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DIGEST OF BANKING AND
COMMERCIAL LAWS
Compiled Expressly for

T H IS ED ITIO N O F

T he R and -McNally Bankers ’D irectory
by

T hose Prom inent Law yers W hose N am es A p p ea r at the
H ead of the Law s of E ach State

The Following States Have Put in Operation
THE
State

A lab am a...........
A rizon a.................
Arkansas ...............
C olorado...............
C o n n ecticu t.........
Delaw are...............
D ist. of Columbia
Florida...................
H aw aii...................
Id a h o ............. ..
Illin o is...................
In d ia n a .................
Iow a........................
K ansas...................
K entucky . . . . . . .
Louisiana...............
M a r y la n d .............
M assachusetts . ..
M ichigan...............
M innesota.............
M isso u ri...............
M ontana........... .....
Nebraska...............

 8 8
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

NEGOTIABLE

INSTRUMENTS

In Effect

Jan. 1 ,
Sep. 1 ,
.April 22,
July 19,
.Apr. 5.
Jan.
1,
■Apr. 3,
.Aug. 3,
.Apr. 20,
,Mar. 10,
July 1 ,
.April 1 ,
July 4,
June 8,
•June 13,
Aug. 1 ,
June 1 ,
Jan. 1 ,
Sep. 16,
April 24,
June 16,
Mar. 7,
Aug. 1 ,

1908
1901
1913
1897
1897
1912
1899
1897
1907
1903
1907
1913
1902
1905
1904
1904
1898
1899
1905
1913
1905
1903
1905

S ta t e

LAW
I n E ffe c t

N evada ........................ ........................... .... .M ay
1, 1907
N ew Ham pshire............... .......... ................ Jan.
1, 1910
N ew J e r se y .
..................................... , .July 4, 1902
N ew M exico............... ..................... ......;. .M ar. 21, 1907
1, 1897
N ew Y ork......................................... ............ Oct.
North Carolina.............................................Mar.
8, 1899
North D a k ota...........................
.July
1, 1899
O h io..............................
.......Jan.
1, 1903
O klahom a........................................
.July 20, 1909
Oregon. . . . . . . ; ..............
M ay 19, 1899
Pennsylvania .
Sep.
2, 1901
P h ilip p in e s.............................
M ay 31, 1911
Rhode Island . . . ' ...........................................July 1, 1899
South C arolin a............................................ Mar. 25, 1914
South D a k ota....................................
July
1, 1913
T en n essee.....................
M ay 16, 1899
U ta h .................
July
1, 1899
V e r m o n t.......................................................... Feb. 13, 1913
V irgin ia..................................
....July
1, 1898
W ashington....................................................J une
7, 1899
W. Virginia................................................... Jan.
1. 1908
W isconsin................................................. , . M ay 15. 1899
Wyoming ...................................................... Feb. 15. 1905

For Tabulated Information see Page 14 and Negotiable
Instruments Map opposite Page 12

1385

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

D ates of R eg u lar M eetings
of L e g isla tu re s
Alabam a_____ _
A laska__ ______
A rizona_______ _
Arkansas___ __
California________
Colorado_________
Connecticut______
Delaware_________
District of Columbia
Florida___________
Georgia _ o __ _
Hawaii ______ ____
Idaho____________
Illinois___________
Indiana__________
Iowa________ _____
Kansas_________ __
Kentucky. __________
L ouisiana_______ _
Maine____________ _
M aryland_________
Massachusetts_____
Michigan__________
Minnesota_______ _
Mississippi-__ ______
Missouri ________ <13
M ontana_____ f____
Nebraska__________
Nevada ___________
New Hampshire___
New Jersey________
New Mexico____ __
N ew York__ ______
North Carolina_____
North Dakota______
O hio___________ __
Oklahoma_________
Oregon____________
Pennsylvania______
Rhode Island______
South Carolina_____
South Dakota______
Tennessee_„ _____
T exas_____________
U tah________ _
V erm ont__________
Virginia___________
Washington „ :___
W est Virginia ______
W isco n sin ________ _
W yom in g_________

—January, 1915, and every four years.
__A Territory.
—January
------------------ Every odd year.
_-January
------------------Every odd year.
_ January
- —------------ Every odd year.
—January
■—— -----:— Every odd year.
_ January
- -------- —----- Every odd year.
„January
--------------- Every odd year.
. Under U. S. Government.
. April _ _ ----------------- Every odd year.
—June _ _ __— | rJLj-----Every year.
—February
— ___—— Every odd year.
—Tanuary
----------------- Every odd year.
._Tanuary
----------------- Every odd year.
—January..
-----------------Every odd year.
—January
-----------------Every odd year.
-January
-----------------Every odd year.
—January__ --------------—Every even year.
. May______ ------ 3------ —Every even year.
—January
— ------------ Every odd year.
.January
-----------------Every even year.
-Tanuary _ —--------------Every year.
-January
-----------------Every odd year.
-January
-----------------Every odd year.
-January
-----------------Every even year.
-January
— ----- -___Every odd year.
-January
—
—
— l-----Every odd year.
-January
---------------- Every odd year.,
-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.
-Tanuary
— Every odd year.
-January
— -------- — Every odd year.
-January
---- ----------- Every odd year.
-January
Every odd year.
-January
------ Every year.
-January
.___— — Every year.
-January
1----- Every odd year.
-January
------— _-Every odd year.
.Tanuary.
----- Every odd year.
.January
—-------- Every odd year.
-October
— | — ------- Every even year.
.January
---------------- Every even year.
.January
----— Every odd year.
.January
--------- ----- Every odd year.
January
1-------- — -Every odd year.
.January
--------- .----- Every odd year.
1386

DIGEST OF BANKING AND COMMERCIAL LAWS
C O M P IL E D E X P R E S S L Y F O R E A C H E D IT IO N O F T H E R A N D -M c N A L L Y B A N K E R S ’ D IR E C T O R Y

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:

F o r T a b u la te d I n fo rm a tio n , f o r q u ic k referen ce in regard to Interest Rates, Days of Grace,
Damages for Protested Bills, Statutes of Limitations; NegCtiable Instruments, and Holidays, see p ag e 14 a n d
M ap b etw een pages 1 2 a n d 13. T h e N egotiable I n s tr u m e n ts Law h a s b een a d o p te d in th o se S ta te s
w hose n a m e s a re p r in te d in R ed o n t h a t M ap.
S Y N O P S IS OF

THE LAW S OF ALABAMA

o f p a y m e n t is g iv e n to o n e o r m o r e c r e d ito r s , s h a ll e n u r e to t h e b e n e f it
o f a ll t h e c r e d ito r s e q u a lly , b u t th i s s e c tio n s h a ll n o t a p p l y t o m o r t­
g a g e s, p le d g e s , o r p a w n s g iv e n to s e c u r e a d e b t c o n t r a c te d c o n te m ­
p o r a n e o u s ly w ith t h e e x e c u tio n o f t h e m o r tg a g e . A ll a s s ig n m e n ts .by
a d e b t o r m a d e w ith i n t e n t to h in d e r , d e la y , o r d e f r a u d c r e d ito r s ar®
v o id . A ll d e e d s o f a s s ig n m e n t f o r t h e b e n e fit o f c r e d ito r s s h a ll, a *
s o o n a s e x e c u te d , b e filed a n d r e c o r d e d in th e office o f t h e ju d g e
p r o b a t e o f t h e c o u n t y in w h ic h t h e p r o p e r t y is s itu a te d . E v e r y
ju d g m e n t c o n fe s s e d , a t t a c h m e n t p r o c u r e d b y t h e d e b to r , o r o t h e r d is ­
p o s itio n o f p r o p e r t y b y w h ic h a d e b t o r c o n v e y s a ll, o r s u b s t a n ti a ll y
a il, o f h is p r o p e r t y w h ic h is s u b je c t t o e x e c u tio n in p a y m e n t o r a s
s e c u r i ty f o r a d e b t s h a ll b e d e e m e d a g e n e ra l a s s ig n m e n t.
A t t a c h m e n t p ro c e s s w ill is s u e u p o n a f f id a v it b y th e c r e d i to r o r h is
a g e n t o f t h e a m o u n t d u e a n d t h a t t h e d e b t o r a b s c o n d s , o r re s id e s ,
o u t o f t h e S ta t e , o r s e c r e te s h im s e lf so t h a t p ro c e s s c a n n o t b e served!
u p o n h im , o r is a b o u t to r e m o v e o u t o f t h e S ta t e , o r h a s o r is a b o u t to
f r a u d u l e n tly d is p o s e o f h is p r o p e r t y , o r f r a u d u l e n tly w ith h o ld s m o n e y ,
c h a tte l s , o r e ffe c ts w h ic h a r e lia b le t o t h e s a ti s f a c ti o n o f h is d e b ts ;
p la in tif f m u s t g iv e b o n d in d o u b le t h e a m o u n t c la im e d . A tta c h m e n t s
w ill is s u e f o r t h e fo llo w in g d e m a n d s : 1: T o e n fo rc e t h e c o lle c tio n of
a d e b t, w h e th e r i t b e d u e o r n o t, a t t h e ti m e t h e a t t a c h m e n t is t a k e n
o u t. 2 : F o r a n y m o n e y e d d e m a n d , t h é a m o u n t o f w h ie h c a n b e
c e r t a in l y a s c e r ta in e d . 3 : T o r e c o v e r d a m a g e s f o r a b r e a c h o f c o n ­
t r a c t w h e n t h e d a m a g e s a r e n o t c e r t a in o r li q u id a t e d . 4 : W h e n
t h e a c tio n s o u n d s in d a m a g e s m e r e ly . O n e n o n - r e s id e n t m a y s u e o u t
a n a t t a c h m e n t a g a in s t a n o t h e r n o n - r e s id e n t b y m a k in g o a t h t h a t th e
d e f e n d a n t h a s n o t s u ffic ie n t p r o p e r t y w ith in t h e S t a t e o f h is r e s id e n c e
w h e re fro m t o s a ti s f y t h é d e b t . A tta c h m e n t s m a y b e s u e d o u t in a id
of a p e n d in g s u it w h e n a n y o f t h e a b o v e g r o u n d s e x is t. G a r n is h m e n t
p ro c e s s w ill is s u e in a id o f a t t a c h m e n t in a ll s u c h c a se s. G a r n is h m e n t
m a y b e d is s o lv e d b y g iv in g b o n d . I n a ll c a se s o f a t t a c h m e n t s s u e d
o u t s o le ly u p o n th e g r o u n d t h a t t h e d e f e n d a n t is a n o n - r e s id e n t, th e
a t t a c h m e n t m a y is s u e w ith o u t g iv in g b o n d , b u t if d e f e n d a n t a p p e a r s
a n d p le a d s , b o n d m u s t b e g iv e n o r t h e a t t a c h m e n t d is m is s e d .
B a n k s . T h e n a t i o n a l b a n k s y s te m is in f o rc e in th i s S t a t e u n c o n ­
tr o lle d in a n y w a y b y S t a t e la w s , e x c e p t t h a t t h e s h a r e s a r e s u b je c t
to t a x a t i o n a s o t h e r p e r s o n a l p r o p e r t y , b u t t h e b a n k is r e q u ir e d to p a y
t h e ta x .
T h e r e is n o p r o v is io n o f la w f o r t h e e s ta b lis h m e n t o f b a n k s o f is s u e
in th i s S ta t e . B a n k s o f d is c o u n t a n d d e p o s it m a y b e e s ta b lis h e d
u n d e r t h e g e n e ra l I n c o r p o r a tio n la w s . D e p o s ito r s n o t c la im in g
in t e r e s t a r e p r e f e r r e d c r e d ito r s in c a s e o f in s o lv e n c y .
A n y b a n k e r w h o d is c o u n ts a b ill o r n o te a t a g r e a t e r r a t e t h a n 8
p e r c e n t c a n n o t e n f o r c e t h e c o lle c tio n o f s a m e e x c e p t a s to t h e p r in ­
c ip a l, a n d if a n y I n te r e s t h a s b e e n p a id i t m u s t b e d e d u c te d f ro m th e
p r in c ip a l.
C o l l a t e r a l s . R e c e ip t m u s t b e g iv e n f o r if d e m a n d e d . P le d g e s o r
c o lla te r a ls n o t t r a n s f e r a b le w ith o u t t r a n s f e r o f t h e d e b t ; a f t e r tw o
d a y s ’ n o tic e in w r itin g c o lla te r a ls m a y b e s o ld , b y a d v e rtis in g „ f o r fiv e
d a y s , a t p u b lic o u tc r y .
C o n d itio n a l s a le s a r e g o o d b e tw e e n t h e p a r tie s , b u t v o id w h e re
p e r s o n a l p r o p e r t y d e liv e r e d t o v e n d e e a s a g a in s t p u r c h a s e r s f o r a v a l­
u a b le c o n s id e r a tio n w ith o u t n o tic e , m o r tg a g e s a n d j u d g m e n t c re d i­
to r s , u n le s s in w r itin g a n d re c o r d e d in t h e office o f t h e p r o b a t e ju d g e .
C o n d itio n a l c o n t r a c ts o f s a le s m u s t b e r e c o r d e d in office o f t h e
J u d g e o f P r o b a t e o f th e c o u n t y in w h ic h t h e p r o p e r t y is lo c a te d ,
t o b e r a t e d a g a in s t s u b s e q u e n t p u r c h a s e r s o r ju d g m e n t c re d ito r«
w ith o u t n o tic e , e x c e p t in c o u n tie s h a v i n g a p o p u la tio n o f m o r e t h a n
8 0 ,0 0 0 a n d t h e c o n t r a c t is f o r a le ss a m o u n t t h a n $ 2 0 0 .0 0 .
C o n t r a c t s . I n t h e fo llo w in g c a se s, e v e r y a g r e e m e n t is v o id , u n le s s
s u c h a g r e e m e n t, o r s o m e n o te o r m e m o , th e r e o f , e x p r e s s in g t h e c o n ­
s id e r a tio n , is in w r itin g a n d s ig n e d b y t h e p a r t y to b e c h a r g e d : 1.
E v e r y a g r e e m e n t w h ic h b y Its te r m s is n o t t o b e p e r f o r m e d w ith i n
o n e y e a r f r o m t h e m a k in g th e r e o f . 2. E v e r y s p e c ia l p r o m is e b y a n
e x e c u to r o r a d m in is tr a to r to a n s w e r d a m a g e s o u t o f h is o w n e s t a t e .
3 . E v e r y s p e c ia l p r o m is e t o a n s w e r f o r t h e d e b t , d e f a u l t, o r m is c a r ­
ria g e o f a n o t h e r . 4. E v e r y a g r e e m e n t, p ro m is e , o r u n d e r t a k in g ;
m a d e u p o n c o n s id e r a tio n of m a r r ia g e , e x c e p t m u t u a l p r o m is e s to
m a r r y . 5. E v e r y c o n t r a c t f o r t h e s a le o f la n d s , te n e m e n ts , o r h e r e d i t­
a m e n ts , o r o f a n y in t e r e s t th e r e in , e x c e p t le a s e s f o r a t e r m o f n o t
lo n g e r t h a n o n e y e a r , u n le s s t h e p u r c h a s e m o n e y , o r a p o r ti o n th e r e o f ,
b e p a id , a n d t h e p u r c h a s e r b e p u t in p o s se ss io n b y t h e se lle r.

of

R E L A T IN G TO

B A N K I N G A N D C O M M E R C IA L U S A G E S .
P r e p a r e d a n d R e v is e d b y M r . C l a u d e D . R i t t e r , A t to r n e y a t L a w ,
B irm in g h a m . (S ee C a rd in A tto r n e y s ’ L ist.)
A c k n o w l e d g m e n t s o r p ro o f o f r e a l e s t a t e I n s tr u m e n ts m a y b e
b e fo re o n e o f t h e fo llo w in g c o u r ts o r o ffic e rs : 1 s t. W i th in th i s S t a t e '
ju d g e s o f t h e s u p r e m e a n d c i r c u it c o u r t s a n d t h e c le rk s o f s u c h c o u r ts ,
c h a n c e llo rs , re g is te rs in c h a n c e r y , ju d g e s o f t h e c o u r ts o f p r o b a t e ,
ju s tic e s o f t h e p e a c e , a n d n o ta r ie s p u b lic , T h e o ffic ial s h o u ld c e r tif y
t h a t t h e p e r s o n s ig n in g t h e c o n v e y a n c e is k n o w n t o h im a n d a c k n o w l­
e d g e s t h a t “ b e in g in fo rm e d o f t h e c o n t e n ts o f t h e c o n v e y a n c e h e
e x e c u te d t h e s a m e v o lu n t a r il y o n t h e d a y t h e s a m e b e a rs d a t e . ”
3 d . O u ts id e o f S t a t e — J u d g e s a n d c le rk s o f a n y f e d e r a l c o u r t, ju d g e s
a n d c le rk s o f a n y c o u r t o f r e c o r d in a n y s t a t e , n o ta r ie s p u b lic , o r c o m ­
m iss io n e rs a p p o i n te d b y t h e g o v e r n o r o f th i s S t a t e ; b e y o n d t h e lim its
o f t h e U n ite d S ta t e s , b y t h e ju d g e s o f a n y c o u r t o f re c o rd , m a y o r o r
c h ie f m a g is tr a t e o f a n y c ity , to w n o r b o r o u g h , o r c o u n ty , n o ta r ie s
p u b lic , o r b y a n y d ip lo m a tic , c o n s u la r, o r c o m m e rc ia l a g e n t o f t h e
U n ite d S ta t e s . F o r fo rm s o f d e e d s s e e “ C o n v e y a n c e s .”
A c t i o n s . A ll o r d in a r y s u its a t la w a r e c o m m e n c e d b y s u in g o u t
a s u m m o n s w h ic h m u s t b e a c c o m p a n ie d b y a c o m p la in t s t a t i n g t h e
c a u s e o f a c tio n . N o n - r e s id e n t p la in tiffs a r e r e q u i r e d t o g iv e s e c u r i ty
f o r c o s ts . W h e n tw o o r m o re p e rs o n s a r e j o i n tly b o u n d b y ju d g m e n t,
b o n d , o r a g r e e m e n t, t h e o b lig a tio n is s e v e ra l a s w ell a s jo i n t.
A c c e p t a n c e . U n c o n d itio n a l p ro m is e in w r itin g t o a c c e p t a b ill
b e fo re o r a f t e r d r a w n is g o o d in f a v o r o f a ll w h o t a k e i t u p o n f a i th
th e r e o f f o r v a lu e . T h e h o ld e r m a y d e c lin e a q u a lifie d a c c e p ta n c e a n d
t r e a t t h e b ill a s d is h o n o r e d ; if h e ta k e s q u a lifie d a c c e p ta n c e d r a w e r
a n d e n d o r s e r s a r e d is c h a rg e d .
A C h e c k . I s a b ill o f e x c h a n g e o n a b a n k p a y a b le o n d e m a n d ;
m u s t b e p r e s e n t e d w ith re a s o n a b le ti m e a f t e r is s u e a n d if d is h o n o r e d ,
n o tic e m u s t b e g iv e n o r d r a w e r is d is c h a rg e d to t h e e x t e n t o f lo ss
c a u s e d b y d e la y ; d o e s n o t o p e r a t e to a s s ig n a n y p a r t o f d r a w e r ’s f u n d s
In b a n k , a n d b a n k is n o t lia b le u n le s s i t a c c e p ts o r c e rtifie s. I f h o ld e r
h a s c h e c k c e rtifie d t h e d r a w e r a n d e n d o rs e rs a r e d is c h a rg e d .
T h e p r e s e n t n e g o tia b le in s t r u m e n t la w o f A la b a m a , c o n s is tin g o f
196 s e c tio n s w e n t in t o fo rc e A u g u s t 9, 1907. I t s p ro v is io n s d o n o t
a p p l y to i n s tr u m e n ts m a d e p r io r th e r e to . T h e a c t so m a te r i a lly
c h a n g e s t h e la w in th i s S t a t e a s t o s u g g e s t t h e p r o p r ie ty o f s p e c ia l
e x a m in a t io n In a n y d o u b tf u l c a se . . ..
A d m i n i s t r a t i o n o f e s ta te s is h a d in t h e p r o b a t e c o u r ts o f d e c e ­
d e n t s ’ re s id e n c e . A ll c la im s m u s t b e p r e s e n t e d w ith i n tw e lv e m o n th s
a f t e r t h e s a m e h a v e a c c r u e d o r w ith i n tw e lv e m o n t h s a f t e r t h e g r a n t o f
le t t e r s t e s t a m e n t a r y o r o f a d m in is tr a tio n , o r else b a r r e d . I n f a n t s a n d
p e rs o n s o f u n s o u n d m in d h a v e o n e y e a r t o p r e s e n t t h e i r c la im s a f t e r
d is a b ilitie s r e m o v e d . A d m in i s t r a ti o n o f i n t e s t a t e is g r a n t e d , 1 s t:
T o t h e h u s b a n d o r w id o w ; 2 d : T h e n e x t o f k in e n t itl e d t o s h a r e in
t h e d i s tr i b u tio n o f t h e e s t a t e ; 3 d ; T h e la r g e s t c r e d i to r o f t h e i n t e s t a t e
r e s id in g w ith i n t h i s S t a t e ; 4 t h ; S u c h o th e r p e rs o n a s t h e ju d g e o f
p r o b a t e m a y a p p o i n t. T h e r e c a n b e n o a p p o i n tm e n t u n t i l a f t e r
e x p i r a ti o n o f fifte e n d a y s f r o m d a t e o f d e a th . P re fe re n c e m u s t b e
e x e rc is e d w ith in f o r t y d a y s o r r ig h t s re lin q u is h e d . I f s e v e ra l e n t itl e d
to a d m in is te r , m e n a r e p r e f e r r e d t o w o m e n a n d w h o le b lo o d t o h a lf
b lo o d . N o n - r e s id e n t e x e c u to r s a n d a d m in is tr a to r s m a y sue. i n th i s
S t a t e b y re c o r d in g in p r o b a t e ju d g e ’s office c o p y o f l e t t e r s a n d r iv i n g
b o n d t o f a i th f u ll y a d m in is te r p r o p e r t y . A n o n - r e s id e n t m a> b e
a p p o i n te d a d m i n i s t r a t o r o r e x e c u to r o f a d e c e a s e d r e s id e n t’s e s ta te .
A f f i d a v i t s m a y b e t a k e n w ith in t h e S t a t e b e fo re e v e ry ju d g e o r
c le r k o f a n y c o u r t , ju s tic e s o f t h e p e a c e , a n d n o ta r ie s p u b lic o r a n y
o th e r p e r s o n in v e s t e d b y la w w ith ju d i c ia l f u n c tio n s . O u ts id e t h e
S t a t e a n d w ith in t h e U n ite d S ta t e s m a y b e t a k e n b e fo re a n y ju d g e o r
c le r k o f f e d e ra l c o u r t , ju d g e o f 'a n y c o u r t o f re c o r d in a n y s t a t e ,
n o ta r ie s p u b lic a n d c o m m is s io n e rs a p p o i n te d b y t h e g o v e rn o r.
A l i e n s . “ F o re ig n e rs W ho a r e , o r m a y h e r e a f te r b e c o m e , b ó n a fid e
r e s id e n ts o f t h i s S ta t e , s h a ll e n jo y t h e s a m é r ig h ts in r e s p e c t t o t h e
p o s se ss io n , e n j o y m e n t , a n d in h e r ita n c e o f p r o p e r t y a s n a t iv e - b o r n c itis e n s .” — S ec. 34, C o n s t.
A l t e r a t i o n s . W h e n a n e g o tia b le I n s tr u m e n t is m a te r i a lly a l te r e d
w ith o u t t h e a s s e n t o f a ll t h e p a r t ie s lia b le th e r e o n , i t is a v o id e d
e x c e p t a s a g a in s t a p a r t y w h o h a s h im s e lf m a d e , a u t h o r iz e d , o r
a s s e n te d to t h e a l t e r a t i o n a n d s u b s e q u e n t e n d o rs e rs . B u t w h e n a n
in s tr u m e n t h a s b e e n m a te r i a lly a l te r e d a n d is in t h e h a n d s o f a h o ld e r
in d u e c o u rs e , n o t a p a r t y t o t h e a l te r a t io n , h e m a y e n fo rc e p a y m e n t
th e r e o f a c c o rd in g t o it s o rig in a l te n o r . M a te ria l a l te r a t io n s c o n s is ts
o f a n y c h a n g e s in d a t e ; s u m p a y a b le , in t e r e s t o n p r in c ip a l; t i m e o r
p la c e o f p a y m e n t; n u m b e r a n d r e l a ti o n o f p a r t ie s ; m e d iu m o r c u r r e n c y
in w h ic h p a y m e n t is to b e m a d e .
A rb itra tio n .
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s u b m i t t i n g c a se s f o r a r b i t r a t i o n w h e n m o v e d f o r b y t h e p a r tie s , a n d
to c o n tin u e t h i s c a u s e f o r o n e t e r m f o r a n a w a r d , b u t n o t lo n g e r w ith ­
o u t c o n s e n t o f p a r tie s , o r g o o d c a u s e b e in g s h o w n th e r e f o r . T h e
a w a r d o f t h e a r b i t r a t o r s m a y b e e n t e r e d u p a n d e n fo rc e d a s t h e j u d g ­
m e n t o f t h e p r o p e r c o u r t w h e th e r m a d e in a p e n d in g s u it o r n o t.
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t e m p t a n d in c a se s o f a lle g e d lu n a c y .
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Federal Reserve Bank of St. Louis

G e n e r a l a c k n o w le d g m e n t m u s t b e s ig n e d t o m a k e i n s tr u m e n t selfr
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d a y , t h a t , b e in g in f o r m e d o f t h e c o n t e n ts o f t h e c o n v e y a n c e , h e
e x e c u te d t h e s a m e v o lu n t a r il y o n t h e d a y t h e s a m e b e a rs d a t e . G iv e n
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a n y i n t e r e s t t h e r e in b y i n s tr u m e n t in w r iti n g s ig n e d b y t h e g r a n t o r ,
o r h is a g e n t d u ly a u t h o r iz e d in w r itin g , a n d a t t e s t e d b y o n e w itn e s s , o r
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a n d w h o s ig n t h e i r n a m e s a s w itn e s s e s . I f t h e g r a n t o r is n o t a b le to
s ig n h is n a m e I t m u s t b e w r itt e n f o r h im , a n d t h e w o rd s “ h is m a r k ”
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a s a w itn e s s . A p a r o l le a s e f o r le ss t h a n o n e y e a r is v a lid . A m a r r ie d
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l a n d s ,a n d h a s g e n e ra lly t h e s a m e r ig h ts a s m a r r ie d w o m e n o v e r t w e n t y o n e y e a r s o f a g e . T h e h u s b a n d m u s t jo in in a n y c o n v e y a n c e o f t h e
w ife ’s s e p a r a t e e s ta te . C o n v e y a n c e s , to o p e r a t e a s n o tic e , m u s t b e
a c k n o w le d g e d a n d re c o r d e d . N o ti m e is1r e q u ir e d w ith in w h ic h c o n ­
v e y a n c e s s h a ll b e re c o r d e d . T h e y o p e r a t e a s n o tic e s f r o m d a t e o f
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B A N K I N G A N D C O M M E R C IA L L A W S — A L A B A M A

hold 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 o f ..............
I, . . . . . . . . . . . .Judge of............ (or other officer) do hereby certify
that, on t h e .................. day o f ....................... . 1 9 . . . . , came before me
the within named ...........................
known to me (or made
known to me) to be the wife of the within n a m e d .................. ............
who, being examined separate and apart from her husband touching
her signature to the w ith in .................. . acknowledged th at 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 this ............ .. day of
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(O fficia l C h a r a c te r .)
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b e fo re m e o n t h i s d a y t h a t , b e in g in f o r m e d o f t h e c o n t e n ts o f t h e
c o n v e y a n c e , h e , a s s u c h , officer, a n d w ith fu ll a u t h o r i t y , e x e c u te d t h e
s a m e v o lu n t a r il y f o r a n d a s t h e a c t o f s a id c o r p o r a tio n .
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a n d a ll c o n t r a c ts b e fo re t h e n a r e v o id . E v e r y fo r e ig n c o r p o r a t io n
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c o u r ts , a n d im p e a c h m e n ts o f ju d i c ia l officers, h a s o n ly a p p e lla t e ju r i s ­
d ic tio n a n d c a se s a r e t r i e d o n t h e re c o r d s e n t u p . C o u r t o f a p p e a ls
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b o th tw ic e a y e a r In n e a r l y e v e ry c o u n t y . C h a n c e r y c o u r ts h a v e
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c iv il c a u s e s w h e re t h e a m o u n t in c o n t r o v e r s y d o e s n o t e x o e e d $ 1 0 0 in
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n o t t h a t o f in d i v id u a l p a r t n e r s . T h e w r it m a y b e s e r v e d u p o n a n y
o n e of th e p a rtn e rs : th e ju d g m e n t re a c h e s th e p a rtn e rsh ip p ro p e rty
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s u e d a lo n e o n a p a r t n e r s h i p o b lig a tio n . N o n - r e s id e n ts m u s t g iv e
s e c u r i ty f o r c o s ts w h e n s u it is c o m m e n c e d o r w ith in s u c h t i m e t h e r e ­
a f t e r a s t h e c o u r t m a y d ir e c t. M o n e y m a y b e d e p o s ite d w ith t h e
c le rk I n s te a d o f s u r e tie s .
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n e s s e s w h o c a n n o t b e p r e s e n t a t t h e t r i a l in t h e fo llo w in g c a se s :
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c o u r t ; w h e n t h e w itn e s s re s id e s m o re t h a n 100 m ile s f r o m t h e p la c e o f
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t h e S t a t e , a n d n o t r e t u r n in ti m e f o r t h e t r i a l ; w h e n t h e w itn e s s is t h e
s o le w itn e s s of t h e f a c t s ; w h e n t h e w itn e s s is o n e o f t h e o fficers d e s ig ­
n a t e d in C o d e N o . 4 0 3 0 . A ffid a v it m u s t b e m a d e o f o n e o f t h e a b o v e
ta c ts , a n d o f t h e m a t e r i a l i t y o f t h e w itn e s s . M a y b e t a k e n o n i n t e r ­
ro g a to r ie s b y a c o m m is s io n e r a p p o i n te d b y t h e c o u r t f o r t h a t p u r p o s e .
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d e s c e n d a n ts , in e q u a l p a r t s . I f t h e r e a r e n o n e o f t h e a b o v e t o ta k e ,
t h e n t h e w h o le t o t h e h u s b a n d o r w ife o f t h e i n t e s t a t e , a n d if t h e r e b e
n o h u s b a n d o r w ife o r n o n e o f t h e fo re g o in g liv in g , t h e n t o t h e n e x t
o f k in in e q u a l d e g re e in e q u a l p a r t s . I f t h e r e a r e n o n e x t o f k in
I t e s c h e a ts t o t h e S t a t e . T h e p e r s o n a l e s t a t e is d is tr i b u te d t h e s a m e
a s t h e r e a l e s ta te , e x c e p t t h a t if t h e r e a r e n o c h ild r e n t h e w id o w is
e n t itl e d to a ll o f t h e p e r s o n a l e s ta te . I f b u t o n e c h ild s h e ta k e s o n e h a lf. I f n o t m o r e t h a n f o u r c h ild r e n t o a c h ild ’s p a r t , a n d if m o r e
t h a n f o u r to o n e -fifth . P o s t h u m o u s c h ild r e n t a k e a s o th e r s . I lle g iti­
m a t e c h ild re n in h e r i t fr o m t h e i r m o t h e r . T h e h u s b a n d u p o n t h e
d e a t h o f t h e w ife is e n t itl e d t o h a lf o f h e r p e r s o n a l e s t a t e a b s o lu te ly ,
a n d t o t h e u s e o f a ll o f h e r r e a l e s t a t e f o r life, u n le s s h e h a s b e e n d iv e s te d
o f a ll c o n tro l o v e r h e r e s ta te ) b y a d e c re e o f t h e c h a n c e r y c o u r t .
D a m a g e s r e c o v e re d b y p e r s o n a l r e p r e s e n t a ti o n f o r d e a t h o f d e c e a s e d
a r e d is tr i b u te d a c c o r d in g to s t a t u t e o f d is tr i b u tio n a n d a r e e x e m p t
f r o m p a y m e n t o f d e b ts .
D o w e r . U n le s s t h e w ife h a s re lin q u is h e d h e r r i g h t o f d o w e r in th e
m a n n e r p r o v id e d b y s t a t u t e s h e is, u p o n t h e d e a th o f t h e h u s b a n d ,
e n t i t l e d t o d o w e r in a ll la n d s o f w h ic h th e h u s b a n d w a s se iz e d in fee
d u r in g t h e m a r r ia g e , o r o f w h ic h a n o t h e r w a s s e iz e d t o h is u s e o r to
w h ic h h e h a d a p e r f e c t e q u i ty , h a v i n g p a id a l l t h e p u r c h a s e m o n e y
th e r e f o r . T h e d o w e r in t e r e s t is o n e -h a lf w h e n t h e h u s b a n d le a v e s n o
n e a l d e s c e n d a n ts , a n d o n e - t h ir d w h e n t h e e s t a t e is I n s o lv e n t o r t h e
h u s b a n d le a v e s c h ild re n o r t h e i r d e s c e n d a n ts . I f t h e w ife h a s a t t h e
d e a t n o f t h e h u s b a n d a s e p a r a t e e s t a t e e q u a l in v a lu e to h e r d o w e r
in t e r e s t, s h e s h a ll n o t h a v e d o w e r, a n d if o f le ss v a lu e is o n ly e n t itl e d
t o s u c h a m o u n t a s w ith h e r e s t a t e w ill m a k e t h e fu ll v a lu e o f t h e d o w e r.


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

P r o P e r t y s u b je c t t o : 1 s t: O n r e a l p r o p e r t y to
w h ic h t h e d e f e n d a n t h a s a le g a l t i t l e o r a p e r f e c t e q u i ty , h a v in g p a id
t h e p u r c h a s e m o n e y , o r in w h ic h h e h a s a v e s te d in t e r e s t, in p o s se ss io n
r e v e r s io n , o r r e m a in d e r , w h e th e r h e h a s t h e e n t ir e e s ta te , o r Is e n t itl e d
t o i t in c o m m o n w ith o th e r s . 2 d : O n p e r s o n a l p r o p e r t y o f t h e d e fe n ­
d a n t ( e x c e p t th i n g s In a c tio n ) , w h e th e r h e h a s t h e a b s o lu t e t i t l e th e r e ­
to , o r t h e r i g h t o n ly t o t h e p o s se ss io n th e r e o f f o r h is o w n life, th e life
o f a n o t h e r , o r a le ss p e r io d . 3 d : O n a n e q u i ty o f r e d e m p tio n in e ith e r
l a n d o r p e r s o n a l p r o p e r t y , w h e n a n y in t e r e s t le ss t h a n t h e a b s o lu te
t i t l e Is s o ld . T h e p u r c h a s e r is s u b r o g a te d t o a ll t h e r ig h t s o f th e
d e f e n d a n t, a n d s u b je c t t o a ll h is d is a b ilitie s . W r i t o f fie ri f a c ia s is a
lie n o n ly w ith in t h e c o u n t y In w h ic h i t Is re c e iv e d b y t h e o fficer, o n
la n d s a n d p e r s o n a l ity o f d e f e n d a n t s u b j e c t t o le v y a n d s a le , fr o m th e
ti m e o n ly t h a t t h e w r it is re c e iv e d b y s u c h o ffic er a n d c o n tin u e s a s
lo n g a s w r it is r e g u la r ly d e liv e r e d t o t h e sh e riff w ith o u t t h e la p s e o f a n
e n t ir e te r m . A s t a t e m e n t o f a j u d g m e n t c e rtifie d b y t h e c le r k o f th e
c o u r t m a y b e file d in t h e office o f t h e ju d g e o f p r o b a t e , w h ic h m a k e s
t h e j u d g m e n t a lie n w ith in t h e c o u n t y in w h ic h i t is filed f o r t e n y e a rs
t h e r e a f te r . E x e c u ti o n m a y b e is s u e d o n s u c h ju d g m e n t a t a n y tim e
E x e c u tio n s is s u e d b y ju s ti c e s a r e lie n s o n t h e p r o p e r t y o f t h e d e fe n ­
d a n t , o n w h ic h t h e y a r e le v ie d , f r o m t h e ti m e o f t h e le v y . A n o r d e r
m u s t b e o b ta in e d f r o m t h e C irc u it c o u r t f o r t h e s a le o f la n d s le v ie d o n
u n d e r e x e c u tio n fr o m a ju s ti c e ’s c o u r t .
N o s t a y o f e x e c u tio n in c ir c u it
c o u r t e x c e p t b y a p p e a l, a n d s u p e r s e d e a s b o n d w h ic h d e la y s c o lle c tio n
u n ti l a ffirm a n c e b y s u p r e m e c o u r t , a n d e n ta ils 10 p e r c e n t d a m a g e s ,
w ith le g a l in t e r e s t a n d C osts. I n ju s ti c e ’s c o u r t s t a y is g r a n t e d o n
g o o d s e c u r ity , b e lo w $ 2 0 , t h i r t y d a y s o v e r $ 2 0 , s i x t y d a y s .

