securities senior thereto; those sold or offered to a
licensee under the act; unsecured commercial paper; mortgages on
real or personal property in Kentucky where the entire mortgage is
transferred; stock dividends and increase of stock sold and issued to
stockholders
Chattel Mortgages and Deeds of Trust. No deed of trust or
mortgage, conveying a legal or equitable title to real or personal
estate, shall be valid against a purchaser for a valuable consideration,
without notice thereof or against creditors, until such deed shall be
acknowledged or proved according to law, and lodged for record. It
is a penal offense, punishable by fine and imprisonment, for any per­
son to sell or remove from the State any personal property on which
there is a mortgage of record, with the intent to prevent the foreclosure
of the mortgage and a sale of the property.
Checks. The issuing of checks upon banks where the drawer has
not sufficient funds is a felony if the check is for more than $20.00,
and a misdemeanor if less; the only requisite to liability is that the
drawer must obtain goods or credit thereby. The old law required
a fraudulent intent, and was amended, as above, by act of Mar. 20,
1926, but if the drawer of the check shall pay same within twenty days
after receiving notice of dishonor of the check, he shall not be
prosecuted: or if the prosecution has been begun, it shall be dismissed
at cost of the maker of the check.
Contracts. A seal or scroll is in no case necessary to give effect
to a deed or other writing. All unsealed writings stand upon the
same footing with sealed writings, having the same force and effect,
and the same actions may be founded upon them. The State or
county seal, or the seal of a court, corporation, or notary to any
writing has not. however, been dispensed with.
Conveyances. (See Acknowledgments.)
Corporations. Formed under the general laws for transaction of
any lawful business. Special regulations prescribed for foreign cor­
porations doing business in the State, and for banking, building and
loan, trust, insurance, and railroad companies. Cumulative voting
for the election of directors prescribed. Stockholders in banks, trust
companies, guaranty companies, investment companies and insurance
companies are liable equally and ratably, and not one for the other,
for all contracts and liabilities of corporation, to extent of the amount
of their stock at par value in addition to amount of such stock; but
persons holding stock, as fiduciaries, are not personally liable, but
estates in their hands are in same manner and to same extent as other
stockholders, and no transfer of stock operates as a release, of any
such liability, existing at time of transfer, provided action to enforce
the liability be commenced within two years from time to the transfer.
Articles acknowledged and recorded like deeds in county in which
principal place of business is situated, and a copy thereof filed and
recorded in the office of the secretary of State. After such filing and
recording, and payment to State of license tax of one-tenth of 1 per
cent on its capital stock, corporation is deemed organized; but, before
transacting business other than with its own stockholders, at least 50
per cent of stock must in good faith be subscribed, payable at such
times as board of directors may require.

BANKING AND COMMERCIAL LAWS—KENTUCKY
By act of Mar. 1, 1926, the issue of no par value stock Is permitted
■where provided for in the articles and such stock is deemed fully paid
when consideration determined on by board of directors is paid.
But for purposes of corporation license or franchise taxes value is
fixed at $100.00.
„
...
.,
,
In 1920 Kentucky adopted a “Blue Sky law prohibiting the sale
of stocks or securities (with named exceptions) until approved by
the State Banking Commissioner, who requires full information on
blanks furnished by his office. The 1920 Blue Sky law has been
repealed and a new one substituted by act of March 23, 1926.
Courts. General civil and criminal Jurisdiction is vested in cir­
cuit courts which hold terms in each county as provided by statute.
Credits. By an Act approved March 14, 1914, it is provided
that a person who shall knowingly in person or through any agency
make any false statement in writing with intent it shall be relied
upon, respecting his financial condition, or means or ability to pay.
for the purpose of procuring delivery of personal property, the pay­
ment of cash, the making of a loan or credit, or extension of credit,
and procures upon faith thereof either or any of the things or benefits
mentioned, shall be guilty of a felony and upon conviction, shall
be confined in the penitentiary not less than one nor more than five
years.
Days of Grace. (See Notes and Bills of Exchange.)
Depositions are the usual form of taking testimony in all equitable
actions except that the court in its discretion, may order the
testimony to be presented orally. They may be taken on all equi­
table actions and etc., and in ordinary or common law actions
where witness resides twenty miles or more from place where court
is held or is absent from State, and in many other cases
enumerated in the statute where the witness is privileged.
Depositions are taken either on notice to opposite party or upon
written Interrogatories. The ordinary method of taking is upon
notice but where place of taking is more than one day s travel by
ordinary methods and more than one hundred miles from the place
of sitting of court, the party receiving notice may require deposition
to be taken upon interrogatories by giving notice to that effect to
adverse party or his attorney upon same day, or day following one
upon which first notice was served. Except in divorce cases, depo­
sitions are required to be taken upon interrogatories, if all parties
against whom they are to be read have been constructively sum­
moned and have not appeared, or be defendants, or under disability
other than coverture or Infancy and coverture combined. In several
other cases enumerated in the civil code, the court may require
depositions to be taken upon interrogatories, and they may always
be so taken by consent of all parties. Officers authorized to take
depositions in this State: An examiner appointed by judge of cir­
cuit court of this district, a judge or clerk of a court, justice of peace,
or notary public. Depositions may be taken out of this State before
a commissioner appointed by governor of this State or before a
judge of a court, a justice of peace, mayor of city, notary public,
or any other person empowered by a commission issued to him by
consent of the parties or by order of court. If deposition is taken
upon interrogatories neither party is allowed to be present, either
in person or by agent or attorney. The officer’s certificate must state
when and where the deposition was taken; that the witness was
duly sworn before giving it, and that it was written and subscribed
by him in officer's presence, or was written by officer in presence
of witness and read to and subscribed by witness in presence of officer.
Descent and Distribution of Property. The real estate of a
person dying intestate shall descend in parcenary to his kindred, male
and female, in the following order, viz: (1) To his children and
their descendants; if none, then (2) to his father and mother equally
if both be living; if either be dead, the whole estate descends to the
one living; if both be dead, then (3) to his brothers and sisters and
their descendants: if none, then 14) one moiety of the estate shall
pass to the paternal and the other to the maternal kindred, in the
following order: (6) to the grandfather and grandmother, or which­
ever may be living; if both are dead, then (6) to uncles and aunts
and tneir descendants; if none, then (7) to great grandfather and
great grandmother, and so on in other cases without end, passing
to the nearest lineal ancestors and their descendants. (8) If there
Is no kindred to one of the parents, the whole shall go to the kindred
of the other. If there is neither paternal nor maternal kindred, the
whole shall go to the husband or wife of the intestate, or if he or
she be dead, then to his or her kindred as if he or she had survived
the intestate and died entitled to the estate. When any or all of a
class first entitled to take are dead, leaviug descendants such descend­
ants shall take per stirpes, that is to say, by representation, the shares
of their respective deceased parents. Collaterals of the half blood
shall inherit only half so much as those of the whole blood. In making
title by descent, it shall be no bar to a party that any ancestor,
through whom he derives his descent from the intestate. Is or has
been an alien. Bastard can Inherit in the descending line only from
the mother and her kindred, and can transmit inheritance in the
descending line only to the mother and her kindred.
Dower. (See Husband and Wife.)
Escheats. Land held by a corporation for more than 5 years,
which is not proper and necessary to carrying on its legitimate business
becomes subject to escheat. Land held by a non-resident alien ror
more than S years becomes subject to escheat.
Executions may issue upon judgment any time until collection of
it Is barred by limitation, but no execution shall issue on any judg­
ment, unless ordered by the court, until after ten days from rendition.
Execution constitutes lien on property of debtor from time it reaches
hands of proper officer. Provided that such lien shall be void as to a
purchaser for value without notice unless notice of such execution
shall be filed in the office of the County Clerk. Execution may be re­
plevied for three months, any time before sale under same, by defend­
ant giving to the officer an obligation (replevin bond) payable to plain­
tiff. with good security for the amount thereof, interest and costs. A
Judgment to enforce a lien cannot be replevied. No replevy allowed
upon judgment against any collecting officer, attorney at law, or
agent, for a delinquency or default in executing or fulfilling duties
of his office or place, or for failing to pay over money collected by
him in such capacity, nor against a principal by his surety, nor upon
a debt due by obligation having the force of a judgment, nor upon
Judgment for specific property, or for the property, or its value.
If land sold does not bring two-thirds of appraiser s valuation, defend­
ant and his representatives have right to redeem within a year from
the day of sale, by paying purchaser or his representatives original
purchase money and ten per centum per annum interest.
Exemptions. The following property of persons with a family
resident in this Commonwealth, shall be exempt from execution,
attachment, distress, or fee bill, namely: Two work beasts, or one
work beast and one yoke of oxen; two plows and gear; one wagon
and set of gear, or cart or dray ; two axes, three hoes, one spade, one
shovel; two cows and calves; beds, bedding and furniture sufficient
for family use; one loom and spinning wheel and pair of cards; all
the spun yarn and manufactured cloth manufactured by the family
necessary for family use; carpeting for all family rooms In use; one
table; all books not to exceed seventy-five dollars in value; two
saddles and their appendages; two bridles; six chairs; or so many
as-shall not exceed ten dollars In value; one cradle; all the poultry
on hand; ten head of sheep, not to exceed twenty-five dollars in value;
all wearing apparel; sufficient provisions, including breadstuff and
animal food to sustain the family for one year; provender suitable
for live stock, if there be any such stock, not to exceed seventy dollars
in value; and If such provender be not on hand, such other property
as shall not exceed such sum in value: all washing apparatus, not to
exceed fifty dollars in value; one sewing machine, and all family
portraits and pictures; one cooking stove and appendages, and other
cooking utensils not to exceed in value twenty-five dollars; ninety


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2247

per centum ol the salary, wages, or Income earned by labor, of every
person earning a salary, wages, or income of seventy-five dollars or
less per month, provided that the lien created by service of garnish­
ment, execution, or attachment, shall only affect ten per centum
of such salary, wages, or Income, earned at the time of service of
process; of the salary, wages, or income earned by labor, of very
person earning a salary, wages or income in excess of seventy-five
dollars per month, sixty-seven and one-half dollars per month and
no more shall be exempt.
„
,
,
Tools of a mechanic, not exceeding one hundred dollars in value
libraries of ministers of the Gospel, professional libraries of lawyers
professional libraries and Instruments of physicians and surgeons, not
to exceed in value five hundred dollars. In addition to personal
property there is for actual bona fide housekeepers with a family
resident in this Commonwealth a homestead exemption of so much
land including the dwelling house and appurtenances owned by
debtor as shall not exceed in value one thousand dollars. This
does not extend to a mortgage on or purchase money due for the land
or for debts or liability existing prior to the purchase of the land, or
of the erection of the Improvements thereon.
Personal property or money on hand or in bank to the amount of
$750.00 shall be exempt from distribution and sale and shall be set
apart by the appraisers of the estate of an intestate to his widow and
children, or, if no widow, to his infant children or child surviving him.
The appraisers shall state in their appraisement the money or the
articles and value of each set apart by them to the widow, or infants,
separately to the articles appraised for sale, but if the widow be present
at the time of the appraisement, or any one authorized by her in
writing, she may make her selection out of the property appraised to
the amount of said $750.00 and said appraisers shall so report. The
provisions of this section shall apply to cases where the husband dies
testate, and tne widow renounces the provisions of the will in the
time prescribed by law.
Holidays. The 1st day of January, January 19th (Bobert E. Lee
Day), February 12th (Lincoln Day), the 22d day of February, the 30th
day of May, the 4th dav of July, the first Monday in September (Labor
Day), the 12th day of October (Columbus Day), the 11th day of No­
vember (Armistice Day), the 25th day of December of each year, and
all days appointed by the president of the United States, or by the
governor of this State, as days of fasting and thanksgiving are declared
holidays, and shall be treated as Sunday. If any of those days named as
holidays shall occur on Sunday, the next day thereafter shall be ob­
served as a holiday.
Husband and Wife. By an act which took effect June 12, 1894,
the following important changes were made in the common law of
coverture which theretofore prevailed in Kentucky. Marriage gives
to the husband during the life of the wife no interest in any of the
wife's property. She has full power to contract and to bind herself
and her property, except that she can not bind herself to answer
for the debt, default, misdoing of another, except as to property
set apart for that purpose by mortgage. She may sell and dispose
of personal property as if unmarried, but may not sell or convey
real estate unless her husband unites in the contract, or conveyance
unless empowered to do so by decree of court, in case of Insanity,
conviction of felonv. or abandonment by the husband. After the
death of either husband or wife the survivor shall have a life estate
In one-third of all the realty of which the decedent, was seized in fee
simple during the coverture unless such right shall have been for­
feited or relinquished. Such survivor has also absolute title to onehalf the personalty of the decedent left after the payment of debts.
Abandonment and living in adultery by either party, or divorce works
a forfeiture of these rights.
Interest. The lawful rate of interest is 6 per centum per annum,
and contracts for a greater rate are void as to the excess of interest.
The Court of Appeals has refused repeatedly to allow attorneys fees
to be collected.
Judgments. A judgment does not constitute a lien on property
in this State. All judgments bear interest from their dates. Judg­
ment can be kept alive for 15 years additional by having execution
issued at any time within 15 years after date of judgment. (See
Executions and Limitations.)
Limitations.
The following are the periods within which actions
must be brought, the time commencing to run from the accrual of
the cause of action. Fifteen years: Actions to recover real property;
actions upon judgments and written contracts, except negotiable
Instruments. Seven years: Actions by senior patentees against
junior parentees, who have held possession for seven years. Five
years: Actions upon verbal contracts; upon a liability created by
statute; actions for trespass to real or personal property or for dam­
ages for withholding same; for the specific recovery of personal prop­
erty; actions upon negotiable instruments, though as to the makers
of an undiscounted note it is fifteen years and as to sureties seven
years; actions upon accounts between merchants, and actions for
relief from fraud or mistake and all other actions not arising on con­
tracts and not in luded in the 1 and 2 year statutes. Two years:
Actions upon merchant’s accounts for goods sold. One year: Actions
for injury to person or character and for breach of promise of marriage.
Merchandise in Bulk. An Act of the 1920 Legislature provides
that when any one who shall buy any stock of goods in bulk or fixtures
berore he shall deliver to the vendor the purchase price or any promis­
sory note therefor shall obtain from the vendor a verified written
statement of all the creditors of the vendor together with their addresses
and the amount of indebtedness due to each, also an accurate in­
ventory of the stock or fixtures to be purchased and making it the
duty of the vendor to furnish such statement under oath. Upon
receiving such a statement the purchaser shall notify, personally or
by registered mail, each of the creditors of said vendor as appears
on the list, of the proposed sale, the price to be paid therefor, the
conditions of the sale and a copy of the statement furnished by the
vendor. This notice shall be given or sent at least ten days before the
completion of the sale. If any such purchaser fails to obtain a verified
statement from the vendor or to give the notice to the creditors as
above or to see that the proceeds of the sale are prorated among
creditors according to dignity of their claims then such sale or transfer
shall l)e fraudulent and void and shall operate as a general assignment
for the benefit of the creditors of the vendor and the purchaser shall
at the suit or option of the creditor be held liable to the creditors for
the fair value of all property so bought or sold, provided, however,
such suit must be brought within four months.
Notes and Bills of Exchange. The uniform negotiable Instru­
ments law was enacted June 13, 1904. Section 1 declares that an
Instrument to be negotiable must conform to the following require­
ments. (I) It must be in writing and signed by the maker or
drawer. (2) Must contain an unconditional promise or order to
pay a certain sum in money. (3) Must be payable on demand, or
at a fixed or determinable future time. (4) Must be payable to the
order of a specified person or to bearer. (5) Where the Instrument
is addressed to a drawee, he must be named or otherwise Indicated
therein with reasonable certainty. Days of grace are abolished.
The signature of any party may be made by an agent duly Authorized
in writing, thus differing from the uniform negotiable instruments
law as enacted elsewhere. Every negotiable instrument is payable
at the time fixed therein: when the day of maturity falls upon Sunday,
or a holiday, the instrument is payable on the next succeeding business
day.
Powers of Attorney. Powers of attorney to convey real or per­
sonal property may be acknowledged, proved and recorded in the
proper office in the manner prescribed for recording conveyances. If
the conveyance made under a power is required by law to be recorded
or lodged for record to make the same valid against creditors and pur­
chasers. then the power must be lodged or recorded In like manner.

2248

BANKING AND COMMERCIAL LAWS-LOUISIANA

Protest. Where any negotiable instrument has been dishonored
it may be protested for non-acceptance or non-payment as the case
may be; but protest is not required, except in the case of foreign billa
of exchange. It is the safer practice to protest in all cases, because
in all cases notice of dishonor Is necessary to charge parties secondarily
liable.
Taxes. State and County taxes in Kentucky for any year are a
lien against real estate from and after July 1st of the preceding year.
The cities and towns of Kentucky are divided into six classes and the
liens of the various classes for taxes on real estate date from the
following:
First Class, September 1st for succeeding year.
Second Class, July 1st, for succeeding year.
Third Class, from date fixed by City Council for succeeding year
Fourth Class, April 1st for current year.
Fifth Class, September 15th for succeeding year.
Sixth Class, July 1st for succeeding year.
Taxes due the State by banks and trust companies are payable
directly into the State treasury on or before the first day of July
succeeding reports by their chief officers required to be made to
auditor of public accounts, and taxes to counties, cities, towns and
districts are paid at the time fixed by law for payment of like taxes.
Wills. Any person of sound mind and over twenty-one years of
age may make a will. Wills must be in writing with the name of
the testator subscribed thereto either by himself or by some other
erson in his presence and by his direction. If not wholly written
y the testator the subscription must be made or the will acknowledged
by the testator in the presence of two witnesses, who shall subscribe
their names in the presence of the testator. The will of a person
domiciled out of this State is valid as to personalty, If executed accord­
ing to the law of the domicile; but to be valid as to lands, it must be
executed as required by the law of this State. The county court
has exclusive original jurisdiction over the probate of wills. Holo­
graphic wills are valid.

SYNOPSIS OF

THE LAWS OF LOUISIANA
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Messrs. Merrick, Schwarz, Guste, Barnett & Redmann,
Attorneys at Law, 1107 Canal-Commercial Bank Bldg., New Orleans.
(See Card In Attorneys’ List.)
Accounts. (See Acknowledgments.)
Acknowledgments. The uniform foreign (Act 154 of 1916), and
domestic (Act 226 of 1920) acknowledgment laws have been adopted.
Acknowledgments may be taken within the state by a notary
public or by a recording officer.
Acknowledgments may be taken in the United States, outside of
the state, by any judge, justice of the peace, notary, commissioner for
Louisiana, or by any officer authorized to take acknowledgments
where he acts.
Acknowledgments may be taken in foreign countries by any am­
bassador, minister, envoy or charge d’affairs of the United States, in
the country to which he is accredited, or before any officer of the
United States, a notary public, or a commissioner or other agent of
Louisiana authorized to take acknowledgments, if such officers have
an official seal, and are commissioned or accredited to act where the
acknowledgment is taken.
Any commissioned officer of the army or navy of the United States
Is authorized to take acknowledgments in any foreign country in which
he may be serving. (Act 192 of 1918.)
All acknowledgments taken within the United States must be
witnessed by two witnesses over the age of fourteen years, who must
subscribe the certificate of acknowledgment. If the party making
acknowledgment be blind, three witnesses are required. Witnesses
are not necessary when acknowledgments are taken outside of the
United States. The officer taking the acknowledgment must not act
as a witness. While a female may act as a witness, this is of doubtful
advisability.
The acknowledgment of a married woman may be taken as though
she were single, separate examination being unnecessary.
No authentication is required of certificates of acknowledgments
taken in the state, or taken in foreign countries, or taken in the United
States by notaries public, or commissioners for Louisiana, under their
official seals. Certificates of acknowledgments taken in the United
States before other officers must be authenticated by a certificate of
a secretary of state as to the capacity of the officer.
Authentication for use out of the state may be by the secretary of
state, whose fee is one dollar, or by any clerk of a court of record,
civil district or federal court, whose fee is fifty cents.
Actions. Commenced by petition setting forth cause of action,
articulated in numbered paragraphs, signed by plaintiff or his attorney
and duly sworn to. Plaintiff must give resident security for costs or
make deposit to cover same if demanded. (See Act 300 of 1914
regulating pleadings and practice as amended by act 27 of 1926.)
After filing of petition, defendant is cited to appear ten days after re­
ceipt of citation in District Courts and Justice of Peace courts outside
of city of New Orleans. One day additional for every ten miles his
residence is distant from court. Delay in no case to exceed fifteen days.
In city courts of New Orleans, defendant must appear three days after
receipt of citation. Neither day of service nor day on which answer
must be filed is included in delay. If defendant fails to appear, judge­
ment by default is rendered against him. In district courts such judge­
ment is confirmed two judical days after preliminary entry of default.
In Justice of Peace courts judgment of default is confirmed the same
day as that on which default is entered.
Administration of Estates by executors, administrators, or tutors
who are ex-officio administrators—also by dative executors—where
there is no heir present or agent of heir, public administrator takes
charge in New Orleans. A non-resident executor of a will must in all
cases give bond; a resident does not unless required by creditors.
Administrators and executors of other states must open succession of
deceased in the courts of this State, and be recognized as such here
before they can sue or be sued or transfer property in this State. Stock
in local corporations may be transferred by non-resident executors,
etc., without the necessity of securing an order from the local court, but
no transfer can be made until the inheritance tax is adjusted. No
debts can be paid by administrator without authorization of probate
court. T,he administrator or executor presents to the court an
account or tableau of distribution setting forth the payments and
disbursements he proposes to make. Parties interested are notified
by publication to show cause within ten days why the account so filed
should not be approved. Any party interested may oppose the
account by opposition in writing at any time within the said ten days
In absence of opposition account is homologated upon production of
satisfactory evidence by administrator or executor, and the funds
ordered distributed in accordance therewith.
Claims against estates should be presented in writing to the admin­
istrator or executor. Should he approve the same in writing, no
further action is required except to see that the claim is placed upon
his account when filed. Should he decline to recognize the claim.


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creditor may file suit against succession representative and obtain a
Judgment to be paid in ordinary course of administration. If there
Is no danger of prescription, creditor may await filing of account and
then oppose same if claim is not included.
Affidavits. (See Acknowledgments.)
Aliens. No alien who is ineligible to citizenship of the United
States may hold land or any real right. Aliens may not vote.
Arbitration. Agreements to submit to arbitration recognized by
law. Arbitrators must be sworn, otherwise decision is not binding.
8tate board of arbitration of labor troubles established. [Act 139
of 1894.]
Assignments and Insolvency.
by National Bankruptcy act.

State insolvent laws superseded

Attachment. Writs of attachment issue on application of credi­
tor, under oath, when debtor about permanently leaving state, without
possibility in ordinary course of obtaining or executing judgment
previous to departure, or when such debtor has already left state
permanently, when the debtor resides out of the state; when he
conceals himself to avoid being cited; when he has mortgaged, assigned
or disposed of, or is about to mortgage, assign, or dispose of his prop­
erty, rights, or credits, or some part thereof, with intent to defraud
his creditors or give an unfair preference to some of them; and when
he has converted, or is about to convert, his property into money
or evidences of debt with intent to place it beyond the reach of his
creditors, or, if debt not due. Is about to remove his property out
of the State. Creditor must furnish bond equal to the amount claimed
to be due, with at least one solvent surety, residing within the juris­
diction of the court, conditioned for payment to any party injured by
issuance of writ of all damages sustained by him in case it is decided
that the attachment was wrongfully obtained. (Act 119 of 1916).
Bond for $250 is sufficient if debtor resides outside of state but bond
may be increased to amount of claim upon order of court at demand
of debtor. Garnishment may be had as an accessory either to a writ
of attachment or fieri facias Attachment may now issue for an offense,
quasi offense or tort if defendant is non-resident (Act 215 of 1920).
Banks. Banking corporations organized under banking laws
adopted in 1855, amended in 1888, in 1892, and in 1902. Savings,
deposit, and trust companies provided for by Act 150 of year 1888,
amended by Act 95 of 1892, which is now amended by Act 189 of
1902. The number of persons organizing must be five or more. No
special act of incorporation can be passed. By Act 189 of 1902,
the general banking act of 1855 and the amendatory acts of 1888 and
of 1892 are amended as follows; 1. Period of time must be fixed
in act not to exceed ninety-nine years. 2, Banks can not hold real
estate for longer time than five years, except such as necessary for
the transaction of their business, or except that held as agent or
trustee. 3. All managers and directors shall be citizens of Louisiana.
4. Safe deposit and trust banks without power to issue bank notes,
may be organized under this law witb a capital of $50,000 or more,
of which capital at least $i0,0o0 shall be paid up before commencing
business. In incorporated towns with less than 20,000 inhabitants
must have cash capital of not less than $30,000, which must be paid
up before can commence business. It may be made a receiver,
trustee, assignee or syndic, and execute trusts of every description.
Money or other valuables deposited by married women or minors
may be drawn out without the authority of their husbands or tutors.
Under Act 45 of 1902, banks organized to do a savings, safe deposit
and trust banking business must be composed of more than five
persons, may be organized for not longer than ninety-nine years,
may not hold real estate for longer period than ten years, except
such as is held as agent or trustee, or necessary for transaction of
their business; may accept and execute trusts or agencies of all descrip­
tions, may be appointed by any person or by court, executor, admin­
istrator, syndic, receiver, curator, tutor, trustee or assignee. Capi­
tal stock considered as security for faithful performance of duty,
though court may require other security, and may require the state
examiner of banks to investigate the affairs and management of
the bank. Such banks can not issue notes and must have a capital
not less than $100,000, which must be paid up in cash. (See Act 121
of 1910, amending Act 45 of 1902 as to capital required in cities of
less than 30,000.) (See also Act 179 of 1902, and amendment thereof.
Act 140 of 1906 and amendment thereof. Act 152 of 1910 and amend­
ment thereof. Act 96 of 1912 and Act 184 of 1916.) Act 238 of 1910 and
Act 146 of 1926 amending Act 45 of 1902, provides for branches. Act
112 of 1910 creates a State Banking Department having supervision
over all state banks. Amended by Act 48 of 1912. (See Act 70 ot 1918
to require banks or trust companies organized under Act 45 of 1902 to
use word ‘trust’ as part of name ; Act 86 of 1926 exempting state and
national banks located in this state from liability as forwarders
for collection of negotiable or non-negotiable papers or securities; Act
92 of 1918 as to maintaining money reserve and cash on premises to
take care demand deposits.)
Chattel Mortgages. As provided for by Act 198 of 1918, any
kind of movable property may be mortgaged for debts, for money
loaned, future advances or to guarantee contractual obligations.
The act or mortgage must be passed before a Notary Public ana two
witnesses and must be recorded in Parish where property is situated
and Parisn where mortgagor resides in order to affect third persons
without notice. Chattel so mortgaged cannot be transferred from
one parish of the State into another without written consent of
mortgagee. Inscription of chattel mortgage must be renewed within
five years.
Collaterals must be delivered to be effectual. Act 9 of 1914
makes it a felony for a customer of bank to wrongfully dispose of
collateral security pledged to bank. Uniform Bills of Lading law
obtains. (Act 94 of 1912.)
Conditional Sale. Act 119 of 1918 makes lawful a conditional
sale of tank cars providing for retaking of car by conditional vendor
without right of redemption being given to vendee, all payments of
such date of retaking being forfeited. Act 111 of 1894 provides for
conditional sale of railway equipment. Other conditional sales of
movable property are ineffective as between the parties or innocent
third persons.
Conveyances. All agreements affecting real property must be
In writing, and transfers and mortgages, etc., must be recorded in
the place where the property is situated to affect the rights of third
ersons. Deeds are made under private signature or by act passed
efore a notary public in the presence of two witnesses. Both vendor
and vendee sign, though signature of vendee is not essential, as any
act of acceptance will answer. The notary in Parish of Orleans pre­
serves the originals of deeds passed before him and certified copies
given by him are received as evidence in the courts. Every notarial
deed should contain (1) date of act and place where it was passed, (2)
names and surnames and qualities of contracting parties, (3) descrip­
tion of the property, etc., (4) price of transfer and terms and conditions.
(5) The marital status, of all parties must be given. Married women
may now dispose of separate property without authorization of husband
or court. The husband acts alone in the sale of community property;
the signature of the wife being unnecessary. Either husband or wife,
if husband refuses to do so, may designate family home by registration.
If so designated, wife’s signature necessary to pass title.
Corporations, Any number of persons, exceeding six, may form
themselves into corporations for literary, scientific, religious, and
charitable purposes; for works of public improvement, and generally
all works of public utility and advantage; and any number of persons,
not less than three, may form themselves into a corporation for the
purpose of carrying on mechanical, mining, or manufacturing business,
except distilling or manufacturing Intoxicating liquors, with a capital
not less than $5,000 or more than $1,000,000. Any number of per­
sons, not less than three, may form themselves into a corporation on

BANKING AND COMMERCIAL LAWS—LOUISIANA
complying with the general corporation laws, ror che purpose of carry­
ing on any lawful business or enterprise not otherwise specially pro­
vided tor. except banking and insurance, homestead and building
and loan associations. Fifty per cent of capital stock must be sub­
scribed before filing articles of incorporation and 50 per cent of all
stock subscribed must be paid in before corporation engages in busi­
ness and the remainder in twelve months under penalty of dissolution.
The legislature can not pass a special act conferring corporate powers.
Corporation committing a trespass or damage may be sued at. place
where it occurred. [Act 130 of 1926.] (See Act 154 of 1902 for for­
mation of corporations for works or public improvement.) Act, 120
of 1902 provides for organization, etc., of local and foreign building
and loan or homestead associations. No corporation can declare
dividends out, of its capital stock, under penalty of forfeiture of its
charter. Annual meetings of corporations must be held at domicile.
Foreign Corporations may be licensed and taxed by a mode differ­
ent from that provided for home corporations. No domestic or for­
eign corporations shall do any business in this State without having
one or more known places of business and an authorized agent or
agents in the State upon whom process may be served. All corpora­
tions (except mercantile corporations) domiciled out of the State and
doing business in the State in default of filing with the secretary of
state a declaration of the place of its locality or domicile together with
a resolution authorizing the appointment of an agent together with
a power of attorney appointing an agent in the State upon whom
service of process may be made, may be sued upon any cause of action
in any parish where the right of action arises and such corporation
must show its principal place of business and the places of business
It proposes to have in Louisiana.
Foreign corporations must file in office of secretary of state a written
declaration setting forth and containing the place or locality of Its
domicile, the places in the State where it is doing business, and the
name of its agent or other officer in this State upon whom process may
be served. (Act 54 of 1904 amended by Act 284 of 1908. Act 284
of 1908 amended by Act 243 of 1912. See Act 194 of 1912.)
Act 107
of 1922 requires foreign corporations doing business in this state to
pay a tax of one-twentieth of 1 per cent on the amount of the capital
stock employed in this state. Act to operate prospectively' only.
Act 267 of 1914 relating to corporations repealed several
previous acts and undertakes to einbodv in one act all essen­
tial details with respect to the organization, power and duties
of trading corporations, foreign and domestic. (As to nontrading corporations see Act 259 of 1914.) For non-par value
stock in corporations, see Act 96 of 1924, as amended bv Act 148
of 1926.
Courts. Terms and Jurisdiction. In parishes other than Orleans;
Justices’ courts, concurrent with District courts up to $100. 2.
District courts, concurrent with justices’ courts, up to $100, exclusive
for all civil matters over $100, and in all probate matters and appellate
jurisdiction in all civil matters in justices' courts. In Orleans parish,
1. City courts, exclusive up to $100. Concurrent with Civil District
court from $100 to $300. 2. Civil District court, concurrent up to
$300, exclusive over $300. Justices and city courts open at all times.
In parishes other than Orleans, district courts shall hold continuous
sessions during ten months of the year. In parish of Orleans, civil
district court sits during 9 and H months of the year, but shall remain
open on all legal days during the whole year for granting interlocutory
orders, issuing writs, trials of rules to quash same, trying proceedings
Instituted or on appeal therein by a landlord for the possession of
leased property, partition proceedings, and for sucn special probate
and insolvency business, as the courts en banc may by rule determine.
On all amounts up to $2,000 inclusive, and in suits for damages or
death caused by wrongful injury, an appeal may be taken to the
court of appeals, from the city and district courts respectively, and
on all amounts over $2,000, except suits for damages or death caused
by wrongful injury, to the state supreme court. An appeal lies on
both law and facts. Appeals from the city courts shall be tried de
novo, except suits for amounts between $100 and $300.
Days of Grace. Abolished.
Depositions. To take testimony of witness residing out. of parish
or State it is necessary to file motion duly sworn to showing non-resi­
dence and materiality of evidence. Written interrogatories are pre­
pared and served on opposite party, or his counsel, who has three days
in which to cross. Commission then issues, directed to some proper
officer, with interrogatories and cross interrogatories annexed, who
must cause witness to appear before him to answer tinder oath the
direct and the cross interrogatories. He should reduce answer to
writing, read same to witness and cause witness to sign same. The
officer then prepares a process verbal of the whole, attaches it to the
commission, interrogatories, etc., and should return same to the court
issuing the commission within the time fixed therein for taking the
deposition. The deposition of a fugitive from justice is not, admissible
in evidence. (Also see Act 176 of 1910 and 9S of 1926.) The uniform
foreign depositions act has been adopted (Act 34 of 1922).
Descent. If one dies leaving no descendants, but a father and
mother and a brother and sister, or descendants of these last, the
succession is divided into two equal parts, one goes to father and
mother, the other to brothers and sisters or their descendants. If
either father or mother of deceased dies before him, the portion which
would have been inherited by such deceased parent goes to thebrothers and sisters of the deceased, or tneir descendants. If deceased
left neither descendants nor brothers nor sisters, nor descendants from
them, nor father nor mother, but only other ascendants, they inherit
to the exclusion of all collaterals. If ascendants in paternal and
maternal lines are all of the same degree, the estate is divided into
swo parts, one goes to ascendants on the paternal and the other to
ascendants on the maternal side. If there is in the nearest degree
but one ascendant in the two lines such ascendant excludes all other
ascendants of a more remote degree If one dies leaving no descen­
dants, and his father and mother survive, his brothers and sisters,
or their descendants, take half of his estate. If the father or mother
only survive, brothers and sisters, or their descendants, take threefourths. If one dies leaving no descendants nor father nor mother,
his brothers and sisters, or their descendants, take all the estate.
The partition of the half.. the three-fourths, or the whole of a suc­
cession falling to brothers and sisters as above set forth, is made equal
if they are of the same marriage if of different marriages thesuccassion
Is equally divided between the paternal and maternal lines of the
deceased, lr deceased died without descendants, leaving neither
brothers nor sisters, nor descendants from them, nor mother nor
father, nor ascendants in the paternal or maternal lines, his succession
passes to his other collateral relations, the one nearest In degree
excluding the others. When the deceased has left, neither lawful
descendants nor lawful ascendants, nor collateral relations, the law
calls to his inheritance either the surviving husband or wife, or his
or her natural children, or the State. If natural mother lert no
lawful children or descendants, her natural children, acknowledged
by her, inherit to the exclusion of her father and mother and other
ascendants or collaterals of lawful kindred. Natural children inherit
from their natural father, who has acknowledged them, when he has
left no descendants nor ascendants, nor collateral relations, nor
surviving wife, and to the exclusion only of the State. Donations
inter vivos or mortis causa cannot exceed two-thirds of the property
of the disposer if he leaves at his decease a legitimate child, one-half
if he leaves two children, and one-third if he leaves three or more.
If he leaves no descendants but a mother or father or both, cannot
exceed two-thirds. If a brother or sister or both as well, cannot exceed
three-fourths. The remaining third or fourth, as the case may be
is the legitime of the father or mother. Tax; To descendants, etc.,
2 per cent from $5,000 to $20,000, 3 per cent above $20,000. To
collaterals, 5 per cent on $1,000 to $20,000, 7 per cent above $20,000.
To strangers 5 per cent from $500 to $5,000, 10 per cent above $5,000.
Exemptions: $5,000 for direct descendant, ascendant, or surviving
spouse, $1,000 to collaterals, $500 to strangers. Bequests to educa­


