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The Following States Have Put in Operation THE NEGOTIABLE INSTRUMENTS LAW State In Effect Alabama.................................... 1. 1908 Alaska....................................... 28. 1913 Arizona...................................... 1. 1901 Arkansas .................................. 21. 1913 California.................................. ................... July 31, 1917 Colorado................................... ................... July 19. 1897 Connecticut.............................. 5. 1897 Delaware................................... 1. 1912 Dist. of Columbia.................. 12. 1899 Florida....................................... 3. 1897 Georgia..................................... 18. 1924 Hawaii....................................... 20. 1907 Idaho......................................... 10. 1903 Illinois....................................... ................... July 1. 1907 Indiana...................................... 30, 1913 Iowa........................................... ................... July 4. 1902 Kansas....................................... 8. 1905 Kentucky.................................. 13, 1904 Louisiana.................................. 1. 1904 Maine......................................... ................... July 7. 1917 Maryland.................................. 1, 1898 Massachusetts......................... 1. 1899 Michigan................................... 16. 1905 Minnesota................................ ................... July 1, 1913 Mississippi................................ ................... July 7, 1916 Missouri.................................... 16. 1905 State In Effect 7. 1903 Montana................................. Nebraska................................ 1. 1905 Nevada.................................... 1. 1907 New Hampshire................... 1. 1910 New Jersey............................ ......................July 4. 1902 New Mexico.......................... 21. 1907 New York.............................. 1. 1897 North Carolina..................... 8. 1899 North Dakota........................ ......................July 1. 1899 Ohio......................................... 1. 1903 Oklahoma............................... 10. 1909 Oregon..................................... 19. 1899 2. 1901 Pennsylvania......................... Philippines............................. 31. 1911 Rhode Island......................... ..................... July I. 1899 25, 1914 South Carolina...................... South Dakota........................ ..................... July 1. 1913 Tennessee............................... 16. 1899 18, 1919 Texas....................................... 1, 1899 Utah........................................ ..................... July Vermont................................... 1. 1913 Virginia......................................................... July 1. 1898 Washington............................. 7. 1899 W. Virginia............................. 1. 1908 Wisconsin............................... 15. 1899 Wyoming................................ ..................... Feb. 15. 1905 The Maturity Section of this Law is as follows: Every negotiable instrument is payable at the time fixed therein without grace. When the day of matu rity falls upon Sunday or a holiday, the instrument is payable on the next succeeding business day. Instruments falling due on Saturday or becoming payable are to be presented for payment on the next succeeding business day. except that instruments payable on demand may, at the option of the holder, be presented for payment before 12 o’clock noon on Saturday when that entire day is not a holiday. Exceptions to the above Section are as follows: MASSACHUSETTS. NEW HAMPSHIRE, NORTH CAROLINA and RHODE ISLAND allow grace on Sight Drafts. ARIZONA. KENTUCKY. MISSISSIPPI. NEBRASKA. NORTH CAROLINA. WASHINGTON and WISCONSIN paper maturing Saturday is payable the same dav. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1820 Dates of Regular Meetings of Legislatures Alabama, Second Tuesday in January, 1927, and every four years. Alaska, A Territory____ March___________________Every odd year. Arizona_______________ January________________ Every odd year. Arkansas---------------------- January________________ Every odd year. California---------------------January________________ Every odd year. Colorado---------------------- January________________ Every odd year. Connecticut___________ January________________ Every odd year. Delaware---------------------- January________________ Every odd year. District of Columbia____ Congress of the U. S. First Monday in December each year. .April__ „ .... .June _____ .February_ _ _. — Every odd year. .January_ .Every odd year. .January _ _ _ _ Every odd year. .January _ _ . .Every odd year. .January _ __ . Every odd year. .January, _. —Every odd year. .January. ______ _ _ .. -Every even year. _May_ ___ _ .January _ ------- Every odd year. Everv odd year. January .January_____ -------- -Every year. .January _ __ .January _ ______ _ _ Every odd year. .January _ ___ _ _ Every even year. .January _ _ _ Every odd year. .January _ __ _ -Every odd year. .January __ . .January __ . _ Every odd year. .January____ . -_ Every odd year. .January _ ______ _ Every year. January _ -------- Every odd year. January _ — -Every year. .January _ _____ Every odd year. January _ __ -.Every odd year. January __ _ Every odd year January__ ___ --Every odd year. January ----- --- Every odd year. January____ __ .. - _ Every odd year. July____________ _ __ -Every year. January _ _ _ — _ -Every year. January —Every year. January - Every odd year. January___ .. -Every odd year. January__ __ .._ _ _ Every odd year. January Every odd year. January _ _------ —Every odd year. January ____ __ -Every even year. January _ _ . — Every odd year. January________ ------ --- Every odd year. Januarv Every odd year January . _ _Every odd year. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1821 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis THE BANKS AND THE \ GOVERNMENT N the first part of this Directory you will find all State bank officers and examiners, all National Bank examiners, complete person nel of the Federal Reserve Board and of the Federal Reserve banks, dates of comptroller’s calls for the past forty years. Make full use of this personal and statistical information. I 1822 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 all the creditors equally, but this section shall not apply to mort gages, pledges, or pawns given to secure a debt contracted contem poraneously with the execution of the mortgage. 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 executed, be flled 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 his 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: I. 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 following cases, viz.: 1. Where defendant is a non-resident. 2. When the defendant has absconded. 3. When defendant has secreted himself. 4. When defendant is about to remove from the State. 5. When defendant is about to remove his property from State. 6. When defendant is about to or has fraudulently disposed of his property or fraudulently withholds same. One non-resident may sue out an attachment against another non-resident by making oath that the defendant has not sufficient property within the State of his residence wherefrom to satisfy the debt. Attachments may be sued out in aid of a pending suit when any of the above grounds exist by making affidavit and executing bond. Garnishment process will issue in aid of attachment in all such cases. Garnishment may be dissolved by giving bond. In all cases of attachments sued out by a resident solely upon the ground that the defendant is a non-resident, the attachment may issue with out giving bond, but if defendant appears and pleads, bond must be given or the attachment dismissed. Banks. 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. 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. ReceiDt 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 I............................................................................................ a (style of officer), hereby certify, that......................................................... whose name is signed to the foregoing conveyance and who is known to me, acknowledged before me on this day, that, being informed of the contents of the conveyance, he executed the same voluntarily on the day the same bears date. Given under my hand and seal, this.....................day of .....................A. D SYNOPSIS OF THE LAWS OF ALABAMA RELATING TO BANKING AND COMMERCIAL USAGES. Revised by Ritter, Wtnn & Carmichael. Attorneys at Law, 610 First National Bank Bldg., Birmingham. (See Card in Attorneys List.) Acknowledgments or proof of real estate instruments may be taken before one of the following officers: 1st. Within this State, Judges of the supreme and circuit courts and the clerks of such courts, chancellors, registers in chancery, judges of the courts of probate. Justices of the peace, and notaries public. The official should certify that the person signing the conveyance is known to him and acknowl edges that “being informed of the contents of the conveyance he executed the same voluntarily on the day the same bears date.” 2d. Outside of State—Judges and clerks of any federal court, judges and clerks of any court of record in any state, notaries public, or com missioners appointed by the governor of this State: beyond the limits of the United States, by the judges of any court of record, mayor or chief magistrate of any city, town or borough, or county, notaries public, or by any diplomatic, consular, or commercial agent of the United States. Foreign officers must attach official seal which fact must appear in certificate. For forms of deeds see “Conveyances." Actions. All ordinary suits at law are commenced by suing out ft 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 flled 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 nr 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 mp.y 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. Allens. “Foreigners who are. or may hereafter become, bona fide residents of this State, shall enjoy the same rights in respect to the possession, enjoyment, and inheritance of property as native-born citizens.”—Sec. 34, Const. Alterations. When a negotiable instrument is materially altered without the assent of 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 original tenor. Material alterations consist of any changes in date; sum payable interest on principal: time or place of payment: number and relation of parties; medium or currency In which payment is to be made. Arbitration. Courts are compelled by statute to make an order submitting cases for arbitration when moved for by the parties, and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I 1823 (Seall Notary Public 1824 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, I hereto set my hand and official seal this ......................... day of.......................... 19.... (Official Character.) Corporation to make following acknowledgment: .................................................... that...................................................................... whose name as.........................................of the said corporation, is signed to the foregoing conveyance, and who is known to me, acknowledged before me on this day that, being informed of the contents of the conveyance, he, as such officer, and with full authority, executed the came 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 must also file certified copy of charter. If such corporation is engaged in any business of insuance, 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 business 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 be 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 State. The personal estate is distributed the same as the real estate, except that if there are no children the widow is entitled to all of the personal estate. If but one child she takes onehalf. If not more than four children to a child's part and if more than four to one-fifth. Posthumous children take as others. Illegiti mate children inherit from their mother. The husband upon the death of the wife is entitled to half of her personal estate absolutely, and to the use of all of her real estate for life, unless he has been divested of all control over her estate by a degree of the chancery court. Damages recovered by personal representative for death of deceased are distributed according to statute of distribution and are exempt from payment of debts. Discovery. Either party to a suit at law or in equity may examine his adversary by filing written interrogatories and making affidavit that answers will be material evidence for him. Dower. Unless the wife has relinquished her right of dower in the manner provided by statute she is, upon the death of the husband, entitled to dower in all lands of which the husband was seized in fee during the marriage, or of which another was seized to his use or to which he had a perfect equity having paid all the purchase money therefor. The dower interest is one-half when the husbana leaves no lineal descendants, and one-third when the estate is insolvent or the husband leaves children or their descendants. If the wife has at the death of the 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 and $2,000 In value. Personal property to the amount of $1,000. Exemptions of personal roperty may be waived by instrument in writing except as to certain ousehold 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 the 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 ber 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 am 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 a suit, except a partial payment made upon the contract by the party sought to be charged before the bar is complete, or an unconditional promise in writing, signed by the party to be charged thereby. Married Women. (See Husband and Wife.) 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 without notice, unless recorded. Mortgages operate as notice from day of delivery to probate judge for record. There is no fixed time within which they shall be recorded. Homestead realty cannot be mort gaged or otherwise aliened without the voluntary signature and assent of wife, evidenced by acknowledgment, upon private examination separate and apart from the husband, and certified. All mortgages must be in writing, signed by the mortgagor. Payment of mortgage debt made before or after maturity of debt, revests in the mortgagor, or his assigns, the title to the real or personal property mortgaged, if made in the lifetime of the mortgagor; if made after his death, such payment revests title to personal property in the personal representa tive, and title to realty in the heirs, devises, or legatees of the mortga gor. Chattel mortgages must be in writing. When the mortgagor is sued by the mortgagee for possession of the mortgaged property, he may defend by showing payment of the debt, or part payment and a tender of the balance, or may pay it after judgment. Negotiable Instruments. 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 Kills. 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 Rulk. Sales of all or substantially ail 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 Oi 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 oh 60% of the valuation of the property. Counties may vote additional levies for specific purposes and may secure the same by bonds. The purchaser of lands sold for taxes receives from the tax collector a certificate of purchase showing a description of the property, the date and amount of assess ment, the taxes, costs, and fees, etc., and after the expiration of two years from the date of sale, the purchaser may get a deed from the Judge of Probate. The delinquent tax payer, has two years from date of sale in which to redeem. After purchaser goes into possession under a deed and keeps possession for three years recitals in the deed are held to be true and cannot be disproved. On redemption, the person redeeming pays the amount of taxes for which the land sold, costs of sale, with interest at 15% per annum and all taxes paid sub sequent to the sale by the purchaser with interest thereon at 8% per annum. Whenever land is sold for state or county taxes, and from any cause such sale is invalid to pass title to purchaser, sale operates as transfer to purchaser of lien of state or county, on the property for payment of taxes for which sold. All cotton factories or cotton mills which shall be constructed in this State within five years shall be exempt from taxation for a period of ten years, provided such mills represent an investment of $50,000. Wills. All wills of real or personal property must be in writing signed by the testator and declared his last will and testament in the presence of two witnesses who must sign as witnesses in the presence of testator. Unwritten will of personal property valid only when the property does not exceed $500 in value, and must be made dur ing last sickness by testator at his home. Persons present must be called on to witness that 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. 114 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1825 SYNOPSIS OF THE LAWS OF ALASKA RELATING TO BANKING AND COMMERCIAL USAGES Revised by It. E. Robertson, 200 Seward Bldg., Juneau. Alaska (see card in Attorneys List) Acknowledgments. (See Deeds.) Actions. The distinction between actions at law and suits in equity and all forms of pleading heretofore existing in actions at law and suits in equity are abolished, and there is but one form of action, denominated a civil action, for the enforcement or protection of pri vate rights and the redress or prevention of private wrongs. Every action must be prosecuted in the name of the real party in interest, except that an administrator or executor, a trustee or 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 property unjustly detained, when the property or any part thereof has 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, 1, which is not secured by mortgage. Hen, 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 may form a stock corporation for any lawful purpose, whose chief business shall be in the territory, except for purposes of banking, insurance, brokerage, or loan, trust and guaranty associations. At least one director must be a resident of Alaska. 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 w'herein 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. 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 1826 BANKING AND COMMERCIAL LAWS—ALASKA 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 true date of making the same under his hand. Depositions. The testimony of a witness, in the district, may be taken by deposition, in an action, at any time after the service of the summons or the appearance of the defendant, and in a special proceeding after a question of fact has arisen, when, 1, the witness is a party to the action or proceeding, by the opposite party; 2, the witness’s residence is more than one hundred miles from the place of trial; 3, the witness is about to go more than one hundred miles beyond the place of trial; 4, the witness is too infirm to attend the trial; or, 5, the testimony Is required upon a motion, or in any other case where the oral examination of the witness Is not required. The testimony of a witness, out of the district, may be taken by deposition, by commission issued, upon eight days' notice to the 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 descends in equal share to children and to the issue of any deceased by right of representation; and if there be no child of intestate living at the time of his or her death, to all his or her other lineal descendants; and if all such descendants are in the same degree of kindred to the intestate, they take equally; otherwise, by representation. 2. If intestate leave no lineal descendants, to his wife; or if intestate be a married woman, to her husband; and if Intestate leave no wife nor husband, to the parents equally or the survivor. 3. If intestate leave no lineal descendants, neither husband nor wife, nor parents, such real property descends in equal shares to his brothers and sisters, and to the issue of any deceased brother or sister by right of repre sentation. 4. If intestate leave no lineal descendants, nor father, brother, nor sister, living at time of his or her death then real property descends to mother, to exclusion of issue of any deceased brothers or sisters. 5. If intestate leave no lineal descendants, neither hus band nor wife, nor father, mother, brother, nor sister, such real property descends to his next of kin in equal degree, excepting that when there are two or more collateral kindred in equal degree but claiming through different ancestors, those who claim through the nearest ancestor are preferred. 6. If intestate leave one or more children, and the issue of one or more deceased children, and any of such surviving children due under age without having been mar ried, all such real property that came to such deceased child by inheritance from such intestate descends in equal shares to the other children of such intestate and to the issue of any other children who have died, by right of representation. But if all the other children of intestate be dead, and any of them have left issue, such real prop erty so Inherited by such deceased child descends to all the issue of such other children of the intestate in equal shares, if they are in the same degree of kindred to such deceased child; otherwise, they take by right of representation. 7. If intestate leave no lineal descendants or kindred, such real property escheats to the territory of Alaska. Personal property same as real property except (1) apparel and ornaments to widow (2) payment of debts (3) same as real prop erty except (a) if husband and issue, half to husband; If no issue, all to husband; (b) if widow and issue, half to widow; if no issue, all to widow; (5) if no husband, widow or kindred, all escheats to territory. 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 for his life as tenant thereof by the curtesy all such lands not previously sold or conveyed by the wife, 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 civii 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 $100 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 $100 in value are not exempt. 4. The tools, implements, apparatus, team, vehicle, harness, or library necessary to enable any person to carry on the trade, occupation, or profession by which such person habitually earns his living, to the value of $500; also sufficient quantity of food to support such team, if any, for six months; the word “team” being construed to include not more than one yoke of oxen, or a span of horses or mules, or two reindeer, or six dogs. 5. The following prop erty, if owned by the head of a family and in actual use or kept for use by and for his family, or when being removed from one habitation to another on a change of residence: Ten sheep, with one year’s fleece or the yarn or cloth manufactured therefrom; two cows and five swine; household goods, furniture, and utensils to the value of $300; also food sufficient to support such animals, if any, for six months, and provisions actually provided for family use and necessary for the support of such person and family for six months. 6. The seat or pew occupied by the head of a family or his family in a place of public worship. 7. All property of any public or municipal corporation. No article, or the proceeds derived from its sale or exchange, is exempt from execution on a judgment recovered for its price Garnishment. (See Attachment.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Jauuary, commonly called New Year's Day; the 12th day of February, commonly called Lincoln’s Birthday; the 22nd day o! 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 ISth 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 oi 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 lieu 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, wbarf, bridge, flume, ditch, mine, tunnel, fence, machinery, or aqueduct, or any structure or superstructure, has a lien upon the same for the work or labor done or material fur nished at the instance of the owner of the building or other improve ment or his agent; and every contractor, sub-contractor, architect, builder, or other person having charge of the work, in whole or in part, is, for this purpose, deemed the agent of the owner. Statutory liens given to: (a) person who makes, alters, repairs, or bestows labor on any article of personalty at request of owner or lawful possessor; (b) person who is a common carrier or who shall, at request of owner or lawful possessor, carry, convey, or transport, personalty from one place to another; (c) any person who shall safely keep or store any grain, wares, merchandise, and personalty at request of owner or lawful possessor; (d) any person who shall pasture or feed any horses, cattle, hogs, sheep or other live stock, or bestow any labor, care or attention upon them, at request of owner or lawful possession; (e) laborers and loggers for labor on or in assisting to obtain any sawlogs, spars, piles, cordwood, fuelwood, shingle bolts, or other timer; (f) laborers, material men and contractors for work, labor and materials for the construction altering, digging, drilling, boring, operating, completing or repairing of gas wells, oil wells, or other wells, gas pipe lines or oil pipe lines; (g) laborers and material men for labor or materials furnished that contribute to the preparation of fish or aquatic animals for food, fish meal, fertilizer, oil or other article of commerce; (h) laborers, miners and watchmen for labor and work in, on or about mines and mining property. Limitations. Civil actions must be commenced within the following periods after the cause of action accrued: Within ten years—action for the recovery of real property, or the possession thereof; upon a judgment or decree of any court of the United States, or of any state or territory within the United States; upon a sealed instrument. Within six years—action upon a contract or liability, express or implied, except judgment or sealed instrument; upon a liability created by statute, other than a penalty or forfeiture; for waste or trespass upon real property; for taking, detaining, or injuring persona! 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 by or against her to the same extent and iD 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 BANKING AND COMMERCIAL LAWS—ARIZONA 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 anv subsequent innocent purchaser in good faith and for a valuable consideration whose conveyance is first duly recorded. A commissioner is ex-officio recorder of a recording district, the boundaries of which are fixed by the court. Conveyances of lands not in any recording district are recorded with the clerk of that divi sion of the district court within the limits of which such lands are situated. Replevin. The plaintiff, at any time after the commencement of an action to recover the possession of personal property and before Judgment, may claim the immediate delivery of such property upon filing an affidavit showing that he is the owner of the same or entitled to the possession thereof; that the property is unlawfully detained by defendant; the alleged cause of detention; that the same has not been taken for a tax assessment or fine, pursuant to a statute, or seized under an execution or attachment against the property of the plaintiff; or, if so seized, that it is exempt; and the actual value of the property. 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. Uniform laws: Negotiable instruments act; bills of lading act! air licensing act; general partnership act; limited partnership act; foreign acknowledgements act; sales act; stock transfer act; warehouse receipt act; conditional sales act. Wills. Every person of twenty-one years of age, of sound mind, may dispose of all his or her property by will, saving a widow's dower and a husband’s rights as tenant by the curtesy. Will must be in writing, signed by the testator, or under his direction, In his presence, and attested bv two or more competent witnesses subscribing their names in the presence of the testator provided that olographic wills, with or without attestation, shall be admitted to probate the same as other wills and proved the same as other private writings. "'Will’" includes “Codicils.” _ A will by an unmarried person is revoked by his subsequent marriage. Children or descendants of children not named or provided for in the will take as if testator had died intestate. A mariner at sea or soldier in military service may dispose of his personal property as at common law. Proof of nuncupative will must be made within six months, and the words or their substance reduced to writing within thirty days after they are spoken. A person owning property in, but not an inhabitant of. the district may devise or bequeath the same according to the laws of his domicile. If such will be probated without the district, copies of the will and the probate thereof, certified by the clerk of the court in which it was probated, with the seal of the court affixed thereto, if there be a seal together with a certificate of the chief judge or presiding magistrate, that the certificate Is in due form, and made by the clerk or other person having the legal custody of the record, may be recorded, admitted in evidence, or contested and annulled as if executed and proved within the district. SYNOPSIS OF THE LAWS OF ARIZONA RELATING TO BANKING AND COMMERCIAL USAGES Revised by C. B. Wilson, Attorney at Law, Flagstaff. Arizona. (See Card in Attorneys List) Accounts. When stated draw interest; when action is upon open account and affidavit of party, his agent or attorney, is attached, stating that such “account is within affiant’s knowledge, just and true, that it is due, and that all just and lawful offsets, payments and credits have been allowed,” is prima facie evidence, unless at least one day before trial, defendant files written denial of any item under oath. Acknowledgments. The form of an ordinary certificate of ac knowledgment shall be substantially as follows: “State of Arizona, > County of.................................................................................... } 83 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1827 Aliens. Unless rights are secured by treaty cannot hold laud in the state, may acquire by inheritance, or in ordinary course of Jus tice in the collection of debts; may acquire liens on real estate, may lend money and secure same on real estate, but title so acquired must be sold within five years; may acquire patented mines and hold stock in domestic corporation owning unpatented mines. The laws provide that the laws of the state pertaining to aliens shall not be construed as to conflict in any manner with any rights existing under and by virtue of any treaty of the United States with any other country. Appeals. Appeals are allowed from justice of peace to superior court in certain cases and from superior court to supreme court, except in actions of forcible entry and detainer where rental value of property is less than $300 per year. 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 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 tha 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 writ may issue, although plaintiff’s debt or demand be not due and under specified facts of intent to defraud; no final judgment shall be rendered until such debt or demand shall become due. Writ may issue at or after action began upon plaintiff or some one in his behalf filing the affidavit, and upon filing a bond with two sureties in an amount equal to amount sued for. Sureties can be compelled to justify upon notice. When more than one attachment is levied on same property writs take priority according to time of levy. (See Liens, Garnish ment.) Banks—Savings and Loan. May be incorporated to loan and invest property. May hold lot and building in which business is carried on, may hold for period of five years such real estate as it may accumulate on good faith loans and such personal property as may be required in transacting its business. 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 by notice and sale or by proceedings in superior court. Mort gagee may obtain possession of property on default and sell after notice which must be served on owner. After notice mortgagor may contest as to amount due and right to foreclose and have procedings transferred to superior court. Upon stock of goods, wares, and merchandise with continued possession in mortgagor, void. If copy is filed with recorder, original must be acknowledged, and copy certified to by county recorder. Claim and Delivery. (See Replevin.) Collaterals. No statutory provisions—common law prevails. Community Property. (See Conveyances.) Conditional Sales. Where title remains in vendor until purchase price is paid, void as to persons not parties thereto, and persons without notice, unless subscribed, and filed with county recorder. Contracts. (See Bills and Notes.) One or more obligors on a Joint or Joint and several instrument may be released without releasing the others, and may be sued separately under certain conditions with out releasing the others. Married women may contract as if sole. Conveyances. Conveyances of estate in lands for term more than one year shall be by instrument in writing subscribed by party making it, or his agent, duly authorized thereto by writing. A conveyance is not effectual against creditors or bona fide purchasers unless recorded In recorder’s office in county where land is situate. A conveyance purporting to convey a greater estate than the grantor has passes only the estate that he actually has, A general grant or devise passes the fee unless expressly limited to a less estate. All deeds to community realty must^ be signed by both husband and wife except as to unpatented 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 21 years of age and upward may convey their own lands without being joined by their husbands (See Acknowledgment, Dower, Husband and Wife, Homestead.) Corporation Commission, organized under Chapter 90, First Session, Laws 1912. Has general supervision of corporations. Corporations in General. Any number of persons may become incorporated for the transaction of any lawful business. Before com mencing any business, they must adopt articles of incorporation which shall be signed and acknowledged by them as deeds and be filed in the office of the Corporation commission at the State Capital and a certified copy thereof filed in the office of the County Recorder 1828 BANKING AND COMMERCIAL LAWS—ARIZONA in each county in the state in which they transact business. The articles of incorporation must contain: 1. The name, residence and Post Office address of incorporators, the name of the corporation, which name shall indicate the character of business to be conducted, and its principal place of transacting business. 2. The general nature of the business proposed to be transacted. 3. The amount of capital stock authorized and the times when and conditions upon which it is to be paid in stock without par value may be issued. 4. The time of the commencement and termination of the corporation. 5. By what officers or persons the affairs of the corporation are to be conducted, and the times at which they are to be elected. 6. The highest amount of indebtedness or liability to which the corporation is at any time to subject itself, which must not exceed two-thirds of its capital stock. 7. Whether private property is to be exempt from corporate debts. Unless so exempted stockholders are liable for the debts of the corporation in the proportion which their stock bears to the whole capital stock. Must be published for six times in some newspaper in the county where the principal business is located. Proof of publication must be filed with the Corporation Commission. Corporations to endure for twenty-five years. Corporation must file in office of Corporation Commission an appointment of agent who is a bona-fide resident of this state for three years prior thereto, on whom all notices and process including summons, may be served and constitutes personal service. Charges for incorporation. Recorder's fees, 20 cents folio. Recorders fees, certified copy, 20 cents folio. Recorder’s fees certificate to copy, 75 cents. Corporation Commis sion’s fees, filing cost copy, $10. Certificate of filing Articles of In corporation $5.00. Certificate of incorporation $10.00. Corporation Commission’s fees, filing appointment of agent, $5.00. Where charter provides assessments may be levied on shares io par value. Corporations, Foreign. Before it can transact business it must file certified and duly authenticated copy of Articles with Corporation Commission and also an appointment of agent upon whom a service personal to the corporation may be made in each county in which it transacts business. Publish its Articles of Incorporation and file affidavit thereof as required of domestic corporations. Pay license fee of $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 person by whom and to whom the transfer is made; the number of their designation 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 ot Grace. None. Depositions. May now be taken either upon oral examination, and cross-examination or upon written interrogatories and cross interrogatories, as is generally provided. Descent and Distribution. The law of community property prevails. Upon the death of husband or wife intestate, one-half of the community property goes to the survivor and the other half goes to his or her descendants. In the absence of such descendants the entire community estate goes to the survivor. The interest of either spouse in the community is subject to testimentary disposition. The entire community estate is charged with debts against it. The separate estate of intestate shall descend as follows: Personal Property: one-third to the surviving spouse and the remaining twothirds to descendants. In absence of such descendants the entire personal estate goes to surviving spouse. Real Estate. Estate for life in one-third with remainder to de scendants. If no descendants one-half to surviving spouse and the other one-lialf shall pass according to rule of descent and distribution: provided that if the intestate leaves neither father nor mother, then the surviving spouse shall be entitled to the whole of such real estate. If no husband or wife survive intestate, the separate property shall pass as follows: 1. to children of intestate and his or her descendants. 2. If no such children or descendants then to father and mother in equal proportions. If only one parent survives, then one-half will pass to such parent and the other half to brothers and sisters of intestate and their descendants. If no brothers or sisters, then the whole estate shall pass to the surviving parent. If no brothers or sisters or parents then the inheritance shall divide into moites, one of which shall go to the paternal grand parents and their descendants and the other to the maternal grand parents and their descendants (See Dower, Husband and Wife, Homestead). Dower. Dower is abolished. Evidence. The common law rules have not been codified. Parties may be examined and the other side not concluded thereby. Statutes of other states and territories purporting to be printed under authority may be read. No one is incompetent to testify because of religious belief. Certified copies of all records in state may be read. Certi fied copies of records of all notaries may be read. Court may order Inspection or copy of documents. Executions. Upon a judgment of superior court, executions may be issued to any county. Lien of dates from levy, and if on real prop erty, the description is endorsed on execution and filed with county recorder. A range levy may be made upon all of stock under a certain brand in same manner as upon real estate. (See Judgment, Liens.) Proceedings supplemental to execution—when returned unsatisfied creditor is entitled to an order requiring debtor to answer concerning his property, but not elsewhere than iu the county of his residence. Third parties may, upon affidavit, be required to surrender property. Court or judge may order suit brought to determine the denial of owning or of having property. Exemptions. Every person who is the head of a family, and whose family resides within this state, may hold as a homestead, exempt from attachment, execution and forced sale, real property to be selected by him or her, which homestead shall be in one com pact body, not to exceed in value four thousand dollars, upon filing affidavit designating such homestead in the Office of the County Recorder in county where property is situated. Such homestead exempt from date of filing said affidavit. The following property shall be exempt from execution, attachment, and sale on any process 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 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 ot which a carman, drayman, truckman, huckster, liackman, teamster, chauffeur, or other laborer habitually earns his living, and one horse with vehicle or harness or other equipment used by a surgeon, physician, constable or clergyman In the legitimate practice of his profession, with food for such horses or mules for one month. 12. Fuel necessary for the use of the debtor and his family for the period of six months. 13. The presses, stones, type, cases and other tools and implements used by any person or copartnership in printing or publishing a newspaper or in conducting any printing establishment or by any person hired to use them; not exceeding two thousand dollars in value; together with stock in trade not exceeding four hundred dollars in value. 14. The library and philosophical and chemical or other apparatus belonging to and used for the instruction of youth in any university, college, seminary of learning or school. 15. All moneys received by or payable to a surviving wife or child upon the life of a deceased husband or father, not exceeding ten thousand dollars. 16. All moneys arising from fire or other insurance upon any property exempt from sale on execution. 17. All moneys, relief, or other benefits payable to or to be rendered by any police department association, fire department association, beneficiary association, or fraternal benefit association, and any person entitled to assistance therefrom, or to any certificate holder thereof or beneficiary under such certificate. 18. Any claim for damages recoverable by any person by reason of any levy upon or sale under execution of his exempt personal property or by reason of the wrongful taking or detention of such property by any person, and any judgment recovered for such damages. 19. The earnings of the minor child of any debtor or the proceeds thereof by reason of any liability of such debtor not contracted for the special benefit of such minor child. 20 One half of the earnings of the wages or salary of any person for Lis per sonal services rendered at any time within thirty days next pre ceding the levy of attachment, garnishment or execution when it appears by the affidavit of the debtor or otherwise that such earnings are necessary for the use of the family residing in this state, supported in whole or in part by him. 21. All arms, uniforms and accoutre ments required oy 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. Everv 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 busine'ss 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 ali 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.) 6 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 BANKING AND COMMERCIAL LAWS—ARKANSAS 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. Ltens. 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 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 tb6 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, Mortgage.) 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 4x0x8 feet deep, or its equivalent ip 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. Miners. (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.) Netary 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. Probat© 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. Redemption from tax sales 3 years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1829 Replevin. For possession of specific personal property which has not been seized under any process, execution or attachment against the property of the plaintiff. Sales. The “uniform sales law” is in force. Seals. Addition or omission of seals or scrolls to instruments of writing in no way affect the force and validity of the instrument. Instruments executed by corporations must have a corporate seal attached. Service. All summons upon persons shall be personal, or by leaving a copy with copy of complaint at the usual place of residence, of defendant, with a member of his family over the age of sixteen years; against incorporated city, or town, or village; upon major, clerk, secretary, or treasurer; against incorporation or joint stock associa tion, upon president, secretary, or treasurer, director or local agent representing company, or by leaving a copy of summons and com plaint at the principal office during office hours; upon any railroad, telegraph, or express company, or any agent of such company who resides in or may be found in the county where suit is brought; upon domestic corporation by serving on statutory resident agent, and where there is no officer upon whom service can be made in the State, ser vice may be had by delivering duplicate copies of summons and com plaint to the secretary of the Corporation Commission, and upon foreign corporation by delivery to statutory agent. Personal service of summons may also be had by serving upon defendant by registered mail, as provided in statutes. Suits. (See Actions.) 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 vear. The lien attaches on the first Monday of January of each year. One-half of taxes be come due and payable on first Monday in September and become delinquent on the first Monday in November noxt thereafter. Re maining one-half become due and payable on first Monday in March and become delinquent on first Monday in May next thereafter. The penalty for delinquency is 4 per cent added thereto and interest from date of delinquency until paid at rate of 10 per cent per annum. County Treasurer shall advertise property for sale for delinquent taxes in month of August following delinquency and sell the same during the month of September. 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 Geo. W. Emerson, 607-608 A. O. U. W. Bldg. Attorney at Law, Little Rock. (See Card in Attorneys’ List.) Accounts verified by the plaintiff as just and correct prove them selves in suits thereon unless denied under oath. Acknowledgments may be taken within the State before the supreme or circuit court, or a judge thereof, county and probate court, or by county or probate judge, or clerk of any court of record, or 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 ocher 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. 1830 BANKING AND COMMERCIAL LAWS—ARKANSAS 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 f has 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. All state insolvency laws are held in abeyance since the Bankruptcy laws of 1898 and amendments thereto. 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. Attachments may be sued out where the defendant is a foreign corporation or non-resident, or being insolvent has been absent from the State four months, or has left the State with intent to defraud his creditors, or has left the county of his residence to avoid the service of summons, or conceals himself so that summons can not be served on him, is or about to remove or has removed a material part of his prop erty out of the State, not leaving enough to satisfy his creditors, or has sold, conveyed or otherwise disposed of his property, or suffered it to be sold with the fraudulent intent to cheat, hinder, or delay his creditors, or is about so to do. It is obtained by fifing 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, conveyed, or otherwise disposed of his property, or permitted it to be sold 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 cheat ing, hindering or delay ing his creditors. Batiks. The banking business is controlled by a state bank depart ment under the direction of a bank commissioner. Any five or more persons, the majority of whom must be residents of this state, may apply to the commissioner to be incorporated and the shares of capital stock shall be not less than $25 nor more than $100 each; application may also be made by an individual or firm and shall then be in such form as the commissioner may prescribe and such individual or firm shall adopt a name which will show that it is not incorporated; all property owned by such bank shall be held in the name of the bank and not in the name of the individuals composing the firm and all assets of any such private bank are exempt from execution by any creditor of such individual or firm until all liabilities of the bank have been paid; upon the death of an individual banker his widow is not endowed of any property of the bank except such as remains after the payment of all depositors and other creditors. No corporation, firm or individual may do a banking business until a fee of one-fifth of one per cent on the authorized capital stock shall have been paid to the bank commissioner. Fees at the same rate must be paid on each increase of the capital stock and for each amend ment or supplement to the articles of agreement, except for an increase of capital stock, there shall be paid ah additional fee of $10. There is also due the commissioner an annual fee of $1.5 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 been shown, and who, on the faith thereof, shall have received the bill for a valuable consideration. Every holder of a bill presenting it for acceptance may require an acceptance on the bill; otherwise the bill can be protested for non-acceptance. Notwithstanding the above provisions any one promising to accept a bill is liable to any person to whom a promise to accept it may have been made; and who, on the faith of the promise, has drawn and negotiated the bill. Any person on whom a bill is drawn, and to whom the same may be delivered for acceptance, who shall destroy it or refuse within twenty-four hours or such time as the holder may allow to return the bill accepted or not accepted to the holder, shall be deemed to have accepted the same. When the bills become due on any holi day, they are payable the next succeeding business day. Instru ments falling due (or becoming payable on) Saturday are to be pre sented for payment on the next succeeding business day; except that insturments payable on demand may be presented for payment before 12 o’clock on Saturday if it is not a holiday. The following damages are allowed where a bill is protested for non-acceptance or non-payment: If the bill is drawn on any place In this State. 