F ra u d . 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.
' G a r n i s h m e n t m a y is s u e in a n y c a s e a f t e r s u i t c o m m e n c e d u p o n
a f f id a v it o f n e c e s s ity a n d b o n d a s i n a t t a c h m e n t c a se s , o r a f t e r lu d e m e n t, w ith o u t b o n d .
H u s b a n d a n d W i f e . T h e w ife h a s fu ll le g a l c a p a c it y t o c o n t r a c t
a s if s h e w e re so le, e x c e p t t h a t s h e c a n n o t a lie n a t e o r e n c u m b e r h e r
r e a l e s t a t e w ith o u t t h e h u s b a n d jo in in g in t h e c o n v e y a n c e , u n le s s th e
h u s b a n d b e I n s a n e o r h a s a b a n d o n e d h e r , o r is a n o n - r e s id e n t, o r is
im p r is o n e d u n d e r a c o n v ic tio n f o r c r im e f o r a p e r io d o f tw o y e a rs o r
m o re , i n w h ic h c a s e s t h e w ife m a y c o n v e y i t a s If s h e w e re so le.
H u s b a n d a n d w ife m a y c o n t r a c t w ith e a c h o th e r , b u t t h e w ife c a n ­
n o t b e s u r e t y f o r t h e h u s b a n d . A ll of t h e p r o p e r t y a n d t h e e a rn in g s
o f t h e w ife a r e h e r s e p a r a t e e s ta te , a n d a r e n o t lia b le f o r t h e d e b ts of
t h e h u s b a n d . T h e w ife m u s t s u e a n d b e s u e d a lo n e f o r a l l m a tte r s
r e l a ti n g t o h e r s e p a r a t e e s t a t e o r c o n t r a c ts , a n d f o r a ll t o r t s to h e r
p e rso n o r p ro p e rty .
T h e c h a n c e r y c o u r t h a s p o w e r t o re lie v e o f a n y
o r a ll d is a b ilitie s o f c o v e rtu r e .
In te re s t.
L e g a l r a t e Is 8 p e r c e n t, a n d s a m e is a llo w e d o n a ll o p e n
a c c o u n ts , ju d g m e n ts , a n d d e c re e s . U s u r y f o r f e its a ll in t e r e s t. U su ­
r io u s in t e r e s t p a i d m a y b e r e c o v e r e d b a c k w ith i n tw e lv e m o n t h s a f t e r
c o m p le te d p a y m e n t.
J u d g m e n t s o f c o u r ts o f r e c o r d a r e p r o v e d b y a c e rtif ie d t r a n s c r i p t .
J u d g m e n t n o t a lie n , b u t w h e n a C ertified s t a t e m e n t th e r e o f , m a d e b y
t h e c o u r t o f t h e c le rk , is filed in t h e office o f t h e p r o b a t e ju d g e , it
b e c o m e s a li e n o n a ll p r o p e r t y o f t h e d e f e n d a n t th e r e in in t h e c o u n ty ,
w h ic h is s u b je c t to e x e c u tio n f o r t e n y e a rs , t o e n fo rc e w h ic h e x e c u tio n
m a y is s u e a t a n y ti m e w ith in t h a t p e r io d . E x e c u ti o n re c e iv e d b y
s h e r if f d u r in g life o f d e f e n d a n t m a y b e le v ie d a f t e r h is d e c e a s e o r a lia s
e x e c u tio n is s u e d a n d le v ie d if th e r e h a s n o t b e e n la p s e o f e n t ir e te rm
d o a s t o d e s tr o y lie n o r ig in a lly c r e a te d . A b o v e a p p lie s t o e x e c u tio n s
f r o m c i r c u it a n d c h a n c e r y c o u r ts .
A n e x e c u tio n is s u e d b y a ju s tic e
o f t h e p e a c e is a lie n o n ly f r o m ti m e o f i t s le v y . A ll a g r e e m e n ts to
c o n fe s s ju d g m e n t, o r t o a u t h o r iz e a n o t h e r t o c o n fe s s ju d g m e n t, m a d e
b e fo re t h e c o m m e n c e m e n t of t h e s u i t In w h ic h s u c h ju d g m e n ts a r e
so c o n firm e d a r e v o id .
M e c h a n ic s '
L ie n .
C o n tr a c to r s ,
I n c lu d in g
s u b c o n tr a c to r s ,
m e c h a n ic s , m a te r i a l m e n , a n d la b o r e r s h a v e a lie n o n h o u s e s b u ilt
a n d t h e g r o u n d o n w h ic h t h e y s t a n d u p o n c o m p ly in g w ith t h e la w .
L i e n f o r B e n t . T h e la n d lo r d s o f a n y s to r e h o u s e , d w e llin g h o u se ,
o r o t h e r b u ild in g , s h a ll h a v e a lie n o n t h e g o o d s, f u r n i t u r e a n d effe c ts
b e lo n g in g t o t h e te n a n t , a n d s u b - t e n a n t f o r h is r e n t , w h ic h s h a ll be
s u p e r io r t o a ll o t h e r lie n s , e x c e p t th o s e f o r ta x e s , a lso o n c r o p s g ro w n
o n r e n t e d p re m is e s f o r r e n t of t h e c u r r e n t y e a r.
L im ita tio n s .
N o te s a n d s t a t e d a c c o u n ts , s ix y e a r s ; o p e n a c c o u n ts ,
t h r e e y e a r s ; s e a le d in s tr u m e n ts , r e a l a c tio n s , a n d m o tio n s a g a in s t
o ffic ers, t e n y e a r s ; ju d g m e n ts , tw e n t y y e a r s ; a c tio n s o n t h e ca se , o n e
y e a r . B a r c r e a te d b y s t a t u t e c a n o n ly b e r e m o v e d b y a p a r t i a l p a y ­
m e n t, m a d e o n t h e c o n t r a c t b e fo re t h e b a r is c o m p le te , o r b y a n u n c o n ­
d it io n a l p ro m is e in w r itin g . I f a n y o n e e n t itl e d t o b r in g a n a c tio n ,
o r m a k e a n e n t r y o n la n d , o r d e fe n s e f o u n d e d o n t i t l e t o r e a l e s ta te ,
b e a t t h e ti m e s u c h r ig h t a c c r u e s , w ith in t h e a g e o f tw e n t y - o n e y e a rs ,
o r in s a n e o r I m p r is o n e d o n a c r im in a l c h a rg e f o r a te r m le ss t h a n life,
h e s h a ll h a v e t h r e e y e a rs , o r t h e p e r io d a llo w e d b y la w , f o r b rin g in g
s u c h a c tio n , if t h e p e r io d a llo w e d b y la w b e le ss t h a n th r e e y e a rs , a f te r
t h e t e r m in a tio n o f s u c h d is a b i lit y to b r in g s u c h s u it, e tc ., b u t n o a c tio n
c a n b e c o m m e n c e d a f t e r tw e n t y y e a r s . S t a t u t e s o f l i m it a ti o n a p p ly
t o m a r r ie d w o m e n s s e p a r a t e e s ta te s . A c tio n s f o u n d e d o n a p ro m ise
in w r itin g n o t u n d e r s e a l, o r f o r tr e s p a s s to p e r s o n o r p r o p e r t y , m u s t
b e b r o u g h t w ith i n s ix y e a rs . S t a t u t e s o f li m it a ti o n a r e m a d e a p p li­
c a b le t o e q u i ta b l e a s w ell a s le g a l d e m a n d s , b u t d o n o t r u n a g a in s t d ir e c t
t r u s t s . A n y a g r e e m e n t o r s tip u l a ti o n t o s h o r te n t h e p e r io d p re s c r ib e d
b y la w f o r t h e b r in g in g o f a n y a c tio n is v o id . A c tio n s S eek in g re lie f
o n t h e g r o u n d o f f r a u d w h e r e t h e s t a t u t e c r e a te d a b a r , t h e c a u s e of
a c tio n b e g in s t o r u n u p o n d is c o v e r y o f t h e f r a u d b y a g g r ie v e d p a r t y .
N o p r o m is e o r a c k n o w le d g m e n t is s u ffic ie n t t o r e m o v e t h e b a r to a
s u it, e x c e p t a p a r t i a l p a y m e n t m a d e u p o n t h e c o n t r a c t b y t h e p a r t y
s o u g h t to b e c h a rg e d b e f o r e t h e b a r Is c o m p le te , o r a n u n c o n d itio n a l
p r o m is e In w r itin g , s ig n e d b y t h e p a r t y to b e c h a rg e d t h e r e b y .
M a rrie d W o m e n .
(S ee H u s b a n d a n d W ife.)
M o r t g a g e s a r e e x e c u te d a n d a c k n o w le d g e d in t h e s a m e m a n n e r a s
d e e d s . M a y b e fo re c lo se d h y b ill in e q u i ty , o r if t h e r e b e a p ro v is io n
t o t h a t e ffe c t, b y s a le u n d eT p o w e r, u p o n s u c h d e f a u l t a s a u th o r iz e d
a s a le . A ll m o r tg a g e s a r e v o id a g a in s t c r e d ito r s o r p u r c h a s e r s w ith o u t
n o tic e , u n le s s re c o r d e d . M o rtg a g e s o p e r a t e a s n o tic e f r o m d a y of
d e liv e r y t o p r o b a t e ju d g e f o r r e c o r d . T h e r e is n o fix e d ti m e w ith in
w h ic h t h e y s h a ll b e r e c o r d e d . H o m e s te a d r e a l t y c a n n o t b e m o r t­
g a g e d o r o th e r w is e a lie n e d w ith o u t t h e v o lu n t a r y s ig n a t u r e a n d a s s e n t
o f w ife, e v id e n c e d b y a c k n o w le d g m e n t, u p o n p r iv a te e x a m in a tio n
s e p a r a t e a n d a p a r t fr o m t h e h u s b a n d , a n d c e rtif ie d . A ll m o r tg a g e s
m u s t b e i n w r itin g , s ig n e d , b y t h e m o r tg a g o r . P a y m e n t o f m o r tg a g e
d e b t m a d e b e fo re o r a f t e r m a t u r i t y o f d e b t , r e v e s ts in t h e m o r tg a g o r ,
o r h is a s s ig n s , t h e t i t l e t o t h e r e a l o r p e r s o n a l p r o p e r t y m o r tg a g e d , if
m a d e in t h e lif e tim e o f t h e m o r tg a g o r ; if m a d e a f t e r h is d e a th , su c h
p a y m e n t r e v e s ts t i t l e t o p e r s o n a l p r o p e r t y in t h e p e r s o n a l r e p r e s e n ta ­
tiv e , a n d t i t l e to r e a l it y in t h e h e ir s , d e v ise s, o r le g a te e s o f th e m o r tg a ­
g o r. C h a tte l m o r tg a g e s m u s t b e in w r itin g . W h e n t h e m o r tg a g o r
is s u e d b y t h e m o r tg a g e e f o r p o s se ss io n o f t h e m o r tg a g e d p r o p e r t y ,
h e m a y d e f e n d b y s h o w in g p a y m e n t o f t h e d e b t , o r p a r t p a y m e n t a n d
a te n d e r o f th e b a la n c e , o r m a y p a y i t a f t e r j u d g m e n t.
N e g o tia b le I n s t r u m e n t s .
M u s t b e p a y a b le in m o n e y a n d m u s t
c o n t a in a n u n c o n d itio n a l p ro m is e t o p a y a s u m c e r t a in o n d e m a n d o r
a t a fix e d o r d e te r m in a b le f u t u r e ti m e ; m u s t b e p a y a b le to a sp e c ifie d
p e r s o n o r b e a r e r ; m a y b e in in s ta llm e n ts a n d c o n t a in p r o v is io n t h a t

B A N K IN G A N D

C O M M E R C IA L L A W S — A L A S K A

o n a n y d e f a u l t t h e w h o le s h a ll b e c o m e d u e ; w ith e x c h a n g e fix e d o r
c u r r e n t r a t e . I n te r e s t, a n d a t t o r n e y ’s fees f o r c o lle c tio n ; m a y a u t h o r iz e
s a le o f c o lla te r a ls a n d c o n fe s s io n o f j u d g m e n t: If I t re a d s , “ I p ro m is e to
p a y ” a ll s ig n e rs a r e jo i n t l y a n d s e v e ra lly lia b le ; m a y b e p a y a b le a t
fix ed ti m e a f t e r d a t e o r s ig h t, o r a f t e r s p e c ifie d c e r t a in e v e n t, b u t n o t
u p o n a c o n tin g e n c y ; c a n n o t w a iv e e x e m p tio n fr o m e x e c u tio n ; n e e d
n o t s p e c ify v a lu e g iv e n n o r p la c e w h e re d r a w n o r p a y a b le ; if is s u e d ,
a c c e p te d , o r e n d o rs e d w h e n o v e r d u e I t is p a y a b le o n d e m a n d ; m a y b e
p a y a b le t o tw o o r m o re p a y e e s jo i n tly , o r o n e o r m o re o f s e v e r a l p a y e e s ,
o r t o t h e e s t a t e o f a d e c e a s e d p e r s o n ; a b s e n c e o r fa ilu r e o f c o n s id e r a ­
ti o n a d e fe n s e a g a in s t o n e n o t a h o ld e r In d u e c o u rs e a n d p a r t i a l fa ilu r e
a d e f e n s e p r o ta n t o . O n e n o t a p a r t y t o I n s tr u m e n t p la c in g a s ig n a t u r e
in b la n k b e fo re d e liv e r y b e c o m e s a n e n d o rs e r. E v e r y e n d o r s e r e n g a g e s
t h a t o n d u e p r e s e n t m e n t i t s h a ll b e h o n o r e d o r t h a t h e w ill p a y th e
a m o u n t t o h o ld e r o r a n y s u b s e q u e n t e n d o r s e r w h o m a y b e c o m p e lle d
t o p a y ; n o d a y s o f g ra c e ; w h e n m a t u r i t y f a lls o n S u n d a y o r h o lid a y
p a y m e n t is d u e o n n e x t b u s in e s s d a y ; if d u e o n S a t u r d a y m u s t b e p r e ­
s e n te d o n n e x t b u s in e s s d a y , b u t if p a y a b le o n d e m a n d h o ld e r m a y
p r e s e n t s a m e b e fo re n o o n o n S a tu r d a y . F r a u d a n d c i r c u m v e n tio n In
p r o c u r in g e x e c u tio n o f in s t r u m e n t Is a d e fe n s e a g a in s t a n y h o ld e r .
P o w e r s o f A t t o r n e y . P o w e rs o f a t t o r n e y o r o t h e r i n s tr u m e n ts
c o n f e r r in g a u t h o r i t y t o c o n v e y p r o p e r t y m a y b e p r o v e d o r a c k n o w l­
e d g e d in t h e s a m e m a n n e r a n d m u s t b e re c e iv e d a s e v id e n c e t o th e
s a m e e x t e n t a s c o n v e y a n c e s (see C o n v e y a n c e s ), a n d m u s t b e e x e c u te d
a s c o n v e y a n c e s . A p o w e r o f a t t o r n e y t o re lin q u is h d o w e r m u s t b e
e x e c u te d b y h u s b a n d a n d w ife jo i n tly . H e r s ig n a t u r e m u s t b e
a t t e s t e d b y * tw o w itn e s s e s , w h o a r e a b l e t o w r ite o r a c k n o w le d g e a s
r e q u ir e d f o r c o n v e y a n c e s o f la n d .
P r e s e n t m e n t . I s n o t n e c e s s a r y t o c h a rg e o n e p r im a r il y lia b le
e x c e p t in c a s e o f b a n k n o te s ; if p a y a b le a t s p e c ia l p la c e a b i l i t y a n d
w illin g n e s s t o p a y it. t h e r e a t m a t u r i t y is e q u i v a le n t t o a t e n d e r ; if
n o t o n d e m a n d i t m u s t b e p r e s e n t e d o n d a y i t fa lls d u e , if o n d e m a n d
t h e n w ith i n a r e a s o n a b le ti m e a f t e r i t s is s u e , e x c e p t a b ill o f e x c h a n g e
m u s t b e p r e s e n t e d w ith in r e a s o n a b le ti m e a f t e r i t s l a s t n e g o tia tio n .
P r o b a t e L a w . A c o u r t o f p r o b a t e , c o n s is tin g o f o n e ju d g e , is
e s ta b lis h e d f o r e a c h c o u n t y in t h e S ta t e . T h is c o u r t h a s ju r i s d i c ti o n
o f t h e p r o b a t e o f w ills, o f g r a n t in g l e t t e r s t e s t a m e n t a r y a n d o f a d m in ­
is tr a tio n , a n d t h e re p e a l o r r e v o c a tio n o f t h e s a m e ; o f t h e s e tt le m e n ts
o f a c c o u n ts o f e x e c u to r s a n d a d m in is tr a to r s , o f t h e s a le a n d d is p o s itio n
o f t h e r e a l a n d p e r s o n a l p r o p e r t y b e lo n g in g t o , a n d t h e d i s tr i b u tio n of,
i n t e s t a t e s ’ e s ta te s . A lso o f t h e a p p o i n tm e n t, r e m o v a l, a n d s e tt le m e n ts
o f g u a r d i a n s f o r m in o rs a n d p e rs o n s o f u n s o u n d m in d , t h e b in d in g o u t
o f a p p r e n tic e s , t h e a l lo tm e n t o f d o w e r, a n d t h e p a r t i t i o n o f la n d b e lo n g ­
in g t o j o i n t o w n e rs . A c o u r t o f p r o b a t e m u s t b e h e ld a t t h e c o u r t
h o u s e o f e a c h c o u n t y o n t h e s e c o n d M o n d a y o f e a c h m o n th , a n d t h e
ju d g e m a y h o ld s p e c ia l o r a d j o u r n e d t e r m s w h e n e v e r n e c e s s a ry , b u t
s u c h c o u r t m u s t a t a ll ti m e s b e c o n s id e re d o p e n , e x c e p t o n S u n d a y s .
I t a ls o k e e p s a r e c o r d o f d e e d s , m o rtg a g e s , a n d I n s tr u m e n ts e n t itl e d
to re c o rd .
P r o m i s s o r y N o t e . M u s t b e u n c o n d i tio n a l p ro m is e In w r itin g to
p a y o n d e m a n d o r a t fix e d o r d e t e r m i n a b le t i m e a s u m c e r t a in In m o n e y
t o o r d e r o r b e a re r , a n d w h e re d r a w n t o m a k e r ’s o w n o r d e r is n o t c o m ­
p le te u n t i l e n d o rs e d b y h im ; m a y b e in in s ta llm e n ts .
P ro te s t.
(S ee N e g o tia b le I n s tr u m e n ts .)
P r o t e s t o f F o r e i g n B i l l s . M a y b e m a d e b y n o t a r y p u b lic o r b y
a n y r e s p e c ta b le r e s id e n t o f t h e p la c e in p re s e n c e o f t w o o r m o re c re d ib le
w itn e s s e s ; b ill o f e x c h a n g e d o e s n o t o p e r a t e t o a s s ig n f u n d s i n b a n d s
o f d r a w e e a n d h e Is n o t lia b le u n le s s h e a c c e p ts .
R e p l e v i n . W r i t o f r e p le v in lie s t o r e c o v e r p r o p e r t y in c u s to d y if
a n o ffic er o f t h e la w , a n d is li m it e d t o th i s . T h e a c tio n o f d e t in u e
lie s t o r e c o v e r p e r s o n a l p r o p e r t y in a ll o t h e r in s ta n c e s .
T a x e s b e c o m e d u e o n O c to b e r 1 s t, a n d d e l in q u e n t o n t h e 3 1 s t of
D e c e m b e r o f t h e y e a r f o r w h ic h t h e y w e re le v ie d , a n d t h e la n d s m a y
b e so ld b y c e r t a in p r o c e e d in g s in t h e p r o b a t e c o u r t c o m m e n c e d in
t h e m o n t h o f M a rc h fo llo w in g . R a t e o f t a x a t i o n is s ix ty -fiv e p e r
c e n t o n e a c h $ 1 0 0 .0 0 , f o r S t a t e p u rp o s e s . C o u n ty m a y le v y a lik e
a m o u n t. M u n ic ip a litie s m a y l e v y a la x n o t t o e x c e e d o n e h a l f of
o n e p e r c e n t. T h e p u r c h a s e r o f la n d s so ld f o r d e l in q u e n t ta x e s
r e c e iv e s fro m t h e c o lle c to r a c e rtif ic a te o f p u rc h a s e , c o n ta in in g a
d e s c r ip tio n o f t h e p r o p e r t y , t h e d a t e a n d a m o u n t o f a s s e s s m e n t,
ta x e s , c o s ts , fe e s , e tc ., w h ic h a f t e r t h e e x p i r a ti o n o f tw o y e a rs fro m
t h e d a t e o f t h e s a le is e x c h a n g e a b le fo r a d e e d fro m t h e p r o b a t e
Ju d g e — w h ic h i s 'p r i m a fa c ie e v id e n c e o f t i t l e . L a n d s so ld f o r ta x e s
m a y b e re d e e m e d w ith in tw o y e a rs b y t h e o w n e r, m o rtg a g e e , o r a n y
p e r s o n h a v in g a b e n e fic ia l in t e r e s t t h e r e in b y d e p o s itin g w ith th e
p r o b a t e ju d g e o f t h e c o u n t y in w h ic h t h e la n d s w e re s o ld , t h e a m o u n t
o f p u r c h a s e m o n e y , w ith in t e r e s t a t 15 p e r c e n t p e r a n n u m , a n d a ll
ta x e s w h ic h h a v e a c c ru e d s u b s e q u e n t t o t h e sa le , a n d I n te r e s t th e r e o n ,
a t 8 p e r c e n t p e r a n n u m ; a ls o a ll c o s ts a n d c h a rg e s . W h e n e v e r la n d
Is s o ld fo r S t a t e o r c o u n t y ta x e s , a n d fr o m a n y c a u s e s u c h s a le is in ­
v a lid t o p a s s t i t l e t o p u r c h a s e r , s a le o p e r a t e s a s t r a n s f e r t o p u r c h a s e r
o f lie n o f s t a t e o r c o u n t y , o r t h e p r o p e r t y f o r p a y m e n t o f ta x e s fo r
w h ic h s o ld . A ll c o t to n f a c to r ie s o r c o t t o n m ills w h ic h s h a ll b e
c o n s tr u c te d in th i s S t a t e w ith in fiv e y e a r s s h a ll b e e x e m p t fro m
t a x a t i o n fo r a p e rio d o f t e n y e a rs , p ro v id e d s u c h m ills r e p r e s e n t a n
in v e s t m e n t o f $ 5 0 ,0 0 0 .
W i l l s . A ll w ills o f r e a l o r p e r s o n a l p r o p e r t y m u s t b e In w r itin g
s ig n e d b y t h e t e s t a t o r in p re s e n c e o f tw o w itn e s s e s . U n w r i tte n w ill
o f p e r s o n a l p r o p e r t y v a lid o n ly w h e n t h e p r o p e r t y d o e s n o t e x c eed
$ 5 0 0 In v a lu e , a n d m u s t b e m a d e d u r in g l a s t s ic k n e s s b y t e s t a t o r a t
h is h o m e . P e r s o n s p r e s e n t m u s t b e c a lle d o n t o w itn e s s t h a t i t is
t e s t a t o r ’s w ill a n d m u s t b e re d u c e d t o w r itin g b y o n e o f t h e w itn e s s e s
w ith in s ix d a y s . M in o r o v e r e ig h te e n m a y m a k e a w ill o f p e rs o n a l
p r o p e r t y . N o w ill e ffe c tiv e u n ti l p r o b a t e d . M a y b e c o n t e s te d in
p ro b a te o r ch a n c e ry c o u r t.”


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

1389

S Y N O P S I S OF

THE LAW S OF ALASKA
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
P r e p a r e d a n d R e v is e d b y O . D . C o c h r a n , A t to r n e y a t L a w , N o n a« .
(S ee C a r d in A t to r n e y s ’ L is t.)
A c k n o w le d g m e n ts .
(S ee D e e d s .)
A c t i o n s . T h e d is ti n c ti o n b e tw e e n a c tio n s a t la w a n d s u its in
e q u i ty a n d a ll f o rm s o f p le a d in g h e r e to f o r e e x is tin g in a c tio n s a t la w
a n d s u its in e q u i ty a r e a b o lis h e d , a n d t h e r e is b u t o n e f o r m o f a c tio n ,
d e n o m in a te d a c iv il a c tio n , f o r t h e e n f o r c e m e n t o r p r o te c ti o n o f p r i­
v a t e r ig h t s a n d t h e r e d r e s s o r p r e v e n t io n o f p r i v a t e w ro n g s. E v e r y
a c tio n m u s t b e p r o s e c u te d in t h e n a m e o f t h e r e a l p a r t y in I n te r e s t,
e x c e p t t h a t a n a d m i n i s t r a t o r o r e x e c u to r , a t r u s t e e o f a n e x p r e s s t r u s t ,
o r a p e r s o n e x p r e s s ly a u t h o r iz e d b y s t a t u t e m a y s u e w ith o u t jo in in g
w ith h im t h e p e r s o n f o r w h o se b e n e fit t h e a c tio n is p r o s e c u te d ; b u t
t h e a s s ig n m e n t o f a th i n g in a c tio n n o t a r is in g o u t o f c o n t r a c t is n o t
a u th o r iz e d ,
A f f i d a v i t s . A n a f f id a v it o r d e p o s itio n t a k e n o u t o f A la s k a , o th e r ­
w ise t h a n u p o n c o m m is s io n , m u s t b e a u t h e n t i c a t e d a s fo llo w s ; j .
I t m u s t b e c e rtif ie d b y a c o m m is s io n e r a p p o i n te d b y t h e g o v e r n o r o f
A la s k a to t a k e a f f id a v its a n d d e p o s itio n s in t h e s t a t e , t e r r i t o r y , d i s t r i c t
o r c o u n t r y w h e r e t a k e n ; o r, 2, i t m u s t b e c e rtif ie d b y a ju d g e o f a
c o u r t o f r e c o r d h a v i n g a c le r k a n d a s e a l t o h a v e b e e n t a k e n a n d s u b ­
s c r ib e d b e fo re h im a t a ti m e a n d p la c e th e r e in s p e c ifie d , a n d t h e
e x is te n c e o f t h e c o u r t, t h e f a c t t h a t s u c h ju d g e is a m e m b e r th e r e o f ,
a n d t h e g e n u in e n e s s o f h is s ig n a t u r e m u s t b e c e rtif ie d b y t h e c le r k
o f t h e c o u r t, u n d e r t h e s e a l th e r e o f . I n a ll a f f id a v its o r d e p o s itio n s
w itn e s s s h o u ld s p e a k in t h e f ir s t p e r s o n .
A l i e n s . A n y a lie n w h o is a b o n a fid e r e s id e n t o f t h e U n ite d S ta t e s ,
o r w h o h a s d e c la r e d h is in t e n t i o n t o b e c o m e a c itiz e n , o r w h o se r ig h t s
a r e s e c u r e d b y t r e a t y , m a y a c q u ir e a n d h o ld la n d s u p o n t h e s a m e te r m s
a s a c itiz e n . A n y a lie n m a y a c q u ir e la n d s b y I n h e r ita n c e o r In th e
o r d in a r y c o u rs e o f ju s ti c e in t h e c o lle c tio n o f .d e b ts , a n d m a y a c q u ir e
a n d e n fo rc e lie n s u p o n la n d s , b u t s u c h la n d s m u s t b e s o ld w ith i n te n
y e a r s . A n y a lie n m a y a ls o a c q u ir e a n d h o ld lo t s o r p a r c e ls o f la n d
in a n y in c o r p o r a te d o r p l a t t e d c i ty , to w n , o r v illa g e , o r In a n y m in e
o r m in in g c la im , b u t is n o t a u t h o r iz e d t o a c q u ir e t i t l e f r o m t h e U n ite d
S t a t e s to a n y o f t h e p u b lio la n d s .
A r r e s t . T h e d e f e n d a n t m a y b e a r r e s te d i n t h e fo llo w in g c iv il
a c tio n s ; 1 . F o r t h e re c o v e r y o f m o n e y o r d a m a g e s w h e n t h e d e ­
f e n d a n t is a b o u t t o r e m o v e f r o m t h e d i s t r i c t w ith i n t e n t t o d e f r a u d
h is c r e d ito r s ; f o r a n i n j u r y t o p e r s o n ; o r f o r w illfu lly in j u r in g o r w ro n g ­
f u lly ta k in g , d e ta in in g , o r c o n v e r tin g p r o p e r t y . 2 . F o r a fin e o r
p e n a lty ; o r f o r m o n e y o r p r o p e r t y e m b e z z le d o r f r a u d u l e n tly m is ­
a p p lie d o r c o n v e r te d t o h is o w n u s e b y a p u b lic officer, o r b y a n a t t o r ­
n e y , o r b y a n o ffic er o r a g e n t o f a c o r p o r a t io n in t h e c o u r s e o f h is
e m p lo y m e n t a s s u c h , o r b y a n y a g e n t, b r o k e r , o r o t h e r p e r s o n in a
f id u c ia r y c a p a c it y o r f o r m is c o n d u c t o r n e g le c t i n office o r in a p ro fe s ­
s io n a l e m p lo y m e n t.
3. T o r e c o v e r t h e p o s s e s s io n o f p e r s o n a l
p r o p e r t y u n j u s t l y d e t a in e d , w h e n t h e p r o p e r t y o r a n y p a r t th e r e o f
h a s b e e n c o n c e a le d , r e m o v e d , o r d is p o s e d o f, so t h a t i t c a n n o t b e
fo u n d o r t a k e n b y t h e m a r s h a l, a n d w ith i n t e n t t h a t i t s h o u ld n o t b e
so f o u n d o r ta k e n , o r w ith t h e I n te n t t o d e p r iv e t h e p la in tif f o f t h e
b e n e fit th e r e o f . 4 ; W h e n t h e d e f e n d a n t h a s b e e n g u il ty o f f r a u d in
c o n t r a c ti n g a d e b t , o r in c u r r in g t h e o b lig a tio n f o r w h ic h t h e a c tio n is
b r o u g h t, o r i n c o n c e a lin g o r d is p o s in g o f t h e p r o p e r t y f o r t h e ta k in g ,
d e t e n ti o n , o r c o n v e rs io n o f w h ic h t h e a c tio n is b r o u g h t. 5. W h e n
th e d e f e n d a n t h a s r e m o v e d o r d is p o s e d o f h is p r o p e r t y , o r is a b o u t t o
d o so , w ith i n t e n t t o d e f r a u d h is c r e d ito r s .
A t t a c h m e n t . T h e p la in tif f , a t t h e ti m e o f is s u in g t h e s u m m o n s
o r a f t e r w a r d s , m a y h a v e t h e p r o p e r t y o f d e f e n d a n t a t t a c h e d in a n
a c tio n u p o n a c o n t r a c t, e x p r e s s o r im p lie d , f o r t h e d ir e c t p a y m e n t o f
m o n e y , a n d , 1, w h ic h is n o t s e c u re d b y m o r tg a g e , lie n , o r p le d g e u p o n
r e a l o r p e r s o n a l p r o p e r t y , o r if so s e c u r e d , w h e n t h e s e c u r i ty h a s b e e n
r e n d e r e d n u g a t o r y b y t h e a c t o f t h e d e f e n d a n t; o r, 2, a g a in s t a n o n ­
r e s id e n t d e f e n d a n t. T h e w r it Is su e s w h e n e v e r t h e p la in tif f , o r -an y ­
o n e in h is b e h a lf , files a n a f f id a v it s h o w in g t h a t d e f e n d a n t is I n d e b te d
t o p la in tif f (s p e c ify in g t h e a m o u n t o f in d e b te d n e s s o v e r a n d a b o v e a ll
le g a l s e t-o ffs o r c o u n te r - c la im s ) u p o n a c o n t r a c t, e x p r e s s o r im p lie d ,
f o r t h e d ir e c t p a y m e n t o f m o n e y ; t h a t t h e p a y m e n t h a s n o t b e e n
s e c u r e d b y m o r tg a g e , lie n , o r p le d g e u p o n r e a l o r p e r s o n a l p r o p e r t y ;
a n d t h a t t h e s u m f o r w h ic h a t t a c h m e n t is a s k e d is a n a c tu a l, b o n a fid e ,
e x is tin g d e b t d u e a n d o w in g f r o m p la in tif f t o d e f e n d a n t; a n d t h a t t h e
a t t a c h m e n t is n o t s o u g h t n o r t h e a c tio n p r o s e c u te d t o h in d e r , d e la y ,
o r d e f r a u d a n y c r e d i to r o f t h e d e f e n d a n t. P la i n tif f m u s t a ls o file a n
u n d e r t a k in g , w ith o n e o r m o r e s u r e tie s , in a s u m n o t le s s t h a n $ 1 0 9 ,
a n d e q u a l to t h e a m o u n t f o r w h ic h h e d e m a n d s j u d g m e n t, c o n d itio n e d
t h a t p la in tif f w ill p a y a l l c o s ts a d j u d g e d a n d a ll d a m a g e s s u s ta in e d
b y r e a s o n o f t h e a t t a c h m e n t If t h e s a m e b e w r o n g f u l o r w i t h o u t suffi­
c ie n t c a u se , n o t e x c e e d in g t h e a m o u n t s p e c ifie d .
C h a t t e l M o r t g a g e s . A n y I n te r e s t I m p e r s o n a l p r o p e r t y , c a p a b le
o f b e in g t r a n s f e r r e d , m a y b e m o r tg a g e d ; b u t t h e m o r tg a g e is v o id a s
a g a in s t c r e d ito r s a n d s u b s e q u e n t p u r c h a s e r s a n d in c u m b r a n c e r s in
g o o d f a i t h a n d f o r v a lu e , u n le s s p o s se ss io n o f t h e p r o p e r t y b e d e liv e r e d
t o a n d r e t a in e d b y t h e m o r tg a g e e o r t h e m o r tg a g e p r o v id e t h a t t h e
p r o p e r t y m a y r e m a in in t h e p o s se ss io n o f t h e m o r t g a g o r a n d b e a c ­
c o m p a n ie d b y t h e a f f id a v it o f a l l t h e p a r t ie s th e r e t o t h a t t h e s a m e is
m a d e in g o o d f a i t h t o s e c u r e t h e a m o u n t n a m e d t h e r e in , a n d w ith o u t
d e s ig n t o h in d e r , d e la y , o r d e f r a u d c r e d ito r s , a n d b e a c k n o w le d g e d
a n d file d . T h e m o r tg a g e m u s t b e a c k n o w le d g e d b y t h e m o r t g a g o r
a s a c o n v e y a n c e o f r e a l p r o p e r t y Is a n d b e file d in t h e office o f t h e
r e c o r d e r o f t h e p r e c in c t w h e r e t h e m o r t g a g o r r e s id e s a n d o f t h e p r e ­
c in c t w h e r e t h e p r o p e r t y is . W i th in t h i r t y d a y s n e x t p r e c e d in g t h e
e x p i r a ti o n o f o n e y e a r fr o m t h e filin g , a t r u e c o p y o f t h e m o r tg a g e ,
w ith a v e rifie d s t a t e m e n t o f t h e in t e r e s t o f t h e m o r tg a g e e in t h e p r o p ­
e r t y a t t h e t i m e t h e s a m e is r e n e w e d , m u s t b e file d i n t h e office w h e re
t h e o rig in a l- w a s filed , a n d t h e li e n is th e r e b y e x t e n d e d a n o t h e r y e a r .
C h a t te l m o r tg a g e s a r e fo re c lo s e d in t h e s a m e m a n n e r a s m o r tg a g e s
a n d lie n s u p o n r e a l p r o p e r t y , b u t a c la u s e m a y b e in s e r te d in a m o r tg a g e
a u th o r iz i n g t h e m a r s h a l t o ^ e x e c u te t h e p o w e r o f s a le t h e r e in g r a n t e d
to t h e m o r tg a g e e .
C o r p o r a t i o n s . D o m e s tic C o r p o r a tio n s . T h r e e o r m o r e a d u l t p e r ­
s o n s , b o n a fid e r e s id e n ts o f t h e d is tr i c t, m a y f o r m a c o r p o r a tio n fo r
t h e fo llo w in g p u r p o s e s : T o c o n s tr u c t, o w n , a n d o p e r a t e r a ilr o a d s .

1390

B A N K I N G A N D C O M M E R C IA L L A W S — A L A S K A

tr a m w a y s , s t r e e t r a ilw a y s , w a g o n r o a d s , flu m e s, a n d te le g r a p h a n d
te le p h o n e lin e s in A la s k a ; to a c q u ir e , h o ld , a n d o p e r a t e m in e s in
A la s k a ; t o c a r r y o n t h e fis h in g i n d u s t r y in A la s k a a n d t h e w a te r s
a d j a c e n t a n d c o n tig u o u s t h e r e to ; t o c o n s tr u c t a n d o p e r a t e s m e lte r s ,
e le c tr ic a n d o t h e r p o w e r a n d li g h tin g p la n ts , d o c k s , w h a r v e s , e le v a to r s ,
w a re h o u s e s , a n d h o te ls in A la s k a ; a n d t o c a r r y o n t r a d e , t r a n s p o r t a ­
ti o n , a g r ic u ltu re , lu m b e r in g , a n d m a n u f a c tu r i n g in A la s k a .
F o r e ig n C o r p o ra tio n s . E v e r y c o r p o r a tio n o r j o i n t s to c k c o m p a n y
o rg a n iz e d u n d e r t h e la w s o f t h e U n ite d S ta t e s o r a n y s t a t e o r t e r r i t o r y
s h a ll, b e fo re d o in g b u s in e s s w ith in t h e d is tr i c t, file in t h e office o f th e
s e c r e t a r y o f t h e d i s t r i c t a n d in t h e office o f t h e c le r k o f t h e d i s t r i c t
c o u r t f o r t h e d iv is io n w h e re in i t i n t e n d s t o c a r r y o n b u s in e s s a d u ly
a u t h e n t i c a t e d c o p y o f i t s c h a r t e r o r a r tic le s o f in c o r p o r a tio n , a n d a lso
a s t a t e m e n t v e rifie d b y t h e b a t h o f i t s p r e s id e n t a n d s e c r e t a r y a n d
a t t e s t e d b y a m a j o r i t y o f i t s b o a r d o f d ir e c to r s . T h e r e a f te r s u c h
s t a t e m e n t m u s t a ls o b e so filed w ith in t h i r t y d a y s a f t e r J u l y f ir s t of
e a o b y e a r.
, D e e d s . A c o n v e y a n c e o f la n d s , o r o f a n y e s t a t e o r in t e r e s t th e r e in ,
m a y b e m a d e b y d e e d , s ig n e d a n d s e a le d b y t h e p e r s o n f r o m w h o m
t h e e s t a t e o r in t e r e s t is in t e n d e d t o p a s s , a n d a c k n o w le d g e d o r p r o v e d ,
a n d re c o r d e d , w ith o u t a n y o t h e r a c t o r c e re m o n y . A q u it- c la im d e e d
p a s s e s a ll t h e e s t a t e w h ic h t h e g r a n t o r c o u ld c o n v e y b y d e e d o f b a r g a in
a n d s a le . N o c o v e n a n ts a r e im p lie d in a n y c o n v e y a n c e . T h e te r m
h e irs , o r o t h e r w o rd s o f in h e r ita n c e , a r e n o t n e c e s s a r y t o c r e a te o r
c o n v e y a n e s t a t e in fe e s im p le . H u s b a n d a n d w ife m a y , b y t h e i r
j o i n t d e e d , c o n v e y t h e r e a l e s t a t e o f t h e w ife, in lik e m a n n e r a s s h e
m i g h t d o b y h e r s e p a r a t e d e e d if s h e w e re u n m a r r ie d . A m a r r ie d
w o m a n r e s id in g in t h e d is tr i c t, jo in in g h e r h u s b a n d in a d e e d , m u s t
a c k n o w le d g e t h a t s h e e x e c u te d s u c h d e e d fre e ly a n d v o lu n t a r il y
W h e n a m a r r ie d w o m a n n o t r e s id in g in t h e d i s t r i c t jo in s h e r h u s b a n d
in c o n v e y in g r e a l e s t a t e s i t u a t e in t h e d is tr i c t, t h e c o n v e y a n c e h a s t h e
s a m e e ffe c t a s if s h e w e re so le, a n d t h e a c k n o w le d g m e n t o r p r o o f o f th e
e x e c u tio n m a y b e m a d e t h e s a m e a s if s h e w e re s o le . W i th in t h e
d i s t r i c t d e e d s m u s t b e e x e c u te d in t h e p re s e n c e o f tw o w itn e s s e s , w h o
■ hall s u b s c r ib e t h e i r n a m e s a s s u c h ; a n d t h e p e rs o n e x e c u tin g a d e e d
m a y a c k n o w le d g e t h e e x e c u tio n b e fo re a ju d g e , c le r k o f t h e d is tr i c t
c o u r t , n o t a r y p u b lic , o r c o m m is s io n e r w ith i n t h e d is tr i c t, a n d th e
offic er ta k in g , t h e a c k n o w le d g m e n t m u s t in d o rs e th e r e o n a c e r tif ic a te
o f a c k n o w le d g m e n t a n d t h e t r u e d a t e o f m a k in g t h e s a m e u n d e r h is
hand.
D e p o s i t i o n s . T h e t e s t im o n y o f a w itn e s s . In th e d is tr i c t, m a y
b e t a k e n b y d e p o s itio n , in a n a c tio n , a t a n y ti m e a f t e r t h e s e r v ic e of
t h e s u m m o n s o r t h e a p p e a r a n c e o f t h e d e f e n d a n t, a n d in a s p e c ia l
p ro c e e d in g a f t e r a q u e s tio n o f f a c t h a s a r is e n , w h e n , 1, t h e w itn e s s is
a p a r t y t o t h e a c tio n o r p ro c e e d in g , b y t h e o p p o s ite p a r t y ; 2, t h e
w itn e s s s re s id e n c e is m o r e t h a n o n e h u n d r e d m ile s fr o m t h e p la c e of
t r i a l ; 3, t h e w itn e s s is a b o u t to go m o re t h a n o n e h u n d r e d m ile s b e y o n d
t h e p la c e o f t r i a l ; 4, t h e w itn e s s is to o in firm to a t t e n d t h e t r i a l ; o r , 5,
t h e t e s t im o n y is r e q u i r e d u p o n a m o tio n , o r in a n y o t h e r c a s e w h e re
t h e o r a l e x a m in a t io n o f t h e w itn e s s is n o t re q u ir e d .
T h e te s t im o n y o f a w itn e s s , o u t o f t h e d is tr i c t, m a y b e t a k e n b y
d e p o s itio n , b y c o m m is s io n is s u e d , u p o n fiv e d a y s ’ n o tic e to t h e o th e r
p a r t y , b y t h e c le rk o f t h e c o u r t , o r ju s ti c e o f t h e p e a c e in a c a u s e in h is
c o u r t , to a p e r s o n a g re e d u p o n b y t h e p a r t ie s , o r, If t h e y d o n o t
a g re e , t o a ju d g e , ju s ti c e o f t h e p e a c e , n o t a r y p u b lic , o r c le r k o f a
c o u r t s e le c te d b y t h e o ffic er is s u in g t h e c o m m is s io n .
T h e a m o u n t o f t h e c o m m is s io n e r’s fe e s s h o u ld b e in d o r s e d u p o n th e
d e p o s itio n .

oym

D e s c e n t a n d D i s t r i b u t i o n . T h e re a l p ro p e rty of a n In te s ta te
d e s c e n d s a s fo llo w s : 1, I n e q u a l s h a r e s to h is o r h e r c h ild r e n a n d
to t h e Issu e o f a n y d e c e a s e d c h ild ' b y 'r i g h t o f r e p r e s e n t a ti o n ; a n d
if t h e r e b e n o c h ild o f i n t e s t a t e liv in g a t t h e ti m e o f h is o r h e r d e a th ,
to a ll h is o r h e r o t h e r lin e a l d e s c e n d a n ts ; a n d if a ll s u c h d e s c e n d a n ts
a r e in t h e s a m e d e g re e o f k in d r e d to t h e in t e s t a t e , t h e y t a k e e q u a lly ;
o th e rw is e , b y r e p r e s e n t a ti o n . 2. I f I n t e s t a t e le a v e n o lin e a l d e s c e n d ­
a n t s , t o h is w ife ; o r if i n t e s t a t e b e a m a r r ie d w o m a n , to h e r h u s b a n d ;
a n d if i n t e s t a t e le a v e n o w ife n o r h u s b a n d , to h is o r h e r f a t h e r . 3.
I f i n t e s t a t e le a v e n o lin e a l d e s c e n d a n ts , n e i th e r h u s b a n d n o r w ife,
n o r f a t h e r , s u c h r e a l p r o p e r t y d e s c e n d s In e q u a l s h a r e s to h is b r o th e r s
a n d . s is te rs , a n d t o t h e is s u e o f a n y d e c e a s e d b r o t h e r o r s is te r b y
r ig h t o f r e p r e s e n t a ti o n ; b u t if i n t e s t a t e le a v e a m o th e r , s h e ta k e s
a n e q u a l s h a r e w ith s u c h b r o th e r s a n d s is te rs . 4. I f i n t e s t a t e le a v e n o
lin e a l d e s c e n d a n ts , n e i th e r h u s b a n d n o r w ife, n o r f a t h e r , b r o th e r ,
n o r s is te r , s u c h r e a l p r o p e r t y d e s c e n d s to h is m o th e r , t o t h e e x c lu s io n
o f t h e is s u e o f d e c e a s e d b r o th e r s a n d s is te r s . 5 . I f i n t e s t a t e le a v e
n o lin e a l d e s c e n d a n ts , n e i t h e r h u s b a n d n o r w ife, n o r f a t h e r , m o th e r ,
b r o th e r , n o r s is te r , s u c h r e a l p r o p e r t y d e s c e n d s to h is n e x t o f k in
in e q u a l d e g re e , e x c e p tin g t h a t w h e n t h e r e a r e tw o o r m o r e c o lla te r a l
k in d r e d in e q u a l d e g re e b u t c la im in g th r o u g h d if f e re n t a n c e s to r s ,
th o s e w h o c la im th r o u g h t h e n e a r e s t a n c e s t o r a r e p r e f e r r e d . 6. I f
i n t e s t a t e le a v e o n e o r m o re c h ild re n , a n d t h e is s u e of o n e o r m o re
d e c e a s e d c h ild r e n , a n d a n y o f s u c h s u r v iv in g c h ild r e n d ie u n d e r
a g e w ith o u t h a v i n g b e e n m a r r ie d , a ll s u c h r e a l p r o p e r t y t h a t c a m e
to s u c h d e c e a s e d c h ild b y in h e r ita n c e fro m s u c h i n t e s t a t e d e s c e n d s
m e q u a l s h a r e s to t h e o t h e r c h ild re n o f s u c h i n t e s t a t e a n d t o t h e is s u e
o f a n y o t h e r c h ild r e n w h o h a v e d ie d , b y r i g h t o f r e p r e s e n t a ti o n . B u t
if a ll t h e o t h e r c h ild r e n o f i n t e s t a t e b e d e a d , a n d a n y o f th e m h a v e
l e f t Issu e , s u c h r e a l p r o p e r t y * s o in h e r ite d b y s u c h d e c e a s e d c h ild
d e s c e n d s t o a ll t h e is s u e , o f s u c h o t h e r c h ild r e n o f t h e I n t e s t a t e in
e q u a l s h a re s , if t h e y a r e in t h e s a m e d e g re e o f k in d r e d to s u c h d e c e a s e d
o h ild ; o th e rw is e , t h e y t a k e b y r i g h t o f r e p r e s e n t a ti o n . 7 . I f in te s ­
t a t e le a v e n o lin e a l d e s c e n d a n ts o r k in d r e d , s u c h r e a l p r o p e r t y e s c h e a ts
to t h e U n ite d S ta t e s .
D o w e r a n d C u r t e s y . T h e w id o w o f e v e ry d e c e a s e d p e r s o n is
e n t itl e d t o d o w e r, o r t h e u s e d u r in g h e r n a t u r a l life o f o n e - t h ir d p a r t
in ],v a lu e o f a ll t h e la n d s w h e re o f h e r h u s b a n d d ie d s e iz e d of a n e s ta te
o f in h e r ita n c e .
W h e n a n y m a n a n d h is w ife a r e se iz e d in h e r r ig h t o f a n y e s t a t e of
in h e r ita n c e in la n d s , t h e h u s b a n d , o n t h e d e a t h o f h is w ife, h o ld s th e
l a n d s f o r h is life a s t e n a n t th e r e o f b y t h e c u r te s v , a l th o u g h s u c h
h u s b a n d a n d w ife m a y n o t h a v e h a d is s u e b o r n alive'.
E v i d e n c e . N o p e rs o n m a y b e e x c lu d e d a s a w itn e s s o n a c c o u n t of
b e in g a p a r t y o r I n te r e s te d in t h e e v e n t o f a n a c tio n o r p ro c e e d in g s
h a v i n g b e e n c o n v ic te d o f a c rim e , o r h is o p in io n s o n m a t t e r s o f r e lig io u s
b e lie f. P e rs o n s o f u n s o u n d m in d a n d c h ild r e n u n d e r t e n y e a r s o f a g e
w h o a p p e a r in c a p a b le o f re c e iv in g j u s t im p re s s io n s o f t h e f a c t r e s p e c t­
in g w h ic h t h e y a r e e x a m in e d o r o f r e l a ti n g th e m t r u l y m a y n o t b e
w itn e s s e s . A n a t t o r n e y m a y n o t, w ith o u t h is c l ie n t’s c o n s e n t, b e
e x a m in e d a s to c o m m u n ic a tio n s m a d e b y h is c lie n t t o h im o r h is a d v ic e
th e r e o n . A p r ie s t m a y n o t , w ith o u t th e c o n s e n t o f t h e p e r s o n m a k in g
t h e o o n fe ssio n , b e e x a m in e d a s t o a n y c o n fe s s io n m a d e t o h im in h is
p ro fe s s io n a l c a p a c it y , In t h e c o u rs e o f d is c ip lin e e n jo in e d b y t h e c h u ro h
t o w h ic h h e b e lo n g s. A p h y s ic ia n o r s u r g e o n m a y n o t, a g a in s t t h e
o b je c tio n o f h is p a t i e n t , b e e x a m in e d , In a c iv il a c tio n , o r p ro c e e d in g
a s t o in f o r m a tio n a c q u ir e d In a t te n d i n g t h e p a t i e n t w h ic h w a s n e c e s ­
s a r y t o e n a b le h im t o p r e s c r ib e o r a c t.