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2249

tional, religious or charitable institutions located within the state are
exempt. R. C. C. 915 amended to read, “When either husband or
wife shall die, leaving neither a father nor mother nor descendants,
and without having disposed by last will and testament of his or her
share of the community property, such undisposed of share shall be
inherited by the surviving spouse in full ownership. In the event the
deceased leave descendants his or her share in the community estate
shall be inherited by such descendants in the manner provided by
law. Should the deceased leave no descendants, but a father and
mother, or either, then the share of the deceased in the community
estate shall be divided in two equal portions, one of which shall go to
the father and mother or the survivor of them, and the other portion
shall go to the surviving spouse.
Divorce. (See Separation from Bed and Board.)
Dower. (See Married Women.)
Employers Liability Act. There is a general Employers Liability
Act in the State setting forth special compensation for various injuries.
Execution. Propertv taken under a writ of fieri facias must be
advertised and appraised, and can not be sold for less than two-thirds
of the appraised value, until it has been re-advertised. Advertise­
ments of movables three times in ten days—of real estate once a
week for thirty days. If two-thirds of appraised value is not bid.
property must be re-advertised for fifteen days, and sold on a credit
for twelve months for whatever it will bring. There is no redemption
of property sold under execution or mortgage. No stay of execution
Is given except on appeal, and execution may issue at any time after
the delay for appealing suspensively has expired. Act 113 of 1906
authorizes sheriffs and constables to put purchaser of seized property
in possession. On proper petition the court can order an examination
of a judgment debtor as to his assets and liabilities. (Act 198 of 1924,)
Exemptions. To bead of family, real estate if owned and occupied
as a residence, together with certain furniture, stock, implements,
provisions, etc., the property not to exceed $2,000, means or property
of wife deducted from exemption of husband. If the property exceeds
$2,000 in value, it may be sold. Beneficiary entitled to $2,000 of
proceeds. No registry required in parishes other than Orleans.
Surviving spouse or minor hild or children may claim benefit of this
exemption. Widow or minor children surviving, entitled to $1,000 out
of deceased husband’s estate, if in necessitous circumstances, by pre­
ference over all other debts except those secured by vendor’s privilege,
conventional mortgage, and expenses incurred in selling the property.
Sheriff or constable can not seize linen and clothes of debtor or his wife,
nor his bed, nor those of his family, nor his arms and military accoutre­
ments, nor tools and instruments and books, sewing machines necessary
for the exercise of his or her calling, trade, or profession, by which he
or she makes a living, the right of personal servitude, of use and
habitation, of usufruct to the estate of a minor child, the income
of dotal property, wages or recompense for personal service (laborers’
wages) cooking stove, plates, etc., family portraits, musical instru­
ments played on by family. (Act 184 of 1918). Also proceeds of
life, health and accident insurance exempt, except for debt secured
by pledge of policy or rights under policy. (Act 88 of 1916).
Fraud vitiates all contracts. Action barred by one year limitation
to annul sale on account of fraud. For fraud on part of purchasers
of goods see Act 114 of 1912 amending Act 94 of 1896.
Garnishment. Wages earned out of this State and payable out
of this State, shall be exempt from attachment or garnishment in all
cases where cause of action arose out of this State, and it shall be the
duty of garnishees in such cases to plead such exemptions unless the
defendant Is actually served with process. (Act 165 of 1904.) (See
Attachment.)
Holidays. “Sundays, January 1st, January 8th, February 22nd,
Good Friday. June 3rd. to be known as Confederate Memorial Day,
July 4th, first Monday in September, to be known as Labor Day, Octo­
ber 12th, to be known as Christopher Columbus Day, November 1st,
Thanksgiving Day, as designated by the President of the United States,
November 11th, to be known as Armistice Day, December the 25th;
in the Parish of Orleans, Mardi Gras, and in cities of over 10,000 po­
pulation, Saturdays from 12 o’clock noon until 12 o’clock midnight.”
When a holiday falls on Sunday, the following Monday is not the legal
holiday.
Husband and Wife. (See Married Women.)
Interest. Legal rate is 5 per cent, but 8 per cent may be agreed
upon in writing. If higher than 8 per cent is charged, it is reducible
to 8 per cent. If paid, it may be sued for and recovered within two
years.
Judgments recorded in the office of the parish recorder become
mortgages from date of record upon all real estate of the debtor, and
may be thus recorded in any parish where debtor owns real estate.
They are valid for ten years, when they must be renewed.
Liens or Privileges. The following have special privileges, viz.:
1. Lessor’s privilege. 2. Privilege of the creditor on the thing
pledged. 3. Pri vilege of a depositor on the price of a thing deposited.
4. Privilege for expenses incurred in preserving thing. 5. Privilege
of the vendor of movable effects so long as they are in the possession
of the vendee. 6. Privilege of the innkepeer on the effects of the
traveler. Privileges resting upon immovables are as follows, viz.:
1. The vendor on the estate by him sold, for the payment of the
price or so much of it as is unpaid, whether it was sold on or without
a credit. 2. Architects, undertakers, bricklayers, painters, master
builders, contractors, sub-contractors, journeymen, laborers, cartmen, and other workmen employed in constructing, rebuilding, or
repairing houses, buildings, or making other works. 3. Those who
have supplied the owner or other person employed by the owner,
his agent, or sub-contractor, with materials of any kind for the con­
struction or repair of an edifice or other work, when such materials
have been used in the erection or repair of such houses or other works.
(Art. 3252.) Privilege on crops to be recorded (Act of 1890.) The
vendor of an agricultural product of the Unitea States has a five days’
privilege for unpaid purchase price in preference to all others. Privi­
lege granted employes in saw mills etc. (Act 145 of 1888. amended
by Act 52 of 1910 and Act 23 of 1912.) Widow and children left in
necessitous circumstances are entitled to an amount in husband's or
father’s succession sufficient to make $1,000 inclusive of property
already possessed by them. This privilege primes all others except
vendor’s privilege, that for expenses of selling property and con­
ventional mortgages, representing money actually loaned for not less
than one year at not exceeding 6 per cent for interest, discount and
charges.
Limitation of Actions. Limitation of actions, or prescription.
Under the law of Louisiana is a manner of acquiring ownership of
property, or of discharging debts by the effect of time and under the
conditions regulated by law.
Of the prescription by which the ownership of property is acquired.
He who acquired an immovable in good faith and by a just title pre­
scribes for it in ten years, provided he has had continuous and
uninterrupted possession during that time. This runs against minors
in twenty two years from birth and all others excepted by law. Act
161 of 1920.
The ownership of immovables is prescribed for by thirty years
without any need of title, and without reference to good faith, pro­
vided there has been continuous and uninterrupted possession as
owner during this time.
If a person is possessed in good faith, and by a just title of a movable
during three years without interruption he acquires the ownership
by prescription, unless the thing was stolen or lost.
When the possessor of any movable whatever has possessed it for
ten years without interruption he shall acquire the ownership of it
without being obliged to produce a title, or to prove that he did not
act in bad faith.

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BANKING AND COMMERCIAL LAWS—LOUISIANA

Prescription runs against all persons unless they are included In
some exception established by law.
Minors and persons under interdiction cannot be prescribed against
except in certain cases provided by law.
Husbands and wives cannot prescribe against each other.
Of the prescription which operates a release from debt. Various
actions are prescribed by one year. Among these may be mentioned
those of masters and instructors for lessons wnich they give by the
month. Those of inn keepers, on account of lodging and board which
they furnish. Those of retailers of liquors. Those of workmen,
laborers and servants, for the payment of their wages, and actions
for injurious words, whether verbal or written. Those for damages
caused by animals, and all actions for damages or torts.
This prescription runs against minors and interdicted persons,
reserving, however, to them their recourse against their tutors and
curators.
Actions by or against common carriers for collection or recovery
of freight charges or for loss of or damage to freight are prescribed by
two years from date of shipment.
The following actions are prescribed by three years, to wit: First—
That for arrearages of rent charges, annuities and alimony, or for hire
of movables and immovables. Second—That for payment of money
lent. Third—That for the salaries of overseers, clerks, secretaries
ana of teachers who give lessons by the year or quarter. Fourth—That
of physicians, surgeons and apothecaries for visits, operations and
medicines. Fifth—That of parish recorders, sheriffs, clerks and
attorneys for their fees and emoluments. Sixth—That on accounts
of merchants. Seventh—That on all other accounts. Eighth—Tax
inscriptions. Ninth—Licenses. Tenth—Inheritance taxes as against
purchasers and third persons in good faith.
This prescription runs against minors and interdicted persons,
reserving to them, however, their recourse against their tutors and
curators.
Four years’ prescription applies to special action—as action of minor
against tutor respecting acts of tutorship; of minor for rescission of
judgment; action of lesion.
The following actions are prescribed by five years, to wit: Actions
on bills of exchange, notes payable to order or bearer, except bank
notes. Those on all effects negotiable or transferable by endorsement
or delivery, and those on all promissory notes negotiable or otherwise.
Inheritance taxes as against heirs in five years from opening of suc­
cessions.
This prescription runs against minors and interdicted persons,
reserving to them, however, their recourse against their tutors and
curators.
Second—Actions for the nullity or rescission of contracts, testaments
or other acts.
Third—Actions for the reduction of excessive donations.
Fourth—Actions for the rescission of partitions.
All informalities connected with or growing out of any public sale
made by any person authorized to sell at public auction, shall be
prescribed against by those claiming under such sale after the lapse
of five years from the time of making it, whether against minors,
married women or interdicted persons.
All personal actions, except those above enumerated, are prescribed
by ten years.
Actions for immovable property, or for an entire estate, as a suc­
cession, are prescribed by thirty years.
Limitation on Tort Actions. All actions on torts are prescribed
by one year.
Limitations to Suits.
Prescription — Accounts stated and
acknowledged in writing are prescribed only by ten years. (Act of
1888.) Personal actions one year. Action for torts of all kinds; for
injury to or non-delivery of merchandise shipped on vessels; for fees
of justice, notary, or constable; for innkeepers’ accounts; for accounts
of retailers of liquors; for wages of laborers or sailors; for freight; and
for tuition by month. Three years: Action for arrearages of rent
charges, or hire of movables or immovables or money lent; for salaries
of overseers, clerks, or tuition by quarter or year; for fees of physicians
apothecaries, attorneys, sheriffs, clerks, and recorders; on open
accounts of merchants, whether wholesale or retail, and others. Four
years: Actions by minors against their tutors, counting four years
from majority. Five years: Action on bills of exchange or promis­
sory notes, counting from maturity, and for nullity of contracts or
wills; for revision of partitions; to set aside public and judicial sales
for informalities. Ten years: All other actions: the right to a usu­
fruct or servitude, all judgments, whether rendered within or without
the State, but judgments may be revived before lapse of ten years,
and are then good for ten years from date of revival. Prescription of
ten and thirty years now runs against minors, interdicts and married
women (Act 161 of 1920). Husband and wife can not prescribe
against each other. Promise to pay or payment on account will
interrupt prescription. Only written promise to pay will revive
when prescription has accrued.
Limited Partnerships. (See Partnership.)
Married Women. Act 132 of 1926 provides that a married woman,
whether a resident of this state or not, shall be competent to contract
debts, purchase, sell and mortgage, and to bind and obligate herself
personally and with reference to her separate and paraphernal prop­
erty; to appear in court and to sue and be sued; to sell, alienate or
otherwise dispose of, and to mortgage and pledge, or otherwise encum­
ber, her separate and paraphernal property for the benefit of herself,
her husband or any other person, and to bind and obligate herself
personally or as surety for her husband or any other person; and that
such rights may be exercised without the necessity of obtaining the
authority of her husband or the judge; provided, however, that the
rights granted by said act shall not apply to married women under
the age of eighteen years or to married women who are interdicted,
nor shall anything therein contained be deemed or construed to affect
in any way the statutes of this state establishing and regulating the
matrimonial community of acquest and gains and prescribing what
shall be deemed separate property of the spouses. Revenues of all
separate property administered by the husband, and all property
acquired by either husband or wife after marriage, except by donation
or inheritance constitute part of community, unless bought with the
separate means of either and as a separate acquisition. Wife has no
dower in her husband's real estate. The wife can have no claim upon
the property of the husband to the prejudice of third parties, unless
recorded. Where one of the spouses is agent for the other, he or she
may be witness for the other in a matter connected with that trans­
action. Act 157 of 1916 permits but does not compel one spouse to
be a witness either for or against the other in any proceeding, civil or
criminal. After dissolution of marriage by death or divorce the
survivor is entitled to one-half of all property remaining after payment
of debts, acquired during marriage, and in case of death, if there is
issue, the usufruct of the other half, unless this half is disposed of By
will of deceased spouse. Wife cannot be a witness to husband’s will.
(See “Liens and Privileges.”)
Monopolies or Trusts are regulated and rights are given against
them similar to those existing under Federal Law. The state author­
ities may take action and the individual may recover threefold damages
sustained. See Acts Nos. 11 and 12, extra session 1915.
Mortgages can be foreclosed at any time after maturity of the
debt, by instituting a regular suit and obtaining judgment thereon, or
if the act imports a confession of judgment in favor of the holder, he
can apply to the court for an order directing the sheriff to seize and
sell the property. All mortgages must be recorded before they can
have any effect as against third parties. Trust deeds are not legal,
except as provided under "Trusts." There is no redemption of prop­
erty sold under mortgage. All tacit mortgages have been abolished
since 1870. In making sales or giving a mortgage upon his property,
it is not necessary for the husband to obtain the signature of the wife,
except as affecting the homestead and family home. A mortgage
resulting from recording a judgment cannot have that effect until


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after adjournment of court. [Act 1888.] Lessee, sub-lessee or
assignee of lease or sub-lease may mortgage his interest in such lease
or sub-lease, together with his interest in buildings, etc., upon leased
premises: provided, such mortgage shall not affect, diminish or destroy
lessor’s privilege. Leases and contracts to explore for oil, gas and
minerals may be mortgaged. [Act 232 of 1910.|
Negotiable Instruments. “Negotiable Instrument Act” (No.
64 of 1904) changes in many respects the laws formerly applicable to
bills and notes. Under it, days of grace, which formerly were custom­
ary, are abolished. Instruments are payable to bearer if made payable
to the order of a fictitious or non-existing person, when such fact is
known to the one making it so payable; when name of payee does
not purport to be name of any person; or when the only or last indorse­
ment is in blank. When there is a discrepancy between the words
and the figures of an instrument, the sum denoted by the words is
the sum payable. Two or more persons signing instrument contain­
ing words, “ I promise to pay,” are jointly and severally liable thereon.
Presentment for payment is unnecessary to bind party primarily
liable, but is necessary to charge drawer or indorser. Notice of dis­
honor must be given to drawer and indorser when instrument has
been dishonored by non-acceptance or non-payment, otherwise they
are discharged. A bill of exchange does not operate an assignment
of funds in hands of drawee available for payment thereof, and drawee
Is not liable till he accepts same. Holder may require acceptance
to be written on bill, and if refused, may treat the bill as dishonored.
An acceptance written on paper other than a bill, and an uncondi­
tional written promise to accept a bill before it is drawn, binds the
acceptor only in favor of a purchaser for value on faith thereof.
Drawee has twenty-four hours to decide whether he will accept or
not. A drawee who destroys a bill presented to him for acceptance,
or who fails to return the bill within twenty-four hours, is deemed to
have accepted the same. Where a signature is so placed upon a
negotiable instrument that it is not clear in what capacity the person
making same intended to sign, he is deemed an indorser. Foreign
bills must be protested for non-acceptance or non-payment. Where
a bill does not appear on its face to be a foreign bill, protest thereof
in case of dishonor is unnecessary. A check must be presented for
payment within a reasonable time or drawer will be discharged from
any loss caused by delay. Bank is not liable to holder of a check
until it accepts or certifies same. When the last day to do an act
required or permitted to be done under the act falls on a Sunday or
legal holiday, it may be done on the next succeeding secular or busi­
ness day. When day of maturity falls on a Sunday or a holiday, the
Instrument is payable on next succeeding business day. Instruments
falling due on Saturday are to be presented for payment on next
succeeding business day, except that instruments payable on demand
may, at option of holder, be presented for payment before 12 o’clock
noon on Saturday when that entire day is not a holiday. If the day
or days next succeeding the protest for non-acceptance or non-pay­
ment shall be days of puolic rest or legal holidays or legal half holi­
days, then the day next following shall be computed as the first day
after the protest. Service of citation shall not be waived, nor judg­
ment confessed, by any document under private signature executed
rior to the maturity of the obligation sued on. Acceptance must
e in writing and signed by drawee. It must not express that drawee
will perform his promises by any other means than payment of money.
[Act 189 of 1908.1
Partnership, Limited and Special. Stipulations that one shall
participate in the profits and shall not contribute to losses is void,
both as regards partners and third persons. Partnerships are divided
as to their object into commercial and ordinary partnerships. Com­
mercial partnerships are such as are formed: 1. For the purchase
of any personal property, and the sale thereof either in the same
state or changed by manufacture. 2. For buying or selling any
personal property whatever, as factors or brokers. 3. For carrying
personal property for hire, in ships or other vessels. Ordinary part­
nerships are all such as are not commercial. There is also a species
of partnership which may be incorporated with either of the other
kinds, called partnership in commendam. It is formed by contract,
by which one person or partnership agrees to furnish another person
or partnership a certain amount, either in property or money, to be
employed by the person or partnership to whom it is furnished, in
his or their own name or firm, on condition of receiving a share in
the profits, in the proportion determined by the contract, and of being
liable to losses and expenses to the amount furnished and no more.
Partner in commendam cannot bind other partners by his act. Part­
nership in commendam must be made in writing; must express amount
furnished or agreed to be furnished: the proportion of profits which
partner Is to receive and expenses and losses he is to bear ; must state
whether it be received in goods or money, etc.; must be signed by
parties in presence of at least one witness and recorded in full within
six days in mortgage office. If branch houses are established the con­
tract must be recorded in parish where branches are located. If
partner In commendam allow his name to be used, or if he take any
part in the business of the partnership, he will be liable as a general
partner. Ordinary partners are not bound in solido for debts of
artnership, and no one of them can bind his partners unless they
ave given him power to do so; each is bound for his share of the debt
in proportion to the number of partners. Commercial partners are
each liable for the entire debts of the partnership.
Powers of Attorney. May be written or oral. May be either
general for all affairs or special for one affair only. One conceived in
general terms confers only power of administration; to sell mortgage
or do any other act of ownership, the power must be express and
special.
Probate Law. There is no special probate court. District courts
are vested with probate jurisdiction. Successions are opened upon
petition of interested persons in the parish where the deceased resided
If he had a domicile or fixed place of residence in the state; in the parish
where he left his landed property, if he had neither domicile nor
place of residence in the state; or in the parish in which it appears
from the inventory that his principal property was situated, if he
left property in several parishes; in the parish where he died, if he
had no certain domicile nor any fixed property. If presumptive heir
does not begin legal proceedings to settle succession within ten days
after death of “de cujus,” creditors may demand that he state whether
he accepts or rejects succession, or if no heirs appear, that a curator
ad hoc be appointed to settle the estate. The judge appoints an
administrator when deceased (eaves no will. Administrators must
render annual accounts, and are allowed 2j^ per cent on the inven­
tory as commissions. Attorneys at law are appointed to represent
absent heirs. Properties acquired during marriage are presumed to
be community property, and surviving spouse is owner of one-half.
When either husband or wife dies, leaving no ascendants or descend­
ants, and without having disposed bv will of his or her share in the
community, such undisposed of share shall be inherited by the surviving
6pouse in full ownership. (See Successions).
Protest. (See Negotiable Instruments.)
Separation from Bed and Board. May be claimed reciprocally
for: 1. Adultery. 2. When spouse condemned to infamous pun­
ishment. 3. Habitual intemperance, excesses, cruel treatment, or
outrages, when such renders living together insupportable. 4. Public
defamation of one spouse by the other. 5. Abandonment. 6.
Attempt of one spouse against life of other. 7. When one spouse
charged with infamous offense actually flees from justice. Divorce
may now be obtained if both parties have lived separate for seven
years.
Judgment of Divorce “a vinculo matrimonii" can be obtained
immediately for first two causes. For other causes it is necessary
first to obtain judgment of separation “a mensa et thoro." After
judgment of separation from bed and board, if there has been no
reconciliation, party in whose favor judgment is rendered can obtain
final divorce one year after finality of judgment of separation. Party

BANKING AND COMMERCIAL LAWS—MAINE
against whom judgment is rendered must wait two years. When
marriage is celebrated outside of state parties cannot obtain divorce in
•tate on grounds occurring outside of state.
Taxes. Taxes on real estate cannot be enforced until the expira­
tion of the year for which they are levied and after legal notices to
delinquents and advertisement. Lands sold for taxes are redeemable
within one year, by the owner, his agent, or heirs, or any creditor,
on payment of the purchase money, with 20 per cent interest and
costs, and all subsequent taxes paid. Lands sold for taxes due prior
to 1880 are not redeemable. State taxes are. 5 M mills on actual value,
parish taxes not exceeding 4 mills. City of New Orleans taxes are
27H mills on 85 per cent of actual value, other municipal taxes not
to exceed 7 mills. Delinquent state taxes bear interest at 2 per cent
a month, city taxes, 10 per cent a year.
Trusts. Act 107 of 1920 permits donations inter vivos or mortis
causa to be made whereby individuals or State Bank and Trust com­
panies or banks organized under Federal laws may be made trustees
These trusts to last not longer than 10 years after death of donor
unless the cestui is a minor, at death of donor, in which case they may
last till 10 years after his majority. The legitime may thus be ad­
ministered in trust.
Wills. There are four different kinds of wills, viz.: The olo­
graphic, nuncupative by public act, nuncupative by private act, and
mystic (or sealed) will. The olographic will must be wholly written,
dated and signed by the testator, and may be made within or with­
out the State. Nuncupative will by public act is written by a notary
in presence of three witnesses, over the age of 16 years complete,
not insane, deaf, dumb or blind, residing in the place where will
Is executed, or five witnesses not residents of the place, at the dictation
of the testator. Nuncupative will by private act and mystic wills
are subject to many formalities which may be best obtained by refer­
ence to Civil Code Arts, 1581-1587 both inclusive. All persons
of sound mind over sixteen years of age may dispose of their property
by will. Wills executed without the state given force and effect
provided same be in writing and subscribed by testator and follows
form of place where executed, or of testator’s domicile. (See act 176
of 1912.)

SYNOPSIS OF

THE LAWS OF MAINE
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Pupsifer & Ludden,
OS Maine St.. Lewiston, Me.
(See Card in Attorneys' List.)
Acknowledgments. (See Deeds.)
Actions. At law begun by writ, under common law practice, but
containing declaration. Suits in equity are begun by bill of comlaint, filed with clerk of court and subpoena issued by him, or may
e inserted in writ of attachment and served by copy of bill and writ.
On motion non-resident plaintiffs required to give security for costs.
An affidavit, in actions brought, on an itemized account, made before
a Notary Public, makes a prima facie case, if without the State
authority of Notary must be certified by clerk of court of record.
Administration of Estate. (See Estates of Deceased Persons.)
Affidavits. Affidavits may be made before a notary public or
Justice of the peace. In some court matters authority of magistrate
must be proved by certificate of clerk of a court of record.
Aliens. Aliens may hold and convey real estate and personal
property. Wills of aliens may be proved and allowed in this State.
Widow of a citizen of United States who was an alien when she married
him has right of descent in his estate (but see Married Women).
Arbitration. Judge of probate court may authorize executors or
administrators to adjust by arbitration claims for or against the
estates represented by them. All controversies which may be the
subject of personal act ion may be submitted, by the parties, to referees
for arbitration
Majority of referees may make report to Supreme
or Superior Courts.
Arrest. (See Executions.) In actions ex delicto, on mesne proc­
ess and execution, as of course without affidavit or order: in actions
ex contractu, on mesne process, upon affidavit of the creditor, his
agent, or attorney, that he has reason to believe and does believe
that the debtor is about to depart and reside beyond the limits of
the State and carry with him means of his own more than are neces­
sary for his immediate support, and that at least $10 is due on the
claim; on execution, only after supplementary proceedings and fraud
proven, but if contract judgment or action existing March 17, 1887,
arrest on execution. Debtors arrested on mesne process or execution
may disclose, give up property not exempt from attachment and be
discharged from arrest, or may give bond and disclose according to its
terms. No arrest in actions ex contractu for less than $10, and none
of married women in civil actions.
Assignments. Common law assignments for the benefit of
creditors may be made, and after four months will be good against
bankruptcy proceedings. Assignments of wages must be recorded
in town clerk's office.
Attachment. All property not exempt attachable on mesne proc­
ess as of course without affidavit; security for costs by indorser of
writ only if creditor is non-resident; lien by attachments in the order
in which they are made continue for thirty days after judgment
(extended where execution is delayed, appeal from taxation of costs
is taken, or decision of law court certifier1 down in vacation), within
which time levy may be made. Personal property may be appraised
and sold on mesne process to avoid expense, depreciation or loss,
on request of either party and proceeds held by officer in lieu of the
property, foreign attachment (garnishment), known as trustee process,
attaches property by or debt due from trustee unless: 1. Due on
negotiable paper. 2. Money collected on process by officer. 3.
In hands of public officer. 4. Due on contingency. 5. Trustee
liable to execution on same. 6. Twenty dollars wages, for personal
labor of the debtor, wife or minor child within one month, and $10
exempt in all cases. 7. In certain cases money due on life and
accident policies, and from fraternal beneficiary associations. (See
Creditors Bills.)
Banks. Savings bank business and discount banking permitted
only under special charter, and under state supervision. Trust com­
panies may be organized under general statutes on obtaining approval
of state bank examiner. General statutes relating to discount bank­
ing repealed by Laws 1903, c. 166. Foreign banking associations hav­
ing a branch here pay a tax of three-fourths of one per cent per annum
on the amount of business done in this State. Savings banks have
no capital, and do business only for the benefit of depositors, under
statute regulations restricting investments, requiring reports under
oath and examinations by bank examiner. Must not pay over 2 1-2
per cent dividend semi-annually. Franchise tax is one-half per
cent, regulated to favor home investments. Use of the words " bank,"

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2251

"trust company," ana similar words in designating a business, for­
bidden, except by corporations organized as above or under laws of
United States. Corporations, if licensed by bank commissioner may
receive savings deposits from their employees. Dealers in securities
must be registered with bank commissioner and are subject to certain
regulations.
Collaterals. (See Mortgages.)
Conditional Sales, Consignments. No agreement that personal
property bargained and delivered to another shall remain the property
of the seller until paid for, is valid unless in writing and signed by the
person to be bound. Such agreement, in whatever form it may be,
is not valid except as between original parties, unless recorded in the
office of the clerk ot the town in which the purchaser resides at the
time of the purchase. All such property whethers aid agreements
are recorded, or not shall be subject to redemption. This does not
apply to goods consigned for sale.
Conveyances. (See Deeds.)
Corporations. Three or more persons may rorm a corporation to
carry on any lawful business excepting banking, insurance, construct­
ing and operating railroads, savings banks, trust companies, or cor­
porations intended to derive profits from the loan or use of money,
and safe deposit companies, but corporations may be formed under
the general law for the construction and operation of railroads ourside
the State of Maine. Corporations for other purposes, excepting for
municipal purposes, and where the objects of the corporation can not
be attained without special acts, are also formed under genera! laws.
Organization becomes void unless corporation begins business within
two years. Corporation may capitalize to an unlimited amount and
may increase or decrease the amount of their capital or the par value
of the shares. No portion of capital is required to be paid in; stock
may be issued for property or for services and in absence of fraud
the judgment of the directors as to the value of such property or
services is conclusive, the stock thereupon becoming fully paid.
Only original subscribers and takers of stock are liable on same to
extent of unpaid par value and then only for debts contracted during
their ownership of stock, and action to enforce such liability must be
commenced within two years and can be maintained only by a judg­
ment creditor of the corporation who shall have begun proceedings
to obtain such judgment against the corporation during the owner­
ship of such stock or within one year after its transfer by such stock­
holder is recorded on the corporation books. Directors must be
stockholders or members of another corporation which is a stockholder
If corporation fails for six months to elect directors, court may appoint.
Corporations must pay to the State upon organization, a fee as fol­
lows: Where the capital stock is $10,000 or less, $10; exceeding
$10,000 and up through $500,000, $50; above $500,000, $10 for every
$100,000 of capital. Other fees for organization are: attorneygeneral's fee $5; register of deeds $5, secretary of state $5. The
annual franchise tax is as follows: $5 provided authorized capital
does not exceed $50,000; exceeding $50,000 and up to $200,000.
$10; exceeding $200,000 and up to $500,000, $50; exceeding
$500,000 and up to $1,000,000, $75; and the further sum of
$50 per $1,000,000 or any part thereof in excess of $1,000,000. Cor­
porations which have suspended business temporarily and have been
excused from filing returns of amount of capital stock, etc., are not
liable for franchise tax. Meetings of stockholders must be held within
the State. Clerk must be resident and keep stockholders' records In
the State. His records are open to inspection by stockholders but
not by mere creditors. With the exception of banking corporations
no public reports are required except one to the secretary of state
showing names and residences of officers and amount of capital stock.
Delivery of certificate of stock to bona fide purchaser or pledgee for
value together with written transfer of same or written power of
attorney to sell, assign, and transfer same, signed by owner of cer­
tificate, transfers title against all parties. Foreign corporations have
practically same rights as domestic, but are required to file copy of
charter with secretary of state, also a copy of the by-laws, and are
also required under severe penalties to file certificate showing among
other things the names of officers, amount of capital stock authorized,
amount issued and amount paid in; also must file certificate showing
any change in above particulars. Such corporations must also appoint
a resident of Maine, having an office or a place of business'in the
state, to be its attorney on whom process may be served in any legal
proceeding. Corporations may dispose of their franchises on majority
vote of the stockholders; may sue and he sued, and have generally
the powers of individuals. Public service corporations are subject
to a Public Utilities Commission.
Courts. Terms and Civil Jurisdiction. Supreme judicial court:
Two or three terms a year in each county; unlimited jurisdiction except
as specified below; full jurisdiction in equity; appellate jurisdiction
en banc on question of law, from trial terms and superior courts.
Superior courts: In Cumberland County except equity, real actions,
extraordinary legal remedies and some others; exclusive jurisdiction
with exceptions to $500 and in divorce, concurrent jurisdiction above
$500; sits first Tuesday of every month, except June, July, and
August. Kennebec County; exclusive jurisdiction, with exceptions
to $500; concurrent in habeas corpus and divorce; sits second Tuesday
of January and first Tuesday of April and September at Au.usta;
second Tuesday of June and November at Waterville. Androscoggin
County; exclusive jurisdiction, with exceptions to $500; concurrent in
divorce; sits at Auburn first Tuesdays of February, April, June,
October and December. Courts of probate: Usual jurisdiction con­
current in equity of probate matters. Municipal courts and trial
Justices: Exclusive jurisdiction of forcible entry and detainer and in
other cases up to limited amount; appeals to superior court where
established, and elsewhere to supremo judicial court.
Creditors’ Bills. Bill in equity may be maintained to reach
property of debtor which cannot be reached by process at law, and
Is not exempt from attachment; also property conveyed in fraud of
creditors and property secreted so that it is not replev iable.
Days of Grace. (See Negotiable Instruments.)
Deeds. Any owner of real estate having right of entry may con­
vey it by deed. No estate greater than tenancy-at-will can be created
except in writing. Deeds must be acknowledged by a grantor or
one of them or by an authorized agent, executing the same, before
a justice of the peace, notary public having a seal, or woman qualified
to take acknowledgments; outside the State, and in the United States,
before a clerk of a court of record having a seal, notary public; or
commissioner of deeds for this State, and in a foreign country before
a notary public, or a consul or minister of the United States, but if
magistrate acting outside of State has no official seal, his authority and
the genuineness of his signature must be authenticated by the clerk of
a court of record in county where he resides. Unacknowledged deeds
cannot be recorded. No special form of acknowledgment required.
Deeds must be recorded to be valid against parties without notice of
the conveyance. Deeds must be under seal, but witness is not
required for validity although usual to have one. Leases for more
than seven years must be recorded. Trusts concerning real estate
can be created only in writing, except those arising by implication
of law;
Depositions. Depositions may be taken by disinterested justice
of the peace or notary public; may be taken when deponent is unable
through age, infirmity, or sickness to attend at place of trial; when
deponent resides out of, or is absent from the State; when deponent
resides in town other than that in which trial is to be held, etc. Depo­
sitions so taken may be used In all civil suits or causes, petitions for
partition of land, libels for divorce, prosecutions for the maintenance
of children, petitions for opinions in trial before courts of arbitrators,
referees and county commissioners, and In cases of contested senatorial
or representative elections. Depositions or affidavits may also be
taken In applications for pensions, bounty, or arrears of pay under