2 per cent, if payable in the states of Alabama, Louisiana, Mississippi, Tennessee, Kentucky, Ohio, IncHana, 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-pay ment or non-acceptance is entitled to costs of protest and interest at the rate of 10 per cent per annum on the amount of the bill from date of protest. The term Bill of Exchange includes all drafts or orders drawn by one person on another for the payment of a sum of money specified therein. Bills and notes given for patented machines, implements, substance, or instruments of any kind, given to any citizen of this State, are not commercial paper, unless executed on a printed form, and showing for what consideration they were exe https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 Bank Department is constituted and delegated with full power and authority to permit or prohibit the sale of contracts, stocks, bonds or other securities in Arkansas, and application must be made and his permission obtained before foreign or domestic corporations, copartnerships or unincorporated associa tions offer their securities for sale. The act was passed in 1915 and amended in 1923, and may be found in Crawford & Moses’ Digest of the Statutes of Arkansas, sections 750-771. It is a misdemeanor to sell, or offer for sale, contracts, stocks, bonds, or other securities without first obtaining authority or a permit from the Blue Sky Department. Collaterals are governed by the law merchant. Contracts touching commercial matters are governed by the law merchant. Conveyances may be either witnessed by two witnesses or ac knowledged. (See Acknowledgments.) If witnessed they are proved by the oath of two witnesses, and are then entitled to record as though acknowledged. Dower can be relinquished only by the wife joining the husband. The wife may convey property acquired since October 30, 1874, by deed as a single person without her husband joining her, or by joining with him in the form above. The wife may convey by power of attorney and make executory contracts of sale. Deeds which have been recorded and are properly acknowledged prove them selves. Any substantial departure from the form of acknowledgments prescribed by the statute, such as the omission of the words “con sideration” or “purposes," makes the acknowledgment and record void: but statutes have been passed from time time curing defec tive acknowledgments previously made. Sucn a statute was passed In 1907. A new Curative Act was passed and approved Febru ary. 10. 1911. Corporations are organized only under general incorporation laws. Business corporations must consist of not less than three persons who shall elect a board of directors. The president and secretary are to be elected by the board and the president must be a member of it. The secretary and treasurer must reside and keep the books of the com pany within the State. The articles of association must be signed by the president and a majority of the directors, and must be accom panied by a certificate signed in a like manner and sworn to by the president and a majority of the directors, setting forth the purpose of the corporation, the amount of its capital stoclr 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 lie 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 tiie 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 nonar value. Before any corporations, foreign or domestic, can do any usiness 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 iu 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, iu 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 BANKING AND COMMERCIAL LAWS—ARKANSAS court or removes a suit there without consent of its adversary, its right to do business is revoked. Doing business nere without compli ance with the law subjects the corporation to a fine of not less then $1,000. These requirements do not apply to railroad or telegraph companies that had built lines in the State prior to Feb. 16, 1899. If any corporation fails to appoint an agent, service of process on the auditor of State shall bind it. No foreign corporation can sue on any contract made in this State until these provisions are complied with. Courts. The supreme court is held at Little Rock and has juris diction of appeals from the circuit and chancery courts. In all coun ties separate courts of chancery have been established. The estates of deceased persons are entrusted exclusively to the probate courts, with right of appeal to the circuit and thence to the supreme court. Claims against counties are heardby the county court, as also matters touching paupers and the like. The justices' courts have jurisdiction of matters of contract not exceeding $300, and matters of tort not exceeding $100. Two terms of the circuit and chancery court and four of the county and probate courts are held in each county per year. Courtesy. (See Dower.) Deeds. (See Acknowledgments and Conveyances.) Depositions may be taken in the State before any judge or clerk of a court of record, justice of the peace, mayor, or notary public; out of the State before a commissioner for this State, judge, justice of the eace, mayor, notary public, or person commissioned by the court or y consent of parties. Descents and Distributions. Property descends to children and their descendants in equal parts; if no children, then to father, then to mother, then to brothers and sisters and their descendants in equal parts, and in default of such to the nearest lineal ancestor or his descendants 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. Tn default of heirs the whole property goes to husband or wife, and in their default to the State. If me 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 1G0 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 birthday (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 forfeit* 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 furnishing 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1831 In two years. Actions for forcible entry and detainer, on contracts not in writing, for trespass and for libel, within three years. Actions for criminal conversation, assault and battery, false imprisonment, and slander, within one year. Actions on written instruments, within five years; on judgments, within ten years; on bonds of executors and administrators, within eight years. In all cases, except actions for the recovery of lands, minors and lunatics have, after removal of their disability, the statutory period in which to sue. Verbal promises or acknowledgments do not take a claim out of the statute. One year is allowed after dismissal of a suit in which to begin a new action. No person can avail himself of a disability which did not exist at the time the right of action accrued. No endorsement of pay ment made by the payee or on his behalf is sufficient proof to take the case out of the statute. Limited Partnerships may consist of one or more general, and one or more special partners. The latter of whom shall constitute in cash a specific amount as his share of the capital, beyond which he is not liable for firm debts. Those forming such partnership must make and file in office of circuit clerk of county, and principal place of busi ness, a certificate showing name of firm, names of partners, distin guishing between general and special, nature of business, amount of capital contributed by each partner, period of commencement and termination of partnership. Business to be conducted by general partners and suits brought by or against them. Married Women. The property, real and personal, of married women remains their separate estate as long as they choose, and may be devised or conveyed without, the husband’s assent, and is not subject to his debts. If she dies without making any disposition of her real estate, he is entitled to curtesy if they have or have had issue born alive. She may carry on any business or perform any services on her own account, and her earnings are hers, and she may sue alone in respect of her separate property. She can bind herself by contract only in reference to her separate estate or business. She can not enter into partnership with her husband. If she does not file a schedule of her personal property, the burden of proof is on her to show that it is hers. Mines and Mining. Under control of commissioner of mines. All documents relating to mines must bo 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 Metis as against any one, though such person has actual notice of their existence, until they are acknowledged in the form prescribed and filed for record. Mortgages of real estate are recorded in the county where the land lies, and mortgages of personal property in the county of the mortgagor’s residence. If the mortgagor of personality is a non-resident the mortgage is recorded in the county where the property is situated. Sales under mortgages and deeds of trust can be made only after appraisement, and the property must bring two-thirds of the appraised value. In case it is offered and fails to bring the required amount real estate may be offered again after one year and personal property after sixty days, and is then sold for what it will bring. The mortgagor of real estate has one year from the date of sale in which to redeem. In action to foreclose a mortgage, it is sufficient defence that the debt (which it recites), is barred by statute of limitations. Chattel Mortgages may be acknowledged and filed as other mort gages, or they may be endorsed "This instrument Is to be filed but not recorded,” signed by the mortgagee, and may then he filed in the recorder’s office with the same effect as though recorded. 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. All property should be assessed for taxes between the first day of May and the first day of June in each year, except in counties where the population exceeds 75,000, in which taxes should be assessed between the first day of January and the 10th day of April. State Tax Commission has general supervision and control over tax matters. Taxes must be paid between January 1st and April 10th of the year following the assessment. After April 10th penalty of 25 per cent will accrue. Taxes are first and paramount ien upon real and personal property after first Monday in June of the year in which assessment is made, which lien continues until such taxes with penalty shall be paid. Testimony. (See Evidence.) Transfer of Corporation Stock. (See Corporations.) Trust Companies must have a paid-up capital of $50,000, and In counties with a population exceeding 50,000, they must have a sub scribed capital of not less than $100,000. They may exercise all the powers commonly conferred on such companies. Wages. No assignment or order of wages to be earned in the future to secure a loan of less than $200, shall be valid against any employer or the person making such assignment or order, until such assignment or order is accepted in writing by the employer and the said assignment or order and the acceptance of same has been filed with the recorder of the county where the party making the assign ment or order resides, if a resident of the state where he is employed. 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 1832 BANKING AND COMMERCIAL LAWS—CALIFORNIA 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 leaded in bar of an attested will. Wills are revoked by marriage and irth 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. Afterbom children, not mentioned in the will, take their regular distributive share. If the testator fails to mention in his will any child, or its legal representatives, living at the time of executing the will, he shall, as to such child, or its represent atives, be deemed to have died intestate, and such child, or its rep resentatives. is entitled to its regular share. SYNOPSIS OF THE LAWS OF CALIFORNIA RELATING TO BANKING AND COMMERCIAL USAGES. Revised by Dinkelspiel & Dinkelspiel Attorneys and Counselors at Law, 14th Floor Pacific National Bank Building, 333 Montgomery St., 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 it 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; (,r>) 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 tlio 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-compiai n t. 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 six months after its first publication, when the estate exceeds in value the sum of ten thousand dollars, and six months when it does not. 11. Claims arising on contract whether due or not due or contingent, and funeral expenses must be https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. 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 the 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 persona! 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 lie 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 plaintiff, 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, upon 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; (1) 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 BANKING AND COMMERCIAL LAWS—CALIFORNIA 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 lawp 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 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 saviDgs and 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 Vie 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 capita! 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 discount, bills of lading or exchange drawn against actual value or buy and discount commercial paper, not to exceed twenty-five per cent of its capital and surplus. Bills and Notes. The Uniform Negotiable Instruments Law is In force. Statutes of 1917. Chapter 751. Chattel Mortgages may lie 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 t.lie mortgagor from the county where it is situated, t.he 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 In 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1833 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 mav be described bv 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 constructive 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. Private corporations may be formed for any purpose for which individuals may lawfully associate themselves. The number of directors of corporations for profit, except those mentioned as excepted, may be increased or diminished, by a majority of the stockholders of the corporation to any number, not less than three. The Articles of Incorporation having been formed to law, the Secretary of State shall file them in his office and put an endorsement of filing thereon. The corporate existence shall, begin upon the filing of the Articles of Incorporation and shall continue for an indefinite term, unless it be otherwise provided. The Articles of Incorporation may also contain provisions: (a) describing special qualifications of persons who may be shareholders, or restricting the rights to transfer or hypothecate shares; (b) granting or denying to the directors the power to levy assessments upon the shares of any class thereof, or restricting such power; (c) denying to shareholders preemptive rights to subscribe to any or all issues of shares or denying or placing limitations upon such rights. A copy of the Articles of Incorporation, certified by the Secretary of State and bearing the endorsement of the date of filing in his office, shall be filed in the office of the County Clerk of the County in which the corporation is to have its principal place of busi ness. Provision is also made for protecting corporations from having corporate names which might mislead the public. Before a corpora tion, which shall be formed hereafter, can purchase, locate or hold property in any county in the state, must first file a certified copy of its Articles of Incorporation with the County Clerk of the County in which such property is situated within sixty days after such pur chase or location is made. All present existing corporations must within ninety days from September 15, 1930, likewise file a certified copy of the Articles with the County Clerk where such property is located. 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 assessment 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. The stockholders of any corporation incorporated within this State may avoid the stockholders' liability which has been set forth herein above, by the use of the word “Limited” or “Ltd.” after the corporate name. This must be included in the Articles of Incorporation. 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 witn 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 detained does not exceed $75 per month, and the whole amount of damages claimed does not exceed $300. Also in actions to enforce and foreclose i lens on personal property, where neither the amount of the liens nor the value of the property amounts to $300. 1834 BANKING AND COMMERCIAL LAWS—CALIFORNIA Municipal Courts have been established in two Counties, to wit: Los Angeles County and San Francisco County. The jurisdiction of these Courts is for all matters not exceeding $2,000 which case original jurisdiction shall be given the Court in lieu of the former jurisdiction to the Justice of the Peace. Also they supersede the Justice of Peace in handling criminal departments in those counties. The juris diction of the Justice of the Peace has been increased to $1,000 in those counties or townships wherein the population exceed 30,000. Jurisdiction of the Justice of the Peace has been extended to $1,000 and in those counties where Municipal Courts have been established is the same as applies to the Superior Court. An appeal may be taken from these Courts to the Superior Court. Superior Court. The jurisdiction of the superior court is of two kinds: 1. Original. 2. Appellate. The superior court has original urisdiction in all cases in equity; in all civil actions in which the subect of litigation is not capable of pecuniary estimation; in all cases at aw 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 annuilment 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 courts 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 genera! 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 of 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 tn 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 tn 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 trict court of appeal which shall 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, consul, vice-consul, or consular agent of the United States in such country, or to any person agreed upon by the parties or judge of a court of record in such 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 time 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, it must be carefully read to or by the witness and corrected by him in any particular, if desired, by writing, or causing his corrections to be written at the bottom of the deposition, and must then be 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 be followed. Depositions in this State. The testimony of the witness in this State may be taken by depositions in an action at any time after the service of summons or the appearance of defendant, and in a special proceeding after a question of fact has arisen therein, in certain enumerated cases. Depositions for Use out of the State. Any party to an action or special proceeding in a court or before a judge of a sister state, may obtain the testimony of a witness residing in this State, to be used in such action or proceeding, in the cases mentioned following: If a commission to take such testimony has been issued from the court, or a judge hereof, before which such action or proceeding is pend ing, on producing the commission to 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 ts separate property. Dower interest does not exist The separate estate is distributed 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 oi 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 bv 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 He dead, then in 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 oi 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 allExemptions. The following property Is exempt from execution1. 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 tiie 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 ail 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 the exercise of their profession, witn then- 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 is 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 iu 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. 6. 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, peddler, hackman, teamster, or other laborer habitually earns his living, 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 erson, or his wife or family for the common necessaries of life, or ave 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 association 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 tnie 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. All 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 insuranceon the life of the debtor. If the annual premiums paid do not exceed BANKING AND COMMERCIAL LAWS—CALIFORNIA $500. 19. Shares of stock In any building and loan association to the value of $J,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 chough 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 fraduient 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 laintiff 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 sherifT 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, 12tb day of October, Armistice Day, Novem ber llth. 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 llth, 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 in'ssuance, 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 tects', builders’, laborers' of every class, materialmen’s or vendors’ liens upon the premises. 3. On debts secured by mortgages on the premises, executed and acknowledged by the husband and wife or an unmarried claimant. 4. On debts secured by mortgages on the premises, executed and recorded before the declaration of homestead was filed 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1835 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 attached 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 within 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 upoD 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 his office, or by the omission of an official duty, including the non-pay ment of money collected upon an execution; but this subdivision does not apply to an action for an escape. Within one year: (1) An action upon a statute for a penalty or forfeiture, when the action is given to an individual or to an individual and the State, except when the statute imposing it prescribes a different limitation. (2) An action upon a statute, or upon an undertaking in a 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 damages or injuries to property caused by a mob or riot. Within six months; (1) An action to recover property seized by tax collector. (2) To recover corporation stock sold for delinquent assessment. To actions brought to recover money or other property deposited with any bank, banker, trust company, or savings and loan society, there is no limi tation. If when the cause of action accrues against a person, he Is out of the State, the action may be commenced within the term herein limited, after his return to the State, and if, after the cause of action accrues, he departs from the State, the time of his absence is not part, of the time limited for the commencement of the action. And if the person entitled to bring the action be. at the time the action accrued, either a minor, insane, imprisoned for a term less than life, or a married woman, and her husband is a necessary party with her in commencing such action, the time of such disability is not a part of the time limited for the commencement of the action. No 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 formalities 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 pin-pose of showing such transfer to be a mortgage, be proved (except as against the subsequent purchaser or encumbrancer for value and without notice) although the fact does not appear by the terms of the instrument. A mortgage is a lien upon everything 1836 BANKING AND COMMERCIAL LAWS—COLORADO 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 particulariy 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 proceedings must be instituted (1) In the county in which the decedent was a resident; (2) in the county in which he may have died, leaving estate therein, he not being a resident of the State; (3) in the county in which any part of the estate may be, if the decedent died out of the State and was not a resident. (4) In any county in which any part of the estate may be, or the decedent not being a resident of the State nor leaving an estate in the county of death. (5) In other cases where application is first made, any person interested may petition for probate of a will or may contest such probate 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 bo 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 deceased. 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 he 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 so to do the property is deliverea 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 bequeatn 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 jromise, or where a creditor parts with value or where the new promse 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 of inten tion of sale is recorded seven days before transfer is made in accordance with law. f 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, 6 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. S. 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 revisions of the code, except that a will made in a State or country l 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. g 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 State or Territory to take and certify such acknowledgment; provided, there shall be affixed to the certificate of such officer, other thaD 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 writ of ne exeat is granted under proper circumstances. (See Fraudulent Purchasers.) BANKING AND COMMERCIAL LAWS—COLORADO 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 in 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 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 $2,600; 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 holdtng 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1837 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 rima facie holder in due course; but when the title of a person who as 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, 1S97. Aii 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.) 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 $100.00 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 $50,000 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 lndividuallv 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 exeruse 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 license 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. 1838 BANKING AND COMMERCIAL LAWS—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 have 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 Anal appeal, and also has some original jurisdiction, as in cases of habeas corpus, mandamus ar.d other remedial writs. Days of Grace. Are abotished. (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: 1. To his children surviving, and the descendants of his children who are dead, the descendants collectively taking the share which their parents would have taken if living. 2. If no children nor their descendants, then to his father and mother, share and share alike, and if one dead, then to the other; if no father or mother, then to his brothers and sisters, and to descendants of 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, tlie 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 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 deiraud the seller, sell, hypotnecate, 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 1st, 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 FRASER Digitized for https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 laud 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 beeD 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 constitutionality of tnis latter provision has, however, been attacked and is very doubtful. (See 117 Fed. 400.) Married Women. (See Husband and Wife.) Mechanics’ IJens. 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 iien. Action to enforce such lien must be commenced within six months after completion of the building upon which It Is claimed. Mortgages. Ordinary mortgages on realty are in common use: also deeds of trust to a public trustee and to private trustees. A trust deed to private trustee is foreclosed as to a mortgage. In case tiie 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 be 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 BANKING AND COMMERCIAL LAWS—CONNECTICUT 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. Heal 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 property by will but personal property may be disposed of by will by 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 null and void, unless the will be attested by a sufficient number of witnesses exclusive of such persons. No will can be revoked otherwise than by the subsequent marriage of the testator, or by burning, tearing, or obliterating the same by the testator, or in his presence and by his direction and consent, or by another will or credit, declaring the same, duly signed and witnessed, 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.) SYNOPSIS OF THE LAWS OF CONNECTICUT RELATING TO BANKING AND COMMERCIAL USAGES Revised by Field, Ddeant & Thim, 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 is 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1839 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 nassed 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 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. Ooijrts of probate having jurisdiction of the settlement of the estate of any deceased person may, concurrently with the courts of equity authorize the executor or administrator to convey the title of the deceased in any real estate to any person entitled to it., by virtue of any contract of such deceased person, and the court of probate in which the guardian of any minor has been appointed may, In like manner, order such guardian to convey the interest of his ward in any real estate which ought in equity to be conveyed to another person. Contracts for the conveyance of lands or of any interest therein, may be recorded in the records of the town in which such lands are; and such record shall be notice to all the world of the equitable interest thus created. Gaming or wagering contracts are void. Contract of incaDable 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 ease of spendthrift. No person who receives a valuable consideration for a contract, express or implied, made on Sunday, shall defend any action upon such contract on the ground that it was so made until he restores such consideration. The Uniform Sales Act passed in 1907 covers contracts to sell. (See Sales by Retail Dealers.) Conveyances. All conveyances of land must be in writing, signed, sealed, and acknowledged by the grantor, and attested by two subscribing witnesses. The word "seal" or the letters (L. S.) may be used for a seal. The acknowledgment is made by the grantor before a judge of a court of record of this State or of the United States, a clerk of the superior court, court of common pleas, or dis trict court, justice of the pease, commissioner of the school fund, commissioner of the superior court, notary public, town clerk, or assistant town clerk, if in this State, and if in any other State or Territory of the United States, then before a commissioner appointed by the governor of this State and residing therein, or any officer authorized to take the acknowledgement of deeds in such State or Territory, and if in a foreign country, before any consul of the United States, or notary public, or justice of the peace in such foreign country. Conveyances of real estate situated in this State, executed and acknowledged in any other State or Territory, in conformity with the laws of such State or Territory, are valid. If the land conveyed belongs to the wife, the husband should join in the conveyance, if married before April 20, 1877. If the land conveyed belongs to the husband, the wife need not join in the conveyance. No separate examination of a married woman is required in taking her acknowl edgment. Conveyances, including leases for more than one year, to be effectual against, any other person than the grantor and his heirs must be recorded on the town records of the town in wnich 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 tlie corporation, the nature of the business, the amount of authorized capita] 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 ano 1840 BANKING AND COMMERCIAL LAWS—CONNECTICUT In property, amount paid on each share of stock which is not paid for in full, names and address of subscribers with number of shares subscribed for, statement that the directors are officers have been duly elected and by-laws adopted, names and addresses of directors, the location of the principal office in the State with the name of the agent in charge. There must be at least three directors; vacancies in directors may be filled by remaining directors. No stock can be issued until it has been paid for in full. Receipts for partial payments of stock may be issued by the treasurer. Cer tificates for fractional shares cannot be issued. The corporation has a lien on capital stock owned by any person for debts due to capital stock with the approval of stockholders owning three-fourths of its entire outstanding capital stock, given at a meeting called for that purpose. Stockholders’ meetings must be held In this State. Similar corporations may consolidate. A corporation may be wound up by voluntary agreement of all stockholders, signed and acknowledged, directors acting as trustees to wind up the business. Receiver may be appointed on application of stockholders own ing one-tenth of the stock, in case of fraud, mismanagement, or if assets are in danger of waste by attachment, or when corporation has abandoned its business. Annual statements must be filed in the office of the secretary of state and a certified copy thereof in the town clerk's office, either on or before the 15th day of February or August, giving the names and addresses of the officers and directors, amount of outstanding stock not paid for in full with the amount due thereon, the location of the principal office in this State with the name of the agent in charge on whom process may be served. For failure to file annual statement the corporation may forfeit $25 to the State. Stock of no par value may be issued. Costs. For case before justice of the peace, actual cash costs not less than $5; before city court from $10 to $50, according to amount involved; before court of common pleas or superior court, 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 er year in each county for the trial of civil causes, and has jurisiction 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 haa 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 m many of the towns. Probate courts have jurisdiction of the settlement of the estates of deceased, insolvent, and incompetent persons, and are established in a 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 j ustice oi the peace has been transferrea to city court, except in cases of summary process and bastardy. Days of Grace. (See Notes and Bills of Exchange.) Heeds. (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 attena the trial, is going to sea, or out of the State, or by age and infirmity is unable to travel to court, or is confined in Jail. Reasonable notice must be given to adverse party. Deponents must be cautionea to speak the whole truth, ana 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 talcing 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 unsatillsed in whole or in part, may be examined on oath touching his property and means of paying such judgment, and may be committed for contempt. (See Exemptions.) 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, S https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 oifice in the town where the assignor resides, or if he resides without the State, in the town where the employer resides, and a copy left with the employer. (See also Exemptions.) Foreign Corporations. Every foreign corporation, except insur ance and surety companies and building and loan associations and investment companies (a corporation which has power to or does sell or negotiate its own choses in action or sell, guarantee, or negotiate the choses in action of other persons or corporations as investments), shall, before transacting business in this State, file in the office of the secretary of the State a certified copy of its charter or certificate of incorporation, together with a statement, signed and sworn to by its president, treasurer, and a majority of its directors, show ing the amount of its authorized capital stock and the amount thereof which has been paid in, and, if any part of such payment has been made otherwise than in cash, such statement shall set forth the particulars thereof. Sec. 83.—Every foreign corporation with an office or place of business in this State, except insurance companies, surety companies, and building and loan associations, shall, before doing business in this State, appoint in writing the secterary of the State and his successors in office to be its attorney, upon whom all process in any action or proceeding against it may be served; and in such writing such corporation shall agree that any process against it which is served on such secretary shall be of the same legal force and validity as if served on the corporation, and that such appointment shall continue in force as long as any liability remains outstanding against the corporation in this State. Such written appointment shall be acknowledged before some officer authorized to take acknowledgments of deeds and shall be filed in the office of said secretary, and copies certified by him shall be suffi cient evidence of such appointment and agreement. Service upon said attorney shall be sufficient service upon the principal, and may be made by leaving a duly attested copy of the process with the secretary of the State or at his office. Evew foreign corporation doing business in this State shall, within thirty days after an increase or reduction of its capital stock file in the office of the secretary of the State a certificate substantially like that required of domestic corporations organized under the like conditions. The president and treasurer of every foreign corporation doing business 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 of the town clerk of the town in this State in which such corporation has its principal office or place of business and said town clerk shall record the same in a book kept by him for that purpose. On the thirtieth day of March and September the town clerks of the several towns shall report to the secretary of the State the names of all corporations whose annual reports have been filed for record during the preceding six months, in accordance with the provisions of this section, and the secretary shall report to the attorney-general every six months the names of all corporations which have failed to comply with the provisions of this section, and the attorney-general shall collect all forfeitures due under this sec tion. Every corporation whose officers shall fail to comply with the requirements of this section shall forfeit to the State $100 for each failure. The attorney-general may remit this fine. Foreign Judgments. Not conclusive on question of jurisdiction. A foreign judgment when used by way of defence, is as conclusive to every intent, as those of our own courts. In an action on a judg ment rendered in another State, evidence on the part of the defend ant that he had no legal notice of the suit and did not appear, is admissible, although the record of the judgment stated that the defendant appeared by his attorney. Where the foreign court has a peculiar and exclusive jurisdiction, its decree is binding upon the judgment of any other court, into which the same subject comes immediately into controversy. A judgment rendered 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 after April 19, 1877, neither husband nor wife acquires by force of the marriage any right to or interest in any property held by the other before the marriage or acquired after the marriage, except as to the share of the survivor in the property of the other as hereinafter stated. Wife married subsequent to April 19, 1877, may hold and convey real estate separate from her husband. Separate earnings of the wife are her sole property. On the death of the husband or wife the survivor shall be entitled to the use for life of one-third in value of all the property, real or personal, owned by the other at the time of his or her decease, after the payment of all debts and charges allowed against the estate. The right to such third can not be defeated BANKING AND COMMERCIAL LAWS—CONNECTICUT 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 82,000, 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 Anal 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 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 he 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 cleric 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 https://fraser.stlouisfed.org 115 Federal Reserve Bank of St. Louis 1841 partner and the time at which the partnership is to commence and terminate; nor until such certificate, and also a certificate of the amount actually paid in by each special partner, signed and sworn to by such of the general partners as are authorized to transact the partnership business, shall be filed and recorded in the office of the town clerk of the town where the principal business of the part nership is to be carried on; and a copy of such certificate shall be prima facie evidence of the matters therein contained; and the part nership shall be responsible only for the acts of the general partners designated as specially authorized as aforesaid; and copies of said certificates shall, in like manner, be filed in every town where such partnership may have a place of business. Terms of such partnership must be published for six weeks in newspaper published in county where business is to be carried on. Any such partnership may be renewed by filing at any time before its expiration, with the town clerk, a sworn certificate of the general partners, setting forth the time for which said renewal is made, whether the special capital has been reduced or impaired since the last certificate filed by said partnership, and if so, to what amount, and by publishing not less than once a week for two weeks in a newspaper published in county, the time at which the said renewed partnership is to commence and terminate, signed by the partners thereto, and specifying which are general and which are special partners. If the requirements con cerning original certificate are not complied with, or false certificate be made, all special partners shall be liable as general partners. All advancements to the capital stock by the special partners shall be in cash and no part of the capital furnished by them shall be with drawn, either in the shape of dividends, profits or otherwise, at any time while such partnership continues; except that any special part ner may lawfully be paid from the assets of such partnership, each year during the continuance thereof, a sum not exceeding 10 per centum upon the cash contributed by him to the capital stock; pro vided that such payment shall only be made out of the net profits actually earned by such partnerships during the year for which such payment is made. No special partner shall under any circum stances be considered a creditor, or allowed to claim as a creditor. No special partner shall be joined as a party in any action by or against such partnership unless liable as a general partner Married Women. (See Husband and Wife.) Mortgages of real estate are executed, acknowledged, and recorded In the same manner as deeds, and are foreclosed by strict foreclosure or by a decree of sale. Chattel mortgages to be good against third parties, where the mortgagor retains possession, must be executed, acknowledged, and recorded as mortgages of land, and can only be made of the following described personal property—with or without the real estate in which the same is situated or used—namely: ma chinery, engines, or implements situated and used in any manu facturing or mechanical establishment: machinery, engines, imple ments, cases, types, cuts, or plates situated and used in any print ing, publishing, or engraving establishment; household furniture in a dwelling house used by the owner therein in housekeeping; hay and tobacco in the leaf in any building. Piano, organ, melodeon, and any musical instrument used by an orchestra or band. Brick burned or unburned, in any kiln or brickyard. Hotel keepers may mort gage the furniture, fixtures, and other personal chattels contained and used in the hotels occupied by them or employed in connection therewith. Chattel mortgages are foreclosed by sale under order of court. In all cnattei mortgages there must be a particular descrip tion of each article of personal property. Judgment for deficiency after sale, permitted. 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 ossession. A writ of replevin can not issue except upon an affidavit i 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 cierks 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 tbe 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 E 1842 BANKING AND COMMERCIAL LAWS—DELAWARE which, are legal investments for savings banks which bonds snail 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 out side 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 arter 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 Insurance commissioner a copy or its charter or articles of association, ana sworn statement of the condition of its business. The insurance commissioner may thereafter issue to such company a license to ao business in this State. Such company must appoint the insurance commissioner its agent on whom process may be served. Such com pany must file annually on or before March 1st, with the insurance commissioner a statement of the capital of such company and its investments and risks. An annual license is granted if annual state ment be satisfactory. Local agents must procure certificates of authority to act as agent from the insurance commissioner. The insurance commissioner may also at any time examine the affairs of any surety company doing business in the State. A reserve fund must be maintained equal to 50 per cent of the gross amount of premiums received on business in force. No such company can incur on behalf of any one person or corporation a liability for an amount larger than one-tenth of its paid-up capital stock and sur plus without giving collateral security. Taxes. Land may be sold for delinquent taxes after due adver tising, only so much being sold as is necessary to pay taxes and costs. Owner has one year in which to redeem, by paying the purchase money, with 12 per cent interest. Bonds, notes, or other choses in action, except bonds and notes secured by mortgage on real estate situated in this State, may be exempted from all local taxation by paying to the State a tax of 2 per cent on the face amount thereof for five years, or at the option of the holder thereof for a greater or less number of years at a proportionate rate, inheritance taxes are levied on all property within Connecticut possessed by any resident of Connecticut at the time of his decease, and all tangible property within Connecticut possessed by a non-resident at the time of his death which passed by gift, to take effect at death or by will to any Derson, 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. Wilis 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. Wills are proved and estates settled in the probate court in the district where the deceased resided. Wills of nonresidents owning property in this State may be proved by filing exemplified copies thereof in district where property is located. Such course should always be taken in order to pass good title to real estate. Workmen’s Compensation Act. Passed in 1913. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF DELAWARE RELATING TO BANKING AND COMMERCIAL USAGES Revised by Attorney at Law. 210 Ford Bldg., Wilmington. (See Card in Attorneys’ List.) 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. AI tachments. 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 he 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 reauired to give security. Wages are exempt from attach 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 of 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. Ranks. 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, '[’he 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 oy special act before the 1897 constitution, and by general corporation act since, whicn nave oeen granted Ranking 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 persona! 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. lie 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 BANKING AND COMMERCIAL LAWS—DELAWARE 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. for costs. Non-resident plaintiffs may be required to give security 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 cal) 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 Fleas 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 b'ood preferred to half blood. Fourth: If no issue, father or mother, brothers or sisters or lawful issue thereof, then to next of kin in equal degree, and lawful issue; provided collateral kindred claiming through a near common ancestor shall be preferred to those claimiug 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 fori 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. Exceptions 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 issued 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 and 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 Castle County wages for a montn of employes ot corporations are preferred 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 upoD giving security. Exemptions. No homestead law. Family pictures, bible, and library; lot in burial ground and pew in church; all wearing apparel; sew ing 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 Rent 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1843 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 on Saturday half-holiday, if not presented for payment before noon, 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 aud 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 lieu on Real Estate unless Transcript filed as in case of Justice of Peace. Limita tions. Contracts not under hana ana book accounts tnree years, bills and notes under hand six years. Judgments and special ties are merely presumed to have been paid after tho 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. Marrlea 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 all civil actions in which either or both are or may be parties to the suit. Mortgages of Real Property are executed and acknowdedged 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. 