Executions.

(See Judgment and Execution.)

E x e c u t o r s a n d A d m i n i s t r a t o r s . W h e n a w ill is p r o v e n le t t e r s
t e s t a m e n t a r y a r e is s u e d t o t h e p e rs o n s th e r e in n a m e d a s e x e c u to r s ,
o r t o s u c h o f th e m a s g iv e n o tic e o f t h e i r a c c e p ta n c e o f t h e t r u s t a n d
a r e q u a lifie d . A d m in i s t r a ti o n is g r a n t e d a s fo llo w s : 1. T o th e
w id o w o r n e x t o f k in , o r b o th , in t h e d is c r e tio n o f t h e c o u r t ; 2, to o n e
o r m o r e o f t h e p r in c ip a l c r e d i to r s ; o r, 3, t o a n y o t h e r p e r s o n c o m p e te n t
a n d q u a lifie d w h o m t h e c o u r t m a y s e le c t. I f d e c e a s e d w e re a m a r r ie d


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

a d m in is tr a tio n s h a ll In a n y c a s e b e g r a n t e d to t h e h u s b a n d .
If q u a lifie d , a n d h e a p p l y th e r e f o r . C la im s a r e p a id in t h e fo llo w in g
o r d e r : 1. F u n e r a l c h a rg e s . 2. T a x e s d u e t h e U n ite d S ta t e s
3 . E x p e n s e s o f l a s t s ic k n e ss . 4 . A ll o t h e r ta x e s . 5. D e b ts n rp b y t h e Ik w s o f t h e U n ite d S ta t e s . 6 . D e b ts w h ic h a t t h e d e a th
0 . 5 ? d e c e a s e d w e re a lie n u p o n h is p r o p e r t y , in t h e o r d e r o f t h e
p r io r i ty o f t h e lie n s . 7 . D e b ts d u e f o r w a g e s e a r n e d w ith i n n in e ty
d a y s im m e d ia te ly p r e c e d in g d e a th o f d e c e d e n t. 8 . A ll o t h e r c la im s.
E x e m p tio n s .
1. E a r n in g s o f ju d g m e n t d e b t o r , f o r p e rs o n a l s e rv ic e s r e n d e r e d w ith i n s ix ty d a y s n e x t p r e c e d in g t h e le v y o f e x e c u tio n
o r a t t a c h m e n t , w h e n n e c e s s a r y f o r th e u s e o f h is f a m ily s u p p o r te d
In w h o le o r in p a r t b y h is la b o r . 2 . B o o k s , p ic tu r e s , a n d m u s ic a l
I n s tr u m e n ts o w n e d b y a n y p e r s o n , to t h e v a lu e o f $ 7 5 . 3 . N e c e s s a ry
w e a r in g a p p a r e l o w n e d b y a n y p e r s o n f o r t h e u s e o f h im s e lf o r fa m ily
b u t w a tc h e s o r je w e lr y e x c e e d in g $ 1 0 0 in v a lu e a r e n o t ex e m p t*
4 . T h e to o ls . I m p le m e n ts , a p p a r a t u s , te a m , v e h ic le , h a r n e s s , o r
li b r a r y n e c e s s a r y t o e n a b le a n y p e r s o n to c a r r y o n t h e tr a d e , o c c u ­
p a t io n . o r p ro fe s s io n b y w h ic h s u c h p e r s o n h a b i t u a l l y e a r n s h is liv in g ,
to t h e v a lu e o f $ 5 0 0 ; a lso s u ffic ie n t q u a n t i t y o f fo o d t o s u p p o r t su c h
te a m , if a n y , f o r ®ix m o n t h s ; t h e w o r d “ t e a m ” b e in g c o n s tr u e d to
in c lu d e n o t m o r e t h a n o n e y o k e o f o x e n , o r a s p a n o f h o r s e s o r m u le s
o r tw o r e in d e e r , o r s ix d o g s . 5. T h e fo llo w in g p r o p e r t y , if o w n e d
b y t h e h e a d o f a f a m ily a n d in a c t u a l u s e o r k e p t f o r u s e b y a n d
f o r h is f a m ily , o r w h e n b e in g re m o v e d fr o m o n e h a b i t a t i o n to a n o t h e r
o n a c h a n g e o f re s id e n c e : T e n s h e e p , w ith o n e y e a r ’s fle ece o r th e
y a m o r c lo th m a n u f a c tu r e d th e r e f r o m ; tw o co w s a n d fiv e swine*
h o u s e h o ld g o o d s, f u r n it u r e , a n d u te n s ils to t h e v a lu e o f $ 3 0 0 ; also
fo o d s u ffic ie n t t o s u p p o r t s u c h a n im a ls , If a n y , f o r s ix m o n th s , a n d
p ro v is io n s a c tu a ll y p r o v id e d f o r f a m ily u s e a n d n e c e s s a r y f o r th e
s u p p o r t o f s u c h p e r s o n a n d f a m ily f o r s ix m o n th s . 6. T h e s e a t
o r ,5 ?w e e c u p ie d b y t h e h e a d o f a f a m ily o r h is f a m ily in a p la c e of
p u b lic w o rs h ip
7. A ll p r o p e r t y o f a n y p u b lic o r m u n ic ip a l c o r p o r a ­
tio n . N o a r tic le , o r t h e p r o c e e d s d e r iv e d fr o m Its s a le o r e x c h a n g e
is e x e m p t f r o m e x e c u tio n o n a ju d g m e n t r e c o v e r e d f o r it s p ric e .
G arnishm ent. (See A tta c h m e n t .)
H o m e s t e a d . T h e h o m e s te a d o f a n y f a m ily , o r t h e p r o c e e d s th e r e o f .
is e x e m p t. S u c h h o m e s te a d m u s t b e t h e a c t u a l a b o d e o f, a n d o w n e d
b y , s u c h f a m ily o r s o m e m e m b e r th e r e o f , a n d n o t e x c e e d $ 2 ,5 0 0 in v a lu e
n o r e x c e e d 160 a c re s in e x t e n t , if n o t lo c a te d in a to w n o r c i ty la id
o ff I n to b lo c k s o r lo t s ; o r if lo c a te d i n a n y s u c h to w n o r c ity , o n e - f o u r th
o f a n a c re . T h is e x e m p tio n d o e s n o t a p p l y to d e c re e s f o r t h e fo re ­
c lo s u r e o f a n y m o r tg a g e p r o p e r ly e x e c u te d ; b u t if th e o w n e rs o f s u c h
h o m e s te a d b e m a r r ie d , t h e m o r tg a g e m u s t b e e x e c u te d b y h u s b a n d
a n a w ife.
®n t e r e s t . T h e le g a l r a t e o f in t e r e s t is 8 p e r c e n t, b u t o n c o n t r a c ts
i n t e r e s t a t t h e r a t e o f 12 p e r c e n t m a y b e c h a rg e d b y e x p r e s s a g r e e ­
m e n t o f t h e p a r t ie s . I f u s u r io u s in t e r e s t h a s b e e n r e c e iv e d o r c o lle c te d ,
t h e P s j j y p a y m g t h e s a m e , o r h is le g a l r e p r e s e n ta tiv e s , m a y , b y a c tio n
b r o u g h t w ith in tw o y e a rs , r e c o v e r d o u b le t h e a m o u n t o f s u c h in t e r e s t.
11
is a s c e r t a in e d in a n y a c tio n u p o n c o n t r a c t t h a t a n u n a u th o r iz e d
r a t e o f in t e r e s t h a s b e e n c o n t r a c te d fo r , j u d g m e n t m u s t b e re n d e r e d
a g a in s t t h e d e f e n d a n t f o r t h e a m o u n t d u e . w ith o u t in t e r e s t, a n d
a g a in s t t h e p la in tif f f o r c o s ts . I f t h e r a t e c o n t r a c te d f o r Is 8 p e r
c e n t o r le ss, t h e d e b t o r m a y a lso a g r e e to p a y t h e ta x e s u p o n th e
d e b t , c r e d i t, o r m o r tg a g e .
J u d g m e n t a n d E x e c u t i o n . A J u d g m e n t is d o c k e te d lm m e d ia te l y 8^t ^ r e n t r y . A t a n y tim e t h e r e a f t e r w h ile e x e c u tio n m a y
Is su e a c e rtif ie d tr a n s c r i p t o f t h e d o c k e t m a y b e file d in t h e office
o f t h e r e c o r d e r o f a n y r e c o r d in g d is tr i c t, a n d fr o m t h e d a t e o f d o c k e tt a g u a j u d g m e n t o r t r a n s c r i p t th e r e o f t h e j u d g m e n t is a lie n u p o n
a11 t h e r e a l p r o p e r t y o f t h e d e f e n d a n t w ith in t h e r e c o r d in g d is tr i c t
o r d is tr i c ts w h e re d o c k e te d , o r w h ic h h e m a y a f t e r w a r d s a c q u ir e
th e r e in d u r in g t h e ti m e a n e x e c u tio n m a y is s u e . I f n o e x e c u tio n
Issu e s w ith in te n y e a r s t h e lie n e x p ir e s , b u t is re n e w e d if a f t e r w a r d s
le a v e is g iv e n to is s u e e x e c u tio n a n d a t r a n s c r i p t o f th e d o c k e t of
t h e o r d e r d o c k e te d w ith t h e re c o r d e r .
E x e c u tio n m a y is s u e a t a n y ti m e w ith in fiv e y e a r s f r o m t h e e n t r y
o f th e ju d g m e n t, a n d th e r e a f t e r o n o r d e r o f t h e c o u r t m a d e o n m o tio n
o f th e p a r t y in w h o se f a v o r t h e j u d g m e n t w as g iv e n . S u c h m o tio n
m u s t b e s u b s c r ib e d a n d v e rifie d a s a c o m p la in t, a n d s u m m o n s m u s t
b e s e r v e d u p o n t h e j u d g m e n t d e b t o r o r h is r e p r e s e n t a ti v e s , to w h ic h
h e o r th e y m a y d e m u r o r a n sw er. T h e o rd e r m a d e m u s t be d o ck e t e d a s a ju d g m e n t. E x e c u tio n m a y b e a g a in s t t h e p r o p e r t y o f th e
j u d g m e n t d e b to r , h is p e rs o n , o r f o r t h e d e l iv e r y o f t h e p o sse ssio n
o f r e a l o r p e r s o n a l p r o p e r t y o r s u c h d e liv e r y w ith d a m a g e s . E x e c u ti o n fr o m th e d is tr i c t c o u r t is r e t u r n a b le w ith in s i x t y d a y s : f r o m th e
c o m m is s io n e r s c o u r t w ith in t h i r t y d a y s . U n til a le v y p r o p e r t y is
n o t a ffe c te d b y th e e x e c u tio n .

m

Licenses.

(See Taxes.)

L i e n s . E v e r y m e c h a n ic , a r t is a n , m a c h in is t, b u ild e r , c o n t r a c to r ,
l u m b e r m e r c h a n t, la b o r e r , te a m s te r , d r a y m a n , a n d o t h e r p e rs o n
p e r f o r m in g la b o r u p o n o r f u r n is h in g m a te r i a l o f a n y k in d to b e u s e d
in t h e c o n s tr u c tio n , d e v e lo p m e n t, a l te r a t io n , o r r e p a ir , e i th e r in w h o le
o r In P a r t, o f a n y b u ild in g , w h a r f , b rid g e , flu m e , d itc h , m in e , tu n n e l,
fe n c e , m a c h in e r y , o r a q u e d u c t, o r a n y s t r u c t u r e o r s u p e r s tr u c t u r e ,
has
^h e s a m e f o r t h e w o rk o r l a b o r d o n e o r m a te r i a l f u r n is n e a a t t h e in s ta n c e o f t h e o w n e r o f t h e b u ild in g o r o t h e r im p r o v e m e n t o r h is a g e n t; a n d e v e r y c o n t r a c to r , s u b - c o n tr a c to r , a r c h i te c t,
b u ild e r , o r o t h e r p e r s o n h a v i n g c h a rg e o f t h e w o rk , in w h o le o r in
p a r t , is, f o r th is p u r p o s e , d e e m e d t h e a g e n t o f t h e o w n e r.
.
c lv U a c tio n s m u s t b e c o m m e n c e d w ith i n th e
fo llo w in g p e rio d s a f t e r t h e c a u s e o f a c tio n a c c r u e d : W i th in te n
y e a r s — a c tio n f o r t h e re c o v e r y o f r e a l p r o p e r t y , o r t h e p o sse ssio n
th e r e o f ; u p o n a ju d g m e n t o r d e c re e o f a n y c o u r t o f t h e U n ite d S ta te s ,
o r o f a n y s t a t e o r te r r i t o r y w ith in t h e U n ite d S t a t e s ; u p o n a s e a le d
in s tr u m e n t. W i th in s ix y e a r s — a c tio n u p o n a c o n t r a c t o r lia b ility .
o r ^ P i i e d . e x c e p t j u d g m e n t o r s e a le d i n s t r u m e n t ; u p o n a
li a b il ity c r e a te d b y s t a t u t e , o t h e r t h a n a p e n a l t y o r f o r f e itu r e ; f o r
w a s te o r tr e s p a s s u p o n r e a l p r o p e r t y ; f o r ta k in g , d e ta in in g , o r in ju r in g
TTriBP/la l.i>roP e r *^r’ d e l u d i n g a n a c tio n f o r t h e sp e c ific re c o v e r y th e r e o f .
W ith in th r e e y e a r s — a c tio n a g a in s t a m a r s h a l, c o r o n e r , o r c o n s ta b le ,
u p o n a li a b il ity in c u r r e d b y t h e d o in g o f a n a c t in h is o fficial c a p a c it y
o r In v i r t u e of h is office, o r b y t h e o m iss io n o f a n 'o fflc ia l d u t y , in c lu d in g
t h e n o n - p a y m e n t o f m o n e y c o lle c te d u p o n e x e c u tio n , b u t n o t a n
a c tio n f o r a n e s c a p e ; a c tio n u p o n a s t a t u t e f o r p e n a lty o r f o r f e itu r e .
w h e r e ™ e a c tio n is g iv e n to t h e p a r t y a g g r ie v e d , o r t o s u c h p a r t y
a n d t h e U n ite d S ta te s , e x c e p t t h e s t a t u t e p r e s c r ib e a d if f e re n t lim ita tloja.. v v ith in tw o y e a r s — a c tio n f o r lib e l, s la n d e r , a s s a u lt , b a t te r y ,
s e d u c tio n , f a ls e I m p r is o n m e n t, o r f o r a n y i n j u r y t o t h e p e r s o n o r
r ig h t s o f a n o t h e r n o t a r is in g o n c o n t r a c t ; u p o n a s t a t u t e f o r a fo r­
f e itu r e o f p e n a lty t o t h e U n ite d S ta t e s . W i th in o n e y e a r — a c tio n
a g a in s t t h e m a r s h a l o r o th e r o ffic er f o r t h e e s c a p e of a p e r s o n a r r e s te d
o r im p r is o n e d o n c iv il p ro c e s s ; u p o n a s t a t u t e f o r t h e p e n a l t y g iv e n
in w h o le o r in p a r t t o t h e p e r s o n w h o w ill p r o s e c u te , b u t if n o t co m ­
m e n c e d w ith i n o n e y e a r b y p r i v a t e p a r t y m a y b e w ith i n tw o y e a «
; b y t h e U n ite d S ta t e s .
M a r r i e d W o m e n . T h e p r o p e r t y a n d p e c u n ia r y r ig h t s o f e v e ry
m a r r ie d w o m a n a t t h e tim e o f m a r r ia g e , o r a f t e r w a r d s a c q u ir e d
b y g if t, d e v is e , o r I n h e r ita n c e , o r b y h e r o w n la b o r , a r e n o t s u b je c t
to t h e d e b t s o r c o n t r a c ts of h e r h u s b a n d , a n d s h e m a y m a n a g e , sell,
c o n v e y , o r d e v is e t h e s a m e b y w ill t o t h e s a m e e x t e n t a n d In t h e
m a n n e r t h a t h e r h u s b a n d c a n p r o p e r t y b e lo n g in g t o h im . F o r
civ il in ju r ie s d a m a g e s m a y b e re c o v e r e d f r o m a m a r r ie d w o m a n
a lo n e , a n d h e r h u s b a n d is n o t re s p o n s ib le th e r e f o r . C o n tr a c ts m a y

B A N K I N G A N D C O M M E R C IA L L A W S — A R IZ O N A
b e m a d e b y a w ife, a n d lia b ilitie s In c u r r e d , a n d t h e s a m e e n fo rc e d
b y o r a g a in s t h e r t o t h e s a m e e x t e n t a n d in t h e s a m e m a n n e r a s if
■he w e re u n m a r r ie d . A ll la w s w h ic h im p o s e o r re c o g n iz e c iv il d is a ­
b ilitie s u p o n a w ife w h ic h d o n o t e x is t a s to t h e h u s b a n d a r e re p e a le d .
W ife m a y r e c o r d l i s t o f h e r p r o p e r t y a n d s u c h li s t is p r im a fa c ie
e v id e n c e o f h e r s e p a r a t e o w n e rs h ip , a n d p r o p e r t y n o t so re g ­
is te r e d is d e e m e d p r im a fa c ie t h e p r o p e r t y o f t h e h u s b a n d .
N e ith e r h u s b a n d n o r w ife is lia b le fo r t h e d e b t s o r lia b ilitie s o f t h e
o th e r I n c u r r e d b e fo re m a r r ia g e . H u s b a n d a n d w ife m a y m a k e c o n v e y ­
a n c e s a n d t r a n s f e r s a n d c r e a te lie n s b e tw e e n th e m s e lv e s , a n d e i th e r
m a y c o n s ti tu te t h e o t h e r h is o r h e r a t t o r n e y In f a c t . A w o m a n
b e c o m e s o f a g e a t tw e n t y - o n e o r u p o n b e in g m a r r ie d a c c o r d in g t o la w .
M o r t g a g e s . M o rtg a g e s a r e e x e c u te d , a c k n o w le d g e d , a n d r e c o rd e d
in t h e s a m e m a n n e r a s d e e d s . N o c o v e n a n t Is im p lie d f o r t h e
ia y m e n t o f t h e s u m In te n d e d to b e s e c u re d . R e c o rd o f a s s ig n m e n t
■ n o t n o tic e t o t h e m o r tg a g o r , h is h e ir s , o r p e r s o n a l r e p r e s e n t a ­
tiv e s . M o rtg a g e m a y b e d is c h a rg e d b y e n t r y in m a r g in o f re c o r d
s ig n e d b y m o r tg a g e e o r h is p e r s o n a l r e p r e s e n t a ti v e o r a s s ig n e e a n d
w itn e s s e d b y t h e c o m m is s io n e r o r d e p u t y , o r b y c e rtif ic a te e x e c u te d
a n d a c k n o w le d g e d a s o t h e r c o n v e y a n c e s . F o re c lo s u re is b y a c tio n
e f a n e q u i ta b l e n a t u r e In w h ic h a d e fic ie n c y ju d g m e n t m a y b e h a d .
N o t e s a n d B i l l s o f E x c h a n g e . O n a ll b ills o f e x c h a n g e a n d
a ll n e g o tia b le p r o m is s o r y n o te s , o r d e r s , a n d d r a f t s p a y a b le a t a
f u t u r e d a y c e r t a in w ith i n t h e d is tr i c t, g ra c e Is a llo w e d : b u t g ra c e
Is n o t a llo w e d o n b ills o f e x c h a n g e , n o te s , o r d r a f t s , p a y a b le a t s ig h t
or on dem and.
R e c o r d s . A n u n r e c o r d e d c o n v e y a n c e o f r e a l p r o p e r t y Is v o id
a s a g a in s t a n y s u b s e q u e n t in n o c e n t p u r c h a s e r in g o o d f a i t h a n d f o r
a v a l u a b le c o n s id e r a tio n w h o se c o n v e y a n c e is fir s t d u ly r e c o rd e d .
A c o m m is s io n e r is ex -o fficio r e c o r d e r o f a re c o r d in g d is tr i c t, th e
b o u n d a r ie s of w h ic h a r e fix e d b y t h e c o u r t . C o n v e y a n c e s o f la n d s
n o t in a n y r e c o rd in g d i s t r i c t a r e re c o rd e d w ith t h e c le rk of t h a t d iv i­
s io n o f t h e d i s t r i c t c o u r t w ith in t h e li m it s o f w h ic h s u c h la n d s a r e
s itu a te d .
R e p l e v i n . T h e p la in tiff, a t a n y ti m e a f t e r t h e c o m m e n c e m e n t
o f a n a c tio n to re c o v e r t h e p o s se ss io n o f p e r s o n a l p r o p e r t y a n d b e fo re
j u d g m e n t, m a y c la im t h e im m e d ia te d e liv e r y o f s u c h p r o p e r t y u p o n
filin g a n a ff id a v it s h o w in g t h a t h e is t h e o w n e r o f t h e s a m e o r e n t itl e d
to t h e p o s se ss io n th e r e o f ; t h a t t h e p r o p e r t y is u n la w f u lly d e ta in e d
b y d e f e n d a n t: th e a lle g e d c a u s e o f d e t e n ti o n ; t h a t t h e s a m e h a s n o t
b e e n t a k e n fo r a t a x a s s e s s m e n t o r fin e, p u r s u a n t t o a s t a t u t e , o r
s e iz e d u n d e r a n e x e c u tio n o r a t t a c h m e n t a g a in s t t h e p r o p e r t y of
th e p la in tiff; o r, if so s e iz e d , t h a t i t is e x e m p t; a n d t h e a c tu a l v a lu e
of th e p ro p e rty
S e rv ic e .
(See A c tio n s.)
S u p p le m e n ta ry P ro c e e d in g s .
(S ee J u d g m e n t a n d E x e c u tio n .)
T a x e s . E v e r y p e r s o n o r c o r p o r a tio n p ro s e c u tin g o r a t t e m p t i n g
to p r o s e c u te a n y o f t h e fo llo w in g lin e s o f b u s in e s s w ith i n t h e d i s t r i c t
m u s t f irs t a p p l y f o r a n d o b t a i n lic e n s e so t o d o fr o m t h e d i s t r i c t
o o u r t o r a s u b d iv is io n th e r e o f , a n d p a y p e r a n n u m f o r s u c h lic e n s e
f o r t h e r e s p e c tiv e lin e s o f t r a d e a n d b u s in e s s a s fo llo w s : S a lm o n
c a n n e r ie s , 4 c e n ts p e r c a se ; s a lm o n s a lte r ie s , 10 c e n ts p e r b a r r e l ;
fish o il w o rk s. 10 c e n ts p e r b a r r e l : f e r tiliz e r w o rk s . 20 c e n ts p e r t o n ;
f r e i g h t a n d p a s s e n g e r t r a n p o r t a t i o n s lin e s , p ro p e lle d b y m e c h a n ic a l
p o w e r o n in la n d w a te rs a n d o c e a n a n d c o a s tw is e v e s s e ls d o in g lo c a l
b u s in e s s fo r h ire , $1 p e r t o n o n n e t to n n a g e - ra ilr o a d s , $100 p e r
m ile ; tr a m w a y s , $10 p e r m ile ; s a w -m ills , 10 c e n ts p e r th o u s a n d f e e t
o n l u m b e r s a w e d ; q u a r t z m ills , $3 p e r s ta m p ; m e r c a n tile e s ta b lis h ­
m e n ts a n d m a n u f a c to r ie s d o in g a b u s in e s s o f u n d e r $ 4 ,0 0 0 p e r a n n u m ,
$ 1 0 , a n d In p r o p o r tio n t o t h e a m o u n t o f b u s in e s s d o n e t o $500 f o r
e s ta b lis h m e n ts cfoing a b u s in e s s o f $ 1 0 0 ,0 0 0 p e r a n n u m ; in o th e r lin e s
o f t r a d e a n d b u s in e s s t h e a m o u n t is fix e d f o r e a c h a n d r a n g e s fro m
$10 to $500.
W ills .
E v e r y p e rs o n o f tw e n t y - o n e y e a rs o f a g e , o f s o u n d m in d ,
m a y d is p o s e o f a ll h is o r h e r p r o p e r t y b y w ill, s a v in g a w id o w ’s d o w e r
a n d a h u s b a n d ’s r ig h t s a s t e n a n t b y t h e c u r t e s y . W ill m u s t b e in
w r itin g , s ig n e d b y t h e t e s t a t o r , o r u n d e r h is d ir e c tio n , in h is p re s e n c e ,
a n d a t t e s t e d b y tw o o r m o re c o m p e te n t w itn e s s e s s u b s c r ib in g t h e i r
n a m e s In t h e p re s e n c e o f t h e t e s t a t o r . A w ill b y a n u n m a r r ie d p e rs o n
to re v o k e d b y h is s u b s e q u e n t m a r r ia g e . C h ild re n o r d e s c e n d a n ts
of c h ild re n n o t n a m e d o r p r o v id e d f o r in t h e w ill t a k e a s if t e s t a t o r
h a d d ie d i n t e s t a t e . A m a r in e r a t s e a o r s o ld ie r in m i l i t a r y s e rv ic e
m a y d is p o s e o f h is p e r s o n a l p r o p e r t y a s a t c o m m o n la w . P ro o f
of n u n c u p a tiv e w ill m u s t b e m a d e w ith i n s ix m o n t h s , a n d t h e w o rd s
o r t h e ir s u b s t a n c e r e d u c e d t o w r itin g w ith in t h i r t y d a y s a f t e r t h e y
a r e s p o k e n . A p e rs o n o w n in g p r o p e r t y in , b u t n o t a n I n h a b i t a n t
e f, t h e d i s t r i c t m a y d e v is e o r b e q u e a th t h e s a m e a c c o r d in g t o t h e
la w s o f h is d o m ic ile . I f s u c h w ill b e p r o b a t e d w ith o u t t h e d is tr i c t,
c o p ie s o f t h e w ill a n d t h e p r o b a t e th e r e o f , c e rtifie d b y t h e c le rk of
t h e c o u r t In w h ic h i t w a s p r o b a t e d , w ith t h e s e a l o f t h e c o u r t affix e d
t h e r e to , if t h e r e b e a s e a l, t o g e th e r w ith a c e rtif ic a te o f t h e c h ie f
ju d g e o r p re s id in g m a g is tr a t e , t h a t t h e c e rtif ic a te Is in d u e fo r m ,
a n d m a d e b y t h e c le rk o r o th e r p e r s o n h a v i n g t h e le g a l c u s to d y
e f t h e re c o rd , m a y b e r e c o rd e d , a d m i t t e d in e v id e n c e , o r c o n te s te d
a n d a n n u lle d a s if e x e c u te d a n d p ro v e d w ith in t h e d is tr i c t.

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R e v is e d b y F r a n c is D . C r a b le . A tto r n e y - a t- L a w , F la g s ta ff, A riz o n a .
A c c o u n t s . W h e n s t a t e d d r a w in t e r e s t; w h e n a c tio n is u p o n
ite m iz e d a c c o u n t a n d a f f id a v it o f p a r t y , h is a g e n t o r a t t o r n e y is
a t t a c h e d , s t a t i n g t h a t s u c h " a c c o u n t is, w ith i n a f f ia n t’s k n o w le d g e ,
j u s t a n d t r u e , t h a t i t is d u e , a n d t h a t a ll j u s t a n d la w fu l o ffs e ts ,
c l a im a n ts , a n d c r e d its h a v e b e e n a llo w e d ,” is p r im a fa c ie e v id e n c e ,
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A c k n o w l e d g m e n t s . T h e fo r m o f a n o r d in a r y c e rtif ic a te o f a c ­
k n o w le d g m e n t s h a ll b e s u b s t a n ti a ll y a s fo llo w s:
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, b y (if b y a n a t u r a l p e rs o n o r p e rs o n s
h e r e in s e r t n a m e o r n a m e s ; i f b y a p e rs o n a c tin g in a r e p r e s e n t a ti v e
o r o fficial c a p a c ity , o r a s a t t o r n e y in f a c t , t h e n in s e r t n a m e o f p e r s o n
a s e x e c u to r, a t t o r n e y in f a c t , o r o th e r c a p a c it y ; i f b y a n officer o r
.o ffic e rs o f a c o r p o r a tio n , t h e n in s e r t n a m e o r n a m e s o f s u c h officer
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E v e r y in s tr u m e n t a f fe c tin g r e a l p r o p e r t y in th i s s t a t e e x e c u te d ,
a c k n o w le d g e d a n d c e rtif ie d in a n y o th e r s t a t e o r t e r r i t o r y i n a c c o r d ­
a n c e w ith t h e la w s o f s u c h s t a t e o r te r r ito r y , s h a ll b e v a lid a n d e n ­
t i t l e d t o r e c o r d a s i f e x e c u te d in a c c o r d a n c e w ith t h e la w s o f th i s
s ta t e .
A c tio n s .
D is tin c tio n in fo r m s b e tw e e n la w a n d e q u i ty a r e a b o l­
is h e d . P le a d in g s a r e : C o m p la in t a n d a n s w e r , a n d in s o m e c a se s a
r e p ly .
A d m i n i s t r a t i o n o f E s t a t e s . L ie in S u p e r io r C o u r t. N o p u b lic
a d m in is tr a to r . W h e re p e r s o n d ie s i n t e s t a t e le t t e r s s h a ll Issu e.
A f f i d a v i t s . M a y b e t a k e n b e fo re a n y o fficer a u th o r iz e d t o t a k e
a c k n o w le d g m e n ts .
A l i e n s . U n le s s r ig h t s a r e s e c u r e d b y t r e a t y c a n n o t h o ld la n d In
t h e s t a t e , m a y a c q u ir e b y in h e r ita n c e , o r in o r d in a r y c o u r s e o f ju s ­
ti c e in t h e c o lle c tio n o f d e b t s ; m a y a c q u ir e lie n s o n r e a l e s ta te , m a y
le n d m o n e y a n d s e c u re s a m e o n r e a l e s ta te , b u t t i t l e so a c q u ir e d m u s t
b e s o ld w ith in fiv e y e a r s ; m a y a c q u ir e p a t e n t e d m in e s a n d h o ld
s to c k in d o m e s tic c o r p o r a tio n o w n in g u n p a t e n t e d m in e s .
T h e la w s p r o v id e t h a t t h e la w s o f t h e s t a t e p e r t a in i n g t o a lie n s
s h a ll n o t b e c o n s tr u e d a s t o c o n flic t i n a n y m a n n e r w ith a n y r ig h t s
e x is tin g u n d e r a n d b y v i r t u e o f a n y t r e a t y o f t h e U n ite d S ta t e s
w ith a n y o th e r c o u n tr y .
A p p e a l s . A p p e a ls a r e a llo w e d f r o m ju s ti c e o f p e a c e t o s u p e r io r
c o u r t in c e r t a in c a se s a n d f r o m s u p e r io r c o u r t t o s u p r e m e c o u r t
w h e r e a m o u n t in v o lv e d is $ 2 0 0 o r o v e r .
A r b i t r a t i o n . T h e r e a r e s t a t u t o r y p ro v is io n s w h ic h a r e n o t
e x c lu s iv e o f t h e c o m m o n la w a r b i tr a ti o n .
A r r e s t . A b o lis h e d in c iv il ca ses, d e b t o r f r a u d u l e n tly re m o v in g
p r o p e r t y o u t o f t e r r i t o r y o r c o n c e a lin g i t m a y b e p r o s e c u te d c r im in a lly .
A t t a c h m e n t . W r i t w ill is s u e o n a f f id a v it s h o w in g : 1. T h a t
d e f e n d a n t is in d e b te d t o p la in tif f u p o n a c o n t r a c t, e x p r e s s o r Im p lie d ,
f o r t h e d ir e c t p a y m e n t o f m o n e y a n d t h a t s u c h c o n t r a c t w a s m a d e o r
is p a y a b le in t h i s T e r r i to r y , a n d t h a t t h e p a y m e n t o f t h e s a m e h a s n o t
b e e n f u lly s e c u r e d b y m o r tg a g e , lie n , o r p le d g e o f p e r s o n a l p r o p e r t y ,
o r if o r ig in a lly so s e c u r e d , t h a t s u c h s e c u r i ty h a s , w ith o u t a n y a c t o f
p la in tif f o r t h e p e r s o n to w h o m t h e s e c u r i ty w a s g iv e n , b e c o m e v a l u e ­
le ss , a n d s h a ll s p e c if y th e c h a r a c te r o f t h e in d e b te d n e s s , t h a t t h e s a m e
is d u e t o t h e p la in tif f o v e r a n d a b o v e a ll le g a l s e t-o ffs o r c o u n te r - c la im s ,
a n d th a t d e m a n d h as b een m a d e fo r th e p a y m e n t of a m o u n t due: o r.
2. T h a t d e f e n d a n t is in d e b te d t o p la in tif f , s t a t i n g a m o u n t a n d c h a r ­
a c t e r o f d e b t ; t h a t s a m e is d u e a n d p a y a b le o v e r a n d a b o v e a ll le g a l
s e t-o ffs a n d c o u n te r - c la im s , a n d t h a t d e f e n d a n t is a n o n - r e s id e n t o f
th i s T e r r i to r y o r is a f o re ig n c o r p o r a t io n d o in g b u s in e s s in th i s T e r r i­
t o r y ; o r, 3 . T h a t a n a c tio n is p e n d in g b e tw e e n t h e p a r tie s , a n d t h a t
d e f e n d a n t is a b o u t t o r e m o v e h is p r o p e r t y b e y o n d t h e ju r i s d i c ti o n o f
t h e c o u r t t o a v o id p a y m e n t o f j u d g m e n t; a n d , 4 . T h a t t h e a t t a c h ­
m e n t is n o t s o u g h t f o r a w ro n g f u l o r m a lic io u s p u r p o s e , a n d t h a t th e
a c tio n is n o t p r o s e c u te d t o h in d e r o r d e la y a n y c r e d i to r o f d e f e n d a n t.
5 . N o s u c h a t t a c h m e n t s h a ll Issu e u n t i l s u i t h a s b e e n d u ly i n s t i t u t e d ,
b u t i t m a y b e is s u e d in a p r o p e r c a s e e i th e r a t t h e c o m m e n c e m e n t o f
t h e s u i t o r a t a n y ti m e d u r in g it s p ro g re s s . 6. T h e w r it m a y is s u e ,
a l th o u g h p la in tif f ’s d e b t o r d e m a n d b e n o t d u e u n d e r s p e c ifie d f a c t s o i
I n te n t t o d e f r a u d ; n o fin a l j u d g m e n t s h a ll b e r e n d e r e d u n t i l s u c h d e b t
o r d e m a n d s h a ll b e c o m e d u e . W r i t m a y is s u e a t o r a f t e r a c tio n b e g a n
u p o n p la in tif f o r s o m e o n e In h is b e h a lf filin g t h e a f f id a v it, a n d u p o n
filin g a b o n d w ith tw o s u r e tie s in a n a m o u n t e q u a l to a m o u n t s u e d f o r
S u r e tie s c a n b e c o m p e lle d t o j u s t i f y u p o n n o tic e . W h e n m o r e t h a n
o n e a t t a c h m e n t is le v ie d o n s a m e p r o p e r t y w r its t a k e p r i o r i t y acco rd *
in g to ti m e o f le v y . (S ee L ie n s , G a r n is h m e n t.)
B a n k s — S a v in g s a n d L o a n . M a y b e in c o r p o r a te d t o lo a n a n d
I n v e s t p r o p e r t y . M ay h o ld lo t a n d b u ild in g in w h ic h b u s in e s s is
c a rr ie d o n t o v a lu e o f $ 1 0 0 ,0 0 0 ; s u c h a s m a y a c c u m u la te o n g o o d
f a i th lo a n s a n d s u c h p e r s o n a l p r o p e r t y a s m a y b e r e q u ir e d in t r a n s ­
a c tin g it s b u s in e s s . T o p u r c h a s e a n d c o n v e y e v id e n c e o f d e b t e x c e p t
n a t io n a l , te r r ito r i a l, a n d m u n ic ip a l p o n d s m u s t h a v e a c a p ita l o f
$ 1 0 0 ,0 0 0 . M a rrie d w o m e n a n d m in o r s m a y t r a n s a c t b u s in e s s w ith
s u c h b a n k s . A re r e q u i r e d t o h a v e lic e n s e a n d a r e e x a m in e d b y t h e
b a n k e x a m in e r . P r o v is io n s a r e m a d e f o r t h e c o n t e n ts o f t h e c h a r t e r .
B i l l s a n d N o t e s . T h e n e g o tia b le I n s t r u m e n t c o d e a d o p t e d b y t h e
A m e r ic a n B a r A s s o c ia tio n is i n fo rc e . J o i n t o b lig o r m a y b e re le a s e d
w ith o u t r e le a s in g o th e r s . (S ee H o ld in g s .)
B o n d s . A n y s t a n d a r d s u r e t y c o m p a n y , o rg a n iz e d u n d e r la w s o f
U n ite d S ta t e s o r of a n y s t a t e , m a y e x e c u te b o n d s i n ju d i c ia l p r o c e e d ­
in g s w ith in t h e s t a t e w h e n t h e y h a v e c o m p lie d w ith lic e n s e la w s.
(S ee G u a r a n t y C o m p a n ie s.)
C h a t t e l M o r t g a g e . T o b e v a lid a g a in s t o th e r s t h a n t h e p a r tie s
t h e r e to , c h a t t e l m o r tg a g e m u s t s e t o u t t h e r e s id e n c e o t t h e m o r tg a g o r
a n d t h e m o r tg a g e e , t h e r a t e o f i n t e r e s t to b e p a id a n d ti m e a n d p la c e o f
p a y m e n t o f t h e d e b t s e c u r e d , a n d b e a c c o m p a n ie d b y t h e a f f id a v it of
b o th m o r tg a g o r a n d m o r tg a g e e t h a t t h e m o r tg a g e is b o n a fid e a n d
m a d e w ith o u t d e s ig n to d e f r a u d o r d e l a y c r e d i to r s . I m m e d ia te
d e liv e r y o f t h e m o r tg a g e d p r o p e r t y m u s t b e m a d e to t h e m o r tg a g e e
a n d t h e c h a n g e o f p o sse ssio n m u s t b e a c t u a l a n d c o n tin u e d , u n le ss t h e
m o r tg a g e o r a t r u e c o p y th e r e o f s h a ll b e f o r th w it h d e p o s ite d a n d filed
In t h e office o f th e r e c o r d e r o f t h e c o u n t y w h e r e t h e p r o p e r t y sh a ll
th e n b e s i tu a te d .
R e m o v a l s a le , o r o th e r d is p o s itio n o f m o r tg a g e d
p r o p e r t y w ith o u t c o n s e n t o f m o r tg a g e e e n t itl e s m o r tg a g e e t o im m e ­
d ia te p o s se ss io n o f it , a n d s u c h r e m o v a l, tr a n s f e r , o r s a le , o r s u b s e q u e n t
e n c u m b r a n c e Is fe lo n y . I f m o r tg a g e e p e r m its m o r t g a g e d p r o p e r t y to
b e re m o v e d to a n o t h e r c o u n t y , h e s h a h w ith i n o n e m o n t h r e c o r d h is
m o r tg a g e in s u c h o t h e r c o u n t y . C h a t te l m o r tg a g e m a y b e f o re d o s e d i n j u s ti c e c o u r t if a m o u n t o f d e b t d o e s n o t e x c e e d $ 3 0 0 ; o th e r
w ise In d is tr i c t c o u r t . M o r tg a g e e m a y o b t a i n p o s s e s s io n o f p r o p e r t y
o n d e f a u l t a n d se ll a f t e r n o ti c e w h ic h m u s t b e s e r v e d o n o w n e r.
U pon
s to c k o f g o o d s, w a re s , a n d m e r c h a n d is e w ith c o n tin u e d p o s se ss io n in
m o r tg a g o r , v o id . I f c o p y is filed w ith r e c o r d e r , o r ig in a l m u s t b e
a c k n o w le d g e d , a n d c o p y c e rtif ie d t o b y c o u n t y re c o r d e r .
C la im a n d D e liv e r y .
(S ee R e p le v in .)
C o l l a t e r a l s . N o s t a t u t o r y p ro v is io n s — c o m m o n la w p r e v a ils .
C o m m u n ity P ro p e rty .
(S ee C o n v e y a n c e s .)
C o n d i t i o n a l S a l e s , W h e re t i t l e r e m a in s in v e n d o r u n ti l p u r c h a s e
p r ic e is p a id , v o id a s to p e rs o n s n o t p a r t ie s th e r e to , a n d p e rs o n s
w ith o u t n o tic e , u n le s s s u b s c r ib e d , a c k n o w le d g e d , a n d filed w ith
o o u n ty re c o r d e r .
C o n tra c ts .
(S ee B ills a n d N o te s .)
O n e o r m o r e o b lig o rs o n a
j o i n t o r j o i n t a n d s e v e r a l i n s t r u m e n t m a y b e r e le a s e d w ith o u t r e le a s in g
t h e o th e r s , a n d m a y b e s u e d s e p a r a t e ly u n d e r c e r t a in c o n d itio n s w ith ­
o u t r e le a s in g t h e o th e r s . M a r r ie d w o m e n m a y c o n t r a c t a s if so le.
C o n v e y a n c e s . C o n v e y a n c e s o f e s t a t e in la n d s f o r t e r m m o r e t h a n
o n e y e a r s h a ll b e b y in s t r u m e n t in w r itin g s u b s c r ib e d b y p a r t y m a k in g
it, o r h is a g e n t, d u ly a u t h o r iz e d t h e r e to b y w r itin g . A c o n v e y a n c e is
n o t e f f e c tu a l a g a in s t c r e d ito r s o r b o n a fid e p u r c h a s e r s u n le s s re c o r d e d
i n r e c o r d e r ’s office i n c o u n t y w h e r e la n d Is s itu a te . A c o n v e y a n c e
p u r p o r ti n g t o c o n v e y a h e a t e r e s t a t e t h a n t h e g r a n t o r h a s p a s s e s o n ly
th e e s t a t e t h a t h e a c t u a l l y h a s . A g e n e ra l g r a n t o r d e v is e p a s s e s t h e
fe e u n le s s e x p re s s ly lim ite d t o a le ss e s ta te . A ll d e e d s t o r e a l t y m u s t
b e s ig n e d b y b o t h h u s b a n d a n d w ife e x c e p t a s t o u n p a t e n te d m in in g
c la im s
D ee d s m u s t b e s ig n e d a n d m u s t b e a c k n o w le d g e d b e f o r e
s o m e o fficer a u t h o r iz e d t o t a k e a c k n o w le d g m e n t, a n d p r o p e r ly c e r ­
tif ie d b y h im t o e n t itl e s a m e t o r e g is tr a tio n . T h e u s e o f t h e w p r d

1392

B A N K I N G A N D C O M M E R C IA L L A W S — A R IZ O N A

, orrr ^ ? nvey V
tbe following covenants and none
other. 1. T hat previous to the time of the execution of tJUe convej^nce the grantor has not conveyed the same estate, or any right
title or interest therein, to any person other than the grantee. 2 ’
T hat such estate is at the time of the execution of such conveyance
fre?
incumbrances. Married women seventeen years of age
^ a y convey tbeir own lands without being joined by
H o m ^tead °dS’ SeG Acka°wle>dgment, Dower, Husband and Wife,
o „ C o m m i s s i o n , o rg a n iz e d u n d e r C h a p t e r 9 0 , F i r s t
S e s sio n , L a w s 1912. H a s g e n e ra l s u p e rv is io n o f c o r p o r a tio n s .