2252

BANKING AND COMMERCIAL LAWS—MAINE

any law of the United States. Courts may Issue commissions to
take depositions out of the State, or they may be taken out of State
by a justice, notary, or other person empowered, but In the latter
case it Is within the discretion of the courts to admit or reject them.
Descent and Distribution of Property. (See Estates of De­
ceased Persons.)
Dower. Abolished by laws of 1895, chap. 157, taking effect as
to persons not then married. May 1, 1895; as to others, Jan. 1, 1897.
Wife or husband may bar the right by inheritance to one-third or
one-half, as the case may be, of realty by joining in the other’s deed,
or by sole deed, or by ante-nuptial settlement, or by jointure. Either
refusing to join in other's conveyance (or if incapacitated with no
guardian in this state, other being a non-resident) may be barred of
inheritance upon application to supreme judicial court and decree
after hearing. (See Estates of Deceased Persons.)
Estates of Deceased Persons. One year after notice of apointment allowed creditors to present claims and suit must be
egun and service of process made within twenty months after such
notice of appointment. Allowance to widow and minor children,
made by court from estate. Non-resident executor or administrator
must appoint attorney. Time of demand or notice extended for absent
creditor if further assets, but prior payments not disturbed thereby.
No administration granted after twenty years. The real and personal
estate of a person deceased intestate (excepting wild lands conveyed by
him) being subject to the payment of debts descends according to the
following rules: 1. If he leaves a widow and issue, one-third to
the widow. If no issue, one-half to the widow. And if no kindred,
the whole to the widow. And to the widower shall descend the same
shares in his wife’s real and personal estate. There shall likewise
descend to the widow, or widower, the same share in all such real
estate of which the deceased was seized during coverture, and which
has not been barred, or released, as herein provided. In any event,
one-third shall descend to the widow or widower free from the pay­
ments of debts. 2. The remainder of which he dies seized, and if
no widower, or widow, the whole, together with all wild lands shall
descend in equal shares to his children, and to the lawful issue of a
deceased child by right of representation. If no child is living at
the time of his death, to all his lineal descendants; equally, if all are
the same degree of kindred; if not. according to the right of repre­
sentation. 3. If no such issue, it descends to his father and mother
in equal shares. 4. If no such issue, or father, it descends one-half
to his mother. If no such issue or mother, it descends one-half to
his father. In either case, the remainder, or if no such issue, father
or mother, the whole descends in equal shares to his brothers and
sisters, and when a brother or sister has died, to his or her children
or grandchildren by right or representation. 5. If no such issue,
father, brother or sister, it descends to his mother. If no such issue,
mother, brother or sister, it descends to his father. In either case,
to the exclusion of the issue of deceased brothers and sisters. 6. If
no such issue, father, mother, brother or sister, it descends to his next
of kin in equal degree; when they claim through different ancestors,
to those claiming through a nearer ancestor, in preference to those
claiming through an ancestor more remote. 7. When a minor dies
unmarried, leaving property inherited from either of his parents, it
descends to the other children of the same parent, and the issue of
those deceased; in equal shares if all are of the same degree of kindred;
otherwise, according to the right of representation. 8. If the
Intestate leaves no widower, widow or kindred, it escheats to the
State. An illegitimate child is an heir of its parents who intermarry;
also of its mother, also of its father, who adopts it or acknowledges
it before a magistrate: and in any case where the child is treated as
an heir it inherits from the lineal and collateral kindred of the parent,
and they from it. (See Wills.)
Executions issue after twenty-four hours from rendition of judg­
ment. returnable in three months, renewable within ten years after
No stay except by order of court for cause and one year against absent
defendants unless bond filed; levied on real estate by appraisal and
extent, also on real estate and interests in the same and franchises
and personal property by sale; money and, by consent, circulating
notes applied directly. Real estate sold on execution may be re­
deemed in one year. Attaching creditor may within forty-eight
hours after notice redeem personal property of debtor which is subject
to mortgage pledge, or lien; may also redeem real estate subject to
mortgage or other lien. Special provisions for redemption of certain
other special classes of property, such as buildings on leased lands,
franchises, etc.
Exemptions from Attachment and Execution. Homesteads,
not exceeding in value $500, when duly registered; debtor’s apparel,
necessary furniture for family, not exceeding in value $100; bed and
bedding for each two persons; family portraits, bibles, school books
In use; State statutes; library, $150; regular pew; cook stove and
iron warming stoves; charcoal, twelve cords of wood, five tons an­
thracite coal, fifty bushels bituminous coal, $10 worth of lumber
wood, or bark; produce of farms till harvested; barrel of flour, thirty
bushels of corn and grain, potatoes for family, one-half acre of flax
and manufactures therefrom for family; tools of trade, and materials
and stock, $50; sewing machine, $100; pair working cattle, or pair
mules, or one or two horses, $300; hay to keep them; harness for
each horse and mules, $20; horse sled or ox sled, $20: domestic fowl,
$50; two swine, one cow and one heifer, if no oxen, horse or mule,
two cows; ten sheep, their wool, their lambs until one year old; hay
to keep them and cattle; plow, cart, truck or express wagon, harrow,
yoke with bows, ring and staple, two chains, mowing machine; Ash­
ing boat of two tons; debtor may elect if he has more than is exempt.
Life and accident policies are exempt from creditors, except any
excess of $150 per year premium paid within two years, except suite
for necessaries. (See Attachment.)
Foreign Judgment. Action of debt lies on a foreign judgment
and record of it is prima facie evidence of indebtedness. Is conclusive
except for fraud when given by court having jurisdiction of parties
and subject matter.
Fraud. Usual common law rules as to what constitutes fraud,
fraudulent representations, etc.; also statutory penalties for fraud,
cheats, etc. Court of equity has power to afford relief. Statutory
provisions to prevent sale in bulk of part or whole of stock of mer­
chandise in fraud of creditors.
Frauds and Perjuries. No action shall be maintained upon any
contract to charge an executor or administrator upon any special
promise tc answer damages out of his own state: nor to charge
any person upon any special promise to answer for the debt, default,
or misdoings of another; nor to charge any person upon an agree­
ment made in consideration of marriage nor to charge any person
upon any contract for the sale of lands, tenements, or hereditaments,
or of any Interest therein; nor to charge any person upon any agree­
ment that is not to be performed within one year from the making
thereof; nor to charge any person upon any contract to pay a debt
after discharge therefrom under bankrupt laws of the United States
or assignment or insolvent laws of this State; unless the promise,
contract, or agreement or some memorandum thereof is in writing
and signed by the party to be charged, or his agent. No action shall
be maintained on a minor s contract unless ratified by him in writing
after becoming twenty-one years of age, except the contract be for
necessaries or real estate where he has received title and obtained
benefit. No contract for sale of goods, etc., of $30 or more in value
Is valid unless purchaser accepts or receives a portion of the goods
or gives something to bind the bargain, or In part payment thereof,
or some memorandum Is made and signed by party charged or his
agent. Contracts whereby one becomes agent for sale of lands become
void in one year unless time for termination definitely stated.
Garnishment. (See Attachment.)


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Holidays. January 1st, February 22nd, April 19th, May 30th,
July 4th, first Monday of September, Columbus Day, October 12th,
December 25th, and days of public fast or thanksgiving appointed .by
the Governor and Council, or by the President of the United States
Husband and Wife. Each may hold and deal with property
Individually, subject to right of descent in real estate. (See Estates
of Deceased Persons.) Husband not liable for debts of wife con­
tracted before marriage, nor afterward in her own name, nor for her
torts. Equity Court has special jurisdiction of disputes between
husband and wife relating to property. After petition to and decree
by probate court either may convey real property as if sole, and other
Is barred of all right, by descent where deserted without just cause
or if actually living apart for just cause, and desertion or living apart
has continued one year.
Interest. Six per cent or any other rate agreed upon in writing;
Judgments, same rate; accounts and debts not on time bear interest
from demand. Special rate in time notes does not continue after
maturity, unless so provided; nor after judgment in any case; no usury
laws. On loans for less than $300 secured by mortgage or pledge
of persona) property, the rate shall not exceed 3 A per cent per month.
Loans negotiated in this state by agent of non-resident borrower with
intent to evade usury laws of state where borrower resides are voida­
ble.
Judgments. At law; by general order at end of term on all cases
where verdict or default, unless stayed by proceedings for new trial,
or continued for judgment by plaintiff; in equity, only by decree
signed by justice. No lien except by virtue of attachment on mesne
process (q. v.) and where specially provided by law.
Liens. (Voluminous Statute Provisions, for Mechanics, Material
Men, Hotel and Boarding-House Keepers, Stable Keepers, Agister,
etc.).
Limitation of Actions. Six years; debt on unsealed contract or
liability (except judgments); actions upon judgments out of State of
court not of record; for arrears of rent; of account, assumpsit, or
case on contract or liability express or implied; waste; trespass qu.
cl. and d. b. a.; replevin; case, except slander and libel. Four years;
against sheriff. Two years; assault and battery, false imprisonment,
slander, libel and penalty. One year; escape, scire facias and on
recognizance. Eighteen months: stolen bonds and coupons, except
by owner. Twenty years: witnessed notes, bank bills, specialties,
real action, other judgment and ail other personal actions. Suit
begun when writ was made. Incapacity of plaintiff, death of either
party before or within thirty days after expiration of time, fraudu­
lent concealment of action, absence from State when cause accrues
or residence out of the State and absence afterwards, extends time.
Actions barred where both parties lived are barred here. New
promise must be in writing or part payment must be made, to extend
time. Against executors and administrators, twenty months after
filing of affidavit of notice given of appointment of executor or admin­
istrator, unless further assets or claim not matured. Against heirs
or devisees, one year after claim accrued; remedy in equity, if not
prosecuted within time limited and if without culpable neglect.
Limited Partnership. May consist of one or more general part­
ners and one or more special. Special shall contribute specific amount
of capital or property at cash value, and be not liable for debts beyond
that amount. General partners must transact the business.
Married Women have same rights and liabilities as to property
contracts and all suits as men. Wife’s property not liable for her
husband’s debts, nor his liable for her prior debts, nor for others made
on her credit. She may sue and be sued as if sole. May not be
partner of husband and not liable for family expense except by express
promise. (See Arrest, also Dower, also Estates of Deceased Persons,
also Husband and Wife.)
Mortgages. Of real estate executed and acknowledged as deeds
and must be recorded as to third parties; convey fee with condition
of defeasance. Foreclosed without possession by serving or adver­
tising notice, or by possession obtained peaceably, or by consent, or
by suit. Redemption in one year from notice or possession; power
of sale mortgages not authorized by statute and not much used.
Supreme court may authorize a mortgage by a person in possession
of an estate subject to a contingent remainder, executory devise, or
power of appointment, and such mortgage is binding on all parties.
Chattel mortgages unless and until possession taken and retained by
mortgagee to be good against third parties must be recorded in town
clerk's office where mortgagor resides when mortgage is given; or, if
any of mortgagees are non-residents, then in registry of deeds in
county where mortgagee resides, when mortgage is given. Mort­
gage on household furniture must state amount of loan, interest
rate, and cost of procuring loan. Agreements, whether in form of
note, lease, conditional sale, etc., or otherwise, that chattels bargained
and delivered shall remain property of seller till paid for, must be in
writing and recorded as chattel mortgages; such mortgages and notes
foreclosed by sixty days’ notice to mortgagor or assignee of record,
or, if out of State, by publication; redemption in sixty days. Col­
laterals pledged on notes, etc., or for the performance of anything,
after failure to pay or perform by the pledgor, may be sold by the
pledgee, he first giving written notice to the pledgor of the proposed
sale, or if his residence is unknown, by publication of notice once a
week for three successive weeks in a newspaper in the city or town
where the pledgee resides, recording said notice and affidavit, of service
of same in the clerk's office of city or town where the pledgee resides,
and after the expiration of the sixty days from the time of said record­
ing.
Negotiable Instruments. Days of grace abolished except as to
sight drafts. Falling due on Sunday or bank holiday payable and
presentable for payment on secular or business day next succeeding.
If holiday falls on Sunday then following Monday is deemed bank
holiday. On notes payable at fixed place on demand at or after a
time certain, no recovery unless demand proved there before suits
usual demand and notice to charge indorser: notarial protest proves
it; Waiver of demand and notice, acceptance of bill, draft, or order must
be In -writing and signed. Recovery from indorser without suing
maker. Rate of damages on protested bills of 100 or more payable
in this country, 1 to 9 per cent according to place. Negotiable paper
presumed to be taken in payment of debt or liability for which it is
given, unless creditor would thus lose security he otherwise would
have had. Legal holidays are January 1; February 22; April 19;
May 30; July 4; first Monday in September; Thanksgiving; Christmas,
and Arbor Day. If note reads “I promise to pay” all signers are
jointly and severally liable.
Partnership. Personal property of partnership, or interest of
partner therein, exempt from attachment on mesne process, or seizure
on execution for any individual liability or such partner: but is statu­
tory provision for reaching same after judgment. Partners in mercan­
tile enterprise must file sworn certificate with city or town clerk
where business to be carried on, showing names and residences of
partners, nature of business and partnership name. (See Limited
Partnership.)
Powers of Attorney. Usual common law rules.
Probate Law. (See Estates of Deceased Persons.)
Protest. (See Negotiable Instruments.)
Replevin. Goods or chattels wrongfully taken or detained may
be replevied by owner or party entitled to possession. Replevin bond
must be double the value of property replevied. If dismissed with­
out trial, suit may be brought on the bond, in which suit title may be
shown to mitigate damages.
Taxes may be collected by arrest, distress, or suit. On real estate
they are a lien; proceedings to enforce by sale begin upon non-pay­
ment for nine months; non-resident owners have one year from sale

BANKING AND COMMERCIAL LAWS—MARYLAND
to redeem by paying tax, costs, and 10 per cent interest from day of
sale; residents, two years with 10 per cent interest from day of sale
on whole sum of tax and costs. Land on which taxes are unpaid,
sold on first Monday in February in year succeeding the year in which
tax was assessed: sale Is of smallest fractional part of interest to one
who will pay taxes, Interest, and costs therefor. State tax assessed
by board of state assessors on gross receipts of railroads and express
companies, and telegraph and telephone lines, collected by suit.
Corporations, other than those especially provided for, pay a franchise
tax of $5.00 if authorized capital does not exceed $50,000.00; of
*10.00 if capital does not exceed $200,000.00; of $50.00, if capital
does not exceed $500,000.00; of $75.00, if capital does not exceed
$1,000,000.00; and the further sum of $50.00 for each $1,000,000.00,
or fraction thereof, in excess of $1,000,000.00. Foreign corporations
pay annual license fee of $10. Inheritance tax ranging from 1 to 7
per cent, according to degree of relationship and amount of bequest,
$500 exempt in all cases, and $10,000 exempt in case of certain near
relatives. Special exceptions and exemptions from assessment, and
special provisions for taxing personal property situated here but
owned out of the State. Real estate mortgages exempt. (See
Banks.)
Wages. Weekly payment required in most Industries. (See
Assignments, Attachment.)
Warehouse Receipts. Holder deemed true owner so far as to
give validity to contract for sale of merchandise covered, or to protect
one acting on faith of such ownership; but one taking from agent as
security for antecedent debt gets no greater right than agent. Title
to property passed by endorsement, but not in blank, to purchaser
or pledgee in good faith. Property in warehouse may be attached
as that of person named in receipt, or of last endorsee shown by books
of warehouseman. Common law rules prevail generally.
Wills. Wills must be in writing signed by the testator, or at his
request by some person in nis presence, and subscribed in his presence
by three witnesses not beneficially interested, in presence of each other,
may be made by any person of age and of sound mind, and may dispose
of all property. Wills executed in another State or country according
to laws thereof, may be proved and alloweo in this State in the county
where the testator had his residence at time of decease; if proved
without this State (at his domicile), may be allowed in any county
here where he has property. Widow or widower may within six
months waive provision in will of deceased husband or wife and claim
same share in personal property as would have had in case deceased
died intestate. (But see Husband and Wife.)
Nuncupative will must be reduced to writing within six days, or
proved by testimony within six months, from time words spoken.
No letters in such till fourteen days after decease of testator. Not
effectual to dispose of more than $100.00 worth of property unless
proved by three witnesses who acted at testator's request.

SYNOPSIS OF

THE LAWS OF MARYLAND
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by T. Howard Embert, Attorney at Law, 200-5 Linthicum
Bldg., 20 Lexington St. E., Baltimore.

(See Card in Attorneys’ List.)

In general. Bagby’s Annotated Code (1911) and Supplemen­
tary Volume (1914) embrace the Public General Laws of Maryland,
Including those of the 1914 session. By statute, the Code of 1911
has been made evidence; special reference to statutes in the following
Is therefore unnecessary.
Acknowledgments of conveyances of any interest in real or lease­
hold property for above seven years, may be made within the State,
and in the county or city in which the land, or any part of it, lies,
before a notary public, justice of the peace, a judge of the orphans'
court, a judge of the circuit court of any county, or a judge of the
supreme bench of Baltimore city. If within the State, but out of
the county in which the estate conveyed lies, they may be made
before a judge of any circuit court for the circuit where the grantor
may be, or before any judge of the orphans’ court for the city or
county in which the grantor may be, notary public, or a justice of
the peace; the official character of the justice must be certified by
the clerk of the circuit court of the county, or superior court of Balti­
more city, under his official seal, or any judge of the supreme bench
of Baltimore city, if grantor be in Baltimore city. If without the
State, they may be made before a notary public, a judge of any
court of the United States, or of any state or territory court having
a seal, or a commissioner of deeds for this State. The seal of the
officer or court to be affixed to the certificate of acknowledgment
In all cases. If acknowledged without the United States, the acknowl­
edgment may be made before any minister, consul general, vice or
consular agent or deputy, or a notary public, or a commissioner to
take acknowledgments for State of Maryland. No separate examin­
ation of a married woman is required. Defective acknowledgments
cured. (See Conveyances.)
Actions. The forms of actions, which still savor of the common
law are now very simple, any plain statement of facts constituting
a good cause of action being sufficient.
Amendment is allowed at
any time before verdict. Equitable defenses are now allowed to
be made in a court of law, 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 of the
Counties. (See Suits.)
Administration of Estates. The orphans’ court of the counties
and the orphans’ court of Baltimore City are the courts of probate.
In cases where decedent left a will, letters are granted to executor
and executrix named in the will. In granting letters of administra­
tion, where decedent died without leaving will, letters are granted:
1. To widow or child or children; 2. Grandchild; 3. Father; 4.
Brothers and sisters; 5. Mother; 6. Next of kin; 7. Largest creditor
applying for letters. In each class, males are preferred to females.
Bond is required with two sureties, or one of certain local surety
companies where authorized by their charter to act as sole surety.
When testator requests in will that executor be excused from giving
bond, court only requires nominal bond for amount sufficient to pay
estimated debts. Six months notice to creditors must be given by
publication before estate is distributed. Personal property must be
appraised, accounted for and distributed through the orphans’ court
of the county or city in which decedent resided. All sales must
be authorized and ratified by the orphans' court. By Act of 1896,
Ch. 246, above provisions were made applicable to “estates of per­
sons absent and unheard of for above seven years.” This act has
been held unconstitutional. Re-enacted with amendments. (Acts
190S, Ch. 125.) This act constitutional by decision of Court of
Appeals in case of Savings Bank vs. Weeks 110 Md. 78.


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2253

Affidavits. (See Acknowledgments.) No particular form neces­
sary, but whoever can take an acknowledgment can take an affidavit.
Affidavits always required In a mortgage as to the bona fldes of
mortgage consideration; and the payment of tax on annual interest
in certain counties. (See Mortgages.)
Aliens. Aliens, not enemies, may take and hold lands, tenements,
and hereditaments acquired by purchase, or to which they would,
if citizens, be entitled by descent, and may sell, devise, or dispose
of the same or transmit the same to their heirs as fully and effectually
and in the same manner as if by birth they were citizens of this State.
Arbitration. Disputes between parties may be conducted by
any judge or justice of the peace mutually agreed upon. Special
agreements for arbitration of such disputes to be valid. Parties may
be represented by an attorney, and award of arbitrator or arbitrators
to be a Judgment, and court may give judgment and issue execution
on the award. Act 1904, Ch. 671, provides a means for the settlement
of disputes between employers and employees by mediation or volun­
tary arbitration.
Arrest. No arrest for debts in this State. In criminal cases a
sentence may be passed, imposing a sum of money as a fine, and
then In lieu of payment by party, of fine imposed, he is liable to
imprisonment.
Attachments for debt (See Act 1890, Chap. 549), or for unliqui­
dated damages, either in contract or tort, can be obtained in all
cases when the defendant is a non-resident or has absconded, affidavit
being first made by the plaintiff to the correctness of his claim and
the fact that the defendant is a non-resident or has absconded. They
may be also obtained in connection with an original process when
the creditor or some one in his behalf shall give bond m double the
amount of the debt, with sureties to be approved by the clerk, and
make affidavit before the clerk of the court where the suit is brought
that the defendant is bona fide indebted to the plaintiff in the sum
claimed, and that the plaintiff knows or has good reason to believe
that the debtor has absconded or is about to abscond from the State,
or that the defendant has assigned, disposed of, or concealed, or
is about to assign, dispose of, or conceal, his property, or some portion
thereof, witn intent to defraud his creditors, or that the defendant
fraudulently contracted the debt or incurred the obligation; or that
the defendant has removed or Is about to remove his property, or
some portion thereof, out of this State, with intent to defraud creditors
and the attachment may be maintained, although the debt or obliga­
tion upon which the action is brought may not have matured, but
the date of the maturity of the debt or obligation must be set forth
in the affidavit (Act 1894, Ch. 648). A claimant may have the
attached property released by filing a bond in double the amount
of the appraisement. Any kind of property or credits belonging
to the defendant, in the plaintiff’s own hands or in the hands of any
one else may be attached. There is a special provision for capital
stock of a corporation. The certificate itself must be seized. Credits
not due may be attached, but wages, hire or salary not due can
not be attached, and 90 per cent of wages, hire, or salary due shall
always be exempt. (Act 1908, Ch. 665.) Imprisonment for debt
Is abolished. Defendant may be sued wherever he does business.
In addition to attachments against non-residents or absconding debtors
for debt (i. e., a liquidated sum), as heretofore, attachments may
now be issued against such debtors in cases arising from contracts
when the damages are unliquidated, and in actions for wrongs inde­
pendent of contract, but in such cases no attachments can be issued
until a declaration is filed setting out specially and in detail the
breach of the contract complained of or the tort actually committed,
verified by the affidavit of the plaintiff or some one in his behalf,
and until a bond shall be filed similar to the bond required in attach­
ments for fraud. (Code Art. 9.) All papers in attachment pro­
ceedings can now be amended, as in any other actions at law. (Act
1898, Ch. 44.) Under subject attachments see Chapter 343, page
925, Acts of 19?4. If neither the Defendant nor Garnishee appear,
condemnation may be had upon filing bond to be in force for period of
six months, accounting from the return of the attachment.
Batiks. The Act of 1910, as amended by the Acts of 1912 and
1914, made important changes in the banking laws of this State.
The law now provides for the appointment of a Bank Commissioner
with broad powers for the examination of all banking institutions
in this State other than National Banks and an annual report thereon
to the Governor. Whenever capital is reduced by Impairment
commissioner may require Bank to make such deficiency good within
sixty days, and upon failure to do so may take possession of property
and business of such institution and retain possession until affairs
are finally liquidated. This also applies where the business is con­
ducted in an unsafe or unauthorized manner. The requirements
for the incorporation of such Institutions are fully set forth in the
act. This act also provides for the incorporation and supervision
by the State of saving institutions and trust companies. Chattel
loan companies are required to take out a license, pay a fee where
the loan is $300 or more, and inspected by the State Banking Depart­
ment.
Blue Sky Law. Embodied in the Acts of the Legislature of 1920,
Chapter 552, adding an additional section to the Annotated Code,
known as 32A, section 11, 12, 13 and 14.
The act provides that if it shall appear to the Attorney General of
Maryland that the issuance, sale, promotion, negotiation, advertise­
ment of the securities within the State of Maryland, by any person,
partnership or corporation, or is employing or is about to employ
any device, scheme or artifice to defraud, or for obtaining money or
property by means of any false or fraudulent pretense, representation
or promise, the said Attorney General may require said person, part­
nership or corporation to file with him a statement in writing under
oath of all the facts concerning the same.
Section 14 provides that any person, partnership or corporation
having been served with any order of the Attorney General, or having
knowledge of the issuance of said order and while said order remains
in effect, either as originally issued or as modified, or shall execute or
carry on any scheme or device against which said order has been
issued, or wilfully attempts to do so, shall be guilty of a misdemeanor
and, upon conviction, shall be fined not more than $10,000 or im­
prisoned not more than two years or be subject to both fine and im­
prisonment. in the discretion of the Court.
Collaterals. The conversion by any banker, broker, merchants,
attorney, or agent of collaterals is made a misdemeanor. (See Code,
Art. 27. Sec. 93.)
Contracts. The normal condition of ail persons is one in which
they are capable of making any contract. The fourth and seventeenth
sections of the Statute of Frauds are in force in Maryland. Acts 1900,
Ch. 362, make it no longer necessary to show that the consideration
for a promise to answer for the debt of another is in writing. A
citizen can not make a contract with an alien enemy during the
continuance of hostilities, but aliens, not enemies, may contract and
hold real property as fully as citizens. The later cases decide contract
of infants to be voidable and not void; and they are capable of
ratification by infants on arrival at age of twenty-one. The contracts
of infants for necessaries are binding upon them. The contract of
a lunatic is voidable and not void. The statute provides that a
married woman may engage in business, contract, sue, and be sued
upon contracts and torts, as if unmarried. (Acts 1898, Ch. 457.)
All gambling contracts and contracts made on Sunday are void.
Conveyances. No estate or title to any property lying within
this State, for any period above seven years, shall pass or take effect
unless the deed conveying the same shall be executed, acknowledged,
and recorded. (See Code, Art. 21, Sec. 1.) Every deed of real estate
shall be signed and sealed by the grantor and bargainor, and attested
by at least one witness. No words of inheritance necessary, but every
deed shall be construed to pass fee simple title unless the contrary
appear. A scroll with the word “seal” therein by way of a seal, is
sufficient. A deed must be recorded within six months from date,

2254

BANKING AND COMMERCIAL LAWS—MARYLAND

In countv or Baltimore City, where land lies, but if recorded after
this, deed, while valid between parties. Is invalid as to deeds to bona
fide purchasers without notice recorded prior thereto. A body
corporate must embody in the deed itself the appointment of an attor­
ney to acknowledge the deed as and for the corporate act of said
corporation or have it acknowledged by the President or Vice-Presi­
dent without such appointment. Vendors’ lien may be released in
original deed or upon records where recorded. (Code Art. 66, Sec. 31).
Conveyances defectively executed made valid by Acts 1908, Ch. 105
and Acts 1914, Ch. 259 and Ch. 421.
Corporations are organized under the authority of the General
Incorporation Law, completely revised. Act 1908, Chap. 240. Liberal
provisions are made for general incorporation: only exception (for
municipal purposes) is in the constitution. All corporations (under
the general law) must pay a bonus tax of one-eighth of 1 per cent
upon its authorized capital stock and any increase. Corporations
have perpetual succession, may carry on business anywhere, may
Issue bonds, and secure them by mortgage of all property including
franchises. Foreign corporations must file list of resident share­
holders, and amount held. The corporation’s certificate must be filed
and $25 paid; annual renewal fee of $1 is charged. All corporations,
not paying a gross receipt tax (a long enumeration), shall pay an
annual franchise tax on their capital employed in this State, of 50
cents per $1,000 but no less than $25. if capital is over $500,000
then one-fourth of 1 per cent on the excess to $5,000,000, etc. Section
99 of Article 81 of Code, amended by providing for annulment of
Charter for non-payment of taxes. Domestic corporations may issue
all kinds of preferred and common stock, and exchange same for stock
or good will. Valuation in absence of fraud is conclusive. As to
Stock certificates, see "Uniform Laws.”
Law amended by Chapter 596, Acts of 1916.
Chapter 318, Acts of 191S, provides that all corporations who shall
refuse or neglect to pay franchise tax or tax on capital stock for a
period of two years, the charter is annulled and forfeited.
Any corporation chartered by this State, which for a period of ten
days next preceding is without one resident agent, whose name and
post office address is given in charter or filed with State Tax Commis­
sioner, may be deemeu a defendant in an attachment in the same
manner as non-residence, unless said corporation shall have been
incorporated under the laws ot' this state prior to June, 1916, and
have at least one Director, who is a citizen of this State, actually resid­
ing therein.
Courts. Terms and Jurisdiction. The circuit courts in the
counties have jurisdiction at common law in cases involving more
than $50. and equity in all cases involving more than $20. They
hold from two to four regular terms in each county at which they
have a jury; there are, however, intermediate terms fixed by the
rules, to which process may be made returnable. The circuit court
and circuit court No. 2 of Baltimore city have exclusive equity juris­
diction in the city. The superior court, the court of common pleas,
and Baltimore city court have concurrent common law jurisdiction
In cases involving more than $100. The court of common pleas
has exclusive jurisdiction in insolvency, and the criminal court in
criminal cases. The orphans' courts in Baltimore city, and in the
counties have probate jurisdiction. Justices of the peace have
jurisdiction to the amount of $100. The common law courts have
three terms in the year, and rule days every month in the year to
which process may be returnable. The equity courts have six terms
In the year, beginning the first Mondays of January. March, May,
July. September, and November.
Deposition. When the courts are satisfied, by affidavit or other­
wise, that there are material and competent witnesses residing with­
out the State, they will direct that a commission be issued to take
the testimony of such witnesses. The commissioners are selected
by the court, and must qualify before some person authorized to
administer an oath in the state where they reside. The depositions,
duly certified by the commissioners, shall be admitted as evidence
at the trial of the cause, subject to the same objections and exceptions
as the same testimony would be if the witness had been personally
present in court and there examined. Parties have the right to be
present when the testimony is taken under the commission, and
must receive reasonable notice of the time and place. Examination
is restricted to the parties and interrogatories and cross-interroga­
tories annexed to the commission. Tastimony of non-resident
witnesses can also be taken upon proper notice, as provided by Sec.
17 of Art. 35 of the Code.
Descent and Distribution of Property. As to descent, see
Code 1904, Art. 46, and as to distribution. Code, 1904, Art. 93.
An attempt to abrogate the Rule in Shelley’s case has been made by
Ch. 144. Acts 1912.
Dower. The common-law right of dower exists in Maryland, and
extends to equitable estates. By act 1898, the husband’s dower
was created; an estate of the husband in his wife’s estates of inheri­
tance, exactly equivalent to the wife's dower in her husband's estate.
A devise or bequest of real or personal property to the wife or husband
shall be construed to be in lieu of dower in lands or share of personal
estate, respectively, unless otherwise expressed in the will. If the
widow or widower renounces formally in writing, however, such
provision made for her or him by the will, within six months after the
grant of administration on the estate of the deceased husband or wife,
the dower right and the share of personal property remain undisturbed.
(See Married Women.)’ “The surviving husband or widow shall be
barred of his or her right of dower in real or personal estate, un­
less within six months after the first grant of letters testamentary
he or she shall file a written renunciation."
Chapter 223, page 721, Acts of 1924.
Executions may issue and judgments may be renewed or revived
by scire facias at any time within twelve years from date of judgment
or from the expiration of any stay, and may be thereafter levied
on any property of the defendant. In the circuit courts for the
counties there is a stay until the first Thursday of the term succeeding
the rendition of the judgment, provided the judgment is obtained
at the second term after the defendant is summoned. There is no
Btay upon judgments renderetl in the courts of Baltimore City or by
Justices of the peace in the city or counties, but execution may issue
forthwith. The defendant may stay the execution by superseding
with sureties for six months. Copy of docket entries of judgment
when recorded in another county makes the judgment a lien there.
(Act 1890, Ch. 314.)
Exemptions. No homestead law. Wearing apparel, books and
tools (not kept for sale) and $100 of property in addition, whether
same consists of money, land, goods, or money payable as insurance,
benefit, or relief in the event of sickness, hurt, accident, or death,
are exempt from execution, except on judgments for breach of promise
to marry and seduction, not applicable to any but actual bona fide
residents of this State. Equitable interests in personal property
can not be sold under execution, but may be levied upon, and the
lien thus acquired may be enforced in equity. Choses in action may
be attached.
Foreign Corporations. (See Corporations.)
Foreign Judgments. Judgments of the courts of other states
certified under the act of congress, are proper causes of action against
any person subject to the process of the courts of this State.
Fraud. When any false representation Is made by one to another
with the intent to defraud, and the defrauded party, thinking the
alleged fraud to be true, acts upon It, any contract thus made can
not be enforced. But if the injured party knows such representations
to be false, it can not be said to have influenced his conduct. For
general doctrine in this State see McAleer vs Horsey 35 Md. 439.
Giving checks or drafts without provision for acceptance is prima
facie evidence of intent to defraud, and is punishable as a crime
unless such provision is made within ten days. Every person buying