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 Darned 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 State 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. Genera) assessments are made every four years. Wills. Any person of the age of twenty-one years or upward, of sound mind, may make a wifi 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 his 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. 1844 BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA SYNOPSIS OF THE LAWS OF THE DISTRICT OF COLUMBIA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Dulany, & Heth, 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 be accompanied by a certificate of the register, clerk, or other public officer that the officer taking said acknowledgment was in fact the officer he professed to be. Deeds made in a foreign coun try may be acknowledged before any judge or notary public, or before anysecretary of legation or consular officer or acting consular officer of the United States as such consular officer is described in section 1674 of the revised statutes of the United States, and when the acknowl edgment is made before any other officer other than a secretary of legation or consular officer or acting consular officer of the United States, the official character of the person taking the acknowledgment 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 prohibited from acquiring real estate. Corporations of which over 50 per cent of the stock is or may be owned by persons or asso ciations not citizens of United States can not acquire or own real estate in District of Columbia. Appeals. Appeals from the Municipal Court to the Supreme Court of the District are now abolished. Writs of error from the Court of Appeals of the District may issue to the Municipal Court for the review of judgments on questions of law. Appeals may be taken from the supreme court of the District of Columbia to the court of appeals of the District of Columbia. Certain cases are appealable direct to the Court of Appeals. Appeals may be taken from the court of appeals to the supreme court of the United States; 1. In cases where jurisdiction of trial court is in issue. 2. Prize cases. 3. Constitutional questions or treaties involved. 4. Where validity of any authority exercised under U. S., by an officer is in question and 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 breacli 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 ail 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 SI,000 of the amount of the capital stock of the corporation, as set forth in its certificate, provided that no fee shall be less than $25. Courts in session continuously throughout the year. Suits on contracts, accompanied by sufficient affidavit of right to recover, is result in judgment in twenty days, exclusive of Sundays and legal holidays, after day of service on defendant, unless defendant file and affidavit setting forth facts which, if true, would in law constitute a valid defense. Days of Grace abolished. Deeds. The following form of deed is now all that is required in the District of Columbia to convey a fee simple title to real estate: This deed, made this... .day of........... . in the year..... by me......... of............. witnesseth: That In consideration of (here insert con sideration), 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 Dis trict or not. 4. If during the trial any witness is unable, by reason of sickness, or other cause, to attend the trial, the deposition of such witness may, in the discretion of the court, be taken and read at the trial. The deposition may be taken before any judge of any court of the United States; before any commissioner or clerk of any court of the United States, or any examiner in chancery of any court of the United States; before anv chancellor, justice, or judge or clerk of any court of any State or Territory or other place unaer the sover eignty of the United States, or any notary public or justice of the eace within any place under the sovereignty of the United States: rovided, that no such person shall be eligible to take such deposition who is counsel or attorney for any party to the cause, or who is in anywise interested in the event of the cause. Descent and Distribution. Real Estate, Lands of intestate descend, first, to child or children equally. If there be children of a deceased child, these children take (equally) the share of their immedi ate ancestor. If no child or descendant of such child, and the estate descended to intestate on the part of the father, then it goes to the brothers and sisters of the intestate of the blood of the father, and their descendants equally. If there be no such brothers or sisters or descendants, then it goes to the grandfather on the part of the father; and if no such grandfather living, then it goes to the descend ants of such gi-andfather, 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. ? BANKING AND COMMERCIAL LAWS—DISTRICT OF COLUMBIA 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 b( a mother and no father, child, or descendant, the mother shall have the whole. If there be a brother or sister, or child or descendant or a brother or sister, and no child, descendant, or father or mother of the intestate, the said brother, sister, or child or descendant of a brother or sister shall have the whole. Every brother and sister of the intestate shall be entitled to an equal share, and the child or children, or descendants of a brother or sister of the intestate, shall stand in the place of their deceased parents respectively. After children, descendants, father, mother, brothers, and sisters of the deceased and their descendants, all collateral relations in equal degree shall take, and no representation among such collaterals shall be allowed. If there be no collaterals, a grandfather may take, and if there be two grandfathers they shall take alike; and a grandmother, in case of the death of her husband, the grandfather, shall take as he might have done. If any person entitled to distribution shall die before the same shall be made, his or her share shall go to his or her representatives. Posthumous children of intestate shall take in the same manner as if they had been born before the decease of the intestate, but no other posthumous relation shall be considered as entitled to distribution in his or her own right. In the distribution of personal estate there shall be no distinction between the whole and half blood. Dower. A wife is entitled to dower in all real estate owned by the husband at the time of his death, including equitable as well as legal estates. Evidence. (See Depositions.) Executions. Executions may be levied upon all goods and chat tels of the debtor 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 earning3 of married men or heads of families, not to exceed $100 per month for two months. Exemptions are only allowed where the party claiming such is the head of a family or householder residing in the District. Foreign Judgments. Suits may be instituted in the supreme court of the District of Columbia on any judgment of a court of record in any other jurisdiction. The declaration in any such case must be accompanied by a transcript of the record of such judgment verified according to the act of congress in such cases made and provided, and judgment in due course may be rendered on such transcript as in any other case. Garnishment. After judgment the writ of garnishment may Issue against specific property or credits in the hands of the garnishe® 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 fee simple prop erty of which she dies intestate. The husband is not liable for the debts of his wife contracted before marriage. A husband, who wil fully neglects to provide for wife or minor child under sixteen years, in destitute circumstances, may be adjudged guilty of a misdemeanor, and may be fined, or imprisoned, by the court having jurisdiction. Interest. The legal rate of interest in the District of Columbia is 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.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1845 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 damages exclusive of interest and costs, does not exceed $1,000. When the value in controversy shall exceed $20, and in all actions for the recovery of the possession of real property, either party may demand a jury trial. Judgments rendered by the Municipal Court remain in force for six (6) years and no longer, unless it shall be docketed with the clerk of the Supreme Court oi the District of Columbia, when it remains in force for twelve (12) years. No judgment shall be a lien upon the defendants real property until so docketed. Partnerships. Limited partnerships for the transaction of any mercantile, mechanical, or manufacturing business within the District may be formed by any two or more persons, but the number of special 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 betore penalty attaches. New assessments are made every year for real estate (unless improve ments are put on) and every year for personal property by a permanent Board of Assessors. Intangibles are taxed at the rate of one-half of one pereentum of the fair value thereof. Trust Companies. Trust companies can be organized under the general provisions of the code on that subject. No trust company can be incorporated with less capital stock than $1,000,000. May do a storage business with a capitalization of not less than $1,200,000. Foreign companies desiring to operate in the District must first com ply with the provisions for the organization of trust companies under the laws of this District. Wills. All wills and testaments must be in writing and signed by the testator, or by some other person in his presence and by his express directions, and shall be attested and subscribed in the presence of the said testator by at least two credible witnesses. No will, testa ment, or codicil is effectual for any purpose whatever unless the person making the same be, if a male, of the full age of twenty-one years, and if a female, of the full age of eighteen years, and be at the time of executing or acknowledging it, of sound and disposing mind and capable of executing a valid deed or contract. Any will executed after January 17, 1887, and before January 1, 1902, devising real estate, from which it shall appear that it was the intention of the testator to devise property acquired after the execution thereof •hall 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 testator after the execu tion thereof, unless an intention shall appear to ohe 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. 1846 BANKING AND COMMERCIAL LAWS—FLORIDA SYNOPSIS OF THE LAWS OF FLORIDA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Shackleford, Ivy, Farrior & Shannon, Attorneys at Law, 700 Tampa Theater Bldg., Tampa, 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, ) County of............................. ) Before the subscriber personally appeared........................................... and his wife.................... known to me to be the individuals described in and who executed the foregoing Instrument who acknowledged that they executed the same for the uses and purposes therein expressed and the said..................................................................wife of the said............. .............................being by me further and privily examined separate and apart from her said husband, acknowledged and declared that she executed the same freely and voluntarily, and without fear, appre hension, compulsion, or constraint of, or from her said husband, and for the purpose of renouncing and relinquishing all her right, of what soever kind. In and to said property. Given under my hand and seal official this................day of................. 19.... Notary Public. My commission expires......................................................... .(See notaries.) Actions. Suits shall be begun only in the county (or if less than $100 in justice district) where the defendant resides, or where the cause of action accrued, or where the property in litigation is. if brought in any county where defendant does not reside, the plaintiff, or some person in his behalf, shall file with the 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 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 bo Issued both before and after judgment. If issued before judgment plaintiff, his agent or attorney must make affidavit that the debt for which the plaintiff sues is just, due and unpaid; that the garnishment applied for is not sued out to injure either the defendant or the garnishee; that he does not believe that defendant will have in his possession after execution shall be issued visible property in this state and in the county in which suit Is pending upon which a levy can be made sufficient to satisfy the amount of plaintiff's claim, stating the amount, and, except in cases in which plaintiff has had an attachment or obtained his final judgment, he, his agent or attorney, must enter into bond payable to defendant in double the amount of the debt, condi tioned to pay all costs and damages which defendant may sustain in consequence of plaintiff’s improperly suing out the writ. Banks. Corporations for carrying on the business of banking may be formed by any number of persons not less than five, with a board of directors consisting of not less than five nor more than twenty-five. No banking company shall be organized with a capital of less than $50,000, except that banks with a capital of not less than $25,000 may, with the approval of the comptroller, be organized In any city or town containing not more than 3,000 inhabitants. The capital stock shall be divided into shares of $100 each. Stockholders of every banking, savings and trust company, shall be held individually responsible equally and rateably and not for one another for all contracts, debts and engagements of such company to the extent of the amount of their stock therein at the par value thereof in addition to the amount invested in such shares. Persons holding stock as executors, administrators, guardians, or trustees are not personally subject to any liability as stockholders; but the estates and funds in their hands are liable to the same extent as a testator, intestate, ward or person interested in trust funds would be if living and com petent to hold the stock in his own name. Banking corporations are formed as other corporations and cannot begin business until author ized by the comptroller. Directors must be citizens of the United States and at least three-fifths of the directors must have resided in the State of Florida for at least one year preceding their election as director and every director must own in his own right at least ten shares of stock. Every banking firm, banking company or trust company or liquidating agency, except national banks, shall be ex amined at least twice in each year by examiners appointed by the State Comptroller, and shall furnish financial reports whenever called upon by the State Comptroller. The comptroller on becoming satis fied of the insolvency of all banking corporations in the State except national banks, or that the affairs of any such bank are in an unsound condition or threatened with insolvency because of illegal or unsafe investments, or that it is violating any of the laws of the State relative to banking corporations, may in his discretion apply to the proper court and have a liquidator ■ take charge of the assets and affairs of such banking corporation. Such liquidator is under the direct control of the comptroller and may be removed by the comptroller. No new private banks permitted after June 4. 1915. 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 oi 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 and by-laws. All the above papers to be verified by oath 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 expiree 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 Droperty delivered to mortgagee to make them effectual against bona fide creditors and purchasers for value. Injunction will be granted against the removal of mortgaged personalty from the State; can only be foreclosed by bill in chancery unless under $100, and upon personal property, when a common law action may be brought in justice of the peace court, and mortgage filed with precipe. The form and effect of trust deeds have not been dis turbed by statute. It is a criminal offence to mortgage personal prop erty more than once without the consent of first lienor. Checks 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. BANKING AND COMMERCIAL LAWS—FLORIDA Conditional Sales Contract. Conditional sales contracts are valid in Florida as such and may be either oral or in writing. No requirement as to recordation until the elapse of two years from date of delivery of the property. Invalid after two years against purchasers or creditors unless recorded. For purpose of recordation contract should be signed, sealed, witnessed and acknowledged before a Notary Public. Contracts. Statute of Frauds. In order to bind an admin istrator personally, or any one for the debt or default of another, or one upon an agreement made in consideration of marriage; or upon contracts for thesaleoflands.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 unnaid 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. Mother 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 for life, and, 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 shall not extend to more improvements or buildings than the residence and business house of the owner. No property is exempt from sale for taxes or assessments, or for obligations contracted for its purchase, or the erection or repair of improvements thereon, or for house, field, or other labor performed thereon. Wages and salary of head of a family residing in the State is exempt from garnishment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1847 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 ail 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 purpose, 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 ar eno 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 neoessaries. 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. 1848 BANKING AND COMMERCIAL LAWS—GEORGIA 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 place within the State, then in the county in which he has had residence, house, or other place of abode at the time of his death, and if he had none such, then in the county wherein he died. Redemption. None, excepting tax sales. 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. Domestic and Foreign corporations are required to file with Secretary of State a certificate designating an office for service of process, which office must contain a sign with name of corporation and agent and must be kept open and agent must be present from ten A. M. to twelve noon each day except Sundays and Holidays. In lieu of such agent corporation may designate Clerk of Circuit Court. Failure to comply with act authorizes service by publication once each week for four weeks and carries penalty of one dollar per day up to Two Hundred Fifty Dollars 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 be 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. Wills of personal property must be in writing and signed by the testator or some one in his presence, and by his express direction. Nuncupative wilis 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF GEORGIA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Randolph & Woodruff, Attorneys at Law 401-2-3-4 Trust Oo. of Ga. Bldg., Atlanta. Acknowledgments. (See Deeds.) Actions. All distinction between suits at law and in equity 1s 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 )ath 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 ari action to recover personal property wrongfully taken or withheld, the defendant will be arrested by 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 $25,000, 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 BANKING AND COMMERCIAL LAWS—GEORGIA prescribed in the penal code. The State has a special lien for all ublic money deposited. State banks are authorized to become mefmerg 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 of the State or doing business therein are required to register with the Secretary of State and pay a graded license fee. with a minimum of $10, maximum $1000. Voluntary dissolution of a corporation may be granted by the Superior Court upon petition filed by the Corpor ation if authorized by two-thirds of capital stock. Lost stock certificates must be established by petition to Superior Court. Costs. A deposit of $10 Is required in courts of record from non-resident plaintiffs before the filing of suits and a deposit of $6 in all divorce cases. Courts. The term. Jurisdiction, etc., of the several courts of the State are as follows: JUSTICE COURTS hold monthly sessions and have civil jurisdiction up to $100. In criminal matters they are only committing courts. COURTS OF ORDINARY hold their sessions monthly and have jurisdiction over wills, administration of estates, and of the conduct of administrators, executors and guardians. COUNTY COURTS have monthly and quarterly sessions. Their Jurisdiction is limited to controversies not exceeding $360. 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 each 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 public, or clerk of the superior court, in the county In which the three last mentioned officers respectively hold their appointment, or if subse quent to its execution the deed is acknowledged in the presence of either of the named officers, that fact, certified on the deed by such officer, shall entitle it to be recorded. (Act of 1893.) Deeds to secure loans are in more common use than mortgages because they have been held to pass the absolute title and protect against year’s support and dower, the equity of redemption remaining in the maker, can not be levied upon until the debt secured by the deed has been paid off. Under the law of Georgia these deeds can not be foreclosed as mortgages, the notes they are given to secure must be sued to judg ment, the land must bo 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 doe* 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 rocess cannot be used for taking testimony outside of the State. •epositions may be taken within or without the state, without com mission, before a notary public or any officer authorized to issue attachments. If within the state or if taken without the state, before any officer of the state or county where taken, authorized by laws of Georgia to attest deeds or take acknowledgments, upon 10 days' notice to opposite party. In taking answers to interrogatories, which must be authorized by a commission issued for such purposo 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 agent® or attorneys, can be present when the commission is executed. The witness can only write his answer in S E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1849 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 answeretb as follow*: (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 maii, or by some person specially author ized by the commissioner to carry it to the court. Descent and Distribution of Property. The husband la 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 th* 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 hia wife. There is no necessity for renunciation of dower in this State, and a married woman, on that question, need not join with her hus band in conveying land, except in cases where, before 1866, he obtained real estate belonging to his wife, by virtue of the marital relation. Executions. Must follow the judgment or decree from which they issue. They are good for seven years and may be renewed for a like period by entry nulla bona. Exemptions and Homesteads. Under the constitution and laws of Georgia, each head of a family or guardian, or trustee of a family of minor children, or of an aged or Infirm person, or a person having care and support of dependent females of any age, who is not th* head of a family, shall have exemption of realty, or personalty, or both, to the aggregate of $1600. The debtor shall have power to waive or renounce, in writing, his right to the benefit of exemption above stated, except as to wearing apparel and not exceeding $300 worth of household and kitchen furniture, and provisions. The homestead or exemption may be sold by the debtor and his wife, if any, with the sanction of the judge of the superior court of the county where the debtor resides, or the land is situated. The proceeds to be re-invested upon the same uses. A general waiver in writing, of the homestead, or exemption, is good. Foreign Corporations. All corporations, except those chartered and organized under the laws of this State, are held to be foreign corporations. Such corporations are recognized by comity only; they are subject to attachment, but have all the rights of replevy and defense. They cannot exercise any corporate powers or privileges which by the constitution and laws of Georgia are denied to domestic corporations or the exercise of which would be contrary' to the public policy of this State. There is otherwise no restriction upon foreign corporations except in the case of insurance companies and building and loan associations, which are required to make deposits. All cor porations are subject to license fees for doing business and all are liable for taxes on property owned or held in the State’ (See Corporations.) Fraud. Contracts, awards, marriages. Judgments, sales, and wills are void when they are brought about and procured by fraud. Prom issory notes when procured by fraud are void in the hands of the holder, who so procures them. The statute of frauds, as of force in Georgia, requires the following obligations to be in writing, signed by the party, or his authorized agent, to be binding: 1. A promise by an executor, administrator, guardian, or trustee, to answer in damages out of his own estate. 2. A promise to answer for the debt, default, or mis carriage of another. 3. An agreement made upon consideration of marriage, except marriage articles as otherwise provided. 4. Any contract for the sale of lands, or any interest in or concerning them. 6. Any agreement that is not to be performed in a year. 6. A promise to revive a debt barred by statute of limitations or bankruptcy. 7. Any contract for the sale of goods, wares, and merchandise, in existence or not in esse, to the amount of $50 or more, except the buyer shall accept part of the goods sold and actually receive the same or give something In earnest to bind the bargain or in part, payment. 8. An acceptance of a bill of exchange. Garnishments. This process may be invoked in any case. 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 i»nly date from the time of record. (See Actions.) Jurisdiction. (See Title Courts.) 1850 BANKING AND COMMERCIAL LAWS—IDAHO 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 proporty improved or worked on. Landlords have a general lion 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, pawnees, carriers, attorneys and others are recog nized. Vendor’s lien on land has been abolished. Attorneys have a special lien on papers in their hands and on property recovered in suits brought by them or successfully defended by them. Limitations. Suits on open accounts are barred after four years, on promissory notes and bills after six years, on instruments under #eal after twenty years, on suits for personal injury after two years. Seven years’ adverse possession of real estate under color of title, and twenty years’ adverse possession without color of title, will bar the claims of all persons not laboring under disability. Infants have seven years to assert their rights, after becoming twenty-one years of age. 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 necessarios. 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. Ail 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 to transferee after maturity. 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 or 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 Hen upon all the property of the debtor, real or personal, and its Hen 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, ail 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF IDAHO RELATING TO BANKING AND COMMERCIAL USAGES Revised by Richasdb & Hag a. Attorneys at Law, Boise. (See Card In Attorneys' i.lst.) Acknowledgments, All conveyances and other Instruments required to be acknowledged In this State must, be acknowledged, if within the State, before a judge or clerk of a court of record, or the Secretary of State, as county recorder, a notary public, or a justice of the peace. The authority of a justice or clerk of the Supreme Court, or Notary Public, or the Secretary of State, to take acknowl edgments extends to any place wit hin the st ate, and of the remaining officers authorized to take acknowledgments to the city, county or district for which said officer was elected or appointed. If without the State, but wittjin me 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 or vice-consul, a judge of a court of record, a duly appointed commissioner, or a notary public. The certificate ol' 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. The forms of certificates of acknowl edgment by trustees, executors, administrators, guardians, sheriffs, receivers, and other officials, and of partnerships, and o£the state, and of any county or subdivision, are prescribed by Laws, 1929, Chapter 183. (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 aud 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 bis 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.) (Laws 1929, Chap. 24, P. 24; Chap. 54, Pp. 73, 74; Chap. 192, Pp. 353,354,355; Chap. 193, Pp. 357,358, 360, 361; Chap. 237, P. 460; Chap. 243, P. 489; Chap. 252, P. 512; Chap. 280, P. 671.) 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, 2S6.) 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 Proporty. 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 roperty are community property unless she is living apart from her usband. Contracts. A written instrument is presumptive evidence of a consideration. Conveyances. Real estate is conveyed by instrument in writing, subscribed by the party or bis 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.) BANKING AND COMMERCIAL LAWS—IDAHO Corporations. Private corporations may be formed by three or more natural persons of full age, at least two-thirds of whom are citizens of the United States. Such corporations are formed by execu' ng articles of incorporation signed in triplicate by each of the incorporators and acknowledged by at least three of them before an officer authorized to take acknowledgments, and in addition to stating the name of the corporation, shall state in the English language: 1. Its purpose. 2. Its duration. 3. Location and post-office address of its registered office in this state. 4. Total authorized number of par value shares and their aggregate par value, and if any of its shares have no par value, the authorized number of such shares. 5. Description of the classes of shares, if shares are to be classified, and a statement of the number of shares in each class and the relative rights, voting power, preferences and restrictions granted to or imposed upon the shares of each class. 6. The name and post-office address of each of the incorporators and a statement of the number of shares subscribed by each, which shall not be less than one, and the class of shares for which each subscribes. Triplicate originals of the articles of incorporation shall be delivered to the Secretary of State, and if he finds that they conform to law he shall put an endorsement of his approval on each set and when all taxes, fees and charges have been paid as required by law, he shall file one of such sets in his office and record the same and shall issue and record a certificate of incorpora tion. One of the sets of articles of incorporation shall then be filed for record in the office of the County Recorder of the County in which the registered office of the corporation is situated, and the other shall be retained by the corporation. The articles may provide for the election of one-third of its directors annually. Railroad, wagon road, telegraph and telephone corporations must state also in their articles: 1. The kind of road, telegraph or telephone line intended to be con structed. 2. The estimated length of the road or line. 3. They may provide in their articles the number of directors which shall constitute a quorum for the transaction of business, the decision of the majority of such quorum to be a valid act. 4. Whether meetings of the board shall be held within or without the State. 5. Whether stockholders shall be individually liable for debts of corporation. Railroad corpo rations must have subscribed, before filing articles, $1,000 per mile; wagon road corporations, $300 per mile; telegraph corporations, $100 per mile, and the articles must be verified by affidavit of president, secretary, or treasurer named in articles, that such stock has been subscribed. All corporations, except insurance, non-production min ing companies, co-operative telephone and irrigation companies, must pay between July 1 and September 1 of each year, a license fee based on the amount of authorized capital stock, varying from $10 to $150; a failure to make payment by September 1 entails a penalty of $10, and a failure to make payment by November 30 entails a loss of charter for domestic corporations and a loss of the right to do business within the State for foreign corporations. Between July 1 and September 1, all corporations must make an annual report. Corporations may be reinstated by paying all license taxes that have accrued and a penalty of $10 for each year they have failed to file their annual statement or failed to pay their annual license fee Chapter 262, Laws 1929, p. 545, styled the “Business Corporation Act," follows very closely the Uniform Business Corporation Act drafted by the National Conference of Commissioners on Uniform Laws. Corporation, Foreign. Foreign corporations desiring to do busi ness in this State, may have all the rights and privileges of like domes tic corporations, by filing with the secretary of state, a certified copy of the articles of incorporation, and in the office of the county recorder of the county where the principal place of business of such corporation is to be conducted, a copy of their articles of incorporation duly certified by the secretary of state of this State, and the designation of some per son residing in the county in which such principal place of business is to be located upon whom process issued by authority of or under any law of this State may be served. The original designation of agent must be filed with the secretary of state and a copy certified by the secretary of state must be filed in the office of the County Recorder in which its principal place of business is located in this State. Courts. Terms and Jurisdiction. The judge of the district court of each of the judicial districts of the State must annually fix the time for holding the district court in the several counties of his dis trict: and he may hold such special terms as he deems proper and necessary. District courts have original jurisdiction in all civil cases. Probate courts are held in each county continuously, and have juris diction up to $500, in civil cases and concurrent jurisdiction with Justice’s courts in all criminal cases. Justices’ jurisdiction, $300 Curtesy does not exist. Days of Grace abolished by statute. Depositions may be taken before any judge. Justice of the peace, notary public, or commissioner appointed by the Court, upon notice 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. Depositions shall not be taken before any person or the kin of any person interested in the action. Descent and Distribution of Intestate Estates. If a person dies intestate, surviving spouse takes ail 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. (See Workmen’s Compensation.) Executions issue at any time within five years after judgment. The only stay is by appeal, with supersedeas bond. One year allowed for redemption from execution and foreclosure sale. Exemptions. Homestead, not exceeding $5,000, if declaration of homestead is duly acknowledged and recorded; office furniture and library, $200; necessary household and kitchen furniture not https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1851 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 members of a 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 Oo. 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. Addi tional powers of trust companies, see Chap. 189, Laws 1929, p. 355. 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 acauire with the proceeds of her separate property, shall remain her sole and separate property, to the same extent and with the same effect as the property of a hus band similarly acquired. The wife has the management, control, and absolute power of disposition of her separate property, to the same extent and with like effect as a married man may have in relation to his real and personal property. The separate property of the wife is not liable for the debts of her husband, but is liable for her own debts contracted before or after marriage. There is no estate by courtesy or in dower. Marriage settlements are provided for, and when properly executed and recorded may vary the statute governing the relations of husband and wife concerning property rights. Minors may execute valid marriage settlements Interest. Where there is no express contract in writing fixing a definite rate of interest, the rate is 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. Chap. 51, Laws 1929, p. 70, provides for filing transcript of judgment of U. S. Court with Clerk of District Court in any county in the State in order to make it a lien on real property. Liens, Mechanics’. Every person performing labor upon or fur nishing materials used in the construction or repair of any mining claim, building, or other improvement, has a 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. Lieu 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. Revivor: by acknowledgment of debt in writing or part payment of principal or interest. Action against a director or a shareholder of a corporation for illegal dividend must be brought within two years from the date of payment. Chap. 262, Laws 1929. p. 562. 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. Official patent survey of lode or placer claim by U. S. Mineral Surveyor is labor performed upon and for the benefit of, said claim. Chap. 194, Laws 1929, p. 362. 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. Lien of mortgage expires on real property after expiration of ten years from maturity of the obligation secured. Chap. 56, Laws 1929, p. 83. 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 1852 BANKING AND COMMERCIAL LAWS—ILLINOIS 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 or 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 bondwith sureties required to obtain immediate possession. 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. ciation. Uniform sales Act recommended by American Bar Asso 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 any 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, 3S 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 the surviving spouse, his, her, or their children, the grand-children or parents of either spouse, or one or more of such persons, but not to exceed one-fourth to a parent or parents of either spouse, unless limited to an estate for life or less, and any part of the decedent’s share of the community property in excess of the unencumbered appraised value of $25,000 may be disposed of as the testator sees fit. Workingmen’s Compensation Act. The Workmen’s Compen sation Act of this state is based upon the Act recommended by the National Conference of Commissioners on Uniform State Law. (Chap. 236, Compiled Statutes, 1919, as amended.) The law pro vides compensation for a workman for personal injury by accident arising out of and in the course of his employment. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF ILLINOIS RELATING TO BANKING AND COMMERCIAL USAGES Revised by Balford Quintin Shields Attorney at Law 77 W. Washington St., 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, cierk 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 subseauent term. All claims not exhibited within one year from granting of administration are barred, except where newly discovered assets are found. Claims are classified as follows: 1. Funeral expenses and cost of administration. 2. Widow’s or children's award. 3. Expenses of last illness, including physician’s bill, and demands due common laborers or household servants of deceased for labor. 4. Debts due common-school or township funds. 5. Trust funds. 6. All other debts. Claims have priority of payment in the above order. Affidavits. Within this State oaths and affirmations may be administered by any judge, justice of the peace, master in chancery, clerk of a court, police magistrate, or notary public, in their respective jurisdictions. Yvitbout 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 Ball. 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. Aviation. Persons operating aircraft within this state are required to have a license issued by Secretary of Commerce of United States and in conformance with act to regulate aviation. 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 BANKING AND COMMERCIAL LAWS—ILLINOIS 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 fuil 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 Dank 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 directors elect one of their number President, appoint the necessary Officers and employes, fix their salaries and make by-laws. Each director shall file with the State Auditor an affidavit that he will faithfully perform the duties of his office in accordance with law; that he is the owner in his own right, of ten shares of the stock of the bank, free from incumbrance. The directors must cause suitable books to be kept and file with the Auditor a list of stockholders and a copy of any other records the Auditor may require. Unless 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 o,. 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 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 capita! 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 agent,s 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1853 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, uniass 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 iu 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 od 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, be is subject to fine and imprisonment, aud iiable 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 the 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 determine without regard to or restrictions under any usury law of this State 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, possessious, 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 powera of the corporation. They may hold meetings and transact business outside of this State. 1854 BANKING AND COMMERCIAL LAWS—ILLINOIS 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 have 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. Director's 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 holding the proxv. 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 ays the same fees upon the amount of its capital stock represented y business transacted and tangible property in Illinois as similar domestic corporations pay upon incorporation. If the stock of a foreign corporation 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 bv 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 annuallv; 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 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 • surety business. Courts. Supreme court (seven judges); four appellate courts (intermediate court of appeals, three judges each); circuit courts (in Cook County also superior court of equal jurisdiction); criminal courts; county courts (which also exercise probate jurisdiction in counties having less than 70,000); probate courts (in counties having over 70.000); municipal courts (Chicago has a municipal court with a chief justice and thirty-six associate judges and special practice) • and. justice courts. Days of Grace are abolished. (See Negotiable Instruments.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Deeds conveying land should be signed, sealed, and acknowledged by grantor. Scrawl seal is sufficient. No subscribing witnesses artrequired. 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 where the real estate is situated: until so recorded they are void as to creditors and subsequent purchasers without notice. (See Land Registration.) Depositions. In chancery cases if the witness resides in the county, depositions may be taken on five days’ notice; otherwise on ten days' notice and one day in addition for every fifty miles. At law, on like ten days’ notice, where the witness resides in another county or is about to depart from the state. Where the witness resides out of the county or state, the deposition may be taken before a notary public or commissioner on a commission issued on ten days notice, either on written or oral interrogatories; 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, both real and personal, of residents and nonresident proprietors in this State dying intestate, or whose estates or any part thereof shall be deemed and taken as intestate estate, after all just debts and claims against such estate are fully paid, shall descend to and be distributed in manner following, to wit: 1. To his or her children and their descend ants, in equal parts; the descendants of the deceased child or grand child taking the share of their deceased parents in equal parts among them. 2. When there is no child of the intestate, nor descendant of such child, and no widow or surviving husband, then to the parents, brothers and sisters of the deceased and their descendants, in equal parts among them, allowing to each of the parents, if living, a child’s part or to the survivor of them if one be dead, a double portion; and if there is no parent living, then to the brothers and sisters of the intestate, and their descendants. 3a. When there is a widow or surviving husband and also parents, brothers and sisters of the deceased and their descendants but no child or children, or descend ants of a child or children of the intestate, then (after the payment of all just debts) one-half of the real estate and the whole of the personal estate shall descend to such widow or surviving husband as an absolute estate forever and the other half of the real estate shall descend to the parents, brothers and sisters of the deceased and their descendants in equal parts among them, allowing to each of the parents, if living, a child's part to the survivor of them, if one be dead a double portion; and if there is no parent living, then to the brothers and sisters of the intestate and their descendants. 3b. When there is a widow or surviving husband and no child or children or descendants of a child or children of the intestate and no parents, brothers or sisters of the deceased and their descendants, then after the payment of all just debts, the entire estate, real and personal, shall descend to the surviving widow or husband outright. 4. When there is a widow or a surviving husband and also a child or children or descendants of such child or children of the intestate, the widow or surviving husband shall receive as his or her absolute personal estate, one-third of all the personal estate of the intestate; and he or she shall also receive as his or her absolute estate, in lieu of dower therein, one-third of each parcel of real estate of which the intestate died seized and in which such widow or surviving husband shall waive his or her right of dower. 5. If there is no child of the intestate or descendant of such child, and no parent, brother or sister, or descend ant of such parent, brother or sister, and no widow or surviving husband, then such estate shall descend in equal parts to the next of kin to the intestate in equal degree (computing by the rules of Civil Law), and there shall be no representation among collaterals, except with the descendants of brothers and sisters of the intestate; and in no case shall there be any distinction between the kindred of the whole and the half blood. 6. If any intestate leaves a widow or sur viving husband and no kindred, his or her estate shall descend to such widow or surviving husband. 7. If the intestate leaves no kindred, and no widow or husband, his or her estate shall escheat to and vest in the county in which said real or personal estate, or the greater portion thereof, is situated. (See Dower and Curtesy.) Dower. A surviving husband has dower (i. e., life interest in a third part of all 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 waged of an employee being the heud 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 one year. 5. Any contract for the sale of lands, or any interest therein for a longer term than one year. 3. Express trusts relating to real estate. " a contract to sell or a sale of any goods or cnoses In action of the value of five hundred dollars or upwards is not enforcible Dy 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.) BANKING AND COMMERCIAL LAWS—ILLINOIS 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 Mondays in November in eveu 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. Justice of Peace has jurisdictionin all claims under 55500. Judgments and Executions. A judgment is a lien on real estate situated in the county where the judgment is rendered, for seven years from its date, and to become a lien on land registered under Torrens System must be filed with registrar of titles. If an execution is not issued on a judgment within one year the judgment ceases to be a lien. A transcript of a judgment in another county may be filed and thereupon becomes a lien upon real estate of the defendant in the county where filed, and execution may issue there under. An execution becomes a lien on personal property from the time it is delivered to the officer to be executed. All goods and chat tels, including and money stock in a corporation, may be levied on. Personal property may be sold under execution on ten days’ notice. A forthcoming bond may be given by the defendant to the officer. A third party claiming the property levied on may have a trial as to the right of property in the county court. Judgments may be confessed by a debtor or his authorized attorney without process in term time or vacation. Land Registration Torrens System in use in Cook County. 