. C orporations in G eneral, Any number of nersons mav hwnmo
™ 2 I ated f0K ti?e transaction of any lawful business. Before comwh
o5ii1^,„bu-smeSs’ H ii. .must adopt articles of incorporation
mpri l ttie
a?,d acknowledged by them as deeds and be
« M W b g f e S of the Corporation commission at the State Capital
copy thereof Sled m the office of the County Recorder
Mllljfft! county m the state m which they transact business. The
articles
“ corporation must contain: 1. The name of corooSQgSN and its principal place of transacting business. 2. The general
O1.111®business proposed to be transacted. 3. The amount of
capital stock authorized and the times when and conditions upon
ta- J - The time of the commeniement and
» f ^ j^ e ? b k ° ,î
°orporation. 5. By what officers or persons the
Jbe corporation are to be conducted, and the times a t which
h a h T i i t v t « 6' The.highest amount of indebtedness or
liability to which the corporation is a t any tim e to subject itself which
ot Its capital stock. 7. Whether private
0 be
from corporate debts. Unless so exempted
f9r Jbe debts of the corporation In the proajock bears to the whole capital stock. Must
iî? ^ü?A8ibe4 u°r , s x ‘Jays in some newspaper in the county where
îri?hP^bo1Pn J ^ l n<KS is i?cate4- . Proof of publication must be filed
Zi*“ . *be Corporation Commission. Corporations to endure for
twenty-five years. Corporation must file in office of Corporation Com1 É M an appointment of agent who is a bona fide r S n t of tffis
three years prior thereto, on whom all notices and process
summons, may be served and constitutes personal service.
Charges for incorporation : Recorder’s fees, 20 cents folio. Recorder’s
7l f SV»B^t=flen Copy’ Î? cenJ^ foU9- 1 Recorder’s fees certificate to copy,
PWT,tî~?'r«„Co p?rau°n Commission’s fees, filing cost copy, $ 1 0 !
PrintOTs fees per inch, publishing articles six days, 80 cents. Corporao«™J££^mi®sî>on 8 /« es’ flUnÇ Proof, publishing $3.00. Corporation
Com m isions fees, filing appointment of agent, $5.00. Where charter
provides assessments may be levied on shares to par value (1907).
FoJeiSJV, Before it can transact business It must
«i«„*ertlfled copy of Articles with Corporation Commission and
,n e°unty of principal place of business, also an
may be madV1 gent Upon Trhom » service personal to the corporation

<a<5S‘p"ii“S 'io ? S £ f4- Are <>«*»“»“ «“ <" •
Corporations. Savings and Loan.

en*-

(See Banks and Banking.)

.Stock, Transfer of. Transfer of stock shall not be
valid, except as between the parties thereto, until the same is regularly
books of the company, so as to show the namefof the
wb®m 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
upon which execution may be levied, are required to give
security f°r* within ten days after order made; bonds for, must
authorize judgment to bo entered against sureties.
f Cfurta: Are the Supreme Court of the State, the U. S. district court
of An*j°na; one superior court for each Oounty jus^5®,®®9^be peace, recorders of cities. Thé superior court of the several
1 ^ ^ ouft °^. general jurisdiction, both civil and criminal. It
appellate jurisdiction. Its original jurisdiction
extends to all civil cases where the amount involved exceeds ¡8*200
exclus ve of interest, and in all cases involving the MWe to m p ^ e â io S
ÎÎÎ
HJ9®tlce,,courts. bav® general jurisdiction when amount
to

®XCePt When title t0 real œ ta te

Creditors’ Bills.
Days of Graco.

No statutory provisions.
None.

®iay now be taken either upon oral examination,
and.,,¿crpB^xaMfi^tfon Gr upon written interrogatories and cross
mterrogatones, as is generally provided.
D escent and D istribution. (See Savings Banks.) The law of
pr°perty prevails. The separate estate of an intestate,
when he or she shall ale leaving surviving no husband or wife, shall
descend as provided. When an intestate leaves surviving a wife ot
b^bfud another method Is provided. Children of the Intestate
bothers, sisters, uncles and aunts, take per capita. All property
b$#£?bg M f% [Æ m iM ty estate of the husband and wife shall gS
ÎS-t5î„iurviv2r’ If the deceased spouse have no child or children; if
a ®bdd or children, his or her surviving spouse will
take one-half, and the other half goes to such child or children The
community Property always passes charged with the debts against
l.hnH^ev,mrfr? a/ e between man and woman to whom a child or
ïnîm
been bom. and recognition by the father of such
Çblld or children legitimizes the child or children. Bastards Inherit
frpm the mother and transmit estates as if legitimate. The statute
ëomestttod) ^be ad°Prion °f heirs. (See Dower, Husband and Wife,
Dower. Dower is abolished.
Ahe co^nonlaw rales have not been codified. Parties
may be examined andthe other side not concluded thereby. Statutes
states and territories purporting to be printed under authority
ïS,t£fbe
„ I g °?e ls. incompetent to testify because of religious
belief. Certified copies of all records in territory may be read. Certi­
fied copies of records of all notaries may be read. Court may order
inspection or copy of documents.
y
c
Upon a judgment of superior court, executions may
bg.î?s +£d Î? aby county. Lien of dates from levy, and if on real prop®Py* tbe description is endorsed on execution and filed with county
A range levy may be made upon all of stock trader a certain
brand in same manner as upon real estate. (See Judgment, Liens.)
PjePlental to execution—when returned unsatisfied,
¿-°r l8entLtled tci a? order requiring debtor to answer concerning
y sp ro P ^ rtF ’ but not elsewhere than in the county of his residence.
| hB|§1 Parties may, upon affidavit, be required to surrender property,
pbbrt or judge may order suit brought to determine the denial of
owning or of having property.
E xem ptions. Every person who is the head of a family, and
within this state, may hold as a homestead,
exempt from attachment, execution and forced sale, real property
^ i ’V i 6CtedA y bim or her, which homestead shall be in one comPac*body, not to exceed in value four thousand dollars, upon filing
affidavit designating such homestead in the Office of the County


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

R e c o r d e r o n c o u n t y w h e r e p r o p e r t y is s itu a te d . S u c h h o m e s te a d
e£ eii1*u; f r o m d a t e o f filin g s a id a f f id a v it. T h e fo llo w in g p r o p e r t y
f A » L b i t e x e m p t f r ° m e x e c u tio n , a t t a c h m e n t a n d s a le o n a n / p r o e m s
f r o m a n y c o u r t : 1. T h e f a m ily b ib le . 2. A s e a t o r p e w i n
h o u s e o r P la c e o f p u b lic w o rsh ip . 3. A l o t in a n y b u r ia l g r o u n d
4 . N e c e s s a r y h o u s e h o ld , t a b le a n d k it c h e n f u r n it u r e , in c lu d in g v iz '
5. T h e to o ls o r im p le m e n ts o f a m e c h a n ic o r a r t is a n necessary tr ,
c a r r y o n h is t r a d e ; e tc . 6. T h e se w in g m a c h ffie ’S d ^ t o p f e m e n t s
a , 1s e a m s tr e s s a c tu a ll y u s e d in p u r s u in g h e r v o c a tio n . 7
O ne
o n e se w in g m a c h in e , o n e ty p e w r i tin g m a c h in e , a n d ¿ n e b i­
c y c le .
7 a . F iv e m ilc h co w s. 8. T h e c a m p in g o u tf i t o f e v e rv
p r o s p e c to r m th i s s t a t e , in c lu d in g h is m in in g to o ls , s a d d le s a n d b u r r o Z
« tn T r a f iA i f u te n s ils a n d im p le m e n ts o f h u s b a n d r y o f t h e d e b to r .
Si®*
P o u l t r y n o t e x c e e d in g in v a lu e tw e n ty - f iv e d o lla rs , l l
T ^ 0 .bof,ses a n d tw o m u le s a n d t h e ir h a r n e s s ; o n e c a r t o r w a g o n :
o r t r u ®b; o n e c o u p e ; o n e h a c k o r c a rr ia g e f o r o n e o r t w o
° P e a u to m o b ile b y t h e u s e o f w h ic h a c a r m a n , d r a y m a n ,
h u c k s te r , ^h a c k m a n , te a m s te r , c h a u ffe r, o r o th e r l a b o r e r
h a b i tu a l ly e a r n s h is liv in g , a n d o n e h o r s e w ith v e h ic le o r h a r n e s s o r
PriA iL iiU U S 8 d A y a s u rg e o n , p h y s ic ia n , c o n s ta b le o r c le r g y m a n
m t h e le g itim a te p r a c t ic e o f h is p ro fe s s io n ; w ith fo o d f o r s u c h h o rs e s
9 n e .P b P ^ h - 12. F u e l n e c e s s a r y f o r t h e u s e o f t h e
d e b t o r a n d h is f a m ily f o r t h e p e r io d o f s ix m o n th s . 13. T h e p re s s e s
t y P e > c a se s a n d o th e r to o ls a n d im p le m e n ts u s e d b y a n y
p m i O * c o p a r tn e r s h ip in p r in t in g o r p u b lis h in g a n e w s p a p e r o r in
c o n d u c tin g a n y p r in t in g e s ta b lis h m e n t o r b y a n y p e r s o n h ir e d t o u s e
th e m ; n o t e x c e e d in g tw o t h o u s a n d d o lla r s in v a lu e ; t o g e th e r w ith
fnP pb 131 t r a d e n o t e x c e e d in g f o u r h u n d r e d d o lla r s in v a lu e . 14 . T h e
p bropX a u d p h ilo s o p h ic a l a n d c h e m ic a l o r o t h e r a p p a r a t u s b e lo n g in g
t o a n d u s e d f o r t h e in s tr u c tio n o f y o u t h in a n y u n iv e r s ity , co lleg e
®®uuuary o f le a r n in g o r s c h o o l. 15. A ll m o n e y s r e c e iv e d b y o r
oPyf ith
T c h iid u p o n t h e life o f a d e c e a s e d h u s b a n d
o r f a t h e r , n o t e x c e e d in g t e n th o u s a n d d o lla rs . 16. A ll m o n e y s
a r is in g f r o m fire o r o th e r in s u r a n c e u p o n a n y p r o p e r t y e x e m p t f r o m
f ^ ler,Pn t-Px S8U tlonj
, A il m o n e y s , r e lie f, o r o th e r b e n e fits p a y a b le
d e n P w /A n t® a A Pd ?rp d b ? a n y .p o lice d e p a r t m e n t a s s o c ia tio n , f ire
a s s o c ia tio n , b e n e fic ia ry a s s o c ia tio n , o r f r a t e r n a l b e n e fit
a s s o c ia tio n , a n d a n y p a r s o n e n t itl e d t o a s s is ta n c e th e r e f r o m , o r t o
i « y T A r flSfot - A ,b ? d e r, th e r e o f o r b e n e fic ia ry u n d e r s u c h c e rtif ic a te .
„ A n ?r c la im f o r d a m a g e s r e c o v e r a b le b y a n y p e r s o n b y r e a s o n
o f a n y le v y u p o n o r s a le u n d e r e x e c u tio n o f h is e x e m p t p e r s o n a l
p r o p e r t y o r b y r e a s o n o f t h e w r o n g fu l t a k in g o r d e t e n ti o n o f s u c h
p ro p e rty b y a n y p erso n , a n d a n y ju d g m e n t re c o v e re d fo r su c h
? h i a a g e s ‘ i 9 V . T h e . e a rn in g s o f t h e m in o r c h ild o f a n y d e b t o r o r
m n t S i M df n i h i !he o f b y a 5 y h a b U ity o f s u c h d e b t o r n o t
F ® ? tra c te d f o r t h e s p e c ia l b e n e fit o f s u c h m in o r c h ild . 2 0 . O n e
h a l f o f t h e e a rn in g s o f t h e w a g e s o r s a la r y o f a n y p e r s o n f o r h is p e r s o n a i s e r v ic e s r e n d e r e d a t a n y ti m e w ith i n t h i r t y d a y s n e x t p r e ­
c e d in g t h e le v y Of a t t a c h m e n t , g a r n is h m e n t o r e x e c u tio n w h e n i t
a p p e a r s b y t h e a f f id a v it o f t h e d e b t o r o r o th e r w is e t h a t s u c h e a rn in g s
^ X ° r t b e p s e ®f t h e f a m ily r e s id in g in th i s s t a t e , s u p p o r te d
w h o le or. in p a r t b y h im . 2 1 . AH a r m s , u n if o r m s a n d a c c o u tr e fu eu t s r e q u ir e d b y - la w t o b e k e p t b y a n y p e rs o n , a n d a ls o o n e g u n
t o b e s e le c te d b y t h e d e b to r . 2 2 . A ll fire e n g in e s
nf
d e p a r t m e n t . 2 3 . A ll c o u r th o u s e s , ja ils . e tc
T h e ' p ro p e rty 7 d e b e ex? m p t b y th i s , c h a p te r s h a ll n o t b e e x e m p t f r o m a t 5a ?e in a n y a c tio n b r o u g h t o r ju d g m e n t r e c o v e r e d f o r
Pr lc e p f s u c h p r o p e r t y so lo n g a s s u c h p r o p e r t y r e m a in s
i n t h e p o s se ss io n o f t h e o r ig in a l p u r c h a s e r . (S ee H o m e s te a d f L ie n s .)

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_Frauds and Fraudulent Conveyances,

A g r e e m e n ts m u st, h p in
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“ a d e « p ®n c o n s id e r a tio n o f m a r r i a g l . 4.y F o r T a l e o f r e a f S t o r e S J
le a s e th e r e o f f o r a te r m lo n g e r t h a n o n e y e a r . 5. T h o s e w h ic h a r e
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* & A Bvery
c o n v e y a n c e , o r a s s ig n m e n t, o r tr a n s f e r , o r
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o r o t h e r w r itin g g iv e n w ith i n t e n t to d e la y , h in d e r , o r d e f r a u d c r e d i tp 38- P u r c h a s e r s o r o t h e r p e rs o n s , s h a ll t o s u c h p e i s o M b e v o ld
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5 P d n o tic e m u s t b e p r io r t o d a t e o f J u d g m e n t l i e n / A J u d g ­
m e n t c r e d i to r m a y b e 'a n in n o c e n t p u r c h a s e r . E v e r y g if t, c o n v e y a n c e , a s s ig n m e n t, tr a n s f e r o r c h a r g e m a d e b y a d e b t o r w h ic h is n o t
u p o n c o n s id e r a tio n d e e m e d v a l u a b le In la w s h a ll b e v o id a s t o p r io r
c r e d ito r s , i f d e b t o r h a d n o t t h e n o t h e r p r o p e r t y in t h e S t a t e su fflA® P a y a ll h is in d e b te d n e s s . N o t o n t h a t a c c o u n t h o w lv “ .
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9,n d n o t o f la w ; C o n v e y a n c e s h a ll n o t b e a d j u d g e d
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8J ® cte n t t o s a ti s f y s a id j u d g m e n t. P ro c e e d in g s u n d e r s u b b “ m ln d o u b le t h e a m o u n t o f t h e d e b t , c o n d ia
p la lJ t i f f Will p r o s e c u te t h e s u i t t o e ffe c t, a n d p a y all
c o s ts t h a t m a y b e a d j u d g e d a g a in s t h im f o r w r o n g f u lly
m i S t £ n r t í « r f í ?.r ? f i h m e ii1l\ í T h e .p r o c e e d in g s a r e d o c k e te d a n d J u d g m e n t r e n d e r e d a s if in a n in d e p e n d e n t p r o c e e d in g . (S ee A tta c h m e n t .)
0 0 H o r i d a y s . L e g a l h o lid a y s a r e J a n u a r y 1, F e b r u a r y 14. F e b r u a r y
d a V ^ a h n r <n ^ b ~ 1 2 ’ T h a n k s g iv in g , M a y 3 0 , D e c e m b e r 2 5 , A r b o r
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4 , O c to b e r 12, D e c e m b e r 25, o r M a y 30. a n d A r b o r D a v «¡hail fa ll

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lesa? holiday' ‘f e / 6 Monday following shall be considered as a
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B A N K I N G A N D C O M M E R C IA L L A W S — A R IZ O N A
H o m e s t e a d . D e e d t o , m u s t b e s ig n e d b y h u s b a n d a n d w ile . (S ee
E x e m p tio n s .)
H u s b a n d a n d W i f e . A ll p r o p e r t y , b o th r e a l a n d p e rs o n a ), of
t h e h u s b a n d o r w ile , o w n e d o r c la im e d b y h im o r h e r b e fo re m a r ­
ria g e . a n d t h a t a c q u ir e d a f t e r w a r d b y g il t, d e v is e , o r d e s c e n t, a s a ls o
t h e In c re a s e , r e n t s . Issu e s, a n d p r o fits o l t h e s a m e , s h a d b e h is o r h e r
s e p a r a t e p r o p e r t y . T h e e a rn i n g a n d a c c u m u la tio n s o f th e w lfe a n d h e r
m in o r c h ild r e n In h e r c u s to d y w h ile s h e h a s liv e d o r m a y liv e s e p a r a t e
a n d a p a r t fr o m h e r h u s b a n d , s h a ll a lso b e t h e s e p a r a t e p r o p e r t y o f th e
w ile . A ll p r o p e r t y a c q u ir e d b y e i th e r h u s b a n d o r w ile d u r in g t h e
m a r r ia g e , e x c e p t t h a t w h ic h Is a c q u ir e d b y g ift, d e v is e , o r d e s c e n t, o r
e a r n e d b y t h e w ife a n d h e r m i n o r c h ild r e n w h ile s h e h a s llv e a o r m a y
liv e s e p a r a t e a n d a p a r t f ro m h e r h u s b a n d , s h a ll b e d e e m e d t h e c o m m o n
p r o p e r t y o f t h e h u s b a n d a n d w ife, a n d d u r in g t h e c o v e rt u r e m a y b e
d is p o s e d o f b y t h e h u s b a n d o n ly . M a rrie d w o m e n
t h e a g e of
tw e n ty - o n e v e a rs a n d u p w a r d s s h a ll h a v e t h e s a m e le g a l r ig h t s a s m e n
o f t h e a g e o f tw e n t y - o n e y e a rs a n d u p w a r d s , e x c e p t t h e r i g h t t o m a k e
c o n t r a c ts b in d in g t h e c o m m o n p r o p e r t y o f t h e h u s b a n d a n d w ife , a n d
s h a ll b e s u b je c t t o t h e s a m e le g a l lia b ilitie s . (S ee D o w e r. C o n v e y ­
a n c e .)
I n j u n c t i o n , I s is s u e d , w h e re p a r t y Is e n t itl e d t o re lie f a n d
r e s t r a i n t , is r e q u ir e d o l s o m e p re ju d ic ia l a c t; w h e re , p e n d in g li tig a ­
tio n . a n a c t is d o n e w h ic h te n d s to r e n d e r ju d g m e n t In e ffe c tu a l, a n d
w h e n a p p l ic a n t Is e n t itl e d u n d e r p rin c ip le s of e q u i ty . U n d e r c e rta in
c o n d itio n s m a y b e g r a n t e d e x p a r t e a t c h a m b e r s o r b y c o n s e n t.
B o n d m a y b e fix e d b y ju d g e a n d a p p r o v e d b y c le rk , e x c e p t to r e s tr a i n
c o lle c tio n o f m o n e y ju d g m e n t, w h e n I t m u s t b e d o u b le th e a m o u n t of
■ uch j u d g m e n t.
l u j u r i e s — P e r s o n a l . E m p lo y e r ’s L i a b il ity a n d C o m p u ls o ry C o m ­
p e n s a tio n la w s In fo rc e .
'
In su ra n c e .
(S ee s p e c ia l c h a p te r p e r t a in i n g t o I n s u r a n c e .)
I n t e r e s t . M a y c o n t r a c t. In w r itin g , to r a n y r a t e o t. n o t e x c e e d in g
10 p e r c e n t p e r a n n u m . A n y r a t e e x c e e d in g th is Is u s u rio u s . W h e n
n o e x p r e s s c o n t r a c t, o n b o n d , b ill. n o te , o r I n s tr u m e n t of w r itin g ,
o r J u d g m e n t, l o r m o n e y l e n t, o r d u e o n s e tt le m e n t o f a c c o u n ts fro m
d a t e o l a s c e r t a in e d b a la n c e , a n d m o n e y r e c e iv e d lo r u s e o f a n o t h e r ,
in t e r e s t is c o m p u te d a t 6 p e r c e n t p e r a n n u m .
J u d g m e n t s . J u d g m e n t s o l s u p e rio r c o u r t s b e c o m e a lie n u p o n a ll
r e a l e s t a t e o l ju d g m e n t d e b t o r in t h e c o u n t y a s s o o n a s e n t e r e d a n d
d o c k e te d . U p o n filin g w ith t h e c le r k o f t h e s u p e r io r c o u r t a tr a n s c r i p t
o l J u d g m e n t fro m ju s ti c e c o u r t o r o l s u p e rio r c o u r t of a n o t h e r c o u n ty ,
t h e s a m e b e c o m e s a lie n o n a ll r e a l e s t a t e o l j u d g m e n t d e b t o r in t h e
c o u n t y . N o e x e c u tio n c a n b e Is su e d o n a n y j u d g m e n t a l t e r th e
e x p i r a ti o n o f fiv e y e a rs fro m t h e d a t e o f I ts r e n d i tio n
■ uch J u d g m e n t b e r e v iv e d b y s c ire la c la s o r a c tio n l o r d e b t b e b r o u g h t
th e r e o n w ith i n s u c h fiv e y e a rs .
J u d ic ia l B o n d s.
(S ee B o n d s .)
L e v y . (S ee E x e c u tio n s .)
L i c e n s e s . F o r g a m b lin g p r o h ib i te d .
L i e n s . A ll p e rs o n s w h o m a y la b o r o r f u r n is h m a te r i a ls In t h e c o n ­
s t r u c t i o n o r re p a ir in g o l a n y b u ild in g , s u p e r s tr u c t u r e , c a n a ls , d a m s ,
m in e s , o r o t h e r I m p r o v e m e n t, o r c u t s c o rd w o o d , s h a ll h a v e a lie n o n
t h e s a m e , a n d In c a s e o l b u ild in g s a n d s u p e r s tr u c t u r e s , o n t h e l o t o l
l a n d w h e re o n t h e s a m e is s i t u a t e a n d c o n n e c te d th e r e w i th . T o fix
a n d s e c u re t h e lie n , t h e p e rs o n p e rf o r m in g l a b o r o r f u r n is h in g m a te r i a l
m u s t, w ith i n s ix ty d a y s a l t e r t h e c o m p le tio n o f s u c h l a b o r o r t h e f u r ­
n is h in g o f m a te r i a ls , file h is c o n t r a c t in t h e office o f t h e c o u n t y r e c o r d e r
w h e r e t h e p r o p e r t y is s i t u a t e . I f t h e c o n t r a c t b e v e r b a l, a d u p li c a t e
c o p y o f t h e b ill o f p a r t ic u l a r s s h o u ld b e m a d e , u n d e r o a t h , a n d o n e
d e liv e r e d t o t h e r e c o r d e r a n d filed fo r r e c o r d a n d t h e o t h e r fu r n is h e d
t h e p a r t y o w in g t h e d e b t , o r h is a g e n t. L a b o r e r s a n d lik e lie n s a r e
p r e f e r r e d t o a ll s u b s e q u e n t lie n s , m o rtg a g e s , a n d i n c u m b r a n c e s ,j m d
s u c h a s lie n c l a im a n t h a d n o n o tic e . S u it t o fo re c lo se s u c h lie n s m u s t
b e c o m m e n c e d w ith i n s ix m o n t h s a f t e r filin g t h e s a m e in t h e r e c o r d e r s
o ffice. I n c a s e o f t h e le v y o f w r it o f a t t a c h m e n t o r e x e c u tio n , c le rk s ,
la b o r e r a , a n d e m p lo y e s o f d e b t o r s h a v e a p re fe re n c e c la im fo r w a g e s
l o r s e rv ic e s p e rfo rm e d s i x t y d a y s b e fo re le v y o f w r it, n o t e x c e e d in g
J 2 0 0 r u p o n filin g n o tic e o f c la im u n p a i d w ith c r e d ito r , d e b t o r , a n d
o ffic er e x e c u tin g w r it. P r o p r ie t o r s o f h o te ls , b o a r d in g h o u s e s , a n d
lo d g in g h o u s e s h a v e s p e c ia l H en o n a ll p r o p e r t y o r b a g g a g e d e p o s ite d
w ith th e m b y g u e s ts f o r p ric e o f g u e s ts e n t e r t a i n m e n t . A g is te r a n d
li v e r y m a n h a v e lie n b y s t a t u t e . (S ee J u d g m e n t , M o rtg a g e .)

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L i m i t a t i o n s . T o r e c o v e r r e a l t y a g a in s t p e r s o n In p e a c e a b le a n d
a d v e r s e p o s se ss io n u n d e r c o lo r o l t i t l e , t h r e e y e a r s ; a g a in s t s u c h p o s se s ­
s io n w h e re p e rs o n p a y s ta x e s a n d h a s d e e d r e c o rd e d , fiv e y e a rs , o th e r ­
w ise t e n y e a r s ; t o r e c o v e r lo t s In c i ty o r v illa g e a g a in s t p e r s o n h a v i n g
r e c o r d e d d e e d , a n d p a y s ta x e s , fiv e y e a r s ; w h e re p a r t y in p o s se ss io n
c la im s b y r i g h t o l p o s se ss io n o n ly , tw o y e a rs . P e r s o n a l A c tio n s
O n e y e a r : P e r s o n a l in ju r ie s , m a lic io u s p ro s e c u tio n , fa ls e im p r is o n ­
m e n t; lib e l, s la n d e r , s e d u c tio n , b r e a c h o f p ro m is e . A c tio n s f o r re lie f
o n t h e g r o u n d o f f r a u d ; m u s t b e b r o u g h t w ith in o n e y e a r £ ro m d is c o v e r y o f f r a u d . T w o y e a rs : T r e s p a s s t o p r o p e r t y , d e t e n ti o n o r
c o n v e rs io n o f p e r s o n a l p r o p e r t y t o o w n u s e , ta k i n g a n o c a rr y in g a w a y
g o o d s a n d c h a tte l s ; a n d in ju r ie s t o p e rs o n w h e re d e a t h ensu«», t o
a c c r u e f r o m d a t e o f d e a th . T h r e e y e a r s : A c tio n s f o r d e b t n o t in
w r itin g : o n s t a t e d o r o p e n a c c o u n ts o th e r t h a n m u t u a l b e tw e e n m e r ­
c h a n ts o r t h e i r f a c t o r s a n d a g e n ts ; a ll a c c o u n ts , e x c e p t a s b e tw e e n
m e r c h a n ts a n d f a c t o r s a n d a g e n ts , li m it a ti o n s r u n f r o m d a t e p f e a c h
it e m o f d e liv e ry . F o u r y e a r s : F o r p e n a ltie s o r d a m a g e s o n a n y b o n d
t o c o n v e y r e a l e s t a t e ; b e tw e e n p a r t n e r s f o r s e tt le m e n t o f p a r t n e r s h i p
a c c o u n ts * o n m u t u a l o r c u r r e n t a c c o u n ts b e tw e e n m e r c h a n ts , t h e ir
f a c t o r s o r a g e n ts , t o a c c r u e f r o m c e s s a tio n o f d e a lin g s ; u p o n j u d g m e n t
o r in s t r u m e n t w i t h o u t t h e T e r r i t o r y ; d e b t e v id e n c e d b y w r itin g
w ith i n t h e T e r r i to r y ; b o n d s o f e x e c u to rs , a d m in is tr a to r s , o r g u a r d ia n ,
a f t e r d e a th , re m o v a l, e t c .; s p e c ific p e r f o r m a n c e ; t o c p n t e s t w ill a f t e r
d is c o v e ry o f f r a u d ; a n d w h e re n o p ro v is io n is o th e rw is e m a d e . F iv e
y e a r s : O n d o m e s tic ju d g m e n t w h e r e e x e c u tio n h a s b e e n is s u e d w ith in
o n e y e a r a f t e r r e n d i tio n .
M i n e s u n p a t e n t e d a r e r e a l e s t a t e f o r t h e p u r p o s e o f in h e r ita n c e a n d
c o n v e y a n c e . L o c a tio n r e q u ir e s s e v e n m o n u m e n ts , t h r e e a t e a c h e n d ,
a n d o n e a t d is c o v e ry , in w h ic h n o ti c e is t o b e p la c e d o n d is c o v e r y ,
t i t l e w o rk c o n s is tin g o f a s h a f t 4 x 6 x 8 f e e t d e e p , o r it s e q u i v a le n t
in a n o p e n c u t s o t h a t m i n e r a l In p la c e Is d is c o v e re d 8
s u r f a c e m u s t b e d o n e a n d n o tic e re c o rd e d w ith i n t h r e e m o n t h s , a n d
a n n u a l a s s e s s m e n t w o rk a m o u n tin g t o $ 1 0 0 , m a in ta in e d e a c h y e a r
t h e r e a f te r , u n t i l p a t e n t is o r d e r e d .
M in o rs .
(S ee S a v in g s B a n k s .)
M o r t g a g e s . M o rtg a g e m a y c o n t a in p o w e r o f s a le . W h e th e r i t
d o e s o r n o t, m o r tg a g e m a y b e fo re c lo s e d b y s u i t in s u p e r io r c o u r t.
F a il u r e o f m o r tg a g e e t o la w f u lly re le a s e a s a t isfied^ m o r t g a g e 1o r s e y e n
d a y s a f t e r d e m a n d f o r t h e re le a s e , s u b je c ts h im t o li a b il ity fo r $ 1 0 0
a n d a c tu a l d am ag es.
M o rtg a g e s o n r e a l e s t a t e a r e e x e c u te d , a c ­
k n o w le d g e d , a n d r e c o r d e d a s c o n v e y a n c e s o f re a l e s t a t e ,
(b e e C o n ­
v e y a n c e s . C h a t te l M o rtg a g e , A c k n o w le d g m e n ts . R e d e m p tio n .)
N o t a r y P u b l i c . I n a ll c e rtif ic a te s a n d a c k n o w le d g m e n ts t h e d a t e
o f e x p i r a ti o n Of c o m m is s io n m u s t b e s t a t e d , a s “ c o m m is s io n e x p ire s
N o c e rtif ic a te o f h o ld in g office, e tc ., is r e q u i r e d w h e n n o t a r y a c t s in
f o re ig n s t a t e o r c o u n t r y .
N o t e s a n d B i l l s o f E x c h a n g e . (See B ills a n d N o te s .)


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

1393

P a r t n e r s h i p s u s in g f ic titio u s n a m e m a y file c e r tif ic a te s h o w in g
n a m e s o f p a r t n e r s w ith c o u n t y r e c o r d e r s . F o r e ig n p a r t n e r s h i p s m a y
d o so.
P o w e r s o f A t t o r n e y . N o s p e c ia l s t a t u t o r y p ro v is io n s r e l a ti v e t o .
T o c o n fe s s ju d g m e n t m u s t b e e x e c u te d s u b s e q u e n t t o m a t u r i t y o f d e b t
c o n fe s s e d , a n d m u s t b e a c k n o w le d g e d . T o c o n v e y la n d s o r r e le a s e
m o r tg a g e s s h o u ld b e a c k n o w le d g e d a s d e e d s , a n d r e c o r d e d .
P r o b a t e L a w . (S ee S a v in g s B a n k s a n d A d m in i s t r a ti o n o f E s ta te s .)
P r o t e s t . L i a b il ity o f d r a w e r o r in d o r s e r o f b ill o r n o t e m a y b e
fix e d b y r e g u l a r p r o t e s t a n d n o tic e , e tc ., a c c o r d in g t o t h e u s a g e s a n d
c u s to m o f m e r c h a n ts . (S ee B ills a n d N o te s .)
R e c o r d s . T h e s u p e r io r c o u r t s o f e a c h c o u n t y a r e c o u r t s o f r e c o r d .
T h e r e c o r d e r ’s office in e a c h c o u n t y r e l a te s t o ti t l e s o f r e a l e s t a t e
a n d p e r s o n a l p r o p e r t y , a n d p r o b a b l y r e c o r d in s t r u m e n t th e r e in is
n o tic e . T h e m i n u te s o f t h e S a n it a r y L iv e S to c k B o a r d a r e n o tic e o f
a ll b r a n d s a n d m a r k s o f liv e s to c k .
R e d e m p t i o n s . F r o m s h e r if i o r J u d ic ia l w iles, s ix m o n t h s , b y
d e b t o r s o r s u c c e s s o rs In I n te r e s t : a n y lie n h o ld e r m a y re d e e m w ith in
t h r e e m o n t h s t h e r e a f te r b y s e r v in g a n d filin g s t a t u t o r y n o tic e , b y
s e r v in g n o tic e in fiv e d a y s a f t e r e n d o f s a id s ix m o n t h s . T h e s a m e r u le
a p p lie s to fo re c lo s u r e o f m o r tg a g e s a n d t r u s t d e e d s w h e th e r b y c o u r t
o r u n d e r p o w e rs o f s a le .
R e p l e v i n . F o r p o s se ss io n o f s p e c ific p e r s o n a l p r o p e r t y w h ic h h a s
n o t b e e n se iz e d u n d e r a n y p ro c e s s , e x e c u tio n o r a t t a c h m e n t a g a in s t
t h e p r o p e r t y o f t h e p la in tif f .
S a l e s . T h e “ u n if o r m s a le s la w ” is in fo rc e .
S e a l s . A d d itio n o r o m is s io n o f s e a ls o r s c ro lls t o I n s tr u m e n ts o f
w r itin g i n n o w a y a f f e c t t h e f o r c e a n d v a l id it y o f t h e I n s tr u m e n t.
I n s t r u m e n t s e x e c u te d b y c o r p o r a tio n s m u s t h a v e a c o r p o r a te se a l
a t ta c h e d .
S e r v i c e . A ll s u m m o n s u p o n p e r s o n s s h a ll b e p e r s o n a l, o r b y le a v in g
a c o p y w ith c o p y o f c o m p la i n t a t t h e u s u a l p la c e , o f re s id e n c e o f
d e f e n d a n t, w ith a m e m b e r o f h is f a m ily o v e r th e a g e o f s ix te e n ye*™ ;
a g a in s t in c o r p o r a te d c ity , o r to w n , o r v illa g e ; u p o n ™ aio r. c le rk ,
s e c r e t a r y , o r t r e a s u r e ; a g a in s t in c o r p o r a tio n o r i o l n t s to c k a s s o c ia ­
tio n , u p o n p r e s id e n t, s e c r e t a r y , o r tr e a s u r e r , d ir e c to r o r lo c a l a g e n t
r e p r e s e n tin g c o m p a n y , o r b y le a v in g a c o p y o f s u m m o n s a n d c o m ­
p la in t a t t h e p r in c ip a l office d u r in g office h o u r s ; u p o n a n y ra U ro a a ,
te le g r a p h , o r e x p r e s s c o m p a n y , o r a n y a g e n t o f s u c h c o m p a n y w h o
re s id e s i n o r m a y b e f o u n d In t h e c o u n t y w h e r e s u i t is b r o u g h t; u p o n
d o m e s tic c o r p o r a tio n b y s e r v in g o n s t a t u t o r y r e s id e n t a g e n t, a n d w h e r e
t h e r e is n o o fficer u p o n w h o m s e r v ic e c a n b e m a d e in t h e s t a t e , s e r ­
v ic e m a y b e h a d b y d e liv e r in g d u p li c a t e c o p ie s o f s u m m o n s a n d c o m ­
p l a i n t t o t h e s e c r e t a r y o f t h e C o r p o r a t io n C o m m is sio n , a n d u p o n
fo re ig n c o r p o r a tio n b y d e liv e r y t o s t a t u t o r y a g e n t. P e r s o n a l s e r v ic e
o f s u m m o n s m a y a lso b e bad. b y s e r v in g u p o n d e f e n d a n t b y r e g is te r e d
m a il, a s p r o v id e d in s t a t u t e s .
S u its .
(S ee A c tio n s.)
T a x e s . A s id e f r o m th o s e le v ie d b y le g is la tiv e e n a c t m e n t f o r
sp e c ific p u r p o s e s , a s f o r t h e c o n s tr u c tio n a n d m a in te n a n c e o f p u b lic
i n s ti tu ti o n s , e tc ., S t a t e ta x e s a r e le v ie d b y t h e S t a t e B o a r d o f E q u a l­
iz a ti o n ; c o u n t y ta x e s b y t h e b o a r d s o f s u p e r v is o r s o f t h e s e v e r a l
c o u n tie s , a n d c i ty ta x e s b y t h e c o m m o n c o u n c ils o f t h e v a rio im c itie s .
R a ilr o a d s a r e v a lu e d f o r t h e p u r p o s e o f t a x a ti o n b y t h e S t a t e B o a r d
o f E q u a liz a tio n
O th e r p r o p e r t y is v a lu e d b / c o u n t y assesso ra^
T h e a s s e s s in g o f v a l u e b e g in s in F e b r u a r y o f e a c h y e a r . T a x « »
a r e le v ie d o n t h e t h i r d M o n d a y o f A u g u s t in e a c h y e a r. T h e lie n
a t ta c h e s o n t h e f ir s t M o n d a y o f F e b r u a r y in e a c h y e a r . T a x e s
b e c o m e d u e n o t l a t e r t h a n t h e t h i r d M o n d a y In S e p te m b e r , a n d
b e c o m e d e l in q u e n t if n o t p a id o n t h e t h i r d M o n d a y o f D e c e m b e r.
T h e p e n a l t y f o r d e lin q u e n c y is 5 p e r c e n t. W i th in 60 d a y s a f t e r
d e lin q u e n c y a c tio n m a y b e c o m m e n c e d In d i s t r i c t c o u r t t o fo re c lo se
d e l in q u e n t r e a l e s ta te t a x lie n s , a n d p r o p e r t y so ld a s u ° d e ^ e x e c u tio n .
P e r s o n a l p r o p e r t y t a x is c o lle c te d b y d is tr e s s w a r r a n t. T a x e s a f t e r
d e lin q u e n c y d r a w in t e r e s t a t o n e p e r c e n t p e r m o n t h a f t e r a c tio n
c o m m e n c e d t o fo re c lo se t a x lie n p e n a lty o f tw e n ty - f iv e p e r c e n t is
a d d e d . T h e r e is d o u b t a b o u t t h e r ig h t t o r e d e e m f r o m t a x s a le s .
W a r e h o u s e s . P e r s o n a l p r o p e r t y in . m a y b e so ld f o r u n p a i d
c h a rg e s .
T r a n s f e r o f C o r p o r a t i o n S t o c k s . (S ee C o r p o r a tio n s .)
W i l l s . W ills m u s t b e in w r itin g , s ig n e d b y t h e t e s t a t o r , o r b y s o m e ­
o n e f o r h im . In h is p r e s e n c e a n d b y h is d ir e c tio n , a n d m u s t b e a t t e s t e d
b y tw o o r m o r e c r e d ib le w itn e s s e s a b o v e t h e a g e o f f o u r te e n y e a r s , m
t h e p r e s e n c e o f e a c h o t h e r a n d th e t e s t a t o r . W h e n t h e w ill ^ w h o lly
w r i t t e n b y t h e t e s t a t o r , n o w itn e s s e s a r e n e c e s s a r y . N u n c u p a t i v e
w ills m a y b e m a d e w h e n p r o p e r t y w ille d d o e s n o t e x c e e d in v a lu e
$50 u n le s s i t b e p r o v e d b y th r e e c r e d ib le w itn e s s e s t h a t t h e t e s t a t o r
c a lle d o n s o m e p e r s o n t o t a k e n o tic e a n d b e a r t e s t im o n y t h a t s u c h is
h is w ill, a n d t h a t t h e te s tim o n y , o r t h e s u b s t a n c e th e r e o f , w a s c o m
m l t t e d t o w r itin g w ith in s ix d a y s a f t e r t h e m a k in g o f s u c h w ill, in
s u c h c a se t h e a m o u n t w ille d is n o t lim ite d . W ills a r e £®Y°®uble b y
s u b s e q u e n t w ill, c o d ic il, o r d e c la r a t io n in w r itin g , e x e c u te d w ith lik e
f o r m a litie s a s I n e x e c u tio n of w ill, o r b y t e s t a t o r d e s tr o y in g , c a n c e lin g ,
M o f f i i t e r a t f n g t h e im ine, o r c a u s in g i t t o b e d o n e t n h l s p r e s e n c e o r
b y s u b s e q u e n t m a r r ia g e , a n d n o p r o v is io n Is m a d e f o r w ife. F o r e ig n
w ills, t h e p r o b a t e w h e re o f Is d u ly a u t h e n t i c a t e d , m a y b e p r o b a t e d
h e r e . C o n te s ts o f w ills c a n n o t b e in i t i a t e d a f t e r o n e y e a r f r o m d a t e
o f p r o b a tin g .