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merchandise in bulk shall demand and receive from the vendor a
written statement under oath containing the names and addresses
of all creditors with amount of indebtedness at least five days before
the sale is consummated. The vendee at least five days before
consummating such sale shall notify all of said creditors either per­
sonally or by registered mail of such proposed purchase. A sale
or transfer of goods in bulk without such notice shall as to all sub­
sisting creditors of the vendors be void.
Chapter 370, Acts of 1916, adds additional section to Article 27 of
Bagby’s Code and provides that if any person shall make, or cause to
be made, either directly or indirectly, through any agency, whatsoever,
any false statement as to his financial condition for the purpose of
procuring the delivery of personal property, etc., shall be guilty of a
misdemeanor and be fined not more than $1,000. or imprisonment for
one year.
Chapter 371, of the Acts of 1916 adds new section 831 of Bagby’s
Code and provides that any vendor of stock of goods who shall know­
ingly and willingly make or deliver any statement of which any
material portion is false, shall be guilty of a misdemeanor and upon
conviction shall be fined $1,000, or imprisonment for one year.
Garnishments. (See Attachments.)
Holidays. I.egal holidays in Maryland are; January 1st, February
22, March 25th, May 30th, July 4th, September 12. October 12th,
December 25th, and when any of these days fall on Sunday the
ensuing Monday is a legal holiday. Good Friday, Labor Day (first
Monday in September), days of general and Congressional election,
special days appointed by the Governor or President, as Thanks­
giving, fasting days or for religious observance, or for general cessation
of business
In Baltimore City, and Baltimore, Cecil, Harford and Montgomery
counties and Cumberland, alter twelve o'clock noon every Saturday,
Husband and Wife. (See Dower. Divorce, and Married Women.)
In this State the husband is not liable'for wife’s ante-nuptial debts
or contracts. Husband is liable for necessaries of wife. Acts 1898
Ch. 457, gives husband same interest in wife’s estate as wife has in
husband’s estate. Married women are expressly authorized by the
Acts of 1900. Ch. 633, to become partners and to contract with hus­
band. Either can relinquish interest in other's real astate by joint
or separate deed, or by agent or attorney properly constituted. The
wife’s property is protected by the Constitution from the debts
of the husband.
Interest. The legal rate of interest is 6 per cent per annum.
Judgments bear interest from their date. A person proved guilty
of usury forfeits the excess over the real sum or value of the goods
and chattels lent, and legal interest thereon. Since 1876, where the
whole debt, Including the usury, is paid, the usurious interest can
not be recovered back. Since September 1st, 1914, judgments
bear interest from the date of the verdict.
Judgments are liens for twelve years from date of rendition on
any interest of the defendant in real or leasehold property within
the county where rendered. They can be transferred from one county
to another by sending a copy of the docket entries to the clerk for
record. The lien commences from the date of the entry of the docket
entries by the clerk. Judgments are not liens on mortgages. Judg­
ments are not liens on personal property until execution has issued
and the writ is in the hands of the sheriff. (See Act 1890, Chap.
558, as to examination of judgment debtors.) (See Suits.)
Liens. (See Judgments.) Mechanics’ Liens. Every building
erected, repaired, rebuilt, or improved to the extent of one-fourth
of its value is subject to a lien for work done or materials furnished
for or about the same. Act of 1898, Ch. 502, abolished lien for
materials furnished for buildings in Baltimore city. Every machine,
wharf, or bridge, constructed or repaired is subject in like manner
as buildings are, to a lien according to the provisions of Code 1888,
Art. 63, Sec. 22. All boats or vessels are subject to a lien for materials
furnished or work done in building, repairing, or equipping the same.
Garages by Act 1918 given lien for storage and accessories. To secure
the lien and lay foundation for enforcing it, the material man must
within six months after the last work has been furnished, file a claim
In the superior court for Baltimore City, or in the circuit court for
the county. The liens are enforced by scire facias or by bill in eouitv.
Section 53 B, Bagby’s Code, amended by Chapter 355, Acts of 1916,
entitled “Additional Contracts.” Every note, sale, or contract for
sale of goods and chattels wherein the title thereto, or lien thereon is
reserved until the same be paid in whole or in part, shall be void as
to third persons without notice until such note, .sale, or contract be
in writing signed by the vendee and be recorded in the Clerk's office
of Baltimore City, or the counties, and such recording shall be suffi­
cient to give actual, or constructive notice to third parties.
Limitations of Suits. Accounts and notes are barred after
three years, sealed Instruments after twelve years; judgments twelve
years except against foreign corporations (no limitations). Act
1914, Ch. 846. A verbal promise or acknowledgment will revive a
debt barred by the statute.
Married Women. Act of 1898, Chap. 457, Code Art. 45, repeals
and re-enacts the entire law in this State. Married women may
hold and dispose of their property lawfully as if unmarried, but
husband must join in conveyances of real estate to release his in­
terest. Married women may engage in business, contract, sue, and
be sued upon contracts and for torts, as if unmarried. Married
woman is alone liable for ante-nuptial debts and contracts. Husband
is still liable for necessaries. Widow is entitled to dower in real estate,
and one third of the personal estate If there are children, and if no
children, one-half of the personal estate; husband has same rights
in wife’s property as wife has in husband's property. Where the
wife is adjudged a lunatic upon inquisition, and the finding remains
in force, husband may convey after acquired property by separate
deed, as if unmarried.
Mortgages are executed, acknowledged, and recorded same as
deeds, and are not valid against creditors unless recorded within six
months. There must be an affidavit made by the mortgagee or his
agent at any time before recording, that the consideration is true and
bona fide, and, in the four Counties mentioned below, that the mort­
gagee will not require the mortgagor, or any other person for him
to pay the tax levied upon the mortgage interest, and upon the assign­
ment of any mortgage except for the purpose of foreclosure, a like
affidavit must be made by the assignee. If made by agent, he must,
in addition, make oath that he is the agent of the mortgagee. A
like affidavit, is required to chattel mortgages, arm absolute bills
of sale, both of which must be recorded within twenty days. The
lien of a mortgage may, by ceasing to pay interest or any install­
ment of the principal for twenty years, be barred. They may be
foreclosed at any time after the debt becomes due and before the
lien is barred. Mortgagees are required to pay a tax of 8 per cent
on the interest corivenanted to be paid in the mortgage, in Somerset,
Montgomery, Frederick, and Dorchester counties. No tax in Balti­
more City and other counties. (Code Art. 81. Ch. 187.)
Notes and Bills of Exchange. Negotiable Instruments are de­
fined by Ch. 119 of the Laws of 1898, which repeals all laws incon­
sistent with the provisions of this act. Section 20 provides as follows:
“Ac instrument to be negotiable must conform to the following
requirements: 1. It must be in writing and signed by the maker or
drawer. 2. It must contain an unconditional promise or order to
pay a sum certain in money. 3. Must be payable on demand, or at a
fixed or determinable future time. 4. Must be payable to order or
to bearer; and 5, where the instrument is addressed to a drawee,
he must be named or otherwise indicated therein with reasonable
certainty.” Its negotiability is not affected by a seal, or by a provision
which i uthorizes the sale of collateral securities in case the instrument
be not paid at maturity, or authorizes a confession of judgment if
the instrument be not paid at maturity; or waives the benefit of any

BANKING AND COMMERCIAL LAWS—MASSACHUSETTS
law Intended for the advantage or the protection of the obligor: or
gives the holder an election to require something to be done in lieu
of payment of money. It is not necessary that paper should be
made payable at a bank or any fixed place. To charge indorser,
notice of non-payment must at once be given to him. The time
of maturity is regulated by Art. 13. as follows: "Section 104: Time
of Maturity. Every negotiable instrument is payable at the time
fixed therein without grace. When the day of maturity falls upon
Sunday, or a holiday, the instrument is payable on the next succeeding
business day. Instruments falling due on Saturday are to be pre­
sented for payment on the next succeeding business day, except that
Instruments payable on demand may. at the option of the holder, be
presented for payment before 12 o’clock noon, on Saturday, when that
entire day is not a holiday." Legal holidays are: Christmas,
New Year’s Day, February 22, Good Friday, July 4, May 30, 1st
Monday in September, 12th day of September, and the 12th day of
October, all days of general and 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 legal half holidays. Monday is treated
as Sunday when immediately preceded by one of the holidays afore­
said. By act 1X98, Ch. 198, it shall be lawful for banks and bankers
In the city of Baltimore to close their doors for business at 12 o’clock
noon, on each and every Saturday In the year, and every Saturday
In the year, after 12 o’clock noon, shall be a legal half-holiday, so
far as regards the presenting for payment or acceptance, and the
protesting and giving notice of the dishonor, of bills of exchange
and other negotiable paper, and for these purposes shall be considered
as the first day of the week, or Sunday, and all negotiable paper
shall be deemed to be presentable on the secular day next succeeding.
Bagby’s Code amended by Chapter 355, Acts of 1916. Notes
wherein reservation of title is embodied must be recorded in the
Clerk’s office of Baltimore City, or in the counties.
Power of Attorney. Every power of attorney authorizing an
agent ot attorney to sell and convey any real estate, shall be attested
and acknowledged in the same manner as a deed, and recorded prior
to or with the deed executed in pursuance of such power ot attorney.
A corporation shall have power to appoint an attorney for the same
purpose, by its corporate seal. Such power of attorney shall be
deemed to be revoked when the instrument containing the revocation
Is recorded in the office in which the deed should properly be recorded.
Probate Law. (See Administration of Estates and Wills.)
Protest Is usually made by notary public. Notary must keep
register of protests. A protest of notary public is prima facie evidence
of non-acceptance or non-payment, and of the presentment of said
note for payment, or of said bill for acceptance or payment, at the
time and in the manner stated in the protest, and the protest shall
also be prima facie evidence that such notice has been sent or delivered
In the manner therein stated. (See Notes and Bills of Exchange.)
Replevin is a remedy to recover specific goods and chattels to
whose possession the plaintiff is entitled. Also the proper remedy
to recover possession of goods distrained unlawfully. Bond must be
iven to the State of Maryland, and any party having an interest
l the property, may, upon breach of any covenant in bond, maintain
an action in the name of the State for his or her use.
Sales & Notices. Act 1910, Ch. 346. provides a Uniform Sales Act.
Taxes. The county commissioners of the several counties of the
State, and the mayor and city council of Baltimore City are directed
to levy a tax annually upon real and personal property situated
within the State, and no person who is not assessed to the sum of
$100 shall be required to pay any tax. Beginning with 1915, the
State tax is thirty-two and one-third cents, beside the County tax.
The County tax on Banks located and in business anywhere in Mary­
land is uniformly 1 per cent. The property of religious, charitable,
benevolent, and educational institutions, and cemetery companies is
exempt from taxation. On timely application exemption may be
had for manufacturer’s tools and machinery in actual use from Munic­
ipal taxation in Baltimore City and in some of the Counties, and
beginning with 1915, from State taxation. Collectors may sell
property to compel payment of overdue taxes, upon giving due notice
of sale, and complying with other requisites of statute, and any person
Interested in property may redeem within twelve calendar months
from date, and in default of redemption, title to property vests in
purchaser. Taxes are considered in arrears on first day of January
next succeeding the date of their levy, and bear interest from that date.
Trust Companies. Laws of 1920, Chapter 268, Section 46. sub­
section ninth, provides that trust companies, by its directors, duly
authorized officers or agents, shall have the powers as shall be usual
In the carrying on of the banking business, by buying, discounting,
negotiating promissory notes, bonds, drafts, bills of exchange, foreign
and domestic and other evidences of indebtedness.
Laws of 1920, Chapter 64.
Trust companies tax one per cent,
same as state banks.
“Uniform State Laws” intended for adoption by all the States
and adopted by Maryland: (1) Negotiable Instruments, (2) Bills of
Lading. (3) Sales, (4) Warehouse Receipts, (5) Stock Transfer, (6)
Probate of Foreign Wills, (7) Uniform Bad Check Act, provides
that drawers shall be given ten days notice to make good check,
before prosecution.
Certificates of capital stock, bills of lading, and warehouse re­
ceipts, roughly speaking, (1) are negotiable, (2) represent the property
certified to.
Wills of land or personal property, and any codicil thereto, must
be In writing, signed by the testator, or some one else for him, in
his presence, at his request, and witnessed by two or more credible
witnesses, as and for last will and testament of the testator, in the
presence of all the witnesses thereto. Nuncupative wills invalid
except in case of disposition of personal property by soldiers and
marines in actual service. Every will or other testamentary instru­
ment executed without this State in the mode prescribed by law,
either of the place where executed or of the testator’s domicile, or
according to the forms required by the law of this State shall be
deemed to be legally executed, and shall be of the same force and
effect as if executed in the mode prescribed by the law of this State,
rovided, said last will and testament is in writing and subscribed
y the testator; and if the testator was originally domociled in Mary­
land, although at the time of making the will or at the time of his
death he may be domiciled elsewhere, the said last will or testamen­
tary instrument so executed shall be admitted to probate in any
orphans’ court of this State; and when so admitted shall be governed
by and construed and interpreted according to the law of Maryland,
without regard to the lex domicilii, unless the testator shall expressly
declare a contrary intention in said will or testamentary instrument.
Code Art. 93, Ch. 334. No will, testament, codicil, or other testa­
mentary paper shall be subject to caveat or other objection to its
validity after the expiration of three years from its probate. (Acts
1894, Ch. 405.) When a person is unheard of for above seven years,
and supposed to be dead, the orphans’ court, under the provisions
of Act of 1908, Ch. 125, may grant letters testamentary or of admin­
istration as the case may be.
Workmen’s Compensation. By the Act of 1914. Chapter 800,
provision is made for the insurance by employers of their employees
engaged in extra-hazardous occupations, to provide for compensation
for injuries and death. This Act is intended to supersede within
itb scope recovery for injuries through negligence as a tort, and to
do away with such defenses as “assumed risk,” “fellow servant”
and, to some extent, ‘‘contributory negligence.” The extra-hazard­
ous employments are enumerated at length, and the extent of com­
pensation set out. Employers and employees, may by filing agree­
ment, classify their occupation as extra-hazardous, although not so
enumerated in this Act. Article 101, Amended by Chapter 86, Acts
of 1916, so as to extend benefits to alien non-resident defendants upon
certain terms.

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2255

SYNOPSIS OF

THE LAWS OF MASSACHUSETTS
RELATING TO

BANKING AND COMMERCIAL USAGES
Accounts. Ex parte affidavit on claims and accounts Is of no
value. They must be established by evidence produced in court
after suit brought either bv testimony or depositionAcknowledgments and Deeds. Acknowledgments may be made
before any justice of the peace, notary public or special commissioner
in the State; when the acknowledgment is made by any person with­
out this State and within any other state, territory or district of the
United States, it may be made before any officer of such state, terri­
tory or district authorized by the laws thereof to take the proof and
acknowledgment of deeds, and when so taken there shall be attached
to the certificate of acknowledgment a certificate of the secretary of
the state or territory in which such officer resides, under the seal of the
state or territory, or a certificate of the clerk of a court of record of such
state, territory or district, in the county in which such officer resides,
under seal of said court, certifying as to the authority, of such officer
to take acknowledgments and as to the genuineness of his signature.
In deeds where there is more than one grantor, the acknowledgment
of one of them is sufficient. Official taking acknowledgment should
state date of expiration of his commission.
No separate examination or acknowledgment of wife joining In a
release of dower necessary. Conveyances of land are made by deed
under seal executed by the grantor or attorney having authority
therefor. A conveyance in fee, for life or for a term exceeding seven
ears, shall not be valid except as against the grantor and persons
aving actual notice of it, unless recorded in the county in which the
real estate is situated. Deeds must be under seal, a scroll being
insufficient. No subscribing witness Is necessary. Release of dower,
homestead and other interests must be explicitly stated In deed, wife’s
joining in deed merely, being Insufficient. Husband and wife may
make conveyances of real estate to each other except by way of
mortgage, as if unmarried, but no such conveyance shall have any
effect, either in passing title or otherwise, until the deed describing
the property to be transferred is duly acknowledged and recorded in
the registry of deeds for the district where the land lies. Any Interest
In real estate may be transferred by a person to himself jointly with
another person or persons in the same manner in which it might be
transferred by him to another person. No interest in land except
an estate at will can be created except by instrument in writing or by
operation of law.
Actions. There are three classes of actions: contract, tort, and
replevin. Actions at law are begun by writs issued in blank form by
the clerks of the several courts. No declaration need be Inserted In
the writ, except in cases of arrest on mesne process or of an attach­
ment of a vessel. Suits in equity are begun by filing a bill upon which
a subpoena is issued by the clerk of the court. Actions begun by
trustee process must be brought In the county in which the trustee
or one of them resides or has his usual place of business.
Administration of Estates. Administration or probate is to be
taken out in county where deceased last resided. Executors or admin­
istrators are required to give a bond of about double the value of the
personal estate. An executor will be exempt from giving sureties If
testator so directs. An administrator will be exempt if all persona
Interested in this State except creditors consent and all creditors are
notified by publication. In case a non-resident is appointed executor
or administrator, he must appoint a resident agent. There are public
administrators in each county to whom administration is granted upon
estates of persons who die intestate leaving property, and not having
any husband, widow, or heir in this State. Ancillary, administration
may be granted upon the estate of a non-resident who dies leaving
property in this State. Every administrator and executor shall file
an inventory within three months, and publish notice of his appoint­
ment. Notice of a debt, and demand for its payment should be given
to an executor or administrator within six months after his appoint­
ment and the debt should be paid after six months and within one
year of the appointment. No suit can be brought by a creditor
against an executor or administrator within six months after his
giving bond, except on a claim not affected by the insolvency of the
estate. No suit can be brought against an executor or administrator
who has published notice of his appointment, after one year from
time of his giving bond, unless he has received new assets after the
expiration of the one year, or unless further time is allowed by court.
A creditor whose claim does not accrue within the one year may
cause assets to be reserved to answer to his claim. When the estate
Is insufficient to pay all claims, the executor or administrator shall
represent the estate insolvent and commissioner will be appointed
to receive proof of claims, or the Court may receive and act upon the
claims. Claims for funeral expenses, last sickness, and charges of
administration, are not affected by the insolvency of the estate.
Executors and administrators shall render an account at least once
a year.
Aliens. Resident or non-resident aliens may sue and be sued and
may hold and convey real estate.
Arrest. In an action of contract, the defendant unless she is a
woman, may be arrested on mesne process provided the plaintiff, and
except in actions on negotiable instruments, the original party to the
contract or his executors or administrators makes affidavit and
satisfactorily proves to the court to which the writ is returnable that
he expects to recover a sum amounting to $20; that he believes that
defendant has property which he does not intend to apply to payment
of plaintiff's debt; that he believes that defendant intends to leave
the State. Actions of tort, against women as well as men, except for
slander or libel, may be begun by arrest of the defendant, on the
plaintiff or some one in his behalf making certain affidavits. A de­
fendant arrested on mesne process may give bail or he may apply to
take an oath that he does not Intend to leave the State, or the oath
for relief of poor debtors; on taking such oath he is released from
arrest. No arrest can be made if the property of defendant is attached
upon the same writ. On an execution, except for costs, or for ali­
mony. or one issued in an action of tort, or where debtor is about to
leave the State, he can not be arrested until he has first been cited
before a magistrate for examination, and it appearing that he has
property and refuses to assign it, the magistrate may order his arrest.
When arrested on execution the debtor may apply to take the oath
for relief of poor debtors.
Assignments for benefit of creditors. A voluntary assignment to
trustees for benefit of creditors can not be avoided by creditors who
assent thereto, except by proceedings in bankruptcy begun within
four months or by proof of fraud. If there is property in excess ©f
the claims of creditors who have assented, the excess in hands of the
trustee can be reached by trustee process.
Attachment. All real estate, goods, and chattels not exempt,
may be taken in attachment on the original writ and held as security
for judgment, except that lands and tenements can not be attached
In suits involving less then $20. Attachments may be made in suits
by or against non-residents as well as in suits by or against residents.
No bond is required to make an attachment. Shares of stock In
corporations cannot be attached except by bill in equity. Attachment
of shares of stock is not valid against a bona fide transfer although

2256

BANKING AND COMMERCIAL LAWS—MASSACHUSETTS

not recorded in book or corporation. Debtor may dissolve attachment
by furnishing bond with sureties to pay judgment obtained or value of
property attached determined by appraisement. Debtor against
whom judgment is rendered for over $20 may be subjected to sworn
examination touching his property, and if he refuses to deliver up
such property (not being exempt from attachment), an order for
arrest will issue and he can then apply to take the poor debtor’s oath
and be examined as to his property after notice to creditor. An
attachment is dissolved by death of the defendant if administration
Is granted upon his estate upon application made within one year
after his death.
Banks. The banking business is extensively regulated by statute.
In general, savings banks, co-operative banks, trust companies, or
other corporations or persons doing banking business in M assachusetts
are subject to supervision of commissioner of banks. (General Laws,
ch 167. ch. 168, ch, 169, ch. 170, ch. 1721. No foreign banking asso­
ciation or corporation shall transact business in Massachusetts until
it has received certificate from board of bank incorporation. There
are very few existing state banks, and Rev. Laws. ch. 115, in view of
St. 1918 ch. 12, was not re-enacted in the consolidation of statutes
in General Laws, effective January 1, 1921. For extensive provisions
relative to Savings Banks, see Gen. Laws. ch. 168.
The trust company is the prevailing form of banking institution.
Fifteen or more persons associating by written agreement may, upon
compliance with statute, become a trust company. Agreement of
association must set forth corporate name, purpose, city or town in
Massachusetts where business is to be transacted, amount of capital
stock and number of shares. Notice of intention to form trust com­
pany shall be given to board of bank incorporation, and such notice
must be published. Unless the board issues a certificate that public
convenience and advantage will be promoted by establishment of
such a trust company, no further proceedings shall be had, but after
one year the application may be renewed. After the first meeting of
the subscribers the president and majority of board of directors
execute in duplicate articles setting forth copy of agreement of associ­
ation, names of subscribers and names and residences of officers,
date of first meeting. one of the certificates is submitted to bank
commissioner, the other together with records of proposed corporation
to commissioner of corporations and taxation. Approval by com­
missioner must be endorsed if he finds that legal requirements, in­
cluding certificate of convenience, have been met. The articles are
filed with the secretary of state, with filing fee of one twentieth of
1 per cent of capital stock, and certificate of incorporation issues.
Before business can be commenced a certificate authorizing such
must be obtained from board of bank incorporation, (Gen. Laws,
ch. 172, section 11). A director of trust company must hold at least
ten shares of unpledged stock, and majority of directors must be citi­
zens of and resident in Massachusetts, and not over one-third of the
directors shall be directors in any other such corporation. Except
in smaller municipalities capital stock of trust company must be not
less than $200,000; shares par value of $100 each. Entire capital
stock must be paid in in cash. Stockholders of trust company shall
be personally liable, equally and ratably and not one for another,
to amount of their stock therein at par in addition to amount invested
in such shares, for all contracts, debts and engagements of the corpo­
ration. In case of impaired capital, bank commissioner has authority
to act. Commissioner of banks has extensive power to require returns
and to supervise and examine. Savings departments may be estab­
lished. The kinds of business which may be done are prescribed by
statute with considerable detail.
Bills and Notes. The law of negotiable instruments is governed
by the Negotiable Instruments Law, as amended, where applicable;
in other cases by the law merchant. A person becoming a party
to a non-negotiable promissiory note payable on tme, by signature
In blank on the back thereof, is entitled to notice of non-payment
same as an indorser. A depositary of funds, subject to withdrawal by
check or demand draft may pay a check or demand draft drawn on
It by a depositor having funds on deposit to pay same, notwithstanding
his death, upon presentation within ten days after its date.
Protest of bill, note or order duly certified by notary public under
his hand and official seal is prima facie evidence of facts, stated In
such protest and of giving notice to drawer or indorser.
There are various statutory provisions bearing upon the validity
of the notes of municipalities of this Commonwealth. Where a nego­
tiable instrument is not payable on demand, presentment must be
made on the day it falls due. Where it is payable on demand present­
ment must be made within a reasonable time after its issue.
An accommodation party to a negotiable instrument is liable thereon
to a holder in due course notwithstanding such holder at the time of
taking the instrument knew him to be only an accommodation party.
When the da>, or the last day, for the performance of any act, includ­
ing the making of any payment or tender of payment, authorized or
required by statute or by contract falls on Sunday or on a legal holi­
day, the act may be performed on the next succeeding secular or busi­
ness day, unless it is specifically authorized or required to be performed
on Sunday or on a legal holiday.
Every negotiable instrument is payable at the time fixed therein
without grace, except that three days of grace shall be allowed upon a
draft or bill of exchange made payable within Massachusetts at sight
unless there is an express stipulation to the contrary. Where the day,
of maturity falls upon Saturday, Sunday, or a holiday, instrument is
payable on next succeeding business day which is not a Saturday.
Instruments payable on demand may. at option of holder, be presented
for payment before twelve o’clock noon on Saturday when that entire
day is not a holiday: provided however that no person receiving any
check, draft, bill of exchange or promissory note payable on demand,
shall be charged with any neglect or omission of duty or incur any
liability, for not presenting for payment or acceptance or collection
such check, draft, bill of exchange, or promissory note on a Saturday;
provided also that the same shall be duly presented for payment,
acceptance, or collection on the next succeeding business day.
Under certain circumstances the original named payee of order
paper may be a holder in due course.
No bank shall be liable to a depositor, or to the drawer of a bill of
exchange upon the bank, for an amount charged to or collected from
him on account of payment by such bank of a negotiable instrument
upon which the signature of any party is forged, or which is made,
drawn, accepted or indorsed without authority, or which is materially
altered or the amount of which is raised; unless within one year after
return of such negotiable instrument to such depositor or drawer,
he shall notify the bank in writing that, as the case may be. the instru­
ment was made, drawn accepted or indorsed without authority, that
signature of a party to instrument is forged, or that instrument has
been materially altered, or that the amount has been raised.
Bills of Lading. The so-called Uniform Bills of Lading Act is in
force, and has been held constitutional by the Supreme Judicial
Court. A bill in which it is stated that the goods are consigned or
destined to a specified person is a non-negotiable or straight bill. A
bill in which it is stated that the goods are consigned or destined to
the order of any person named in such bill is a negotiable or order bill.
A non-negotiable bill cannot be negotiated, and indorsement of such
a bill gives transferee no additional right. A negotiable bill may be
negotiated by indorsement of person to whose order goods are deliv­
erable by tenor of bill. Such indorsement may be in blank or to a
specified person. If indorsed to a specified person it may be nego­
tiated again by the indorsement of such person in blank or to another
specified person. Subsequent negotiation may be made in like man­
ner. A negotiable bill may be negotiated by any person in possession
of same, however such possession may have been acquired if, by the
terms of the bill, the carrier undertakes to deliver the goods to the
order of such person, or if at time of negotiation bill is in such form
that it may be negotiated by delivery. Indorsement of bill does not
make indorser liable for any failure on part of carrier or previous in­


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dorsers of the bill to fulfli their respective obligations. Any pro­
vision in an order bill that it is non-negotiable shall be void.
Bills of Sale. A bill of sale of personal property intended for
security must be recorded, the recording provisions as to mortgages of
personal property being applicable. See Chattel Mortgages.
Blue Sky Law. Acts of 1921, ch. 499, approved May 27, 1921,
entitled Promotion and Sale of Securities. Act applies to no con­
tracts valid and effective before act became effective. Certain secur­
ities are exempted. Act defines at length what is meant by security
and sale. Persons dealing in securities within operation of act must
be registered and information specified must be furnished commission.
Certain classes of sales and certain securities are exempted from
operation of Act. Annual fee for broker, $50, for salesman, $2. Act
does not limit any statutory or common law right of any person to
sue civilly or right of state to punish for violation of any law. Com­
mission has power of inquiry, of summoning witnesses and of sus­
pending certain sales. Act has immunity provisions. Violation of
act punishable by fine of not more than $5,000 or imprisonment not
more than two and one-half years or both. Scope of law extended
by Acts 1924, ch. 487, which should be consulted.
Chattel Mortgages. Chattel mortgages must be recorded in the
records of the city of town where the mortgagor resides when the
mortgage is made, and in the city in which he then transacts business,
every mortgage, must be recorded within fifteen days of the date,
until recorded the mortgage is not valid except between the parties
and record subsequent to time limited is void. If mortgage is given
by non-resident mortgagor, record must be made in city or town where
property then is. If record in two places is required, and mortgage
is recorded in one place within fifteen days, it may be recorded Id
other place within ten days after date of first record.
Conditional Sales. If a contract for sale of personal property
is made on condition that title shall not pass until purchase money
has been fully paid, and vendor upon default takes possession of prop­
erty, the vendee may within fifteen days after such taking redeem the
property so taken by paying to vondor the full amount then unpaid
with interest and all lawful charges and expenses due to vendor.
There are special statutory provisions affecting conditional sales of
furniture or other household effects.
By statute no conditional sale of heating apparatus, plumbing goods,
ranges, or other articles of personal property which are afterwards
wrought into or attached to real estate, whether fixtures at common
law or not, shall be valid against any mortgagee, purchaser or grantee
of such real estate unless not later than ten days after delivery thereon
of such personal property a notice in form prescribed by statute is
recorded in registry of deeds of district where land lies. Statute also
applies to registered land.
In the ordinary case, contracts of conditional sale need not be re­
corded. Selling or concealing personal property held by vendee
under a written conditional contract of sale, before performance of
condition and with intent to defraud, is a criminal offense.
Corporations. By special act of 1903, chapter 437, the law of
business corporations was revised and as amended, and now codified
in General Laws, applies to all corporations organized in this common­
wealth for the purpose of carrying on business within the common­
wealth for profit, except the following: Banks, savings banks, co­
operative banks, trust companies, surety or indemnity companies,
safe deposit companies, insurance companies, railroad or street railway
companies, telegraph or telephone companies, gas or electric light,
heat or power companies, canal, aqueduct or water companies, ceme­
tery, or crematory companies, or any corporation which now have or
may hereafter have the right to take or condemn land, or to exercise
franchise in public ways, provided that corporations, formed for
purpose of dealing in real estate shall state the term of the duration
of the corporation, such term not to exceed fifty years.
Three or more persons may associate together and form a corporation
for carrying on any lawful business not included in the above provisions
Such a corporation must have a capital of not less than $1,000, if
having shares only with par value. There is no maximum limit.
Business corporations may create shares of stock with or without
par value, and corporations with stock with par value may, by
appropriate proceedings, change such stock to stock without par value.
The stock may be divided into two or more classes with such
preferences, voting powers, restrictions and qualifications as may
be fixed by the agreement of association. Upon due organiza­
tion of the associates and filing a copy of the agreement of
association with the commissioner of corporations and on pay­
ment of a fee of one-twentieth of 1 per cent of total amount of author­
ized capital stock with par value, and five cents per share for all
authorized shares without par value, but in no case less than $50,
a certificate of incorporation is issued by the secretary of state. The
capital stock may be issued for cash, property, tangible or intangible
services or expenses, but not for notes. The amount of capital stock
may be increased from time to time. The corporation must have
not less than three directors, president, clerk and treasurer. The
directors, treasurer, and clerk are elected by the stockholders. The
president is chosen by and from the board of directors. The clerk
must be a resident of the commonwealth. Meetings of stockholders
must be held within the commonwealth, but directors may meet
within or without the commonwealth. Voting by proxy is per­
mitted, but no proxy dated more than six months before the
meeting named is valid. Any corporation may hold, purchase, con­
vey mortgage or lease such real or personal property as the purposes
of the business may require.
Every such corporation is required to file an annual report of Its
condition, and if its capital stock is over $100,900, shares without par
value being taken as of $100 in value, to file a written statement
under oath by an auditor. It is also required to make an annual
return to the tax commissioner.
Every foreign corporation which has a usual place of business
here, or is engaged here permanently or temporarily in the construc­
tion, erection, alteration or repair of a building, bridge, railroad, rail­
way or structure of any kind, shall before doing business here appoint
the commissioner of corporations, its attorney for the service of proc­
ess, such authority to continue as long as any liability remains out­
standing against it in this commonwealth, and shall file with the
commissioner of corporations a copy of its charter, articles or certifi­
cate of incorporation, by-laws, and a certificate setting forth its
name, location of principal office, names and addresses of its officers,
date of its annual meeting, amount of its capital stock authorized and
issued, the number and par value of its shares, the amount paid
thereon, and details of any payment thereof not made in money.
Such corporations are required to file annual statements with the
commissioner of corporations showing their condition.
Courts. Terms and Jurisdiction. Trial justices may severally
hold courts within the counties for which they are appointed, and
shall have original jurisdiction, exclusive of the superior court, of all
actions of contract, tort, or replevin, where the debt or damages
demanded or value of the property alleged to be detained does not
exceed $100, and concurrent jurisdiction with the superior court of
such actions where such amount exceeds $100 and is less than $300.
Police and district courts may in their respective counties have original
jurisdiction, exclusive of the Superior Court, of actions of contract, tort
or replevin, in which the debt or damages demanded or the value of
the property alleged to be detained does not exceed $100 and have
original and concurrent jurisdiction with the Superior Court of actions
of contract, tort or replevin in which the debt or damages demanded
or the value of the property alleged to be detained is more than $100
and does not exceed $1,000. The supreme judicial court has original
jurisdiction in all equity matters and may on appeal hear all matters
determined by the probate court, and determine questions arising under
wills. Superior court has jurisdiction where the amount claimed ex­
ceeds $20. Municipal court of the city of Boston has jurisdiction con­
currently with the superior court in the county of Suffolk, in actions

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BANKING AND COMMERCIAL LAWS—MICHIGAN
where the debt does not exceed $2,000, provided one or more of the
defendants resides or has his usual place of business in the county of
Suffolk. The Land Court has exclusive original jurisdiction for regis­
tering titles to real estate under the Torrens systemThe Probate Courts have jurisdiction over administration of estates
of deceased persons, matters of adoption, guardianship, conserva­
torship, trusts under wills and written instruments, petitions for
separate support, and of partition of land. There is a Probate Court
and Registry of Probate in each county.
Equity jurisdiction is lodged in the Superior Court and in Supreme
Judicial Court. By statute Probate Courts have jurisdiction in equity
in certain special matters.
Depositions. Taking of such is governed by statute and rules of
courts. The commission issued to take depositions contains full
Instructions to magistrate how to proceed.
Descent and Distribution of Property of Decedents. After
deducting widow's allowance and allowances for minor children,
and payment of debts and expenses of administration, the remaining
personal and real estate is distributed as follows: If deceased leaves
no issue, surviving husband or widow shall lake $5,000 and one-half
of remaining real and personal property. If deceased leaves issue,
surviving husband or widow shall take one-third of remaining real and
personal property. If deceased leaves no kindred, surviving husband
or widow shall take whole of remaining real and personal property.
A husband on death of wife shall hold for his life one-third of all
land owned by her at any time during coverture, estate known as
tenancy by curtesy. Wife is entitled to dower at common law. But
in order to be entitled to such curtesy or dower election and claim
therefor must be filed in registry of probate with six months of approval
of bond of executor or administrator, and such election is a waiver
■of the interests on real property above mentioned. Probate Court
assigns dower or curtesy. Rights of curtesy which exist on February
1, 1919, may be claimed as above provided, but in such case husband
shall take no other interest in real or personal property of wife, and
except as above preserved curtesy at common law is abolished.
Subject to ail the above, the rest and residue of intestate property
Is distributed as follows: 1. In equal shares to children and issue of
any deceased child by right of representation; if there is no surviving
child, then to the other lineal descendants if ail are in same degree of
kindred, otherwise by right of representation. 2. If intestate leaves
no issue, then in equal shares to father and mother. 3 If no issue
nor mother, then to father. 4. If no issue or father, then to mother.
5. If no issue, father or mother, then to brothers and sisters and to
issue of deceased brothers or sisters by right of representation; if
no surviving brother or sister, then to issue of such equally if all In
same degree of kindred to intestate, otherwise by right of represen­
tation. 6. If he leaves no issue, no father, mother, brother or sister
or issue of deceased brother or sister, then to next of kin in equal
degree, but if there are two or more collateral kindred in equal degree
claiming through different ancestors, those claiming through nearest
ancestor are preferred. If intestate leaves no kindred, husband or
widow, estate escheats to commonwealth.
Executions can not issue until twenty-four hours after judgment
rendered, and an original execution must be issued within one year
after plaintiff is entitled to sue out the same. Original executions in
all courts are returnable within sixty days, alias executions five years.
Exemptions. Homestead, if recorded, to the value of $800.
Necessary wearing apparel of family, certain specified articles of
household furniture, and $300 worth in addition thereto, library, $50;
tools and implements. $100; stock, $100; boats and fishing tackle,
etc., $100; one cow, six sheep, one swine, and two tons of hay, sewing
machine, necessary wearing apparel, pew in church, etc. Materials
and stock designed and necessary for carrying on his trade and intended
to be used or wrought therein, not exceeding $100 in value. Shares in
co-operative associations not exceeding $20 in value, funds of.railroad
relief societies assessment insurance benefits, uniforms, arms, and
equipments of militia officers.
Factor’s Act. A factor or other agent intrusted with possession
of merchandise or of bill of lading consigning merchandise to him with
authority to sell the same shall be deemed the true owner of such
merchandise, so far as to give validity to any bona fide contract of
sale made by him. Bona fide consignees from shippers in lawful
possession have liens for advances or securities to shipper. Bona fide
pledges from consignees or factors are also protected.
Frauds. Statute of. No action can be brought to charge an
executor or administrator on a special promise, to charge any person
upon a special promise to answer for debt, default or misdoing of
another, upon an agreement made on consideration of marriage, upon
a contract for sale of any interest in land, upon an agreement not to
be performed within a year, to charge a discharged debtor, unless the
promise, contract or agreement or some memorandum thereof is
signed by the party or by his authorized agent. No agreement to
make a will, or to devise or to give a legacy is binding unless in writing.
No contract of sale of personal property of $500 or over is actionable
unless there is part payment, acceptance and receipt of part of the
goods, or some memorandum in writing signed by party to be charged
or his agent.
Insolvency. There is an insolvent law, but it is superseded by the
National Bankruptcy Act of 1898. As to insolvent estates of deceased
persons, see Administration of Estates.
Gifts between Husband and Wife. Gifts of personal property
husband and wife shall be valid to same extent as if they were sole.
Holidays. January 1st, New Year's Day; February 22nd, Wash­
ington's Birthday; April 19th. Patriot's Day; May 30th, Decoration
Day; July 4th, Independence Day; First Monday in September. Labor
Day; October 12th, Columbus Day; Thanksgiving Day; December 25.
Christmas Day.
Interest. Legal rate is 6 per cent. There are no usury laws,
but there are certain statutory provisions relative to interest upon
6mall loans up to $1,000. See General Laws ch. 140, ss. 80-114.
Judgments. A judgment or decree of a court of record of the
United States or of any state thereof shall be presumed to be paid
and satisfied at the expiration of twenty years after it was rendered.
Limitation of Suits. Contract express or implied and not under
seal and not otherwise limited, six years; real actions, those upon an
attested note, if suit is brought by original payee or his executor or
administrator, and personal actions on contracts not limited, twenty
years. Absence from the State prevents the running of the statute
of limitations as to a defendant until he comes into the State. If
the person entitled to bring an action is a minor or is insane or impris­
oned when the right to bring such action first accrues, such actioD
may be commenced within the time hereinbefore limited after the
disability is removed. The statute does not run against those residing
out of the State. See also Administration of Estates.
Married Women. The real and personal estate of a married
woman, acquired at any time, remains her sole and separate property,
not subject to the control of her husband, nor liable for his debts.
Married women may carry on trade or business, make contracts, sue
and be sued, in all matters relating to their separate property, and
such contracts are not binding upon the husband. Wife carrying
on business on own account must record certificate with city or town
clerk; neglect to do this renders her property so employed liable for
husband’s debts, and renders husband liable for her debts thus con­
tracted.
Mechanic’s Liens. Subject covered by statute.
Mortgages of Real Estate. Power of sale mortgage is univer­
sally used. Foreclosure is regulated by statute, requiring publication
prior to sale, and sale bars redemption. Mortgages may also be fore­
closed by entry and peaceable possession for three years.