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 ilen upon horses, carriages, and harness for the keeping thereof. Garage keepers are entitled to liens on automobiles, parts and acces sories, for keeping, repairing, materials furnished thereto, and the expenses bestowed thereon at the request of the owner, or the person having the possession thereof. Agisters and persons keeping, yarding, 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. 1855 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 BUit 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 of securities are by consent of Illinois Securities Commission and are classified. (See Blue Sky Law.) Sales In Bulk. Sales of the major part or all of a stock in trade, chattels or fixtures not in the ordinary course of business, are fraudu lent and void as to creditors unless the buyer obtains from the seller an affidavit 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. 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. 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 year; after which time penalties are added. There is an Inheritance Tax 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. Limited Partnership. There are statutory provisions as to the formation of limited partnerships, but such partnerships are not common 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. 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 convey 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 wife may insure her husband's life. She may become surety for the husband. She may execute a will, if over eighteen years of age, at which age she attains majority. Mortgages. Real estate mortgages should be executed and ac knowledged the same as deeds. The wife must loin 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Warehouse Receipts. Is in force in Illinois. The Uniform Warehouse Receipts Law BANKING AND COMMERCIAL LAWS—INDIANA 1856 SYNOPSIS OF THE LAWS OF INDIANA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Vesey, Shoaff & Hoffman, Attorneys-at-Law First & Tri State Bldg., Fort Wayne, Ind. (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 distinction between actions at law and suits in equity, and the forms of each, are abolished. There is but one form of action for the enforcement of private rights and redress of private wrongs, denominated by the Code a civil action. Every action must be prosecuted in the name of the real party in interest, except in suits by an executor, administrator, guardian of an idiot or lunatic, trustee of an express trust, or person expressly authorized by statute, who needs not join with them the person for whom the action is prosecuted. All parties in interest must be joined as plaintiffs or defendants; and when a complete determination of the controversy can not be had without the presence of other parties, who have not been made plaintiffs or defendants, the court must cause them to be joined. Commencement. A civil action is commenced by filing in the office of the clerk a complaint and causing summons to issue thereon; and the action is deemed commenced from the time of issuing the summons, or, if publication be made, from the time of the first pub lication. Joinder of Causes. The plaintiff may unite several causes of action in the same complaint, but they must fall within the term of the statute, and causes of actions so joined must affect all the parties to the action, must not require different places of trial and must be separately stated and numbered. Severance. Where causes of action are improperly joined the court is required by statute to cause as many separate actions to be docketed as there are causes improperly joined. Consolidation. The courts have inherent power to consolidate causes before them in the absence of statute, when necessary to the ends of justice and to avoid a multiplicity of suits. Joint Debtors. In an action against defendants jointly indebted on contract, plaintiff may proceed against such defendant or de fendants as are served. A judgment may be enforced against joint property of all and the separate property of those served. Where judgment is recovered against one or more persons jointly liable on contract, but judgment is rendered against only part of the persons jointly liable for the reason that others were not summoned or did not appear, plaintiff may proceed against those not summoned and not appearing, in the same manner as if they were alone liable, but the complaint must allege the facts aforesaid. Survival. A cause of action for breach of promise to marry, or arising out of an injury to the person, dies with the person of either party, with the following exceptions: (1) Statutory action for his injury causing death; (2) action for seduction; (3) action for false imprisonment; (4) action for malicious prosecution. All other causes of action survive. Administration of Estates. Except in Marion and Allen Counties, which have a separate probate court, the circuit court has exclusive pro bate 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: 1. 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 Hen, 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 prior to the final settlement was insane, an infant, or out of the State,—suit to be brought within one year of removal of disability, and if upon claim of non-resident creditor, within two years of th« 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. Allens. Resident aliens who have declared their intention to become citizens, may acquire, hold, and enjoy real estate, and may convey, devise, mortgage, or otherwise encumber the same, in like manner and with the same effect as citizens of this State. Aliens, whether resident or not, may own real estate not exceeding 320 acres lands in excess of that amount they must convey within five years or suffer escheat as to such excess. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Assignments and Insolvency. Any debtor may make a general assignment of all property in trust for benefit of all bona fide creditors This trust is administered under the direction of the county court. Dividends are allowed on all claims allowed by the trustee or court. Debtor is not discharged from his liabilities. Attachment may issue against the property of a non-resident or foreign corporation, and against any who may have disposed of, or be about to dispose of, property, to cheat, hinder or delay creditors, or against a creditor who conceals himself so that summons can not be served upon him. An affidavit is required, and a bond to pay dam ages if the proceedings be wrongful or oppressive. Creditors who file under the original attachment, before final judgment, are required to furnish a like affidavit and bond, and all share pro rata in the proceeds of the attached property. The wages of a resident house holder, not exceeding one month at any one time, are exempt so long as debtor remains in such employment. It is a misdemeanor to send claims out of the State to be collected by attachment, or garnishment, when creditor, debtor, and person owing for earnings intended to be reached are all within the jurisdiction of the court of this State. The collection of claims so sent may be enjoined. 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 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. Banksilcan 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, real 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 ft thorough examination into all the affairs of the bank, and, in doing bo, 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 bo 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 delavs 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- BANKING AND COMMERCIAL LAWS—INDIANA 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 sucli breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with the actual knowledge that the fiduciary is committing a breach of his obligation in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation in drawing or delivering the check. If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation in drawing such check, or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obliga tion in drawing or delivering the check. If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and en dorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation; and the bank is authorized to pay the amount of the deposit or any part there of upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith. When a deposit is made in a bank in the name of two 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. https://fraser.stlouisfed.org 116 Federal Reserve Bank of St. Louis 1857 (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. fil Negotiable promissory notes or commercial paper. (j) Capital stock Issued by a corporation organized under the law* 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 stockholder* 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: Name of issuer. Brief description of the securities including the amount of the issue. Amount of securities to be offered in the state. Brief statement of the facts which show that the securities fal1 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 ars 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 1858 BANKING AND COMMERCIAL LAWS—INDIANA 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 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, all conveyances and devises of lands, or of any interest therein, made to two or more persons, shall be construed to create estates in com mon, and not in joint tenancy, unless it shall be expressed therein that the grantees or devisees shall hold the same in joint tenancy and to the survivor of them, or it shall manifestly appear from tenor of instrument, that it was intended to create an estate in joint tenancy. A deea or release or quit-claim shah 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 leave* heirs and devisees answerable thereon only to the extent of property descended or devised to them. Any conveyance of land worded— ‘A. B. conveys and warrants to O. D. (here describe the premises) for the sum of (here insert the consideration),” or “A. B. quit-claims to C. D. (here describe the premises) for the sum ol (here insert the consideration),”—the same being dated, and duly signed and acknowl edged by the grantor,—shall, in the one case, be a conveyance in fee simple to the grantee, his heirs and assigns, with covenant from the rantor for himself and his heirs and personal representatives that o is lawfully seized of the premises, has good right to convey the same, and guarantees the quiet possession thereof, that the same are free from all incumbrances, and that he will warrant and defend the title of the same against all lawful claims; and shall, in the other case, be deemed to be a good and sufficient conveyance in quit-claim to the grantee, his heirs and assigns. Any mortgage of lands worded —“A. B. mortgages and warrants to 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.) g 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. Corporations. Three or more persons may form a corporation for any lawful purpose by filing articles of association with the Secretary of State and the Recorder of the County. Special charters are neces sary for banks, building and loan associations, insurance, security, railroad, telegraph, telephone, turn-pike company, etc. The liability of stockholders varies. In banking corporations the stockholder is responsible not only for his original subscription, but for an amount equal thereto. In all other corporations he is liable for the subscription price of his stock. A corporation act was passed by the legislature in 1929, which gives great liberality. A corporation may change its powers, increase or decrease its capital stock, change the par value of any class or classes of shares of its capital stock with par value, change the number of its outstanding shares of any class of stock into different numbers of shares of said class, increase its Board of Directors, fill vacancies therein, hold its meetings within or without the state, transfer its stock free of taxes and must report but once each year to the Secretary of State. This report is merely a formal one giving amounts of stock outstanding, list of officers, etc. The corporation is assessed for local taxes upon the value of its holdings within the State of Indiana and only upon such holdings. Foreign corporations, or their agents, before entering upon the duties of their agency in this State shall deposit in the Clerk’s office of the County where they propose doing business the power of attorney and appointment under which they act. They shall also file with the Secretary of State an application to do business in the State of Indiana, naming a resident agent therein. Foreign corporations shall pay a fee of Twenty-five Dollars on the first Ten Thousand Dollars of assets in Indiana and Ten ($10.00) Dollars for each additional One Thousand Dollars. It must file annual reports the same as the local corporation. Courts anil 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, except in Allen County which has Allen superior court No. 2, probate exclusive and concurrent juris diction in civil matters, also appellate jurisdiction in appeals from Justices of Peace, Mayors of cities and Board of County Commissioners. Superior Courts are established in many counties with original con current 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 town ships, jurisdiction in civil actions for $200.00 or less, in the township, also jurisdiction in petty criminal causes. Party may confess judg ment 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis court and has no original jurisdiction except in a few specified cases. Appellate Court has final appellate jurisdiction in many cases, no original jurisdiction. In some specified classes of cases defeated party may have cause transferred to Supreme Court. 'Both Supreme and Appellate Courts sit only in Indianapolis. Municipal Court, Marion County (Indianapolis), four judges. Original jurisdiction concurrent with Superior and Circuit Courts in all civil cases founded on contract or tort in which debt or damage or value of property sought to be removed does not exceed $500. Jurisdiction irrespective of value of property in possessory actions between landlord and tenant. Criminal jurisdiction as is now vested in city courts in cities of first class. Jurisdiction in cases involving violation of ordinances of cities and towns or other municipalities. Courts of record within their respective jurisdictions shall have power to declare rights, status, and other legal relations whether or not further relief is or could be claimed. Any person interested under a deed, will, written contract or other writings constituting a contract, or whose rights, status or other legal relations are affected by a statute, municipal ordinance, contract or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration of rights, status or other legal relations thereunder. A contract may be construed either before or after there has been a breach thereof. Any person interested as or through an executor, administrator, trustee, guardian or other fiduciary, creditor, devisee, legatee, heir, next of kin, or cestui que trust, in the administration of a trust, or of the estate of a decedent, infant, lunatic, or insolvent, may have a declaration of rights or legal relations in respect thereto. The court may refuse to render or enter a declaratory judgment or decree where such judgment or decree, if rendered or entered, would not terminate the uncertainty or controversy giving rise to the pro ceeding. All orders, judgments and decrees under this act may be reviewed as other orders, judgments and decrees. (Act March 5, 1927, in effect May 16, 1927). Days of Grace are no longer recognized. Depositions. Depositions may be taken anywhere in the United States without & 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; 1. That the deponent was sworn according to law. 2. By whom the depo sition was written, and if written by deponent or some disinterested person, that it was written in the presence and under the direction of the officer 3. Whether the adverse party attended. 4. The time and place of taking, and the officer shall sign and attest the certificate, and seal the same, if he have a seal of office. If he have no seal, his certificate shall be authenticated by the certificate and seal of the clerk or prothonotary or any court of record of the county in which certificate shall be authenticated by the certificate and seal of the clerk or prothonotary of any court of record of the county in which the officer exercises the duties of his office. The officer taking the deposition shall seal the same in a sufficient envelope and himself, post, or express, or deliver the same to the clerk, of the court in which the action is pending, endorsing on the envelope the names of the parties and of the court and of the witnesses whose depositions are enclosed. Adjournments may be had from day to day after the deposition has been begun, and for longer periods, upon written con sent of the parties, which written consent must be attached to the deposition. Adjournments should be noted at the place in the deposition when they occur. A narrative form may be used. A witness identifying a written instrument should attach it to his deposition, making it a part of his answer. Descent. The real and personal property of any intestate shall descend to his or her children equally; and posthumous children Inherit equally with those born before the death of the ancestor. Childreu of deceased children take the share which would hav« descended to the father or mother and grandchildren, and more remote descendants, and other relatives, lineal and collateral. Inherit by the same rule, excepting that if the heirs are all grandchildren they inherit equally. Where there are no heirs as aforesaid, onehalf of the estate goes to the father and mother as joint tenants, or to the survivor, and the other half to the brothers and sisters, and to the descendants of such as are dead, as tenants in common. If there be neither father nor mother, the brothers and sisters, and the other descendants, take the estate as tenants in common; or. per contra, the father and mother as joint tenants of the survivor. Kindred of the half-blood inherit equally with those of the wholeblood in property purchased by the ancestor; otherwise, as to property acquired by gift, devise, or descent. Illegitimate children inherit from the mother same as if they were legitimate, and vice versa Tenancy by the curtesy ana dower are abolished, ana widows take one-third of the real estate in fee simple, unless the property is worth over $10,000. in which case, as against creditors, she takes one-fourth only; and where the real estate is worth over $20,000. one-fifth only as against creditors, but as against other heirs she takes one-third In fee simple, regardless of value, except where there is but one child, in which case each inherits one-half. A second or subsequent wife, however takes only a life estate in her husband’s lauds, if there be a child or children by a previous marriage, and none by such widow. Other special provisions of the statute are too extensive to set out. The estate of a person dying intestate without kindred capable of inheriting will escheat to the State for the support of the common schools. Dower. (See Married Women.) Executions may issue at any time within ten years after judg ment and are returnable in 180 days. From a court of record may Issue to any county in the State. Are a lien on personal property within the county from the time they are placed in 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 musi 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. BANKING AND COMMERCIAL LAWS—INDIANA 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. If at the time an order of attachment issues, or at any time before or afterwards, the plaintiff, or other person in his behalf, shall file with the clerk an affidavit that he has good reason to believe that any person named has property of the defendant in his possession or under his control, which the sheriff cannot attach by virtue of such order; or that he is indebted to the defendant, or has control or agency of any money, property, credits or effects; or that defendant has any shares or interest in the stock of any association or corporation, the clerk shall issue a summons to such person, corpora tion, or association, to appear and answer as garnishee in the action. From the service of summons the garnishee is accountable to plaintiff for the money, property, etc., in his hands, or due to defendant. If the summons issues before attachment, the affidavit must show some one of the causes authorizing attachment. The garnishee is required to furnish the sheriff, within five days after service, a certificate of the property, etc., of defendant in his hands or due to him, to be returned with the summons. If he fails or refuses the court may require him to appear and be examined under oath, or proceed against him on default to judgment. If it appear by affidavit that a garnishee is about to abscond before judgment can be had, an order of arrest may issue and he be held to special bail. Return of “No property found’’ on an order of attachment does not affect the proceedings against the garnishee. lie may, before judgment against the de fendant, by delivery of all the defendant's property in his possession to the sheriff, or payment of all money due him to the sheriff, or into court, discharge himself from the suit without costs, and from all liability to the defendant for the money or property so paid or de livered, not exceeding the plaintiff’s claim. Clerks of the circuit courts, sheriffs, justices of the peace, constables and all other officers who may collect money by virtue of their office, executors, administrators, guardians, and trustees, are subject to garnishment as other persons. The wages of all householders in the employ of any person or corporation are exempt from garnishment and proceedings supple mental to execution, in the hands of the employer, so long as the employee remains in such employment, not exceeding twenty-five dollars at any one time, and the employee is allowed no other exemption as against garnishment. (Burns’ Ann. S. 1926, § 985.) Applies to householders in other jurisdictions. Resident householders still have six hundred dollars exemption. (Pomeroy v. Beach, 143 Ind. 511.) See also 15, 47, 50, 71, 114. Holidays. (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, aud in such case it is not lawful to contract for more than 8 per cent. When a greater rate is contracted for. the contract is void as to all interest in excess of 6 per cent, is usurious and illegal, and the excess may be recouped by the debtor whenever It has been reserved or paid before the bringing of the suit. Interest on judgments runs from the date of the verdict or finding, at the rate specified in the original contract, not exceeding 6 per cent, and if no contract has been made 6 per cent is allowed. Judgments of courts of record are a lien upon all real estate of defendant within the county for ten years. Judgment may be obtained at the first term of the court, after process has been served on debtor ten days prior to the first day thereof. Judgment in justice court becomes a lien on real estate of judgment defendant! rom time of filing a transcript in office of the clerk of circuit court. A certified copy of any judgment rendered by the District Court of the United States for district of Indiana may be filed with the county clerk. 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 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1859 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 bsr 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 tiling of complaints to enforce liens are required to lie 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 tor improvement of her separate real estate. She can make leases of real estate for terms of three years or less, and execute mortgages to secure purchase money, with out husband joining. She is bound by covenants of title in convey1 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 whole of personalty after payment of debts, and in all cases takes $500 without accounting, and may occupy the dwelling of forty acres of her husband’s land for a year, rent free. But the one-third of her real estate which the widow takes in fee, can not, upon her marrying again, be effectively conveyed or mortgaged by her, if there be a minor child or children, or their descendants, alive by the previous marriage. Real estate which husband and wife hold by title made to them as husband and wife. Is held as an estate by entirety; it cannot be taken for the debt of either; is not subject to the lien, of a judgment against either, except in case of the death of either or upon divorce granted, when the estate is destroyed and becomes subject to levy and sale; and a mortgage thereof by them both for a debt of the husband has no legal validity. Mortgages. (See Conveyances.) Negotiable Instruments 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 by 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 xaw 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 sneriff takes possession of the property, and if delivery bond is given on behalf of the defendant within twenty-four hours, the property is returned to him, otherwise the plaintiff may give bond and take the property: failing to do so it is returned to the defendant. The plaintiff has twenty-four hours In which to file bond. Justices of the peace have jurisdiction in replevin suits involving property worth $200 or less. Procedure is same before justice of the peace, except that the plaintiff must file bond in all such cases. Replevin may also be had without bond, by allowing defendant to retain possession of property pending suit. Suits. (See Actions.) Taxes. The general tax law of Indiana was revised and codified by the acts of 1919, p. 198. Personal property is listed for taxation between the first day of March and the 15th day of May of each year, with reference to the quantity held or owned on the first day of March in the year for which the property is required to be listed. Realty is listed and assessed by the township assessor. Assessment lists of personal property are filed with the township assessor. From the 1860 BANKING AND COMMERCIAL LAWS—IOWA assessment of the township assessor, an appeal may be taken to the county assessor and the county board of review. An appeal lies from the county board to the State Tax Board. Thereafter illegal taxes will be enjoined by the courts in accordance with the usual rules of law. Valuation. All property must be assessed and valued for taxation purposes at the true cash value thereof. (14034). Liens. Taxes attach as a lien on real estate on March 1 each year. The lien is perpetual and is not divested by any sale or transfer. The first half of taxes becomes delinquent if not paid on the first Monday in May of the succeeding year, and the second half on the first Monday of November following. (14288-95). Sales. If not paid by the first Monday of February following, the property, or so much thereof as may be necessary, will be sold for the payment of taxes and penalty. Sales of real estate for taxes are made on the second Monday in February, annually. (14300-10). Redemption. The property may be redeemed within 6 months by payment of the amount bid at the sale, with 10 per cent penalty; if redeemed after 6 months and within 12 months, the penalty is 15 per cent; after 12 months and within 2 years, 25 per cent; at the expiration of which time the purchaser is entitled to a deed, and no redemption may thereafter be made. But infajits and insane persons may redeem within 2 years after removal of tneir disability. A tax deed may be set aside if any substantial provision of the law has not been complied with, and redemptions are generally favored by the courts, even after a deed has issued. (14311-24). Exemptions. The property of the U. S. and of this state, and the property of any county, city, town or township is exempt from taxa tion. Generally, and under certain conditions, the following property is exempt from taxation: property used for educational, literary, scientific, religious, fraternal, benevolent, or charitable purposes, battle grounds, and other historic sites and public libraries. Ceme teries incorporated under the law of this state, not for pecuniary profit, and certain funds for the care and maintenance of cemeteries, are exempt. Members of the state militia and every soldier and sailor in the service of the U. S. are exempt from paying poll or road tax. All bonds, notes and other evidences of indebtedness issued by the state or by municipal corporations within the state upon which the state or said municipal corporation pays interest are exempt. All bonds authorized by any county or township of the state for the purpose of building or constructing any free gravel or other improved roads are exempt, provided said bonds do not bear a greater rate of interest than 5 per cent. All bonds and other evidences of indebtedness hereafter issued by or in the name of any municipality or other political or civil subdivision of this state, or by or in the name of any taxing district in this state, for the purpose of paying the cost of improvement or maintenance of streets, highways, etc., and other improvements of public benefit, and which bonds, or other evidence of indebtedness are payable from special assessments or special taxes, are exempt from taxation. (14037). Inheritance Tax. (1929, c. 65). Tax is imposed, subject to conditions and limitations, on all transfers in trust or otherwise of the following property or interests therein or income therefrom: When transfer is from a resident of state, real property situated in state, all tangible personal property except such as has an actual situs without state and all intangible personal property wherever situated; when transfer is from a nonresident, all real and personal property within jurisdiction of state. , The following transfers are taxable: By will; by statute regulating descent; made in contemplation of death of transferor; made by gift or grant to take effect in possession or enjoyment after death of transferor; made in payment of debt created by antenuptial agree ment by its terms payable by will or contract at or after death. If transfer is for a valuable consideration and love and affection, no tax is imposed on the value up to t he money value of the consideration received by the transferor, but the excess is taxed. Where property is held in joint names of 2 or more persons as joint tenants or other wise, or is deposited in banks, etc., in joint names and payable to survivor or survivors, exercise of right of survivor or survivors is a taxable transfer, and portion represented by dividing total property by number of joint owners is taxed, except such as may have belonged originally to survivor or survivors and never have belonged to decedent. Proceeds of insurance on decedent’s life, payable to his estate, are taxed; but insurance payable to some other person and not a part of decedent’s estate is not taxed. A transfer by deed of trust (before or after enactment of statute) wherein trustor reserved to himself any income or interest, or reserved powers of revocation, alteration or amendment, on exercise of which property would revest in him, is taxable on his death to extent of value of property subject to such powers and as to which such powers have not been exercised. Prop erty transferred to executors or trustees in lieu of commissions, allow ances or fees, is taxable on excess over commissions, etc., which would be payable in absence of any such transfer. Rates of tax and exemptions vary according to relationship of beneficiary and amount of transfer, as follows: Class A. Husband, wife, lineal ancestor or descendant, legally adopted child and child to whom transferor stood in acknowledged relation of parent and child for not less than 10 years prior to transfer. Exemptions: Wife, $25,000; minor child, $10,000; other members of class, $5,000. Rates: 1 per cent up to $50,000; 2 per cent on excess to $100,000; 3 per cent on excess to $200,000; 4 per cent on excess to $300,000; 5 per cent on excess to $500,000; 6 per cent on excess to $700,000; 7 per cent on excess to $1,000,000; 8 per cent on excess to $1,500,000; 10 per cent on excess. Class B. Brother, sister or descendant of either, son-in-law and daughter-in-law. Exemption, $500. Rates: 5 per cent up to $100,000; 8 per cent on excess to $200,000; 10 per cent on excess to $500,000; 12 per cent on excess to $1,000,000; 15 per cent on excess. Class C. All others. Exemptions, $100. Rates: 7 per cent up to $100,000; 10 per cent on excess to $200,000; 12 per cent on excess to $500,000; 15 per cent on excess to $1,000,000; 20 per cent on excess. Rates above stated apply to entire transfer in excess of exemption. Following transfers are entirely exempt: To U. S. .any state or territory or political subdivision thereof, or any corporation, in stitution, association or trust formed for charitable, educational or religious purposes, provided property is to be used exclusively for such purposes in Indiana. Tax is imposed on full, fair cash value of property, subject to exemptions above stated in case of transfers by will or intestate laws. Tax is payable at time of transfer and is a lien against the land Trustees, executors or administrators of estates are personally liable for the tax. Tax is determined by any court having probate jurisdiction, on appraisement by county assessor, or by inheritance tax appraiser in counties of 200,000 or more population. Provision is made for notice of appraisement, hearing upon report and rehearing to persons in terested or State Board of Tax Commissioners. The Board may move for a rehearing within 2 years after entry of delivery by the court if they believe appraisement was fraudulently, collusively, or erroneously made. Tax on resident decedent’s estate is payable to treasurer of county where court having jurisdiction is situated. If paid within 1 year after accrual, deduction of 5 per cent is allowed; if not paid within 18 months, interest at 10 per cent from date of accrual is assessed. Determination of tax on taxable transfers from nonresidents is under exclusive jurisdiction of Tax Commissioners. Appeal from appraisement lies to Marion county circuit court. Tax is payable to https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Board of Tax Commissioners. Taxes erroneously assessed may be refunded on order of State Auditor and approval of Tax Com missioners. Person or institution permitting stock or personal prop erty or securities to be transferred without consent of Tax Com missioners is liable for the tax and subject to penalty of not more than $1,000 in addition. In case of contingent or expectant estate where taxes are not presently payable, Tax Commissioners and Attorney General may enter into agreement with trustees, executors or administrators to compound taxes and grant discharges therefor. If agreement cannot be reached, tax is held in abeyance and trustees, executors or admin istrators must give bond for prompt payment. State Board of Tax Commissioners is charged with enforcement of the act and will provide forms required. 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 persona) estate, in his actual possession, and his wages, by a nuncupative will. Any person may contest the validity of any will or resist the probate thereof at any time within one year after the will has been offered for probate. Upon the death of any testator any person interested in any part of the estate specified in the will may have 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. SYNOPSIS OF THE LAWS OF IOWA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Maxwell & Ryan, Attorneys at Law. Suite 912 Valley National Bank Bldg., Des Moines, Iowa (See Card in Attorneys’ List.) Accounts. In all instances where any sum of money is claimed on an account, the same must be itemized. If suit is brought on such an account the items thereof must be consecutively numbered and the account must be sworn to. Such a sworn statement of account together with a petition which has been likewise sworn to, constitutes a prima facie case enabling the creditor to take judgment thereon in the event the debtor is unable to disprove the items. Actions. The common law forms of pleading are not used, although the common law forms the basis of procedure. Pleading, practice, and procedure are statutory, and accord, in the main, with what is known as the reformed, or code procedure. Administration of Estates. When an executor is not appointed by will administration shall be granted to any suitable person or persons on the request and application of: 1. The surviving spouse. 2. The next of kin. 3. Creditors. 4. Any other person showing good grounds therefor. To each of the above classes in succession, a period of 20 days, commencing with the burial of the deceased, is allowed within which to apply for administration. A special administrator may be appointed to preserve property if for any reason general administration cannot be immediately granted. Administration shall not be originally granted after 5 years from the death of the decedent. Claims against the estate of a deceased person are payable in the following order: 1. Charges of the last sickness and funeral of the deceased. 2. Any allowance made by the court for the maintenance of the widow and minor children. 3. Debts entitled to preference under the laws of the U. S. 4. Public rate and taxes. 5. Claims filed within 6 months after the first publication or posting of the notice given by the executors or administrators of their appointment. In this class, claims for labor performed within the next preceding 90 days of the death of decedent are preferred. 6. All other debts. 7. Legacies and the distributive shares, if any. All claims of the sixth of the above classes not filed and allowed, or if filed and notice thereof not served within 12 months from the giving of the notice of appointment are barred, except as to actions against decedent pending in the district or supreme court at the time of his death or unless peculiar circumstances entitle the claimant to equitable relief. Acknowledgments. All instruments affecting real estate, includ ing mortgages, deeds of trust, powers of attorney relating thereto!, and leases for more than one year, must be acknowledged or the execution thereof proved and the instruments must be recorded in the proper office, in order to affect third parties. The same is also true as to bills of sale of personal property. Conditional sales contracts or leases must be signed by both vendor and vendee, or lessor and lessee and acknowledged by one of them, and must be filed the same as chattel mortgages (see Chattel Mortgages). Articles of incorporation must also be acknowledged and recorded. Forms of acknowledgments are prescribed by statute, and must be substantially as follows: 1. In the case of natural persons acting in their own right: State of.............................. I sg County of..........................J On this day........... of............ A. D. 19.., before me................................ (Insert title of acknowledging officer)................ to me known to be the person. . named in and who executed the foregoing instrument, and acknowledged that........... executed the same as............ voluntary act and deed. Notary Public in and for said County BANKING AND COMMERCIAL LAWS—IOWA 2. In the case of natural persons acting by attorney: State of...............................\ gs County of.......................... J On this........... day of.............. A. D. 19. before me.............................. (Insert title of acknowledging officer)............. personally appeared.... to me known to be the person who executed the foregoing instrument in behalf of................................and acknowledged that he executed the same as the voluntary act and deed of said........................................... Notary Public in and for said County 3. In the case of corporations or joint stock associations: State of. . j-ss. County of On this............day of............ A. D., 19... before me, a.... (Insert dtle of acknowledging officer)............. in and for said county, person ally appeared.................................... to me personally known, who being by me duly (sworn or affirmed) did say that he is........... (Insert title of executing officer)........... of said (Corporation or association)............ that (the seal affixed to said instrument is the seal of said) or (no seal has been procured by the said) (corporation or association) and that said instrument was signed and sealed on behalf of the said (corporation or association) by authority of its board of (directors or trustees) and the said........................................... acknowledged the execu tion of said instrument to be the voluntary act and deed of said (corporation or association) by it voluntarily executed. Notary public in and for said County (In all cases add signature and title of the officer taking the ac knowledgment, and strike from between the parentheses the word or clause not used, as the case may be.) Affidavits. Affidavits may be taken before any person authorized to administer oaths in the state where taken. If taken without the State of Iowa, the official character of the officer administering the oath should be evidenced in the same wav as the official character of 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 aut hor ized to administer oaths, who may cause the person to come before him and make affidavit. This proceeding is statutory and must con form strictly to the statutes of Iowa. Affidavits for proving accounts and form: State of............................. County of.....................ss, I......................being first duly sworn, on oath depose and say that I am (a member of the firm of.................... and that said firm is) the owner of the account hereto attached, marked exhibit A, and made a part hereof, that the same is correct in all particulars and that the articles named therein were sold and delivered to said.....................at the prices and times therein named and agreed upon, and that said articles were reasonably of the value charged, and that the said account is due and unpaid. That there is no legal set 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. Allens. Non-resident aliens or corporations incorporated under the laws of any foreign country or corporations organized in this country, one-half of the stock of which is owned or controlled by non resident aliens are prohibited from acquiring title to or holding any real estate in Iowa, but the non-resident alien widow, heirs, or devisees of an alien or naturalized citizen may hold the same for twenty years, and if not sold within that time, escheats to the State. Aliens may acquire property of any kind within a city or town or lands not exceed ing 320 acres or stock in any corporation for pecuniary profit and may alienate or devise the same, but this law does not affect personal property. A lien holder may acquire title to the property embraced in such lien but real estate so acquired must be sold within ten years after title is perfected in an alien, otherwise it will escheat to the State. Arrest. No person can be imprisoned for debt on either mesne or final process, unless in case of fraud. Debtors, however, may be ordered to appear before a court of record wherein a judgment has been rendered, and if the debtor is about to leave the State, or conceal himself, he may be arrested and compelled to give bond to appear before the court for examination, and in the meantime, not dispose of his property. (See Supplementary Proceedings.) Assignments and Insolvency. General assignments not valid unless for benefit of all creditors, when assent of creditors is presumed. The debtor must annex to the instrument of assignment a sworn inventory and list of creditors: and such instrument must be acknowl edged and all of the papers recorded like a deed of real estate. The assignment vests in the assignee title to all property of the debtor. Assignee must give bonds, prepare a verified inventory and valuation, and notify creditors by mail to file claims within three months. All claims not filed within three months after notice published or within such extended time as the court grants, not exceeding nine months, including claims not yet due, can not be paid until all claims filed within said time are paid. An assignment does not discharge the debtor from his debts and liabilities, but only entitles creditors to share equally in his estate. All claims filed must be itemized and sworn to. Attachments. An attachment, auxiliary to the ordinary pro ceedings may be sued out at the commencement or during the progress of the proceeding if the petition is sworn to and states one or more of the following grounds: 1. That the defendant is a foreign corporation or acting as such. 2. That he is a nonresident of the state. 3. That he is about to remove his property out of the state without leaving sufficient remaining for the payment of his debts. 4. That he has disposed of his property in whole or in part, or is about to do so, with intent to defraud his creditors. 5. That he has absconded so that the ordinary process cannot be served upon him. 6. That he is about to remove permanently out of the county, or state, and has property therein not exempt from execution and that he refuses to pay or secure the plaintiff. 7. That he is about to remove his property or a part thereof out of the county with intent to defraud his creditors. 8. That he is about to convert his property or a part thereof into money for the purpose of placing it beyond the reach of his creditors. 9. That he has property or rights in action which he conceals. 10. That the debt is due for property obtained under false pretenses. Property of debtor may be attached for debt not yet due if his petition states one or more of following grounds: 1. That defendant is about to dispose of his property with intent to defraud his creditors. 2. That he is about to remove or has removed from the state, and refuses to secure the payment of the debt when it falls due, and which removal or contemplated removal was not known to the plaintiff at the time the debt was contracted. 3. That the defendant has dis posed of his property in whole or in part with intent to defraud his creditors. 4. That the debt was incurred for property obtained under false pretences. Special attachments are permitted in certain cases. On all above cases the plaintiff must file a bond in a penalty at least double the value of the property sought to be attached. Banks and Banking. Savings, State Banks and Trust Companies may be formed by not less than five persons of lawful age a majority of whom shall be citizens of this state. The minimum paid up capital depends upon the population of the city wherein the bank is located. $25,000 paid up capital is required for towns having a population of 3.000 or less. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1861 In cities and towns having a population from three thousand but not exceeding six thousand, $50,000 is the minimum. In cities having a population of 6,000 or over $100,000 is the minimum. At least three-fourths of the directors must be citizens of this state and all must be shareholders. No banking institution organized under the laws of this state shall declare or pay any dividend until it has first established a surplus of at least twenty per cent of its capital. Whenever such banking institution has created a surplus of twenty per cent, it shall credit to surplus from net earnings not less than 10 per cent thereof each year until a surplus of fifty per cent of the capital has been created. There after each such institution shall maintain a surplus equal to at least fifty per cent of its capital, and any reduction of said surplus shall be restored in the same manner as originally created as provided herein. Bank drafts and cashier’s checks are preferred claims against the assets of the bank issuing them. State banks, savings banks, and trust companies have a prior lien on their debtors’ shares of stock for all obligations to the bank subject, however, to loans against the stock which the bank has acknowledged by written notice. State and savings banks and trust companies have power when so authorized by their articles of incorporation, to act as assignee or trustee by deed and guardian, executor, or trustee by will or to be appointed receiver, assignee, guardian, administrator or other trustee by any court of record in this state: National banks may exercise the same powers when so authorized by any law of the United States. Any state, savings bank or trust company, may become a member of the Federal Reserve System. It is unlawful for any officer or employee of any bank or trust company to oiler for sale or promote the sale of any stock, real estate, life insurance, fire insurance, bonds or other securities, unless the sale of the same shall have been sanctioned and approved by the Board of Directors and such approval entered of record. It is a misdemeanor for any officer or employee to violate the above. The president and cashier of every savings bank and every state bank shall cause to be kept at all times, a full and correct list of the names and residences of the officers, directors, examining committee and all the stockholders of the bank. This list shall also show the number of shares held by each. Such lists shall be subject to the inspection of all the stockholders and creditors of the bank during business hours of every day in which business may be legally trans acted. The president and cashier shall verify by oath a copy of the list and send the same to the Superintendent of Banking within ten days after each annual meeting. And the Superintendent may, if he desires, require the president or cashier to furnish him with financial statements of the stockholders. In the event any state bank, savings bank or trust company holding a charter to transact business within the state fails to transact business or perform the duties imposed on it by the banking law, such charter may be cancelled on proper hearing by the District Court. No person shall be eligible as a director of any savings or state bank or trust company unless such person owns shares of stock in that bank as follows: (a) In banks whose capital is less than $30,000 he must hold at least $200 worth of stock at par value. (b) In banks having a capital of $30,000 or more he must hold and own at least $500 worth of stock at par value. No state bank, savings bank or trust company shall pay interest on savings accounts or certificates of deposit or any other time deposit at a rate greater than 4 per cent per annum payable semi-annually. No interest in any event shall be paid upon such time deposits for any period less than three months. If, however, there are any savings accounts or time deposits bearing interest at a rate greater than 4 per cent the same shall be considered borrowed money and shall be so reported to the superintendent of banking. Before any director of a state bank, savings bank, or trust company acts as such, he must take an oath that he will diligently, faithfully, and impartially perform the duties imposed upon him by law. That he will not violate nor permit to be violated any of the banking law, and that he is a bona fide holder in his own right of the number of shares required to be owned by him, and that the same have not been hypothecated. The Board of Directors must hold at least one meeting each calendar month. The State Superintendent of Banking may require, if in his opinion it would promote the banking industry to do so, that un secured loans in amounts exceeding $500, shall not be made except where the borrower submits a financial statement. No executive officer of any bank or trust company shall use directly or indirectly any money of the bank in excess of 10 per cent of the capital and surplus. Nor shall the total amount loaned to all executive officers of the bank exceed 25 per cent of the combined capital and surplus. No such loans can be made unless the same shall first be approved in writing by a majority of the board of directors, exclusive of the party borrowing. If any bank officer certifies a check in excess of the balance on deposit or issues a certificate of deposit when the full amount has not been deposited, he is guilty of a misdemeanor. No officer of any bank shall have power to pledge or hypothecate any obligations owned by the bank unless authorized to do so by a resolution of the board of directors. Any pledging or hypothecation without such authority is void and the party guilty is liable for imprisonment up to twenty years. All officers and employees of any bank having the care or custody of any funds or securities of the bank must furnish a bond subject to the approval of the board of directors. Any person knowingly issuing a false financial statement to a bank with intent to defraud respecting his financial condition, shall be guilty of a misdemeanor. Whoever maliciously or -with intent to deceive, makes or circulates any false report concerning any bank which tends to impute an unsound financial condition of the bank or cause a general withdrawal of deposits, shall be guilty of a felony and subject to fine and im prisonment. When any legal holiday falls on Sunday the following Monday shall likewise be a legal holiday as far as banks are concerned. Bills of Exchange. effect in Iowa. The uniform negotiable instruments law is in Blue Sky Law. A complete system of law for the regulation of the sale of securities known as the "Iowa Securities Law” is now in force. This act applies to sales and purchases within the State of Iowa of stocks, bonds, notes, debentures and practically all other evidences of indebtedness. A copy of this law in pamphlet form as well as all necessary blanks, etc., may be obtained free on application to the Secretary of State. Chattel Mortgages. No sale or mortgage of persona! 