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A c c o u n t s v e rifie d b y t h e p la in tif f a s l u s t a n d c o r r e c t p r o v e t h e m ­
s e lv e s In s u its th e r e o n u n le s s d e n ie d u n d e r o a t h .
A c k n o w l e d g m e n t s m a y b e t a k e n w ith in t h e S t a t e b e f o r e th e
s u p r e m e o r c i r c u it c o u r t , o r a Ju d g e th e r e o f , o r c le r k o f a n y c o u r t of
r e c o r d , o r a J u s tic e o f t h e p e a c e o r n o t a r y p u b li c ; e ls e w h e r e in th e
U n ite d S ta t e s b e fo re a n y c o u r t h a v i n g a s e a l, o r c le r k o f s u c h c o u r t ,
n o t a r y p u b lic , m a y o r h a v i n g a s e a l, o r c o m m is s io n e r o f A r k a n s a s ;
w ith o u t t h e U n ite d S t a t e s b e fo re a n y c o u r t h a v i n g a s e a l, m a y o r o f a
e t t y h a v i n g a se a l. U n ite d S ta t e s c o n s u l, o r a n y o ffic er a u t h o r iz e d b y
t h e la w s o f s u c h c o u n t r y to p r o b a t e c o n v e y a n c e s o f r e a l e s t a t e , p r o ­
v id e d h e h a s a s e a l.
A c t i o n s . S u its a r e p r o s e c u te d u n d e r a re fo rm e d c o d e o f c iv il p r o ­
c e d u re d iffe rin g fro m th e N e w Y o rk c o d e c h ie fly in m a in ta in in g t h e
d is ti n c ti o n b e tw e e n la w a n d e q u i ty .
A d m in is tra tio n o f E s ta te s .
E x e c u to r s a n d a d m in is tr a to r s m u s t
b e re s id e n ts o f t h e S t a t e a n d m u s t g iv e b o n d in d o u b le t h e v a lu e of t h e
p r o p e r t y . F o re ig n e x e c u to r s a n d a d m in is tr a to r s c a n m a in ta in a c tio n s
i n o u r c o u r ts . C la im s a r e p a id In t h e fo llo w in g o r d e r : F ir s t, f u n e r a l
e x p e n s e s ; s e c o n d , e x p e n s e s o f l a s t illn e s s ; t h i r d . J u d g m e n ts w h ic h a r e
li e n s o n t h e la n d s o f th e d e c e a s e d ; f o u r th , d e m a n d s p r e s e n t e d w ith in
s i x m o n t h s ; fifth , d e m a n d s p r e s e n te d w ith in o n e y e a r . A ll d e m a n d s
n o t'p r e s e n te d In o n e y e a r a r e b a r r e d . D e m a n d s m u s t b e a u t h e n t i c a t e d
b y a n a f f id a v it t o t h e e ffe c t t h a t n o th i n g h a s b e e n p a i d o r d e liv e r e d
t o w a r d t h e i r s a ti s f a c ti o n e x c e p t w h a t is c r e d i te d th e r e o n , a n d t h a t
t h e s u m d e m a n d e d , n a m in g it , is J u s t ly d u e . D e m a n d s m u s t f ir s t b e
p r e s e n t e d t o t h e e x e c u to r o r a d m in is tr a to r , a n d if d is a llo w e d b y h im
m a y b e p r e s e n t e d t o t h e p r o b a t e c o u r t , o r s u e d u p o n in a n y c o u r t of
c o m p e te n t J u r is d ic tio n . N o te s a n d d e b t s s e c u re d b y m o r tg a g e s o r
d e e d s o f t r u s t m u s t b e p r o b a t e d a s a n y o t h e r c la im , a n d if n o t p r e ­
s e n te d to t h e e x e c u to r o r a d m i n i s t r a t o r w ith in o n e y e a r a f t e r a p ­
p o in t m e n t , a r e b a r r e d b y t h e s t a t u t e o f n o n -c la im o f o n e y e a r .
W h e n t h e n o te o r d e b t Is b a r r e d th i s c a rr ie s w ith i t a b a r r i n g o f t h e
m o r tg a g e o r d e e d o f t r u s t g iv e n t o s e c u re t h e n o te s o r d e b t s . ”
A f f i d a v i t s i n t h i s S t a t e a r e m a d e b e fo re a ju d g e , ju s ti c e o f t h e p e a c e ,
n o t a r y p u b lic , o r c le r k o f t h e c o u r t ; w ith o u t t h e S t a t e b e fo re a ju d g e ,
m a y o r , n o t a r y p u b lic , ju s ti c e o f t h e p e a c e o r c o m m is s io n e r f o r th i s
S ta te .
A l i e n s m a y h o ld a n d t r a n s m i t p r o p e r t y in a il r e s p e c ts a s r e s id e n ts .
A r b i t r a t i o n . C o n tro v e rs ie s m a y b e s u b m it te d t o a r b i t r a t i o n , a n d
t h e a w a r d o f t h e a r b i t r a t o r s is file d In c o u r t , a n d Is s u b je c t to re v ie w
o n e q u i ta b l e p rin c ip le s o n ly , a n d n o t f o r m a t t e r s o f fo rm . W h e n n o t
s e t a s id e t h e y a r e e n t e r e d o f re c o r d a n d b e c o m e t h e J u d g m e n t o r d e c re e
of th e c o u rt.
A rre s t.
D e f e n d a n ts m a y b e a r r e s te d f o r d e b t o n ly w h e n t h e
p la in tif f files a n a f f id a v it c h a rg in g t h a t t h e d e b t w a s f r a u d u l e n tly c o n ­
t r a c t e d ; t h a t I t is j u s t , g iv in g i t s a m o u n t, a n d t h a t h e b e lie v e s t h a t t h e
d e f e n d a n t is a b o u t t o d e p a r t f r o m t h e S ta t e , a n d , w ith i n t e n t to d e ­
f r a u d h is c r e d ito r s , h a s c o n c e a le d o r re m o v e d f r o m t h e S t a t e h is
p r o p e r t y o r so m u c h th e r e o f t h a t t h e p ro c e s s o f t h e c o u r t a f t e r ju d g m e n t 'c a n n o t b e e x e c u te d ; o r t h a t t h e d e f e n d a n t h a s m o n e y o r s e c u r i­
tie s in t h e p o s s e s s io n o f h im s e lf o r o f o th e r s f o r h is u se, a n d is a b o u t
to d e p a r t fro m t h e S t a t e n o t le a v in g s u ffic ie n t p r o p e r t y t h e r e in to
s a ti s f y t h e p la in tif f ’s c la im . B o n d m u s t b e g iv e n c o n d itio n e d to p a y
t h e d e f e n d a n t a ll d a m a g e s t h a t h e m a y s u s t a in If w r o n g f u lly a r r e s te d .
A s s i g n m e n t s f o r t h e B e n e f i t o f C r e d i t o r s m a y b e g e n e ra l o r
p a r t i a l , w ith o r w i t h o u t p re fe re n c e s , a n d w h e re a ll t h e d e b t o r ’s p r o p ­
e r t y is c o n v e y e d , m a y e x a c t re le a s e s a s a c o n d itio n o f p re f e r e n c e . T h e
a s s ig n e e m u s t file a n I n v e n t o r y of t h e p r o p e r t y a s s ig n e d a n d g iv e a
b o n d c o n d itio n e d t h a t h e w ill e x e c u te t h e t r u s t c o n fid e d t o h im , se ll
t h e p r o p e r t y to t h e b e s t a d v a n ta g e a n d p a y t h e p ro c e e d s to t h e c r e d i­
to r s m e n tio n e d in t h e a s s ig n m e n t a c c o r d in g to Its te r m s , a n d f a i th f u ll y
p e r f o r m h is d u ti e s a c c o r d in g to la w . H e m u s t sell w ith in 1 2 0 d a y s
a ll p r o p e r t y e x c e p t t h e ch o s e s In a c tio n .w h ic h h e is r e q u ir e d to c o lle c t,
t h e s a le t o b e a t p u b lic a u c tio n a f t e r t h i r t y d a y s ’ n o tic e . A s s ig n m e n ts
a r e v i t i a t e d b y t h e f r a u d o f t h e a s s ig n o r a lo n e o r b y a n y p r o v is io n
v a r y i n g fr o m t h e r e q u i r e m e n t s o f t h e s t a t u t e . A tta c k s u p o n th e m
a r e m a d e b y p r o c e e d in g s in e q u i ty , a n d , if t h e y a r e s e t a s id e , t h e
p ro c e e d s a r e d i s t r i b u t e d e q u a lly a m o n g a ll t h e c r e d ito r s . A ss ig n e e s
c lo se u p t h e i r a c c o u n ts u n d e r t h e d ir e c tio n o f t h e c h a n c e r y c o u r t s .
C o r p o r a tio n s c a n n o t p r e f e r c r e d ito r s
A t t a c h m e n t s m a y b e s u e d o u t w h e re t h e d e f e n d a n t Is a f o r e ig n
c o r p o r a t i o n o r n o n - r e s id e n t, o r h a s b e e n a b s e n t f ro m t h e S t a t e f o u r
m o n th s , o r h a s le f t t h e S t a t e w ith i n t e n t t o d e f r a u d h is c r e d ito r s , o r
h a s l e f t t h e c o u n t y o f h is re s id e n c e to a v o id t h e s e r v ic e o f s u m m o n s ,
o r c o n c e a ls h im s e lf so t h a t s u m m o n s c a n n o t b e s e r v e d o n h im , o r is
a b o u t t o re m o v e o r h a s r e m o v e d a m a te r i a l p a r t of h is p r o p e r t y o u t
o f t h e S ta t e , n o t le a v in g e n o u g h t o s a ti s f y h is c r e d ito r s , o r h a s s o ld ,
c o n v e y e d o r o th e r w is e d is p o s e d o f h is p r o p e r t y , o r s u ffe re d i t t o b e
s o ld w ith t h e f r a u d u l e n t i n t e n t to c h e a t, h in d e r , o r d e la y h is c r e d ito r s ,
o r is a b o u t so to d o . I t is o b ta in e d b y filin g a n a f f id a v it s t a t i n g th e
n a t u r e o f t h e p la in tif f ’s c la im , t h a t I t Is j u s t , it s a m o u n t a n d t h e e x i s t­
e n c e of t h e g r o u n d , a n d b y g iv in g b o n d c o n d itio n e d t o p a y a ll d a m a g e s
t h e d e f e n d a n t m a y s u s t a in If th e a t t a c h m e n t is w r o n g f u lly s u e d o u t.
T h e d e f e n d a n t Is a llo w e d to t r a v e r s e t h e a t t a c h m e n t , a n d t h e a f f id a v it
a n d t r a v e r s e t h e n s t a n d a s p le a d in g s u p o n w h ic h t h e is s u e is tr i e d .
I f t h e a t t a c h m e n t is d is s o lv e d , th e d e f e n d a n t m a y h a v e a n a s s e s s m e n t
o f d a m a g e s u p o n t h e b o n d in t h e s a m e s u it. P e r s o n s c la im in g th e
a t t a c h e d p r o p e r t y m a y in t e r p le a d In t h e s a m e a c tio n . A tta c h m e n t s
m a y b e s u e d o u t b e fo re t h e d e b t is d u e w h e re t h e d e f e n d a n t h a s s o ld
c o n v e y e d , o r o th e r w is e d is p o s e d of h is p r o p e r t y , o r p e r m itt e d i t t o b e
s o ld w ith t h e f r a u d u l e n t i n t e n t t o c h e a t, h in d e r o r d e la y h is c r e d ito r s ,
o r Is s o t o d o , o r is a b o u t to re m o v e h is p r o p e r t y , o r a m a te r i a l p a r t
th e r e o f , o u t o f t h e S t a t e w ith t h e I n t e n t o f c h e a tin g , h in d e r in g o r d e la y ­
in g h is c r e d ito r s .
B anks.
B a n k in g m a y b e c a rr ie d o n b y I n d iv id u a ls o r b y c o r p o r a ­
tio n s o r g a n iz e d u n d e r t h e g e n e ra l I n c o r p o r a tio n la w o f t h e S ta t e , o r
b y n a t io n a l b a n k s . T h e S t a t e la w s p r e s c r ib e n o s p e c ia l r e g u la tio n s
fo r b a n k in g . O fficers a n d e m p lo y e s o f b a n k s a r e c r im in a lly lia b le f o r
m a k in g f a ls e r e p o r t s , a n d f o r r e c e iv in g d e p o s its k n o w in g b a n k to b e
In s o lv e n t.
B ills .
E x c h a n g e <ra n d P r o m i s s o r y N o t e s . T h e N e g o tia b le
in s tr u m e n ts L a w w e n t in t o effe c t o n A p ril 2 2 , 1913.
N o p e r s o n c a n b e c h a rg e d a s a n a c c e p to r o f a n y b ill o f e x c h a n g e
u n le s s h is a c c e p ta n c e s h a ll b e in w r itin g . I f t h e a c c e p ta n c e Is


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

w r itt e n o n a n o t h e r p a p e r t h a n t h e b ill. I t s h a ll n o t b in d th e
a c c e p to r e x c e p t in f a v o r o f t h e p e r s o n t o w h o m s u c h a c c e p t­
a n c e s h a ll h a v e ' b e e n s h o w n , a n d w h o , o n t h e f a i th th e re o f,
s h a ll h a v e r e c e iv e d t h e b ill f o r a v a l u a b le c o n s id e r a tio n . E v e r y
h o ld e r o f a b ill p r e s e n tin g I t f o r a c c e p ta n c e m a y r e q u ir e a n
a c c e p ta n c e o n t h e b ill; o th e r w is e t h e b ill c a n b e p r o te s t e d fo r
n o n -a c C e p ta n c e . N o tw ith s ta n d in g t h e a b o v e p ro v is io n s a n y o n e
p r o m is in g t o a c c e p t a b ill Is lia b le t o a n y p e r s o n t o w h o m a p r o m is e to
a c c e p t i t m a y h a v e b e e n m a d e ; a n d w n o . o n t h e f a i th o f t h e p ro m ise ,
h a s d r a w n a n d n e g o t ia t e d th e b ill. A n y p e r s o n o n w h o m a b ill is
d r a w n , a n d t o w h o m t h e s a m e m a y b e d e liv e r e d f o r a c c e p ta n c e , w h o
s h a ll d e s tr o y i t o f r e f u s e w ith i n tw e n t y - f o u r h o u r s o r s u c h tim e a s th e
h o ld e r m a y a llo w t o r e t u r n t h e b ill a c c e p te d o r n o t a c c e p te d t o th e
h o ld e r , s h a ll b e d e e m e d t o h a v e a c c e p te d t h e s a m e . T h e fo llo w in g a r e
t h e h o lid a y s : S u n d a y , C h r is tm a s , F o u r t h d a y o f J u ly , W a s h in g to n ’s
B ir t h d a y , L e e ’s B ir t h d a y , J a n u a r y 1 9 th , a n d t h e f ir s t S a tu r d a y of
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S a tu r d a y a r e t o b e p r e s e n t e d f o r p a y m e n t o n t h e n e x t s u c c e e d in g b u si­
n e s s d a y : e x c e p t t h a t in s tr u m e n ts p a y a b le o n d e m a n d m a y b e p r e s e n te d
f o r p a y m e n t b e fo re 12 o ’c lo c k o n S a tu r d a y i f i t is n o t a h o lid a y . T h e fo l­
lo w in g d a m a g e s a r e a llo w e d w h e re a b ill is p r o te s t e d f o r n o n - a c c e p ta n c e
o r n o n - p a y m e n t: I f t h e b ill is d r a w n o n a n y p la c e in th i s S ta t e , 2 p e r
c e n t; i f p a y a b le in t h e s t a t e s o f A la b a m a , L o u is ia n a , M is siss ip p i
T e n n e s s e e , K e n tu c k y , O h io , I n d ia n a , I llin o is , o r M is s o u r i, o r a n y p o in t
o n t h e O h io R iv e r , 4 p e r c e n t ; i f d r a w n o n a n y o th e r p la c e in t h e U n ite d
S ta te s , 5 p e r c e n t; i f b e y o n d t h e lim its o f t h e U n ite d S ta te s , 10 p e r
c e n t. I f t h e b ill b e d r a w n b y a n y p e r s o n a t a n y p la c e w ith in t h i s S ta te ,
a t t h e r a t e o f 2 p e r c e n t; i f d r a w n b y a n y p e r s o n a t a n y p la c e w ith o u t
t h i s S ta t e , b u t w ith in t h e lim its o f t h e U n ite d S ta te s , 6 p e r c e n t; if
d r a w n b y a n y p e r s o n w ith o u t t h e lim its o f t h e U n ite d S ta te s , 10 p e r
c e n t. T h e h o ld e r o f a n y b ill p r o te s t e d f o r n o n - p a y m e n t o r n o n - a c c e p t­
a n c e is e n t itl e d t o c o s ts b f p r o t e s t a n d in t e r e s t a t t h e r a t e o f 10 p e r c e n t
p e r a n n u m o n t h e a m o u n t o f t h e b ill f r o m d a t e o f p r o te s t .
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B ill o f E x c h a n g e in c lu d e s a ll d r a f t s o r o r d e r s d r a w n b y o n e p e r s o n o n
a n o t h e r f o r t h e p a y m e n t o f a s u m o f m o n e y s p e c ifie d th e r e in . B ills
a n d n o te s .g iv e n f o r p a t e n t e d m a c h in e s , im p le m e n ts , s u b s ta n c e , o r
i n s tr u m e n ts o f a n y k in d , g iv e n t o a n y c itiz e n o f t h i s S ta t e , a r e n o t
c o m m e r c ia l p a p e r , u n le s s e x e c u te d o n a p r in t e d fo rm , a n d s h o w in g
f o r w h a t c o n s id e r a tio n t h e y w e re e x e c u te d . T h is a p p lie s to p a t e n t
r ig h t s a n d r ig h t s t o u s e a n y p a t e n t e d t h i n g of a n y k in d . B u t th is
p r o v is io n d o es n o t a p p l y to m e r c h a n ts a n d d e a le r s w h o sell p a t e n te d
th i n g s in t h e u s u a l c o u r s e of b u s in e s s . A ll b la n k a s s ig m e n ts a r e ta k e n
to h a v e b e e n m a d e o n s u c h d a y a s s h a ll b e m o s t to t h e a d v a n ta g e of
t h e d e f e n d a n t. I n o t h e r r e s p e c ts t h e g e n e ra l ru le s o f c o m m e rc ia l
la w a p p ly .
B ills o f L a d in g .
(S ee W a re h o u s e R e c e ip ts a n d B ills o f L a d in g .)
C o l l a t e r a l s a r e g o v e r n e d b y t h e la w m e r c h a n t.
C o n t r a c t s to u c h in g c o m m e r c ia l m a t t e r s a r e g o v e r n e d b y t h e law
m e r c h a n t.
C o n v e y a n c e s m a y b e e i th e r w itn e s s e d b y tw o w itn e s s e s o r a c ­
k n o w le d g e d . (S ee A c k n o w le d g m e n ts .) I f w itn e s s e d t h e y a r e p ro v e d
b y t h e o a t h o f tw o w itn e s s e s , a n d a r e t h e n e n t itl e d t o r e c o r d a s th o u g h
a c k n o w le d g e d . D o w e r c a n b e re lin q u is h e d o n ly b y t h e w ife jo in in g
th e h u s b a n d . T h e w ife m a y c o n v e y p r o p e r t y a c q u ir e d s in c e O c to b e r
3 0 , 1 8 7 4 , b y d e e d a s a sin g le p e r s o n w ith o u t h e r h u s b a n d jo in in g h e r,
o r b y jo in in g w ith h im in th e fo r m a b o v e . T h e w ife m a y c o n v e y b y
p o w e r o f a t t o r n e y a n d m a k e e x e c u to r y c o n t r a c ts o f s a le . D eed s
w h ic h h a v e b e e n re c o r d e d a n d a r e p r o p e r ly a c k n o w le d g e d p r o v e th e m ­
se lv e s. A n y s u b s t a n ti a l d e p a r t u r e fr o m t h e f o r m o f a c k n o w le d g m e n ts
p r e s c r ib e d b y t h e s t a t u t e , s u c h a s t h e o m iss io n o f t h e w o rd s “ co n ­
s id e r a tio n ” o r “ p u r p o s e s ,” m a k e s t h e a c k n o w le d g m e n t a n d re c o rd
v o id ; b u t s t a t u t e s h a v e b e e n p a s s e d fr o m tim e t o ti m e c u r i n g d e fe c ­
ti v e a c k n o w le d g m e n ts p r e v io u s ly m a d e . S u c h a s t a t u t e w a s p a s s e d
in 1 9 0 7 . A n e w C u r a t iv e A c t w a s p a s s e d a n d a p p r o v e d F e b r u ­
a r y 10, 1911.
C o r p o r a t i o n s a r e o rg a n iz e d o n ly u n d e r g e n e ra l I n c o r p o r a tio n la w s.
B u s in e s s c o r p o r a tio n s m u s t c o n s is t o f n o t le ss t h a n th r e e p e rs o n s w h o
s h a ll e le c t a b o a r d o f d ir e c to r s . T h e p r e s id e n t a n d s e c r e t a r y a r e t o b e
e le c te d b y t h e b o a r d a n d t h e p r e s id e n t m u s t b e a m e m b e r o f i t . T h e
s e c r e t a r y a n d t r e a s u r e r m u s t r e s id e a n d k e e p t h e b o o k s o f t h e c o m ­
p a n y w ith in t h e S ta t e . T h e a r tic le s o f a s s o c ia tio n m u s t b e s ig n e d b y
t h e p r e s id e n t a n d a m a jo r it y of t h e d ir e c to r s , a n d m u s t b e a c c o m ­
p a n ie d b y a c e r tif ic a te s ig n e d in a lik e m a n n e r a n d s w o r n to b y th e
p r e s id e n t a n d a m a jo r it y o f th e d ir e c to r s , s e tt in g f o r th t h e p u r p o s e of
t h e c o r p o r a tio n , t h e a m o u n t o f it s c a p ita l s to c k , t h e a m o u n t a c tu a ll y
p a id in , th e n a m e s o f it s s to c k h o ld e r s a n d t h e n u m b e r o f s h a r e s h e ld
b y e a c h re s p e c tiv e ly , a n d t h e a r t ic l e s a n d c e rtif ic a te m u s t b e filed in
t h e o ffice o f th e c le r k o f t h e c o u n t y in w h ic h t h e c o r p o r a t io n is to
t r a n s a c t b u s in e s s a n d th e n w ith t h e c l e r k ’s e n d o r s e m e n t in t h e office
o f t h e s e c r e t a r y o f S ta t e . T h e s to c k c a n b e t r a n s f e r r e d o n ly u p o n th e
c o m p a n y ’s b o o k s , a n d a re c o r d o f t h e t r a n s f e r h a s to b e d e p o s ite d w ith
t h e c o u n t y c le rk In o r d e r to b e v a lid a s ag a in B t c r e d ito r s o f t h e t r a n s ­
f e ro r. T h e c o r p o r a tio n h a s a lie n o n i t s s to c k f o r d e b t s d u e f ro m th e
s to c k h o ld e r s . T h e p r e s id e n t a n d s e c r e t a r y a r e r e q u ir e d to file w ith
t h e c o u n t y c le r k a n a n n u a l s t a t e m e n t o f I ts fin a n c ia l c o n d itio n , a n d
In c a s e o f a f a ilu r e to d o so b e c o m e lia b le f o r i t s d e b t s . I f t h e d ir e c ­
t o r s d e c la r e a d iv id e n d w h e n t h e c o r p o r a t io n Is in s o lv e n t t h e y b ec o m e
lia b le f o r a ll th e c o r p o r a te d e b t s . A n y c o r p o r a tio n w h ic h is in s o lv e n t
o r h a s c e a s e d to d o b u s in e s s m a y b e w o u n d u p o n t h e s u i t o f a n y
c r e d i to r o r s to c k h o ld e r b y a d e c re e o f t h e c h a n c e r y c o u r t . P r e f e r ­
e n c e s b y in s o lv e n t c o r p o r a tio n s a r e f o r b id d e n . S h a r e s o f s to c k a r e In
d e n o m in a tio n s o f $25 o r $ 1 0 0 . B e fo re a n y c o r p o r a tio n , fo re ig n o r
d o m e s tic , c a n d o a n y b u s in e s s in t h i s S t a t e , a n a n n u a l fr a n c h is e t a x
m u s t b e p a id t o t h e S t a t e T r e a s u r e r , to - w it : O n e - f if te e n th o f o n e
p e r c e n t e a c h y e a r u p o n t h e p r o p o r ti o n o f t h e o u ts ta n d in g c a p ita l
s to c k o f t h e c o r p o r a tio n r e p r e s e n te d b y p r o p e r t y o w n e d a n d u s e d in
b u s in e s s t r a n s a c te d in th i s s t a t e .
E v e r y c o r p o r a tio n d o in g b u s in e s s f o r p r o f it a n d o rg a n iz e d a s a
m u t u a l life, fire, a c c id e n t, s u r e ty , h e a l t h o r o th e r in s u r a n c e c o m p a n y
n o t h a v in g a c a p ita l s to c k a n d n o t o rg a n iz e d f o r c h a r i ta b l e p u r p o s e s
s h a ll p a y a n a n n u a l t a x o f $ 1 0 0 .0 0 .
A ll f o re ig n o r d o m e s tic in s u r a n c e c o m p a n ie s , o f w h a ts o e v e r n a t u r e ,
d o in g b u s in e s s In th i s s t a t e a n d h a v i n g a n o u ts ta n d in g c a p ita l s to c k
o f le ss t h a n $ 5 0 0 ,0 0 0 s h a ll p a y a n a n n u a l t a x o f $ 1 0 0 ; a n d s u c h c o m ­
p a n ie s h a v i n g a c a p ita l s to c k o f $ 5 0 0 ,0 0 0 o r m o r e a n a n n u a l t a x o f
$ 2 0 0 , th i s t a x b e in g in lie u o f t h e t a x o n t h e c a p ita l a s p r o v id e d in
o t h e r ca ses.
E v e r y i n v e s t m e n t c o m p a n y , fo re ig n o r d o m e s tic , e x c e p t N a ti o n a l
b a n k s a n d c o r p o r a tio n s n o t o r g a n iz e d f o r p r o f it, in c o r p o r a te d o r u n in ­
c o r p o r a te d , w h ic h s h a ll sell o r n e g o t ia t e t h e s a le o f a n y s to c k s , c o n ­
t r a c t s , b o n d s o r o th e r s e c u r itie s o f a n y k in d o r c h a r a c te r o th e r t h a n
b o n d s o f t h e U n ite d S ta t e s , o r o f s o m e m u n ic ip a lity a u t h o r iz e d to
is s u e b o n d s o f t h e S ta t e , a n d n o te s s e c u r e d b y m o r tg a g e s o n r e a l
e s t a t e lo c a te d in t h e S ta te , o r s e ll b u ild in g s to c k o r lo a n in v e stm e n ts*
s h a ll file In t h e office o f t h e B a n k C o m m is s io n e r , to g e th e r w ith a fe e
o f $ 5 .0 0 , in a d d i tio n t o t h e fees r e q u ir e d o f a ll in c o r p o r a tio n s , th e
fo llo w in g d o c u m e n ts : A s t a t e m e n t s h o w in g i n d e t a il t n e p la n u p o n
c o n t r ib u to r s ; a s t a t e m e n t s h o w in g n a m e a n d lo c a tio n o f c o m p a n y
a n d a n ite m iz e d a c c o u n t o f it s a c tu a l fin a n c ia l c o n d itio n a n d a n y o th e r
s u c h I n f o r m a tio n w h ic h t h e B a n k C o m m is s io n e r m a y r e q u i r e ; If
s u c h c o m p a n y b e a c o - p a r tn e r s h ip o r u n in c o r p o r a te d a s s o c ia tio n , i t

B A N K I N G A N D C O M M E R C IA L L A W S — A R K A N S A S
s h a ll a lso file a c o p y o f i t s a r tic le s o f c o - p a r tn e r s h ip o r a s s o c ia tio n a n d
a ll o th e r p a p e rs p e r t a in i n g t o i t s o rg a n iz a tio n ; i f i t b e a n A r k a n s a s
c o r p o r a tio n i t s h a ll file a c o p y o f i t s a r tic le s o f in c o r p o r a tio n , c o n ­
s t i t u t i o n a n d b y -la w s a n d a ll o th e r p a p e rs p e r t a in i n g t o i t s o r g a n iz a ­
tio n ; i f i t b e o rg a n iz e d u n d e r t h e la w s o f a n y o th e r s t a t e o r t e r r i t o r y
o r g o v e r n m e n t, in c o r p o r a te d o r u n in c o r p o r a te d , i t s h a ll file a c o p y o f
t h e la w s o f s u c h s t a t e o r g o v e r n m e n t u n d e r w h ic h i t e x is ts o r is in c o r ­
p o r a te d , a n d a ls o a c o p y o f i t s c h a r t e r , a r tic le s o f in c o r p o r a tio n ,
c o n s ti tu ti o n a n d b y -la w s a n d o t h e r i p a p e r s p e r t a in i n g t o i t s o r g a n i­
z a tio n .
T h e B a n k C o m m is s io n e r s h a ll e x a m in e a ll s u c h p a p e rs a n d m a y
a d m i t o r r e j e c t s u c h c o m p a n y in h is d is c r e tio n ; a c o m p a n y re je c te d ,
o r w h o se r i g h t t o d o b u s in e s s is r e v o k e d b y t h e B a n k C o m m is sio n e r,
m a y , w ith in t w e n t y d a y s , a p p e a l t o t h e c h a n c e r y c o u r t o f a n y c o u n t y
in t h e s t a t e w h e re i t s p r in c ip a l office is l o c a te d o r p r in c ip a l a g e n t re s id e s
I f i t b e f o u n d t h a t , t h e re f u s a l o r r e v o c a tio n w a s ju s tifie d , t h e c o s t
s h a ll b e p a id b y t h e c o m p a n y ; o th e rw is e b y t h e s t a t e a s p r o v id e d b y
s ta tu te .
A n y in d iv id u a l o r p e rs o n s , c o - p a r tn e r s h ip s , c o r p o r a tio n , c o m p a n ie s
o r a s s o c ia tio n , d o m e s tic o r fo re ig n , w h ic h s h a ll se ll a n y b u ild in g , o r
in v e s t m e n t c o n t r a c ts o r lik e s e c u r itie s o n w h ic h p a y m e n ts a r e t o b e
m a d e fr o m t i m e t o tim e , s h a ll f irs t e n t e r in t o a b o n d w ith t h e S t a t e o f
A r k a n s a s in t h e s u m o f $ 2 0 ,0 0 0 f o r t h e f a i th f u l p e rfo rm a n c e o f it s
c o n t r a c t.
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Its p r e s id e n t file i n t h e office o f t h e s e c r e t a r y o f S t a t e a c e rtif ic a te
u n d e r t h e s e a l o f t h e c o m p a n y n a m in g a n a g e n t, w h o s h a ll b e a c itiz e n
o f th is S t a t e u p o n w h o m s e rv ic e of p ro o e s s c a n b e m a d e . T h e c e r t i­
fic a te s h a ll s t a t e t h e p rin c ip a l p la c e of b u s in e s s o f t h e c o r p o r a t io n ;
a n d s e rv ic e on t h e a g e n t s h a ll b in d it . T h e c o r p o r a t io n m u s t a lso file
a c e rtifie d c o p y o f it s c h a r t e r to g e t h e r w ith a s t a t e m e n t o f Its a s s e ts
a n d lia b ilitie s , a n d t h e a m o u n t o f it s c a p ita l e m p lo y e d in th i s s t a t e
In t h e office o f t h e s e c r e t a r y o f S ta t e , a n d In t h e office o f t h e c o u n t y
w h e re I t o p e n s a n office, a n d .m u s t p a y s a m e fees a s a r e r e q u ir e d o f
h o m e c o r p o r a tio n s . I t m u s t a lso file a re s o lu tio n o f it s b o a r d o f
d ir e c to r s c o n s e n tin g t h a t s e rv ic e o f p ro c e s s o n a n y o f i t s a g e n ts o r o n
th e s e c r e t a r y o f S t a t e s h a ll b e a g o o d s e rv ic e . I f i t s u e s in th e fe d e r a l
c o u r t o r r e m o v e s a s u i t t h e r e w ith o u t c o n s e n t o f its a d v e r s a r y . Its
r ig h t to d o b u s in e s s is re v o k e d . D o in g b u s in e s s h e re w ith o u t c o m p li­
a n c e w ith t h e la w s u b je c ts t h e c o r p o r a t io n to a fin e o f n o t le s s t h a n
$ 1 ,0 0 0 . T h e s e re q u ir e m e n ts d o n o t a p p l y to r a ilr o a d o r te le g r a p h
c o m p a n ie s t h a t h a d b u il t lin e s in t h e S t a t e p r io r t o F e b . 16, 1899. I f
a n y c o r p o r a t io n fa ils to a p p o i n t a n a g e n t, s e rv ic e o f p ro c e s s o n th e
a u d i t o r o f S t a t e s h a ll b in d it . N o fo re ig n c o r p o r a tio n c a n s u e o n a n y
c o n t r a c t m a d e in th i s S t a t e u n t i l th e s e p ro v is io n s a r e c o m p lie d w ith .
C o u r t s . T h e s u p r e m e c o u r t is h e ld a t L i ttl e R o c k a rid h a s ju r i s ­
d ic tio n o f a p p e a ls fr o m t h e c ir c u it a n d c h a n c e r y c o u r ts . I n a ll c o u n ­
tie s s e p a r a t e c o u r ts o f c h a n c e r y h a v e b e e n e s ta b lis h e d . T h e e s ta te s
o f d e c e a s e d p e rs o n s a r e e n t r u s t e d e x c lu s iv e ly t o t h e p r b b a t e c o u r ts ,
w ith r ig h t o f a p p e a l t o t h e c ir c u it a n d th e n c e t o t h e s u p r e m e c o u r t.
C la im s a g a in s t c o u n tie s a r e h e a r d b y t h e c o u n t y c o u r t, a s a lso m a t t e r s
to u c h in g p a u p e rs a n d t h e lik e
T h e ju s ti c e s ’ c o u r t s h a v e ju r is d ic tio n
of m a t t e r s o f c o n t r a c t n o t e x c e e d in g $ 3 0 0 , a n d m a t t e r s of t o r t n o t
e x c e e d in g $ 1 0 0 . T w o te r m s o f th e c ir c u it a n d c h a n c e r y c o u r t a n d
f o u r o f t h e c o u n t y a n d p r o b a t e c o u r t s a r e h e ld in e a c h c o u n t y p e r y e a r .
D eeds.
(S ee A c k n o w le d g m e n ts a n d C o n v e y a n c e s .)
D e p o s i t i o n s m a y b e t a k e n in t h e S t a t e b e fo re a n y ju d g e o r c le r k o f
a c o u r t o f re c o rd , ju s ti c e o f t h e p e a c e , m a y o r , o r n o t a r y p u b lic ; o u t
o f t h e S t a t e b e fo re a c o m m is s io n e r f o r th i s S ta t e , ju d g e , j u s ti c e o f t h e
e a c e , m a y o r, n o t a r y p u b lic , o r p e r s o n c o m m is s io n e d b y t h e c o u r t o r
y c o n s e n t o f p a r tie s .
D e s c e n t s a n d D i s t r i b u t i o n s . P r o p e r t y d e s c e n d s to c h ild r e n a n d
t h e i r d e s c e n d a n ts in e q u a l p a r t s ; if n o c h ild re n , t h e n t o f a t h e r , t h e n to
m o t h e r , t h e n t o b r o th e r s a n d s is te r s a n d t h e i r d e s c e n d a n ts in e q u a l
p a r t s , a n d in d e f a u l t o f s u c h t o t h e n e a r e s t lin e a l a n c e s t o r o r h is
d e s c e n d a n ts in e q u a l p a r t s p e r s tir p e s . I ll e g it im a te c h ild r e n i n h e r it
a n d t r a n s m i t a n in h e r ita n c e fr o m t h é m o t h e r in t h e s a m e m a n n e r a s
If le g iti m a t e . I f t h e p a r e n t s o f ille g itim a te c h ild re n s u b s e q u e n tly
i n t e r m a r r y a n d t h e f a t h e r re c o g n iz e s th e m a s h is , t h e y s h a ll b e d e e m e d
le g itim a te . I n d e f a u l t o f h e irs t h e w h o le p r o p e r t y g o es t o h u s b a n d
o r w ife, a n d in t h e i r d e f a u l t to t h e S t a t e . I f t h e e s t a t e is a n c e s t r a l i t
g o es to t h e b lo o d o f t h e a n c e s t o r fro m w h o m i t w a s d e r iv e d . R e la ­
tio n s o f t h e h a lf-b lo o d i n h e r it e q u a lly . H e ir s t a k e a s t e n a n t s in
com m on.
D o w e r . W h e re th e r e a r e c h ild re n t h e w ife ta k e s o n e - t h ir d o f th e
h u s b a n d ’s p e r s o n a l e s t a t e a b s o lu t e ly a n d o n e - t h ir d o f t h e r e a l e s ta te
o f w h ic h h e w a s s e iz e d a t a n y ti m e d u r in g t h e m a r r ia g e , f o r life . W h e rè
th e r e a r e n o c h ild re n s h e ta k e s In a .n e w a c q u is itio n o n e -h a lf o f t h e r e a l ’
a n d p e r s o n a l e s t a t e a b s o lu t e ly a s a g a in s t h e irs , o r o n e - t h ir d a b s o lu te ly
a t a g a in s t c re d ito rs . I f i t is a n a n c e s t r a l e s ta te , s h e ta k e s o n e - h a lf f o r
life a g a in s t h e irs a n d o n e - t h ir d f o r life a g a in s t c r e d ito r s .
E x e c u t i o n s fr o m t h e c i r c u it c o u r t a r e r e t u r n a b le in s i x t y d a y s ,
th o s e fro m ju s ti c e s ’ c o u r ts w ith i n t h i r t y . T h e y m a y b e s ta y e d f o r
s ix m o n t h s b y g iv in g b o n d . T h e y a r e a lie n o n t h e p r o p e r t y o f t h e
d e f e n d a n t in t h e c o u n t y fro m th e tim e t h e y c o m e t o t h e o ffic e r’s
h a n d s . T h e o ffic er b e fo re le v y in g o n p e r s o n a l p r o p e r t y , t h e t i tle
to w h ic h is d o u b tf u l, m a y r e q u ir e t h e p la in ti f f t o g iv e h im a n in d e m ­
n if y in g b o n d , a n d t h e n s u i t m u s t b e b r o u g h t b y t h e c la im a n t u p o n
t h e b o n d . T h e d e f e n d a n t a n d o t h e r j u d g m e n t c r e d ito r s h a v e o n e y e a r
in w h ic h to re d e e m f r o m t h e s a le o f r e a l e s ta te . I n c a s e t h e w r it is
r e t u r n e d n u lla b o n a th e p la in tif f m a y p ro c e e d b y b ill o f d is c o v e r y
a g a in s t t h e d e f e n d a n t a n d e x a m in e h im o n o a t h , a n d e n fo rc e a s u r ­
r e n d e r o f c o n c e a le d p r o p e r t y b y im p r is o n m e n t.
E x e m p tio n s .
U n m a r r ie d p e rs o n s a r e e n t itl e d t o $200 a n d m a r r ie d
p e r s o n s a n d h e a d s o f fa m ilie s to $500 in s e le c te d a r tic le s o f p e rs o n a l
p r o p e r t y a s e x e m p t a g a in s t d e b t s b y c o n t r a c t. P e r s o n s w h o a r e
m a r r ie d o r h e a d s o f fa m ilie s a r e e n t i t l e d to a h o m e s te a d a s a g a in s t a ll
d e b ts , e x c e p t t h e p u r c h a s e - m o n e y , s p e c ific lie n s , la b o r e r s ’ a n d m e c h a n ­
ic s ’ lie n s , ta x e s a n d c la im s f o r t r u s t f u n d s c o n v e rte d . T h e h o m e s te a d
In t h e c o u n t r y is n o t to e x c e e d 160 a c re s , a n d in to w n n o t t o e x c e e d
o n e a c re , n o r to h e w o r th m o re t h a n $ 2 ,5 0 0 , b u t t h e c o u n t r y h o m e ­
s te a d is n o t to b e re d u c e d to le ss t h a n 80 a c re s n o r th e to w n h o m e s te a d
to le ss t h a n o n e - f o u r th o f a n a c re , r e g a rd le s s o f v a lu e . T h e h o m e s te a d
g o es t o t h e w id o w a n d m in o r c h ild re n a f t e r t h e h u s b a n d ’s d e a t h . T h e
h o m e s te a d c a n o n ly b e c o n v e y e d b y d e e d In w h ic h t h e w ife jo in s a n d
w h ic h is a c k n o w le d g e d b y h e r , a n d if t h e h u s b a n d n e g le c ts t o c la im
t h e h o m e s te a d th e w ife m a y d o so.
F r a u d . T h e E n g lis h s t a t u t e o f f r a u d u l e n t c o n v e y a n c e s h a s b e e n
r e - e n a c te d In th i s S ta t e .
G a r n i s h m e n t s m a y b e s u e d o u t p e n d in g s u i t u p o n g iv in g b o n d In
d o u b le t h e a m o u n t g a rn is h e d , o r a f t e r j u d g m e n t w ith o u t b o n d .
H o l i d a y s . (S ee B ills o f E x c h a n g e a n d P r o m is s o r y N o te s .) T h e
S d d a y o f J u n e is m a d e a le g a l h o lid a y .
H u s b a n d a n d W ife .
(S ee M a rrie d W o m e n .)
I n j u n c t i o n s m a y b e is s u e d b y c i r c u it ju d g e s , c h a n c e llo rs , o r th e
ju d g e o f a n y c o u r t in w h ic h s u it is b r o u g h t. T h e p e r s o n a p p ly in g
f o r t h e in j u n c ti o n m u s t g iv e b o n d a s t h e c o u r t o r ju d g e m a y d ir e c t.
I n s o l v e n c y . A n y in s o lv e n t d e b t o r m a y a p p l y t o t h e c h a n c e r y
e o u r t f o r t h e a p p o i n t m e n t o f a re c e iv e r, w h o m a y h a v e a ll a t t a c h m e n t s
d is s o lv e d , t a k e p o s se ss io n o f all t h e d e b t o r ’s a s s e ts , a n d p a y t h e p ro ­
c e e d s, f irs t, to la b o r e r s a n d e m p lo y e e s w h o se c la im s m a y h a v e a c c r u e d
w ith in t h r e e m o n t h s , s e c o n d , to a ll c r e d ito r s w h o w ill e x e c u te a re le a s e ,
a n d t h i r d , t o t h e c r e d ito r s g e n e ra lly