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Sales of Personal Property. Uniform Sales Act adopted in
1908, is now Gen. Laws ch. 106. There is a Bills of Lading statute,
(Gen. Laws ch. 108), and Gen. Laws ch. 105 relates to warehouse
receipts. As to sales of $500 or over, see Frauds, Statute of. Sales
of merchandise in bulk are fraudulent unless the provisions of Gen.
Lawsch. 106, sec. 1, are complied with. Delivery of a bill of sale is not
constructive delivery of the goods. Delivery of possession of goods
sold is essential as to third persons without notice who purchase same
goods for value, or as to attaching creditors without notice. Vendor's
retention of possession after sale is prima facie evidence of fraud.
As to conditional sales, see that topic supra.
Statutes. General revision and consolidation of statutes, effective
January 1, 1921 under title of General Laws.
Stock Transfer. This subject is covered by Stock Transfer Act
as codified in General Laws.
Suits. Civil actions in general, except those concerning land (if
one of the parties lives in the State), must be brought in the county
where one of them lives or has his usual place of business. But in
lower courts venue depends on residence or place of business of defen­
dant. Where all parties are non-resident, action may be brought in
any county. Attachment of property owned by defendants residing
out of State may be made sufficient, to give jurisdiction for a special
judgment in suit after notice published by order of court. Such notice
to be given within one year from the entry of the suit. Persons commorant in State may also be arrested on mense process and held to
bail. A non-resident plaintiff is usually required to furnish indorser
for costs. See also Actions, supra.
Taxes assessed upon land shall with all incidental charges and fees
be a lien thereon from April 1st in the year of assessment. Such lienshall terminate at the expiration of two years from October 1st in said
year, if the estate has in the meantime been alienated and the in­
strument alienating the same has been recorded, otherwise it shall
continue until a recorded alienation thereof; but if while such lien is
in force a tax sale or taking has been made and the deed or instrument
of taking has been duly recorded within thirty days, but the sale or
taking is invalid by reason of any error or irregularity in the pro­
ceedings subsequent to the assessment, the lien shall continue for
ninety days after a release, notice or disclaimer, has been duly recorded,
or for ninety days after the sale or taking has been finally adjudged
invalid by a court of competent jurisdiction. There shall be no lien
for taxes reassessed if the property is alienated before the reassessment.
Said taxes if unpaid for fourteen days after demand therefor, may,
with said charges and fees, be levied by sale of the real estate if the
lien thereon has not terminated.
The matter of enforcing the payment or collection of taxes is one
concerning which there is a considerable body of statute law which
cannot be briefly summarized.
Trustee Process. All personal actions except replevin, and actions
of tort for malicious prosecution, slander, libel, or assault and battery
may be begun by trustee process and goods, effects, or credits of
defendant in hand of a third person may be attached and held to
satisfy final judgment. See also Actions, supra.
Warehouseman and Warehouse Receipts. The Warehouse
Receipts Act as codified into Gen. Laws is in force.
Wills. Every person of full age and sound mind Including married
women may make a will. Will must be signed by testator, or by some
person in his behalf, by his express direction, and be attested and
subscribed by three or more competent witnesses in his presence. A
will executed in mode prescribed by the law either of place where
will is executed or of place of testator's domicil, shall be deemed
legally executed and shall be of same force and effect as if executed
in mode prescribed by laws of Massachusetts provided will is in writing
and subscribed by testator. As to waiver of provisions of will by
husband or wife, see Descent and Distribution, supra, also General
Laws ch. 190. section 15.

SYNOPSIS OF

THE LAWS OF MICHIGAN
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Henbt Wunsch and Edwakij F. Wunsch. 706-710 DimeBank Bldg., Attorneys at Law, Detroit, Michigan.
(See Card in Attorneys’ List.)
Acknowledgments of real estate instruments may be before one
of the following officers: 1. Within this State: Any judge, clerk
or commissioner of any court of record, notary public, justice of the
peace or master in chancery. The official should certify that. “On
this day before mo personally appeared.................... , to me known
to be the person or persons who executed the foregoing instrument
and acknowledged that he (or they) executed tile same as his (or
their) free act and deed." Notary’s certificate must show date of
expiration commission. Such instruments must have two subscribing
witnesses. 2. In any other state, territory, or district of the United
States: Same officials as described above or any officer authorized
by the laws of such state, territory, or district, or before a com­
missioner appointed by the Governor of this State for that purpose.
Any such instrument mav be executed according to the laws of any
such other state or territory. If officer has no seal, certificate of the
Clerk of the county or district, or of the Secretary of State within
which taken shall be attached. 3. In any foreign country: notary
public, or minister plenipotentiary, minister extraordinary, minister
resident, charge d’affairs, or commissioner or consul of the United
States, appointed to reside therein.
Actions. Common law forms of pleadings are used, but in some
respects modified by statute. Non-resident plaintiffs must give
security for costs.
Administration of Estates: In probate court of each county.
Claims are passed on by judge of probate or commissioners appointed
for each estate; within such time allowed by the court, not exceeding
in first instance one year nor less than four montits; may be extended
not to exceed two years from date; the court may revive commis­
sion any time before estate is closed and allow further time three
months to examine any claim; an appeal to circuit courts from allow­
ance or disallowance of any claim. All claims barred, not presented
before administration is closed:—
Administration of intestate estates is granted: 1st, to surviv­
ing husband or wife, or kin or grantee, or such one of them as judge
may appoint, or as they may request. 2nd, to one or more of the
principal creditors. 3rd, to such other person as the judge may think
proper. Non-resident administrators and executors appointed in
other states, territories, or foreign countries cannot sue as such in
this State without procuring administration in this State.
Affidavits may be taken by any judge, master in chancery, clerk
of court, justice of the peace, police magistrate, notary public, or
circuit court commissioner. Any oath authorized, or required to be
made, without the State for use in judicial proceedings here, must be
authenticated by judge of a court having a seal, and the genuineness
of such judge’s signature, existence of the court, and that such judge

2258

BANKING AND COMMERCIAL LAWS—MICHIGAN

is a member thereof, certified oy the clerk of the court under the seal
thereof. If in any other state or territory, may be taken before a
commissioner appointed by the governor of this State, or any notary
public or justice of the peace authorized by the laws of any such state
or territory to administer oaths therein.
In actions at law affidavits of amount due on open and stated
accounts, attached to and served with process as commencement of
suit make a prima facie case, unless denied by the defendant’s affidavit
filed and served with plea.
Allens. May inherit or purchase and hold and convey personal
and real estate.
Arbitration. Competent parties to any controversy which is or
might be the subject of an action at law or suit in equity, may agree
to arbitrate, and judgment of any circuit court rendered upon the
award. No arbitration of claim of any person to any estate in fee
or for life in real estate.
Arrest. By writ of capias in personal actions in tort and in actions
for money collected by any public officer; or upon promise to marry;
also by warrant allowed by any justice of the peace or judge of a
court of record, under the fraudulent debtor's act, when the creditor
has commenced suit or obtained judgment and the debtor has disposed
of or concealed, or is about to dispose of or conceal property liable to
execution or the debt was fraudulently contracted.
Assignments for the benefit of creditors are void unless made
without preferences; must comprise all of assignor’s property not
exempt from execution. The circuit court in chancery has super­
visory jurisdiction of such assignments.
Attachments. Writs may be issued from justice and circuit courts
on affidavit showing; debt due on express or implied contract, and
either that the debtor has absconded or is about to abscond from
the State or has assigned or disposed of or is about to assign and
dispose of his property with intent to defraud his creditors; or is a
non-resident of the state, or a foreign corporation. May issue from
the circuit court for debt not due but to become due, upon satis­
factory showing to the circuit judge, but in such cases judgment can­
not be taken until debt is due. May issue in actions of tort against
non-residents in certain cases.
Banks. Incorporation of: Any number of persons not less than
five may associate to establish for a period not to exceed thirty years,
commercial banks, savings banks, and banks having for both classes.
Capital required is graded—$20,000 to $250,000, according to popula­
tion of cities or villages where conducted. Upon filing articles of asso­
ciation. commissioner of banking department and Secretary of State
Issue certificates of organization; board of directors chosen by the
stockholders. No more than the legal rate of interest in advance
shall be received; file correct list of stockholders with commissioner
of banking, and county clerk and report four times a year to be pub­
lished in newspaper where bank is conducted. Commercial loans,
not to exceed 50 per cent of the capital, on real estate securities, by
two-thirds vote of directors, except to secure aebts due the bank.
8avings deposits payable as directors prescribe; commercial deposits
ayable on demand. Banks combining commercial and savings
eposits cannot issue post notes nor any bill or note or certificate as
money. Savings depositors preferred in distribution of savings
department funds. Stockholders individually liable equally and
ratably and not one for another to the amount of the par value of
stock, for the benefit of depositors. All transfers of property, and
payments of money after actual or contemplated insolvency to pre­
vent legal application of assets null and void; total liabilities of any
borrower shall not exceed one-tenth part of the whole capital and
surplus, may be increased to one-fifth by two-thirds vote of directors;
not to Issue certificates of deposit for borrowed money nor make
partial payments on such certificates; not liable to depositors for pay­
ment of a forged or raised check unless notified within three months
after return of voucher.
All shares of bank stock shall be assessed against their owners in
the township, village, or city, where the bank is located, taxes not
paid by stockholders, bank’s duty to pay.
Trust deposits and security companies may be incorporated under
the general laws of the State applicable thereto. Seven or more
persons may associate to establish—capital graded from $100,000 to
$5,000,000 according to population of cities where conducted; deposit
with the state treasurer 50 per cent of the capital stock in bonds
or real estate mortgages worth double the amount secured; powers
such as are customary for trust companies. They cannot do any
banking business.
Blue Sky Law. Michigan in 1015 passed an act, commonly known
as the Blue Sky Law, regulating the selling of and dealing in stocks,
bonds and other securities with certain exceptions of corporations,
associations, partnerships and individuals, so as to prevent fraud in
sucb dealings, and creating a Commission of three to administer the
provision of the law. Under this law application must be made to
the Michigan Securities Commission and the approval of the Com­
mission secured before sucb securities may be sold. Certain penalties
are imposed under the law for non-compliance with its provision.
The Michigan Supreme Court has declared the act to be Constitutional
and valid.
Collaterals. Stocks, bonds or other personal property pledged
as collateral security for payment of money or the performance of
any obligation, upon default may be sold at public (or private sale
if so authorized by the contract) to satisfy the debt; but before public
sale, ten days notice must be given and served on pledger or legal
representative personally or by mail; such sale must be between
nine o’clock forenoon and sunset, at a public place in the township,
city, or village where held.
Conditional Sales. Are valid between the parties: if consignee
or purchaser, on condition title is retained by seller, is authorized by
the contract to sell, all such sales are valid. The consignee or pur­
chaser cannot make valid sales against the legal owner without the
authority of consignor or legal owner. (See Liens.) (See Frauds.)
Convevances. Any person of full age or otherwise capable may
convey by deed any interest in lands, whether in actual possession
or not. All grants and devises of lands to two or more persons create
estates in common; no joint tenancy, unless expressly so declared,
except such as are made in trust or to executors, and except such as
are made to husband and wife, who take as "tenants by entirety.”
The words “conveys and warrants ” in the deed describing the premises
and specifying the consideration, dated, duly signed and acknowledged
by grantor are sufficient to convey title in fee simple and to warrant,
that grantor and his heirs and personal representatives is seized of
the premises, has good right to convey same, guarantees quiet pos­
session thereof, and that he will warrant and defend the title against
all lawful claims. The words "conveys and quit claims” duly signed,
sealed and acknowledged by grantor are sufficient to convey grantor’s
Interest. The words "mortgages and warrants” and duly described
premises, specifying “to secure the payment” and reciting the sum
for which mortgage is given and the notes and other evidences of
debt secured thereby, mortgage being dated, signed, sealed and
acknowledged by grantor, is sufficient and warrants perfect title in
the grantor and against all previous incumbrances; omitting the
word "warrants” sufficient, but without any warranty. Dower and
homestead rights not waived unless wife joins in the mortgage. No
homestead right will avail against the mortgagee if there is no wife,
nor if wife joins in the mortgage. Married women of full age joining
with husbands in any deed, mortgage, power of attorney or other
writing, shall be bound in respect to their own title.
Corporations. Banks, mining, manufacturing, insurance—fire,
marine, accident, burglary—printing and publishing, manufacturing
and mercantile, or a union of the two, partnership associations, real
estate associations, real estate, railroads, street railways, co-operative
benefit associations, co-operative savings associations, and religious
societies, are respectively organized under State general laws; required
to file with the secretary of state, articles of association.


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Business Corporations. Three or more persons may organize.
One half of capital mast be actually subscribed and at least 10 per
cent either in money or property must be paid in; if in property same
must be for the purpose of the business, and described and its value
specified in the articles. Stockholders vote in person or by proxy.
Each share has as many votes for directors as directory numbers,
and the aggregate vote may be distributed for one or more of direc­
tors. May issue preferred and common stock of the par value of
$10 or $100, and also non-par common stock. Preferred entitled to
dividend not to exceed 8 per cent quarterly, semi-annually or annually
and if not paid be accumulated, and paia, before any dividend paid on
the common. Articles of association to be recorded in the county
clerk’s office of county where operations carried on, and office of the
secretary of state. May hold real estate for the purpose of the cor­
poration and such as acquired as security or in payment of debts,
managed by not less than three directors chosen by the stockholders
annually hold office until successors are chosen; make duplicate reports
in January or February annually for the fiscal year last ending, of the
financial condition and property of the corporation to secretary of
state, stockholders are liable for labor debts; they make all by-laws for
corporation. Foreign corporations organized under the laws of any
other state of the United States or of any foreign country, unlawful
to carry on business in this state until certificate of authority procured
from secretary of State; not capable of making valid contracts in this
state until authorized to carry on business; unlawful for any person to
act as agent of until authorized to do business. Sales of goods or
merchandise by the right of inter-state commerce not affected by
state laws.
Courts. Terms of Jurisdiction. Circuit courts, holding two
or more terms annually in each county, have original jurisdiction in
all cases of law and equity wherein the amount in controversy is $100
and upwards; and have appellate jurisdiction from justice of the
peace probate courts, and other inferior tribunals. Justice courts in
each county have jurisdiction of cases at law involving from $100 to
$500. In Grand Rapids is a "Superior Court” for civil cases, limited
to parties resident of the city. Probate courts in each county have
jurisdiction of estates of deceased persons and testamentary trusts
Supreme court has final appellate jurisdiction from circuit, munic­
ipal and recorders’ courts.
Days of Grace. Abolished.
Depositions. Testimony of any witness without the State of
more than fifty miles from the court may be taken de bene esse,
before any judge of any state or of the United States, or of any foreign
country, or before any circuit court commissioner in this or any other
state, or of the United States, or any commissioner of this State, any
consul or consular officer, justice of the peace officer, or notary public
authorized to administer oaths in the state or county where taken
and not interested as attorney or counsel or in the event of the cause;
reasonable notice given in writing by party or his attorney proposing
to take to opposite party or his attorney of record, stating names of
witnesses, time and place of taking and official before whom to be
taken. Commissions to take depositions of any witnesses may be
issued by circuit court wherein the suit is pending or by the judge or
register thereof, or by a justice of the peace in a suit before him on
written interrogatives. Fees for taking, certifying, sealing and for­
warding $2; for each 100 words in deposition ten cents and copies
three cents. Each party pays for his own examination or cross
examination in the first instance.
Descent. Real estate and personal property of intestate after
payment of debts and administration expenses and allowances, as
follows:
Real Property. One-third to widow, remaining two-thirds to his
Issue; if no widow the whole to his issue to share equally if of same
degree of kindred to intestate, otherwise by representation; if no
issue, husband or widow to the father and mother in equal shares,
if only one living to the survivor alone. If surviving husband or
widow and no issue, one-half to such survivor, remainder to father
and mother or their survivor. If no issue or parents, husbands or
widow, equally to brothers and sisters and the children of deceased
brothers and sisters; if none such relatives, to next of his kin in equal
degree through nearest ancestor; if any unmarried child dies under
age, his or her inheritance from any parent, to other surviving children
of same parent and their issue by representation. If husband or wife
survive and no issue, parents, brothers or sisters, or their children to
husband or wife, and if no foregoing relatives whomsoever estate
escheats to State. Illegitimates heir to mother; dying intestate
estate descends to mother or her relatives if she be dead; become
legitimate by parents, intermarriage or father’s written acknowlment. The foregoing provisions for the widow are in lieu of dower
and homestead right unless one year after administration granted
she applies for assignment of dower and homestead in which case
her interest in deceased husband’s lands is limited to the dower and
homestead right and the residue shall descend as above provided for
that portion not taken by her.
Personal Estate. Residue — one-third to widow, two-thirds to
children or issue by representation; one child; one half to child and
one-half to widow; no widow or child, to all lineal descendants equally
If widow and no children or issue, to widow, not exceeding $3,000;
estate excess of that, one-half excess to widow, other half to surviving
parents, and if none such to brothers or sisters; and none such, all
such excess to widow. Married women intestate, one-third to hus­
band, two-thirds to her children or their issue by representation,
only one child or issue of deceased child; to husband and such child
equally; if no child or issue of deceased child, one-half to husband
and other half to surviving parents, and if none, to brothers or sisters
or issue of them and if none, all to hasband. In any other case same
as for real property. Estates by curtesy abolished.
Dower. Wife entitled to use of one-third part of all lands owned
by her husband as estate of inheritance any time during marriage.
No dower as against mortgages for purchase price, or mortgages made
before marriage, except in surplus. Must exercise option to take
dower in lieu of rights under will or statute within one year after
administration; residing in this State and eighteen years of age and
upwards may bar by joining in husband’s conveyances and mort­
gages or by deed alone to one who has husband’s title, intent to bar
being expressed; or by jointure secured as bar.
Execution. May issue to any county at once, unless stayed after
Judgment in circuit court, in justice courts, expiration of five days;
not liens on real estate or personal property until levy by proper
officer. Real estate is sold without appraisement to the highest
bidder, except homestead, to determine excess of value above $1,500
redemption claim. Defendant or his heirs or assigns may redeem
within twelve months, his judgment creditors and others having valid
liens within fifteen months from date of sale. Execution against the
body may be issued on all judgments in actions of tort. Personal
property levied on, after setting off exemptions, may be sold on six
days’ notice at public sale, to highest bidder to a sufficient amount to
satisfy the debt and costs; no redemption after such sales. Execu­
tions from justice courts do not run against real estate.
Exemptions. Homestead—selected by the owner and occupied
by him; not exceeding forty acres of land and dwelling thereon; or one
lot with dwelling thereon within any recorded town plat or city or
village not exceeding in value $1.500. Same cannot be alienated or
Incumbered without consent of wife or sold on any execution or any
other final process from any court, unless appraised to exceed the
value of $1,500 and that amount is paid or realized on sale under
such process. Exemption of homestead continues during its occupa­
tion by the widow or minor children of deceased person who when
living occupied the same.
Fraud. Criminal fraud—obtaining the signature of any person,
firm, or corporation with intent to defraud. Fraudulently issuing or
gelling or duplicating and disposing of any stock, scrip, or evidence of

BANKING AND COMMERCIAL LAWS—MICHIGAN
debt of any bank or other incorporated company of this State; issue
of any false receipts by warehousemen, merchants, or their agents—
receipt; or to wrongfully dispose of or convert property to their own
use after issuing receipt; wrongfully removing or disposing of any
personal property by any agent delivered upon written agreement or
instructions; wrongfully to dispose of property covered by chattel
mortgage by mortgagors or of property held by contract of purchase
without legal title by such purchaser or of property held under any
lease by lessor. For any officer or stockholder of any bank or any
other person for such bank; to sign, issue or knowingly put in circula­
tion any note or bill of any such bank, before the capital stock is
paid in, or before the president and directors thereof have complied
with the law; for any officer or agent of any bank knowing such bank
to be insolvent or in contemplation of insolvency, or for any assignee
of the property of such bank to sell or dispose of any money or property
of such bank with intent to defraud, delay or hinder creditors thereof,
or for any agent or person to fraudulently obtain or dispose of any
money belonging to any insurance company organized in this State.
Frauds—Statute of. No executor or administrator is liable on
any special promise to answer damages out of his own estates.
Fraud, Civil. Sales, transfers, and assignments of stocks of goods,
wares, merchandise, and fixtures in bulk, pertaining to conduct of any
business, otherwise than in ordinary course of trade of seller, etc.,
void as against creditors, unless the seller, etc., five days before sale,
make inventory of the goods and cost price to seller of each article
and unless the purchaser demands from seller list of names and
addresses of creditors and his indebtedness, and within five days
before taking possession and payment notifies every creditor of such
sale.
Garnishment. Process may issue in any action brought in any
Justice court or circuit court on contract expressed or implied, judg­
ment or decree, to hold whatever property any person may own or
have belonging to the debtor. Bills of exchange and promissory
notes due in the garnishee’s hands at the time of serving summons
are garnishable. Property, real, or personal, things in action, equitable
Interests, held by fraudulent transfer from the debtor and any prop­
erty liable to execution or to the payment of the debts of the debtor
in the garnishee's hands may be recovered; wages of any householder
not more than $30 and less then $S for his personal labor, and of any
other person for labor not more than $15 and not less than $i; wages
cannot be garnished until after judgment has been given against
debtor; and benefits payable by fraternal beneficiary societies, shares
in building and loan association of any debtor, except as to one having
a homestead exemption, are exempt from garnishment.
Holidays. (Legal) January 1st, February 12th, February 22d,
May 30th, July 4th, first Monday in September, Thanksgiving Day
as specified by the Governor of State, December 25th; every Saturday
from 12 o’clock noon to 12 o’clock mb*light, all National. State.
County, or City election days. When Christmas or any similar holiday
falls on Sunday, the following Monday the legal holiday.
Husband and Wife. If sued together she may defend and if
either neglect to defend the other may be ordered to defend for both.
If he deserts her she may be authorized by the probate court to prose­
cute or defend in his name. If either wrongfully retains the other’s
property, acquired before or after marriage, the owner may sue for
same as if unmarried. Neither liable for the debts of the other before
marriage, nor earnings or property of either nor the income thereof,
nor shall either be liable to make compensation for labor or services
rendered for the other. Husband is liable after marriage for family
expenses, and for debts incurred by the wife with his express or
Implied authority. Either may constitute the other an attorney in
fact to dispose of property. Expenses of family and children’s edu­
cation are not chargeable upon the property of the wife but are
chargeable against the husband and he may be sued therefor.
Interest. Legal rate 5 per cent but by written agreement may be
charged not to exceed 7 per cent. Forfeiture of all interest is penalty
for usury. When any installment of interest upon any note, bond,
mortgage or other written contract shall become due and remains
unpaid, interest is allowed on such installment from the time it became
due at same rate specified in the obligation or at the legal rate. Legal
rate collectable on all moneys due on any written obligations and on
all moneys due on all contracts express or implied, whether verbal
or written: and on settlement of accounts from day of ascertaining
balance due; and on judgments from day of entry; and on verdicts of
jury from date to date of entry of judgments thereon. In computing
time of interest and discount on negotiable paper, a month means
a calendar month and a year a calendar year of twelve months.
Judgments of courts of record are not liens on real estate or
personal property until by levy thereon of execution issued from the
courts upon such judgments. Liens under execution levied upon
real estate exist five years from and after the levy. Judgments expire
by limitation in ten years from date of entering in courts of record
and six years in justice courts, and cannot be renewed except by action
at law thereon before expiration. Judgments of the justice of the
peace may be entered in the circuit courts on transcript duly taken
to the circuit court and thereupon become judgments of such circuit
courts.
Liens. Any person, who pursuant to a contract with any owner,
part owner or leasee of any land, furnishes labor or materials in the
construction of a building, etc., on such land, shall have a lien on such
structure and land to the extent of one quarter section or if in a city
or village, the lot or lots upon which such structure is situated. And
any sub-contractor, who furnishes materials or labor in carrying fore­
ward or completing such contract shall have a lien upon such building
and iand to the extent of the interest of such owner, etc. Any person,
artisan, or tradesman for labor and skill applied upon any property
delivered for that purpose shall have a prior lien for amount due for
such labor. Hotels, boarding houses and lodging houses have a lien
upon baggage and other valuables of guests, boarders or lodger for
accommodations. Any person keeping and caring for domestic ani­
mals intrusted to them for that purpose have a lien for proper charges.
Limitation of Suits. Judgments of courts of record ten years,
justice court judgments six years; accounts and notes and other
simple contracts and for taking, detaining or injuring goods and
chattels, six years from the date the action accrued; revivor; part
payment, or promise in writing to pay. Absences from the State
deducted from the period of limitation. Mortgages fifteen years
after due or after last payment thereon. For trespasses on lands,
assault and battery, false imprisonment, slanderous words or libels
and mal-practice against physicians, surgeons, and dentists, two
years. For misconduct of sheriff or their deputies, three years, and
for personal injuries three years. For the recovery of real property,
five years where the claim arises against executors, guardiau’s or
sheriff’s deed; five years where the delendant claims and is in pos­
session of lands under deed made by auditor general of this State for
taxes; and by minors and others under legal disabilities three years
after removal of such disabilities; in all other cases fifteen years.
Limited Partnerships. May consist of one or more general and
one or more special partners. Specials contribute specific amount
of capital in cash or property at cash value, and if actually paid in
not liable for firm’s debts in excess of such special capital. General
partners transact the business of the firm.
Married Women. May make contracts in respect to their own
property and may hold and enjoy, and have the same rights and
remedies regarding their property as if unmarried. They may carry
on business in their own names with their own property by consent
of their husbands; cannot enter into partnership with husband or
any other person and become liable for the firm contracts. Married
women’s contracts to pay or to become liable for debts of husbands or
other person voidable, may however charge their real estate or per­
sonal property to secure such indebtedness by deed, mortgage or
contract. Married women are entitled to have and to hold their


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Federal Reserve Bank of St. Louis

2259

earnings made by their own personal effort, and may make any con­
tracts relative thereto.
Mortgages on real estate, executed and acknowledged the same
as deeds; may be foreclosed under power of sale by advertisement
or in circuit court in chancery of the county wherein the property
Is situated. Trust deeds not in customary use but may be made and
executed and will be treated as mortgages.
Chattel mortgages and bills of sale; intended as security by mort­
gagor, signed and delivered to the mortgagee, sufficient between the
arties, but void as to creditors, subsequent purchasers and encumrancers in good faith and without notice, unless such mortgages and
bills of sale or true copies are filed in the city or township clerk’s office
where mortgagor resides, or if non-resident of State, in city or town­
ship where the property is situated; and unless affidavit of mortgagor
or of some one for him having knowledge of the facts is annexed to
the mortgage or bill of sale, showing consideration is actual and
adequate and in good faith. Without such affidavit officers forbade
to receive and file such mortgages; cease to be valid against creditors,
subsequent purchasers, and encumbrancers in good faith, on expira­
tion of year from filing date, unless renewed within thirty days next
preceding expiration by affidavit of mortgagee showing his interest,
etc., filed and annexed to the mortgage in said clerk’s office; likewise
each succeeding year while the mortgage exists.
Negotiable Instruments. A promissory note is an unconditional
promise in writing to pay a sum certain in money, on demand, or at
a fixed and determinate future time, to the order of a specified person
or to bearer.
A bill of exchange is an unconditional order of one person to another
requiring the drawee to pay to a certain person, or order, or bearer on
demand or at a fixed or determinate future time a certain sum of
money. May be payable in installments and contain provisions that
on default the whole sum of money shall become due with exchange,
fixed or current rate, interest and attorney’s fees for collection. May
authorize sale of collaterals and confession of judgments. If it reads
“I promise to pay,” all makers are jointly and severally liable. Must
not be payable upon contingency. Cannot waive exemption from
execution. Need not specify “for value received” nor place where
drawn or payable. If issued, accepted, or indorsed, when over
due is payable on demand. May be payable to two or more payees
jointly or one or more of several payees. Want or failure of con­
sideration, a defense against one not a holder in due course, partial
failure a defense pro-tanto. One not a party, or the payee of the
paper placing a signature in blank on the paper before delivery becomes
an endorser. Indorser engages on due presentment the paper shall
be honored and that he will pay to holder or any subsequent indorser,
who may be compelled to pay: where maturity falls on Sunday or on
a holiday, payment due on the next business day; but where all of such
day not a holiday may if payable on demand be presented before noon.
Fraud in procuring signatures and delivery defense against any
bolder.
Presentment not necessary to charge anyone primarily liable. If
not payable on demand present on the day due; if on demand present
within a reasonable time after issue; bill of exchange payable on
demand present reasonable time after last negotiation.
Fraudulent or material alterations do not affect the original instru­
ments in the hands of innocent holder in due course.
Unconditional promise in writing to accept a bill of exchange,
given before or after drawn, valid in favor of all who take it upon
faith thereof for value; holder may decline qualified acceptance; if
he takes qualified acceptance, drawers and indorsers are discharged.
Protest of foreign bills of exchange may be made by a notary public
or any respectable resident of the place of payment in the presence of
two or more creditable witnesses; drawee is not liable unless he accepts.
Check or a bill of exchange on a bank payable on demand, must be
resented reasonable time after issue, and if dishonored notice must
e given or drawer is discharged to extent of loss caused; does not
operate to assign any part of drawer’s funds; bank is not liable unless
It accepts or certifies. If holder has check certified drawers and
Indorsers are discharged.
The present negotiable instruments law of Michigan took effect
Sept. 16, 1905. and repeals all acts or parts of acts inconsistent with
Its provisions; but does not apply to instruments made prior thereto;
materially changes the law in this State and should receive special
examination in every doubtful case.
Power of Attorney. Almost every act that any person, firm or
corporation may perform, may be performed by an attorney in fact.
Conveyances, mortgages, or leases for more than three years’ term
by attorney in fact, tbe power of attorney must be in writing signed,
sealed and acknowledged same as a deed of lands, to be admitted for
record or to proof thereof.
Probate Law. (See Administration of Estates.)
Protest. (See Negotiable Instruments.)
Replevin. Goods or chattels wrongfully taken or detained may
be replevined by owner or part owner or party entitled to possession.
Affidavit of plaintiff or agent necessary for issue of writ. If from
circuit courts plaintiff required to give bond with sufficient sureties
to the officer within twenty-four hours after seizure and appraisal of
the property which must not be delivered to plaintiff within fortyeight hours; and in the meantime if the defendant shall give sufficient
bond to the officer he shall return the property to the same person
from whom he took it; in that case if plaintiff recovers he may recover
on the defendant’s bond; if he fails defendant may recover on plain­
tiff's bond according as the judgment may warrant. In justice courts
bond with sufficient sureties must be given and filed in double value
of the property before writ issues.
Taxes. State and county payable every year after December 1st,
delivered to county treasurer March 1st, thereafter, and if delinquent
bear interest 1 per cent per month. Returned to auditor general of
State, if not paid, and by him enforced by foreclosure in chancery in
every county, and the taxable property sold under decree of the
court by county treasurer each parcel for the amount of taxes and
charges against same; redeemable one year thereafter and does not
become absolute until proceedings taken by purchaser or writ of
assistance, which must be instituted within five years by service of
written notice upon owners six months before application for such
writ. If decree regular and property taxable, and due notice is given
and served, purchaser is entitled, upon due proof thereof to writ of
assistance and possession unless redeemed pending the notice by
payment, of double the amount paid by purchaser and $5.00 for each
parcel redeemed. City taxes are governed by charter or by the
general act under which cities and villages are organized.
Wills. Codicils. Every person of full age (twenty-one years) and
of sound mind mav make; must be in writing, signed by testator or by
some person in his or her presence duly authorized by him or her and
attested and subscribed in his or her presence by two or more witnesses
competent as such at the time. If one of the suitscribing witnesses
shall testify to the execution of the will in all particulars and testa­
tor was of sound mind at the time will was made, the court may
admit the will, in case no person appears to contest it: if none of
the witnesses reside in the State at the time of proving the will, the
court, may admit the testimony of other witnesses to prove testator’s
sanity and execution and proof of the signature of testator and sub­
scribing witnesses. Probate of will conclusive of Its due execution
and cannot be assailed collaterally. Foreign wills, duly admitted to
probate without the State, may be admitted and recorded in any
county of the State In which testator left real or personal estate by
duly filing, an exemplified copy of said will and of the record admitting
same to probate. A nuncupative will in which the value of the estate
bequeathed does not exceed $300, duly proved by two witnesses, may
be allowed. Wills may be revoked by burning, tearing, cancelling,
or obliterating with intention of revoking same by testator, or by some
other writing signed, attested, and subscribed in tbe manner provided
for execution of wills but shall prevent revocation Implied by law.