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 1862 BANKING AND COMMERCIAL LAWS—IOWA 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 Bled and deposited the same as chattel mortages. said $7,500 goes to the surviving spouse and the other half to the parents. If no surviving spouse, the whole thereof shall go to his parents or the survivor of them; and so on through ascending an cestors and their issue, if both parents be dead. Personal property not necessary to pay debts is distributed to the same persons, and in the same proportions as though it were real estate. Dower. Dower in Iowa is abolished, but the surviving spouse Is entitled to one-third in value of all the legal and equitable estates in real property possessed by the deceased spouse at any time during the marriage, which have not been sold on execution or any other Judicial sale, and to which such survivor has made no relinquishment, of right. A spouse, heir or devisee feloniously taking or procuring the taking of the life of the other spouse, or decedent, cannot have dower or inherit power or take under the will of the decedent. (See Limi tations.) Employers Liability. Employers liability and workmen's com pensation is governed by statute. Conveyances. No particular form is necessary for conveyances or mortgages. The name of the parties, the description of the property, the consideration, the date, signature, and acknowledgment, is all that is necessary; as between the parties they are valid without being recorded. The wife must join with her husband In conveyances, and a conveyance of the homestead is of no validity unless husband and wife concur in and sign the same joint instrument. A corporation executes conveyances under its corporate seal, except where che 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. Executions may be stayed, according to tbeir amount, for ninety days or six mouths, with a few specified exceptions, and the issuance of execution may be prevented by filing an appeal bond. Otherwise execution may issue immediately after rendition of judgment. The Judgment is a lien on realty within the county where rendered, or by transcript, it may be made a lien in any other county. Executions become liens on personal property only from the time of the levy and seizure. Heal 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 sona] property is sold without redemption. The legislature has by statute approved the following forms; 1. Quit claim deed. For the consideration of $................. I hereby quit claim to.................... all my interest in the following described tract of real estate: (De scribing it.) 2. For a Deed conveying fee simple without warranty: For the consideration of $................... 1 hereby convey to.......................... the following tract of real estate (Describing it.) 3. For a Deed conveying fee simple with full warranty: add to number 2 the following: And I warrant the title against all persons whomsoever. 4. For a Mortgage; add to number 2 the following: To be void upon condition that I pay, etc. Of course, the above instruments must be signed by the grantor, and if ho is married his wife must also sign to convey her dower interest. If it is desired that any of the above instruments be recorded, then the same must be acknowledged. Exemptions. The head of a family is entitled to a homestead of forty acres or less of farm land or half an acre or less in a city or town. When a debtor absconds and leaves his family, such property as is exempt to him shall be exempt in the hands of his wife and children or either of them. The statute provides for numerous exemptions of personalty to the head of the family including; 1. The proper tools, instruments or books of the debtor, if a farmer, mechanic, surveyor, clergyman, lawyer, physician, teacher, or professor, except that no motor vehicle shall be held exempt from any order, judgment or decree for damages occasioned by the use of said motor vehicle upon a public highway of this state. None of the above articles are exempt for the purchase price thereof. 2. All money received by a person as pension money whether deposited loaned or invested by him. 3. Earnings for his personal services at any time within 90 days next preceding the levy. 4. Any compensation due or may become due under the workmens compensation act. There are statutory provisions concerning the creation of liens on exempt real or personal property and the assignment of exempt wages. There is no exemption to debtor under a decree for the support of minors. Nor is there any exemption for the payment of alimony unless the party in whose favor the decree was rendered remarries. 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 he acknowledged and recorded, in the manner provided by law. and approved by the secretary of state. With a few exceptions, an incorporation fee ot $25. plus $1 for each thousand dollars of capital in excess of $10,000 must be paid, upon the organization or renewal of a private corporation. The general term of the life of a private corporation is twenty years, renewable for a like term. Railroads, savings banks, and a few others may last fifty years, also renewable. Foreign corporations must obtain a permit to do business in the state. The statute provides in detail what the application shall contain, and must pay to the Secretary of the State a fee of $25 upon $10,000 or less of money and property of the company actually within the State, and $1.00 for each $1,000 of such money or property within the State, in excess of $10,000. No foreign stock corporation doing business in this state shall maintain any action in this state upon any contract made by it in this state, unless prior to the making of such contract it shall have procured such permit. This prohibition shall also apply to any assignee of such foreign stock corporation and to any person claiming under such assignee of such corporation or under either of them. The Articles of Incorporation may prescribe any figure as the par value of each share of stock, or the stock may be issued, ‘‘Without Par Value.” Courts. Terms and Jurisdiction. The district court has jurisdic tion of all actions, civil and equitable, and has criminal and probate Jurisdiction. Superior courts may be established by the vote of the people in any city of 4,000 inhabitants. It has jurisdiction to 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 fllod in district court to create a lien on real estate, and are then enforced as judgments of the district court; Justice's jurisdiction, $100, or, by written consent of parties, $300. The supreme court has only appellate jurisdiction and holds sessions at Des Moines. January to May, from May to September (less vaca tion). and from September to December. Municipal Court may be established by the vote of people in cities of 5,000 inhabitants. It has jurisdiction to try all violations of city ordinances, and the same criminal jurisdiction as Justice of the Peace court, and exercise the jurisdiction conferred on the District Court for the trial of misdemeanors. It has concurrent, jurisdiction with the District court in all civil matters involving $1,000 or less, but has no jurisdiction to grant divorces, alimony or separate maintenance, and has no probate jurisdiction. Transcripts must be filed in District Court to create a lien, and appeals are taken direct to the Supreme Court. Days of Grace. Every negotiable instrument is payable at the 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 Bled 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 aud 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 and any day appointed or recommended by tne governor or tms State or the President oi 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 dale of last item; money loaned, money due. money due on settlement of accounts, hear 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 tho 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 mariner 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 persona) 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 tier, 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 aud 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-exenipt personal property. The mortgagor has one year in which to redeem real estate after execution sale, except as stated under the subtitle “Executions.” When a mortgage is paid off, satisfaction thereof must be made on margin of the record, or by satisfaction jiiece, acknowledged and recorded. If no satisfaction is entered within thirty days after request in writing, the mortgagee forfeits $25. (See Chattel Mortgages.) (See Limitations.) BANKING AND COMMERCIAL LAWS—KANSAS Non-residents. Action may be brought against non-residents to enforce liens on any property within the state; to enforce any debt against a non-resident, where action is aided bv attachment on prop erty found within the State. Personal judgment cannot in any case be rendered against defendants, not appearing, unless personal service is had on such defendants within the State. Non-residents may not sell at auction unless reciprocal legislation exists in the state of their residence. Notaries. These officers are appointed and commissioned by the governor, upon tiling a bond and paying the fee required by law. They have power to administer oaths, take depositions, and the usual power of such officers concerning presentation, demand, protest and notice of protest of negotiable commercial paper, only within the county in which commissioned. All notarial commissions expire .July 4, 1933 and are renewable for three year periods commencing with that date. Partnerships, Limited and Special. Limited and special part nerships are permitted, but not favored. The statutes on this subject must be strictly complied with. A certificate showing prescribed details and particulars of the partnership must be signed, acknowl edged, ana filed in the office of the clerk of the district court of the county in which the principal place of business is situated, to be there recorded and similarly recorded in each county where such partnership has a place of business. There must be an affidavit that the amount stated in the certificate has been actually contributed by each separate partner. Publication must be made or the ce”tiflcate and affidavit for six weeks in two newspapers in each senatorial district in which the partnership is to transact business. Powers of Attorney. A power of attorney to convey, or In any manner affect real estate, must be acknowledged and recorded. A revocation of suen power must be acknowledged and recorded in the same office wherein the original power of attorney is recorded. Receivers. A receiver may be appointed on the petition of either party to a civil action or proceeding wherein he shows that he has a probable right to or interest in any property which is the subject of the controversy and that such property is in danger of being lost or materially injured or impaired. When the property of any person, partnersliip, company or corporation has been placed in the hands of a receiver for distribution, after the payment of all costs, the following claims shall be entitled to priority of payment. 1. Taxes or other debts entitled to preference under the laws of the U. S. 2. Debts due or taxes assessed and levied for the benefit of the state, county, or other municipal corporations in the state. 3. Debts owing to employees for labor performed within the 90 days next preceding the transfer of such property. Records. 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. 1863 road taxes and ona-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 con trolled 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, Arm, 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 l'or the same ronerty, or selling or encumbering property included in any wareouse receipt, is made a criminal offense. There is also a criminal statute against issuing false warehouse receipts or certificates. Wills. Any person of full age and sound mind may dispose of his property by will, subject to the rights of homestead and exemp tion created by law and tbe distributive share in his estate given by law to tbe 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 tastator 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. 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. SYNOPSIS OF THE LAWS OF KANSAS 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 nrosecution of business, is void as against the creditors of seller: 1. unless at least seven days before the sale a detailed inventory is made, and 2. unless the purchaser demands and receives from the seller a written list of names and addresses of the creditors of the seller, with the full amount of indebtedness due or owing to each and certified by the seller under oath to be a full, accurate and complete list of his creditors and of his indebtedness, and 3. unless the purchaser shall at least seven days before taking possession or paying the purchase price, notify personally or by registered mall 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 croation 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 ha been returned unsatisfied, plaintiff may have an order for the appearance and examination of the judgment debtor; or such order may be obtained after execution has issued upon proof by plaintiff’s affidavit or other proof that debtor has property which he unjustly refuses to apply to the satisfaction of the judgment. If any property be found by such examination it may be levied upon; if in the hands of others the court may require its delivery to satisfy the judgment, and appoint a receiver of debtors property, forbid the sale thereof and order Equitable interests in realty to be sold. 'Taxes. Real estate is assessed every odd year; personal property is assessed every year. Ail property is assessed at its actual value, and taxed at twenty-five (25) per cent of the assessed value. All https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RELATING TO BANKING AND COMMERCIAL USAGES Revised by Doran, Kline, Colmehy & Cosgrave, National Reserve Bldg., Topeka, Kans. (See card in Attorneys List.) Acknowledgments. (See Deeds.) Actions. Civil actions are conducted as required by a code of procedure. Security for costs must be given or resident plaintiffs may deposit $15 in lieu of 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 recedence. 5. All demands without regard to quality which shall e legally exhibited against the estate in one year after granting first letters of administration. 6. Demands not exhibited within one year are barred, except as to infants, persons of unsound mind or persons imprisoned or absent from the United States, who shall have one year after the removal of their disabilities. Foreign ex ecutors, and administrators with the will annexed, may sell real estate in this State in accordance with the power contained in the will, unless administration upon the estate has been granted in this State; provided that at the time of such conveyance an authenticated copy of such will has been recorded in the office of the probate court in the county in which the land is situated. Affidavits. Affidavits may be made in or out of the State by the same authority aud 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 faithful performance of the award. Award to be filed in court agreed on and judgment entered as on a verdict of jury. Parties may have process, orders, and execution as in civil cases. BANKING AND COMMERCIAL LAWS—KANSAS 1864 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 bis 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 attorney must be filed, stating the nature of the claim that it is just, the amount affiant believes ought to be recovered, and the existence of some one or more of the following grounds: 1. That defendant is a foreign corporation or a non-resident of the State (but in this case for no other claim than a demand arising upon con tract, judgment, or decree, unless the cause of action arose wholly within the limits of the State). 2. That the defendant absconded with the intention to defraud his creditors. 3. That the defendant has left the county of his residence to avoid a service of summons. 4. That he so concealed himself that summons can not be served upon him. 5. That he is about to remove his property or a part thereof out of the jurisdiction of the court with the intent to defraud his creditors. 6. That he Is about to convert his property or 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 law relating to corporations, shall contain the names and places of residence of the stockholders and the amount of stock subscribed by each, and may contain such other provisions, not inconsistent with law, as the stockholders may deem proper, and shall be subscribed by at least five of the stockholders of the proposed bank who are residents of the State of Kansas. Board of Directors not less than five nor more than twenty-five in number, a majority of whom shall be resi dents of the county or adjoining counties to that in which the bank is located. The word “State” shall be included in the title. The full amount of the capital stock must be subscribed before the charter is filed. The bank shall transact no business, except the election of officers, the taking and approving of their official bonds, and the receipts of payments on account of subscriptions to its capital stock, until it has been authorized by the bank commissioner to commence business. Capital stock shall be subscribed in full before charter is filed. The capital stock shall be not less than *20,000 in unincor porated towns and in cities of the third class; not less than *30,000 in cities of second class; not less than *50,000 in cities of the first class. 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 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. Pour 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. Bills of Lading. (See Notes and Bills of Exchange.) 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 he 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 justify 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. Pledge. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Governed by the common law on Bailments and Conditional Sales. Conditional contracts, by which the owner ship remains in the party proposing to sell until the purchase price is paid, are treated as chattel mortgages and must be filed in the office of the register of deeds in the same manner as such chattel mortgages but remain in force without the renewal affidavit required In chattel mortgages. Contracts. All contracts which, by the common law, are 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 and *2.50 filing fee must accompany an applica tion. 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 mast 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 the court of last resort. City courts with jurisdiction in civil actions to the amount of *1,000 and in replevin actions to *500 except the city courts of Wichita and Kansas City which have jurisdiction in replevin actions to the amount of * 1,000, 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 ublic. in cases where the acknowledgment is made out of the tate 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. BANKING AND COMMERCIAL LAWS—KANSAS Descent and Distribution. The homestead la the absolute property of the widow and children—one-half in value to the widow, and the other half to the children, when both survive. The home stead can not be divided or sold by an action for partition until all the children attain majority. One-half of all real estate owned by husband during coverture, and not conveyed by husband and wife, nor sold at judicial sale, and not necessary to pay debts goes to the wife in fee simple; except of land sold by husband whose wife never before such conveyance resided in the State. Remaining real estate goes to the surviving children, and living issue of prior deceased children, children taking per stirpes, in equal shares, or, if none, the whole estate goes to the widow. For want of wife or child or living issue of deceased child the whole estate goes to the parents. The rules applicable to widow of deceased husband apply to husband of deceased wife. Illegitimate children inherit from the mother, ana also from the father, if his recognition has been general and notorious, or iD 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.) 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 $60, sixty days; over $50 and not exceeding $100, ninety days: over $100, one hundred and twenty days. Real estate is only subject to execu tion issued out of district court of county wherein judgment rendered or abstract or transcript from justice of the peace filed. Executions are liens on personal property only from time of levy. Real estate sold on execution or order of sale, giving the debtor eighteen months in which to redeem. The debtor is entitled to 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 rents and profits as are necessary to repair waste and pay costs of receivership. Surplus if any to be paid to judgment, debtor free from the lien of any judgment. Exemptions. Homestead of 160 acres of farming land, or of one acre within an incorporated town or city, with buildings thereon, appurtenant to the use of the property as a homestead, unlimited in value. To the head of a family the following articles of personal property: All books, pictures, musical instruments, pews in churches, burial lots; wearing apparel of debtor and family; beds and bedding, cooking utensils, stoves and appendages necessary for use of family; sewing machine and all other household furniture not exceeding $500; two cows, ten hogs, one horse or mule; yoke of oxen or In lieu thereof span of horses or mules; twenty sheep; food necessary for support 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 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 a foreign corporation fails to file with the secretary of state the state ment required by law within ninety days after the time provided for, its right to do business in the State is thereby forfeited. A penalty is imposed of $5 for each day this report is delayed. Foreign cor porations must pay aD 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 the plaintiff cause to be filed with the clerk an affidavit stating the amount of his claim over and above all offsets, that he believes that some person, naming him, indebted to, or has property In his possession or under his control belonging to the defendants, and that such defendant has no property liable to execution sufficient to satisfy his debt, and that the indebtedness or property so held Is not by law exempt from seizure or sale upon execution, the clerk shall issue a garnishment summons. In justice courts the affidavit differs from that acquired in district court actions only in that affiant states that plaintiff is in danger of losing his claim, in lieu of the allegations that the defendant has not property subject to execution sufficient to satisfy the debt. In the district courts bond in double amount claimed is required on garnishments before judgment, except where defendant is a non-resident. 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1865 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 iudgtnent. A certified copy of the judgment appearing of record in the district court may oe filed in the office oi the clerk of the uistrict 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 lieu claim to owner or person in possession of the premises, where that may be done, otherwise must post notice on the premises. 8upreme court has rendered notice almost unnecessary. Action to foreclose lien must be begun within one year after filing claim. Liverystable keepers, forwarding merchants and common carriers have liens. (See Judgments.) Attorneys have lien on papers and funds in hand for general balance of compensation and have lien on moneys in hands clients adversary due client in any matter, action or 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. Such liens hold priority over prior recorded chattel mortgages. 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, ono year. Action for any other relief not before provided for, five years. In any case founded on contract, part payment, or an express written acknowledgement or promise, renews the contract. The statute runs from the date of such renewal. Con tractual limitations differing from the statutes are void. Married Women. The real and personal property owned by a woman at the time of her marriage, and any property which comes to her by descent, devise, or bequest, or gift of any person except her husband, remains her sole 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 bis property. She may sue and be sued in the same manner as if she were single. She may carry on any trade or business, perform labor or services for her separate account, and her earnings or proceeds from labor, trade, or business remain her separate property, and may be used and invested by her in her own name. Her husband is not liable for her debts incurred in her separate busi ness undertakings by virtue of the marriage relation. She may also contract with her husband with the same effect as though the married relation between them did not exist. Mines and Mining. The law provides for the appointment of a mine inspector with authority to require mine owners to provide certain facilities for the health and safety of persons employed and compel proper ventilation, regulate excavations, air courses, etc. This law is quite elaborate and violations of the safety provisions of the act—resulting in injury to employees, usually results in liability even where the Kansas Workmen's Compensation Act does not apply, on the part of the mine operator to the employees because of the positive duty resting on the operator to comply with such statutory provisions. Mortgages. A mortgage of real estate, to be valid as against subsequent bona-fide purchasers without notice, must be duly ac knowledged and recorded in the office of the register of deeds of the county where the land is situated. Mortgages may be valid as against attaching creditors without recording. Mortgages may be discharged on margin of record by mortgagee or attorney or assignee by duly acknowledged power of attorney or assignment in presence of register, or by satisfaction entered on the instrument when copied on the margin by the register; or by an independent release duly acknowledged and recorded. Wife must join in all mortgages except those for purchase money, except in cases where she has never been a resident of the State. Mortgages are foreclosed by suit only. By an act of the Legislature which took effect May 18, 1893. real estate sold under foreclosure of mortgage is subject to eighteen months. Corporation mortgagor may agree in the mortgage instrument for a shorter period of redemption or may wholly waive it. If the mort gage 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 Execu tions.) (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 $1,000 and are required to affix the date of the expiration of their commission to all certifi cates. 1866 BANKING AND COMMERCIAL LAWS—KENTUCKY 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 period 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 cierk. 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 whicn 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 on hand 25 per cent of deposits subject to check and 10 per cent of time deposits. In the same manner as state banks. Each director 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." 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, Hamilton & Hobson, Attorneys at Law. 615-624 Inter-Southern Bldg., Louisville, Ky. (See Card in Attorneys’ List) Acknowledgments. Deeds executed within the State may be acknowledged before the clerk of the proper county court or a notary public, or may be acknowledged before and proven by two subscrib ing witnesses. Deeds executed without the State and within the United States must be acknowledged before the clerk of a court or his deputy, notary public, mayor of a city, secretary of state, com missioner of deeds, or judge of a court, or before a justice of the peace; if executed without the United States must be acknowledged before a foreign minister, consul or secretary of legation of the United States, or the secretary of foreign affairs, or notary public of the nation in which the acknowledgment was made or judge of a superior https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis court of the nation where the deed shall be executed, attested in either case by the officer’s seal of office. When the acknowledgment is taken, the officer may simply certify that the deed was acknowledged before him, and when it was done. All deeds must show a source of grantor’s title. Actions. Actions are commenced by filing in the clerk’s office of the proper court a petition setting forth the cause of action and causing a summons or a warning order to be issued thereon. Non residents and corporations, other than banks, created by laws of this State, are required to give security for costs. In any action started in the Circuit courts of Kentucky, the plaintiff must make a deposit of $5.00 to cover probable costs, and a tax fee of fifty cents for the filing of the suit must be paid. 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 of a court, or a justice of the peace, examiner, notary public, clerk of a court, or master-commission er. 2. Out of this State, before a commissioner appointed by the governor of this State; or before any other person empowered by a commission directed to him by consent of the parties or by order of the court, or before a judge of a court, a justice of the peace, a mayor of a city, or notary public. Appeals. Appeals may be taken from 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 lu controversy, exclusive of interest and costs, amounts to $500 or more, but wben 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 tne 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 final 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 tiiat 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. 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 proporty 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-balf 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 aa 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 BANKING AND COMMERCIAL LAWS—KENTUCKY 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 the1 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 comprenensive regulation of the sale of corporate securities, based on t he 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 dis approve 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 govern ment, any State or Territory oy Subdivision thereof, National banks, federal land banks or war finance corporation; public utility, exclu sively charitable corporations, securities listed on the New York stock exchange or other stock exchange previously approved by the com missioner or securities senior thereto, securities guaranteed by a State bank, trust company, title company, or real estate mortgage company; negotiable promissory notes or commercial paper; 50 per cent of the capital stock first issued by domestic corporations, where no expense in excess of 1 per cent of the proceeds from the sale of the stock so issued is incurred, and no part of the stock be issued in payment for patents, good will, services, trademarks, leases, copy-rights, processes, formulae, or other intangible assets. Chattel Mortgages anti Heeds of Trust. No deed ol' trust ot mortgage, conveying a legal or equitable title to real or persona! 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 soli 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. Chocks. Any person who with intent to defraud shall make or draw or utter or deliver any check, draft, or order for the payment of money upon any bank or depository, knowing at the time of such making, drawing, uttering, or delivery that the maker or drawer has not sufficient funds in or credit with such bank or other depository for the payment of such check, draft or order in full upon its presenta tion; or who after having made, uttered or delivered any check, draft, or other order for the payment of money upon any bank or other depository shall withdraw or cause to be withdrawn, the money or any part thereof to the credit of the maker of such draft, check or other order for the payment of money without leaving with such bank or other depository a sum sufficient to cover such check, draft, or other order for the payment of money, shall be guilty of a mis demeanor, if the amount-of such check, draft or order be under Twenty Dollars, and if the amount of such check, draft or order be for Twenty Dollars or over, he shall be guilty of a felony.** The making, drawing, uttering or delivering of such check, draft, or order as aforesaid, shall be strong prima facie evidence of intent to defraud. Contracts. A seal or scroll is til 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 ail 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. 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 clr 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 oe 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 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1867 depositions to be taken upon interrogatories, and they may always be so taken by consent of ail 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 (4) one moiety of the estate shall pass to the paternal and the other to the maternal kindred, in the following order: (5) to the grandfather and grandmother, or which ever may be living; if both are dead, then (6) to uncles and aunts and their descendants; if none, then (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, leaving descendants such descend ants shall take per stirpes, that is to say, by representation, the shares of their respective deceased parents. Collaterals of the half blood shall inherit only half so much as those of the whole blood. In making title by descent, it shall be no bar to a party that any ancestor, through whom he derives his descent from the intestate, is or has been an alien. Bastard can inherit in the descending line only from the mother and her kindred, and can transmit inheritance in the descending line only to the mother and her kindred. Dower. (See Husband and Wife.) Escheats. Land held by a corporation for more than 5 years, which is not proper and necessary to carrying on its legitimate business becomes subject to escheat. Land held by a non-resident alien for more than 8 years becomes subject to escheat. Executions may issue upon judgment any time until collection of it is barred by limitation, but no execution shall issue on any judg ment. unless ordered by the court, until after ten days from rendition. Execution constitutes lien on property of debtor from time it reaches hands of proper officer. Provided that, such lien shall be void as to a purchaser for value without notice unless 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 hond) 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 * 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 ourchase money and ten per centum per annum interest. Land in which the execution defendant has a legal or equitable title or a con tingent remainder, a defeasible fee, may be taken and sold under execution. Exemptions. The following property of persons with a family resident in this Commonwealth, shad 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; ail 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 vs 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 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. Thb does not extend to a mortgage on or purchase money due for the land or for debts or liability existing prior to the purchase of the land, or of the erection of the improvements thereon. Personal property or money on hand or in bank to the amount of $750.00 shall be exempt from distribution and sale and shall be set apart by the appraisers or the estate of an intestate to his widow and children, or, if no widow, to his infant children or child surviving him. The appraisers shall state in their appraisement the money or the articles and value of each set apart by them to the widow, or infants, 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 tc 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 wifi in the time prescribed by law. Holidays. The 1st day of January, January 19th (Robert E. Lee Day), February 12th (Lincoln Day), the 22d day of February, the 30th day of May, the 4th day 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 1868 BANKING AND COMMERCIAL LAWS—LOUISIANA 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 felony, or abandonment by the husband. After the death of either husband or wife the survivor shall have a life estate In one-third of all the realty of which the decedent was seized in fee simple during the coverture unless such right shall have been for feited or relinquished. Such survivor has also absolute title to onehalf the personalty of the decedent left after the payment of debts. Abandonment and living in adultery by either party, or divorce works a forfeiture of these rights. Interest. The lawful rate of Interest is 6 per centum per annum, and contracts for a greater rate are void as to the excess of interest. 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 included 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 before 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 be fraudulent and void and shall operate as a general assignment for the benefit, of the creditors of the vendor and the purchaser shall at the suit or option of the creditor be held liable to the creditors for the fair value of all property so bought or sold, provided, however, such suit must be brought within four months. Notes and Bills of Exchange. The uniform negotiable instru ments law was enacted June 13, 1904. Section 1 declares that an Instrument to be negotiable must conform to the following require ments. (1) It must be in writing and signed by the maker or drawer. (2) Must contain an unconditional promise or order to pay a certain sum in money. (3) Must be payable on demand, or at a fixed or determinable future time. (4) Must be payable to the order of a specified person or to bearer. (5) Where the instrument Is addressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty. Days of grace are abolished. The signature of any party may be made by an agent duly 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. The Negotiable Instruments Law has been amended and enlarged by Acts of 1930 which should be consulted by those interested. Powers of Attorney. Powers of attorney to convey real or per sonal property may be acknowledged, proved and recorded in the proper office in the manner prescribed for recording conveyances. If the conveyance made under a power Is required by law to be recorded or lodged for record to make the same valid against creditors and pur chasers. then the power must be lodged or recorded in like manner Protest. Where any negotiable instrument has been dishonored it may be protested for non-acceptance or non-payment as the case may be; but protest is not required, except In the case of foreign bills of exchange. It is the safer practice to protest in all cases, because in all cases notice of dishonor is necessary to charge parties secondarily liable. Sales. On March 24, 1928 the uniform sales act drawn by Professor Williston was enacted without change from the original as drawn by Professor Williston. Taxes. State and County taxes 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF LOUISIANA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Messrs. Merrick, Schwarz. Guste, Barnett & Redmann Attorneys at Law, Canal Bank Bldg., New Orleans. (See Card in Attorneys’ List.) Accounts. (See Acknowledgment*.) Acknowledgments. The uniform foreign (Act 154 of 1916), and domestic (Act 220 of 1920) acknowledgment laws have been adopted. Acknowledgments mav be taken within the state by a notary public or by a recording officer. Acknowledgments may be taken in the United States, outside of the state, by any judge, justice of the peace, notary, commissioner for Louisiana, or by any officer authorized to take acknowledgments where he acts. Acknowledgments may be taken In foreign countries by any am bassador, minister, envoy or charge d’affairs of the United States, in the country to which he is accredited, or before any officer of the United States, a notary public, or a commissioner or other agent of Louisiana authorized to take acknowledgments, if such officers have an official seal, and are commissioned or accredited to act where the acknowledgment is taken. Any commissioned officer of the army or navy of the United States Is authorized to take acknowledgments in any foreign country in which be may be serving. (Act 192 of 1918.) All acknowledgments taken within the United States must be witnessed by two witnesses over the age of fourteen years, who must subscribe the certificate of acknowledgment. If the party making acknowledgment be blind, three witnesses are required Witnesses are not necessary when acknowledgments are taken outside of the United States. The officer taking the acknowledgment must not act as a witness. While a female may act as a witness, this is of doubtful advisability. The acknowledgment of a married woman may be taken as though •he were single, separate examination being unnecessary. No authentication is required of certificates of acknowledgments taken in the state, or taken in foreign countries, or taken in the United States by notaries public, or commissioners for Louisiana, under their official seals. Certificates of acknowledgments taken in the United States before other officers must be authenticated by a certificate of a secretary of state as to the capacity of the officer. Authentication for use out of the state may be by the secretary of •tate, whose fee is one dollar, or by any clerk of a court of record, civil district or federal court, whose fee is fifty cents. Actions. Commenced by petition setting forth cause of action, articulated in numbered paragraphs, signed by plaintiff or his attorney and duly sworn to. Plaintiff must give resident security for costs or make deposit to cover same if demanded. (See Act 300 of 1914 regulating pleadings and practice as amended by act 27 of 1926.) After filing of petition, defendant is cited to appear ten days after re ceipt of citation in District Courts and Justice of Peace courts outside of city of New Orleans. One day additional for every ten miles his residence is distant from court. Delay in no case to exceed fifteen days. In city courts of New Orleans, defendant must appear three days after receipt of citation. Neither day of service nor day on which answer must be filed is included in delay. If defendant fails to appear, judge ment by default is rendered against him. In district courts such judge ment is confirmed two judical days after preliminary entry of default. In Justice of Peace courts judgment of default is confirmed the same day as that on which default is entered. Administration of Estates by executors, administrators, or tutors who are ex-officio administrators—also by dative executors—where there is no heir present or agent of heir, 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. The administrator or executor presents to the court an account or tableau of distribution setting forth the payments and disbursements he proposes to make. Parties interested are notified by publication to show cause within ten days why the account so filed should not be approved. Any party interested may 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 t,o recognize the claim, creditor may file suit against succession representative and obtain a Judgment to be paid in ordinary course of administration. If there Is no danger of prescription, creditor may await filing of account and then oppose same if claim is not included. Affidavits. (See Acknowledgments.) Aliens. No alien who is ineligible to citizenship of the United States may hold land or any real right. Aliens may not vote. Arbitration. Agreements to submit to arbitration recognized by law. “Louisiana Arbitration act" adopted Act 262 of 192S. Arbi trators must be sworn, otherwise decision Is not binding. State board of arbitration of labor troubles established. [Act 139 of 1894.] Assignments and Insolvency. State insolvent laws superseded by National Bankruptcy act. Attachment. Writs of attachment issue on application of credi tor, under oath, when debtor about permanently leaving state, without possibility in ordinary course of obtaining or executing judgment previous to departure, or when such debtor has already left state permanently, when the debtor resides out of the state; when he conceals himself to avoid being cited; when he has mortgaged, assigned or disposed of, or is about to mortgage, assign, or dispose of his prop erty, rights, or credits, or some part thereof, with intent to defraud his creditors or give an unfair preference to some of them; and when he has converted, or is about to convert, his property into money or evidences of debt with intent to place it beyond the reach of his creditors, >r. 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). BANKING AND COMMERCIAL LAWS—LOUISIANA Batiks. 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 legislative 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 charter 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 with a capital of $50,000 or mors, of which capital at least SlO.OoO 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 bo 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 oi 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 advance* or to guarantee contractual obligation*. 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 complying with the general corporation laws, ror one purpose of carry ing on any lawful business or enterprise not otherwise specially pro vided lor, except banking and insurance, homestead and building and loan associations. By act 250 of 1928 the corporation law of Louisiana has been largely revised, generally along the lines of the uniform corporation law but with distinctive features. The act is effective as from January 1st, 1929. The legislature can not pass a special act conferring corporate powers. Corporation committing a trespass or damage may be sued at place where it occurred. (Act 130 of 1926.] (See Act 154 of 1902 for formation of corporations for works of public improvement.) Act 120 of 1902 provides for organization, etc., of local and foreign building and loan or homestead associations. No corporation can declare dividends out of its capital stock. Annual meetings of corporations may be held anywhere within or without the state. Foreign Corporations may be licensed and taxed by a mode differ ent from that provided for home corporations. No domestic or for eign corporations shall do any business in this State without having one or more known places of business and an authorized agent or agents in the State upon whom process may be served. All corpora tions (except mercantile corporations) domiciled out of the State and doing business in the State in default of filing with the secretary of state a declaration of the place of its locality or domicile together with a resolution authorizing the appointment of an agent together with a power of attorney appointing an agent in the State upon whom service of process may be made, may be sued upon any cause of action In any parish where the right of action arises and such corporation must show its principal place of business and the places of business It proposes to have in Louisiana. Foreign corporations must tile 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. As to non trading corporations, see Act 259 of 1914. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1869 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 conn 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 under oath the direct and the cross interrogatories. He should reduce answer to writing, read same to witness and cause witness to sign same. The officer then prepares a process verbal of the whole, attaches it to the commission, interrogatories, etc., and should return same to the court Issuing the commission within the time fixed therein for taking the deposition. The deposition of a fugitive from justice is not admissible In evidence. (Also see Act 176 of 1910 and 98 of 1926.) The uniform foreign depositions act has been adopted (Act 34 of 1922). 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 two parts, one goes to ascendants on the paternal and the other to ascendants on the maternal side. If there is in the nearest degree but one ascendant in the two lines such ascendant excludes all other ascendants of a more remote 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 the succession Is equally divldea between the paternal and maternal lines of the deceased. If 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 left 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, caDnot exceed two-thirds. The remaining half, third or fourth, as the case may be is the legitime of the child or children and father and for mother. Tax: To descendants, etc., 2 per cent from $5,000 to $20,000, 3 per cent above $20,000. To collaterals, 5 per cent on $1,000 to $20,000, 7 per cent above $20,000. To strangers 5 per cent from $500 to $5,000, 10 per cent above $5,000. Exemptions: $5,000 for direct descendant, ascendant, or surviving spouse, $1,000 to collaterals, $500 to strangers. Bequests to educational, religious or charitable institutions located within the state are exempt. R. O. C. 915 amended to read, “When either husband or wife shall die, leaving neither a father nor mother nor descendants, and with out having disposed by last will and testament of his or her share of the community property, such undisposed of share shall be inherited by the surviving spouse in full ownership. In the event the deceased leave descendants his or her share in the community estate shall be inherited by such descendants in the manner provided by law. Should the deceased leave no descendants, but a father and mother, or either, then the share of the deceased in the community estate shall be divided in two equal portions, one of which shall go to the father and mother or the survivor of them, and the other portion shall go to the surviving spouse. Divorce. (See Separation from Bed and Board.) Dower. (See Married Women.) Employers I .lability Act. There is a general Employers Liability Act in the State setting forth special compensation for various injuries. Execution. 1’ropertv 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 head of family, real estate if owned and occupied as a residence, together with certain furniture, stock, implements, provisions, etc., the property not to exceed $2,000, means or property of wife deducted from exemption of husband. If the property exceeds $2,000 in value, it may be sold. Beneficiary entitled to $2,000 of proceeds. No registry required in parishes other than Orleans. Surviving spouse or minor 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- 1870 BANKING AND COMMERCIAL LAWS—.LOUISIANA merits, nor tools and instruments and books, sewing machines necessary for the exercise of bis 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 and Act 259 of 1914. 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 Sth, 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 llth, to be known as Armistice Day. December the 25th: in the Parishes of Orleans, St. Bernard, Jefferson, St. Charles and St. John the Baptist. Mardi Gras, and in cities of over 6,000 popula tion, Saturdays from 12 o’clock noon until 12 o’clock midnight. When a holiday falls on Sunday, the following Monday is a legal holiday in cities over 6,000. Husband and Wife. (See Married Women.) Interest. Legal rate is 5 per cent, but 8 per cent may be agreed upon in writing. If higher than 8 per cent is charged, it is reducible to 8 per cent. If paid, it may be sued for and recovered within two years. Judgments recorded in the office of the parish recorder become mortgages from date of record upon all real estate of the debtor, and may be thus recorded in any parish where debtor owns real estate. They are valid for ten years, when they must be renewed. Liens or Privileges. The following have special privileges, viz.: 1. Lessor’s privilege. 2. Privilege of the creditor on the thing pledged. 3. Privilege of a depositor on the price of a thing deposited. 4. Privilege for expenses incurred in preserving thing. 5. Privilege of the vendor of movable effects so long as they are in the possession of the vendee. 6. Privilege of the innkepeer on the effects of the traveler. Privileges resting upon immovables are as follows, viz.: 1. The vendor on the estate by him sold, for the payment of the price or so much of it as is unpaid, whether it was sold on or without a credit. 2. Architects, undertakers, bricklayers, painters, master builders, contractors, sub-contractors, journeymen, laborers, cartmen, and other workmen employed in constructing, rebuilding, or repairing houses, buildings, or making other works. 3. Those who have supplied the owner or other person employed by the owner, his agent, or sub-contractor, with materials of any kind for the con struction or repair of an edifice or other work, when such materials have been used in the erection or repair of such houses or other works. (Art. 3252.) Privilege on crops to be recorded (Act of 1890.) The vendor of an agricultural product of the United States has a five days’ privilege for unpaid purchase price in preference to all others. Privi lege granted employes in saw mills etc. (Act 145 of 1888. amended by Act 52 of 1910 and Act 23 of 1912.) Laborers have lien on oil and gas wells, rigs and machinery for wages. (Act 171 of 1928.) Widow and children left in necessitous circumstances are entitled to an amount in husband's or father’s succession sufficient to make Si,000 inclusive of property already possessed by them. This privilege primes all others except vendor’s privilege, that for expenses of selling property and conventional mortgages, representing money actually loaned for not less than one year at not exceeding 6 per cent for interest, dis count and charges. Limitation of Actions. Limitation of actions, or prescription, under the law of Louisiana is a manner of acquiring ownership of property, or of discharging debts by the effect of time and under the conditions regulated by law. Of the prescription by which the ownership of property is acquired, lie 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 j)ossession as owner during this time. If a person is possessed in good faith, and by a just title of a movable during three years without interruption he acquires the ownership by prescription, unless the thing was stolen or lost. When the possessor of any movable whatever has possessed it for ten years without interruption he shall acquire the ownership of it without being obliged to produce a title, or to prove that he did not act in bad faith. Prescription runs against all persons unless they are included in some exception established by law Minors and persons under interdiction cannot be prescribed against except in certain cases provided by law. Husbands and wives cannot prescribe against each other. Of the prescription which operates a release from debt. Various actions are prescribed by one year. Among these may be mentioned those of masters and instructors for lessons wnich they give by the month. Those of inn keepers, on account of lodging and board which they furnish. Those of retailers of liquors. Those of workmen, laborers and servants, for the payment of their wages, and actions for injurious words, whether verbal or written. Those for damages caused by animals, and all actions for damages or torts. This prescription runs against minors and interdicted persons, reserving, however, to them their recourse against their tutors and curators. Actions by or against common carriers for collection or recovery of freight charges or for loss of or damage to freight are prescribed by two years from date of shipment The following actions are prescribed by three years, to wit: First— That for arrearages of rent charges, annuities and alimony, or for hire of movables and immovables. Second—That for payment of money lent. Third—That for the salaries of overseers, clerks, secretaries ana of teachers who give lessons by the year or quart er. 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 pui-chasers 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 hills 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. Al! 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 recision of partitions; to set aside public and judicial sales for informalities. Ten years: All other actions; the right to a usu fruct or servitude, all judgments, whether rendered within or without the State, but judgments may be revived before lapse of ten years, and are then good for ten years from date of revival. Prescription of ten and thirty years now runs against minors, interdicts and married women (Act 161 of 1920). Husband and wife can not prescribe against each other. Promise to pay or payment on account will Interrupt prescription. Only written promise to pay will revive when prescription has accrued. Limited Partnerships. (See Partnership.) Married Women. Act 132 of 1926 and Act 2S3 of 1928 provide that a married woman, whether a resident of this state or not, shall be competent to contract debts, purchase, sell and mortgage, and to bind and obligate herself personally and with reference to her separate and paraphernal property; to appear In court and to sue and be sued; to sell, alienate or otherwise dispose of, and to mortgage and pledge, or other wise encumber, her separate and paraphernal property for the benefit of herself, her husband or any other person, and to bind and obligate her self personally or as surety for her husband or any other person; and that such rights may be exercised 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 acquets,and gains and prescribing what shall be deemed separate property of the spouses. Revenues of all separate property administered by the husband, and all property acquired by either husband or wife after marriage, except by donation or inheritance constitute part of community, unless bought with the separate means of either and as a separate acquisition. Wife nas 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 undor 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 oi the wite. except as affecting the homestead and family home. A mortgage resulting from recording a judgment cannot have that effect until 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-acceptauce 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 bo 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 □ot. 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 1871 BANKING AND COMMERCIAL LAWS—MAINE 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 puhlic 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 of 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 aD administrator when deceased leaves no will. Administrators must render annual accounts, and are allowed 2 a per cent on the inven tory as commissions. Attorneys at law are appointed to represent absent heirs. Properties acquired during marriage are presumed to be community property, and surviving spouse is owner of one-hall. When either husband or wife dies, leaving no ascendants or descend ants, and without having disposed by will of his or her share in the community, such undisposed of share shall be inherited by the surviving spouse in full ownership. (See Successions). Protest. (See Negotiable Instruments.) Separation from Bed and Board. May be claimed reciprocally for: 1. Adultery. 2. When spouse condemned to infamous pun ishment. 3. Habitual intemperance, excesses, cruel treatment, or outrages, when such renders living together insupportable. 4. Public defamation of one spouse by the other. 5. Abandonment. 6. Attempt of one spouse against life of other. 7. When one spouse charged with infamous offense actually flees from justice. Divorce may now be obtained if both parties have lived separate for 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 rnensa 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. Par'T against whom judgment is rendered must wait two years. When marriage is celebrated outside of state parties cannot obtain divorce Id state 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 K mills on actual value, parish taxes not exceeding 4 mills City of New Orleans taxes are 27>2 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 Fedoral laws may b‘> made trustees These trusts to last not longer than 10 years after death of rhino' 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.) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SYNOPSIS OF THE LAWS OF MAINE RELATING TO BANKING AND COMMERCIAL USAGES Revised by Pulsifer & Luiiden. 08 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 having a seal makes a prima facie case, if without the State authority of Notary must be certified by clerk of court of record. Administration of Estate. (See Estates of Deceased Persons.) Affidavits. Affidavits may be made before a notary public or justice of the peace. In some court matters authority of magistrate must be proved by certificate of clerk of a court of record. Allens. Aliens may hold and convey real estate and persona! 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 action 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 a six months 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 in town where assignor is employed. Invalid unless employer has notice. Attachment. All property not exempt attachable on mesne proc ess as of course without affidavit; security for costs by indorser of writ only if creditor is non-resident; lien by attachments in the order in which they are made continue for thirty days after judgment (extended where execution is delayed, appeal from taxation of costs is taken, or decision of law court certified down in vacation), within which time levy may be made. Personal property may be appraised and sold on mesne process to avoid expense, depreciation or loss, on request of either party and proceeds held by officer in lieu of the property, foreign attachment (garnishment), known as trustee process, attaches property by or debt due from trustee unless: 1. Due on negotiable paper. 2. Money collected on process by officer. 3. In hands of public officer. 4. Due on contingency. 5. Trustee liable to execution on same. 6. Twenty dollars wages, for personal labor of the debtor, wife or minor child within one month, and $10 exempt in all cases. 7. In certain cases money due on life and accident policies, and from fraternal beneficiary associations. (See Creditors Bills.) Banks. 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 bunk 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,” “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 maj 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 propertj of the seller until paid for, is valid unless in writing and signed by the person to be bound. Such agreement, in whatever form it may be, Is not valid except as between original parties, unless recorded in the office of the clerk ot the town In which the purchaser resides at the time of the purchase Alls uch property whether said agreements are recorded, or not shall be subject to redemption. This" does not apply to goods consigned for sale. Conveyances. (See Deeds.) Corporations. Three or more persons may rorm a corporation to carry on any lawful business excepting banking, insurance, construct ing and operating railroads, savings banks, trust companies, or cor porations intended to derive profits from the loan or use of money, and safe deposit companies, but corporations may be formed under the general law for the construction and operation of railroads ourside the 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 general 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 ot 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 1872 BANKING AND COMMERCIAL LAWS—MAINE 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 capita! 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 be 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, eight terms a year. Appellate jurisdiction, en banc on questions of law from trial terms of Superior Courts. Superior Court, unlimited jurisdiction, except as specified below. Full jurisdiction in equity. Creditors’ Hills. 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 repleviable. Days of Grace. (See Negotiable Instruments.) Deeds. Any owner of real estate having right of entry may con vey it by deed. No estate greater than tenancy-at-will can be created except in writing. Deeds must be acknowledged by a grantor or one of them or by an authorized agent, executing the same, before a justice of the peace, notary public having a seal, or woman qualified to take acknowledgments; outside the State, and in the United States, before a clerk of a court of record having a seal, notary public; or commissioner of deeds for this State, and in a foreign country before a notary public, or a consul or minister of the United States, but if magistrate acting outside of State has no official seal, his authority and the genuineness of his signature must be authenticated by the secre tary of state or the clerk of a court of record in county where he resides. Unacknowledged deeds cannot be recorded. No special form of acknowledgment required. Deeds must be recorded to be valid against parties without notice of the conveyance. Deeds must be under seal, but witness is not required for validity although usual to have one. Leases for more than 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 Id trial before courts of arbitrators, referees and county commissioners, and in cases of contested senatorial or representative elections. Depositions or affidavits may also be taken in applications for pensions, bounty, or arrears of pay under any law of the United States. Courts may issue commissions to take depositions out of the State, or they may be taken out of State by a justice, notary, or other person empowered, but in the latter case it is within the discretion of the courts to admit or reject them. Descent and Distribution of Property. (See Estates of De ceased Persons.) Dower. Abolished by laws of 1895, chap. 157, taking effect as to persons not then married. May 1, 1895; as to others, Jan. 1, 1897. Wife or husband may bar the right by inheritance to one-third or one-half, as the case may be, of realty by joining in the other's deed or by sole deed, or by ante-nuptial settlement, or by jointure. Either refusing to join in other's conveyance (or if incapacitated with no guardian in this state, other being a non-resident) may be barred of inheritance upon application to supreme judicial court and decree after hearing. (See Estates of Deceased Persons.) Estates of Deceased Persons. One year after notice of ap pointment, allowed creditors to present claims and suit must be begun and service of process made within twenty months after such notice of appointment. Allowance to widow and minor children, made by court from estate. Non-resident executor or administrator must appoint attorney. Time of demand or notice extended for absent creditor if further assets, but prior payments not disturbed thereby. No administration granted after twenty years. The real and personal estate of a person deceased intestate (excepting wild lands conveyed by him) being subject to the payment of debts descends according to the following rules: 1. If he leaves a widow and issue, one-third to the widow. If no issue, one-half to the widow. And if no kindred, the whole to the widow. And to the widower shall descend the same shares in his wife's real and personal estate. There shall likewise descend to the widow, or widower, the same share in all such real estate of which the deceased was seized during coverture, and which has not been barred, or released, as herein provided. In any event, one-third shall descend to the widow or widower free from the pay ments of debts. 2. The remainder of which he dies seized, and If no widower, or widow, the whole, together with all wild lands shall descend in equal shares to his children, and to the lawful issue of a deceased child by right of representation. If no child is living at the time of his death, to all his lineal descendants; equally, if all are the same degree of kindred; if not. according to the right of repre sentation. 3. If no such issue, it descends to his father and mother in equal shares. 4. If no such issue, or father, it descends one-half to his mother. If no such issue or mother, it descends one-half to his father. In either case, the remainder, or if no such issue, father or mother, the whole descends in equal shares to his brothers and sisters, and when a brother or sister has died, to his or her children or grandchildren by right or representation. 5. If no such issue, father, brother or sister, it descends to his mother. If no such issue, mother, brother or sister, it descends to his father. In either case, to the exclusion of the Issue of deceased brothers and sisters. 6. If no such issue, father, mother, brother or sister, it descends to his next of kin in equal degree; when they claim through different ancestors, to those claiming through a nearer ancestor, in preference to those claiming through an ancestor more remote. 7. When a minor dies unmarried, leaving property inherited from either of his parents, it descends to the other children of the same parent, and tbe issue of those deceased: in equal shares if all are of the same degree of kindred; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 a* 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 certaiD 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-balf 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; fish 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 suits for necessaries. (See Attachment.) Foreign Judgment. Action of debt lies on a foreign judgment and record of it is prima facie evidence of indebtedness. Is conclusive except for fraud when given by court having jurisdiction of parties and subject matter. Fraud. Usual common law rules as to what constitutes fraud, fraudulent representations, etc.; also statutory penalties for fraud, cheats, etc. Court of equity has power to afford relief. Statutory provisions to prevent sale in bulk of part or whole of stock of mer chandise in fraud of creditors. Frauds and Perjuries. No action shall be maintained upon any contract to charge an executor or administrator upon any special promise tc answer damages out of his own state: nor to charge any person upon any special promise to answer for the debt, default, or misdoings of another; nor to charge any person upon an agree ment made in consideration of marriage nor to charge any person upon any contract for the sale of lands, tenements, or hereditaments, or of any interest therein; nor to charge any person upon any agree ment that is not to be performed within one year from the making thereof; nor to charge any person upon any contract to pay a debt after discharge therefrom under bankrupt laws of the United States or assignment or insolvent laws of this State; unless the promise, contract, or agreement or some memorandum thereof is in writing and signed by the party to be charged, or his agent. No action shall be maintained on a minor s contract unless ratified by him In writing pfter becoming twenty-one years of age, except the contract be for necessaries or real estate where he has received title and obtained benefit. No contract for sale of goods, etc., of $30 or more in value Is valid unless purchaser accepts or receives a portion of the goods or gives something to bind the bargain, or in part payment thereof, or some memorandum is made and signed by party charged or his agent. Contracts whereby one becomes agent for sale of lands become void in one year unless time for termination definitely stated. Garnishment. (See Attachment.) Holidays. January 1st, February 22nd, April 19th, May 30th, July 4th, first Monday of September, Columbus Day, October 12th, December 25th, and clays 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 personal property, the rate shall not exceed 3 H 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. Elens. (Voluminous Statute Provisions, for Mechanics, Material Men, Hotel and Boarding-House Keepers, Stable Keepers, Agister, etc.). Limitation of Actions. Six years; debt on unsealed contract or liability (except judgments); actions upon judgments out of State of court not of record; for arrears of rent; of account, assumpsit, or case on contract or liability express or implied; waste; trespass qu. cl. and d. b. a.; replevin; case, except slander and libel. Four years; against sheriff. Two years: assault and battery, false imprisonment, slander. libel and penalty. One year: escape, scire facias and on recognizance. Eighteen months: stolen bonds and coupons, except by owner. Twenty years: witnessed notes, bank bills, specialties, real action, other judgment and all other personal actions. Suit begun when writ was made. Incapacity of plaintiff, death of either party before or within thirty days after expiration of time, fraudu lent concealment of action, absence from State when cause accrues or residence out of the State and absence afterwards, extends time. Actions barred where both parties lived are barred here. New promise must be in writing or part payment must be made, to extend time. Against executors and administrators, twenty months after filing of affidavit of notice given of appointment of executor or admin istrator, unless further assets or claim not matured. Against heirs or devisees, one year after claim accrued; remedy in equity, if not prosecuted within time limited and if without culpable neglect. BANKING AND COMMERCIAL LAWS—MARYLAND Limited Partnership. May consist of one or more genera) 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 proper** 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 resentable for payment on secular or business day next succeeding. f 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 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 warehouseman. Common law rules prevail generally. Wills. Wills must be in writing signed by the testator, or at his request by some person in nis presence, and subscribed in his presence by three witnesses not beneficially interested, in presence of each other, may be made by any person of age and of sound mind, and may dispose of all property. Wills executed in another State or country according to laws thereof, may be proved .and allowed in this State in the county where the testator had his residence at time of decease; if proved without this State (at his domicile), may be allowed in any county here where he has property. Widow or widower may within six months waive provision in will of deceased husband or wife and claim same share in property as would have had in case deceased died Intestate. (But see Husband and Wife.) Nuncupative will must be reduced to writing within six days, or proved by testimony within six months, from time words spoken. No letters in such till fourteen days after decease of testator. Not effectual to dispose of more than $100.00 worth of property unless proved by three witnesses who acted at testator's request. P https://fraser.stlouisfed.org 117 Federal Reserve Bank of St. Louis 1873 SYNOPSIS OF THE LAWS OF MARYLAND RELATING TO BANKING AND COMMERCIAL USAGES Revised by Blades, Rosenfeld and Frederick, Attorneys at Law, 1206-1207 Fidelity Building, Baltimore. (See Card in Attorneys’ List.) In general. Bagby’s Annotated Code (1924-two volumes) and Supplementary Volume (1929) embrace the Public General Laws of Maryland, including those of the 1929 session. By statutes, both the Code of 1924 and the 1929 Supplement have been legalized and made evidence of the law; especial reference to statutes in the follow ing is therefore unnecessary. Acknowledgments may be taken within the United States before any Notary Public and are sufficient if attested merely by the signa ture and notarial seal of the Notary. No estate of inheritance or freehold, or any declaration or limitation of use, or any estate in land above seven years, shall pass or take effect unless the deed con veying the same shall be executed, acknowledged by all grantors and recorded, and no deed of real or leasehold property shall be valid for the purpose of passing title unless acknowledged by all grantors and recorded. Such deeds may be acknowledged by the grantor or grantors wherever they may happen to be at the time of execution of the instrument. If acknowledged in the county or city within which the land or any part of it lies, the acknowledgment may be made before a notary public, a justice of the peace for such city or county, a judge of the Orphans’ Court of such city or county, a judge of the Circuit Court for the county, or (if the land lies wholly or partly in Baltimore City and the acknowledgment is there made) before a judge of the Supreme Bench of Baltimore City. If acknowledged within the State, but out of the county or city wherein the real estate or any part of it lies, the acknowledgment may be made before a notary public, any judge of the Circuit Court for the circuit in which the grantor may be, or any judge of the Orphans’ Court of the county in which the grantor may be, any judge of the Supreme Bench of Baltimore City, any judge of the Orphans’ Court of said city, or before any justice of the peace for the county or city where the grantor may be at the time of the acknowledgment, the official character of such justice being certified to by the clerk of the Circuit Court for the county or of the Superior Court of Baltimore City (as the case may be) under the clerk’s official seal. If acknowledged without this State, but within the United States, the acknowledgment may be made before a Notary Public, a judge of any Court of the United States, a judge of any court of any State or territory having a seal, or before a commissioner of deeds for this State. If acknowledged without the United States acknowledgment shall be made before an ambassador, minister, envoy or charge d’affaires of the United States, in the country to which he is accredited or before any one of the follow ing officers commissioned or accredited to act at the place where the acknowledgment is taken, and having an official seal, viz.: any con sular officer of the United States; a notary public; or a commissioner or other agent of the State of Maryland having power to take acknowl edgments to deeds. In all cases, the official seal of the officer or Court taking the same must be affixed to the certificate of acknowledgment. There are no special provisions as to acknowledgments by married women. Corporations acknowledge either by attorney appointed for that purpose in the body of the instrument itself, or by the President or Vice-president of the Corporation, without such appointment. All conveyances acknowledged prior to June 1st, 1929, in which such acknowledgment is defective are validated by Article 21, Section 87. of the 1929 Supplement to Bagby’s Code. (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. Administration of Estates. The Orphans’ Courts of the Counties and the Orphans’ Court of Baltimore City are the courts of probate. Where decedent leaves a will, letters testamentary are committed to the executer or executors (male or female)named in the will, if any are named. Letters testamentary or of administration will not be granted to any person under the age of eighteen years or of unsound mind, or convicted of any infamous crime nor to any person not a citizen of the United States. A non-resident of Maryland may be appointed as the persona! representative of a decedent resident of Maryland only when the State of his or her residence extends reciprocal privileges to resi dents of Maryland. (Code, Art. 93, Sec. 41A.) In granting letters of administration where decedent dies without leaving a will, or leaving a will, does not name an executor or executors, certain persons are pre ferred to others. The order of preference follows: 1. Surviving spouse, or child, or children (in discretion of the Court); 2. Grandchild 3. Father; 4. Mother; 5. Brothers and Sisters; 6. Next of kin. Where one of a class of persons is entitled the appointment is in the discretion of the Court. Males are preferred to females in equal degree or kin; and relations of the whole-blood are preferred to thos of the halfblood in equal degree, and relations of the half-blood are preferred to those of the whole-blood in a remoter degree. A single woman is pre ferred to a married woman in equal degree. 7. If there be no relations who qualify, letters of administration shall be granted to the largest creditor applying for the same. 8. If there shall be none of the first five groups above named, or if these be incapable or refuse to act, and if the sixth and seventh groups neglect to apply, the appointment is in the discretion of the Court. Bond is required with two sureties, or one of certain surety corporations authorized by the law of Maryland to qualify upon such bonds. When testator requests in willth at exec utor therein appointed be excused from giving bond, then bond shall be given only in such amount as the court shall consider sufficient to secure payment of debts of deceased. Six months' notice to creditors must be given by publication in as many newspapers as the Orphans' Court shall direct (usually one) before the estate is distributed. Per sonal property of the decedent must be appraised, an itemized inven tory thereof filed in the Orphans' Court, and distribution thereof made through the Orphans’ Court of the County or of Baltimore City wherein decedent resided. All sales made by the personal representative must be authorized and ratified by the Orphans’ Court which appointed him. The personal representative must within twelve months of his appointment file in the Orphans’ Court of his appointment a detailed account of his administration, and if such first account does not show the estate to be fully administered, fur ther accounts must be filed at six month intervals until the estate is fully administered. Above provisions also applicable to ‘‘estates of persons absent and unheard of for above seven years” who after due proof are declared by the Orphans’ Court to be “judicially dead” and letters testamentary or of administration are granted on such estate as if the absent person were actually dead. The rights of such absent person are protected by requiring the legatees or distributees to give bond conditioned to repay sums received by them with interest, if such absent person should be in fact alive at the time distribution is made. Affidavits. (See Acknowledgments.) No particular form neces sary, but whoever can take an acknowledgment can take an affidavit Affidavit of mortgagee always required in a mortgage as to the bonafldes of mortgage consideration. (See Mortgages.) 1874 BANKING AND COMMERCIAL LAWS—MARYLAND 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. Any cause in the law courts or Orphans’ Courts of this State (in their respective spheres) may, by rule of court and by consent and agreement of the parties thereto, be submitted and referred to the award and arbitrament of any person or persons, and the Court may give judgment on the award of the person or persons to whom such submission and reference shall be made as of the term to which said award shall be returned and award execution thereon as upon verdict, confession or non-suit. By agreement, disputes between employer and employee may be submitted, for arbitration, to any judge or justice of the peace, or if the parties so elect, to a group of arbitrators appointed by such judge or justice of the peace, the deter mination of such judge, justice of the peace or of the arbitrators appointed by them to be tiled as a judgment of the court presided over by the judge or justice of the peace to whom the dispute was sub mitted for arbitration. An agreement to arbitrate as distinguished from a case actually submitted for arbitration cannot be specifically enforced. Arrest. No arrest for debts in this State. Where a fine is imposed in Criminal Cases, however, if the prisoner does not pay the same, he may be imprisoned, the length of imprisonment to depend on the amount of the fine, but in no case to exceed six months. Attachments for debt or for liquidated damages can be obtained in all cases when the defendant is a non-resident or has absconded, affidavit being first made by the plaintiff to the correctness of his claim and the fact that the defendant is a non-resident or has absconded. They may be also obtained in connection with an original process when the creditor or some one in his behalf shall give bond in double the amount of the debt, with sureties to be approved by the clerk, and make affidavit before the clerk of the Court where the suit is brought that the defendant is bona fide indebted to the plaintiff in the sum claimed, and that the plaintiff knows or has good reason to believe that the debtor has absconded or is about to abscond from the State, or that the defendant has assigned, disposed of, or concealed, or is about to assign, dispose of, or conceal, his property, or some portion thereof, with intent to defraud his creditors, or that the defendant fraudu lently contracted the debt or incurred the obligation; or that the defendant has removed or is about to remove his property, or some portion thereof, out of this State, with intent to dofraud creditors and the attachment may be maintained, although the debt or obliga tion upon which the action is brought may not have matured, but the date of the maturity of the debt or obligation must be set forth in the affidavit. A claimant may have the attached property released by filing a bond in double the amount of the appraisement. Any kind of property or credits belonging to the defendant, in the plaintiff’s own hands or in the hands of any one else may be attached. There is a special provision for capital stock of a corporation. The certifi cate itself must be seized. Credits not due may be attached, but wages, hire or salary not due cannot be attached, and S100 of wages, hire, or salary due shall always be exempt. Imprisonment for debt is abolished. Defendant may be sued in the city or county of his residence or that of his place of business. In addition to attachments against non-residents or absconding debtors for debt (i. e., a liqui dated sum), as heretofore, attachments may now be issued against such debtors in cases arising from contracts when the damages are unliquidated, and in actions for wrongs independent of contract, but in such cases no attachments can be issued until a declaration is filed setting out specially and in detail the breach of the contract complained of or the tort actually committed, verified by the affi davit of the plaintiff or some one in his behalf, and until a bond shall be filed similar to the bond required in attachments for fraud. (Code Art. 9.) All papers in attachment proceedings can now be amended as in any other actions of law. If neither the Defendant nor Gar nishee appear condemnation may be had upon filing bond to bo in forco for period of six months, accounting from the return of the attachment. Banks. 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 commis sioner may requiro 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 conducted 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. Any State bank and trust company establishing branches outside of the city, town or village in which it is now located, shall add $25,000 to its capital in towns or villages having less than 1500 inhabitants, $35,000 having less than 3,500 inhabitants and #40,000 having more than 3,500 inhabitants. Every banking and trust institution shall have the right of perpetual succession until forfeiture. (Chapter 188, Acts of 1927.) Every bank and trust company shall make to the Bank Commis sioner not less than three reports during the calendar year, at such times as the Bank Commissioner shall require. At least once a year the bank or trust company shall report to the Bank Commissioner, on call by him, a list of its stockholders. The Bank Commissioner shall have a right to call for special reports, whenever in his judgment the same is necessary. (Chapter 373, Acts of 1927.) Blue Sky Law. No preliminary reports or qualifications are required and only if it shall appear to the Attorney General of Mary land that in the issuance, sale, promotion, negotiation, advertisement of securities within the State of Maryland, any person, partnership or corporation, is employing or is about to employ any device, scheme or artifice to defraud, or for obtaining money or property by means of any false or fraudulent pretense, representation or promise, the said Attorney General may require said person, partnership or cor poration to file with him a statement in writing under oath of all the facts concerning the same. From the action of the Attorney-General, there is an appeal to the courts, with final resort to the Court of Appeals. 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 who shall execute or carry on any scheme or device against which said order has been issued, or wilfully attempts to do so, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than $10,000 or impris oned not more than two years or be subject to both fine and imprison ment, in the discretion of the Court. Contracts. The normal condition of all persons is one in which they are capable of making any contract. The fourth and seventeenth sections of the Statute of Frauds are in force in Maryland. It is no longer necessary to show that the consideration for a special promise to answer for the debt of another is in writing. A citizen can not make a contract with an alien enemy during the continuance of hos tilities, but aliens, not enemies, may contract and hold real property as fully as citizens. The later cases decide contract of infants to be voidable and not void; and they are capable of ratification by infants on arrival at age of twenty-one. The contracts of infants for neces saries are binding upon them. The contract of a lunatic is voidable and not void. A married woman may engage in business, contract, sue and be sued upon contracts and torts, as if unmarried. All gambling contracts are void. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Conveyances. No estate in or title to any land lying within this State, for any period above seven years shall pass or take effect unless the deed conveying the same shall be executed, acknowledged and recorded. Such deed shall be signed and sealed by the grantor, and attested by at least one witness. Unless the contrary intention appears, every deed is construed to pass the whole estate of the grantor. Deeds of real estate should be recorded within six months from date in county, or in Baltimore City, where land lies. Where there are two or more deeds conveying the same lands, the deed first recorded shall be preferred if made bona fide and upon good and valuable consideration. A scroll with the word “seal" therein by way of a seal, is sufficient, as “(signed) John Doe (Seal).’’ The Deed of a body corporate must be signed in the corporate name by the President or a Vice President, and the official Corporate seal impressed on the deed, the seal to be attested by the Secretary of the corporation. Corporations are organized under the authority of Article 23 of Bagby’s Code where most liberal provisions are made for general incorporation, including such features as stock without par value, issuance of stock for considerations other than cash, convertibility of stock from one class to another class, cumulative voting, stock fully paid and non-assessable, convenient amendment and consolidation, etc. Every domestic corporation having capital stock, except rail road corporations and building associations, shall before the time of incorporation pay for the use of the State a bonus tax for its author ized capital stock at the following rates, to wit: Twenty cents for every thousand dollars of capital stock where such authorized capital stock amounts to $1,000,000.00 or less, but in no case less than $20.00. An additional bonus tax of $150.00 for every million dollars or fractional part thereof on amount of stock in excess of $1,000,000.00 and not in excess of $5,000,000.00. An additional bonus tax of $20.00 for every million dollars or frac tional part thereof in excess of $5,000,000.00. For purposes of above provisions as to bonus tax, stock without par value shall be treated as if its par value were $100,000 per share. Corporations have per petual succession, may carry on business anywhere, may issue bonds, and secure them by mortgage of all property including franchises. A foreign corporation before doing business in this State must pay a fee of $25.00 and file with the State Tax Commission of Maryland: (1) An officially certified copy of its charter or certificate of incorporation; (2) Annually thereafter a report to be filed on or before March 15th in every year subscribed and sworn to by its president or treasurer (or a majority of its board of directors) and accompanied by a fee of $1.00 for filing such a report, showing (a) the corporate name; (b) the names and addresses of its president, treasurer, secretary, and members of its board of directors; (c) its main office in this State and its principal office in the State of incorporation; (d) the amount of authorized capital stock and the amount issued, and the number and par value of the shares, and the names and addresses of the cor poration’s shareholders in this State, and the number of shares held by each; and in such annual report shall be given such information as may be required by the State Tax Commission in order to enable it to determine the amount of capital employed in Maryland as of January 1st of the year for which such report is filed; (e) the name and address of its agent resident in this State, service of process upon whom shall bind the corporation until the appointment of a sub stitute is duly certified to the State Tax Commission. Every officer and every agent of such foreign corporation which fails to comply with the above provisions, shall be subject to criminal prosecution, and while such failure to comply shall not affect the validity of any contract made with such non-complying corporation, no suit can be maintained in the Courts of this State by such corporation until com pliance with above provisions. Both domestic and foreign corpora tions must pay to the State an annual franchise tax, the amount of which varies, if a domestic corporation, with the amount of capital stock of such corporation issued, outstanding and/or subscribed for, and if a foreign corporation with the amount of capital employed by it in this State as of the preceding first of January. The franchise tax is payable on or before the first of October in each year. The penalty for failure to pay the franchise tax. by the domestic corpora tion, is forfeiture of its charter, and by the foreign corporation is forfeiture of the right to do business in the State. No corporation may interpose the defense of usury in any action at law or in equity. There is no period of limitations in this State on judgments against foreign corporations Courts. The Circuit Courts of the counties have common law jurisdiction in all cases involving more than $50.00, and in all cases involving title to land; and equity jurisdiction in all cases involving more than $20.00. The Circuit Court of Baltimore City and the Cir cuit Court No. 2 of Baltimore City have exclusive equity jurisdiction in the city. The Superior Court of Baltimore City, the Court of Common Pleas of Baltimore City, and the Baltimore City Court have concurrent common law jurisdiction in Baltimore City in cases involv ing more than $100.00. All records pertaining to the transfer of title to land in Baltimore City are in the custody of the Clerk of the Superior Court of Baltimore City, and in the counties, in the custody of the clerks of the various Circuit Courts of the counties. All such records are open to the public. The Orphans’ Court of Baltimore City, and the Orphans’ Court of each county have exclusive probate jurisdiction. In the counties justices of the peace have common law jurisdiction to the amount of $100.00 (concurrently with the Circuit Courts from $50.00 to $100.00). In Baltimore City the People's Court has juris diction up to $100.00 and suits on small claims in Baltimore City are brought in this Court instead of before the individual justices of the peace. Depositions. When the courts are satisfied, by affidavit or other wise, that there are material and competent witnesses residing with out the State, they will direct that a commission be issued to take the testimony of such witnesses. The commissioners are selected by the court, and must qualify before some person authorized to admin ister an oath in the state where they reside. The depositions, duly certified by the commissioners, shall be admitted as evidence at the trial of the cause, subject to the same objections and exceptions as the same testimony would be if the witness had been personally present in court and there examined. Parties have the right to be present when the testimony is taken under the commission, and must receive reasonable notice of the time and place. Interrogatories and crossinterrogatories may be annexed to the commission or the witness may be examined by counsel. Descent and Distribution of Property. As to descent, see Code 1924, Art. 46, and as to distribution, Code 1924, Art. 93. The Rule in Shelley’s case has been abolished by Ch. 144, Acts 1912, Code 1924, Art. 93, sec. 342. Dower. The common-law right of dower exists ip Maryland, and extends to equitable estates. By act 1898, the husband’s dower was created; an estate of the husband in his wife’s estates of inherit ance, exactly equivalent to the wife’s dower in her husband’s estate. A devise or bequest of real or personal property to the wife or husband shall be construed to be in lieu of dower in lands or share of personal estate, respectively, unless otherwise expressed in the will. If the widow or widower renounces formally in writing, however, such pro vision made for her or him by the will within six months after the grant of administration on the estate of the deceased husband or wife, the dower right and the share of personal property remain undis turbed. “The surviving husband or widow shall be barred of his or her right of dower in real or personal estate, unless within six months after the first grant of letters testamentary, he or she shall file a written renunciation." (See Married Women.) Executions may issue and judgments may be renewed or revived by scire facias at any time within twelve years from date of judgment or from the expiration of any stay, and may be thereafter levied on any property of the defendant. In the circuit courts for the counties BANKING AND COMMERCIAL LAWS—MARYLAND there is a stay until the first Thursday of the term succeeding the rendition of the judgment, provided the judgment is obtained at the second term after the defendant is summoned. There is no stay upon judgments rendered in the courts of Baltimore City or by justices of the peace in the city or counties, but execution may issue forthwith. The defendant may stay the execution by superseding with sureties for six months. Copy of docket entries of judgment when recorded in another county makes the judgment a lien there. Exemptions. No homestead law. Wearing apparel, books and tools (not kept for sale) and $100 of money, land or goods, and $500 payable to the debtor as life, health, or accident insurance are exempt from execution, except (1) on judgments for breach of promise to marry or seduction and (2) aggregate exemptions not to exceed $500 and (3) not applicable to any but actual bona fide residents of this State. Foreign Corporations. (See Corporations.) Foreign Judgments. Judgments of the courts of other states certified under 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 merchandise in bulk shall demand and receive from the vendor a written statement under oath containing the names and addresses of all creditors with amount of indebtedness at least ten days before the sale is consummated. The vendee at least ten days before con summating such sale shall notify all of said creditors either personally or by registered mail of such proposed purchase and is required to see that the purchase money is applied to the payment of the vendors debts shown on said statement. A sale or transfer of goods in bulk without such notice shall as to all subsisting creditors of the vendors be void. Special provisions of criminal law apply to the making of false financial statements. Garnishments. (See Attachments.) Holidays. Legal holidays in Maryland are: January 1st, Febru ary 22d, March 25th, May 30th, July 4th, September 12th, Octo ber 12th, Armistice Day (November 11th), December 25th, and when any of these days falls 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 Thanksgiving, fasting days or for religious observance, or for general cessation of business. Monday is treated as Sunday when immediately preceded by one of the holidays aforesaid. In Baltimore City, and Baltimore, Cecil, Harford and Montgomery counties and Cumberland, after twelve o’clock noon every Saturday. Husband and Wife. (See Dower, and Married Women.) In this State the husband is not liable for wife’s ante-nuptial debts or contracts. Husband is liable for necessaries of wife. Husband has same interest in wife’s estate as wife has in husband’s estate. Married women are expressly authorized to become partners and to contract with husband. Either can relinquish interest in other’s real estate by joint or separate deed, or by agent or attorney properly constituted. The wife’s property is protected by the Constitution from the debts of the husband. Interest. The legal rate of interest is 6 per cent per annum. A person proved guilty of usury forfeits the excess over the aggregate of the real sum lent and 6% interest thereon. Judgments bear interest from the date of the verdict. A corporation cannot plead usury. Judgments are liens for twelve years from the date of rendition on any interest of the defendant in real or leasehold property within the county where rendered. They can be transferred from one county to another by sending a copy of the docket entries to the clerk for record. The lien commences from the date of the entry of the docket entries by the clerk. Judgments are not liens on mortgages or other persona] property until execution has issued and the writ is in the hands of the sheriff. Liens. (See Judgments.) Mechanics' Liens. Every building erected, repaired, rebuilt, or improved to the extent of one-fourth of its value is subject to a lien for work done or materials furnished for or about the same, except that there are no liens for materials furnished in Baltimore City. Every machine, wharf, or bridge, constructed or repaired is subject in like manner as buildings are. to a lien. All boats or vessels are subject to a lien for materials fur nished or work done in building, repairing, or equipping the same. Garages are given lien for storage and accessories. To secure the lien and lay foundation for enforcing it, the material man must within six months after the last work has been furnished, file a claim in the circuit court for the county. The liens are enforced by scire facias or by bill in equity. Limitations of Suits. Accounts and notes are barred after three years, sealed instruments after twelve years; judgments twelve years except against foreign corporations (no limitations). A verbal promise or acknowledgment will revive a debt barred by the statute. Married Women. Act of 1898, Chap. 457, Code Art. 45, repeals and re-enacts the entire law in this State. Married women may hold and dispose of their property lawfully as if unmarried, but husband must join in conveyances of real estate to release his dower interest. Married women may engage in business, contract, sue, and be sued upon contracts and for torts, as if unmarried. Married woman is alone liable for ante-nuptial debts and contracts. Husband is still liable for necessaries. Where husband or wife is adjudged a lunatic upon inquisition, and the finding remains in force, other spouse may convey after acquired property by separate deed, as if unmarried. Surviving spouse is also allowed ahead of creditors $75 if no children, $150 if children. Surviving spouse is entitled to (a) one-third of net persona] estate if there are children or one-half thereof if there are no children and (b) the same share in net real estate or at option of surviving spouse in lieu of share of real estate surviving spouse, either husband or wife, may elect to take dower rights which are one-third of real estate for life ahead of creditors unless dower rights have been specifically waived or waived by joining in deeds. (See husband and wife, and Dower.) 