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

1395

I n t e r e s t . T h e le g a l r a t e o f in t e r e s t is 6 p e r c e n t, b u t p a r t ie s m a y
c o n t r a c t in w r itin g f o r n o t e x c e e d in g 10 p e r c e n t. I n t e r e s t e x a c te d in
e x c e ss o f 10 p e r c e n t fo r f e its t h e d e b t . I n c o m p u tin g t h e in t e r e s t
c o m m is s io n s p a id to t h e a g e n t o f t h e le n d e r a r e c o u n te d a s in t e r e s t.
W h e re u s u r y is c h a rg e d t h e b o r r o w e r m a y g o in t o e q u i ty a n d h a v e t h e
d e b t a n d s e c u r itie s c a n c e lle d w ith o u t te n d e r in g t h e a m o u n t la w f u lly
d u e . J u d g m e n t s b e a r t h e s a m e r a t e o f in t e r e s t a s th e o b lig a tio n su ed
o n . J u d g m e n t s a g a in s t c o u n tie s b e a r n o I n te r e s t.
J u d g m e n t s (S ee I n te r e s t ) a r e lie n s u p o n t h e r e a l e s t a t e of th e
d e b t o r in t h e c o u n t y w h e r e r e n d e r e d f o r th r e e y e a rs . T h e lie n m a y be
r e n e w e d a n d c o n t in u e d f o r th r e e y e a r s b y s c ir e f a c ia s . J u d g m e n t s
o f t h e U n ite d S ta t e s a n d o t h e r c o u r ts c a n b e m a d e lie n s o n la n d s in
c o u n tie s o t h e r t h a n t h a t w h e r e t h e y a r e r e n d e r e d b y filin g a ce rtifie d
c o p y in t h e office o f t h e c i r c u it c le rk .
J u ris d ic tio n .
(S ee C o u rts .)
L i e n s . M e c h a n ic s, b u ild e r s , a r t is a n s , la b o r e r s , a n d o th e r s d o in g
a n y w o r k u p o n o r f u r n is h in g a n y m a te r i a l f o r a n y b u ild in g o r e re c tio n
u n d e r a n y c o n t r a c t w ith th e o w n e r o r h is a g e n t, c o n t r a c to r o r s u b ­
c o n t r a c to r , s h a ll h a v e f o r s u c h w o rk o r m a te r i a l f u r n is h e d a lie n o n
t h e b u ild in g o r im p r o v e m e n t to g e t h e r w ith t h e l a n d o n w h ic h i t s ta n d s
to t h e e x t e n t o f o n e a c r e if in t h e c o u n t r y ; if in a c i ty t h e lo t o r la n d
u p o n w h ic h t h e e r e c tio n is s i t u a t e d . H o te l k e e p e r s h a v e lie n o n
b a g g a g e a n d p e r s o n a l e ffe c ts of g u e s ts . L iv e r y m a n h a v e lie n o n all
s to c k a n d p r o p e r t y le f t in t h e i r c a re .
L i m i t a t i o n s . S u its f o r t h e p o s se ss io n of r e a l e s t a t e m u s t b e
b r o u g h t w ith i n s e v e n y e a r s , s a v in g t o m in o r s , m a r r ie d w o m e n , a n d
lu n a tic s th r e e y e a r s a f t e r t h e i r d is a b ilitie s a r e r e m o v e d . A c tio n s f o r
r e c o v e r y o f la n d s s o ld a t ju d ic ia l s a le s m u s t b e b r o u g h t w ith in fiv e
y e a rs , s a v in g to m in o r s a n d l u n a tic s t h r e e y e a r s a f t e r r e m o v a l to
d is a b ilitie s . A c tio n s f o r t h e r e c o v e r y o f la n d s h e ld u n d e r t a x t i t l e
m u s t b e b r o u g h t in t w o y e a rs . A c tio n s f o r f o rc ib le e n t r y a n d d e t a in e r ,
o n c o n t r a c ts n o t in w r itin g , f o r tr e s p a s s a n d f o r lib e l, w ith in th r e e
y e a rs . A c tio n s f o r c r im in a l c o n v e rs a tio n , a s s a u lt a n d b a t t e r y , false
im p r is o n m e n t, a n d s la n d e r , w ith in o n e y e a r . A c tio n s o n w r itt e n
I n s tr u m e n ts , w ith i n fiv e y e a r s ; o n ju d g m e n ts , w ith i n t e n y e a r s ; o n
b o n d s o f e x e c u to r s a n d a d m in is tr a to r s , w ith in e ig h t y e a r s . I n a ll
c a se s , e x c e p t a c tio n s f o r t h e r e c o v e r y o f la n d s , m in o r s a n d lu n a tic s
h a v e , a f t e r r e m o v a l o f t h e i r d is a b ility , t h e s t a t u t o r y p e r io d In w h ic h
t o s u e . V erb al, p ro m is e s o r a c k n o w le d g m e n ts d o n o t t a k e a c la im
o u t of t h e s t a t u t e . O n e y e a r is a llo w e d a f t e r d is m is s a l of a s u it in
w h ic h t o b e g in a n e w a c tio n . N o p e r s o n c a n a v a il h im s e lf of a d is­
a b i lit y w h ic h d id n o t e x i s t a t t h e tim e t h e r ig h t o f a c tio n a c c r u e d . N o
e n d o r s e m e n t o f p a y m e n t m a d e b y t h e p a y e e o r o n h is b e h a lf is su ffi­
c ie n t p r o o f to t a k e t h e c a s e o u t o f t h e s t a t u t e .
L i m i t e d P a r t n e r s h i p s m a y c o n s is t o f o n e o r m o r e g e n e ra l, a n d o n e
o r m o r e s p e c ia l p a r t n e r s . T h e l a t t e r o f w h o m s h a ll c o n s ti tu te in c a sh a
sp e c ific a m o u n t a s h is s h a r e o f t h e c a p ita l, b e y o n d w h ic h h e i s , n o t
lia b le f o r firm d e b t s . T h o s e f o r m in g s u c h p a r t n e r s h i p m u s t m a k e
a n d file In office o f c i r c u it c le r k o f c o u n ty , a n d p r in c ip a l p la c e o f b u s i­
n e s s , a c e r tif ic a te s h o w in g n a m e o f firm , n a m e s o f p a r t n e r s , d is ti n ­
g u is h in g b e tw e e n g e n e ra l a n d s p e c ia l, n a t u r e o f b u s in e s s , a m o u n t
o f c a p ita l c o n t r ib u te d b y e a c h p a r t n e r , p e rio d o f c o m m e n c e m e n t a n d
te r m i n a t i o n o f p a r t n e r s h i p . B u s in e s s to b e c o n d u c te d b y g e n e ra l
p a r t n e r s a n d s u its b r o u g h t b y o r a g a in s t th e m .
M a r r i e d W o m e n . T h e p r o p e r t y , r e a l a n d p e r s o n a l, o f m a r r ie d
w o m e n r e m a in s t h e i r s e p a r a t e e s t a t e a s lo n g a s t h e y c h o o se , a n d m a y
b e d e v is e d o r c o n v e y e d w ith o u t t h e h u s b a n d ’s a s s e n t, a n d is n o t
s u b je c t t o h is d e b t s . I f s h e d ie s w ith o u t m a k in g a n y d is p o s itio n of
h e r r e a l e s ta te , h e is e n t itl e d t o c u r te s y . S h e m a y c a r r y o n a n y b u s i­
n e s s o r p e r f o r m a n y s e rv ic e s o n h e r o w n a c c o u n t, a n d h e r e a rn in g s , a r e
h e rs , a n d s h e m a y s u e a lo n e in r e s p e c t o f h e r s e p a r a t e p r o p e r t y . S h e
c a n b in d h e rs e lf b y c o n t r a c t o n ly in r e f e r e n c e to h e r s e p a r a t e e s t a t e o r
b u s in e s s . S h e c a n n o t e n t e r in t o p a r t n e r s h i p w ith h e r h u s b a n d . I f s h e
d o e s n o t file a s c h e d u le o f h e r p e r s o n a l p r o p e r t y , t h e b u r d e n o f p ro o f
is o n h e r t o s h o w t h a t i t is h e rs .
M in e s a n d M in in g .
U n d e r c o n tr o l o f c o m m is s io n e r o f m in e s .
AH d o c u m e n ts r e l a ti n g t o m in e s m u s t b e r e c o r d e d in t h e r e c o r d e r ’s
o ffice o f t h e c o u n t y ; a n d m in e r s o f t h e c o u n t y m a y m a k e b y -la w s
r e g a r d in g t h e tim e , m a n n e r , a n d a m o u n t o f w o rk n e c e s s a r y to h o ld
c la im s a n d o th e r ru le s a n d r e g u la tio n s n o t in c o n flic t w ith la w . E x t e n ­
s iv e p r o v is io n s a r e m a d e f o r t h e p r o te c ti o n o f t h e h e a lth a n d s a f e ty
o f m in e r s .
(A c ts 1893, p . 2 1 3 ). M in e rs h a v e a lie n o n t h e o u t p u t ,
m a c h in e r y , a n d to o ls u s e d t o s e c u r e p a y m e n t f o r w o r k d o n e . T h r e e
y e a r s ’ p o s se ss io n o f a m in e , w ith w o r k r e q u ir e d b y la w , g iv e s p o s s e s s o ry
r ig h t .
M o r t g a g e s a r e n o t lie n s a s a g a in s t a n y o n e , th o u g h s u c h p e rs o n
h a s a c tu a l n o tic e o f t h e i r e x is te n c e , u n t i l t h e y a r e a c k n o w le d g e d in
t h e f o rm p r e s c r ib e d a n d filed f o r r e c o rd . M o rtg a g e s o f r e a l e s ta te
a r e r e c o r d e d in t h e c o u n t y w h e r e th e l a n d lie s , a n d m o r tg a g e s of
p e r s o n a l p r o p e r t y in t h e c o u n t y o f t h e m o r t g a g o r ’s r e s id e n c e . I f th e
m o r t g a g o r o f p e r s o n a l ity Is a n o n - r e s id e n t t h e m o r tg a g e is r e c o r d e d
in t h e c o u n t y w h e re t h e p r o p e r t y is s i t u a t e . S a le s u n d e r m o r tg a g e s
a n d d e e d s o f t r u s t c a n b e m a d e o n ly a f t e r a p p r a i s e m e n t , a n d th e
p r o p e r t y m u s t b r in g tw o - th i r d s o f t h e a p p r a i s e d v a lu e . I n c a s e I t is
o ffe re d a n d f a lls t o b r in g t h e r e q u ir e d a m o u n t r e a l e s t a t e m a y b e
o ffe re d a g a in a f t e r o n e y e a r a n d p e r s o n a l p r o p e r t y a f t e r s ix ty d a y s ,
a n d is t h e n so ld f o r w h a t i t w ill b r in g . T h e m o r t g a g o r o f r e a l e s ta te
h a s o n e y e a r f r o m t h e d a t e o f s a le in w h ic h t o r e d e e m . I n a c tio n t o
fo re c lo se a m o r tg a g e , i t is s u ffic ie n t d e fe n c e t h a t t h e d e b t ( w h ic h i t
r e c ite s ) , is b a r r e d b y s t a t u t e o f lim ita tio n s .
C h a t te l M o rtg a g e s m a y b e a c k n o w le d g e d a n d filed a s o t h e r m o r t ­
g a g e s, o r t h e y m a y b e e n d o r s e d " T h i s i n s t r u m e n t is t o b e filed b u t n o t
r e c o r d e d ,” s ig n e d b y t h e m o r tg a g e e , a n d m a y t h e n b e filed In th e
r e c o r d e r ’s office w ith t h e s a m e e ffe c t a s th o u g h r e c o r d e d . M o rtg a g e s
o f p e r s o n a l p r o p e r t y r e s e r v in g In t h e m o r tg a g o r t h e p o w e r o f d is p o s i­
ti o n a r e f r a u d u l e n t.
M o r t g a g e s a n d D e e d s o f T r u s t m a y b e e n fo r c e d b y f o r e c lo s u r e
a t a n y ti m e w ith in t h e p e r io d p r e s c r ib e d b y la w f o r fo re c lo s in g m o r t ­
g a g e o r d e e d o f t r u s t s o f a r a s t h e p r o p e r t y m e n tio n e d a n d d e s c r ib e d
in s u c h m o r tg a g e o r d e e d o f t r u s t is c o n c e r n e d , b u t n o c la im o r d e b t
a g a in s t t h e e s ta te o f a d e c e a s e d p e r s o n s h a ll b e p r o b a t e d a g a in s t
s u c h e s t a t e w h e th e r s e c u r e d b y m o r tg a g e o r d e e d o f t r u s t o r n o t
e x c e p t w ith in t h e tim e p r e s c r ib e d b y la w f o r p r o b a t in g c la im s a g a in s t
s a id e s ta te .
P o w e rs o f A tto r n e y . L an d s m a y be conveyed b y pow er of a tto r­
n e y , w h ic h is a c k n o w le d g e d a s d e e d s a n d re c o r d e d in t h e c o u n t y
w h e re t h e la n d s lie.
P ro b a te L a w .
(S ee A d m in i s t r a ti o n o f E s ta te s .)
P ro te s ts .
(S ee B ills o f E x c h a n g e a n d P r o m is s o r y N o te s.)
R e c o rd s.
(S ee
A c k n o w le d g m e n ts ,
C onveyances,
M o rtg a g e s ,
C h a t te l M o rtg a g e s, a n d P o w e r s o f A tto r n e y .)
R e d e m p tio n .
(See E x e c u tio n s a n d M o rtg a g e s.)
R e p l e v i n . T h e p la in tif f in r e p le v in m a y file a n a f f id a v it d e s c r ib in g
th e p r o p e r t y , s t a t i n g its v a lu e a n d th e a m o u n t o f d a m a g e s h e e x p e o ts
to r e c o v e r, h is ti tle , t h a t th e p r o p e r t y Is w r o n g f u lly d e t a in e d b y t h e
d e f e n d a n t, t h a t i t h a s n o t b e e n t a k e n f o r a t a x o r u n d e r p ro c e s s a g a in s t
p la in tiff, a n d t h a t h is c a u s e o f a c tio n h a s a c c r u e d w ith in th r e e y e a rs ,
a n d u p o n g iv in g b o n d in d o u b le i t s v a lu e , t h e p r o p e r t y s h a ll b e t a k e n
f ro m th e d e f e n d a n t a n d g iv e n to th e p la in tif f p e n d in g th e s u it, u n le s s
th e d e f e n d a n t w ith in tw o d a y s a f t e r i t Is t a k e n g iv e s a c r o s s -b o n d .
R e v i s i o n . T h e la s t re v is io n o f t h e s t a t u t e s w a s i n 1904.

1396

B A N K I N G A N D C O M M E R C IA L L A W S — C A L IF O R N IA

T a x e s a r e a lie n b e tw e e n v e n d o r a n d p u r c h a s e r fr o m t h e f ir s t M o n ­
d a y in D e c e m b e r. T h e y a r e p a y a b le b e tw e e n t h e f ir s t M o n d a y in
J a n u a r y a n d t h e 1 0 th o f A p ril. I n c a s e o f n o n - p a y m e n t a p e n a lty of
25 p e r c e n t is a d d e d . L a n d s m a y b e r e d e e m e d w ith in tw o y e a r s b y
p a y i n g ta x e s , p e n a lty , a n d c o s ts , w ith 10 p e r c e n t in t e r e s t. M in o rs,
lu n a tic s , a n d p e rs o n s i n c o n fin e m e n t m a y r e d e e m w ith i n tw o y e a r s
a f t e r t h e i r d is a b i lit y is r e m o v e d . (S ee a ls o C o rp o r a tio n s .)
T e s tim o n y .
(S ee E v id e n c e .)
T r a n s f e r o f C o rp o ra tio n S to c k .
(S ee C o rp o r a tio n s .)
T r u s t C o m p a n i e s m u s t h a v e a p a id - u p c a p ita l o f $ 5 0 ,0 0 0 , a n d
In c o u n tie s w ith a p o p u la tio n e x c e e d in g 50,0 0 0 , t h e y m u s t h a v e a s u b ­
s c rib e d c a p i t a l o f n o t le ss t h a n $ 1 0 0 ,0 0 0 . T h e y m a y e x e rc is e a ll t h e
p o w e rs c o m m o n ly c o n fe rre d o n s u c h c o m p a n ie s .
W a g e s . N o a s s ig n m e n t o r o r d e r o f w a g e s t o b e e a r n e d in t h e
f u t u r e t o s e c u r e a lo a n o f le ss t h a n $ 2 0 0 , s h a ll b e v a lid a g a in s t a n y
e m p lo y e r o r t h e p e r s o n m a k in g s u c h a s s ig n m e n t o r o r d e r , u n ti l s u c h
a s s ig n m e n t o r o r d e r is a c c e p te d in w r itin g b y t h e e m p lo y e r a n d t h e
s a id a s s ig n m e n t o r o r d e r a n d t h e a c c e p ta n c e o f s a m e h a s b e e n filed
w ith t h e r e c o r d e r o f t h e c o u n t y w h e r e t h e p a r t y m a k in g t h e a s s ig n ­
m e n t o r o r d e r re s id e s , i f a ’r e s id e n t o f t h e s t a t e w h e r e h e is e m p lo y e d .
N o a s s ig n m e n t o r o r d e r o f w a g e s t o b e e a rn e d i n t h e f u t u r e s h a ll b e
v a l id w h e n m a d e b y a m a r r ie d m a n u n le s s t h e w r i t t e n c o n s e n t o f h is
w ife t o m a k in g s u c h a n a s s ig n m e n t o r o r d e r f o r w a g e s s h a ll b e a t t a c h e d .
W a r e h o u s e R e c e i p t s a n d B i l l s o f L a d i n g s h a ll n o t b e g iv e n
e x c e p t w h e re t h e c o m m o d itie s m e n tio n e d a r e re c e iv e d o n t h e p re m is e s ,
a n d a r e u n d e r t h e c o n tr o l o f t h e w a re h o u s e m a n a t t h e ti m e o f it s
is s u a n c e . N o w a r e h o u s e m a n s h a ll sell, e n c u m b e r , s h ip , o r r e m o v e
a n y s u c h c o m m o d ity f o r w h ib h a r e c e ip t h a s b e e n g iv e n w ith o u t t h e
w r i t t e n a s s e n t o f t h e h o ld e r o f t h e re c e ip t. T h e s a m e p ro v is io n s c o v e r
o w n e rs a n d a g e n ts o f b o a t s a n d v e s s e ls . A ll w a re h o u s e r e c e ip ts a n d
b ills o f la d in g a r e m a d e n e g o tia b le b y w r i t t e n e n d o r s e m e n t a n d
d e liv e r in g t h e s a m e a s b ills o f e x c h a n g e a n d p r o m is s o r y n o te s , a n d n o
p r in t e d o r w r itt e n c o n d itio n s , c la u s e s , o r p ro v is io n s in s e r te d in o r
a t t a c h e d t o t h e m s h a ll in a n y w a y li m it t h e i r n e g o t ia b i lit y o r im p a ir
t h e r ig h t s a n d d u ti e s o f t h e p a r t ie s t h e r e to , o r p e r s o n s in t e r e s te d
t h e r e in , o r s u c h c o n d itio n s s h a ll b e v o id . W a re h o u s e r e c e ip ts g iv e n
b y a n y w a re h o u s e m a n o r o t h e r p e r s o n f o r g o o d s a n d o t h e r c o m ­
m o d itie s d e p o s ite d , a n d a ll b ills o f la d in g g iv e n b y a n y c a r r ie r , b o a t ,
v e s s e l, r a i lr o a d , tr a n s p o r t a t i o n , o r t r a n s f e r c o m p a n y m a y b e t r a n s ­
f e r r e d b y e n d o r s e m e n t a n d d e liv e r y ; a n d t h e tr a n s f e r e e s h a ll b e
d e e m e d t o b e t h e o w n e r o f s u c h c o m m o d itie s so f a r a s t o g iv e v a l id it y
t o a n y p le d g e , lie n , o r t r a n s f e r g iv e n , m a d e , o r c r e a te d th e r e b y ; a n d
n o p r o p e r t y so s to r e d o r d e p o s ite d s h a ll b e d e liv e r e d e x c e p t o n s u r ­
r e n d e r a n d c a n c e lla tio n o f s u c h re c e ip ts a n d b ills o f la d in g , u n le s s
s u c h r e c e ip ts a n d b ills o f l a d in g h a v e t h e w o rd s “ n o t n e g o tia b le ”
p la in ly w r i t t e n o r s ta m p e d o n t h e i r fa c e . A c a r r i e r m a y h o w e v e r
d e l iv e r t o s h ip p e r o r c o n s ig n e e g o o d s w ith o u t p r e s e n t a tio n o f b ill of
l a d in g u p o n re c e iv in g fr o m s u c h s h ip p e r o r c o n s ig n e e b o n d in d o u b le
t h e v a l u e o f t h e g o o d s c o n d itio n e d f o r d e liv e r y t o t h e c a r r i e r t h e r e ­
a f t e r t h e o r ig in a l b ill o f la d in g (a c ts 1 9 0 7 ). P e n a l tie s a r e d e n o u n c e d
a g a in s t a n y w a r e h o u s e m a n o r o t h e r p e r s o n w h o s h a ll v io la te a n y o f
t h e p ro v is io n s o f t h i s s t a t u t e . S o m u c h o f t h e a c t a s f o r b id s t h e
d e l iv e r y o f p r o p e r t y e x c e p t t h e s u r r e n d e r a n d c a n c e lla tio n o f t h e
o r ig in a l r e c e ip t o r b ill o f la d in g s h a ll n o t a p p l y t o p r o p e r t y r e p le v in e d
o r r e m o v e d b y o p e r a t io n o f la w .
W i l l s . A w ill m u s t b e s u b s c rib e d b y t h e t e s t a t o r o r b y s o m e p e r s o n
f o r h im a t h is r e q u e s t i n t h e p re s e n c e o f tw o a t t e s t i n g w itn e s s e s , o r h e
m u s t a c k n o w le d g e i t t o b e h is w ill t o e a c h o f th e m . H e m u s t d e c la r e
a t t h e ti m e o f h is s u b s c r ip tio n o r a c k n o w le d g m e n t t o t h e w itn e s s e s
t h a t t h e i n s t r u m e n t is h is w ill a n d t e s t a m e n t . T h e w itn e s s e s m u s t
s ig n t h e i r n a m e s a t t h e e n d o f t h e w ill a s w itn e s s e s a t t h e r e q u e s t o f
t h e t e s t a t o r . I f, h o w e v e r, t h e e n t ir e w ill is in t h e h a n d - w r it in g o f t h e
t e s t a t o r , i t n e e d n o t b e a t t e s t e d , b u t m a y b e p r o v e d b y t h r e e w itn e s s e s
f a m ilia r w ith t h e h a n d - w r it in g . S u c h w ill, h o w e v e r , c a n n o t b e
p le a d e d in b a r o f a n a t t e s t e d w ill. W ills a r e re v o k e d b y m a r r ia g e a n d
b i r t h o f Issu e , u n le s s p ro v is io n f o r s u c h is s u e is m a d e b y s e tt le m e n t,
o r is p r o v id e d f o r in t h e w ill. T h e w ill o f a n u n m a r r ie d w o m a n is
r e v o k e d b y h e r m a r r ia g e . A f te r b o m c h ild re n , n o t m e n tio n e d in t h e
w ill, t a k e t h e i r r e g u l a r d is t r i b u t i v e s h a r e . I f t h e t e s t a t o r fa ils to
m e n tio n in h is w ill a n y c h ild , o r I ts le g a l r e p r e s e n t a ti v e s , liv in g a t t h e
ti m e o f e x e c u tin g t h e w ill, h e s h a ll, a s t o s u c h c h ild , o r it s r e p r e s e n t­
a t iv e s , b e d e e m e d t o h a v e d ie d i n t e s t a t e , a n d s u c h c h ild , o r it s r e p ­
r e s e n t a tiv e s , is e n t itl e d to i t s r e g u l a r s h a re .

I

S Y N O P S IS OF

THE LAW S OF CALIFORNIA
R E L A T IN G TO

B A N K I N G A N D C O M M E R C IA L U S A G E S .
P r e p a r e d a n d R e v is e d b y M e s s r s . V e c k i & W y t h e
A tto r n e y s a n d C o u n s e lo rs a t L a w , S a n F ra n c is c o .
(S ee C a rd in A tto r n e y s ’ L is t.)
A c c o u n t s . A n a c c o u n t is a s s ig n a b le , a n d t h e a s s ig n e e m a y m a in ­
t a i n a n a c tio n th e r e o n , a l th o u g h t h e a c c o u n t is a s s ig n e d m e r e ly f o r
c o lle c tio n . A n a c tio n t o re c o v e r a b a la n c e d u e u p o n a m u t u a l c u r r e n t
a n d o p e n a c c o u n t o r u p o n a n o p e n b o o k a c c o u n t Is b a r r e d w ith in f o u r
y e a rs . T h e c a u s e o f a c t i o n o n a m u t u a l a c c o u n t is d e e m e d t o h a v e
a c c r u e d fr o m t h e d a t e o f t h e l a s t Ite m . I n t h e c a s e o f a n o p e n b o o k
a c c o u n t, e a c h it e m b e c o m e s o u tla w e d f o u r y e a rs a f t e r i t s d a t e .
(S ee
A c tio n s a n d L im ita tio n s .)
A c k n o w l e d g m e n t s . B e fo re a n i n s t r u m e n t c a n b e r e c o r d e d , it s
e x e c u tio n m u s t b e a c k n o w le d g e d b y t h e p e rs o n e x e c u tin g i t , o r if
e x e c u te d b y a c o r p o r a tio n , b y i t s p r e s id e n t o r s e c r e ta r y , o r o t h e r
p e r s o n e x e c u tin g t h e s a m e o n b e h a lf of t h e c o r p o r a tio n , o r p r o v e d b y a
s u b s c r ib in g w itn e s s , o r b y ju d g m e n t in a n a c tio n b r o u g h t f o r t h e
p u r p o s e . T h e p ro o f o r a c k n o w le d g m e n t o f a n in s t r u m e n t m a y b e
m a d e a t a n y p la c e w ith in t h e S t a t e b e fo re a j u s ti c e o r c le r k o f t h e
s u p r e m e c o u r t, a n d w ith in t h e c ity , c o u n ty , o r to w n s h ip f o r w h ic h
t h e officer w a s a p p o i n te d o r e le c te d , b e fo re e i th e r : (1) A c le r k o f a
c o u r t o f r e c o r d ; (2.) a c o u n t y re c o r d e r ; (3) a c o u r t c o m m is s io n e r;
(4) a n o t a r y p u b lic ; (5) a ju s ti c e o f t h e p e a c e . T h e a c k n o w le d g ­
m e n t o f a n i n s tr u m e n t m u s t n o t b e ta k e n , u n le s s t h e o fficer ta k in g i t
k n o w s o r h a s s a ti s f a c to r y e v id e n c e , o n t h e o a t h o r a f f irm a tio n o f a
c r e d ib le w itn e s s t h a t t h e p e r s o n m a k in g s u c h a c k n o w le d g m e n t is t h e
in d i v id u a l w h o is d e s c rib e d in , a n d w h o e x e c u te d t h e i n s tr u m e n t;


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

o r i f e x e c u te d b y a c o r p o r a tio n , t h a t t h e p e r s o n m a k in g s u c h a c k n o w l­
e d g m e n t is t h e p r e s id e n t o r s e c r e t a r y o f s u c h c o r p o r a tio n , o r o t h e r
p e r s o n w h o e x e c u te d i t o n i t s b e h a lf . O fficers ta k i n g a n d c e r tif y in g
a c k n o w le d g m e n ts o r p r o o f o f in s tr u m e n ts f o r re c o r d , m u s t a u t h e n t i ­
c a te t h e ir c e rtif ic a te s b y affix in g t h e r e to t h e ir s ig n a tu r e s , a lso t h e i r
s e a ls o f office, i f b y t h e la w s o f t h e S t a t e o r c o u n t r y w h e re t h e a c ­
k n o w le d g m e n t o r p r o o f is ta k e n , o r b y a u t h o r i t y o f w h ic h th e y a r e
a c tin g , t h e y a r e r e q u ir e d t o h a v e o fficial se a ls. A c k n o w le d g m e n ts
t a k e n o u t o f th i s S t a t e t o b e u s e d w ith in t h is S t a t e m a y b e t a k e n
b e f o r e a n o t a r y p u b lic , a c o m m is s io n e r a p p o i n te d b y t h e g o v e r n o r
o f t h i s S ta t e , a ju d g e , o r c le r k o f a c o u r t o f r e c o r d , o r in fo re ig n
c o u n tr ie s a m in is te r , c o n s u l, v ic e -c o n s u l, o r c o n s u la r a g e n t o f t h e
U n ite d S ta te s , o r a ju d g e o f a c o u r t o f r e c o r d o r a n o t a r y p u b lic .
A c t i o n s . A ll c iv il a c tio n s a r e c o m m e n c e d b y filin g a c o m p la in t,
u p o n w h ic h p la in tif f m a y , a t a n y ti m e w ith i n o n e y e a r t h e r e a f te r , h a v e
a s u m m o n s is s u e d . T h e r e is b u t o n e f o r m o f a c tio n a n d t h e o n ly
p le a d in g s a llo w e d o n t h e p a r t o f t h e p la in tif f a r e : 1. T h e c o m p la in t.
2 . T h e d e m u r r e r t o t h e a n s w e r. 3 . T h e d e m u r r e r t o t h e c ro s s ­
c o m p la in t. 4 . T h e a n s w e r t o t h e c ro s s - c o m p la in t, a n d o n t h e p a r t
o f t h e d e f e n d a n t: 1. T h e d e m u r r e r t o t h e c o m p la in t. 2 . T h e
a n s w e r. 3. T h e c r o s s - c o m p la in t. 4 . T h e d e m u r r e r t o t h e a n s w e r
t o t h e c ro s s - c o m p la in t.
A d m i n i s t r a t i o n o f E s t a t e s . U p o n t h e a d m is s io n o f a w ill t o
p r o b a t e , le t t e r s t e s t a m e n t a r y a r e g r a n t e d b y t h e s u p e r io r c o u r t t o t h e
e x e c u to r n a m e d in t h e w ill, u n le s s h e b e d e a d o r in c a p a b le o r u n w illin g
t o a c t , in w h ic h c a s e le t t e r s t e s t a m e n t a r y a r e is s u e d t o a n a d m in is ­
t r a t o r w ith t h e w ill a n n e x e d , a p p o i n te d b y s a id c o u r t . I n c a s e o f
in t e s ta c y , l e t t e r s o f a d m in is tr a tio n a r e is s u e d t o t h e b o n a fid e re s i­
d e n t o f t h e s t a t e e n t itl e d th e r e to , in t h e fo llo w in g o r d e r : 1. R e la tiv e s
o f w h o le b lo o d e n t itl e d t o a d m in s te r in p r e f e r e n c e t o th o s e o f h a lf
b lo o d . S u r v iv in g h u s b a n d o r w ife, o r s o m e c o m p e te n t p e r s o n n a m e d
b y e i th e r . 2 . C h ild r e n . 3 . F a t h e r o r m o th e r . 4 . B r o tlie r s . 5. S is­
te r s . 6 . G r a n d c h ild r e n . 7. N e x t o f k in e n t itl e d t o s h a r e in t h e d is ­
tr i b u t i o n o f t h e e s ta te . 8 . P u b lic a d m in is tr a to r . 9. C r e d ito r s .
1 0 . A n y p e r s o n le g a lly c o m p e te n t. W h e re t h e p e r s o n e n t itl e d t o
a d m in is tr a tio n is a m i n o r o r in c o m p e te n t, l e t t e r s m u s t b e g r a n t e d to
h is o r h e r g u a r d i a n , o r t o a n y o t h e r p e r s o n e n t i t l e d t o l e t t e r s o f
a d m in is tr a tio n in t h e d is c r e tio n o f t h e c o u r t . B o n d s f o r f a i th f u l
p e r f o r m a n c e o f d u t y a r e r e q u ir e d o f a n a d m i n i s t r a t o r a n d o f a n
e x e c u to r u n le s s w a iv e d b y t h e w ill. N o tic e m u s t b e g iv e n b y t h e
a d m i n i s t r a t o r o r e x e c u to r b y p u b lic a tio n t o a ll t h e c r e d ito r s t o c o m e
In a n d p r o v e t h e i r c la im s w ith i n t e n m o n t h s a f t e r i t s f ir s t p u b li c a t io n ,
w h e n t h e e s t a t e e x c e e d s in v a lu e t h e s u m o f te n t h o u s a n d d o lla r s ,
a n d f o u r m o n t h s w h e n i t d o e s n o t. 11. C la im s a r is in g o n c o n t r a c t
w h e th e r d u e o r n o t d u e o r c o n tin g e n t, a n d f u n e r a l e x p e n se s m u s t b e
p r e s e n t e d w ith i n ti m e p r e s c r ib e d b y n o ti c e t o c r e d ito r s , o th e r w is e
t h e y a r e f o r e v e r b a r r e d , u n le s s i t a p p e a r s b y a f f id a v it o f t h e c r e d ito r s
t h a t s u c h c r e d i to r w a s o u ts id e o f t h e S t a t e a n d c o n s e q u e n tly d id
n o t r e c e iv e n o tic e . U n le s s c la im is a p p r o v e d w ith i n t h e t i m e p r o ­
v id e d f o r in t h e n o tic e i t is b a r r e d , u n le s s t h e c l a im a n t c a n p r o v e
t o t h e s a ti s f a c ti o n o f t h e c o u r t t h a t h e h a d n o n o tic e b y r e a s o n o f
b e in g o u t o f t h e S ta te , in w h ic h c a s e t h e c la im m a y b e p r e s e n te d
a t a n y ti m e b e f o r e a d e c re e o f d is tr i b u tio n is e n te r e d . W h e n a c la im
is r e j e c te d e i th e r b y t h e e x e c u to r o r a d m in is tr a to r o r t h e ju d g e ,
t h e h o ld e r m u s t b r in g s u i t in t h e a p p r o p r i a t e c o u r t th e r e o n w ith i n
th r e e m o n t h s a f t e r t h e d a t e o f I ts r e je c tio n , if i t b e t h e n d u e , o r w ith in
tw o m o n t h s a f t e r I t b e c o m e s d u e , o th e r w is e t h e c la im Is f o r e v e r
b a r r e d . N o c la im c a n b e a llo w e d w h ic h Is b a r r e d b y t h e S t a t u t e of
L im it a ti o n s . C la im s a g a in s t t h e e s t a t e a r e p a i d in th e fo llo w in g
o r d e r : 1 . F u n e r a l e x p e n s e s . 2. T h e e x p e n s e s o f t h e l a s t s ic k n e s s .
3 . D e b ts h a v i n g p re f e r e n c e b y t h e la w s o f t h e U n ite d S t a t e s . 4 .
J u d g m e n t r e n d e r e d a g a in s t t h e d e c e d e n t in h is lif e tim e , a n d m o r t­
g a g e s a n d o th e r lie n s in t h e o r d e r o f t h e ir d a t e ; a n d 5 , a ll o th e r d e ­
m a n d s a g a in s t t h e e s ta te .
A f f i d a v i t s . A n a f f id a v it t o b e u s e d b e fo re a n y c o u r t, ju d g e , o r
o ffic er o f t h i s S t a t e m a y b e t a k e n b e f o r e a n y o ffic er a u t h o r iz e d t o
a d m in is te r o a th s . I n th i s S t a t e e v e r y c o u r t , e v e r y ju d g e o r c le r k o f
a n y c o u r t, e v e r y ju s tic e a n d e v e r y n o t a r y p u b lic , a n d e v e r y o ffic er o r
p e r s o n a u t h o r iz e d to t a k e te s t im o n y in a n y a c tio n o r p ro c e e d in g , o r
d e c id e u p o n e v id e n c e , h a s p o w e r t o a d m in is te r o a t h s a n d a f f irm a tio n s .
A n a f f id a v it t a k e n in a n o t h e r S t a t e o f t h e U n ite d S ta t e s t o b e u s e d
in th i s S ta t e , m a y b e t a k e n b e fo re a c o m m is s io n e r a p p o i n te d b y t h e
o v e m o r o f th i s S t a t e to t a k e a f f id a v its a n d d e p o s itio n s in s u c h o th e r
t a t e , o r b e fo re a n y n o t a r y p u b lic in a n o t h e r S ta t e , o r b e fo re a n y
ju d g e o r c le r k o f a c o u r t o f r e c o r d h a v in g a s e a l. A n a f f id a v it t a k e n
in a fo re ig n c o u n t r y t o b e u s e d in th i s S ta te , m a y b e t a k e n b e f o r e a n
a m b a s s a d o r, m in is te r , c o n s u l, v ic e -c o n s u l, o r c o n s u la r a g e n t o f t h e
U n ite d S ta te s , o r b e fo re a n y ju d g e o f a c o u r t o f r e c o r d h a v i n g a s e a l,
in s u c h f o re ig n c o u n tr y .
A lie n s .
1. A ll a lie n s e lig ib le t o c itiz e n s h ip m a y ta k e , h o ld a n d
d is p o s e o f p r o p e r t y , r e a l a n d p e r s o n a l, w ith in th i s S ta te .
2 . A ll a lie n s n o t e lig ib le t o c itiz e n s h ip m a y a c q u ir e a n d p o s se ss la n d
in a c c o r d a n c e w ith t h e te r m s o f a n y e x is tin g t r e a t y w ith a n y fo re ig n
c o u n t r y o f w h ic h s u c h a lie n is a c itiz e n , a n d n o t o th e r w is e , a n d in
a d d i tio n m a y le a s e l a n d f o r a g r i c u lt u r a l p u r p o s e s f o r th r e e y e a rs .
3. A n y co x h p a n y , a s s o c ia tio n o r c o r p o r a tio n c o m p o se d in t h e m a in
o f a lie n s m a y a c q u ir e a n d p o s se ss la n d in a c c o r d a n c e w ith t h e te r m s
o f a n y e x is tin g t r e a t y w ith a n y f o r e ig n c o u n t r y o f w h ic h t h e y a r e
c itiz e n s , a n d n o t o th e rw is e , a n d in a d d i tio n m a y le a s e la n d f o r a g r i­
c u l tu r a l p u r p o s e s f o r t h r e e y e a rs .
4 . W h e n i t a p p e a r s i n a n y p r o b a t e p r o c e e d in g s w h e re in ' a n y a lie n
is a n h e i r t h a t h e c o u ld t a k e r e a l p r o p e r t y e x c e p t f o r ,th e p r o v is io n o f
th i s a c t, t h e p r o b a t e c o u r t s h a ll o r d e r t h e s a le o f s u c h r e a l p r o p e r t y
a n d d is tr i b u te t h e p r o c e e d s t o s u c h a lie n .
5 . F o r a n y v io la tio n o f th i s a c t t h e a t to r n e y - g e n e r a l s h a ll i n s t i t u t e
f o r f e itu r e p ro c e e d in g s a n d u p o n fin a l j u d g m e n t t h e la n d s s h a ll e s c h e a t
t o t h e S ta te .
6. W h e n i t a p p e a r s t h a t a n y a lie n o r a lie n s a r e h o ld in g a n y le a s e ­
h o ld in t e r e s ts in v io la tio n o f t h e a b o v e p ro v is io n s t h e a t to r n e y - g e n e r a l
s h a ll lik e w is e i n s t i t u t e f o r f e itu r e p ro c e e d in g s , a n d s u c h le a s e h o ld
in t e r e s t o r i t s m o n e ta r y v a lu e t o g e th e r w ith t h e c o s ts o f s u c h f o r f e itu r e
p r o c e e d in g s s h a ll e s c h e a t t o t h e S ta te .
N o n o n - r e s id e n t a lie n c a n t a k e b y s u c c e s s io n u n le s s h e a p p e a r
a n d c la im w ith in 5 y e a rs a f t e r d e a t h o f d e c e d e n t.
A r b i t r a t i o n . T h e s u b m is s io n t o a r b i t r a t i o n m u s t b e In w r itin g ,
a n d i t m a y s tip u l a te t h a t i t b e e n t e r e d a s a n o r d e r o f t h e s u p e r io r
c o u r t , f o r w h ic h p u r p o s e i t m u s t b e filed b y t h e c le rk . I f th e s u b ­
m is s io n is n o t m a d e a n o r d e r o f t h e c o u r t , i t m a y b e r e v o k e d a t a n y
t i m e b e f o r e t h e a w a r d . A ll t h e a r b i t r a t o r s m u s t a c t, b u t a m a jo r it y
g o v e r n s . T h e ir a w a r d m u s t b e in w r itin g , s ig n e d b y a m a j o r i t y o f
th e m , a n d d e liv e r e d t o th e p a r tie s , a n d w h e n th e s u b m is s io n is m a d e
b y a n o r d e r o f t h e c o u r t, m u s t b e file d b y t h e c le r k w h o e n t e r s t h e
s a m e , a f t e r t h e e x p i r a ti o n o f fiv e d a y s , in t h e ju d g m e n t b o o k , a n d
th e r e u p o n i t h a s t h e e ffe c t o f a ju d g m e n t. T i tle to r e a l p r o p e r t y
c a n n o t b e a r b i t r a t e d . U p o n a p p lic a tio n a S t a t e B o a r d o f A r b i t r a ­
ti o n h a s ju r is d ic tio n o v e r d is p u te s b e tw e e n e m p lo y e r a n d e m p lo y e e .
A r r e s t . I n a n a c tio n f o r t h e r e c o v e r y o f m o n e y u p o n a c o n t r a c t,
e x p r e s s o r Im p lie d , t h e d e f e n d a n t m a y b e a r r e s te d if a b o u t to d e p a r t
f r o m t h e S t a t e w ith i n t e n t t o d e f r a u d h is c r e d ito r s , u p o n o r d e r o f
c o u r t b a s e d u p o n a f f id a v it th e r e f o r , a lso In a n a c tio n f o r m o n e y o r
o t h e r p r o p e r t y e m b e z z le d o r f r a u d u l e n tly m is a p p lie d b y a p u b lic
o ffic er, o ffic er o f a c o r p o r a tio n , o r a n a t t o r n e y , f a c to r , b r o k e r , a g e n t,
o r c le r k in t h e c o u r s e o f h is e m p lo y m e n t, o r b y a n y p e r s o n in a fid u ­
c i a r y c a p a c it y ; a lso in a c tio n s t o r e c o v e r t h e p o s se ss io n o f p e rs o n a l
p r o p e r t y w h e r e i t h a s b e e n c o n c e a le d o r r e m o v e d o r d is p o s e d o f to