2260

BANKING AND COMMERCIAL LAWS—MINNESOTA
SYNOPSIS OF

THE LAWS OF MINNESOTA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Oppenheimer, Dickson, Hodgson. Brown & Donnelly
Attorneys at Law, St. Paul. (See Card in
Attorneys’ List.)
Acknowledgments may be certified by the following officers:
1. Within the State by a resident judge, clerk or deputy clerk of
any court of record therein. Secretary of State, a notary public justice
of the peace, town, city or village clerk, or recorder, court commissioner,
register of ieeds. or county auditor, or their deputies, county commis­
sioner, or member of the legislature. 2. Out of the State but in the United
States by a judge of the supreme, circuit, or district courts of the
United States, or of any court of record of any state, territory, or dis­
trict. the clerk or a deputy clerk of any such court, a notary, a justice
of the peace, or any commissioner appointed by the governor of this
State for that purpose
3. In foreign countries by a notary public,
or by any minister, charge d’affaires, commissioner, consul, commercial
agent or other consular or diplomatic officer of the United States
appointed to reside in such country, and deputies or other represen­
tatives of such officers. The form of the certificate may be, “On
this......................day of............................ , 19........... before me personally
appeared...........................to me known to be the person described in,
and who executed the foregoing instrument and acknowledged that
he executed the same as his free act and deed.’’ In case of corpora­
tion it may be, “ On this......................day of.......................19...........before me
appeared A. B. to me personally known, who being by me duly sworn
did say that he is the president (or other officer) of (name of corpora­
tion) , that the seal affixed to the foregoing instrument is the corporate
seal of said corporation and that said instrument was executed in
behalf of said corporation by authority of its board of directors, and
said A. B. acknowledged said instrument to be the free act and deed
of said corporation.” If made outside the State the impression of the
official seal of the certifying officer must be affixed, or there must be
attached the certificate of the clerk of a court of record of the county
or district in which it is made under his seal that the signature of the
certifying officer is genuine.
Actions. The distinction between actions at law and suits in
equity is abolished. There is only one form of action. It is called
a civil action and must be prosecuted in the name of the real party
In interest except that executors, administrators, trustee of an express
trust and persons expressly authorized by statute may sue without
joiniug the person for whose benefit the suit is brought.
Administration of Estates. Estates of deceased persons are
administered in probate courts of which there is one in each county
presided over by the probate judge of the county.
In granting letters of administration preference is given: 1. To
the surviving spouse or next of kin or such suitable person as they
or either of them select. 2. If no application is made for thirty
days after death of intestate, to principal creditor or creditors, or
some person interested, and if deceased was native of foreign country
to the consul or other representative of that country residing in this
State, or to such competent and suitable person as he may select.
Upon granting letters the court makes an order limiting the time
within which creditors may present their claims. This time must
not be less than six or more than twelve months; but may be extended
for good cause to a date not more than eighteen months after notice
given of the order. On proof by affidavit that there are no debts
the time limited may be three months. Notice of the order is given
by publication thereof once each week for three weeks in a newspaper
in the county. Claims not presented within time limited are barred.
Non-resident executors and administrators may sue in this State.
Aliens. (See right to hold property.)
Arbitration. All controversies which can be the subject of a civil
action may be submitted to one or more arbitrators for decision,
except a claim to an estate in fee or for life in real estate.
Arrest. There is no arrest for debt.
Assignments. Statutes relating to assignments for the benefit of
creditors are in force except as affected by the U. S. Bankruptcy Act
of 1898.
Practically they may be said to be superseded by that act.
Attachment. Before allowing a writ of attachment, the court
must require of the plaintiff a bond in the sum of at least $250. and
an affidavit of the plaintiff, his agent or attorney. (1) That the debt
was fraudulently contracted or (2) the defendant is a foreign corpora­
tion or non-resident or (3) has departed from the State as he believes
with intent to defraud or delay his creditors, or to avoid the service of
a summons or keeps himself concealed therein with like intent or (4)
has assigned, secreted, or disposed of his property with intent to delay
or defraud his creditors or is about to do so.
Banks. Three or more persons may incorporate as a bank. They
must first secure from the State Securities Commission a certificate of
authorization, which is granted or denied after a hearing and intro­
duction of evidence. The capital required is at least $20,000 and a
surplus of at least $4,000 in a municipality not over 1,000 population,
and at least, $25,000 and a surplus of at least $5,000 in one over
1,000 and not over 5,000, and at least $40,000 and a surplus of at
least 88,000 in one over 5,000 and not over 100,000, and at least
$50,000 and a surplus of at least 810,000 in one over 100,000; pro­
vided, however, that the Securities Commission, in their discretion
may permit the organization of a bank with $10,000 capital and a
surplus of $2,000 in a municipality with a population of less than 500
wherein there is no bank. Capital and surplus must be paid in full
in cash, and certified to the Commissioner of Banks under oath of
the President and Cashier before it shall be authorized to commence
business. Stockholders are individually liable for debts ot the bank In
an additional amount equal to the par value of the stock owned by
them, and this liability continues one year after the transfer of the
stock. Surplus in 20% of the capital must, be maintained unimpairedEvery bank must make to the superintendent or banks not less than
four reports each year which must be published. Liabilities to a bank
of any person, corporation or firm, for money borrowed, including
therein liabilities of the several members thereof, shall at no time
exceed 15 per cent, of its capital and surplus. It must have a reserve
equal to one-fifth of all its matiued or demandable liabilities, one-half
of which must be cash, and the remainder may be balances due from
solvent banks. In case of insolvency or violation of the banking laws,
the superintendent of banks may take possession, and apply to the
court for a receiver. Branch banks are prohibited.
Bills of Lading. The Uniform Bills of Lading Act became effec­
tive April 20, 1917.
Initial Carrier receiving property for transportation between points
within the State, liable for loss, damage or injury caused by it or
other carrier en route, and all contrary provisions in Bill of Lading
void.
Blue Sky Law. The commission consists of three members, the
commissioner of banks, the commissioner of insurance and the com­
missioner of securities. The law prohibits the selling by anyone
of securities within the state until such securities have been registered
with the commission and until the commission has granted permission
to sell the same. Securities are defined to include any stock, share,
bond. note, debenture, commercial paper, evidence of indebtedness,


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investment contract, interest in or under a profit sharing or partici­
pating agreement or scheme, any interest in or under any oil, gas or
mining property or in any property represented to contain or be a
prospect for oil, gas or minerals, beneficial interest in a trust or pre­
tended trust or any interest in the capital, assets, property or profits
of any person
The commission is given rather extensive powers to regulate the
selling price of securities and cost of promotion, to fix the conditions
under which a permit shall be granted to require the furnishing of
relevant information, and to suspend or annul existing permits.
The more important securities exempt under the act are: (1) Any
security issued or guaranteed by the United States or by any state,
territory or insular possession thereof, or by the District of Columbia,
or by any political subdivision or agency of a state, territory or insular
possession having the power of taxation or assessment; (2) Any
security issued or guaranteed by any foreign government with which
the United States is at the time of the sale thereof maintaining diplo­
matic relations, or by any state, province or political subdivision
thereof having the power ot taxation or assessment: (3) “Any security
issued by and representing an interest in, or issued by and representing
a direct obligation of, a state bank organized and operating under
the laws of Minnesota; and” Any security issued by a national bank
or by a corporation or governmental agency created by Congress other
than those created under the code of laws for the District of Columbia or
for any territory or possession of the United States, provided such
corporation is subject to supervision or regulation by the United
States Government: (4) Certain securities issued or guaranteed by
railroads or public service utilities: (5) Securities listed on the New York
Stock Exchange. Boston Stock Exchange. Chicago Stock Exchange,
which securities have been so listed pursuant to official authorization
by such exchange, and all securities senior to any securities so listed,
“subscription rights so listed,” or evidences of indebtedness guar­
anteed by companies any stock of which is so listed, such securi­
ties to be exempt only so long as such listing shall remain in
effect; (6) Commercial paper or negotiable promissory notes matur­
ing within fourteen months from the date of issue; (7) Securities
of certain corporations organized for religious, educational and chari­
table purposes, and not for pecuniary gain; (8) Policy contracts of
insurance companies licensed to do business in the state; (9) Any
security issued by a building and loan association organized under
the laws of this state; (10) Securities of cooperative associations
organized under the laws of the state for agricultural, dairy or live­
stock purposes.
Certain sales are exempt, such as isolated sales; sales of notes
or bonds secured by a mortgage lien when the entire lien, together
with all notes or bonds secured thereby, is sold to a single purchaser
at a single sale; sales made under the order of court; stock dividends
or issuance of increase of stock to existing stockholders where no
commission is paid; sales to banks, savings institutions, trust com­
panies, insurance companies or licensed brokers.
Chattel .Mortgages. Every mortgage of personal property which
is not accompanied by immediate delivery and followed by actual and
continued change of possession is void as to creditors and subsequent
purchasers and mortgagees in good faith, unless it is made in good
faith, attested by two witnesses, acknowledged and filed with the
register of deeds of the county in which the mortgagor resided at
the time of its execution, is a resident of the State, or of that in which
the property was then situated if a non-resident. If the mortgagor
resides in St. Paul, Minneapolis or Duluth or is a non-resident, and
the property is situated there, the mortgage must be filed with the
city clerk of such city instead of the register of deeds of the county.
Duplicates or copies certified by any officer with whom the mortgage
has been properly filed, may be filed in other places wherein any part of
the property was situated when the same was made. As against
creditors of the mortgagor and subsequent purchasers and mortgagees
in good faith the lien does not continue beyond the term of six years
from the date of filing the mortgage unless the indebtedness is not
then due and payable by its terms, in which case it continues two years
after the maturity of the debt and no longer.
Every mortgagee of a chattel mortgage shall at the time of its
delivery make and deliver to the mortgagor a full, true and complete
copy of such mortgage. No register of deeds nor city clerk is allowed
to receive or file any chattel mortgage which does not contain a
receipt of the signer of the mortgage to the effect that a copy of such
mortgage has been received by him.
Chattel mortgages given by a married man or woman on property
exempt from execution must be executed by both husband and wife
if living.
Conveyances. Deeds and mortgages of real estate must be exe­
cuted in the presence of two subscribing witnesses and to entitle them
to record must bo acknowledged by the person executing the same.
Conveyances made out of the State, may be executed as above, or
according to the laws of the place of execution.
Corporations. May be organized by any number of persons, not
less than three, for the purpose of engaging in any lawful business.
The amount of capital stock shall in no case be less than $10,000,
divided into shares of not less than $1.00 or more than $100. The
incorporators must sign and acknowledge a certificate specifying: 1.
the name, general nature of business, and principal place of transacting
the same, 2. Period of its duration, if limited. 3. Names and places
of residence of incorporators. 4. In what board management is
vested, date of annual meeting at which such board shall be elected,
names and addresses of persons composing board until first election.
5. Amount of capital stock, how the same is to be paid, number of
shares and par values of each, and if more than one class, a descrip­
tion, and terms of issue and method of voting of each. 6. Highest
amount of indebtedness to which corporation shall be subject. This
certificate is filed with the secretary of state and with the register
of deeds of the county in which the principal place of business is
located and published in such county two successive days in a daily
newspaper, or tw > successive weeks in a weekly.
Every stockholder in any corporation, except those organized for
the purpose of carrying on a manufacturing or mechanical business
Is liable to creditors of the corporation in an amount equal to the par
value of the stock owned by him.
foreign Corporations. Every foreign corporation organized for
ecuniary profit before it can transact or continue business in this
tate, acquire, hold or dispose of property or bring suit here must
appoint an agent residing in the State, authorized to accept service
of process, and must file with the secretary of state an authenticated
copy of such appointment and of its charter and a verified statement
showing the proportion of its capital stock represented by its property
and business in tnis State, and upon that it must, pay a fee. This act
does not apply to exclusively manufacturing corporations, traveling
salesmen soliciting business for non-resident corporations, nor to those
engaged only in the business of loaning money or investing in securities,
nor to those organized to raise and improve live stock, cultivate farms,
can fruits or vegetables, nor to those whose sole business is transpor­
tation of freight or passengers by water.
Courts. District courts hold one or more terms a year in each
organized county, have original jurisdiction in all civil actions at law
and in equity, and in all criminal cases where the punishment exceeds
three months’ imprisonment or a fine of more than $100.
The supreme court has appellate jurisdiction in all cases, but there
Is no trial by jury in that court. It has original jurisdiction in such
remedial cases as are prescribed by law.
Probate courts have exclusive jurisdiction of matters connected
with the settlement of estates of deceased persons, minors, and insane
persons. Terms are held on the first Monday of each month in each
organized county.
Municipal courts exist in certain cities, and are courts of record with
limited jurisdiction in civil and criminal actions.
Justices of the peace have no jurisdiction in civil actions where the
amount involved exceeds $100.
Days of Grace are abolished.

BANKING AND COMMERCIAL LAWS—MISSISSIPPI
Depositions may be taken at any place within or without the
State upon notice in writing, stating the reason for taking the same,
the time and place, and giving the opposite party one day for prepa­
ration, and one day for every 100 miles, exclusive of Sundays and
the day of service, before any officer authorized to administer oaths.
Descent and Distribution of Property. Homestead descends
to surviving spouse for life, remainder to children and issue of deceased
children. If no children or issue of deceased child, then to surviving
spouse in fee, exempt from debts not a valid charge thereon at time of
Intestate's death. After payment of debts and certain allowances to
the surviving spouse out of the personal property, the residue of the
estate descends as follows: 1. One-third to the surviving spouse,
balance in equal shares to children and lawful issue of deceased child
by right of representation. 2. If no surviving child or lawful issue
of deceased child the whole estate descends to surviving spouse if
any. 3. If no issue or surviving spouse, to father and mother in equal
shares, or if but one survive, to such survivor. 4. If no surviving
Issue, spouse, father or mother, in equal shares to brothers and sisters
and lawful issue of deceased brother or sister. 5. If no issue, spouse,
father, mother, brother, sister, or living issue of deceased brother
or sister, to next of kin, in equal degree, but those who claim through
nearest ancestor preferred to those claiming through ancestor more
remote. 6. If no spouse or kindred. to the State.
Dower is abolished.
Employers Liability Act. Effective since April 24, 1913.
Executions issue from district courts any time within ten years
after judgment and may run to any county where judgment is docketed,
are returnable in sixty days and may be renewed for sixty days at a
time on reuest of judgment creditor or his attorney. Personal prop­
erty is sold on ten days’ posted notice: real estate on six weeks’ pub­
lished notice, and subject to redemption by judgment debtor or his
assigns within one year from date of sale.
Exemptions. Homestead outside of incorporated municipality
may include eighty acres. If in incorporated place containing less
than 5,000 inhabitants, its area shall not exceed one-half acre, and in
larger incorporated places, one-third of an acre without regard to value.
Family pictures, library, musical instruments for use of family, wear­
ing apparel, beds, stoves, cooking utensils used by family, other house­
hold furniture not exceeding $500 in value, three cows, ten swine, one
yoke of oxen, and a norse, or in lieu thereof, a span of horses or mules,
one hundred chickens, fifty turkeys, twenty sheep, the wool there­
from raw or manufactured, food for such stock for one year’s
supply, either provided or growing or both, one wagon, cart or
dray, one sleigh two plows one drag, and other farming utensils,
including tackle for teams, not exceeding $300 in value, pro­
visions for debtor’s family for one year’s support, tools kept for
purpose of carrying on trade, and stock manufactured in whole
or in part by debtor not exceeding in value $400; library of pro­
fessional man; presses, type, and tools of publisher of news­
paper, not exceeding $2,000, and his stock in trade not exceeding
$400; watch, sewing machine, typewriter, bicycle, seed for use of debtor
for one season not exceeding certain amounts and binding material
sufficient for use in harvesting the crop raised from such seed; library
and apparatus of college or school; money payable to wife or child
from insurance on life of deceased husband or father nor exceeding
$10,000; money or relief from benefit association; money from insur­
ance on exempt property; wages not exceeding $35 for services rendered
during preceding 30 days; but all wages paid and earned within said
thirty day period shall be considered a part of (or all) of said exemp­
tion (Chap. 202, Laws 1915.)
Holidays. January 1st, February 12th and 22d, Good Friday,
May 30th, July 4th, first Monday in September, Tuesday after first
Monday in November each even-numbered year (election day),
November 11th (Armistice Day), and December 25th are legal holi­
days. Thanksgiving day in so far that negotiable instruments or
contracts due that day are payable next succeeding business day. It is
provided that when Sunday and one or more legal holidays or two or
more legal holidays fall on the same day, and when Sunday and one or
more legal holidays, or two or more legal holidays, immediately
succeed each other, then negotiable instruments etc. shall be deemed
as due or maturing on the day following the last of such days.
Interest. Six per cent is legal rate, but by special contract any
rate not exceeding 8 per cent may be exacted. Usurious contracts
are void.
Judgments may be entered by default in district courts at expira­
tion of twenty days after service of summons. When docketed in those
courts they become liens upon all real estate of the debtor in the county
where docketed then owned by him or afterwards acquired, and the
lien continues for ten years after the entry of the judgment. Tran­
scripts of judgments in justice and municipal courts may be filed in
district court and there docketed, and then become lien on real estate.
Liens. To preserve a mechanics lien a verified statement must
be filed by the lien claimant within ninety days after furnishing the
last item of labor or material in the office of the register of deeds of
the county in which the improved premises are situated, or if claimed
upon a line of railway or its appurtenances with the secretary of state.
The lien may be released by a court order on deposit with the clerk
of the District Court of a sufficient sum of money to protect the lien
claimant, and anyone interested in the property may bring an action
in the nature of an action to determine adverse claims to remove the
lien. Action to foreclose the lien must be commenced within one
year of the time of the filing of the verified statement.
Limitation of Actions. On contracts express or implied six
years; judgments ten years; to foreclose mortgages fifteen years; to
recover real estate, fifteen years. But no action shall be maintained
on a judgment note, or other instrument authorizing Confession of
Judgment unless begun within one year after Cause of Action accrued;
and no action shall be maintained upon any judgment of any court of
the U. S. or of any State or Territory entered by Confession under a
warrant of attorney, unless the action upon such judgment be begUD
within one year after the rendition or entry thereof.
Married Women. Property acquired by wife before or after mar­
riage remains her separate estate. It is liable for her debts and torts
to the same extent as if she were unmarried, and she may make any
contract which she could make if unmarried, except that no convey­
ance or contract for sale of her homestead or any interest therein is
valid unless her husband joins in the same.
Both husband and wife are liable for necessaries furnished to and
used by the family.
Mortgages on real estate executed in the presence of two subscrib­
ing witnesses, acknowledged and recorded in the office of the register
of deeds of the county in which the mortgaged premises are situated
may be foreclosed by publication or by action. The mortgagor or his
assigns may redeem within one year from the date of the foreclosure
sale.
The authority of an attorney conducting a foreclosure by adver­
tisement, must be in the form of a Power of Attorney, executed and
acknowledged by the mortgagee or assignee in the same manner as
a conveyance and recorded prior to the sale In the County where
the foreclosure proceedings are had.
The mortgagor may covenant to pay or authorize the mortgagee
to retain any attorney's fee in case of foreclosure of not exceeding
$25; where the mortgage debt does not exceed $500; $50 where the
mortgage debt exceeds $500 and does not exceed $1,000; $75 where
the mortgage debt exceeds $1,000 and does not exceed $5,000; $100
where the mortgage debt exceeds $5,000 but does not exceed $10,000;
and $200 where the mortgage debt exceeds $10,000. Mortgagor or
subsequent lien holder may before foreclosure sale pay debt and costs
in full in which case attorney’s fee shall not exceed fifty dollars.
A Registry Tax of 15 cents is imposed upon each $100 or fraction
thereof of the principal debt secured by any mortgage covering prop­
erty within the State of Minnesota and recorded in said State, in


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2261

case the maturity of any portion of the debt so secured shall be fixed
at a date more than five years after the date of said mortgage, the
amount of such Registry Tax shall be at the rate of 25 cents on each
$100. No such mortgage or assignment or satisfaction thereof or
papers relating to its foreclosure, shall be recorded or registered unless
such tax has been paid, nor shall any such document or record thereof
be received in evidence in any court or have any validity as notice or
otherwise. If such mortgage describe real estate outside of Minne­
sota, such tax shall be imposed upon such proportion of the whole
debt secured as the value of the real estate described in this State
bears to the value of the whole real estate, such value to be deter­
mined by the State Auditor upon application of the mortgagee.
Notes and Bills of Exchange. Uniform negotiable Instruments
Law has been in force since April 15, 1913. Commercial paper is
payable at the time fixed therein without grace. When due or pay­
able on Saturday or on Sunday, or any legal or bank holiday, the
same is payable upon the business day next succeeding, and may
be protested on such succeeding day.
Kight to Hold Property. No person unless he be a citizen of the
United States, or has declared his intention to become a citizen, and
no corporation unless created under the laws of the United States, or
of some state thereof, shall acquire lands exceeding 90,000 square feet,
except by devise, inheritance, or through security for indebtedness.
This does not apply to actual settlers on farms not exceeding 160 acres,
or to subjects of a foreign country, whose rights to hold lands are
secured by treaty.
No corporation, more than 20 per cent of whose stock is owned by
persons not citizens of the United States, or by corporations not
created under its laws, or those of some state thereof, can acquire
lands, and no corporation unless organized for the construction or
operation of a railway canal or turnpike can acquire more than 5,000
acres or more than is necessary for its operation, and lands granted
it by the State or United States.
But this does not apply to lands acquired in the collection of debts
nor to a person or corporation engaged in selling lands to actual
settlers, or engaged in manufacturing in Minnesota while so engaged.
Such persons or corporations not so engaged must sell what they had
April 13, 1911. within ten years from that date and sell what they
acquire subsequent to that date within ten years after they acquire it.
Sales of Goods. The Uniform Sales Act became effective April 20
1917.
Securities Commission. See Blue Sky Law.
Taxes. Personal property is assessed once a year; real estate
every two years. Taxes on both classes of property are levied every
year. Taxes on real estate constitute a prior lien. LaDd on which
taxes not paid sold on second Monday in May each year. Redemption
may be made sixty days after service of notice of expiration of redemp­
tion; this notice cannot be served until the expiration of three years
after sale. Person redeeming must pay original tax penalties and
interest at the rate bid at the sale and in addition thereto costs. Onehalf of real estate taxes must be paid June 1 and if not, penalty of
5 per cent and 1 per cent per month until November 1 attaches.
Second half must be paid November 1, and if not then paid, a penalty
of 10 per cent attaches. Infants and persons of unsound mind may
redeem within one year after such disability shall cease, but the right
to redeem must be established in a suit in court. Moneys and credits
are subject to an annua! tax of three mills on each dollar of the fair
cash value thereof. Moneys and credits belonging to incorporated
banks located within the state are exempt. Real estate mortgage
indebtedness is exempt from the moneys and credits tax; but is taxed
under the mortage registry tax law at the rate of 15 cents per hun­
dred. except where the indebtedness or a portion thereof runs for a
longer period than five years and sixty days, in which event the
rate on such indebtedness or portion is 25 cents per hundred.
Wills. Every person of full age and sound mind may dispose of
property by will in writing signed by the testator, or by some person
in his presence and by his direction, attested and subscribed in his
presence by two or more competent witnesses. Every person includes
married women. If, after making a will the testator marries, the will
is thereby revoked

SYNOPSIS OF

THE LAWS OF MISSISSIPPI
RELATING TO

BANKING AND COMMERCIAL USAGES
Revised by Scott & Scott, Attorneys at Law, Capital National
Bank Bldg., Jackson Miss.
Accounts. Sworn to entitles plaintiff to judgment, unless defend­
ant files affidavit denying. The affidavit must be by the creditor or
his agent on actual knowledge, affidavit on information and belief not
sufficient. All accounts must be itemized.
Acknowledgments before any judge, clerk of a court of record
under his seal, justice of the peace, notary public, or member of the
board of supervisors, before any police justice, or mayor of any city,
town, or village. Acknowledgments in another state may be before
any of the judges of the supreme court, or any district judge of the
United States, or a judge of the supreme or superior court in any state
or territory, any justice of the peace, whose official character shall
be certified to under the seal of some court of record in his county,
or by any commissioner residing in such state or territory, appointed
by the governor of Mississippi, or a notary public or a clerk of a court
of record having a seal of office. Acknowledgments or proof of
deeds to property in this State by persons in a foreign country may be
made before any court of record, or the mayor or chief magistrate
of any city, borough, or corporation where the grantor or witnesses
reside, or may be. or before any commissioner appointed by the gov­
ernor of this State, or before any ambassador, foreign minister sec­
retary of legation, or consul of the United States. The certificate
shall show that this party or party ana witness were identifiea before
the officer, and that the party acknowledged the execution of the
Instrument, or that the execution was duly proved by the witness or
witnesses. Acknowledgment must state that party “acknowledged
that he signed and delivered" instrument.
Actions. All distinction as to forms abolished. Service five days
before return day. All action triable in the circuit court at first term
In which the defendant bas been personally served with process thirty
days before the return day. Mandamus, quo warranto, mechanics’
liens, attachments, and replevin triable at return term on five days
notice.
Administration of Estates. Had in chancery court, according
to will, if any. Claims against deceased must be registered within
six months after the first publication of notice to creditors; registra­
tion stops the general statute of limitations. AH debts are to be paid
before heirs, distributors, or legatees. Claims against insolvent
estates are paid pro rata.
Affidavits or Oaths before a judge of any court of record, clerk of
such court, master in chancery, member of the board of supervisors,
justice of the peace, notary public, mayor, or police justice of a city,
town or village; in another state by any officer thereof, or of the
United States, authorized to administer oaths.
Aliens. No restrictions on the rights of resident aliens to acquire
property or dispose of it. Non-resident aliens can not hold land, but
may take liens thereon to secure debts and purchase at foreclosure
thereof, and thereafter hold it for not longer than twenty years, with
power to sell to a citizen in fee; or he may retain it by becoming a
citizen. See title “Corporations.”

2262

BANKING AND COMMERCIAL LAWS—MISSISSIPPI

Appeals from justice court to circuit court within ten days. From
circuit and chancery courts to supreme court within six months, but
notice to stenographer must be given within ten days after adjourn­
ment of Court, in order to incorporate evidence in record. Appeals
also in certain cases from board of supervisors and municipal courts.
Arbitration. Parties may submit to arbitration of one or more
disinterested arbitrators, with agreement that proper court shall enter
judgment.
Arrests made by certain officers, or private persons may arrest for
offense committed in his presence. No arrests or imprisonment for
debt.
Assignments and Insolvency. No insolvent law. An assign­
ment may be made for the benefit of creditors. Debtor, though
Insolvent, may prefer creditors, if in good faith and no benefit, direct
or indirect, is reserved. No provision for the discharge of a debtor
on his making an assignment. In general assignments, where the
value exceeds $1,000, the assignee must give bond and administer
the trust in chancery. Preferences not prohibited. Practically super­
seded by bankrupt law.
Attachment. Against a debtor who is a non-resident or who
removes or is about to remove himself or property out of the State:
who so absconds or conceals himself that he cannot lie served with a
summons: or who incurred the debt in conducting the business of a
ship, steamboat or otner water craft in some of the navigable waters
of this State; or who assigns or disposes of his property, or some part
thereof, or is about to assign or dispose of his property with intent to
defraud his creditors; or who has property or rights in action which
he conceals and unjustly refuses to apply to the payment of his debts;
or who has converted or is about to convert his property into money;
or evidence of debt, with the intent to place it beyond the reach of
creditors; or who has fraudulently contracted the debt or incurred
the obligation for which suit has been or is about to be brought, may
be attached. In addition to those named above, the following grounds
exist: “9. That the defendant is buying, selling, or dealing in, or
has within six months uext before the suing out of the attachment,
directly or indirectly, bought, sold, or dealt in future contracts, com­
monly called 'futures.’ 10. That he is in default for public money,
due from him as a principal, to the State, or some county, city, town, or
village thereof. 11. That defendant is a banker, banking company,
or corporation, and received deposits of money, knowing at the time
that he or it was insolvent, or has made or published a false or fraudu­
lent statement sis to his or its financial condition.” Attachments for
debts not due allowed for last six grounds—or when the creditor has
just cause to believe that the debtor will remove himself or his effects
out of State before debt will be duo, with intent to defraud. Non­
resident creditors have the same rights of attachment as resident
creditors, whether the debtor be resident or non-resident. Plaintiff
must furnish bond double the debt and make affidavit as to one or more
grounds. Suit does not abate on verdict for defendant, on a plea deny­
ing grounds: but judgment on the debt, to be offset by damages in
favor of defendant for wrongfully suing out attachment. Any credi­
tors may intervene and contest ground of attachment.
Attachment in Chancery on bill against the property, or debts
of an absent, non-resident, or absconding debtor. Alien is acquired
by the suit. If a writ for the seizure of goods Is obtained, bond is
required. Available to non-residents.
Bad Check Law. The maker of any check, draft or order, on
a bank or depository, given for a present valuable consideration, is
subject to fine or imprisonment if he fails to make the same good,
and may be prosecuted where he delivered the check or where the bank
is located.
Banks. Required capital stock as follows: In cities, villages and
communities with population 1,000 or less; $10,000.00; Population
1,000 and not more than 2,500; $15,000.00: Population 2,500 and
not more than 6,000; $25,000.00: Population from 6,000 to 10,000:
$35,000.00: Population 10,000 or more; $50,000.00. No bank to
commence business until all of capital stock is paid up in money
and a certificate of public convenience obtained from the Superin­
tendent of Banks.
This does not apply to banks existing prior to 1914. Banks are
under the supervision of a Superintendent of Banks, which is elected
by the Banks of the State, who is assisted by Examiners.
Deposits guaranteed; depositors names not to be divulged; banks
penalized for failure to comply with orders of examiners; Banks
must have at least three directors; unlawful for any bank to receive
and hold deposits for six months in excess of ten times the paid up
capital and surplus, provided, however, any bank, by the permission
of the Superintendent of Banks may hold deposits not in excess than
15 times its capital and surplus, but permission may be withdrawn
upon six months notice.
All except National Banks are required to make a report upon
call by the Superintendent of Banks and such call shall be made by the
Superintendent for the said dates and as often as calls are issued by the
comptroller of the currency of the United States for reports from
National Banks.
The Superintendent shall prescribe the forms of such reports.
Said reports shall be sworn to by either the owner, President, man­
ager or cashier of the bank making them and attested by not less than
two of the Board of Directors; resources and liabilities shall be stated
in appropriate heads and the same shall be caused to be published
in the form prescribed by the Superintendent of Banks.
Banks must give notice to administrators or executors of deceased
persons of money or papers held by them for the deceased.
Directors of every bank to hold at least three regular meetings
each year and keep a complete record of all proceedings. Banking
corporations may exercise without amendments of their charter and
use charters authorizing them to engage in legitimate function of
trust company, provided, however, that before any Bank, whose
charter merely authorizes exercises of general banking functions
before performing the functions of the trust company, the previous
written consent of the Superintendent of Banks shall be obtained.
Foreign banks, National excepted, required to pay privilege license
before engaging in trust business. Publication of charter is not
required, but the same shall be recorded in the office of the Chancery
Clerk and one in the office of the Banking Department and one in
the office of the Secretary of State. Every bank with paid up captial
of as much as $100,000.00 may do business as trust company, may
not act as a guardian, perform the duties of a trust company, may
establish a special mutual loan department, in such department
interest on loans not to exceed 8% per annum. Bank not permitted
to allow the use of its name by others in making loans.
Banks are authorized to charge exchange of not exceeding onetenth of one per cent on “cash items” and never less than ten cents,
and shall charge exchange on checks and drafts payable to non­
residents, except the United States. Cash items shall not be protested
for non-payment of exchange, but payment may be refused unless
exchange is paid.
Blue Sky Law. Under this statute, certain statements, reports,
etc., must be made to the Secretary of State, and a permit received,
before the sales of stock in certain corporations. Since it is not the
class of corporation, or the object for which it is incorporated, that
determines whether it is subject to this act, but the promotion fees,
commissions, etc., that are to be paid out of the capital subscribed,
it is best that every corporation have its counsel examine this law
and determine for itself whether it should comply.
Chattel Mortgages and Deeds of Trust may be executed and
recorded as other mortgages. Foreclosure is usually by trustee’s sale.
If property be removed to another county, mortgage must be there
recorded within twelve months to affect purchasers without notice.
Mortgages on property to be acquired are valid, but not on a changing
stock of goods if the mortgagor remain in possession and continue