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. If made by agent, he must, in addition, make oath that he is the agent of the mortgagee. A like affidavit is required to chattel mortgages, and absolute bills of sale, both of which must be recorded within twenty days. The lien of a mortgage may. by ceasing to pay interest or any installment of the principal for twenty years, be barred. They may be foreclosed at any time after the debt becomes due and before the lien is barred. Notes and Bills of Exchange. Negotiable instruments are defined by Ch. 119 of the Laws of 1898, which repeals all laws, incon sistent with the provisions of this act. Section 20 provided as follows: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1875 “An instrument to be negotiable must conform to the following requirements: 1. It must be in writing and signed by the maker or drawer. 2. It must contain an unconditional promise or order to pay a sum certain in money. 3. Must be payable on demand, or at a fixed or determinable future time. 4. Must be payable to order or to bearer; and 5. Where the instrument is addressed to a drawee he must be named or otherwise indicated therein with reasonaDle certainty.” Its negotiability is not affected by a seal, or by a provision which authorizes the sale of collateral securities in case the instrument be not paid at maturity, or authorizes a confession of judgment if the instrument be not paid at maturity; or waives the benefit of any law intended for the advantage or the protection of the obligor; or gives the holder an election to require something to be done in lieu of payment of money. It is not necessary that paper should be made payable at a bank or any fixed place. To charge indorser, notice of non-payme7it and of protest must at once be given to him. The time of maturity is regulated by Art. 13 as follows: “Section 104: Time of Maturity. Every negotiable instrument is payable at the time fixed therein without grace. When the day of maturity falls upon Sunday, or a holiday, the instrument is payable on the next succeeding business day. Instruments falling due on Saturday are to be presented for payment on the next succeeding business day, except that instruments payable on demand may, at the option of the holder, be presented for payment before 12 o'clock noon, on Saturday, when the entire day is not a holiday." Legal holidays. (See Holidays.) By act 1898, Oh. 198, it shall be lawful for banks and bankers in the city of Baltimore to close their doors for business at 12 o’clock noon, on each and every Saturday in the year, and every Saturday in the year, after 12 o’clock noon, shall be a legal half holiday, so far as regards the presenting for payment or acceptance, and the protesting and giving notice of the dishonor, of bills of exchange and other negotiable paper, and for these purposes shall be considered as the first day of the week, or Sunday, and all negotiable paper shall be deemed to be presentable on the secular day next succeeding. Power of Attorney. Every power of attorney authorizing an agent or attorney to sell and convey any real estate, shall be attested and acknowledged in the same manner as a deed, and recorded prior to or with the deed executed in pursuance of such power of attorney. A corporation shall have power to appoint an attorney for the same purpose, 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 prot est of notary public is prima facie evidence of non-acceptance or non-payment, and of the presentment of said note for payment, or of said bill for acceptance or payment, at the time and in the manner stated in the protest, and the protest shall also be prima facie evidence that such notice has been sent or delivered in the manner therein stated. (See Notes and Bills of Exchange.) Replevin is a remedy to recover specific goods and chattels to whose possession the plaintiff is entitled. Also the proper remedy to recover possession of goods distrained unlawfully. Bond must be given to the State of Maryland, and any party having an interest in the property, may, upon breach of any covenant in bond, maintain an action in the name of the State for his or her use. Sales and Notices. Sales Act. Acts 1910, Ch. 346, provides a Uniform Taxes. The county commissioners of the several counties of the State, and the mayor and city council of Baltimore City are directed to levy a tax annually upon real and personal property situated within the State. The County and/or City tax on Banks located and in business anywhere in Maryland is uniformly 1 per cent. The prop erty of religious, charitable, benevolent, and educational institutions, and cemetery companies is exempt from taxation. On timely applica tion exemption may be had for manufacturer’s tools and machinery in actual use from Municipal taxation in Baltimore City and in some of the Counties. Collectors may sell property to compel payment of overdue taxes, upon giving due notice of sale, and complying with other requisites of statute, and any person interested in property may redeem within twelve calendar months from date, and in default of redemption, title to property vests in purchaser. Taxes are con sidered in arrears on first day of July next succeeding the date of their levy. “Uniform State Laws” intended for adoption by all the States and adopted by Maryland: (1) Negotiable Instruments, (2) Bills of Lading, (3) Warehouse Receipts, (4) Fraudulent Conveyance Act, (5) Limited Partnership, (6) Partnership, (7) Sales, (8) State Law for Aeronautics, (9) Air Licensing Act, (10) Bank Collection Code, (11) Stock Transfer, (12) Uniform Proof of Statutes Act, (13) Fidu ciaries Act, (14) Foreign Acknowledgments, (15) Cold Storage, (16) Act for the Extradition of Persons of Unsound Mind, (17) Federal Tax Lien Registration Act, (18) Flag Act, (19) Foreign Depositions Act, (20) Foreign Executed Wills Act. Wills of land or personal property, and any codicil thereto, must be in writing, signed by the testator, or some one else for him, in his presence, at his request, and witnessed by two or more credible wit nesses, as and for last will and testament of the testator, in the presence of all the witnesses thereto. Nuncupative wills invalid except in case of disposition of personal property by soldiers in actual military service or mariners at sea. Every will or other testamentary instru ment executed without this State in the mode prescribed by law, either of the place whore executed or of the testator’s domicile, or according to the forms required by the law of this State shall be deemed to be legally executed, and shall be of the same force and effect as if executed in the mode prescribed by the law of this State, pro vided, said last will and testament is in writing and subscribed by the testator; and if the testator was originally domiciled in Maryland, although at the time of making the will or at the time of his death he may be domiciled elsewhere, the said last will or testamentary instrument so executed shall be admitted to probate in any orphans’ court of this State; and when so admitted shall be governed by and construed and interpreted according to the law of Maryland, without regard to the lex domicilii, unless the testator shall expressly declare a contrary intention in said will or testamentary instrument. Code Art. 93, sec. 334. No will, testament, codicil, or other testamentary paper shall be subject to caveat or other objection to its validity after the expiration of 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 adminis tration as the case may be on his estate. 1876 BANKING AND COMMERCIAL LAWS—MASSACHUSSETTS SYNOPSIS OF THE LAWS OF MASSACHUSETTS RELATING TO BANKING AND COMMERCIAL USAGES Revised by Talamo & Talamo, Attorneys at Law, 1026-27 Slater Bldg., Worcester, Mass. (See Card in Attorneys’ List.) Accord and Satisfaction. An accord is an agreement whereby one of the parties undertakes to give or perform, and the other to accept in satisfaction of a claim, liquidated or in dispute, and arising either from contract or from tort, something other than or different from what he is or considers himself entitled to; and a satisfaction is the execution of such agreement. Where the claim is undisputed, and is settled only in part, such part payment is without consideration and the balance can be collected. This, however, can be remedied by taking a release under seal which purports a consideration in full settlement of the entire claim. In order to take advantage of a suit pending in court because of accord and satisfaction, it must be specially pleaded in the defendant's answer. However, in case of a disputed claim, the acceptance of a smaller sum in lieu of the entire claim is a valid consideration and therefore is a full release on the entire claim. Accounts. Ex parte affidavit on claims and accounts is of no value. They must he established by evidence produced In four* after suit brought either by testimony, deposition, or other material evidence. Acknowledgments and Deeds. Acknowledgments may be made before any justice of the peace, notary public or special commissioner In the State; when the acknowledgment is made by any person with out this State and within any other state, territory or district of the United States, it may be made before any officer of such state, terri tory or district authorized by the laws thereof to take the proof and acknowledgment of deeds, and when so taken there shall be attached to the certificate of acknowledgment a certificate of the secretary of the state or territory in which such officer resides, under the seal of the state or territory, or a certificate of the clerk of a court of record of such state, territory or district, in the county in which such officer resides, under seal of said court, certifying as to the authority, of such officer to take acknowledgments and as to the genuineness of his signature In deeds where there is more than one grantor, the acknowledgment of one of them is sufficient. Official taking acknowledgment should state date of expiration of his commission. No separate examination or acknowledgment of wife joining in a release of dower necessary. Conveyances of land are made by deed under seal executed by the grantor or attorney having authority therefor. A conveyance in fee. for life or for a term exceeding seven years, shall not be valid, except as against the grantor and persons having actual notice of it, unless recorded in the county in which the real estate is situated. Deeds should be under seal. No subscribing witness is necessary. Release of dower homestead and other interests must be explicitly stated in deed, wife’s joining in deed merely, being insufficient. Husband and wife may make conveyances of real estate to each other except by way of mortgage, as if unmarried, but no such conveyance shall have any effect, either in passing title or otherwise, until the deed describing the property to be transferred is duly acknow ledged and recorded in the registry of deeds for the district where the land lies. Any interest in reai estate may be transferred by a person to himself jointly with another person or persons in the same manner in which it might be transferred by him to another person, except a con veyance to himself and his wife as joint tenants, or as tenants by the entirety. No interest in land except an estate at will can be created except by instrument in writing or by operation of law. Actions. There are three classes of actions: contract, tort, and replevin. Actions at law are begun by writs issued in blank form by the clerks of the several courts. No declaration need be inserted ir. the writ, except in cases of arrest on mesne process or of an attach ment of a vessel. Suits in equity are begun by filing a bill of complaint with the Clerk of the Superior Court upon which a subpoena or order of notice is issued by the clerk of the court. Actions begun by trustee process must be brought in the county in which the trustee or one of them resides or has his usual place of business. Administration of Estates. Administration or probate is to be taken out in county where deceased last resided. Executors or admin istrators are required to give a bond of about double the value of the personal estate. An executor will be exempt, from giving sureties if testator so directs and all creditors are notified by publication or in manner designated by probate court. An administrator will be ex empt if all persons interested in this State except creditors consent and all creditors are notified by publication. In case a non-resident is appointed executor or administrator, he must appoint a resident agent. There are public administrators in each county to whom administration is granted upon estates of persons who die intestate leaving property, and not having any husband, widow, or heir in this State. Ancillary administration may be granted upon the estate of a non-resident who dies leaving property in this State. Every administrator and executor shall file an inventory within three months, and publish notice of his appointment. Notice of a debt, and demand for its payment should be given to an executor or administrator within six months after his appointment and the debt should be paid after six months and within one year of the appointment. No suit can be brought by a creditor against an executor or administrator within six months after his giving bond, except on a claim not affected by the insolvency of the estate. No suit can be brought against an executor or administrator who has published notice of his appointment, after one year from time of his giving bond, unless he has received new assets after the expiration of the one year, or unless further time is allowed by court A creditor whose claim does not accrue within the one year may cause assets to be reserved to answer to his claim. When the estate is insufficient to pay all claims, the executor or administrator shall represent the estate insolvent and commissioner will be appointed to receive proof of claims, or the Court may receive and act upon the claims. Claims for funeral expenses, last sickness, and charges of administration, are not affected by the insolvency of the estate Executors and administrators shall render an account at least once a year. Aliens have the same rights and liabilities as natural persons do, only so, during the continuance of peace between the country of the alien and our own country. When war exists between the respective nations, the alien cannot sue but may be sued by a citizen of this country. Ordinarily contract rights are suspended during the oper ation of war unless the alien is within our territory, then he may be sued as above stated. Arrest. Right of arrest exists irrespective of domicile of either party. The debtor may be arrested and imprisoned on execution after the same is obtained, if the execution is not otherwise satisfied. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis and the debtor has property which he conceals and fail* to surrender to his creditors, and he fails to make a fair and full disclosure of hi* iroperty and his ability to pay money in reference to the debt owed by him, after the creditor has cited him in the District Court where Supplementary Process is had, and after the examination by the creditor or his attorney it is found that he has money or property and won’t pay, then the Judge may order weekly payments or place the debtor in jail for contempt of court by reason of his failure to obey the court orders generally. If no assets are discovered the debtor will be discharged and the proceedings dismissed. The creditor may. one year from date thereof, cite the debtor into court once again and examine him anew as to his assets, property, and ability to pay on the debt. (See Acts of 1927. (Mass.) Clip. 334—Supplementary Process) Assignments for benefit of creditors. A voluntary assignment to trustees for benefit of creditors can not be avoided by creditors who assent thereto, except by proceedings in bankruptcy begun within four months or by proof of fraud. If there is property in excess ef the claims of creditors who have assented, the excess In hands of the trustee can be reached by trustee process. As a matter of procedure the assignee usually waits the full four months from date of assign ment before making distribution amongst asserting creditors. Where Claims Are Assigned. The assignee, at common law, by virtue of his assignments could sue on the contract, but only so in the name of his assignor where no written assignment appeared. By Statute. If the assignment is evidenced by a written docu ment, then by virtue of the statute hereon, the assignee has an election of remedies, to wit, sue in his own name, or in the name of his assignor, on the contract so assigned. An assignment is considered a legal chose in action, and the assignee may prove a claim in bankruptcy in his own right and name, provided the assignment is made prior to the institution of bankruptcy proceed ings, subject, however, to all defences and to ail rights of counter-claim, recoupment, or set-off to which the debtor would have been entitled if the action had been brought by the assignor. The assignee’s rights and liabilities are those of the assignor purely, and it should be remembered that the assignee is not considered as a holder in due course of trade, as a holder of a negotiable instrument. The assignee steps into the shoes of the assignor and all personal defences available against the assignor are good as against the assignee. Where Wages Are Assigned. By virtue of Statute, future wages of a person may be assigned for a period of two years from the date of the assignment only, and it shall be valid to all intents and pur poses, if the document is formally executed, the consideration shown in apt words, rate of interest, signed by the parties thereto, and a copy delivered to the assignor by the assignee. Three-fourths of the weekly wages of the assignor shall be exempt from assignment and no assign ment shall be valid which does not so state on its face. No such assignment shall be valid when made by a married man unless the written consent of his wife is attached thereto. A standard form of assignment may be found in Chap. 154 of the General Laws. Future Earned Wages may be assigned for a period of only one year, where the assignment is given as security for a loan of money less than $300 in amount. The employer must accept the order of the assignment by a writing attached to the assignment and recorded. If the assignor is married, then it is necessary to a valid assignment of his wages that the wife by written consent agrees to the assignment and such written consent must be attached to the assignment. Ten dollars of the assigned wages must be exempt and must be so stated on the face of the assignment when recorded in order to be valid. Notice to Third Persons or Creditors When. Until the assign ment is placed on record at the City Hall, in the office of the City Clerk or Town Clerk, in the place where the assignor lives, or if he is a non-resident of the State, then in the city or town where he is em ployed, to be effective against attaching creditors. No assignment of future earnings shall be valid against a trustee process unless before service of the writ on the alleged trustee, the assignment has been duly put on record where the assignor resides at the time of such record. Attachment. All real estate, goods, and chattels not exempt, may be taken in attachment on the original writ and held as security for judgment, except that lands and tenements can not be attached in suits involving less then $20. Attachments may be made in suits by or against non-residents as well as in suits by or against residents. No bond is required to make an attachment. Shares of stock in corporations cannot be attached except by bill in equity. Attachment of shares of stock is not valid against a bona fide transfer although not recorded in book or corporation. Debtor may dissolve attachment by furnishing bond with sureties to pay judgment obtained or value of property attached determined by appraisement. Debtor against whom judgment is rendered may be subjected to sworn examination touching his property under the Supplementary Process Statute. An attachment is dissolved by death of the defendant if administration Is granted upon bis estate upon application made within one year after his death. Levy must be made on execution obtained by attachment on real estate within 30 days from date of judgment. Banks. The banking business is extensively regulated by statute. In general, savings banks, co-operative banks, trust companies, or other corporations or persons doing banking business in Massachusetts are subject to supervision of commissioner of banks. (General Laws, ch. 167, ch. 168, cli, 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. For ex tensive 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 nust be obtained from board of bank incorporation. (Gen. Laws, cn. 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 BANKING AND COMMERCIAL LAWS—MASSACHUSETTS to act. Commissioner of banks has extensive power to require returns and to supervise and examine. Savings departments may be estab lished. The kinds of business which may be done are prescribed by statute with considerable detail. Employees or officers of a bank are liable to fine or imprisonment If they receive a deposit knowing that such bank is Insolvent. 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 priina 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 day or the last day, for the performance of any act, includ ing the making of auy 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, 01 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 oheck. 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 ban! 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, oy the terms of the bill, the carrier undertakes to deliver the goods to the order of such person, or if at time of negotiation bill is in such form that it may be negotiated by delivery. Indorsement of bill does not make indorser liable for any failure on part of carrier or previous in dorsers of the bill to fulfil their respective obligations. Any pro vision in an order bill that it is non-negotiable shall be void. Bills of Sale. A bill of sale of personal property intended for security must be recorded, the recording provisions as to mortgages o' personal property being applicable. See Chattel Mortgages. Ch. 255 of General Laws. Blue Sky Law. Acts of 1921, ch. 499, approved May 27, 1921, entitled Promotion and Sale of Securities. Act applies to no con tracts valid and effective before act became effective. Certain secur ities are exempted. Act defines at length what is meant by security and sale. Persons dealing in securities within operation of act must be registered and information specified must be furnished commission. Certain classes of sales and certain securities are exempted from operation of Act. Annual fee for broker, $50, for salesman, $2. Act does not limit any statutory or common law right of any person to sue civilly or right of state to punish for violation of any law. Com mission has power of inquiry, of summoning witnesses and of sus pending certain sales. Act has immunity provisions. Violation of act punishable by fine of not more than $5,000 or imprisonment not more than two and one-half years or both. Scope of law extended by Acts 1924, ch. 487. which should be consulted. Chattel Mortgages. Chattel mortgages must be recorded in the records of the city of town where the mortgagor resides when the mortgage is made, and in the city in which he then transacts business, every mortgage, must be recorded within fifteen days of the date, until recorded the mortgage is not valid except between the parties and record subsequent to time limited is void. If mortgage is given by non-resident mortgagor, record must be made in city or town where property then is. If record in two places is required, and mortgage is recorded in one place within fifteen days, it may he recorded in other place within ten days after date of first record. The mortgage shall not be valid against a person other than the Darties thereto until so recorded. A mortgage of after-acquired property is good as against an attach ing creditor where possession of the after-acquired property is obtained before attachment thereof is made and subsequently retained by the mortgagee. A mortgage is good, however, between the parties, thereto, although unrecorded and no actual or constructive delivery of the property takes place. A Chattel Mortgage may be foreclosed by notice delivered per sonally or by publication, and notice with proof thereof must be recorded where the mortgage was recorded. After sixty days, the foreclosure becomes complete if the condition is not performed. Chattel Mortgages may be assigned. Upon performance of the conditions therein contained the mort gagor is entitled to a release. Where the mortgagor defaults, then the mortgagee may sell the goods at public auction by giving notice, in accordance with the time as specified in the mortgage, or advertising sale for three successive weeks in a local newspaper in said City or Town. The proceeds of the sale are applied to repay all sums secured by the mortgage and all costs and expenses incurred by reason of the sale. The surplus, if any. shall be forthwith paid to the mortgagor. Conditional Sales of personal property are valid in this juris https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1877 diction and the vendor may retain title for the unpaid purchase price therefor. It is usually a written formal document. It need not be recorded and will be good generally as against an attachment of the property in the hands of the conditional vendee, except by special statute. Where the sale of personalty consists of household furniture, or other household property, then if title still remains in the vendor till the last payment has been made, the vendee must be given thirty days notice in writing by the vendor as to the breach of condition of sale before the goods or furniture can be repossessed, and also attached thereto by the vendor to said written notice must be an itemized statement showing amount due. If seventy-five per cent of the pur chase price has been paid on the contract when the vendee so requests, the vendor must sell the goods at public auction and the proceeds shall pay the vendor his balance due, and any surplus over and above this shall forthwith be paid to the vendee. Corporations. By special act of 1903, chapter 437, the law of business corporations was revised and as amended, and now codified in General Laws, applies to all corporations organized in this common wealth for the purpose of carrying on business within the common wealth for profit, except the following; Banks, savings banks, co 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 references, voting powers, restrictions and qualifications as may e fixed by the agreement of association. Upon due organiza tion of the associates and filing a copy of the agreement o' association and articles of organization with the commissioner of corporations and on payment of a fee of one-twentieth of 1 per cent of total amount of authorized capital stock with par value, and five cents per share for all authorized shares without par value, but in no case less than $50, a certificate of incorporation is issued by the secretary of state. The capital stock may be issued for cash, property, tangible or intangible services or expenses, but not for notes. The amount of capital stock may be increased from time to time. The corporation must have not less than three directors, president, clerk and treasurer. The directors, treasurer, and clerk are elected by the stockholders. The president is chosen by and from the board of directors. The clerk must be a resident of the commonwealth. Meetings of stockholders must be held within the commonwealth, but directors may meet within or without the commonwealth. Voting by proxy is per mitted, but no proxy dated more than six months before the meeting named is valid. Any corporation may hold, purchase, con vey mortgage or lease such real or personal property as the purposes of the business may require. Every such corporation is required to file an annual report of its condition, and if its capital stock is over $100,000, shares without par value being taken as of $100 in value, to file a written statement under oath by an auditor. It is also required to make an annual return to the tax commissioner. Every foreign corporation which has a usual place of business here, or is engaged here permanently or temporarily in the construc tion, erection, alteration or repair of a building, bridge, railroad, rail way or structure of any kind, shall before doing business here appoint the commissioner of corporations, its attorney for the service or proc ess, such authority to continue as long as any liability remains out standing against it in this commonwealth, and shall file with the commissioner of corporations a copy of its charter, articles or certifi cate of incorporation, by-laws, and a certificate setting forth its name, location of principal office, names and addresses of its officers, date of its annual meeting, amount of its capital stock authorized and Issued, the number and par value of its shares, the amount paid thereon, and details of any payment thereof not made in money. Such corporations are required to file annual statements with the commissioner of corporations showing their condition. If it fails to file a copy of the charter, by-laws, etc., as above, it cannot maintain any action Btarted by it in any court, in this State. This has to be pleaded by a Plea in Abatement, or may be otherwise specifically pleaded, in each action. Courts. Terms and Jurisdiction. Trial justices may severally hold courts within the counties for which they are appointed, and shall have original jurisdiction, exclusive of the superior court, of all actions of contract, tort, or replevin, where the debt or damages demanded or value of the property alleged to be detained does hot exceed $100, and concurrent jurisdiction with the superior court of such actions where such amount exceeds $100 and is less than $300. District courts may in their respective counties have original juris diction, exclusive of the Superior Court, of actions of contract, tort or replevin, in which the debt or damages demanded or the value of the property alleged to be detained does not exceed $100 and have original and concurrent jurisdiction with the Supreme Court of actions of contract, tort replevin in which the debt or damages demanded or the value of the property alleged to be detained is more than $100. The former limitation upon the jurisdiction of district court (of cases under $3000) has been removed and the district courts now have con current jurisdiction with the superior court over all actions of contract or tort. The supreme judicial court has original jurisdiction in equity matters and may on appeal hear all matters determined by the pro bate court, and determine questions arising under wills. Superior court has jurisdiction where the amount claimed exceeds $20. Munici pal court of the city of Boston has jurisdiction concurrently with superior court in the county of Suffolk, in actions where the debt does not exceed $5,000, provided one or more of the defendants resides or has his usual place of business in the county of Suffolk. The Land Court has exclnsive original jurisdiction for registering titles to real estate under the Torrens system. The Probate Courts have jurisdiction over administration of estates of deceased persons, matters of adoption, guardianship, conserva torship, trusts under wills and written instruments, petitions for separate support, and of partition of land, and divorce. There is a Probate Court and Registry of Probate in each county. Equity jurisdiction is lodged in the Superior Court and in Supreme Judicial Court. By statute Probate Courts have jurisdiction in equity In certain special matters. Death. Where a person is absent and unheard from for a period of seven years, said person is presumed to be dead in legal theory. Depositions. Taking of such is governed by statute and rules of courts. The commission issued to take depositions contains full instructions to magistrate how to proceed. Descent and Distribution of Property of Decedents. After deducting widow's allowance and allowances for minor children, and payment of debts and expenses of administration, the remaining personal and real estate is distributed as follows; If deceased leaves no issue surviving husband or widow shall take $5,000 and one-half of remaining real and personal property. If deceased leaves issue, surviving husband or widow shall take one-third of remaining real and personal property. If deceased leaves no kindred, surviving husband or widow shall take whole of remaining real and personal property. A husband on death of wife shall hold for his life one-third of all land owned by her at any time during coverture, estate known as tenancy by curtesy. Wife is entitled to dower at common law. But 1878 BANKING AND COMMERCIAL LAWS—MASSACHUSETTS 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 all the above, the rest and residue of intestate property Is distributed as follows: 1. In equal shares to children and issue of any deceased child by right of representation; if there is no surviving child, then to the other lineal descendants if all are in same degree of kindred, otherwise by right of representation. 2. If intestate leaves no issue, then in equal shares to father and mother. 3. If no issue nor mother, then to father. 4. If no issue or father, then to mother. 5. If no issue, father or mother, then to brothers and sisters and to Issue of deceased brothers or sisters by right of representation; if no surviving brother or sister, then to issue of such equally if all in same degree of kindred to intestate, otherwise by right of represen tation. 6. If he leaves no issue, no father, mother, brother or sister or issue of deceased brother or sister, then to next of kin in equal degree, but if there are two or more collateral kindred in equal degree claiming through different ancestors, those claiming through nearest ancestor are preferred. Tf intestate loaves 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 insura nee benefits, uniforms, arms, and equipments of militia officers. Factor's Act. A factor or other agent intrusted with possession of merchandise or of bill of lading consigning merchandise to him with authority to sell the same shall be deemed the true owner of such merchandise, so far as to give validity to any bona fide contract of sale made by him. Bona fide consignees from shippers in lawful possession have liens for advances or securities to shipper. Bona fide pledges from consignees or factors are also protected. Frauds, Statute of. No action can be brought to charge an executor or administrator on a special promise, to charge any person upon a special promise to answer for debt, default or misdoing of another, upon an agreement made on consideration of marriage, upon a contract for sale of any interest in land, upon an agreement not to be performed within a year, to charge a discharged debtor, unless the promise, contract or agreement or some memorandum thereof is signed by the party or by his authorized agent. No agreement to make a will, or to devise or to give a legacy is binding unless in writing. No contract of sale of personal property of $500 or over is actionable unless there is part payment, acceptance and receipt of part of the goods, or some memorandum in writing signed by party to be charged or his agent. Gifts between Husband and Wife. 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; November 11th, Armistice Day: Thanksgiving Day; December 25, Christmas Day. Infants. Age of majority, male and female, is twenty-one. Infant Is liable for his torts and on contracts for necessaries. He may repudiate or ratify all contracts after reaching majority. During minority, he may sue by next friend, often called prochien ami. Insolvency. Insolvency law suspended by National Bankruptcy Act. Acts of Bankruptcy: (1) Fraudulent conveyance in order to hinder, delay, or defraud his creditors; (2) Where insolvent has trans ferred his property to one or more of his creditors with intent to prefer him or them; (3) Where insolvent has suffered or permitted a creditor to obtain a preference through legal proceedings and not having dis charged such preference at least 5 days before sale or other disposition of the property affected; (4) Made general assingment for benefit of creditors; (5) Being insolvent applied for a receiver or trustee of his property, or because of insolvency, a receiver or trustee put in charge of his property; (6) Admitted in writing his inability to pay his debts and a willingness to be adjudged a bankrupt; (7) While insolvent per mitted attachment, lien, etc., on his property and has not vacated the same within thirty days therefrom. (1927 and 1928 amendments.) Interest. Legal rate Is 6 per cent. Loans of less than one thou sand dollars, interest shall not be charged exceeding eighteen per cent. Not more than seven per cent can be charged on bonds issued by corporations. Judgments. A judgment or decree of a court of record of the United States or of any state thereof shall be presumed to be paid and satisfied at the expiration of twenty years after it was rendered. Limitation of Suits. Contract express or implied and not under seal and not otherwise limited, six years; real actions, those upon an attested note, if suit is brought by original payee or his executor or administrator, and personal actions on contracts not limited, twenty years. Absence from the State prevents the running of the statute of limitations as to a defendant uDtil he comes into the State. If the person entitled to bring an action is a minor or is insane or impris oned when the right to bring such action first accrues, such action may be commenced within the time hereinbefore limited after the disability is removed. The statute does not run against those residing out of the State. See also Administration cf Estates. Married Women. The real and personal estate of a married woman, acquired at any time, remains her sole and separate property not subject to the control of her husband, nor liable for his debts. Married women may carry on trade or business, make contracts, sue and be sued, in all matters relating to their separate property, and such contracts are not binding upon the husband. Wife carrying on business on own account must record certificate with city or town clerk; neglect to do this renders her property so employed liable for husband’s debts, and renders husband liable for her debts thus con tracted. Married Women. A married woman Is also liable jointly with her husband for debts due to the amount of $100 in each particular case for necessaries furnished with the knowledge or consent to her self and her family where she is possessed with property valued at $2,000 or more. Where a married woman performs work and labor for a third person other than her husband and children shall be deemed, in the absence of any agreement in writing to the contrary, to be performed on her sole and separate account. She may pledge her husband's credit for her support, but may also be personally liable for her purchases. Mechanic’s Liens. Subject covered by statute. General Laws Ch. 254. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mortgages of Real Estate. Power of sale mortgage is univer sally used. Foreclosure is regulated by statute, requiring publication once each week for three successive weeks in same newspaper published in town or city where real estate is situated, first publication to be not less than 21 days from date of Sale by Public Auction, and sale bars redemption. Mortgages may also be foreclosed by entry and peace able possession for three years. Real Estate; Fraudulent Conveyances are a ground for civil arrest generally. An equitable action lies to recover property that has been so conveyed fraudulently. Special attachment may be made of realty which has been fraudulently conveyed by a debtor in fraud of his creditors. (See Uniform Fraudulent Conveyance Act.—Acts & Resolves 1924, Ch. 147. Replevin Actions are the forms of actions at law by which a party can obtain possession of specific goods or chattels unlawfully taken or wrongfully detained from the rightful owner or person who is entitled to it3 possession. Before the replevin writ can be served, or before the delivery of the property to the plaintiff, a bond for double the value of the property to be replevied must be delivered to the officer before he will proceed to act under the writ. Sales of Personal Property. Uniform Sales Act adopted in 1908, is now Gen. Laws ch. 106. There is a Bills of Lading statute, (Gen. Laws ch. 108), and Gen. Laws ch. 105 relates to warehouse receipts. As to sales of $500 or over, see Frauds, Statute of. Sales of merchandise in bulk are fraudulent unless the provisions of Gen Laws ch. 106, sec. 1, are complied with. Delivery of a bill of sale is not constructive delivery of the goods. Delivery of possession of goods sold is essential as to third persons without notice who purchase same goods for value, or as to attaching creditors without notice. Vendor’s retention of possession after sale is priina 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 Stale 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 Genera) Laws ch. 190. section 15 A will may be revoked by statute in the identical manner in which the statute requires a will to be revoked. Will may be revoked by destruction such as burning, tearing, cancelling, or by obliterating it with a manifest intention to revoke the same, and it may be revoked by a formal written instrument, by a later will or by a codicil. Ordinarily marriage operates by statute as a revocation of a will unless the will was made in contemplation of the coming marriage. Witnesses. Any person, although a party, may testify in any proceedings, except that neither husband nor wife may testify to private conversations with each other, or be compelled to testify in a criminal proceeding against the other. The defendant in a criminal proceeding may testify, at his own request and not otherwise, and once he takes the witness stand in a criminal proceeding or matter, he waives all his privileges where the desired testimony tends to incriminate him, and the privilege not to give testimony has been waived. The neglect or deliberate refusal of a defendant to take the stand and testify in his own behalf shall not be a presumption against him, and the prosecution shall not comment to the jury upon the defendant’s failure to take the stand. However, where the wife is necessary to explain certain acts, or omissions in a criminal matter against her husband, if she refuses to take the stand in his defence, the district attorney is not barred from commenting to the jury as to why she failed to testify for and behalf of her husband. The communications of a client to his attorney as a legal adviser are privileged and is a personal privilege belonging to the client. The attorney over the objection of his client cannot take the stand and testify as to private conversations disclosed to him as an authority on the laws of the Commonwealth. However, if the client takes the stand, he may be interrogated as to what he told his lawyer, pro vided such evidence is within logical sequence of the rules of evidence generally. BANKING AND COMMERCIAL LAWS—MICHIGAN SYNOPSIS OF THE LAWS OF MICHIGAN RELATING TO BANKING AND COMMERCIAL USAGES Revised by Henry Wunsch and Edward F. Wcnsch, 706-710 Dime Bank Bldg., Attorneys at Law, Detroit, Michigan. (See Card in Attorneys’ List.) Acknowledgments of real estate instruments may be before one of the following officers: 1. Within this State: Any Judge, clerk or commissioner of any court of record, notary public, justice of the peace or master in chancery. The official should certify that "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 the same as his (or their) free act and deed.” Notary’s certificate must show date of expiration commission. Such instruments must have two subscribing witnesses. 2. In any other state, territory, or district of the United States: Same officials as described above or any officer authorized by the laws of such state, territory, or district, or before a com missioner appointed by the Governor or this State for that purpose. Any such instrument mav be executed according to the laws of any such other state or territory. If officer has no seal, certificate of the Clerk of the county or district, or of the Secretary of State within which taken shall be attached. 