f

B A N K I N G A N D C O M M E R C IA L L A W S — C A L IF O R N IA
p r e v e n t I ts b e in g f o u n d ; a ls o in c a s e s w h e re t h e d e f e n d a n t h a s b e e n
g u il ty o f a f r a u d in c o n t r a c ti n g t h e d e b t o r o b lig a tio n f o r w h ic h a c tio n
is b r o u g h t; o r in c o n c e a lin g o r d is p o s in g o f p r o p e r t y ; a ls o w h e n t h e
d e f e n d a n t h a s r e m o v e d o r d is p o s e d o f h is p r o p e r t y o r is a b o u t t o d o
s o w ith i n t e n t t o d e f r a u d c r e d ito rs . B a il g iv e n u p o n a r r e s t is lia b le
u p o n ju d g m e n ts s e c u re d .
. „
. .
A s s i g n m e n t s f o r t h e B e n e f i t o f C r e d i t o r s . A s s ig n m e n ts f o r
t h e b e n e fit o f c r e d ito r s m u s t b e w r itt e n a n d a c k n o w le d g e d b y th e
a s s ig n o r o r h is a g e n t a u t h o r iz e d t h e r e to in w r iti n g a n d re c o rd e d , a n d
m u s t b e m a d e t o t h e sh e riff o f t h e c o u n t y w h e re t h e in s o lv e n t re s id e s ,
o r , if a n o n - r e s id e n t, w h e re h e h a s p r o p e r t y . A s s ig n m e n ts f o r t h e
b e n e fit o f c r e d ito r s a r e v o id a g a in s t a n y c r e d i to r n o t a s s e n tin g t h e r e to
in a n u m b e r o f in s ta n c e s ; f o r e x a m p le , w h e re t h e y g iv e o n e d e b t a
p r e f e r e n c e o v e r a n o t h e r , a n d w h e re t h e y t e n d t o c o e rc e a n y c r e d i to r to
r e le a s e o r c o m p ro m is e h is d e m a n d . A s s ig n m e n ts m u s t c o n t a in n a m e s
o f c r e d ito r s a n d t h e a m o u n ts .
..
..
.
__
A t t a c h m e n t s m a y b e is s u e d a t t h e ti m e o f o r a n y ti m e a f t e r
W aning t h e s u m m o n s w h e re a m o u n t s u e d f o r e x c e e d s $ 1 0 .0 0 . A ll
p r o p e r t y n o t e x e m p t f r o m e x e c u tio n m a y b e a t ta c h e d . A n a t t a c h ­
m e n t lie n u p o n r e a l p r o p e r t y c o n tin u e s f o r t h r e e y e a rs a n d m a y b e
e x t e n d e d f o r tw o y e a rs m o re . T h e c le r k o f t h e c o u r t m u s t is s u e
t h e w r it o f a t t a c h m e n t u p o n re c e iv in g a n a ffid a v it b y o r o n b e h a lf
o f t h e p la in tif f sh o w in g , (1) T h a t t h e d e f e n d a n t is in d e b te d t o t h e
p la in tif f, s p e c ify in g t h e a m o u n t o f s u c h in d e b te d n e s s o v e r a n d a b o v e
a l l le g a l s e t-o ffs o r c o u n te r-c la im s , u p o n a c o n t r a c t, e x p re s s o r im p lie d ,
f o r t h e d ir e c t p a y m e n t o f m o n e y , a n d t h a t s u c h c o n t r a c t w a s m a d e
o r is p a y a b le in th i s s t a t e , a n d t h a t t h e p a y m e n t o f t h e s a m e h a s
n o t b e e n s e c u re d b y a n y m o r tg a g e o r lie n u p o n r e a l o r p e rs o n a l p r o p ­
e r t y , o r a n y p le d g e o f p e r s o n a l p r o p e r t y , o r, if o rig in a lly s o s e c u re d ,
t h a t s u c h s e c u r i ty h a s , w ith o u t a n y a c t o f p la in tiff, o r t h e p e rs o n
t o w h o m t h e s e c u r ity w a s g iv e n , b e c o m e v a lu e le s s ; o r (2) T h a t t h e
d e f e n d a n t is a n o n - r e s id e n t o f t h e S ta t e , a n d is in d e b te d t o p la in tiff,
s p e c if y in g t h e a m o u n t o f s u c h in d e b te d n e s s o v e r a n d a b o v e a ll le g a l
s e t- o f f s o r c o u n te r-c la im s , u p o n a c o n t r a c t e x p re s s e d o r im p lie d ;
o r (3) T h a t p la in tif f ’s c a u s e o f a c tio n a g a in s t d e f e n d a n t is o n e t o
r e c o v e r a s u m o f m o n e y a s d a m a g e s y(s p e c ify in g t h e a m o u n t th e re o f )
a r is in g f r o m a n in j u r y t o p r o p e r t y in th i s S t a t e m c o n s e q u e n c e o r
t h e n e g lig e n c e , f r a u d o r o th e r w ro n g fu l a c t o f t h e d e f e n d a n t, a n d
t h a t t h e d e f e n d a n t is a n o n - r e s id e n t o f t h e S ta t e ; a n d (4) T h a t
t h e a t t a c h m e n t is n o t s o u g h t, n o r, is t h e a c tio n p ro s e c u te d , t o h in d e r ,
d e la y , o r d e f r a u d a n y c r e d ito r o f d e f e n d a n t.
B e fo re is s u in g t h e w r it,
t h e c le rk m u s t r e q u ir e a w r itt e n u n d e r t a k in g o n t h e p a r t o f t h e p la in ­
tiff, in a s u m n o t le ss t h a n $ 2 0 0 , o r in J u s tic e s C o u r t o f fr o m $ 5 0 .0 0
t o $ 3 0 0 , a n d n o t e x c e e d in g t h e a m o u n t c la im e d b y p la in tiff, w ith
s u ffic ie n t s u re tie s , t o t h e e ffe c t t h a t , i f t h e d e f e n d a n t r e c o v e rs ju d g m e n t,
t h e p la in tif f w ill p a y a ll c o s ts t h a t m a y b e a w a r d e d t o t h e d e f e n d a n t,
• a n d a ll d a m a g e s t h a t h e m a y s u s t a i n b y re a s o n o f t h e a t t a c h m e n t ,
n o t e x c e e d in g th.6 s u m s p e c ifie d in t l ie u n d e r t a k in g , a n d t n a t i f t n e
a t t a c h m e n t is d is c h a r g e d o n t h e g r o u n d t h a t t h e p la in tif f w a s n o t
e n t itl e d th e r e to , t h e f a c t s r e q u i r e d in t h e a b o v e n o t b e in g e x is te n t,
t h e p la in tif f w ill p a y a ll d a m a g e s w h ic h t h e d e f e n d a n t m a y h a v e
s u s ta in e d , b y re a s o n o f t h e a t t a c h m e n t , n o t e x c e e d in g t h e s u m s p e c i­
fie d in t h e u n d e r t a k in g .
.
,
. ,,
B a n k s , S a v i n g s . A s a v in g s b a n k m a y p u r c h a s e o r h o ld (1)
R e a l E s t a t e , f u r n it u r e , fix tu re s , e tc ., in w h ic h i t s b u s m e s s m a y b e
c o n d u c te d . (2) P r o p e r ty m o r tg a g e d o r h e ld in t r u s t o n a c c o u n t o f
a n y m o n e y l e n t in t h e c o u rs e o f b u s in e s s . I t s h a ll n o t p u r c h a s e
p e r s o n a l p r o p e r t y e x c e p t (1) b o n d s o r in t e r e s t b e a rin g o b lig a tio n s
o f t h e U n ite d S ta t e s (2) b o n d s o f t h e S ta te . (3) B o n d s o f a n y s t a t e
w h ic h h a s n o t d e f a u l te d in p a y m e n t o f e i th e r p rin c ip a l o r i n t e r e s t
w ith in fiv e y e a rs . (4) B o n d s o f a n y c o u n ty , c i ty o r to w n o r s c h o o l,
r o a d , se w e r, d r a in a g e , r e c la m a tio n , p r o te c ti v e o r s a n i t a r y d is tr i c t,
o r g a n iz e d u n d e r t h e la w s o f t h e s t a t e , t o lim ite d a m o u n t. (5) B o n d s
o f a n y c o u n ty , c i t y o r to w n o f a n y s t a t e o f a p o p u la tio n o f m o re t h a n
200,000 a n d a n e n t ir e b o n d e d in d e b te d n e s s le ss t h a n fifte e n p e r c e n t
o f t h e ta x a b le p r o p e r t y , w h e re in t e r e s t o r p r in c ip a l h a s n o t b e e n
d e f a u l te d w ith in fiv e y e a rs .
(6) B o n d s o f r a ilr o a d s o rg a n iz e d in d e r
t h e s t a t e a n d o p e r a t in g e x c lu s iv e ly th e r e in o r o f r a ilr o a d s o p e r a tin g
a t le a s t 500 m ile s o f s t a n d a r d g a u g e t r a c t , o r o f a n y r a i lr o a d c o r­
p o r a tio n p a y m e n t o f w h ic h h a s b e e n g u a r a n te e d , b y t h e p re c e d in g
c la u s e s o f r a ilr o a d s ; p r o v id e d , t h a t in a ll c a se s t h e n e t e a rn m g s a r e
a s r e q u ir e d b y s t a t u t e .
(7) B o n d s o f P u b lic U t i l i t y c o r p o ra tio n s ,
in c o r p o r a te d u n d e r t h e la w s o f t h e S t a t e o f C a lifo rn ia , p r o v id e d t h e
p r o p e r tie s a n d e a rn in g s , e tc ., a r e a s r e q u i r e d b y s t a t u t e .
(8) N o te s
o r b o n d s s e c u re d b y f irs t lie n o n r e a l e s t a t e t o s ix ty p e r c e n t o f it s
m a r k e t v a lu e . (9) C o lla té r a l t r u s t b o n d s o r n o te s s e c u r e d b y d e ­
p o s it o f a u th o r iz e d b o n d s fifte e n p e r c e n t in ex c ess o f s u c h c o lla te r a l
b o n d s o r t h e d e p o s it o f s u c h b o n d s a n d o th e r s e c u ritie s t w e n t y p e r
c e n t in ex c ess o f s u c h c o lla te r a l b o n d s , p ro v id e d t h e m a r k e t v a lu e
o f t h e a u th o r iz e d b o n d s d e p o s ite d e q u a l s u c h c o lla te r a l b o n d s . (10)
B o n d s a c c e p te d b y s a v in g s b a n k s u n d e r t h e la w s o f N e w Y o rk o r
M a s s a c h u s e tts . (11) C e rtific a te s is s u e d b y c o r p o r a tio n s w ith a
p a i d u p c a p ita l s to c k o f n o t le ss t h a n $ 1 0 0 ,0 0 0 , s e c u re d u p o n r e a l
e s t a t e a n d g u a r a n t e e d i n t h e m a n n e r r e q u i r e d b y t h e B a n k A c t.
N o s a v in g s b a n k m u s t lo a n m o n e y e x c e p t o n a d e q u a te s e c u r i ty o n
r e a l o r p e rs o n a l p r o p e r t y a n d s u c h lo a n m u s t n o t b e fo r lo n g e r t h a n
t e n y e a rs . I t m u s t h a v e a p a i d u p c a p ita l s to c k g r a d u a t e d f r o m
$ 2 5 ,0 0 0 w h e n lo c a te d in a n y p la c e o f le ss t h a n 5 ,0 0 0 p o p u la tio n , t o
$ 3 0 0 ,0 0 0 w h e n t h e p o p u la tio n is in ex c ess o f 2 0 0 ,0 0 0 . S a v in g s
b a n k s o rg a n iz e d w ith o u t c a p ita l s to c k m u s t h a v e a r e s e r v e f u n d o f
$ 1 ,0 0 0 ,0 0 0 . T h e c a p ita l s to c k a n d s u r p lu s o f s a v in g s b a n k s , m u s t
e q u a l t e n p e r c e n t t o a n d in c lu d in g $ 2 ,0 0 0 ,0 0 0 d e p o s it lia b ilitie s ,
m u s t e x c eed s e v e n a n d o n e h a l f p e r c e n t o f d e p o s it lia b ilitie s f r o m
$ 2 ,0 0 0 ,0 0 0 t o $ 5 ,0 0 0 ,0 0 0 , fiv e p e r c e n t f r o m $ 5 ,0 0 0 ,0 0 0 t o $ 1 5 ,0 0 0 ,0 0 0 ,
tw o a n d o n e h a l f p e r c e n t fr o m $ 1 5 ,0 0 0 ,0 0 0 t o $ 4 0 ,0 0 0 ,0 0 0 , a n d o n e
p e r c e n t o f d e p o s it lia b ilitie s in ex c ess o f $ 4 0 ,0 0 0 ,0 0 0 . A s u r v iv in g
h u s b a n d o r w ife o r n e x t o f k in o f a n y d e c e a s e d p e rs o n m a y , w ith o u t
p r o c u rin g l e tte r s o f a d m in is tr a tio n , w ith d r a w a n y s u m d e c e a s e d
m a y h a v e h a d o n d e p o s it in a n y s a v in g s b a n k i f t h e s u m d o e s n o t
e x c e e d $500.00.
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B a n k s . T h e b u s in e s s o f b a n k in g m a y b e c a rr ie d o n o n ly b y
c o r p o r a tio n s o rg a n iz e d f o r t h a t p u r p o s e u n d e r t h e B a n k A c t. T h e
c a p ita l s to c k a n d s u r p lu s o f c o m m e rc ia l b a n k s m u s t ex c e e d t e n p e r
c e n t o f d e p o s it lia b ilitie s . S u c h c o r p o r a tio n s a r e cla ssifie d a s : C o m ­
m e rc ia l, S a v in g s o r T r u s t c o m p a n ie s , a n d , t o g e th e r w ith b u ild in g a n d
lo a n a s s o c ia tio n s , a r e c o n d u c te d u n d e r t h e s u p e rv is io n a n d in s p e c tio n
o f a S t a t e S u p e r in te n d e n t o f B a n k s , t o w h o m s u c h b a n k s m u s t s u b ­
m i t a t s ta t e d in t e r v a l s t o e x a m in a tio n . N o p e rs o n u n le s s o rg a n iz e d
a s a b a n k u n d e r t h e la w s o f t h i s s t a t e m a y h o ld h im s e lf o u t a s e n ­
g a g e d in t h e b a n k in g b u s in e s s , o r u s e t h e w o rd b a n k , s a v in g s o r
t r u s t c o m p a n y in c o n n e c tio n w ith h is b u s in e s s . E v e r y b a n k m a y
c o n d u c t a c o m m e rc ia l a n d s a v in g s d e p a r t m e n t , p r o v id e d i t s c a p ita l
s to c k , i f s itu a te d in a lo c a lity o f le ss t h a n 5 ,0 0 0 p o p u la tio n a m o u n ts
t o $ 2 5 ,0 0 0 , o r b o t h o r e i th e r d e p a r t m e n t s in c o n ju n c tio n w ith a
t r u s t d e p a r t m e n t i f t h e s a m e a m o u n ts t o $ 1 2 5 ,0 0 0 . I f t h e p o p u la tio n
o f a lo c a lity is fr o m 5 ,0 0 0 t o 2 5 ,0 0 0 a c a p ita l o f $ 5 0 ,0 0 0 is re q u ir e d
f o r a s a v in g s a n d c o m m e rc ia l d e p a r t m e n t a n d $ 1 5 0 ,0 0 0 fo r b o t h o r
e i th e r in c o n ju n c tio n w ith a t r u s t d e p a r t m e n t . I f t h e p o p u la tio n
is f r o m 2 5 ,0 0 0 t o 100,000 a c a p ita l o f $ 2 0 0 ,0 0 0 a n d $ 4 0 0 ,0 0 0 re s p e c ­
tiv e ly . is r e q u ir e d ; if t h e p o p u la tio n is o v e r 2 0 0 ,0 0 0 a c a p i t a l o f $ 3 0 0 ,
0 0 0 a n d $ 5 0 0 ,0 0 0 , re s p e c tiv e ly , is r e q u ir e d . E v e r y b a n k m u s t d e s ­
ig n a te t h e c h a r a c te r o f i t s b u s in e s s . A b a n k o rg a n iz e d u n d e r t h e
la w s o f a n o t h e r s t a t e m u s t c o m p ly w ith a ll t h e r e q u ir e m e n ts o f th e
S t a t e B a n k A c t, s e t a p a r t t o i t s b u s in e s s c o n d u c te d h e r e t h e s u r p lu s
p a i d u p s to c k r e q u ir e d o f C a lifo rn ia c o rp o ra tio n s , a n d c o n s ti tu te t h e
S t a t e S u p e r in te n d e n t o f B a n k s i t s a g e n t fo r s e rv ic e o f p ro c e s s . A
b a n k e r h a s a g e n e ra l lie n d e p e n d e n t u p o n p o s se ss io n o f a ll p r o p e r t y


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

1397

in h is h a n d s b e lo n g in g t o a c u s to m e r f o r t h e b a la n c e d u e t o h im
f r o m s u c h c u s to m e r in t h e c o u r s e o f b u s in e s s . T h e s a m e c a p ita l
s to c k is r e q u ir e d o f c o m m e r c ia l b a n k s a s o f s a v in g s b a n k s . (S ee
s a v in g s b a n k s .) W i th s o m e e x c e p tio n s n o c o m m e rc ia l b a n k c a n le n d
m o r e t h a n t e n p e r c e n t o f i t s c a p ita l s to c k o n u n s e c u r e d lo a n s o r
tw e n ty - f iv e p e r c e n t u p o n s e c u r i ty w o r t h 'a t le a s t f if te e n p e r c e n t
m o r e t h a n t h e lo a n so s e c u r e d , b u t a c o m m e r c ia l b a n k m a y b u y o r
d is c o u n t b ills o f la d in g o r e x c h a n g e d r a w n a g a in s t a c t u a l v a l u e o r
b u y a n d d is c o u n t c o m m e rc ia l p a p e r , n o t t o e x c e e d tw e n ty - f iv e p e r
c e n t o f i t s c a p ita l a n d s u r p lu s .
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B i l l s a n d N o t e s . N e g o tia b le I n s t r u m e n t s . A n e g o tia b le I n s tr u ­
m e n t is a w r itt e n p r o m is e o r r e q u e s t f o r t h e p a y m e n t o f a c e r t a in s u m
o f m o n e y t o o r d e r o r b e a r e r . I t m u s t b e m a d e p a y a b le in m o n e y
o n ly t o a p e r s o n a s c e r t a in a b le a t t h e ti m e t h e in s t r u m e n t Is m a d e , a n d
w ith o u t a n y c o n d itio n n o t c e r t a in o f f u lf illm e n t. I t m a y b e w ith o r
w ith o u t d a t e , a n d w ith o r w ith o u t t h e d e s ig n a tio n o f t h e ti m e o r p la c e
o f p a y m e n t. I t m a y c o n t a in a p le d g e o f c o lla te r a l s e c u r ity , w ith
a u t h o r i t y t o d is p o s e th e r e o f . B ills o f e x c h a n g e , p r o m is s o r y n o te s ,
b a n k n o te s , c h e c k s, b o n d s , a n d c e rtif ic a te s o f d e p o s it, a lso w a r e ­
h o u s e r e c e ip ts w h e n so m a d e a r e n e g o tia b le in s tr u m e n ts . A n y
d a t e m a y b e in s e r te d b y t h e m a k e r o f a n e g o tia b le in s tr u m e n t,
w h e th e r p a s t, p r e s e n t, o r f u t u r e ; a n d t h e in s tr u m e n t is n o t in v a li­
d a t e d b y h id d e a t h o r in c a p a c i ty a t t h e ti m e o f t h e n o m in a l d a t e .
D a y s o f g r a c e a r e n o t a llo w e d . A c c e p ta n c e m u s t b e in w r itin g b y
t h e d r a w e e o r b y a n a c c e p to r f o r h o n o r , a n d m a y b e m a d e b y t h e
a c c e p to r w r itin g h is n a m e a c ro s s t h e f a c e o f t h e b ill w ith o r w ith o u t
o th e r w o rd s . T h e a c c e p ta n c e o f a b ill o f e x c h a n g e b y a s e p a r a t e
in s t r u m e n t b in d s t h e a c c e p to r t o o n e w h o , u p o n t h e f a i th th e r e o f ,
h a s t h e b ill f o r v a lu e o r o t h e r g o o d c o n s id e r a tio n . T h e h o ld e r o f a
b ill o f e x c h a n g e , if e n t itl e d t o a n a c c e p ta n c e th e r e o f , m a y t r e a t t h e
b ill a s d is h o n o r e d if t h e d r a w e e re fu s e s t o w r ite a c ro s s it s f a c e a n
u n q u a lif ie d a c c e p ta n c e .
A n u n c o n d itio n a l p r o m is e in w r iti n g to
a c c e p t a b ill o f e x c h a n g e is a s u ffic ie n t a c c e p ta n c e th e r e o f In f a v o r o f
e v e r y p e r s o n w h o , u p o n t h e f a i th th e r e o f , h a s t a k e n t h e b ill f o r v a lu e .
T h e p r o t e s t o f a n o ta r y , u n d e r h is h a n d a n d o ffic ial s e a l, is p r im a fa c ie
e v id e n c e o f t h e f a c t s c o n ta in e d th e r e in . A b ill o f e x c h a n g e , if a c c e p te d
w ith th e c o n s e n t o f t h e o w n e r b y a p e r s o n o t h e r t h a n t h e d r a w e e , o r
a n a c c e p to r f o r h o n o r , b e c o m e s , in e ffe c t, t h e p r o m is s o r y n o te o f s u c h
p e r s o n , a n d a ll p r io r p a r t ie s th e r e t o a r e e x o n e r a te d . I f a p r o m is s o r y
n o te , p a y a b le o n d e m a n d o r a t s ig h t, w ith o u t in t e r e s t, is n o t d u ly p r e ­
s e n te d f o r p a y m e n t w ith in s ix m o n t h s f r o m I ts d a t e , t h e In d o r s e r s
th e r e o f a r e e x o n e r a te d , u n le s s s u c h p r e s e n t a tio n Is e x c u s e d .
C h a t t e l M o r tg a g e s m a y be m a d e o n a n y p erso n a l p ro p e rty ,
In c lu d in g g ro w in g c r o p s a n d f r u i t , e x c e p t p e r s o n a l p r o p e r t y n o t c a p ­
a b le o f m a n u a l d e liv e r y , a r t ic l e s o f w e a r in g a p p a r e l a n d p e r s o n a l
a d o r n m e n t, a n d t h e s to c k In t r a d e o f a m e r c h a n t. I n t h e a b s e n c e o f
d e liv e r y a n d c o n t in u e d c h a n g e o f p o s se ss io n , t h e c h a t t e l m o r tg a g e
w ill b e v o id a s to c r e d ito r s o f t h e m o r t g a g o r u n le s s a c k n o w le d g e d o r
p r o v e d , c e rtif ie d , a n d r e c o r d e d , a s r e q u ir e d in c a se s o f g r a n t s o f r e a l
p r o p e r t y a n d a c c o m p a n ie d b y a f f id a v its o f a ll t h e p a r t ie s t h a t i t is
m a d e in g o o d f a i th , a n d w ith o u t a n y d e s ig n t o h in d e r , d e la y o r d e f r a u d
c re d ito r s . S u c h m o r tg a g e s m u s t b e re c o r d e d in c o u n t y i t is s i t u a t e d in
a n d if re m o v e d t o a n o t h e r c o u n t y a c o p y o f m o r tg a g e m u s t b e r e ­
c o r d e d in c o u n t y w ith in 3 0 d a y s o r m o r tg a g o r m u s t t a k e p o s se ss io n .
C o l l a t e r a l s . A r e g o v e r n e d b y t h e la w r e l a ti n g t o p le d g e s o f p e r ­
s o n a l p r o p e r t y . A p le d g e Is a d e p o s it o f p e r s o n a l p r o p e r t y b y w a y o f
s e c u r i ty f o r t h e p e r f o r m a n c e o f a n y a c t. D e liv e r y o f t h e th i n g
p le d g e d is e s s e n tia l to t h e v a l id it y o f t h e b a i lm e n t. W h e n t h e p e r ­
f o r m a n c e o f t h e a c t f o r w h ic h t h e p le d g e Is g iv e n Is d u e in w h o le o r
i n p a r t , t h e p le d g e e m a y c o lle c t w h a t is d u e t o h im b y t h e s a le o f t h e
p r o p e r t y p le d g e d . B u t b e f o r e t h e p r o p e r t y c a n b e s o ld t h e p le d g e e
m u s t d e m a n d p e r f o r m a n c e th e r e o f f r o m t h e d e b t o r , if h e c a n b e
f o u n d , a n d m u s t g iv e a c t u a l n o tic e t o th e p le d g o r o f t h e ti m e a n d
p la c e a t w h ic h t h e p r o p e r t y p le d g e d w ill b e s o ld , a t s u c h a r e a s o n a b le
ti m e b e f o r e t h e s a le a s w ill e n a b le t h e p le d g o r t o a t t e n d , b u t n o tic e
o f t h e s a le m a y b e w a iv e d b y t h e p le d g o r a t a n y ti m e . T h e s a le
m u s t b e b y p u b lic a u c tio n a n d m u s t b e f o r t h e h ig h e s t o b ta in a b l e
p ric e . A f te r t h e s a le t h e p le d g e e m a y d e d u c t f r o m t h e p r o c e e d s t h e
a m o u n t d u e a n d t h e n e c e s s a r y e x p e n s e s o f s a le a n d c o lle c tio n , a n d
m u s t p a y t h e s u r p lu s t o t h e p le d g o r . T h e p le d g e e , o r a p le d g e ­
h o ld e r , m a y p u r c h a s e t h e p r o p e r t y p le d g e d w h e n t h e s a m e is s o ld
a t p u b lic a u c tio n . A p le d g e e c a n n o t sell a n y e v id e n c e o f d e b t
(c o lla te r a l) p le d g e d t o h im , e x c e p t t h e o b lig a tio n s o f g o v e r n m e n ts ,
s ta t e s , o r c o r p o r a tio n s ; b u t h e m a y c o lle c t t h e s a m e w h e n d u e .
C o n t r a c t s . C e r t a in c o n t r a c ts a r e in v a lid u n le s s t h e s a m e o r
s o m e n o t e o r m e m o r a n d u m t h e r e o f i s in w r itin g .
(S ee S t a t u t e o f
F r a u d s .)
A c o n t r a c t f o r p e r s o n a l s e rv ic e s c a n n o t b e e n fo rc e d f o r
o v e r tw o y e a rs .
C o n v e y a n c e s . A n e s t a t e in r e a l p r o p e r t y , o t h e r t h a n a n e s t a t e a t
w ill, o r f o r a t e r m n o t e x c e e d in g o n e y e a r , c a n b e tr a n s f e r r e d o n ly b y
o p e r a t io n o f la w , o r b y a n in s t r u m e n t in w r itin g , s u b s c r ib e d b y t h e
p a r t y d is p o s in g o f t h e s a m e , o r b y h is a g e n t th e r e u n to a u t h o r iz e d in
w r itin g . L e a s e s o f a g r i c u lt u r a l l a n d f o r a lo n g e r p e r io d t h a n 10
y e a r s a n d o f c i ty p r o p e r t y f o r a lo n g e r p e r io d t h a n 5 0 y e a r s a r e v o id .
A fe e s im p le t i t l e is p r e s u m e d t o b e in t e n d e d t o p a s s b y a g r a n t o f
r e a l p r o p e r t y , u n le s s i t a p p e a r s f r o m t h e f a c e o f t h e g r a n t t h a t a
le ss e r e s t a t e w a s in t e n d e d . A g r a n t o f r e a l p r o p e r t y m a y b e m a d e
in t h e fo llo w in g f o r m : “ I , A . B ., g r a n t t o C . D . a ll t h a t r e a l p r o p ­
e r t y s i t u a t e d in ( in s e r t n a m e o f c o u n ty ) c o u n ty , S t a t e o f C a lif o r n ia ,
b o u n d e d (o r d e s c rib e d ) a s fo llo w s ; ( H e r e in s e r t d e s c r ip tio n , ori f t h e l a n d s o u g h t t o b e c o n v e y e d h a s a w e ll- e s ta b lis h e d d e s c r ip tiv e
n a m e , i t m a y b e d e s c r ib e d b y s u c h n a m e a s f o r in s ta n c e :
‘T h e N o r r is R a n c h .’) W itn e s s m y h a n d t h i s (in s e rt) d a y o f ( in s e r t m o n t h ) ,
19— , A . B .” T h e u s e o f t h e w o rd “ g r a n t ’’, im p lie s t h e fo llo w in g
c o v e n a n ts : 1. T h a t p r e v io u s to t h e ti m e o f t h e c o n v e y a n c e t h e
g r a n t o r h a d n o t c o n v e y e d t h e s a m e e s ta te , o r a n y r ig h t , t i tle , o r i n t e r ­
e s t th e r e in t o a n y p e r s o n o th e r t h a n t h e g r a n te e . 2. T h a t s u c h
e s t a t e is a t t h e ti m e o f t h e e x e c u tio n o f t h e c o n v e y a n c e fr e e fro m
in c u m b r a n c e s , d o n e , m a d e , o r s u ffe re d b y t h e g r a n t o r . S u b s e q u e n tly
a c q u ir e d t i t l e p a s s e s b y o p e r a t io n o f la w t o t h e g r a n te e , o r h is s u c ­
c e ss o rs . I n s t r u m e n t s e n t itl e d t o b e re c o r d e d m u s t b e re c o r d e d b y
t h e c o u n t y r e c o r d e r o f t h e c o u n t y in w h ic h t h e r e a l p r o p e r t y a f f e c te d
th e r e b y is s itu a te d . , E v e r y c o n v e y a n c e o f r e a l p r o p e r t y , a c k n o w l­
e d g e d o r p r o v e d a n d c e rtif ie d a n d r e c o r d e d a s p r e s c r ib e d b y la w , f r o m
t h e ti m e f t Is filed w ith t h e r e c o r d e r f o r re c o r d , is c o n s tr u c tiv e n o tic e
o f t h e c o n t e n ts th e r e o f t o s u b s e q u e n t p u r c h a s e r s a n d m o r tg a g e e s , a n d
e v e r y c o n v e y a n c e o f r e a l p r o p e r t y o t h e r t h a n a le a s e f o r a t e r m n o t
e x c e e d in g o n e y e a r is v o id a s a g a in s t a n y s u b s e q u e n t p u r c h a s e r o r
m o r tg a g e e o f t h e s a m e p r o p e r t y , o r a n y p a r t th e r e o f , in g o o d f a i t h
a n d f o r a v a lu a b le c o n s id e r a tio n , w h o se c o n v e y a n c e is f ir s t d u ly
re c o r d e d .
C o r p o r a t i o n s . P r i v a t e c o r p o r a tio n s m a y b e fo r m e d b y t h e v o lu n ­
t a r y a s s o c ia tio n o f a n y t h r e e o r m o r e p e rs o n s . In t h e m a n n e r p re s c r ib e d
b y s t a t u t e n o t t o e x c eed 50 y e a rs . A m a jo r it y o f s u c h p e r s o n s m u s t
b e r e s id e n ts o f th i s S ta te . P r i v a t e c o r p o r a tio n s m a y b e fo r m e d f o r
a n y p u r p o s e f o r w h ic h in d iv id u a ls m a y la w f u lly a s s o c ia te th e m s e lv e s .
T h e n u m b e r o f d ir e c to r s o f c o r p o r a tio n s f o r p r o f it, e x c e p t th o s e
m e n tio n e d a s e x c e p te d , m a y b e in c r e a s e d o r d im in is h e d , b y a m a jo r ­
i t y o f t h e s to c k h o ld e r s o f t h e c o r p o r a tio n t o a n y n u m b e r , n o t le ss
t h a n th r e e , w h o m u s t b e m e m b e r s o f t h e c o r p o r a tio n . A c o p y o f t h e
a r tic le s o f in c o r p o r a tio n , c e rtif ie d b y t h e s e c r e t a r y o f S ta t e , m u s t b e
filed w ith t h e c o u n t y c le r k o f e v e r y c o u n t y w h e re t h e c o r p o r a tio n
p u rc h a s e s , a c q u ir e s o r lo c a te s p r o p e r t y , w ith in s ix ty d a y s a f t e r
s u c h p u r c h a s e o r lo c a tio n . U p o n filin g t h e a r tic le s o f in c o r p o r a tio n
In t h e office o f t h e c o u n ty c le rk o f t h e c o u n t y in w h ic h t h e p r in c ip a l
b u s in e s s o f t h e o o m o a o y is t o b e t r a n s a c te d , a c o p y th e re o f, c e r t i­
fie d b y t h e c o u n t y c le r k , w ith t h e s e c r e t a r y o f S ta t e , t h e s e c r e t a r y o f

1368

B A N K I N G A N D C O M M E R C IA L L A W S — C A L IF O R N IA

S t a t e m u s t is s u e t o t h e C o rp o ra tio n o v e r t h e g r e a t s e a l o f t h e S t a t e
a c e rtif ic a te t h a t a c o p y o f t h e a r tic le s c o n ta in in g t h e r e q u ir e d s t a t e ­
m e n t o f f a c t s h a s b e e n filed in h is office, a n d th e r e u p o n t h e p e rs o n s
s ig n in g t h e a rtic le s , a n d t h e ir a s s o c ia te s a n d s u c c e s s o rs , s h a ll b e a
b o d y , p o litic a n d c o r p o r a t e b y t h e n a m e s t a t e d i n t h e c e rtific a te ,
a n d fo r a t e r m o f f if ty y e a rs , u n le s s i t is in t h e a r tic le s o f in c o r p o r a tio n
o th e rw is e s ta t e d , o r in t h e c o d e o th e rw is e s p e c ia lly p r o v id e d . A
c o p y o f a n y a r tic le s o f i n c o r p o r a tio n filed in p u r s u a n c e o f th i s c h a p te r ,
a n d c e rtifie d b y t h e s e c r e t a r y o f S ta te , m u s t b e re c e iv e d in a ll t h e
c o u r ts , a n d O th e r p la c e s a s p r im a facie, e v id e n c e o f t h e f a c t s th e r e in
s ta t e d (S ee F o r e ig n C o rp o r a tio n s .) A ll s to c k s is a s s e s s a b le f o r t h e
p u r p o s e o f p a y in g d e b t s a n d m e e tin g e x p e n se s b u t n o s in g le assess^
m e n t m u s t ex c e e d 1 0 % . T h e fra n c h is e o f a ll c o r p o r a tio n s a s d is ­
t i n c t f r o m i t s ta n g ib le p r o p e r t y is s u b je c t t o ta x a tio n .
B a c h s to c k h o ld e r o f a c o r p o r a t io n is in d iv id u a lly a n d p e r s o n a lly
lia b le fo r s u c h p r o p o r tio n o f i t s d e b t a n d lia b ilitie s in c u r r e d w h ile
h e w a s a s to c k h o ld e r a s t h e a m o u n t, o f s to c k o r s h a r e s o w n e d b y
h im b e a rs t o t h e w h o le o f t h e s u b s c rib e d c a p i t a l s to c k o r s h a r e s o f
t h e c o r p o r a tio n , a n d f o r a lik e p r o p o r tio n o n ly o f e a c h d e b t o r c la im
a g a in s t t h e c o r p o r a tio n , b u t s u c h li a b il ity is b a r r e d w ith in 3 y e a rs
a f t e r t h e o b lig a tio n is in c u r r e d . A n y c r e d i to r o f t h e c o r p o r a tio n
m a y i n s t i t u t e j o i n t o t s e v e r a l a c tio n s a g a in s t a n y o f i t s s to c k h o ld e r s
fo r t h e p ro p o r tio n o f th i s c la im , p a y a b le b y e a c h , a n d in s u c h a c tio n
t h e c o u r t m u s t a s c e r t a in t h e p r o p o r tio n o f t h e c la im o r d e b t f o r w h ic h
e a c h d e f e n d a n t is lia b le , a n d a s e v e ra l ju d g m e n t m u s t b e r e n d e r e d
a g a in s t e a c h in c o n f o r m ity th e r e w i th . I f a n y s to c k h o ld e r p a y s
h is p r o p o r tio n o f a n y d e b t d u e f r o m t h e c o r p o r a tio n in c u r r e d w h ile
h e w a s s u c h s to c k h o ld e r, h e is re lie v e d f r o m a n y f u r t h e r p e rs o n a l
lia b ilitie s f o r su c h d e b t ; a n d If a n a c tio n h a s b e e n b r o u g h t a g a in s t
h im f o r s u c h d e b t , i t s h a ll b e d is m is s e d a s t o h im u p o n h is p a y in g
t h e c o s ts , o r s u c k p r o p o r tio n th e r e o f a s m a y b e p r o p e r l y c h a rg e a b le
a g a in s t h im . T h e t e r m " s to c k h o l d e r ” e x t e n d s to e v e r y e q u i ta b l e
o w n e r o f s to c k , a l th o u g h t h e s a m e a p p e a r s o n t h e b o o k s in t h e n a m e
of a n o t h e r , a n d a lso to e v e ry p e r s o n w h o h a s a d v a n c e d t h e in s ta ll­
m e n ts o r p u r c h a s e m o n e y o f s to c k in t h e n a m e o f a m in o r , so lo n g a s
t h e l a t t e r r e m a in s a m in o r ; a n d also^ to e v e ry g u a r d i a n o r o th e r
t r u s t e e w h o v o lu n t a r il y in v e s ts a n y t r u s t f u n d s in t h e s to c k . S to c k
h e ld a s c o lla te r a l s e c u r ity , If f a c t o f p le d g e a p p e a r s , o r b y a tr u s te e , o r
in a n y o t h e r r e p r e s e n t a ti v e c a p a c it y , d o e s n o t m a k e t h e h o ld e r th e r e o f
a s to c k h o ld e r, e x c e p t In t h e c a s e a b o v e m e n tio n e d , so a s to c h a rg e
h im w ith a n y p r o p o r ti o n o f t h e d e b t s o r lia b ilitie s o f t h e c o r p o r a tio n ;
b u t t h e p le d g o r, o r p e rs o n , o r e s t a t e r e p r e s e n t e d is t o b e d e e m e d th e
s to c k h o ld e r a s re s p e c ts s u c h lia b ilitie s . I n c o r p o r a tio n s h a v i n g n o
c a p ita l s to c k , e a c h m e m b e r is In d iv id u a lly a n d p e r s o n a lly lia b le f o r h is
p r o p o r ti o n o f i t s d e b t s a n d lia b ilitie s , a n d s im ila r a c tio n s m a y b e
b r o u g h t a g a in s t h im , e i th e r a lo n e o r jo i n t l y w ith o th e r m e m b e r s , to
e n fo rc e s u c h lia b ilitie s a s b y t h i s s e c tio n m a y b e b r o u g h t a g a in s t o n e
o r m o re s to c k h o ld e r s , a n d s im ila r ju d g m e n ts m a y b e ,r e n d e r e d .
C o u r t s . T e rm s a n d J u r is d ic t io n . J u s t ic e s ' c o u r ts h a v e civ il
J u r is d ic tio n : 1. I n a c tio n s a r is in g o n c o n t r a c ts f o r t h e re c o v e r y of
m o n e y , o n ly if t h e s u m c la im e d , e x c lu s iv e of in t e r e s t, d o e s n o t a m o u n t
to $300, a n d t h e ju r i s d i c ti o n of a ju s ti c e o f th e p e a c e In a ll ca se s
w h e re m o n e y ju d g m e n t Is r e c o v e ra b le is lim ite d to $ 3 0 0 . 2. I n
a c tio n s fo r d a m a g e s f o r in j u r y t o t h e p e rs o n , o r f o r ta k in g , d e ta in in g ,
o r i n j u r in g p e rs o n a l p r o p e r t y , o r f o r in j u r y t o r e a l p r o p e r t y , w h e re
n o is s u e is ra is e d b y t h e v e rifie d a n s w e r o f th e d e f e n d a n t in v o lv in g
t h e t i t l e t o o r p o s se ss io n o f t h e s a m e , if t h e d a m a g e s c la im e d d o n o t
a m o u n t t o $ 3 0 0 . 3. I n a c tio n s t o r e c o v e r th e p o s se ss io n o f p e r s o n a l
p r o p e r t y , if t h e v a lu e o f s u c h p r o p e r t y d o e s n o t a m o u n t t o $ 3 0 0 .
4. I n a c tio n s fo r a fin e, p e n a lty , o r f o r f e itu r e n o t a m o u n tin g to
$300 g iv e n b y s t a t u t e , o r t h e o r d in a n c e o f a n in c o r p o r a te d c i ty o r
to w n , w h e re n o is s u e is r a is e d b y t h e a n s w e r in v o lv in g t h e le g a li ty
of a n y t a x , im p o s t, a s s e s s m e n t, to il, o r m u n ic ip a l fin e. 5. I n
a c tio n s u p o n b o n d s o r u n d e r t a k in g s c o n d itio n e d fo r th e p a y m e n t o f
m o n e y , if t h e s u m c la im e d d o e s n o t a m o u n t t o $ 3 0 0 , th o u g h th e
p e n a lty m a y e x c e e d t h a t s u m . 6. T o t a k e a h d e n t e r j u d g m e n t f o r
t h e re c o v e ry o f m o n e y o n t h e c o n fe s s io n o f a d e f e n d a n t, w h e n t h e
a m o u n t c o n fe s s e d , e x c lu s iv e o f in t e r e s t, d o e s n o t a m o u n t t o $ 3 0 0 .
7. A lso c o n c u rr e n t ju r i s d i c ti o n w ith t h e s u p e r io r c o u r ts , w ith i n t h e ir
re s p e c tiv e to w n s h ip s in a c tio n s o f fo rc ib le e n t r y a n d d e t a in e r , w h e re
t h e r e n t a l v a lu e o f t h e p r o p e r t y e n t e r e d u p o n o r u n la w f u lly d e t a in e d
d o e s n o t e x c e e d $25 p e r m o n th , a n d t h e w h o le a m o u n t o f d a m a g e s
c la im e d d o e s n o t e x c e e d $ 2 0 0 . A lso in a c tio n s to e n fo rc e a n d f o re ­
c lo se lie n s o n p e r s o n a l p r o p e r t y , w h e re n e i th e r t h e a m o u n t o f t h e
H ens n o r t h e v a lu e o f t h e p r o p e r t y a m o u n ts to $300.
S u p e r io r C o u rt. T h e ju r i s d i c ti o n o f t h e s u p e r io r c o u r t is o f tw o
k in d s : l . O rig in a l. 2. A p p e lla te . T h e s u p e r io r c o u r t h a s o rig in a l
j u r i s d i c ti o n in a ll c a se s in e q u i ty ; in a ll c iv il a c tio n s in w h ic h t h e s u b ­
j e c t o f l i tig a tio n is n o t c a p a b le o f p e c u n ia r y e s ti m a t io n ; in a ll c a se s a t
la w w h ic h in v o lv e t h e t i t l e o r p o s se ss io n o f r e a l p r o p e r t y , o r t h e
le g a li ty o f a n y t a x , e tc ., a n d in a ll o th e r c a se s in w h ic h t h e d e m a n d ,
e x c lu s iv e o f i n t e r e s t o r t h e v a lu e o f t h e p r o p e r t y in c o n tr o v e r s y ,
a m o u n ts to $ 3 0 0 ; o f a c tio n s o f fo rc ib le e n t r y a n d d e t a in e r , o f p r o ­
c e e d in g s in in s o lv e n c y ; o f a c tio n s to p r e v e n t o r a b a t e a n u is a n c e ; o f
a ll m a t t e r s o f p r o b a t e , o f d iv o rc e a n d f o r a n n u l lm e n t o f m a r r ia g e ;
a n d o f a ll s u c h s p e c ia l c a se s a n d p r o c e e d in g s a s a r e n o t o th e r w is e
p r o v id e d fo r. T h e y a lso h a v e p o w e r to is s u e w r its o f m a n d a m u s ,
c e rtio r a r i, p r o h ib itio n , q u o w a rra n to * a n d o f h a b e a s c o r p u s o n p e t iti o n
b y o r o n b e h a lf o f a n y p e r s o n in a c t u a l c u s to d y in t h e i r r e s p e c tiv e
c o u n tie s . I n j u n c tio n s a n d w r its o f p r o h ib i tio n m a y b e is s u e d a n d
s e rv e d o n le g a l h o l i d a y s - a n d 1n o n - ju d ic ia l d a y s . T h e s u p e r io r c o u r ts
h a v e a p p e lla t e ju r i s d i c ti o n in c a se s a r is in g in J u s tic e s ’ a n d o th e r
In fe rio r c o u r t s in t h e i r r e s p e c tiv e c o u n tie s p r o v id e d t h e a p p e a l b e
t a k e n w ith i n t h i r t y d a y s o f t h e ju d g m e n t.
D is tr ic t C o u rts o f A p p e a l. T h e S t a t e is d iv id e d in t o th r e e a p p e lla t e
d is tr i c ts , e a c h o f w h ic h h a s a c o u r t o f a p p e a ls w ith t h r e e ju s tic e s .
T h e s e c o u r ts h a v e a p p e lla t e a n d o rig in a l ju r is d ic tio n . T h e g e n e ra l
lin e o f d e m a r c a t io n b e tw e e n t h e s u p re m e c o u r t a n d th e s e c o u r ts is
t h e a m o u n t o f m o n e y o r th e v a lu e o f t h e p r o p e r t y in v o lv e d . T h e
d i s t r i c t c o u r t s o f a p p e a l h a v e a p p e lla t e ju r i s d i c ti o n o n a p p e a l f ro m
t h e s u p e r io r c o u r t s in a ll c a se s a t la w in w h ic h t h e d e m a n d e x c lu s iv e
o f in t e r e s t o r t h e v a lu e o f t h e p r o p e r t y in c o n tr o v e r s y a m o u n ts to
$ 3 0 0 a n d d o e s n o t a m o u n t t o $ 2 ,0 0 0 ; a lso in a ll c a se s o f fo rc ib le
e n t r y a n d d e t a in e r (e x c e p t s u c h a s a ris e in t h e ju s ti c e s ’ c o u r t s ) ;
in p ro c e e d in g s in in s o lv e n c y , a n d in a c tio n s to p r e v e n t o r a b a t e a
n u is a n c e ; in p r o c e e d in g s in m a n d a m u s , c e r t io r a r i a n d p r o h ib itio n ,
u s u r p a ti o n o f office, c o n t e s tin g e le c tio n s a n d e m in e n t d o m a in , a n d
In s u c h o th e r s p e c ia l p r o c e e d in g s a s m a y b e p r o v id e d b y la w ( e x c e p t­
in g in c a se s in w h ic h a p p e lla t e ju r i s d i c ti o n is g iv e n t o t h e s u p r e m e
c o u r t ) ; a lso o n q u e s tio n s o f la w a lo n e in a ll c a se s p r o s e c u te d b y
I n d ic tm e n t o r in f o r m a ti o n t o a c o u r t o f r e c o rd , e x c e p tin g c r im in a l
c a se s w h e re j u d g m e n t o f d e a th h a s b e e n r e n d e r e d . S a id c o u r ts a lso
h a v e a p p e lla t e ju r i s d i c ti o n in a ll c a se s , m a t t e r s a n d p ro c e e d in g s
p e n d in g b e fo re t h e s u p re m e c o u r t w h ic h s h a ll b e o r d e r e d b y t h e
B u p rem e c o u r t t o b e t r a n s f e r r e d to a d i s t r i c t c o u r t o f a p p e a l f o r
h e a ri n g a n d d e c is io n .
S u p re m e C o u rt. H a s o rig in a l a n d a p p e lla t e ju r i s d i c ti o n . I n t h e
e x e rc is e o f o rig in a l ju r is d ic tio n i t s h a ll h a v e p o w e r t o is s u e w r its of
m a n d a m u s , c e rtio r a r i, p r o h ib itio n , a n d h a b e a s c o r p u s ; i t s h a ll a lso
h a v e p o w e r t o is s u e a ll o th e r w r its n e c e s s a r y a n d p r o p e r f o r t h e
c o m p le te e x e rc is e o f its a p p e lla t e ju r is d ic tio n . T h e s u p r e m e c o u r t
h a s a p p e lla t e ju r i s d i c ti o n in a ll c a se s in e q u i ty , e x c e p t s u c h a s a r is e
In t h e j u s ti c e s ’ c o u r ts ; a lso in a ll c a se s a t la w w h ic h in v o lv e th e t i t l e
o r p o s se ss io n o f r e a l e s t a t e o r t h e le g a li ty o f a n y t a x , im p o s t, a s s e s s ­
m e n t, to l l o r m u n ic ip a l fin e, o r in w h ic h t h e d e m a n d e x c lu s iv e o f
I n te r e s t o r t h e v a lu e o f t h e p r o p e r t y in c o n t r o v e r s y a m o u n ts to
$ 2 ,0 0 0 ; a lso in a ll s u c h p r o b a t e m a t t e r s a s m a y b e p r o v id e d b y la w ;
a ls o o n q u e s tio n s o f la w a lo n e in a ll c r im in a l c a se s w h e re t h e ju d g m e n t