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business. Reservation of title by the seller oi a chattel to secure
purchase money is valid without record, even against purchasers
without notice, except as to chattels used or acquired in the business
of a “trader.” Banks, professional men and manufacturers, are not
traders.
Collaterals. General law prevails.
Contracts for sale of land, or for lease for more than one year,
to be in writing. Same in regard to sale of chattels of the value of
more than $50, unless delivery in whole or in part is made, or pay­
ment in whole or part Is made. Dealing in futures is forbidden and
a ground for attachment. Gambling contracts and ordinary con­
tracts made on Sunday void. Contracts by foreign corporations
who have not complied with registration of charter law are void.
Conveyances. May vest title presently or in future. All estates
in land greater than for one year must be by deed, and to affect pur­
chasers without notice must be recorded. Corporations must file all
deeds to them in sixty days. Estates tail prohibited, except that a
deed or devise may be made to a succession of living donees not
exceeding two and to the heirs of the body of the remainderman, or,
in default thereof, to the right heirs of the donor in fee. Corporations
convey under seal. In all other cases private seals abolished. Con­
veyances or devises to two or more, or to husband and wife, create
tenancy in common. Rule in Shelly's case abolished. Remainder
good without particular estate. The words “grant, bargain, and
sell" operate as a covenant that grantor is seized of some estate of
inheritance. Words “convey and warrant" operate as a general
covenant of warranty. The words "convey and warrant specially"
operate as a warranty only against the grantor or those claiming
under him. A quitclaim deed has practically the same effect. Hus­
band and wife, if living together must join in conveyance or incum­
brance of homestead of either, or it will be void as to all under $3,000.
Corporations.
Corporations except for the construction and
operation of a railroad other than street railroads, and the carrying
on of an insurance business, other than mutual insurance, may be
created under a general charter.
Application for charter signed by each (not less than two) of the
incorporators and acknowledged. It must then be published three
consecutive weeks in a newspaper published at the domicile of the
proposed corporation. The application with proof of publication,
must be forwarded to the secretary of state together with the fee for
recording, and he must refer the same to the attorney general for his
opinion as to the constitutionality and legality of the proposed cor­
poration, after which it is referred to the governor for his approval or
disapproval. The governor then returns it to the secretary of state
with his action endorsed thereon. If he approve it, the secretary of
state shall record it in his office and certify to the same and transmits
it to the applicants. It must be recorded in the office of the clerk of
the chancery court of the county in which the corporation shall do
business. Within thirty days after the organization, the corporation
must make report of the organization to the secretary of state. If
such report be not made the charter granted shall be void, and all
persons doing business thereon shall be deemed partners in the business
and liable as such
Corporations thus created possess the powers usual and incident
to private corporations generally, but existence is restricted to fifty
years. That all corporations, heretofore or hereafter organized,
whether they be domestic or foreign, are hereby authorized and
clothed with full power and right to own, in free simple or otherwise
lands for any legitimate purpose in this state; and no restriction
against such corporations holding lands for agricultural purposes
shall exist or obtain in this state, except that no one corporation shall
hold and cultivate for arricultural purposes more than 10,000 acres
of land in any one year. Corporations to file their deeds in the office
of the Chancery Clerk where the property is located within 60 days
after the date of the deed.
Stockholders individually liable for the debts the corporation con­
tracted during his ownership of stock for the balance that may remain
unpaid for stock subscribed for and may be sued by any creditor.
Directors are liable for the wilful mismanagement or for allowing
capital withdrawn while debts exist. Corporations under the laws
of other states or of foreign countries may sue in this State, and have
the same rights in the State as non-resident individuals. The legis­
lature may repeal or amend charters granted after November 1, 1890,
provided rights of stockholders are not infringed. All foreign cor­
porations doing business in this state shall file a certified and duly
authenticated copy of Its charter or certificate with the secretary of
state. Charter must be certified by the president and secretary or
other chief executive under the corporate seal. Fees are to be paid
according to capital stock, viz.: $10,000 and under, $20.00. Between
*10,000 and $30,000, $40.00. Between $30,000 and $50,000, $60.00.
When over $50,000, one-tenth of one per cent and not to exceed $250.
Costs. Non-resident or insolvent plaintiff required to give security
though an insolvent citizen may sue in forma pauperis.
County Court created, effective January 1st, 1927; concurrent
jurisdiction with Justice and Circuit Court in misdemeanor cases
and in civil cases in matters where amount involved does not exceed
$1000.00 and concurrent with Chancery Court up to same amount,
except matters in equity restricted by constitution. Court meets
monthly, rule of practice same as in court where jurisdiction would
have been except for county court. Certain counties only to said
court.
Courts. Terms and Jurisdiction. Justices’ courts meet twice each
month; circuit and chancery courts in each county twice a year;
supreme court twice a year in October and March. Justices’ courts
have jurisdiction up to $200. Circuit courts have general jurisdiction
of all common law actions where the amount or value exceeds $200,
and jurisdiction of appeals from justices’ and mayors’ courts, and
boards of supervisors. Cnancerv courts have jurisdiction of the
administration of estates of deceased persons, of minors’ business and
other probate matters, and of all matters in equity. Appeals may be
taken to the supreme court from any final judgment of the circuit
court, and from the chancery court, except in suits for not more than
*50 originating in the justice’s court. Suits of equitable cognizance
Improperly brought in the circuit court are transferred to chancery
court, and vice versa. No suit dismissed because being of an equitable
nature it is improperly brought in the circuit court and e converso.
Creditor’s Bills may be filed under general Laws to subject equi­
table assets and in aid of execution at law. Such suits may, under the
statute, be tiled to subject property of a debtor fraudulently conveyed
without a judgment and return of nulla bona; and this whether com­
plainant’s debt is due or not. No bond is required unless a sequestra­
tion is desired.
Curtesy and Dower. Both abolished since 1880.
Deeds. (See Conveyances.)
Depositions in civil cases, on written or verbal interrogatories;
ten days' notice to opposite party. If such party is absent and has
no attorney, filing interrogatories ten days sufficient. The officer
shall swear the witness to testify the truth, and shall impartially
examine him on the interrogatories. The testimony shall be fairly
written down by the officer or witness, or by a disinterested person in
the presence of, and shall be subscribed by the witness. Depositions
then certified, and transmitted by mail or other safe and convenient
manner to the court where the same are to be used. Officer’s cer­
tificate prima facie evidence of his character.
Descent and Distribution. Estates of inheritance, real and
personal descend. 1. To children and their descendants per stirpes.
2. To brothers and sisters and father and mother in equal parts and
their descendants by representation. 3. To the next of kin according
to the civil law. Except among brothers and sisters there is no
representation among collaterals. Advancements must be brought
Into hotchpot. No distinction between children of the whole blood

BANKING AND COMMERCIAL LAWS—MISSISSIPPI
and those of the half blood, except that children of the whole blood are
preferred to those of the half blood in equal degree. Where there is
no one to inherit property escheats. Illegitimates inherit from the
mother and from her other children and her kindred. Children of
illegitimates and their descendants inherit from brothers and sisters
of their father or mother and from grand parents. But children of
Illegitimates do not inherit from any ancestor or collateral kindred if
there he legitimate heirs of such ancestor or collateral kindred, in the
same degree. The mother of an illegitimate and her other children,
legitimate or otherwise, inherit from the illegitimate. Exempt prop­
erty of husband or wife descends to survivor and children as tenants
In common.
Dower and Curtesy have been abolished since 1880.
Evidence. In the main common law rules apply. Parties and
interested persons competent; except against decedent. Affidavit to
open account entitles to judgment, unless defendant denies under
oath. Warehouse receipts and bills of lading conclusive evidence in
favor of a bona fide holder that the property was received by the
issuer. (See also Accounts and Affidavits.)
Executions in circuit court issue within twenty days after the
adjournment of court unless otherwise ordered by the plaintiff, and
in justices courts after the lapse of ten days from judgment rendered,
unless recovering party makes affidavit that he is in danger, by delay,
of losing his debt or demand, in which case execution issues forthwith.
No redemption of property sold under execution or mortgage.
Exemptions. The following personal property is exempt from
seizure under execution or attachment, to-wit:
The tools of a mechanic necessary for carrying on his trade.
The agricultural implements of a farmer necessary for two male
laborers.
The implements of a laborer necessary in his usual employment.
The books of a student required for the completion of his educa­
tion.
The wearing apparel of every person.
The libraries of all persons, including pictures, drawings, and paint­
ings, not exceeding five hundred dollars in value; also the instruments
of surgeons and dentists, used in their profession, not exceeding two
hundred and fifty dollars in value.
The arms and accoutrements of each person of the militia of the
State.
All globes and maps used by the teachers of schools, academies, and
colleges.
The following property of each head of a family, to be selected by
the debtor, is exempt.
Two work-horses or mules, and one yoke of oxen.
Two head of cows and calves.
Ten head of hogs.
Twenty head of sheep and goats each.
All poultry.
All colts under three years old raised in this State by the debtor.
Two hundred and fifty bushels of corn.
Ten bushels of wheat or rice.
Five hundred pounds of pork, bacon, or other meat.
One hundred bushels of cotton seed.
One wagon, and one buggy or cart, and one set of harness for each.
Five hundred bundles of fodder and one thousand pounds of hay.
Forty gallons of sorghum or molasses or cane syrup.
One thousand stalks of sugar cane.
One molasses mill and equipments, not exceeding one hundred and
fifty dollars in value.
Two bridles and one saddle, and one side saddle.
One sewing machine.
Household and kitchen furniture not exceeding in value two hun­
dred dollars.
All family portraits.
One mower and rake for cutting and gathering hay or grain.
And the following property shall be exempt from garnishment or
other legal process, to-wit:
The wages of every laborer or person working for wages, being the
head of a family, to the amount of fifty dollars per month, but this
paragraph shall not apply to a debt for board and lodging or a judg­
ment founded on a debt for board and lodging.
The proceeds or insurance on property, real and personal, exempt
from execution or attachment, and the proceeds of the sale of such
property.
Payable to Executor. Life insurance policy not exceeding five
thousand dollars, payable to the executor, or administrator, shall
Inure to the heirs or legatees, freed from all liability for the debts of
the decedent, except premiums paid on the policy by anyone other
than the insured and debts due for expenses of last illness and for
burial: but if the life of the deceased be insured for the benefit of his
heirs or legatees at the time of his death otherwise; and they shall
collect the same, the sum collected shall be deducted from the five
thousand dollars, and the excess of the latter only shall be exempt.
Life insurance policy to amount not exceeding $10,000.00 goes to
parties named as beneficiaries free from liability for debts of insured.
Homestead in Country. Every citizen being a householder, and
having a family, shall be entitled to hold exempt the land and build­
ings owned and occupied as a residence, but the quantity shall not
exceed one hundred and sixty acres, nor the value thereof, inclusive
of improvements, save as hereinafter provided, the sum of three
thousand dollars.
Homestead in Cities. Every citizen being a householder, and hav­
ing a family residing in any city, town, or village, shall be entitled
to hold, the land and buildings owned and occupied as a residence by
such person, not to exceed in value, save as hereinafter provided,
three thousand dollars, and personal property, to be selected by
him, not to exceed in value two hundred ana fifty dollars, or the
articles specified as exempt to the head of a family.
Homestead exemption may be increased to $3,000 in value by
filing for record in chancery clerk’s office a declaration claiming as
exempt certain property.
No property is exempt as against purchase money or for labor per­
formed on it or material furnished therefor. Money loaned at rates
of interest not exceeding 6 per cent is exempt from taxation.
Foreign Corporations may do business and sue and be sued as
In case of domestic corporations. (See Corporations.) Foreign
corporations doing business in the State without recording their
charters are subject to fine; and all contracts are null and void.
Fraud and Fraudulent Conveyances. (See Attachment, Bills
of Lading, Limitations, Creditor’s Bill.)
Sales of merchandise otherwise than in usual course of business and
sales of entire stock of goods in gross presumed fraudulent and void as
to creditors, unless 5 days before sale, seller make complete inventory
and the purchaser made demand of seller for name, address and amount
of claim of each creditor, and the purchaser notified personally or by
mail each of creditors of proposed sale and of cost price of merchandise
and the price to be paid therefor. Purchaser violating this act held
to be trustee for seller’s creditors to extent of reasonable value of
goods and required to pay them to that amount, even if he has paid
seller in full.
In case of destruction of stock of merchandise by fire, on which there
Is insurance, holder of policies to notify creditors he owes for merchan­
dise of his loss and amount of insurance carried, within 5 days.
Garnishment on judgments or in attachment. Binds debts or
property of debtor in garnishee’s hands.
Grace. Abolished.


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2263

Holidavs are January 1, January 19 (Lee’s birthday), February 22,
April 26, June 3, July 4, first Monday in September, November 11
Armistice day), fourth Thursday in November, and December 25.
nstruments falling due on a Sunday or holiday are payable on the
next succeeding business day. Instruments falling due on Saturday
are to be presented for payment on the next succeeding business day
except that instruments payable on demand may at the option of the
holder be presented for payment before twelve o’clock noon on Satur­
day when that day is not an entire holiday.
Homestead owned and occupied by husband living with wife cannot
be sold or encumbered unless the wife joins in the conveyance. The
same is true as to husband if wife owns homestead.
(See Exemp­
tions.)
Husband and Wife. The disabilities of coverture are abolished,
as are dower and curtesy. Husband and wife may contract with
and sue each other, but contracts for compensation for services ren­
dered to each other are void. If husband rents wife's land, mules,
etc., and does business in his own name, it will be deemed the business
of the wife as to those without notice, unless the contract be recorded.
Transfers between are void as to third persons unless recorded. (See
also Married Women, Wills, anc* Homestead.)
Insolvency. No general insolvent laws, but insolvent estates of
decedents are divided among creditors pro rata.
In case of insolvency partnership property is applied first to partner­
ship debts, and e converso.
Interest. Legal rate 6 per cent per annum, and money loaned at
not exceeding that rate is exempt from any taxes, but parties may
contract in writing for 8 per cent; when more is stipulated or collected
all interest is forfeited.
When above 20 per cent interest and prin­
cipal forfeited and pavments forfeited.
Judgments enrolled become liens on defendant’s property within
the county. A junior judgment creditor may obtain priority as to
property levied on by him, if, after ten days’ notice, the senior judg­
ment creditors fail to issue executions. Lien of judgment continues
seven years.
Jurisdiction. (See Courts.)
Liens. Lien of an enrolled judgment, of mechanics and material
men, of landlord and laborer on agricultural products, innkeeper’s
and stablekeeper’s lien, and lien of saw mill laborer. The seller of
goods may enforce lien for the price of the same, provided the goods
are still in the hands of the purchaser or one having notice. The
procedure is by affidavit, filed at the commencement of the suit,
stating that the purchase money is unpaid. A writ of seizure issues,
and the goods are taken. No bond required of plaintiff unless third
person claims the property. Title to personal property may be reserved
by the seller as security for the price, and this is good even as against
a subsequent bona fide purchaser, without any writing or record,
except where acquired or used in the business of a trader.
Limitations. Open accounts, accounts stated, and verbal con­
tracts, express or implied, three years; all other contracts, six years
awards of arbitrators, six years; judgments and decrees rendered in
another state against resident of this, three years; rendered in this,
seven years, real actions, ten years. Actions to recover property
sold under order of chancery court must be brought within two years,
where possession is taken and purchase money paid in good faith.
When the legal title to property or right in action is in an executor,
guardian, or other trustee, beneficiary, though under disability, is
barred when trustee is barred. Action against administrator or
executor on claim against person deceased limited to four years from
date of qualification of such administrator or executor. Statute does
not apply to suits on notes or evidences of debt of banks or other
moneyed corporations circulating as money. An acknowledgment or
new promise must be in writing. Statute does not run during fraud­
ulent concealment, nor against infant or person non compos mentis,
nor against a convict in actions for assault, etc., until after release
nor against State, county, municipality, or any political subdivision
of State, nor in favor of persons who remove from the state.
Married Women retain their estate, common law disabilities of
coverture abrogated; have capacity to make contracts and do all
acts in reference to property. Dower and curtesy abolished. Hus­
band and wife must join in conveying or encumbering homestead.
(See also Husband and Wife and Descent.)
Mortgages and Trust Deeds do not take effect as to creditors or
purchasers in good faith and without notice until they are delivered
to the clerk for record; with power of sale are foreclosed by sale in
pais; without power of sale, by suit in chancery court, and after fore­
closure there is no redemption. (See Chattel Mortgages.)
Notaries. Have power to administer oaths, take acknowledgments
and to protest notes and bills. (See Conveyances.)
Notes and Bills. Uniform Negotiable Instruments Law adopted
and now operative. (See Holidays.)
Partnership. Few statutory provisions. Governed by general
taw. In case of insolvency, partnership property must go to pay
firm debts, and e converso.
Provision made for limited or special
partnerships.
Powers of Attorney. May be acknowledged or proved and
recorded as deeds. May be revoked in like manner. Conveyances
of land or other property under powers of attorney are valid.
Redemption. No redemption from sales under mortgage, execu­
tion, or other judicial sale. Two years allowed for redemption of
land sold for taxes, saving to minors and persons non compos mentis
a like period after removal of disability.
Replevin lies to recover personal property wrongfully withheld
from the owner. The property may be restored to defendant on bond.
If he declines to bond, plaintiff may do so. If neither does, a claimant
of the property may give the bond and receive possession. Damages
may be assessed for wrongful taking or detention.
Taxes. Personal property is assessed once a year; real estate
every two years, and taxes constitute a prior lien. Land delinquent
sold on first Monday of April. Redemption within two years, on
payment of all taxes, costs, 25 per cent damages, and 5 per cent on
amount paid. Infants and persons of unsound mind may redeem
within two years after removal of disability, on paying the value of
permanent improvements put on the land after two years from date
of sale. Money on deposit in banks and trust companies exempt
from taxation. Corporations taxed as individuals.
Trust Companies. Provision for such companies with general
Powers—to administer all trusts, make bonds and the like. (See
Banks.)
Warehouse Receipts. (See Bills of Lading.)
Wills executed by anyone twenty-one years old, of sound mind.
As to land, if not wholly written and subscribed by testator, must be
attested by two subscribing witnesses. A nuncupative will (of per­
sonalty) may be made during last sickness of testator at habitation,
or where testator has resided ten days next before death, or where
erson Is taken 6ick from home and dies before return, must be proved
y two witnesses. Nuncupative wills not to be established where value
bequeathed exceeds $100. Soldiers and sailors in actual service may
bequeath personalty free from statutory restrictions. No restriction
upon the power to dispose of property by will except that religious or
charitable trusts or bequests void. Provisions made for renouncing
will by surviving husband or wife in certain cases. Probated in com­
mon form may be contested within two years. One who kills another
cannot take under his will.

2264

BANKING AND COMMERCIAL LAWS—MISSOURI
SYNOPSIS OF

THE LAWS OF MISSOURI
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Edwards, Kramer & Edwards, New York
Life Bldg., Kansas City.
Acknowledgments. Acknowledgments of instruments affecting
real estate may be before one of the following courts or officers. 1.
Within this State, some court having a seal, or some judge, justice or
clerk thereof, a notary public, or some justice of the peace of the
county in which the real estate is situated. 2. Outside of this State
and within the United States, any notary public, any court having a
seal or the clerk of such court, or commissioner of deeds. 3. Without
the United States, any court having a seal, the mayor or chief officer
of any city or town having an official seal, any minister, consul or
officer of the United States, or notary public having a seal. The
official should certify that "before me personally appeared ....
and................. his wife, to me known to be the persons described in.
and who executed the foregoing instrument and acknowledged that
they executed the same as their free act and deed.” If grantor is single
and unmarried the notary certifies that grantor has so declared himself.
Persons engaged in military service without the U. S. may acknowledge
any instrument requiring it, before any officer above the rank of
lieutenant: in the naval service, before any officer above ensign. No
paper is entitled to be recorded unless it is acknowledged.
Actions. There is in this State but one form of civil action the
practice being under a code. A non-resident plaintiff must file the
written undertaking of some resident for costs, or make a cash deposit.
Administration of Estates. The probate court in each county
has jurisdiction of the settlement of the estates of deceased persons.
Claims presented to the court for allowance within six months after
the grant of letters are preferred over those presented later. Claims
not presented within one year from the granting of letters are barred.
Letters are granted: 1. To the husband or wife. 2. To those entitled
to distribution, or one or more of them. If after the expiration of
thirty days after death of deceased, such persons do not, on five
days’ notice, appear and qualify, letters may be granted to any other
person. Non-residents cannot be executors or administrators, nor
may non-resident executors or administrators maintain an action in
this State. Change in inheritance rates became effective August 15,
1921. In 1923 important changes were also made relative to adminis­
tration of the estate of decedent non-residents and the limitation
as to the time within which resident creditors may require adminis­
tration.
Allens. Aliens or alien corporations may not acquire, hold or own
real estate except such as may be acquired by inheritance or in the
ordinary course of justice in the collection of debts. Real estate
acquired by an alien creditor at foreclosure sale must be disposed of
within six years. This prohibition does not apply to cases where the
right to hold and dispose of lands is acquired by treaty.
Arbitration. Parties to a controversy may submit the same to
arbitrators, and their award be confirmed by a court and judgment
rendered thereon. Arbitrations, settlements or adjustments of fire
losses are to be had at the town, city or neighborhood where the
fire loss occurs unless the insurrer and the assured agree on some
other place.
Arrest. No person can be arrested under civil process. And there
is no imprisonment for debt except upon a criminal prosecution for
obtaining board and lodging by trickery, fraud or deceit.
Assignments. Voluntary assignments are either statutory or at
Common Law. If statutory, the assignee must file in the Circuit Court
where the property is located within 15-days after the assignment a
complete inventory of the debtor's assets and a list of his creditors.
Within 3-days after the filing of the deed of assignment the assignee
must give bond with approved security. Claims due the State of
Missouri and wage claims earned within 3-months preceding the date
of the assignment are preferred. All sales of real or personal property
conveyed by the deed of assignment must be sold under order of court.
Assignments at Common Law are still recognized. All assignments
must be for the benefit of all the creditors of the assignor. There is no
statutory provision for the release of the debtor after voluntary assign­
ment at Common Law. The release is ordinarily provided for in the
deed of assignment.
Attachments. The writ may issue on the following grounds:
1. That the defendant is not a resident of Missouri.
2. That the defendant is a corporation, whose chief office or place of
business is out of the state of Missouri.
3. That the defendant conceals himself so that the ordinary process
of law cannot be served upon him.
4. That the defendant has absconded and absented himself from
his usual place of abode in the State of Missouri, so that the ordinary
process of law cannot be served upon him.
5. That the defendant is about to move his property and effects out
of the State of Missouri, with the intent to defraud, hinder and delay
his creditors.
6. That the defendant is about to remove out of the State of Mis­
souri with the intent to change his domicile.
7. That the defendant has fraudulently conveyed and assigned his
property and effects so as to hinder and delay his creditors.
8. That the defendant has fraudulently concealed, removed or
disposed of his property and effects so as to hinder and delay his
creditors.
9. That the defendant is about fraudulently to convey and assign
his property and effects so as to hinder and delay his creditors.
10. That the defendant is about fraudulently to conceal, remove and
dispose of his property and effects so as to hinder and delay his creditors.
11. That this cause of action accrued out of the State of Missouri,
and the defendant has absconded and secretly removed his property
and effects into the State of Missouri.
12. That the damages for which this action is brought are from
injures arising from the commission of a Felony or Misdemeanor, or
for the Seduction of a Female, to-wit:
.
13. That the debtor herein has failed to pay the price or value of
the article or thing delivered which by contract he was bound to pay
upon delivery.
14. That the debt herein sued for was fraudulently contracted for
on the part of the debtor.
The plaintiff, his agent, or attorney must make affidavit to one or
more of these grounds and the plaintiff, except where the defendant
is a non-resident, must give bond for double the amount of the debt.
Attachment for Rent. Attachment will lie for rent that is due
and unpaid after demand therefor and will lie for rent whether due
or not if it is to become due within one year thereafter, when the
tenant intends to remove, is removing or within thirty days has re­
moved his property from the rented premises. Plaintiff or his agent
must give a bond in double the amount sued for to indemnify the de­
fendant or any garnishee or interpleader for all damages caused by
the attachment. The security or attachment bond must be by resident
householders of the county where suit is brought and must be approved
by the court or the Clerk. If defendant is not found and his property
be attached process by publication is obtained against him. Exempt
property, however, is not subject to attachment for rent except grow­
ing crops.


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Banks. The Legislature of 1927 enacted some important laws
relating to the capital stock, rights and powers of banks and trust
companies. Among other things, it is provided that the cash capital
of such bank shall amount to not less than $15,000 in towns or villages
of less than 1,000 inhabitants; $25,000 cash capital in towns or
villages of more than 1,000 and less then 5,000; $50,000 cash capital
in towns or cities of more than 5,000 and less than 10,000; $100,000
cash capital in cities of more than 10,000 and less than 50,000; $200,000cash capital in cities of more than 50,000 inhabitants. Directors must
be residents of this State. The receipt of deposits with knowledge
of the fact that the bank is in failing circumstancs, is punishable
by fine or imprisonment, and officers and agents consenting to the
creation of debts with such knowledge, are individually responsible
therefor. Not more than 25 per cent of its capital stock must be
loaned to any individual or corporation. Large powers of supervision
and control are vested in the bank commissioner. Private bankers
must have a paid-up capital of not less than $10,000, and in cities
of 150,000 population or more, not less than $100,000.
Every firm or individual as well as every corporation that engages
In the business of banking shall be subject to the strict supervision of
the State Banking Department. In 1921 important changes were made
relative to the banking laws of the State of Missouri under the general
head of Finance Department. Several amendments were again added
in 1923 and 1925. the most important of which is the section relative
to cash capital required of trust companies, as follows: Sec. 11793.
Cash Capital Required, (a) $50,000, if the place where its business
is to be transacted is an unincorporated or incorporated village or
city, the population of which does not exceed ten thousand.
(b) $100,000, if the place where its business is to be transacted is a
city, the population of which exceeds ten thousand but does not exceed
fifty thousand, (c) $200,000, if the place where its business is to be
transacted is a city, the population of which exceeds fifty thousand.
Provided, however, that any trust company now existing, the capital
of which is not equal to that limitation required of a trust company
in its location, may continue to do business under its present capital;
Provided, that until its capital and surplus fund shall equal twenty
per centum more than the minimum of capital required for a trust
company in its location, one-tenth of its net earnings at the close of
each dividend period as provided in Section 11825, shall be credited
to the surplus fund, and no such trust company shall declare, credit
or pay any dividend for any dividend period to its stockholders until
it shall have made such credit to its surplus fund for that period.
Trust companies in addition to the powers granted them to carry
on a trust company business certify and guarantee titles. This power
is now vested in title and guarantee corporations organized under
special act.
Private bankers may not engage in business without a paid up
capital of $100,000, graded according to population. May not make
loan on personal security in excess of ten per cent of paid up capital.
Twenty per cent of net profits must be set aside as surplus.
Banks may carry on a safe deposit business receiving personal
property as bailee, receipt for same, and be deemed warehousemen
with all their right and remedies.
Conditional Sales of personal property, unless recorded, are void
as to subsequent purchasers in good faith and creditors. Where such
conditional sales provide for payments in installments or the sale is
in the nature of a lease, or rental contract and title is retained by the
vendor, the same is void as to purchasers in good faith and creditors
unless evidenced by writing, executed, acknowledged and recorded
as in case of chattel mortgages. Before the vendor or lessor however
can retake such rented or leased personal property he must tender
or refund to the purchaser or lessee all moneys he has received on
account thereof after deducting reasonable compensation for the use
of such property which shall in no case exceed 25% of the amount
to be paid and also reasonable compensation for any damage done
to the property.
Conveyances. A person may convey title to lands although not
in possession, and although the same be in adverse possession. The
signature of the grantor in a deed need not be attested by a subscrib­
ing witness. A deed by a natural person need not be under his seal.
The corporate seal must be affixed to deeds of corporations. The
use of the word "heirs" in a deed is not necessary to create a fee
simple. The statute abolishes estates tail and converts an estate
tail into a life estate for the first taker, with remainder in fee simple
to the heirs of his body. The words “grant, bargain and sell” are
employed in the granting clause of a warranty deed; by statute those
words constitute express covenants that the grantor was seized of an
indefeasible estate in fee simple; that the real estate was free from all
incumbrances done or suffered by him or any person under whom he
claims; and for further assurances of the title to be made by him and
his heirs. Title, subsequently acquired by the grantor in a warranty
deed, will immediately pass to the grantee without further convey­
ance. An estate of freehold may be made to commence in future,
by deed. An interest in real estate, granted or devised to two or
more persons, other than executors or trustees, or husband and wife.
Is a tenancy in common unless expressly declared to be a joint tenancy.
A conveyance to husband and wife creates an estate by entireties as
at common law.
Corporations are formed under general law. In the case of manu­
facturing and most other business corporations, the capital must be
not less than $2,000. One-half must be subscribed and actually paid
up in money or property of the full value thereof, if part of the capital
stock is paid in property, there must be an itemized description, the
actual cash value of each item being shown. Part of the stock may
be preferred, paying not to exceed 8 per cent annual dividends.
Cumulative voting is permitted. Directors must not be less than
three nor more than twenty-one; three of them must be citizens and
residents of the State. A stockholder having paid for his stock in
full is subject to no further liability. The bonded indebtedness can­
not be increased nor the capital stock increased or diminished except
with the consent of persons holding three-fourths of the amount in
value of the stock. Two-thirds in value of the stock may apply to
the circuit court for a decree for the winding up of the business.
Corporations owing no debts may also be dissolved by unanimous
vote of all shareholders.
A corporation pays an annual franchise tax equal to one tenth of
one per cent of the par value of its outstanding capital stock and
surplus.
The General Assembly of 1913 enacted what is popularly known as a
“blue sky law,” placing under strict supervision of the Bank Com­
missioner, corporations and partnerships carrying on the business of
selling and negotiating stocks, bonds and securities (a few securities
excepted) and in 1923 the Missouri Securities Act was passed ampli­
fying the Blue Sky Law.
Ample powers of visitation and summary action are conferred upon
the Bank Commissioner, and penalties of fine and imprisonment
Imposed for violation of the law.
A foreign corporation must file in the office of the secretary of state
a copy of its charter with a statement of the proportion of its capital
stock invested in Missouri, and pay certain fees. It then receives a
license to do business in the State. It must also maintain an office
in the State. Its personal property in this State may not be incum­
bered to the injury of any creditor who is a citizen of this State, and
no mortgage by a foreign corporation except a railroad or telegraph
company, to secure a debt created in another State is effective as
against any citizen of this State until its debts, due to resident citizens
at the time of recording the mortgage, have been paid. A corporation
failing to comply with these provisions is subject to a fine and cannot
maintain a suit in a court of this State. A corporation of any country
outside of the United States before being authorized to transact busi­
ness in this State must have a public office in the State, where books
shall be kept, showing in detail its assets and liabilities, the names
and residences of its shareholders, officers, directors, ana managers.
None of these requirements apply to insurance companies.