3. In any foreign country: notary public, or minister plenipotentiary, minister extraordinary, minister resident, charge d'affairs, or commissioner or consul of the United 8tates, 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 months; may be extended not to exceed two years from date; the court may revive commis sion any time before estate is closed and allow further time three months to examine any claim: an appeal to circuit courts from allow ance or disallowance of any claim. All claims barred, not presented before administration is closed:— Administration of intestate estates is granted: 1st, to surviv ing husband or wife, or kin or grantee, or such one of them*as judge mav 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 aud executors appointed in other states, territories, or foreign countries cannot sue as such In this State without procuring administration in this State. Affidavits may be taken by any judge, master in chancery, clerk of court, justice of the peace, police magistrate, notary public, or circuit court commissioner. Any oath authorized, or required to be made, without the State for use in judicial proceedings here, must be authenticated by judge of a court having a seal, and the genuineness of such judge’s signature, existence of the court, and that such judge is a member thereof, certified oy the clerk of the court under the seal thereof. If in any other state or territory, may be taken before a commissioner appointed by the governor of this State, or any 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. Aliens. 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 uebts due the bank. Savings deposits payable as directors prescribe; commercial deposits payable on demand. Banks combining commercial and savings deposits 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1879 Trust, deposits and security companies may be incorporated under the general laws of the Stare applicable thereto. Seven or more persons mav associate to establish—capita) 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 can do any banking business. Blue Sky Law. Michigan in 1915 passed an act, commonly known as the Blue Sky Law, regulating the selling of and dealing in stocks, bonds and other securities with certain exceptions of corporations, associations, partnerships and individuals, so as to prevent fraud in such dealings, and creating a Commission of three to administer the provision of the law. Under this law application must be made to the Michigan Securities Commission and the approval of the Com mission secured before such securities may be sold. Certain penalties are imposed under the law for non-compliance with its provision. The Michigan Supreme Court has declared the act to be Constitutional and valid. 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 aud 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 tbe township, city, or village where held. Conditional Sales. Are valid between the parties: if consignee or purchaser, on condition title Is retained bv 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.) Conveyances. Any person of full age or otherwise capable may convey by deed any interest in lands, whether in actual possession or not. All grants and devises of lands to two or more persons create estates in common; no joint tenancy, unless expressly so declared, except such as are made in trust or to executors, aDd 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 “convoys 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, hut 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. Business Corporations. Three or more persons may organize. One half of capital must bo 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 aSected 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 Detroit this court is now known as the Common Pleas Court. In Grand Rapids is a “Superior Court" for civil cases, limited to parties resident of the city. Probate courts in each county have jurisdiction of estates of deceased persons and testamentary trusts. Supreme court has final appellate jurisdiction from circuit, municipal and recorders’ courts. Days of Grace. Abolished. Depositions. Testimony of any witness without the State of more than fifty miles from the court may be taken de bene esse, before any judge of any state or of the United States, or of any foreign country, or before any circuit court commissioner in this or any other state, or of the United States, or any commissioner of this State, any consul or consular officer, justice of the peace officer, or notary public authorized to administer oaths in the state or county where taken and not interested as attorney or counsel or in the event of the cause; reasonable notice given in writing by party or his attorney proposing to take 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 reDresentation; if no 1880 BANKING AND COMMERCIAL LAWS—MICHIGAN Issue, husband or widow to the father and mother in equai shares, If only one living to the survivor alone. If surviving husband or widow and no issue, one-half to such survivor, remainder to father and mother or their survivor. If no issue or parents, husbands or widow, equally to brothers and sisters and the children of deceased brothers and sisters; if none such relatives, to next of his kin in equal degree through nearest ancestor; if anv unmarried child dies under age, his or her inheritance from any parent, to other surviving children of same parent and their issue by representation. If husband or wife survive and no issue, parents, brothers or sisters, or their children to husband or wife, and if no foregoing relatives whomsoever estate escheats to State. Illegitimates heir to mother; dying intestate estate descends to mother or her relatives if she be dead; become legitimate by parents, intermarriage or father's written acknowlment. The foregoing provisions for the widow are in lieu of dower and homestead right unless one year after administration granted she applies for assignment of dower and homestead in which case her interest in deceased husband’s lands is limited to the dower and homestead right and the residue shall descend as above provided for that portion not taken by her. Personal Kstate. 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 S3,000; estate excess of that, one-half excess to widow, other half to surviving parents, and if none such to brothers or sisters; and none such, all such excess to widow. Married women intestate, one-third to hus band, two-thirds to her children or their issue by representation, only one child or issue of deceased child; to husband and such child equally; if no child or issue of deceased child, one-half to husband and other half to surviving parents, and if none, to brothers or sisters or issue of them and if none, all to husband. In any other case same as for real property. Estates by curtesy abolished. Dower. Wife entitled to use of one-third part of all lands owned by her husband as estate of inheritance any time during marriage. No dower as against mortgages for purchase price, or mortgages made before marriage, except in surplus. Must exercise option to take dower in lieu of rights under will or statute within one year after administration; residing in this State and eighteen years of age and upwards may bar by joining in husband's conveyances and mort gages or by deed alone to one who has husband’s title, intent to bar being expressed; or by jointure secured as bar. Execution. May issue to any county at once, unless stayed after Judgment in circuit court, in justice courts, expiration of five days; not liens on real estate or personal property until levy by proper officer. Real estate is sold without appraisement to the highest bidder, except homestead, to determine excess of value above *1,500 redemption claim. Defendant or his heirs or assigns may redeem within twelve months, his judgment creditors and others having valid liens within fifteen months from date of sale. Execution against the body may be issued on all judgments in actions of tort. Personal property levied on. after setting off exemptions, may be sold on six days’ notice at public sale, to highest bidder to a sufficient amount to satisfy the debt and costs; no redemption after such sales. Execu tions from justice courts do not run against real estate. Exemptions. Homestead—selected by the owner and occupied by him; not exceeding forty acres of land and dwelling thereon; or one lot with dwelling thereon within any recorded town plat or city or village not exceeding in value $ 1,500. Same cannot be alienated or Incumbered without consent of wife or sold on any execution or any other final process from any court, unless appraised to exceed the value of *1,500 and that amount is paid or realized on sale under such process. Exemption of homestead continues during its occupa tion by the widow or minor children of deceased person who when living occupied the same. Fraud. Criminal fraud—obtaining the signature of any person, Arm, or corporation with intent to defraud. Fraudulently issuing or selling or duplicating and disposing of any stock, scrip, or evidence of 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 iersonal property by any agent delivered upon written agreement or nstructions; 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, tilings in action, equitable Interests, held by fraudulen t 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 $8 for his personal labor, and of any other person for labor not more than $15 and not less than $4; 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 midnight, all National. State. County, or City election days. When Christmas or any similar holiday falls on Sunday, the following Monday the lega Iholiday. 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. f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. Lega) 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 land to the extent of the interest of such owner, etc. Any person, artisan, or tradesman for labor and skill applied upon any property delivered for that purpose shall have a prior lien for amount due for such labor. Hotels, boarding houses and lodging houses have a lien upon baggage and other valuables of guests, boarders or lodger for accommodations. Any person keeping and caring for domestic ani mals intrusted to them for that purpose have a lien for proper charges. Limitation of Suits. 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, guardian’s or sheriff’s deed; five years where the defendant claims and is in pos session of lands under deed made by auditor general of this State for taxes; ahd 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. Genera) 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 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 advertisemenl 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 certaiu 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 holder. 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. Dnconditional 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 presented reasonable time after issue, and If dishonored notice must BANKING AND COMMERCIAL LAWS—MINNESOTA be given or drawer is discharged to extent of toss caused; does not operate to assign any part of drawer's funds; bank is not liable unless It accepts or certifies. If bolder 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, the power of attorney must be in writing signed, sealed and acknowledged same as a deed of lands, to be admitted for record or to proof thereof. Probate Law. (See Administration of Estates.) Protest. (See Negotiable Instruments.) Replevin. Goods or chattels wrongfully takeu 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 Hied 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 bv testator or by some person in his or her presence duly authorized by him or her and attested and subscribed in his or her presence by two or more witnesses competent as such at the time. If one of the subscribing witnesses shall testify to the execution of the will in all particulars and testa tor was of sound mind at the time will was made, the court may admit the will, in case no person appears to contest ft; 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 the manner provided for execution of wills but shall prevent revocation implied by law. SYNOPSIS OF THE LAWS OF MINNESOTA RELATING TO BANKING AND COMMERCIAL USAGES Revised by Oppenheimer, Dickson, Hodoson Brown & Donnellt Attorneys at Law. Merchants National Bank Bldg., St. Paul. (See Card in Attorneys' List.) Acknowledgments may be certified by the following officers: X. 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 Beal of said corporation and that said instrument was executed in behalf of said corporation by authority of its board of directors, and said A. B. acknowledged said instrument to be the free act and deed of said corporation." If made outside the State the impression of the official seal of the certifying officer must be affixed, or there must be attached the certificate of the clerk of a court of record of the county or district in which it is made under his seal that the signature of the certifying officer is genuine. Actions. The distinction between actions at law and suits In equity is abolished. There is only one form of action. It is called a civil action and must be prosecuted in the name of the real party in interest except that executors, administrators, trustee of an express trust and persons expressly authorized by statute may sue without joining the person for whose benefit the suit is brought. Administration of Estates. Estates of deceased persons are administered in probate courts of which there is one in each county presided over by the probate judge of the county. In granting letters of administration preference is given; 1. To the surviving spouse or next of kiri 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1881 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.) Arbitra tion. 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 $8,000 in one over 5,000 and not over 100,000, and at least $50,000 and a surplus of at least $10,000 in one over 100,000; 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 of 20% of the capital must be maintained unimpaired. No State Bank or trust company shall pay interest on deposits at a greater rate than four per cent per annum, provided that interest at that rate per annum may be credited or paid on savings accounts quarterly or semi-annually, and interest at that, rate per annum may be paid on certificates of deposit not oftener than every six months; and providing that any person or officer who knowingly or willfully accepts deposits with an agreement on the part of the bank or trust company to pay a larger rate of interest than as so provided shall be guilty of a misdemeanor. (See Laws of Minnesota for 1929, Chapter llt\) Every bank must make to the commissioner of 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 matured 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 commissioner 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 June 1, 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, investment contract, interest in or unuer 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 of 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 operat ing 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 creat ed 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 tne NewVork Stock Exchange. Boston Stock Exchange, Chicago Stock Exchange, which securities have been so listed pursuant to official authorization by such exchange, and ail 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 shal1 remain in effect; (6) Commercial paper or negotiable promissory notes matur ing within six months from the date of issue; (7) Securities of certain corporations organized for religious, educational and charitable pur poses, 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 livestock purposes. Certain sales are exempt, such as isolated sales; sales of notes or bonds secured by a mortgage lien when the entire lien, together with all notes or bonds secured thereby, is sold to a single purchaser 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 1882 BANKING AND COMMERCIAL LAWS—MINNESOTA 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 tiled, may be (lied 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 ana mortgagees in good faith the lien does not continue beyond the term of six years from the date of filing the mortgage unless the indebtedness is not then due and payable by its terms, in which case it continues two years after the maturity of the debt and no longer Every mortgagee of a chattel mortgage shall at the time of its delivery make and deliver to the mortgagor a full, true and complete copy of such mortgage. No register of deeds nor city clerk is allowed to receive or file any chattel mortgage which does not contain a receipt of the signer of the mortgage to the effect that a copy of such mortgage has been received by him. Chattel mortgages given by a married man or woman on property exempt from execution must be executed by both husband and wife if living. Conveyances. Deeds and mortgages of real estate must be exe cuted in the presence of two subscribing witnesses and to entitle them to record must be acknowledged by the person executing the same. Conveyances made out of the State, may be executed as above, or according to the laws of the place of execution. Corporations. 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 two successive weeks in a weekly. Sec. 3. The Legislature shall have power from time to time to provide for, limit and otherwise regulate the liability of stockholders or members of corporations and co-operative corporations or associa tions, however organized. Provided every stockholder in a banking or trust corporation or association shall be individually liable in an amount equal to the amount of stock owned by him for all debts of such corpora tion contracted prior to any transfer of such stock and such individual liability shall continue for one year after any transfer of such stock and the entry thereof on the books of the corporation or association. 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 al 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. 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. Oescent 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 iu 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 request of judgment creditor or his attorney. Personal prop erty is sold on ten days posted notice: real estate on six weeks pub lished notice, and subject to redemption by judgment debtor, his as signees and creditors of a deceased mortgagor who have proved their claims in probate court may redeem within one year from the date of the foreclosure sale. 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 uot 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 oue year’s https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 ol 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 ail 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 aud 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 iien. Action to foreclose the lien must lie 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. l!ut 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 begun within one year after the rendition or entry thereof. Married Women. Property acquired by wife before or after mar riage remains her separate estate. It is liable for her debts and torts to the same extent as if she were unmarried, and she may make any contract which she could make if unmarried, except that no convey ance or contract for sale of her homestead or any interest therein is valid unless her husband joins in the same. Both husband and wife are liable for necessaries furnished to and used by the family. Mori gages 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, his assigns, and creditors of a deceased mortgagor who have proved their claims in probate court may redeem within one year from the date of the foreclosure sale. 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 tiad. 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, id case the maturity of any portion of the debt so sec.ureo shall be fixed at a date more than five years and sixty days after the date of said mortgage, the amount of such Registry Tax shall be at the rate of 25 cents on each $100. No such mortgage or assignment or satisfaction thereof or papers relating to its foreclosure, shall be recorded or regis tered unless such tax has been paid, nor shall any such document or record thereof be received in evidence in any court or have any validity as notice or otherwise. No mortgage nor papers relating to its fore closure, nor any assignment or satisfaction thereof shall be recorded or registered after the passage of the act, unless said tax shall have been paid; nor shall any such document or any record thereof be received in evidence iu any court or have any validity as notice or otherwise; but if the tax be paid, no error in computation or ascertainment of the amount thereof shall affect the validity of such mortgage or the record or foreclosure thereof. The underlined portion constitutes new taw.— (See Session Late of Minnesota for 192.9, Chapter 222) If such mortgage describe real estate outside of Minnesota, such tax shall be imposed upon such proportion of the whole debt securea as the value of the real estate described in this Stat* bears to the value of the whole real estate, such value to be determined by the State Auditor upon application of the mortgagee. Notes and Hills 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. Right to Hold Property. No person unless he be a citizen of the United States, or has declared his intention to become a citizen, and no corporation unless created under the laws of the United States, or of some state thereof, shall acquire lands exceeding 90,000 square feet, except by devise, inheritance, or through security for indebtedness. This does not apply to actual settlers on farms not exceeding 1G0 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. BANKING AND COMMERCIAL LAWS—MISSISSIPPI But this does not apply to lands acquired in the collection of debts nor to a person or corporation engaged in selling lands to actual settlers, or engaged in manufacturing in Minnesota while so engaged. Such persons or corporations not so engaged must sell what they had April 13, 1911, within ten years from that date and sell what they acquire subsequent to that date within ten years after they acquire it Sales of Goods. The Uniform Sales Act became effective April 20 1917. Securities Commission. See Blue Sky Law, Taxes. Personal property is assessed once a year; real estate every two years. Taxes on both classes of property are levied every year. Taxes on real estate constitute a prior lien. Land on which taxes not paid sold on second Monday in May each year. 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 hi 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 annual tax of three mills on each dollar of the fair cash value thereof Moneys and credits belonging to incorporated banks located within the state are exempt. Real estate mortgage Indebtedness is exempt from the moneys and credits tax; but is taxed under the mortage registry tax law at the rate of 15 cents per hun dred, except where the indebtedness or a portion thereof runs for a longer period than live 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 & Barbour, Attorneys at Law Capital National Bank Bldg., Jackson. Miss. (See Card in Attorneys’ List) Accounts. Sworn to and filed at commencement of suit entitles plaintiff to judgment, unless defendant files affidavit denj ing, or proves on trial that he never entered into any contractual relation. The affidavit must be by the creditor or his agent on actual knowledge, affidavit on information and belief not sufficient. All accounts must be itemized. Acknowledgments before any judge, clerk of a court of record under his seal, justice of the peace, notary public, or member of the board of supervisors, before any police justice, or mayor of any city, town, or village. Acknowledgments in another state may be before any of the judges of the supreme court, or any district judge of the United States, or a judge of the supreme or superior court in any state or territory, any justice of the peace, whose official character shall be certified to under the seal of some court of record in his county, or by any commissioner residing in such state or territory, appointed by the governor of Mississippi, or a notary public or a clerk of a court of record having a seal of office. Acknowledgments or proof of deeds to property in this State by persons in a foreign country may be made before any court of record, or the mayor or chief magistrate of any city, borough, or corporation where the grantor or witnesses reside, or may be, or before any commissioner appointed by the gov ernor of this State, or before any ambassador, foreign minister, sec retary of legation or consul of the United States. The certificate shall show that this party or party ana witness were idontifleo before the officer, and that the party acknowledged t$ie 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 triablo in the circuit court and in county court where amount in controversy exceeds $200.00 at first term in which the defendant has been personally served with process thirty days before the return day. Mandamus, quo warranto, mechanics’ liens, attachments, and replevin triable at return term 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. All 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. Allens. No restrictions on the rights of resident aliens to acquire property or dispose of it. Non-resident aliens can not hold land, but may take liens thereon to secure debts and purchase at foreclosure thereof, and thereafter hold it for not longer than twenty years, with power to sell to a citizen in fee; or he may retain it by becoming a citizen. See title “Corporations.” Appeals from justice court to circuit or county court within ten days. From county to circuit ten days. From circuit and chancery courts to supreme court within six months, but notice to stenographer must be given within ten days after adjournment of Court, in order to incorporate evidence in record. Appeals also in certain cases from board of supervisors and municipal courts. 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 by bankrupt law. for seded FRASER Digitized https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1883 Attachment. Against a debtor who is a non-resident, or who removes or is about to remove himself or property out of the State: who so absconds or conceals himself that he cannot be served with a summons: or who incurred the debt in conducting the business of a ship, steamboat or other 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 as to his or its financial condition.” Attachments for debts not due aliowed for last six grounds—or when the creditor has just cause to believe that the debtor will reniovo himself or his effects out of State before debt will be due, with intent to defraud. Non resident creditors have the same rights of attachment as resident creditors, whether the debtor be resident or non-resident. Plaintiff musi furnish bond double the debt and make affidavit as to one or more grounds. Suit does not abate on verdict for defendant, on a plea deny ing grounds; but judgment on the debt, to be offset by damages in favor of defendant for wrongfully suing out attachment. Any credi tors may intervene and contest ground of attachment. Attachment in Chancery on bill against the property, or debts of an absent, non-resident, or absconding debtor. A lien is acquired by the suit. If a writ for the seizure of goods is obtained, bond is required. Available to non-residents. Bad Check Law. The maker of any check, draft or 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 nor 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. Branch Banks. May be established in corporate limits of city not less than 10,000 which is domicile of parent bank on certificate of convenience from superintendent of banks. Parent bank must devote $10,000 for exclusive use of each bank. 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 except savings banks 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 mouths 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 four 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. Trust company may 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 one-tenth 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, state of Mississippi or subdivision thereof. 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 for a stated period not exceeding twelve months are valid, but not on a changing stock of goods if the mortgagor remain in possession and continue business. Reservation of title by the seller of a chattel to secure purchase money is valid without record, save against purchasers without notice, where seller leaves chattel more than three years with buyer, except as to chattels used or acquired in the business of a “trader." Banks, professional men and manufacturers are not traders. Collaterals. General law prevails. Contracts for sale of land, or for lease for more than one year, to be in writing. Same in regard to sale of chattels of the value of more than $50, unless delivery in whole or in part is made, or pay ment in whole or part is made. Gambling contracts and ordinary con tracts made on Sunday void. Contracts by foreign corporations who have not complied with registration of charter law are void. Conveyances. May vest title presently or in future. All estates in land greater than for one year must be by deed, and to affect pur chasers without notice must be recorded. Corporations must file all 1884 BANKING AND COMMERCIAL LAWS—MISSISSIPPI 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. Kuie in Shelly’s case abolished. Remainder good without particular estate. The words “grant, bargain, and sell" operate as a covenant that grantor is seized of some estate of inheritance. Words "convey and warrant" operate as a general covenant of warranty. The words “convey and warrant specially” operate as a warranty only against the grantor or those claiming under him. A quitclaim deed has practically the same effect. Hus band and wife, if living together must join in conveyance or incum brance of homestead of either, or it will be void as to all under $3,000. Corporations. Corporations except for the construction and operation of a railroad other than street railroads, and the carrying on of an insurance business, other than mutual insurance, may be created under a general charter. Application for charter signed by each (not less than two) of the Incorporators and acknowledged. It must then be published one time in one or more newspapers at the domicile of the proposed cor poration. The application must be forwarded to the secretary of state together with the fee for recording, and he must refer the same to the attorney general for his opinion as to the constitutionality and legality of the proposed corporation, after which it is referred to the governor for his approval or disapproval. The governor then returns It to the secretary of state with his action endorsed thereon. If he approve it, the secretary of state shall record it in his office and certify to the same and transmits it to the applicants. Charter must be published one time, within thirty days after it is granted, in county where domiciled. It must be recorded in the office of the clerk of the cnancerv 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 and file power of attorney with the secretary of state designat ing him or some agent as person to accept service of process for it. Charter must be certified by the president and secretary or other chief executive under the corporate seal. All corporations, domestic and foreign are now subject to an annual franchise tax, which shall be calculated at the rate of $1.00 per $1,000 or part thereof, of its capital, as at December 31st of the year preceding that for which the return is filed, if a calendar year, or as at the last day of the fiscal year. Costs. Non-resident or insolvent plaintiff required to give security though an insolvent citizen may sue in forma pauperis. Courts. Terms and Jurisdiction. Justices’courts meet twice each month; circuit and chancery courts in each county 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. County Court created, effective January 1st, 1927; concurrent jurisdiction with Justice and Circuit Court in mis demeanor 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 juris diction would have been except for county court. Certain counties only have said court. County courts meet monthly. Chancery courts have jurisdiction of the administration of estates of deceased persons, of minors’ business and other probate matters, and of all matters in equity. Appeals may be taken to the supreme court from any final judgment of the circuit court, and from the chancery court, except in suits for not more than $50 originating in the justice's court. 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 con verso. Creditor’s Bills may be filed under general Laws to subject equi table assets and in aid of execution at law. Such suits may, under the statute, be filed to subject property of a debtor fraudulently conveyed without a judgment and return of nulla bona; and this whether com plainant’s debt is due or not. No bond is required unless a sequestra tion is desired. Curtesy and Dower. 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 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 U no one to inherit property escheats. Illegitimates inherit from the mother and from her other children and her kindred. Children of illegitimates and their descendants inherit from brothers and sisters of their father or mother and from grand parents. But children of Illegitimates do not inherit from any ancestor or collateral kindred if there be legitimate heirs of such ancestor or collateral kindred, in the 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 tenant* In common. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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 ah persons, including pictures, drawings, and paint ings, not exceeding five hundred dollars in value; also the instrument* of surgeons and dentists, used in their profession, not exceeding two hundred and fifty dollars in value. The arms and accoutrements of each person of the militia of theState. All globes and maps used by the teachers of schools, academies, amt colleges. The following property of each head of a family, to be selected b» 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. New public utility corporations may be exempt from certain taxes for five years. 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. Holidays are January 1, January 19 (Lee’s birthday), February 22, April 20, 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. BANKING AND COMMERCIAL LAWS—MISSOURI 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, and Homestead.) Insolvency. No general insolvent laws, but insolvent estates of decedents are divided among creditors pro rata. In case of insolvency partnership property is applied first to partner ship debts, and e converso. Interest. Legal rate 6 per cent per annum, and money loaned at not exceeding that rate is exempt from any taxes, but parties may contract in writing for 8 per cent; when more is stipulated or collected all interest is forfeited. When above 20 per cent interest and prin cipal forfeited and pavments forfeited. Judgments enrolled become liens on defendant's property within the county. A junior judgment creditor may obtain priority as to property levied on by him, if, after ten days’ notice, the senior judg ment creditors fail to issue executions. Lien of judgment continues seven years. Jurisdiction. (See Courts.) Liens. Lien of an enrolled judgment, of mechanics and material men, of landlord and laborer on agricultural products, and keepers of hotels, inns, boarding houses and restaurants, and stablekeeper’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 vears 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 Dills. Uniform Negotiable Instruments Law adopted and now operative. (See Holidays.) Partnership. Few statutory provisions. Governed by general law. In case of insolvency, partnership property must go to pay firm debts, and e converso. Provision made for limited or special partnerships. Powers of Attorney. May be acknowledged or proved and recorded as deeds. May be revoked in like manner. Conveyances of land or other property under powers of attorney are valid. Redemption. No redemption from sales under mortgage, execu tion, or other judicial sale. Two years allowed for redemption of land sold for taxes, saving to minors and persons non compos mentis a like period after removal of disability. 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 sick 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, save charitable trust of personalty void. Provisions made for renouncing will by surviving busband or wife in certain cases. Probated in common form may be contested within two years. One who kills another cannot take under his will- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1885 SYNOPSIS OF THE LAWS OF MISSOURI RELATING TO BANKING AND COMMERCIAL USAGES Revised by Clark, Boggs, Cave & Peterson, 317 Guitar Building, Columbia, Missouri. (See Card in Attorneys’ List) Absentees. Statute provides for presumption of death after absence from the state by resident for seven years. This statute does not exclude the common law presumption of death arising from an unexplained absence for seven years of a nonresident of the state. Accord and Satisfaction. An unliquidated or disputed claim may be discharged by the payment of a lesser amount. An un disputed liquidated claim cannot be so discharged regardless of agreement that such payment should be accepted in full satisfaction. . Accounts. Items of account need not be set forth in petition but if they are not, an itemized statement of account must be attached thereto. If the items are not set forth in or attached to the petition the plaintiff is precluded from giving evidence thereof. (R S 1919 1258). Where itemized statement of account is served on defendant’ case may be tried upon fifteen days service. Otherwise thirty days service is required. Where copy of account is served on defendant, failure to answer is considered an admission and final judgment mav be rendered. (R. S. 1919, 1225). Acknowledgments. Acknowledgments of instruments affecting real estate must be made before one of the following: (a) Within the State; Before some Court having a seal or some judge, justice of the peace or clerk thereof, a notary public or some justice of the peace of the county m which the real estate is situated. If before a notary public, the acknowledgment must show the date the notary publics commission expires; (b) Out of the state and in the US Any notary public; any court having a seal, or the clerk of such court' or any commissioner of deeds of the state of Missouri; (c) In foreign countries: Any court having a seal, or the mayor or chief officer of any .cny, of town having an official seal, or a minister or consular official of the United States, or a notary public having a seal. Notaries public must have a seal. It is not necessary for a United States Consul to certify to the official character of a notary public or other officer taking an acknowledgment in a foreign country; (d) Proof by subscribing witness: Subscribing witnesses are not necessary to validity of a deed. If a deed is attested by subscribing witnesses and not acknowledged by the grantor, proof of its execution may be by the testimony of a subscribing witness; (e) Forms of Acknowledgment The following forms of acknowledgments are authorized in this state; State of Missouri............1 County of..........................Jss’ On this. .... .day of........ .. 19.., before me personally appeared AB (AB and CD, his wife) to me known to be the person (persons) described in and who executed the foregoing instrument and acknowledged that he (they) executed the same as his (their) free act and deed. (If the grantor is single, add “and the said AB declares himself to be single and unmarried"). IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year aforesaid. My commission expires........... day of....................... 19. .. (Seal) „ „ „Notary Public State of Missouri............ 1 County of..........................Jss‘ On this........... day of....................... 19. ., before me appeared AB, to me personally known, who being by me duly sworn (or affirmed) did say that he is the president (or other officer or agent) of...................... a corporation, and that the seal affixed to the foregoing instrument is the corporate seal of said corporation and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors; and said AB acknowledged said instrument to be the free act and deed of said corporation. IN WITNESS WHEREOF, (as above form). In case corporation has no seal, omit the words "The seal affixed to said instrument is the corporate seal of said corporation”, and add “and that said corporation has no corporate seal.” When required, a certificate as to a Notary Public’s authority is obtained from the county clerk. Actions. Suits for the collection of debts are brought by sum mons, either in the county in which defendant resides, or in the county within which plaintiff resides, and defendant can be found, or where there are several defendants, in any county in which one of them resides, or, where all the defendants are nonresidents, then in any county. There is but one form of civil action, the practice being under a code. A nonresident plaintiff must file the written undertaking of a responsible person, resident of the state, or a deposit of money in court sufficient to cover the costs to accrue. Absent such security, the attorney is liable for the costs incurred. Suits cannot be instituted in the name of a firm. Attachment in aid of summons may be obtained at any time on compliance with the statute. There is no process provided for the detention of a debtor who is about to leave the state. All contracts made in this state which by common law are joint only are declared by statute to be joint and several, and the parties may be so sued. The assignee of a negotiable note or account may sue the surety of the obligor, maker or debtor if he has used due diligence in instituting suit against obligor, or if the obligor be insolvent or a nonresident of the state. A cause of action accrued under the laws of any other state may be brought in Missouri by the persons entitled to the proceeds of such action,provided such person could bring tiie action by the laws of the other state. If the person entitled to the benefit is not so authorized, then the person authorized under the laws of that state may sue. Administration of Estates. The probate court in each county has jurisdiction of the settlement of estates of deceased persons. In granting letters of administration, priority in right is given as follows: (1) to the husband or wife; (2) to one or more of the distributees of the estate according to the discretion of the court. 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, in the discretion of the Court. Nonresidents cannot be executors or administrators, nor may nonresident executors or administrators maintain an action in this state. A separate ad ministration is necessary in this state where a nonresident decedent owned real estate, but not where the estate is personalty, if the legal representative files in the proper probate court, a properly authenticated copy of evidence of his authority with an affidavit that the deceased did not own any real estate in the state and is not in debted to any resident of Missouri. A creditor of such nonresident may thereafter have administration of the estate under certain conditions. Executors and administrators are required to give bond in double the amount of the personal property, with two or more sureties, residents of the county, unless the testator by will requests executor be not required to give bond, but in such cases, the court in its discretion may require bond. Classification of priority of demands against deceased’s estate must be filed within one year and must be accompanied by an affidavit that they are justly due and there are no set-offs. They bear interest at the rate of six per cent 1886 BANKING AND COMMERCIAL LAWS—MISSOURI after allowed. Demands are classified as follows: (1) funeral expenses; (2) expenses of last sickness, wages of servants, claims for medicines and medical attendance during last sickness. Also cost of tombstone if allowed by Court; (3) all debts, including taxes due the state, county or any town in state; (4), all judgments rendered in life time of deceased; (5) all demands without regard to quality which shall be legally exhibited against the estate within six months after granting of the letters; (6) all demands exhibited after the end of six months and within one year. The period of one year begins to run from the date of the letters where notice is published within ten days, and in all other cases, from the date of the first, insertion of publication of notice. The demands must be presented to the executor or ad ministrator at least ten days before commencement of term at which demand is intended to be presented, but notice may be waived. Executors and administrators are required to make first settlement at end of six months from date of appointment and the second settle ment at the first term after the end of one year. If estate is not closed in one year, annual settlements are required. Aliens. 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. The Statutes of Missouri provide for agreement to arbitrate, method of submission and entering of judgment thereon. This proceedure is seldom used. Arrest. There can be no arrest for debt in Missouri. Assignments. All contracts for the sale of lands, all judgments and decrees recovered in court, all choses in action arising on con tract are assignable at law, and the assignee may sue thereon in his own name, but is subject to all defenses available against the assignor. Assignments for benefit of creditors may be either under the statute or by an assignment in the nature of a chattel deed or trust wherein the property is conveyed to the trustee to be sold for the benefit of all creditors. If made under the statutes, the assignee must give bond and the assignment is administered by the circuit court. Claims due the State of Missouri and wage claims earned within three months and not in excess of One Hundred Dollars are preferred claims. Voluntary assignment does not release debtor unless provision is made therefor with the creditors. Attachment. An attachment may be obtained at any time by resident or nonresident plaintiff on any of 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 M issouri. 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 0. 1'hat 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. S. That the defendant has fraudulently concealed, removed or disposed of his property and effects so as to hinder and delay his Crt)/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. An affidavit must be made by the plaintiff, his agent or attorney, and bond is required in double the amount, except where the defendant is a nonresident. If a nonresident defendant answers, plaintiff must give bond. Suit may be either instituted by attachment or if an affidavit is filed after suit instituted, the writ will issue. Real estate is attached by filing notice in the Recorder’s office but the officer must take actual possession of personal property. Any person may intervene and claim attached property. Attachment for Kent. 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. 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 lass 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 eircumstancs, 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; https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 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. The Legislature of 1929 passed an Act entitled “Bank Collection Code,” which Act defines the powers and liabilities of agent and sub agent of depositors, also defines the matter of restrictive endorsement and lays down definite rules governing deposit, for collection, liability of collecting bank. The Act concludes with a well considered Section covering the duties of Receivers or other officers in matters of col lections. Bonds. Two sureties are required on most penal bonds. Domestic corporations or foreign corporations, having complied with Missouri law organized as surety company and having a paid up capital of not less than Two Hundred Thousand Dollars may become sureties on penal bonds and when such corporation surety is accepted no other is required. 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 waiting, 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. The Legislature of 1929 enacted a law covering the matter of error or initials of grantor or grantee in conveyance. Such documents will be received in evidence until the contrary is shown that error exists. Corporations are formed under general law. Stock may be either par value or non par value as desired by the incorporators. Cor porations with stock of par value must have a capital not less than $2,000, at least ten per cent of which 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. In case of corpora tions with stock of no par value, it is only necessary for the incor porators to state the amount of capital with which the corporation will begin business. The stock may be either common or preferred. The dividends on preferred stock shall not exceed eight per cent annually. Cumulative voting is permitted. Number of directors must not be less than three nor more than twenty-one; at least one of them must be a citizen and resident of the state. A stockholder having paid for his stock in full is subject to no further liability. All no par stock is presumed to be fully paid and is non-assessable. The bonded indebtedness of a corporation 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. The number of directors may be increased or decreased by vote of the stockholders. Perpetual charters may be issued. A corporation may buy and sell its own stock and the stock of other corporations. Corporations owing no debts may be dissolved by unanimous vote of all shareholders, or it may be dissolved by decree of a circuit court upon petition of the directors or the holders of a majority in amount of outstanding shares of stock if such corporation be insolvent or of the persons holding two-thirds in amount of outstanding stock whether such corporation be solvent or insolvent, or upon the petition of the holders of at least ninety per cent in amount of outstanding stock for any reason that they deem sufficient. Upon decree of dissolution, the affairs of the corporation are wound up by the directors under order of the court. A corporation pays annual franchise tax equal to one twentieth of one per cent of the par value of its outstanding capital stock and surplus, or if such capital stock, or part thereof, consists of no par value stock, such stock is considered as having a value of five dollars per share unless the actual value of such shares shall exceed five dollars each, in which case the tax is levied on the actual value and the surplus. No stocks, bonds and securities (a few securities excepted) may be issued and sold by any corporation, unless a permit is granted therefor by the supervisor of corporation registration who administers the Missouri Securities Act under the direction of the secretary of state. 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 UnitedStates before being authorized to transact business in this State must have a public office in the State, where books shall be kept, showin
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