BANKING AND COMMERCIAL LAWS—MISSOURI
All Shareholders are entitled to inspection of corporate books at
reasonable hours. The officers and directors of banking corporations
who assent to its receiving deposits, if said officers and directors have
knowledge of the insolvent condition of said bank, become personally
liable to depositors for all sums of money lost by reason of such deposit.
It is unlawful for any corporation to adopt any name which has already
been assumed by another corporation, nor can a corporation use the
name of a firm of persons for corporate purposes without adding
some word to designate the business which is to be carried on followed
by the word “company” or “corporation.” All corporations organized
under the laws of the State must have a general office in the state and
make annual reports to the Secretary of State.
Courts. Circuit Courts have original jurisdiction in all cases of law
and equity and hold two or more terms in each year in each county.
Jurisdiction of the settlement of estates of deceased persons is vested
in a Probate Court in each county. Justices of the Peace have juris­
diction exclusive of interest up to $250; in counties and cities having
over 50,000 and less than 200,000 population up to $300; in townships
having more than 200,000 and less than 400,000 population, up to $500;
in cities of over 300,000 population up to $500; in cities of more than
300,000 in some cases $000. The State is divided into three districts,
over each of which is a separate Court of Appeals, to which appeals
lie from the Circuit Courts within said district, where the amount
involved does not exceed $7,500 exclusive of costs. Where the amount
involved exceeds this sum, or the title to real estate or a constitutional
question is raised, the Supreme Court has exclusive appellate jurisdic­
tion.
By an Act approved April 30, 1925 it is provided that all municipal
townships now containing 200,000 inhabitants and less than 600,000
and in which Justices of the Peace are paid a salary every action
recognizable before Justices of the Peace against a defendant residing
in such townships, shall be brought before some such salaried Justice
of said township.
Days of Grace are abolished. (See Negotiable Instruments.)
Depositions. May be taken on notice of at least three days and
one day additional for every fifty miles of the first 300 and beyond that
one additional day for each 100 miles from the place of serving the
notice. If taken outside of the State a commission issues from the
court in which the suit is pending. They may be taken within
the State by any judge, justice of the peace, notary public, clerk of a
court, mayor or chief officer of a city or town having a seal of office;
and if out of the State by any officer appointed by authority of the laws
of this State to take depositions, a consul or commercial representative
of the United States having a seal, or mayor of any city or town having
a seal, or any judge, justice of the peace, or other judicial officer, or a
notary public. They may be taken upon written interrogatories, but
this is not customary. The names of the witnesses or of the officer
need not be mentioned in the notice. Objections to the competency
or relevancy of the testimony need not be noted, but can be first made
when it is offered at the trial. Objections to the form of questions
must be made or they are deemed to have been waived
Descent and Distribution of Property. The real and personal
estate of an intestate descends and is distributed as follows: Unmar­
ried Man or Woman: Real Estate, Equally divided among parents,
brothers and sisters and their descendants. Other property, equally
divided among parents, brothers and sisters and their descendants.
Married man with no child or children. Real estate, one-half to
wife; one-half equally divided among his parents, brothers and sisters
and their descendants. Other property, one-half to his wife; one-half
equally divided among his parents, brothers, sisters and their descend­
ants.
Married woman with no child or children. Real estate, one-half to
husband; one-half equally divided among her parents, brothers,
sisters and their descendants. Other property, one-half to husband;
one-half equally divided among her parents, brothers, sisters and their
descendants.
If there be no parents, brothers, sisters or their descendants living,
then all of the estate goes to the surviving spouse.
Married man or woman with child or children or their descendants.
Real estate, one-third to wife or husband for life; two-thirds equally
divided among children. Other property, equally divided among sur­
viving wife or husband and children.
Widow or widower with no children. Real estate, equally divided
among parents, brothers and sisters and their descendants. Other
property, equally divided among parents, brothers and sisters and their
descendants.
Widow or widower with child or children. Real estate, equally divi­
ded among children. Other property, equally divided among children.
Posthumous children inherit. When there are collaterals of the
half blood, they inherit half as much as those of the whole blood.
Lineal descents in equal degree take per capita; but where part of
them are dead and part living, the issue of those dead take per stirpes.
When a wife shall die without any child or other descendants in being,
capable of inheriting, her widower shall be entitled to one-half the
real and personal estate belonging to the wife at the time of her death,
absolutely, subject to the payment of the wife’s debts, and the widow
takes a like share of the estate of her husband on his death without
lineal descendants. An illegitimate child becomes legitimate if the
parents intermarry.
Dower. Dower and curtesy in real estate no longer exist as at
common law, but both are greatly modified or abolished by statute,
for instance, if either spouse die without issue the survivor is entitled
to one-half the real and personal estate of the decedent subject to
debts. When the husband shall die, leaving a child or children or
other descendants, the widow, if she has a child or children by such
husband living, may, in lieu of dower of the one-third part of all lands
whereof her husband died or shall die seized of an estate of inheritance,
to hold and enjoy during her natural life, elect to be endowed absolutely
in a share of such lands equal to the share of a child of such deceased
husband. The provisions of this section shall be subject to the pay­
ment of her husband’s debts. Action for recovery of dower in real
property must be commenced within ten years from the death of the
husband.
Executions. Unless motion for new trial is filed within four days
after judgment, execution issues immediately. Real estate must be
sold during a session of the court which rendered the judgment. Sales
of real estate must be advertised for twenty days; of personal property
for ten days. Execution sales are for cash. No execution is a lien
upon personal property until actual seizure thereof. It may issue at
any time within ten years from the rendition of the judgment. Deeds
to the purchaser are made at once by the sheriff, no confirmation of
sale being required.
Transcript of judgment of Justice of the Peace may be filed in the
office of the Clerk of the Circuit Court and execution issued thereon
as from the Court of record. Execution issued by Justice of the
Peace may be levied on personal property only and said execution
is a lien on the personal property of the debtor from the date of the
delivery of the execution to the constable except as to exempt
property or bona fide mortgaged property. The laws of Missouri
do not provide for a stay of execution without the consent of the
judgment creditor except of course by injunction.
Exemptions. The homestead of the head of a family is exempt
in the country to the extent of 160 acres not exceeding in value $1,500,
In cities of 40,000, eighteen square rods, not exceeding in value $3,000
in cities of 10,000, thirty square rods not exceeding in value $1,500. in
towns of less than 10,000, ten acres, not exceeding in value $1,500.
The exemption continues to the widow and to the children until their
majority. There are also exempt, when owned by the head of a family,
ten hogs, ten sheep, two cows, and certain farm implements; two work
animals, spinning wheel, loom, and small quantity of hemp, flax, and
wool; wearing apparel; $100 in household and kitchen furniture;
mechanic’s tools; provisions on hand for family use; Bibles and other
books used in the family. Lawyers, physicians, ministers, and
teachers have the right to select professional books in lieu of other


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2265

property allowed to them and doctors may select medicines. In lieu
of certain of the exempted articles any other property, not exceeding
$300 in value, may be selected. No exemptions are allowed against
taxes, or claims of blacksmiths, house servants, or common laborers
to the amount of $90 provided suit is brought within a legal limit.
Head of family is very liberally construed by the courts. An un­
married man keeping house with his sister has been held to be the
head of the family. There is also exempt from garnishment all wages
of the last thirty days except 10%. (Exemptions)
Frauds and Perjuries. No executor or administrator is bound by
his promise to pay any debt or damages out of his own estate, and no
person is liable upon any agreement to answer for the debt, default, or
miscarriage of another, or made in consideration of marriage, or for
the sale of lands or any interest in or lease thereof for a longer time
than one year, or on any agreement that is not to be performed within
one year unless the agreement sued on, or a memorandum thereof is in
writing signed by the party to be charged or his authorized agent; and
no contract for the sale of lands by an ageDt is valid unless the author­
ity of the agent is in writing. Every gift, conveyance, or assignment
of or charge upon real or personal property made with intent to hinder,
delay, or defraud creditors or defraud or deceive persons who shall pur­
chase the same lands, is void against creditors and purchasers, prior
and subsequent. The disposition of the larger part or the whole of a
stock of merchandise pertaining to vendor’s business otherwise than
in the ordinary course of trade, is fraudulent and void as against credi­
tors of the vendor, unless the vendee shall, at least seven days before
the sale furnish to the creditors a statement of the consideration for
the sale, the amount of the indebtedness of the vendor, and the names
of his creditors. All creations of trust iu lands must be in writing
except those resulting by implication of law. The right of action
given to any vendee on a violation of the Bulk Sales Law is limited to
90 days from the date of the delivery of such property to any such
vendee.
Garnishment. Garnishees may be summoned under writs of
attachment or execution. A garnishee may discharge himself by
delivering up the property or paying the debt to the officer under order
of court. Credits or property attached in the hands of a garnishee
may be claimed by a third person, who may assert his title by inter­
pleader. Not more than 10 per cent of the wages due for the last
thirty days’ service of the head of a family and resident of this State
can be garnished. Public corporations and their officers are exempt
from garnishment, as are also administrators and executors prior to
an order of distribution.
A garnishee must answer under oath and if this answer is denied
by plaintiff there is a trial of the issue. If the garnishee prevails he
is allowed reasonable compensation for expenses, including attorneys
fee but in any case the garnishee receives a small allowance for
appearing in the cause. If effects are found in the hands of the garn­
ishee, he must deliver them up or personal judgment will be entered
against him.
Holidays. January 1, February 22, May 30. July 4- the first
Monday of September, the 11th day of November, any general pri­
mary election day, any general state election day, any thanksgiving
day appointed by the President or Governor, ana Decevnoer 25 are
public holidays; ana when any of them fall on Sunday, the next day
is such holiday. Arbor Day, Bird Day, February 12, known as “Lin­
coln Day,” and October 12, known as “Columbus Day” are also
holidays but are not such as respects commercial paper. Negotiable
instruments or written contracts executed on Sunday or legal holidays
are not thereby made void but it has been held that there can be no
recovery for labor performed on Sunday. Presidential election day
is a legal holiday only in so far as it occurs on our general state
election day.
Husband and Wife. (See Married Women.)
Income Tax. A tax of one per centum is levied upon the annual
income of individuals and corporations for the year 1922 and subse­
quent years, with provisions for certain deductions and exemptions.
Inheritance Tax. A tax is levied upon the estates of deceased
persons varying from one to five per cent, depending oh the relation
of the beneficiary to the deceased, and exceeding those rates when the
value of the property received by a beneficiary exceeds $20,000, with
certain exemptions in favor of different classes of persons mentioned
in the law.
Interest. Legal rate 6 per cent, but by agreement in writing any
rate not exceeding 8 per cent. The legal rate is collectible on moneys
after they become due; on written contracts or accounts, after due
and demand made; on money recovered for the use of another and
retained without the owner’s knowledge. If usurious interest has been
paid that part in excess of the legal rate is deemed payment and credit­
ed on the debt, the holder of which recovers the debt only with legal
interest after deducting such payments, and costs are adjudged
against him. The receipt or exaction of usurious interest upon a debt
secured by lien upon personal property renders the lien invalid. Par­
ties may contract that interest maybe compounded, but not oftener
than once a year. The Legislature of 1927 enacted what is known as
the Small Loan Act, providing that loans not exceeding in amount
the sum of $300 an interest rate may be charged not in excess of 3 k per
cent per month and the interest shall not be payable in advance, or
compounded. It is not permissible to charge any brokerage com­
mission, or service charge in addition to the above rate of interest.
This act, of course, applies to persons or corporations licensed to do
business as what is commonly known as pawn brokers.
Judgments. Judgments and decrees rendered by a court of record
are liens on the real estate of the person against whom they are rend­
ered situate in the county for which the court is held. Transcript of
a judgment filed in the office of the clerk of the circuit court of any
other county becomes a lien upon real estate in such county. The
lien of a judgment continues for three years, and may be revived at an
time within ten years from its rendition. Execution may issue at
any time within ten years from the rendition of a judgment. When
two or more judgments are rendered at the same term as between
parties entitled to the judgments, the liens commence on the last day
of the term at which they are rendered. Judgments bear interest at
6 per cent, but if upon contracts bearing more than 6 per cent, the
judgment bears the rate of the contract. A lien may be obtained in
other counties than the one where the judgment was rendered by
filing a certified copy of the judgment with the Clerk of the Circuit
Court in said County. Judgments may also be assigned in writing
on the margin of the record or other legal transfer but if such assign­
ment is not entered on the margin of the record the judgment debtor
will be protected if payment is made to the original creditor.
Liens. Statutory provisions exist for mechanics' liens, liens of
keeping horses and other animals, liens of inn and boarding-house
keepers, liens of contractors, material-men. and laborers against
railroads. There are also statutory liens in favor of garages and
automobile repair men under certain conditions.
Limitations. Actions must be commenced within ten years:
1. Upon any writing for the payment of money or property. 2.
On any covenants of warranty or seizin contained in any deed. 3.
For recovery of lands. 4. For relief not otherwise provided for.
Within five years: I. Upon contracts, express or implied, except
judgments or decrees of court. 2. Upon a statutory liability other
than a penalty or forfeiture. 3. Trespass. 4. Replevin, and for
any other injury to the person or rights of another not arising on con­
tract ana not otherwise enumerated. 5. For relier on the ground of
fraud. Within three years. 1. Against public officers for acts of
official commission or omission. 2. For a penalty or forfeiture where
the action is given to a party or a narty and the State. Within two
years; Actions for libel, slander, assault, battery, false Imprisonment,
or criminal conversation. Statute does not begin to run against a
resident of this State who is absent at the time it accrues, until his
return; if he depart after it accrues, the period or his absence is not

2266

BANKING AND COMMERCIAL LAWS—MONTANA

counted. Acknowledgments or promises, to take a case from the
operation of the statute, must be in writing. Judgments are pre­
sumed to be paid after ten years. A cause or action barred b> the
laws of the State in which it originated is barred in this State. Partial
payment of principal or interest revives the debt.
Limited Partnership. May consist of one or more general and
one or more special partners. Special partners contributing a speci­
fied amount in cash to the capital are not personally liable for the debts
of the partnership and have no power to transact its business A
verified statement of the terms of the partnership must be filed with
the recorder of the county and published. There can be no limited
partnership for the business of insurance or banking.
Married Women. A married woman is deemed a femme sole so
far as to enable her to carry on or transact business on her own account,
to contract and be contracted with, to sue and be sued, to enforce or
have enforced against her property such judgments as may be rendered
for or against her. and may sue or be sued at law or in equity, with or
without her husband being joined as a party. Her real estate and
personal property cannot be taken by any process of law for the debts
of her husband. Neither the rents, issues, or products of her real
estate, nor the interest of her husband in her right in any real estate,
can be levied on for his debts, except for necessaries of the family
and for improvements made upon it.
Mortgages. Mortgages on real estate are executed like deeds.
Husband and wife must join to bar dower or homestead, except to
secure purchase money. The common form of real estate security
is a deed of trust with power of sale in the trustee upon default in
the payment of the debt. Sale is at public auction upon twenty
or more days’ public notice, as may be provided in the instrument.
The trustee executes deed to the purchaser. There is no redemption
from sale unless the holder of the debt is the purchaser, in which case
the debtor may redeem within one year if he gives written notice at
the sale or within the preceding ten days of his purpose, and within
twenty days after sale give security for payment of interest to accrue
within the year and all interest on prior incumbrances paid by the
creditor and taxes and assessments accruing during the year. Evi­
dences of debt secured by mortgage or deed of trust must be produced
to the recorder when satisfaction is entered. No foreign corporation
or individual may act as trustee in any deed of trust unless there be
named as co-trustee a Missouri corporation or individual citizen of
this state, and the resident trustee must be a party plaintiff in an
action to foreclose.
Chattel mortgages are invalid except as between the parties unless
possession of the property be taken and retained bv the mortgagee
or the mortgage be acknowledged and recorded in the county of the
mortgagor in the same manner as conveyances of real estate, or unless
the mortgage or a copy thereof be filed on the office of the recorder of
the county of the mortgagor, or. where he is a non-resident of the
State, then in the office of the recorder of the county in which the
property is situated. Every such mortgage ceases to be valid after
the expiration of five years from the filing of the same. In case of
the death of the mortgagor there shall be no foreclosure of real estate
for nine months from said date nor on personal property for four
months.
Negotiable Instruments. The General Assembly of this State
has codified the law of negotiable instruments by the passage of ‘‘An
act relating to the negotiable instruments, to revise and codify the
law concerning the same, and to establish a law uniform with that
of other states on the subject.” The act is the same as that adopted
by many other states in accordance with the recommendation of the
American Bar Association. It became effective in Missouri. June 16,
1905.
Probate Law. (See Administration of Estates.)
Protest. (See Negotiable Instruments.)
Replevin. Goods or chattels wrongfully taken or retained may be
replevied by the owner or party entitled to possession. Affidavit
must be filed and bond in double the value of the property given. In
certain cases defendant may retain possession of the property by giving
a bond in double its value. If plaintiff fail in his suit, defendant
recovers judgment against plaintiff and the sureties on the bond for
the value of the property and damages. Replevin action can be
brought without giving bond but the plaintiff acquires possession
of the property only on final judgments in his favor.
Taxes. State and county taxes are usually paid in November
or December. If not paid, they are regarded as delinquent from the
first day of the succeeding January. If not paid before the last day
of December a penalty of one per cent per month is added as interest
until paid. State and county taxes for each year are a lien upon
the real etate from the first day of June of the preceding year. Delin­
quent state and county taxes are collected by suit. By Sec. 13149,
Statutes of 1919, in counties containing cities of over 200,000 and less
than 700,000 county and state taxes are due June 1st and become
delinquent November 1st, with one per cent per month penalty
thereafter. Municipal taxes are payable according to the provisions
of the charters or general laws by which they may be governed. In
some cases the payment of delinquent city taxes may be enforced by
a sale of the property without suit; in others, suit must be brought
before sale can be made. There is no redemption from a sale under
a judgment for state and county taxes.
Redemption is usually
allowed in a sale for city taxes under the provisions of the particular
charter. The state imposes collateral inheritance tax and income
tax. Officers are not to divulge any information relative to any
income tax returns.
Wages. (See Garnishments; Exemptions.)
Warehouse Receipts. Missouri has adopted the uniform ware­
house receipts law. Warehouse receipts must contain the following
terms: location of warehouse, date of issue, serial number or receipts,
statement as to whether chattels will be delivered to bearer or to a
specific person or to his order, rate of storage charge, description of
goods, signature of warehouseman; if the ownership is on the part
of the warehouseman, such fact must be shown in receipt, statement
of amount of advance under receipt for which lien is claimed. Nonnegotiable receipt must be plainly marked “not Negotiable.”
Wills. Every male person twenty-one years of age may, by his last
will, devise all of his estate, real, personal, and mixed, and every male
over the age of eighteen years may bequeath his personal estate.
Women of twenty-one years of age and upward, married or unmarried,
may devise their real estate and bequeath their personal property. A
will must be in writing, signed by the testator or some person by his
direction in his presence, and must be attested by two or more com­
petent witnesses subscribing their names to the will in the presence of
the testator. If after making the will the testator shall marry and die
leaving issue of the marriage living at the time of his death, or born to
him after his death, the will shall be deemed revoked. The will of an
unmarried woman is revoked by her subsequent marriage. If a child
or children, or the descendants of such child of children, in case or
their death, are not named or provided for in the will, the testator is
deemed to have died intestate as to such child or children or their
descendants. Wills must be presented for probate to the probate
court of the county in which was the place of abode of the testator.
Wills may be contested within two years after the probate thereof by
petition to the circuit court of the county. Real estate in this State
may be devised by last will executed and proved according to the laws
of this State. Personal estate may be bequeathed according to the
laws of the state or country in which the will shall be made.


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Federal Reserve Bank of St. Louis

SYNOPSIS OF

THE LAWS OF MONTANA
RELATING TO
BANKING AND COMMERCIAL USAGES
Revised by Charles E. Pew. Attorney at Law, 5 and 7 Union
Bank Bldg., Helena.
Abstractors. Must give $5,000 bond to state and shall receive
certificate from State Treasurer authorizing him to do business.
Abstract furnished by authorized abstracter admitted Id court has
prima facie evidence of contents.
Acknowledgments of instruments may be taken in this State.
1. Before supreme court justice, district judge, justice of the peace,
clerk of any court of record, county clerk, notary public, or U. S. Com­
missioner. 2. Outside Montana in the United States. Before the
justice, judge or clerk of any court of record of the United States or
any state or territory; a commissioner appointed by the governor for
that purpose, a notary public, or any other officer authorized to take
acknowledgments. 3. Outside United States before minister, com­
missioner or charge d‘affairs, consul, vice-consul or consular agent of
the United States, a judge of court of record, commissioner appointed
by governor or notary public. In all cases acknowledgment must be
taken within jurisdiction of officer taking.
Must be in substantially following form: “State of.........................
county of .................. s. s. On this................day of .... 19. .before
(name of quality of officer) personally appeared.................... known
to me (or proved on oath of........... to be the person whose name is
subscribed to the within instrument, and acknowledged to me that
he (or they) executed the same.” Same for married women. In
case of corporation same to star, then “president or vice-president
(or secretary or assistant secretary) of the corporation that executed
the within instrument and acknowledgea to me that such corporation
executed the same,” and in case of attorney in fact, "whose name is
subscribed to the within instrument as attorney in fact of....................
and acknowledged to me that he subscribed the name of....................
thereto as principal, and his own name as attorney-in-fact." Outside
the county must be accompanied by certificate of county clerk.
Administration of Estate Is had in district courts. Notice to
creditors published four weeks. Claims not presented in four months
after first notice, if estate $10,000 or less, or ten months if over $10,000,
are barred.
Letters of administration granted to: 1. Surviving husband or
wife or competent appointee. 2. Child. 3. Father or mother. 4.
Brother. 5. Sister. 6. Grandchild. 7. Next of kin who inherits.
8. Public administrator. 9. Creditor. 10. Any person legally com­
petent. When several claim right and equally entitled, court appoints,
preferring males to females and whole blood to half blood.
Affidavits may be taken or oaths administered before any judicial
officer, clerk of any court, county clerk or notary public in this State;
in any other state before a commissioner appointed by the governor,
notary public, or judge or clerk of any court of record having a seal;
in a foreign country before an ambassador, minister, consul, viceconsul. or consular agent of the United States, or judge of a court of
record having a seal.
When taken before a judge in any other state or foreign country,
the existence of the court, signature and official character of the judge
must be certified by the clerk of such court, under its seal.
Aliens and Denizens have same right as citizens to acquire, use
and dispose of mining property and real estate in connection there­
with, except that aliens not eligible to citizenship may not acquire
or hold land (Japanese exclusion).
Arbitration. Any controversy except over title to real property
may be submitted to arbitration by a written agreement to that effect
filed in court and may be made an order of court. When made an
order of court is irrevocable; otherwise it is revocable at any time
before award. An agreement to arbitrate cannot be specifically
enforced.
Arrest. Defendant in a civil action may be arrested when about
to leave the State or conceal his property, with intent to defraud
creditors, and in certain other action where fraud, wilful injury, or
wilful violation of duty, or wrongful conversion of money or property
by a public officer or a fiduciary, or for fine or penalty.
Assignments. Voluntary assignments for benefit or creditors
allowed if without conditional preference, not coercive, impartial,
without reservation for fraudulent benefit of assignor, and does not
confer power upon assignee to delay execution of the trust, nor exempt
him from liability for negligence or misconduct. Is under partial
supervision of the district court.
Attachments. Writ of may be had at the time of issuing sum­
mons or any time thereafter in actions upon unsecured contracts
express or implied for direct payment of money, or if contracts origi­
nally secured, when security has become worthless without plain­
tiff’s fault. Is Issued upon affidavit on behalf of plaintiff, after filing
bond in double amount of claim, if under $1,000; if over, in amount
of claim: bond never to exceed $10,000. Any property, real or per­
sonal, or debt due from or money or personal property held by third
person, including judgments, may be attached. May be issued upon
debt not due if debtor leaving state or disposing of property to defraud
creditors.
Banks and Trust Comnanles. Note: Montana has an elabo­
rate banking code. The following synopsis gives an idea of the character
of this legislation, but the law itself should be referred to before acting in
any matter coming within its provisions.
"Bank” includes Commercial Banks. Savings Banks, Trust Com­
panies, and Investment Companies.
Three or more persons may organize under supervision of Super­
intendent of Banks, whose refusal to issue certificate shall be con­
clusive.
Commercial Bank shall have at least $20,000 capital fully paid
and deposited in Montana banks. Other banks shall have at least
$100,000 capital and not over $10,000,000, at least $100,000 sub­
scribed and fully paid and deposited in Montana banks.
Par value of shares $100 and no preferred stock.
Director must own at least $1,000 par value of unincumbered stock.
Stockholders individually liable to extent of par value of stock in
addition to amount invested in such stock. Executor, administrator,
guardian or trustee not personally liable but property of beneficiary
is liable.
Delivery of certificate to bona fide purchaser for value with written
transfer or written power to sell, assign and transfer the same passes
title as against subsequent purchaser or encumbrancer, but dividends
may be paid to record owner until transfer recorded in books of
corporation.
Ai least one-half of amount paid in capital of Savings Bank and
one-half of deposits must be invested in bonds and similar specified
securities, no loan greater than $10,000.
May hold property necessary in its business or acquired in good
faith through foreclosure of securities or collection of debts.
Trust and Investment Companies given broader power in invest­
ments than Commercial and Savings Banks.
May join National Reserve.
No person, firm or corporation, domestic or foreign, not having
certificate of superintendent of the banks authorizing to do business,
may advertise banking business

BANKING AND COMMERCIAL LAWS—MONTANA
Foreign corporation not engaged in banking business may lend
money in state, if it has complied with laws pertaining to foreign
corporations.
Directors may declare and pay dividends to stockholders out of
profits, but must carry at least one-fifth net profits to surplus until
the surplus amount to 2o per cent of paid up capital.
Bank may invest not more than one-tenth of capital and surplus
In safe deposit department.
Bank shall not invest capital, surplus, or deposits, in or loan money
upon its stock except to prevent loss.
Shall not sell securities to officers or employees. Shall not under­
write bond issue except United States, State and Municipal bonds of
Montana, in excess of 10 per cent of its assets.
May not acquire stock of any corporation unless necessary to pro­
tect previous debt.
Commercial bank shall not loan on real estate except on first lien
not exceeding 50 per cent market value of property and not more
than 35 per cent of assets shall be so loaned; but this does not limit
right to take any security for previous debt.
Deposits by two persons payable to either or survivor may be
paid to either even after death of the other.
Every bank, except reserve bank, shall keep reserve of 10 per cent
of deposit liabilities, and reserve bank shall keep 15 per cent. Solvent
bank with capital and surplus $100,000 may be desginated by Super­
intendent of Banks as Reserve Agent for Montana State Banks.
No bank shall become indebted in excess of paid up capital and
surplus without written authority from Superintendent of Banks.
Stats Bank may change to National Bank and vice versa.
Not liable for forged or raised check unless notified thereof in one
year after return of check to depositor
Liable only for actual damage for non-payment of check through
mistake without malice.
Office of Superintendent of Banks created, who performs duties
formerly imposed on State Auditor.
Contracts. Contracts of conditional sale retaining title in vendor
must be filed with county clerk or are void as to bona fide purchasers,
mortgages or attaching creditors prior to filing. In case of default
vendor may recover property in claim and delivery proceedings or
foreclose as in case of chattel mortgage.
Conveyances. Title to property of any kind (except a mere pos­
sibility not coupled with an interest), including a right of re-entry for
breach of condition subsequent, and property in the adverse possession
of another, may be transferred. Deed to several persons, except to
executors and trustees, creates tenancy in common, unless expressly
declared a joint tenancy in the deed. The fee simple title passes by
a grant, unless expressly limited to a less title In the deed. Cove­
nants that the grantor has made no previous deed to any other per­
son. and that the premises are free from encumbrance by the grantor
or any one claiming under him are implied from use of word “grant.”
A married woman joining with her husband in any instruments
affecting real property is bound thereby the same as though single
if duly acknowledged by her. Instruments affecting real property
may, if acknowledged, be recorded, and such record imparts notice
to the world. (See Acknowledgments.)
Corporations are found under the general statute, except bank­
ing, insurance and railroad corporations, and corporations not for
profit, which are governed by special laws. Stockholders have one
vote for each share, may vote in person or by proxy, and may cumu­
late votes in director elections.
Articles of incorporations filed in
county where principal office located, and copy filed with secretary of
State, may hold only necessary real estate; from three to thirteen
directors, wno may be empowered to make by-laws; may classify
directors; control business; stock issued for money or property; stock
liability limited to unpaid portion, directors assenting to creation of
debts beyond subscribed capital stock or making dividends out of
capital stock are jointly and severally liable therefor; stockholder may
examine books; written transfer or power of attorney to sell, and
delivery of certificate passes title, between parties and against credi­
tors; may be attached on books of corporation. Every domestic
corporation having a capital stock must file report in county clerk’s
office, within twenty days after December 31st of each year, showing
amount of capital stock, amount paid in cash, and amount paid in
property, amount of existing debts, and names and addresses of
directors, president, vice-president, general manager and secretary;
directors neglecting to file are jointly and severally liable for debts
existing during failure to file, director may exonerate himself by filing
within ten days after default affidavit showing that during the twenty
days he asked president or sufficient directors to file, and that default
is not due to his neglect. Subject to State tax of one per cent on net
income over $2,500.
Foreign corporations, except insurance companies and corporations
otherwise provided for, may do business after filing with secretary
of state and in county where intend to do business, copy of charter
and verified statement of president and secretary, showing name,
capital stock, amount paid in money or property, assets and of what
consist, and their actual cash value, and amount of liabilities; also a
consent to be sued and appointment of agent for service of process
and acceptance ot same. Secretary of State now collects fees upon
proportion of capital employed in Montana. If capital increased or
diminished must file certificate thereof with secretary of state and
county clerk and refusal to do so forfeits right to do business in state.
Must within two months after April 1st, file report like verified state­
ment just mentioned, in county clerk’s office, and copy with secretary
of state. Can have no greater rights or privileges than domestic
corporations.
Foreign Corporations doing business in this State are made sub­
ject to the jurisdiction of the courts of this State the same as domestic
corporations and their stock is made attachable in this State. May
be served, if no officer, agent or other representative can be found
in Montana, by leaving process with Secretary of State.
Foreign incorporations subject to State tax of one per cent on net
Income over $2,500 on business done in Montana.
Courts. District courts have original jurisdiction in law and
equity where over $50 involved: have probate and criminal juris­
diction. City police courts of petty criminal jurisdiction. Justices
of peace limited to $300, petty criminal cases; cannot try title to land,
nor questions of constitutionality. Appeals lie from justice to dis­
trict and from district to supreme court. Supreme court appellate
court of last resort, except has original jurisdiction in applications for
habeas corpus and similar writs.
Days of Grace. None.
Depositions of resident may be taken when witness is a party in
interest, or resides out of the county, or is about to leave and will
probably continue absent, or is too infirm to attend; or the testimony
is to be used on a motion, or when witness is only one who can estab­
lish a material fact and his presence cannot be procured at the trial.
Examinations may be upon oral questions or by agreement upon
written interrogatories. In case of non-resident within United States,
judge may issue commission upon five days’ notice, if parties do not
agree upon person, to any judge, or justice or commissioner. If out
of United States, may be directed to a minister, ambassador, consul,
vice-consul or consular agent of the United States in such country,
or to such person as may be agreed upon. Examination of non­
residents unless otherwise agreed, must be by written interrogatories.
Descent. Intestates’ real and personal property, subject to pay­
ment of debts, descends as follows: If widow or surviving husband
and one child, half to each; if widow or surviving husband, and more
than one child or one child and lawful issue of one or more deceased
child, one-third to husband or wife and two-thirds to such children
and issue per stirpes; if no child living, two-thirds to lineal descend­
ants, equally if of same degree, if not, per stirpes; if issue and no hus­
band or wife, whose estate to issue if such issue consists of more than
one child living and lawful issue of deceased child or children, then


110
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Federal Reserve Bank of St. Louis

2267

in equal shares to living children and issue of deceased children per
stirpes; if no issue, one-half to husband or wife ana one-hah to father
and mother in equal shares, or if either be dead, the whole half goes
to the survivor. If no father or mother one-half in equal shares to
brothers and sisters or their children per stirpes. If no issue nor
husband or wife, entire estate to father and mother equally, or to
survivor. If no issue father, mother, husband, nor wife, in equal
shares to brothers and sisters and to children of any deceased brother
or sister per stirpes. If surviving husband or wife, and neither issue
father, mother, brother, nor sister, entire estate to husband or wife;
if none of above mentioned, to next of kin in equal degree, claiming
through nearest ancestor; if leaves more than one child, or one and
the issue of one or more deceased children, and any such child die
unmarried under age, his share goes to children of same parent or
their issue per stirpes. If no husband, wife or kindred, the property
escheats to State. Illegitimate child is heir of person who acknowl­
edges himself, in writing before a competent witness, to be its father
and is an heir of his mother; if parents intermarry, is legitimatized.
Dower. Curtesy abolished. Wife endowed of third of lands
owned by husband during marriage. Equitable estates and contracts
Included. No dower in lands mortgaged for purchase price as against
mortgagee, not in lands conveyed to him by way of mortgage unless
be acquire absolute title during lifetime, Devise or bequest bars
widow’s dower unless otherwise expressed in will, but she may elect
between devise or bequest and dower, within one year in writing.
If husband die leaving no children nor descendants of children, widow
may have, absolutely, one-half of all his estate after payment of
debts, if she elect within two months after payment of debts. A
woman may be barred of dower by jointure with her assent before
marriage, consisting of freehold in lands of life, at least, beginning at
death of husband. Dower is not affected by wife’s deed.
Execution unless stayed by order of court, may issue at once upon
rendition of judgment: becomes lien on personalty, upon seizure by
officer holding writ. All property sold to highest bidder. Defendant
or creditor may redeem from sale of real estate within year, or sixty
days after previous redemption.
Exemptions. To head of family, homestead to value of $2,500,
and descends as such to surviving wife or husband and children.
Head of family allowed wearing apparel, chairs, tables, books, at
$200, all necessary household goods and certain domestic animals and
provisions for three months; forty-five days earnings exempt where
necessary for support of family, except one-half such earnings may
be taken for debts for necessaries. Generally, tools and implements
of trade, libraries, etc., of professional men who are heads of families,
are exempt.
Fraud. It is criminal fraud to attempt to obtain insurance money
wrongfully; or fraudulently destroy insured property; to issue, sell,
transfer or pledge any false, fraudulent or simulated stock certificate
or evidence of shares of any corporation, or any officer to sign any
such certificate; unauthorized use of another's name in selling stock;
for a director, officer, or agent of corporation to publish false report
of its affairs; to falsely represent one’s self as competent to sell or
mortgage real estate when signature of husband or wife is necessary;
to get money or property by false representations as to wealth or
mercantile character; to sell any land after having once sold or
agreed in writing to sell the same to another; to convey any real or
ersonal property with intent to defraud and deceive others or to
inder or delay creditors; to wilfully certify any false acknowledgment
with intent to defraud; to issue any false warehouse receipts or to
wrongfully remove or dispose of any property for which a warehouse
receipt has been issued, for the mortgagor to dispose in any manner
of any property covered by chattel mortgage. Any negotiable instru­
ment procured by fraud or circumvention to be executed is void even
in hands of innocent holder.
Frauds, Statute of. Agreement of executor or administrator to
answer for obligation of decedent out of his own estate; agreement
not to be performed in one year; promise to answer for obligation of
another, unless it is made an original obligation of promissory; an
agreement upon consideration of marriage, except mutual promise to
marry; for sale of personalty at a price of over $200, unless part of
price paid or part of goods accepted, except at auction sale when
auctioneer enter sale in sale book; lease for over one year; for sale of
realty, or authorizing broker or agent to sell land for compensation;
is void unless in writing signed by party to be charged or his agent
duly authorized (in writing in case of agreements affecting real estate).
Every transfer of property or charge thereon made, every obligation
incurred, every judicial proceeding taken, and every act performed,
with intent to delay or defraud any creditor, or other person, of his
demands, is void against all creditors of the debtor and their represen­
tatives or successors in interest, and against any person upon whom
the estate of the debtor devolves in trust for the benefit of others than
debtor. All declarations of trust in lands shall be in writing, except
resulting trusts or trusts created by implication or operation of law.
Holidays. Whenever an act of a secular nature is appointed by
law or contract to be performed upon a particular day, which day
falls upon a holiday, such act may be performed upon the next busi­
ness day. Such holidays are: Every Sunday, the first day oi Jan­
uary, the 12th day oi February, 22nd day of February, 30th day of
May, 4th day of July, first Monday in September, 12th day of October,
Presidential Election Day, the 11th day of November (Armistice
Day), Thanksgiving Day, the 25th day of December, and every day
of a general State election. When Christmas or a similar holiday
falls on Sunday the following Monday is the legal holiday.
Husband and wife. Husband must support wife if able; if not,
she must assist; husband has no curtesy; wife has dower; neither
can be excluded from others dwelling; may contract with each other,
or any other persons, the same as though unmarried; cannot alter
legal relation by contract, except may agree to immediate separation,
mutual consent being sufficient consideration; may hold property
jointly or in common; wife may sue and defend alone; all property of
wife is her separate property, and she can convey, or execute power of
attorney thereon without husband’s consent. Her deed must be
acknowledged. Filing inventory of her personal property exempts
same from claims against husband, except for necessaries for herself
and her children. Wife must support husband out of her property
if he is infirm. Wife may dispose of her property by will, except that
such will must not, without his written consent, deprive husband of
over two-thirds of her real estate or two-thirds of her personal property;
wife may make contract, etc., the same as though single. If husband
neglect to support his wife, bills for necessaries sold her can be collected
from him, but not when separated by consent, unless support stipu­
lated in such agreement.
Interest. Eight per cent on judgments and damages. In other
cases 8 per cent in absence of agreement. May contract for not more
than 10 per cent per annum.
Judgment of courts of record (including federal courts of Montana
if transcript of such judgment if fil