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

o f d e a t h h a s b e e n r e n d e r e d ; t h e s a id c o u r t a lso h a s a p p e lla t e ju r i s ­
d ic tio n in a ll c a se s , m a t t e r s a n d p r o c e e d in g s p e n d in g b e f o r e a d is ­
t r i c t c o u r t o f a p p e a l w h ic h s h a ll b e o r d e r e d b y t h e s u p r e m e c o u r t to
b e t r a n s f e r r e d to its e lf f o r h e a r in g a n d d e c is io n .
D e p o s i t i o n s . ,T h e d e p o s itio n o f a w itn e s s o u t o f th i s S t a t e m a y
b e t a k e n u p o n a c o m m is s io n is s u e d f r o m t h e c o u r t u n d e r t h e s e a l o f th e
c o u r t ,iu p o n a n o r d e r o f t h e c o u r t , o r a ju d g e o r j u s ti c e th e r e o f , o n t h e
a p p l ic a t io n o f e i t h e r p a r t y , u p o n fiv e d a y s ’ p re v io u s n o tic e t o t h e
o th e r . I f t h e c o u r t b e a ju s t i c e ’s c o u r t , t h e c o m m is s io n s h a ll h a v e
a t t a c h e d t o i t a c e rtif ic a te u n d e r s e a l b y t h e C lerk o f t h e s u p e r io r
c o u r t o f t h e c o u n t y t o t h e e ffe c t t h a t t h e p e r s o n is s u in g t h e s a m e
W as a n a c tin g ju s ti c e o f t h e p e a c e a t t h e d a t e o f t h e c o m m is s io n . I f
is s u e d t o a n y p la c e w ith in t h e U n ite d S ta te s , i t m a y b e d ir e c te d t o a
p e r s o n a g r e e d u p o n b y t h e p a r tie s , o r i f t h e y d o n o t a g re e , t o a n y
n o t a r y p u b lic , ju d g e o r ju s ti c e o f t h e p e a c e o r c o m m is s io n e r s e le c te d
b y t h e c o u r t, o r ju d g e , o r ju s ti c e is s u in g it . I f is s u e d t o a n y c o u n tr y
o u t o f t h e U n ite d S ta te s , i t m a y b'e d ir e c te d t o a m in is te r , a m b a s s a d o r,
c o n s u l, v ic e -c o n s u l, o r c o n s u la r a g e n t o f t h e U n ite d S ta t e s in
s u c h c o u n t r y , o r t o a n y p e r s o n a g r e e d u p o n b y t h e p a r tie s . T h e
c o m m is s io n m u s t a u t h o r iz e t h e c o m m is s io n e r t o a d m in is te r a n o a th
t o t h e w itn e s s . T h e te s t im o n y o f a w itn e s s o u t o f t h e S ta t e m a y b e
t a k e n b y d e p o s itio n in a n a c tio n , a t a n y t i m e a f t e r t h e s e rv ic e o f t h e
s u m m o n s o r t h e a p p e a r a n c e o f t h e d e f e n d a n t ; in a s p e c ia l p ro c e e d in g ,
a t a n y t i m e a f t e r a q u e s tio n o f f a c t h a s a r is e n th e r e in . D e p o s itio n s
m u s t b e t a k e n in t h e f o r m o f q u e s tio n a n d a n s w e r. T h e w o rd s o f
t h e w itn e s s m u s t b e w r itt e n d o w n , in t h e p r e s e n c e o f t h e w itn e ss ,
b y t h e o fficer ta k in g t h e d e p o s itio n o r b y s o m e in d if f e r e n t p e r s o n
a p p o i n te d b y h im . I t m a y b e t a k e n d o w n in s h o r t h a n d in w h ic h
c a s e i t m u s t b e tr a n s c r i b e d t o lo n g h a n d b y t h e p e r s o n w h o to o k i t
d o w n . W h e n c o m p le te d , i t m u s t b e c a re f u lly r e a d t o o r b y t h e
w itn e s s a n d c o r r e c te d b y h im in a n y p a r t ic u l a r , i f d e s ire d , b y w r itin g
o r c a u s in g h is c o r r e c tio n s bo b é w r itt e n a t t h e b o tt o m o f t h e d e p o s itio n ,
a n d m u s t t h e n b e s u b s c r ib e d b y t h e w itn e s s . C o r r e c tio n s m u s t b e
in i tia le d b y o fficer b e f o r e w h o m d e p o s itio n is ta k e n . I f t h e p a r t ie s
a g r é e in w r itin g t o a n y o th e r m o d e , t h e m o d e so a g r e e d u p o n m u s t
b é fo llo w e d .
D e p o s itio n s in th i s S ta t e . T b e te s t im o n y o f th e w itn e s s in th is
S t a t e m a y b e t a k e n b y d e p o s itio n in a n a c tio n a t a n y ti m e a f t e r th e
s e r v ic e o f s u m m o n s o r t h e a p p e a r a n c e of d e f e n d a n t, a n d in a s p e c ia l
p ro c e e d in g a f t e r a q u e s tio n o f f a c t h a s a r is e n th e r e in , in c e r ta in
e n u m e r a te d c a se s .
D e p o s itio n s f o r U se o u t o f t h e S ta t e . A n y p a r t y t o a n a c tio n o r
s p e c ia l p r o c e e d in g in a c o u r t o r b e fo re a ju d g e o f a s is te r s t a t e , m a y
o b t a i n t h e te s t im o n y o f a w itn e s s r e s id in g in th i s S t a t e , t o b e u s e d in
s u c h a c tio n o r p r o c e e d in g , in t h e c a se s m e n tio n e d fo llo w in g : I f a
c o m m is s io n t o t a k e s u c h t e s t im o n y h a s b e e n is s u e d fr o m t h e c o u r t,
o r a ju d g e h e re o f, b e fo re w h ic h s u c h a c tio n o r p r o c e e d in g is p e n d ­
in g , o n p r o d u c in g t h e c o m m is s io n t o a ju d g e o f t h e s u p e r io r
c o u r t w ith a n a f f id a v it s a ti s f a c to r y to h im o f t h e m a t e r i a l i t y o f th e
te s t im o n y , h e m a y is s u e a s u b p o e n a t o t h e w itn e s s , r e q u ir in g h im to
a p p e a r a n d te s t if y b e fo re t h e c o m m is s io n e r n a m e d in t h e c o m m is ­
s io n , a t a sp e c ifie d tim e a n d p la c e . I f a c o m m is s io n h as- n o t b e e n
is s u e d a n d i t a p p e a r to a ju d g e o f t h e s u p e r io r c o u r t, o r a ju s ti c e of
t h e p e a c e , b y a f f id a v it s a ti s f a c to r y t o h im : 1. T h a t t h e te s t im o n y
o f th e w itn e s s is m a te r ia l t o e i th e r p a r t y . 2. T h a t a c o m m is s io n to
t a k e te s t im o n y o f s u c h w itn e s s h a s n o t b e e n is s u e d . 3. T h a t
a c c o r d in g t o t h e la w o f t h e S t a t e w h e r e t h e a c tio n
sp e c ia l p ro c e e d in g
is p e n d in g , t h e d e p o s itio n o f a w itn e s s t a k e n u n d e r s u c h c ir c u m ­
s ta n c e s , a n d b e f o r e s u c h ju d g e o r ju s ti c e , w ill b e r e c e iv e d in th e a c tio n
o r p ro c e e d in g , h e m u s t is s u e a s u b p o e n a r e q u i r in g t h e w itn e s s to
a p p e a r a n d te s t if y b e fo re h im a t a s p eo ified ti m e a n d p la c e . U p o n
th e a p p e a r a n c e o f t h e w itn e s s , t h e ju d g e o r ju s ti c e m u s t c a u s e h is
te s t im o n y t o b e ta k e n in w r itin g , a n d m u s t c e r tif y a n d t r a n s m i t th e
s a m e t o t h e c o u r t o r ju d g e b e f o r e w h o m t h e a c tio n o r p r o c e e d in g is
p e n d in g , in s u c h m a n n e r a s t h e la w o f t h a t S t a t e r e q u ir e s .
D e s c e n t a n d D is tr ib u tio n o f P ro p e rty .
P r o p e r ty , b o th r e a l
a n d p e r s o n a l, o f a n i n t e s t a t e p a s s e s t o h is h e ir s . A s u r v iv in g w ife
s u c c e e d s to o n e - h a lf o f t h e c o m m u n ity p r o p e r t y , 1. e ., a ll p r o p e r t y
a c q u ir e d b y h u s b a n d o r w ife d u r in g t h e m a r r ia g e , w h ic h d o e s n o t
in c lu d e p r o p e r t y a c q u ir e d b y e i th e r h u s b a n d o r w ife b y g if t, b e q u e s t,
d e v is e o r d e s c e n t, w h ic h is s e p a r a t e p r o p e r t y . D o w e r in t e r e s t d o e s
n o t e x is t. T h e s e p a r a t e e s ta te is d is tr i b u te d a s fc fio w s: I f t h e
d e c e d e n t le a v e s a s u r v iv in g h u s b a n d o r w ife a n d o n ly o n e c h ild , o r
t h e la w f u l is s u e o f o n e c h ild , in e q u a l s h a r e s t o t h e s u r v iv in g h u s b a n d
o r w ife a n d c h ild o r is s u e o f s u c h c h ild . I f a s u r v iv in g h u s b a n d o r
w ife a n d m o r e t h a n o n e c h ild liv in g , o r o n e c h ild liv in g a n d t h e la w f u l
is s u e o f o n e o r m o r e d e c e a s e d c h ild r e n , o n e - t h ir d t o t h e s u r v iv in g
h u s b a n d o r w ife, a n d t h e r e m a in d e r in e q u a l s h a r e s t o t h e c h ild r e n
a n d t o t h e la w f u l is s u e o f a n y d e c e a s e d c h ild b y r ig h t o f r e p r e s e n ta tio n .
B u t if t h e r e b e n o c h ild liv in g , t h e r e m a in d e r g o es to a ll th e lin e a l
d e s c e n d a n ts , a n d if t h e y a r e in t h e s a m e d e g re e o f k in d r e d t o t h e
d e c e d e n t t h e y s h a r e e q u a lly , o th e r w is e b y r i g h t o r r e p r e s e n t a ti o n .
I f t h e d e c e d e n t le a v e s n o s u r v iv in g h u s b a n d o r w ife, t h e w h o le e s t a t e
g o e s to t h e is s u e — t h e is s u e o f c h ild r e n ta k in g b y r i g h t o f r e p r e s e n ­
t a t i o n . I f th e r e is n o is s u e t h e e s t a t e g o es o n e - h a lf t o t h e s u r v iv in g
h u s b a n d o r w ife a n d t h e o th e r h a l f to t h e f a t h e r a n d m o t h e r in e q u a l
s h a r e s , o r, if o n e b e d e a d , t o t h e s u r v iv o r ; if t h e r e b e n o f a t h e r o r
m o t h e r , t h e n t h e i r o n e - h a lf g o es in e q u a l s h a r e s t o t h e b r o th e r s a n d
s is te r s o r t o t h e i r r e p r e s e n t a ti v e s . I f t h e r e is n o is s u e , o r h u s b a n d o r
w ife, t h e e s t a t e g o es t o th e f a t h e r a n d m o t h e r , o r t h e s u r v iv o r , o r , If
b o th b e d e a d , t h e n in e q u a l s h a r e s to t h e b r o th e r s a n d s is te r s , a n d
t o t h e c h ild r e n o f a n y d e c e a s e d b r o t h e r o r s is te r b y r ig h t o f r e p r e ­
s e n ta tio n . I f t h e d e c e d e n t le a v e s a s u r v iv in g h u s b a n d o r w ife, a n d
n e i th e r is s u e , f a t h e r , m o th e r , b r o th e r , n o r s is te r , t h e w h o le e s ta te
g o es t o t h e s u r v iv in g h u s b a n d o r w ife. I f th e d e c e d e n t le a v e s n e i th e r
is s u e , h u s b a n d , w ife, f a t h e r , m o th e r , b r o th e r , n o r s is te r , t h e e s ta te
m u s t g o t o t h e n e x t o f k in in e q u a l d e g re e . I ll e g it im a te c h ild r e n
i n h e r it f r o m m o th e r , a lso f r o m f a t h e r if re c o g n iz e d in w r itin g b u t
c a n o n ly i n h e r it d ir e c tly a n d n o t b y r e p r e s e n ta tio n . T h e s e a r e t h e
p r in c ip a l p r o v is io n s o f t h e la w o f su c c e s s io n . T e n a n c y b y t h e c o u r­
te s y is n o t k n o w n to o u r la w . I f t h e p e rs o n d ie s te s t a t e , a ll p r o p e r t y
p a s s e s a s d ir e c te d b y t h e w ill.
E x e c u t i o n s . M a y is s u e a n y ti m e w ith in 5 y e a r s fr o m e n t r y o f
ju d g m e n t a n d a f t e r la p s e o f 5 y e a rs t h e j u d g m e n t m a y b e e n fo rc e d
o r c a rr ie d in t o e x e c u tio n b y le a v e o f c o u r t u p o n m o tio n , o r b y ju d g ­
m e n t f o r t h a t p u rp o s e , fo u n d e d u p o n s u p p le m e n ta l p ro c e e d in g s .
N o r i g h t o f s t a y e x ists e x c e p t b y o r d e r o f t h e c o u r t in it s d is c r e tio n .
E x e c u tio n m a y is s u e a g a in s t t h e p r o p e r t y o f a ju d g m e n t d e b to r
a f t e r h is d e a th , o n ly i f t h e ju d g m e n t b e f o r r e c o v e r y o f r e a l o r p e r ­
s o n a l p r o p e r t y , o r t h e e n f o r c e m e n t o f lie n s th e r e o n . B e a l p r o p e r t y
m a y b e r e d e e m e d w ith in o n e y e a r, p e r s o n a l p r o p e r t y n o t a t all.
E x e m p t i o n s . T h e fo llo w in g p r o p e r t y is e x e m p t f r o m e x e c u tio n ;
l
C h a irs , ta b le s , d e s k s , a n d b o o k s , t o th e v a lu e o f $ 2 0 0 . 2. N e c e s­
s a r y h o u s e h o ld , t a b le a n d k it c h e n f u r n it u r e b e lo n g in g t o t h e j u d g m e n t
d e b t o r , in c lu d in g o n e se w in g m a c h in e , s to v e s , s to v e - p ip e s a n d f u r n i­
t u r e , w e a r in g a p p a r e l, b e d s , b e d d in g a n d b e d s te a d , h a n g in g p ic tu r e s ,
o il p a i n tin g s a n d d ra w in g s d r a w n o r p a i n te d b y a n y m e m b e r o f t h e
f a m ily , a n d f a m ily p o r tr a its , a n d t h e i r n e c e s s a r y fra m e s , p ro v is io n »
a n d fu e l a c tu a ll y p r o v id e d f o r in d iv id u a l o r f a m ily u s e s u ffic ie n t
f o r th r e e m o n th s , a n d th r e e co w s a n d t h e i r s u c k in g c a lv e s , f o u r h o g s
w ith t h e ir s u c k in g p ig s, a n d fo o d f o r s u c h co w s a n d h o g s f o r o n e
m o n th , o n e p ia n o , o n e s h o tg u n , a n d o n e rifle. 3 . • T h e f a r m in g
u te n s ils o r im p le m e n ts o f h u s b a n d r y n o t e x c e e d in g in v a lu e t h e s u m
o f $ 1 ,0 0 0 ; a lso tw o o x e n o r tw o h o rs e s , o r tw o m u le s , a n d t h e ir h a r n e s s ;
o n e c a r t o r b u g g y a n d tw o w a g o n s , a n d fo o d f o r s u c h o x e n , h o rs e s ,
o r m u le s f o r o n e m o n t h ; a lso a ll se e d , g ra in , o r v e g e ta b le s , a c tu a ll y

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p r o v id e d , re s e r v e d o r o n h a n d fo r t h e p u r p o s e o f p la n tin g o r s o w in g
a t a n y t i m e w ith in t h e e n s u in g six m o n th s , n o t e x c e e d in g in v a lu e
t h e s u m o f $ 2 0 0 , a n d S e v e n ty -fiv e b e e h iv e s , a n d o n e h o r s e a n d v e ­
h ic le b e lo n g in g t o a n y p e rs o n w h o is m a im e d o r c rip p le d , a n d t h e
s a m e is n e c e s s a ry in h is b u s in e s s . 4. T h e to o ls o r im p le m e n ts o f
m e c h a n ic o r a r t is a n , n e c e s s a ry t o c a r r y o n h is t r a d e ; t h e n o ta r ia l
s e a l, r e c o rd s , a n d office f u r n it u r e o f a n o t a r y p u b lic ; th e in s tr u m e n ts
a n d c h e s t o f a s u rg e o n , p h y s ic ia n , s u r v e y o r , o r d e n t is t, n e c e s s a r y t o
t h e e x e rc is e o f t h e i r p ro fe s s io n , w ith t h e i r p ro fe s s io n a l lib r a r ie s a n d
n e c e ss a ry , office f u r n it u r e ; t h e p ro fe s s io n a l lib ra rie s o f a t to r n e y s ,
ju d g e s , m in is te r s o f t h e g o s p e l, e d ito rs , s c h o o l te a c h e r s a n d m u s ic
te a c h e r s a n d - t h e i r n e c e s s a ry office f u r n it u r e , in c lu d in g o n e s a fe a n d
o n e ty p e w r i te r , a ls o t h e m u s ic a l in s tr u m e n ts o f m u s ic te a c h e r s a c ­
t u a lly u s e d b y th e m in g iv in g in s tr u c tio n s ; a n d a ll t h e in d e x e s , a b ­
s tr a c ts , b o o k s , p a p e rs , m a p s , a n d office f u r n it u r e o f a s e a r c h e r o f
r e c o r d s n e c e s s a ry t o b e u s e d in h is p ro fe s s io n ; a lso t h e ty p e w r i te r s
o r o th e r m e c h a n ic a l c o n tr iv a n c e s e m p lo y e d fo r w r itin g in t y p e a c ­
tu a l l y u s e d b y t h e o w n e r th e r e o f f o r m a k in g h is liv in g ; a ls o o n e
b ic y c le W hen t h e s a m e is u s e d b y i t s o w n e r f o r t h e p u r p o s e o f c a rr y in g
o n h is r e g u la r b u s in e s s , o r w h e n t h e s a m e is u s e d fo r t h e p u r p o s e
o f t r a n s p o r t in g t h e o w n e r t o a n d f r o m h is p la c e o f b u s in e s s . 5. T h e
c a b in o r d w e llin g o f a m in o r n o t e x c e e d in g in v a lu e t h e s u m o f $ 5 0 0 ;
a lso h is slu ic es, p ip e s, h o s e , w in d la ss , d e rric k , c a rs , p u m p s , to o ls,
im p le m e n ts , a n d a p p lia n c e s n e c e s s a ry fo r c a rr y i n g o n a n y m in in g
o p e r a tio n s , n o t e x c e e d in g in v a lu e t h e a g g r e g a te s u m o f $ 5 0 0 ; a n d
tw o h o rs e s , m u le s , o r o x e n , w ith th e ir h a r n e s s , a n d fo o d fo r s a m e
f o r o n e m o n th , w n e n n e c e s s a r y t o b e u s e d In a n y w h im , w in d la ss ,
d e r r ic k , c a r, p u m p , o r h o is tin g g e a r, a n d a ls o h is m in in g c la im , a c t u ­
a lly w o rk e d b y h im , n o t e x c e e d in g in v a lu e th e s u m o f $ 1 ,000. 5
T w o h o rs e s , tw o o x e n , o r tw o m u le s , a n d t h e i r h a r n e s s , a n d o n e o a rt
o r w a g o n , o n e d r a y o r tr u c k , o n e c o u p e , o n e h a c k o r c a rr ia g e fo r o n «
o r tw o h o rs e s , b y t h e u s e o f w h ic h a c a r t m a n , t r u c k m a n , h u c k s te r ,
p e d d le r , h a o k m a n , t e a m s te r , o r o t h e r la b o r e r h a b i tu a l ly e a r n s h is
liv in g , a n d o n e h o rs e w ith v e h ic le a n d h a r n e s s , o r o t h e r e q u ip m e n ts
u s e d b y a p h y s ic ia n , s u rg e o n , c o n s ta b le , o r m i n is te r o f th e g o sp e l in
t h e le g itim a te p r a c t ic e o f h is p ro fe s s io n o r b u s in e s s , w ith fo o d f o r
s a m e f o r o n e m o n th . 7. O n e fish in g b o a t a n d n e t , n o t e x c e e d in g
t h e t o t a l v a lu e $ 5 0 0 , t h e p r o p e r t y o f a n y fis h e rm a n b y t h e la w fu l
u s e o f w h ic h h e e a rn s a liv e lih o o d . 8. P o u ltr y , n o t e x c e e d in g in
v a lu e $ 75. 9. S e a m e n ’s a n d s e a g o in g fis h e rm e n ’s w a g e s a n d e a r n ­
in g s n o t e x c e e d in g $ 3 0 0 . 10. T h e e a rn in g s o f t h e ju d g m e n t d e b t o r
f o r h is p e r s o n a l s e rv ic e s r e n d e r e d a t a n y t i m e w ith in t h i r t y d a y s
n e x t p r e c e d in g t h e le v y o f e x e c u tio n o r a t t a c h m e n t , w h e re i t a p p e a r s
b y t h e d e b t o r ’s a f fid a v it o r o th e rw is e , t h a t s u c h e a rn in g s a r e n e c e s ­
s a r y f o r t h e u s e o f h is f a m ily r e s id in g in th i s S t a t e s u p p o r te d i n w h o le
o r in p a r t b y h is la b o r ; b u t w h e re d e b t s a r e in c u r r e d b y a n y s u c h
e rs o n , o r h is w ife o r f a m ily fo r t h e c o m m o n n e c e s s a rie s o f life, o r
a v e b e e n in c u r r e d a t a ti m e w b e n t b e d e b t o r h a d n o f a m ily r e s id in g
in th i s S ta te , s u p p o r te d in w h o le o r o n p a r t b y h is la b o r , t h e o n e h a l f o f s u c h e a rn in g s a b o v e m e n tio n e d a r e n e v e rth e le s s s u b je c t t o
e x e c u tio n , g a r n is h m e n t, o r a t t a c h m e n t t o s a ti s f y d e b t s so in c u rre d .
11. T h e s n a r e s h e ld b y a m e m b e r o f a h o m e s te a d a s s o c ia tio n d u ly
in c o r p o r a te d , n o t e x c e e d in g in v a l u e $ 1 ,0 0 0 , i f t h e p e rs o n h o ld in g
t h e s h a re s is n o t. t h e o w n e r o f a h o m e s te a d u n d e r t h e la w s o f th i s
S ta te . 12. A ll t h e n a u t ic a l in s tr u m e n ts a n d w e a rin g a p p a re l o f
a n y m a s te r , o fficer, o r s e a m a n o f a n y s te a m e r o r o th e r v e sse l. 13.
A ll fire e n g in e s , h o o k a n d la d d e rs , w ith c a rts , tr u c k s , c a rria g e s , h o se ,
b u c k e ts , im p le m e n ts , a n d a p p a r a t u s th e r e u n to a p p e r t a in i n g ; a n d
a ll f u r n it u r e a n d u n ifo rm s o f a n y fire c o m p a n y or, d e p a r t m e n t o r­
g a n iz e d u n d e r a n y la w o f t h i s S ta te . 14. A ll a r m s , u n ifo rm s a n d
a c c o u tr e m e n ts r e q u i r e d b y la w t'o b e k e p t b y a n y p e rs o n , a n d a lso
o n e g u n t o b e s e le c te d b y t h e d e b to r . 15. A ll c o u r t h o u s e s , ja ils ,
a n d to w n , c o u n ty , a n d S t a t e b u ild in g s ; a ll p u b lic b u ild in g s , g ro u n d s ,
p la c e s , e tc . 16. A ll m a te r i a l p u r c h a s e d fo r u s e in t h e c o n s tr u c tio n ,
a l te r a t io n , e tc ., o f a n y b u ild in g , m in in g c la im , e tc ., n o t e x c e e d in g t h e
v a lu e o f $ 1 ,0 0 0 . 17. A ll m a c h in e r y , to o ls , a n d im p le m e n ts n e c e s ­
s a r y in a n d f o r b o rin g , s in k in g , p u t t i n g d o w n , a n d c o n s tr u c tin g s u r ­
f a c e o r a r t e s ia n w e lls; a lso t h e e n g in e s n e c e s s a ry fo r o p e r a tin g s u c h
m a c h in e ry , im p le m e n ts , to o ls , e t c .; a ls o a ll tr u c k s n e c e s s a ry fo r t h e
tr a n s p o r t a t i o n o f s u c h m a c h in e ry , to o ls , im p le m e n ts , e n g in e s , e tc ., to
t h e v a lu e o f $ 1 ,0 0 0 . 18. A ll m o n e y s , b e n e fits , p riv ile g e s, o r im ­
m u n itie s a c c ru in g , o r in a n y m a n n e r g ro w in g o u t o f a n y life in s u r a n c e
o n t h e life o f t h e d e b t o r , i f t h e a n n u a l p r e m iu m s p a id d o n o t e x c eed
$ 5 0 0 . 19. S h a re s o f s to c k in a n y b u ild in g a n d lo a n a s s o c ia tio n to
t h e v a lu e o f $ 1 ,0 0 0 . 20. P e n s io n s f r o m t h e U n ite d S ta t e s G o v e r n ­
m e n t. N o a rtic le , h o w e v e r, o r s p e c ie s o f p r o p e r t y m e n tio n e d in
th i s s e c tio n , is e x e m p t f r o m e x e c u tio n is s u e d u p o n a j u d g m e n t r e ­
c o v e re d fo r i t s p r ic e o r u p o n , a ju d g m e n t o f f o re c lo s u re o f a m o r tg a g e
o r o th e r lie n th e re o n .
( F o r H o m e s te a d E x e m p tio n s , s e e H o m e s te a d .)
F o r e i g n C o r p o r a t i o n s . E v e r y fo re ig n c o r p o r a t io n d o in g o r
a b o u t to d o b u s in e s s in th i s S t a t e m u s t file a c e rtifie d c o p y o f it s
a r tic le s o f in c o r p o r a tio n , o r o f a le g is la tiv e a c t c r e a tin g i t , w ith th e
S e c r e t a r y o f S ta t e , a n d a c e rtifie d c o p y th e r e o f d u ly c e rtifie d b y t h e
S e c r e ta r y o f t h i s S t a t e m u s t b e filed w ith t h e C o u n ty C le rk o f t h e
C o u n ty w h e re it s p r in c ip a l p la c e o f b u s in e s s is lo c a te d , a n d a lso
w h e r e , i t o w n s p r o p e r t y . E v e r y fo re ig n , c o r p o r a tio n m u s t file in
t h e office o f t h e S e c r e ta r y o f S t a t e w ith s u c h c e rtifie d c o p y , a d e s ig ­
n a t io n o f s o m e p e rs o n re s id in g w ith in t h e S t a t e u p o n w h o m p ro c e s s ,
is s u e d b y a u t h o r i t y o f o r u n d e r a n y la w o f th i s S ta te , m a y b e s e rv e d ;
a n d a n y fo re ig n c o r p o r a tio n fa ilin g t o c o m p ly w ith th i s p ro v is io n
c a n n e i th e r m a in ta in n o r d e fe n d a n y a c tio n in t h e c o u r t s o f th i s
S ta t e , o r a c q u ir e o r c o n v e y a n y le g a l t i t l e t o r e a l p r o p e r t y a n d is
s u b je c t in a d d i tio n t o a fin e o f $500. (S ee C o rp o ra tio n s .)
F rau d .
( F o r F r a u d u le n t D e b to rs , s e e A r r e s t.) A n y c o n t r a c t
o b ta in e d th r o u g h f r a u d is v o id a b le . C o n s e n t is d e e m e d to h a v e
b e e n o b ta in e d th r o u g h f r a u d o n ly w h e n i t w o u ld n o t h a v e b e e n g iv e n
h a d s u c h c a u s e n o t e x is te d . A c tu a l f r a u d c o n s is ts in t h e s u g g e s tio n
a s a f a c t o f t h a t w h ic h is n o t tr u e , t h e p o s itiv e a s s e r tio n o f t h a t w h ic h
Is n o t t r u e in a m a n n e r n o t w a r r a n te d b y t h e in f o r m a ti o n o f t h e p e rs o n
m a k in g i t th o u g h h e b e lie v e s i t to b e t r u e , t h e s u p p r e s s io n o f t h a t
w h ich i s tr u e b y o n e h a v i n g k n o w le d g e o f i t . a n d p ro m is e s m a d e w ith ­
o u t a n y i n t e n ti o n o f p e rfo rm in g , o r a n y o t h e r a c t f it te d t o d e c e iv e .
C o n s tr u c tiv e f r a u d c o n s is ts o f a n y b r e a c h o f d u ty , w h ic h w ith o u t a n
a c tu a l f r a u d u l e n t i n t e n t, g a in s a n a d v a n ta g e o f t h e p e rs o n in f a u l t
b y m is le a d in g a n o t h e r to h is p r e ju d ic e . A c tu a l f r a u d is a lw a y s a
q u e s tio n o f f a c t.
G a rn is h m e n t.
U p o n re c e iv in g in s tr u c tio n in w r itin g fro m t h e
p la in tiff o r h is a t t o r n e y t h a t a n y p e rs o n h a s in h is p o s se ss io n , o r u n d e r
h is c o n tr o l, a n y c r e d its o r o th e r p e r s o n a l p r o p e r t y b e lo n g in g to t h e
d e f e n d a n t o r is o w in g a n y d e b t t o th e d e f e n d a n t, th e s h e riff m u s t
s e r v e u p o n s u c h p e rs o n a c o p y o f th e w r it a n d a n o tic e t h a t s u c h
c r e d its , o r o th e r p r o p e r t y o r d e b ts , a s t h e c a s e m a y b e , a r e a t t a c h e d
in p u r s u a n c e o f s u c h w r it. A ll p e rs o n s h a v in g a n y s u c h p r o p e r t y
a t t h e ti m e o f s e rv in g o f s u c h w r it, u n le s s i t is d e liv e re d u p o r t r a n s ­
f e r r e d o r p a id to th e s h e riff, s h a ll b e lia b le t o t h e a m o u n t o f su c h
c r e d its , p r o p e r t y , o r d e b ts , u n t i l th e a t t a c h m e n t b e d is c h a rg e d , o r
a n y j u d g m e n t b y h im re c o v e re d b e s a tis fie d .
H o m e s t e a d . T h e h o m e s te a d c o n s is ts in t h e I n te r e s t o f th e
c la im a n t, d iv id e d o r u n d iv id e d , in t h e d w e llin g h o u s e in w h ic h th e
c la im a n t re s id e s, a n d in t h e la n d o n w h ic h t h e s a m e is s itu a te d ,
s e le c te d , if t h e c la im a n t b e m a r r ie d , fro m c o m m u n ity p r o p e r t y , o r
th e s e p a r a t e p r o p e r t y o f t h e h u s b a n d , o r, w ith t h e c o n s e n t o f t h e
w ife f r o m h e r s e p a r a t e p r o p e r t y . W h e n t h e c la im a n t is n o t m a r r ie d ,
b u t is t h e h e a d o f a fa m ily , th e h o m e s te a d m a y b e s e le c te d fro m a n y
o f h is o r h e r s e p a r a t e n r o p e r t y . T h e h o m e s te a d c a n n o t b e s e le c te d


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

1399

fro m th e s e p a r a t e p r o p e r t y o f t h e w ife w ith o u t h e r c o n s e n t, s h o w n
b y h e r m a k in g o r J o in in g t h e d e c la r a t io n o f h o m e s te a d . T h e h o m e ­
s te a d is e x e m p t fro m e x e c u tio n o r fo rc e d s a le , e x c e p t in s a tis f a c tio n
o f ju d g m e n ts o b ta in e d : 1. B e f o r e t h e d e c la r a t io n of b o m e s te a d
w as filed f o r r e c o r d , a n d w h ic h c o n s ti tu te s lie n s u p o n t h e p re m is e s .
2.
O n d e b t s s e c u r e d b y m e c h a n ic s ' c o n t r a c to r s ’, s u b - c o n tr a c to r s ’,
a r t i s a n s ’, a r c h i t e c t s ’, b u ild e r s ', la b o r e r s ’ o f e v e r y c la s s , m a te r i a lm e n 's
o r v e n d o r s ’ lie n s u p o n th e p re m is e s . 3. O h d e b t s s e c u r e d b y
m o r tg a g e s o n th e p re m is e s , e x e c u te d a n d a c k n o w le d g e d b y t h e h u s ­
b a n d a n d w ife o r b y a n u n m a r r ie d c l a im a n t. 4 . O n d e b t s s e c u re d
b y m o r tg a g e s o n t h e p re m is e s , e x e c u te d a n d r e c o r d e d b e f o r e t h e
d e c la r a t io n o f h o m e s te a d w a s filed f o r r e c o r d . I n c a se s n o t e n u m ­
e r a t e d a b o v e , in w h ic h , a f t e r a J u d g m e n t h a s b e e n d o c k e te d a g a in s t
th e h o m e s te a d c l a im a n t, a n d a n e x e c u tio n f o r it s e n f o r c e m e n t le v ie d
o n t h e h o m e s te a d . I t m a y b e s h o w n b y a n a p p r a i s e m e n t a p p lie d f o r
to , a n d o r d e r e d b y , t h e c o u r t , a f t e r p r o p e r p ro c e e d in g s , t h a t t h e h o m e ­
s te a d e x c e e d s in v a lu e t h e a m o u n t o f h o m e s te a d e x e m p tio n . T h e n
s te p s m a y b e ta k e n , if i t c a n b e d o n e w ith o u t m a te r i a l i n j u r y to t h e
la n d , to d iv id e t h e p r o p e r t y a n d r e a c h t h e e x c e ss . T h e h o m e s te a d
of a m a r r ie d p e r s o n c a n n o t b e c o n v e y e d o r e n c u m b e r e d u n le ss th e
in s tr u m e n t b y w h ic h i t is c o n v e y e d o r e n c u m b e r e d is e x e c u te d a n d
a c k n o w le d g e d b y b o th h u s b a n d a n d w ife. H o m e s te a d s m a y b e
s e le c te d a n d c la im e d : i . I f n o t e x c e e d in g $ 5 ,0 0 0 in v a lu e , b y a n y
h e a d o f a f a m ily . 2. I f n o t e x c e e d in g $ 1 ,0 0 0 in v a lu e , b y a n o t h e r
p e r s o n u p o n d e a th o f e i th e r s p o u s e , i f h o m e s te a d is s e le c te d f r o m
c o m m u n ity p r o p e r t y o r f r o m s e p a r a t e p r o p e r t y o f s p o u s e jo in in g
th e r e in , t i t l e th e r e to v e s ts i n s u r v iv o r o th e r w is e t o t h e h e ir s o r d e ­
v is e e s o f t h e p e r s o n w h o se p r o p e r t y w a s s e le c te d .
H u s b a n d a n d W i f e . T h e h u s b a n d Is t h e h e a d of t h e f a m ily .
H e m a y c h o o s e a n y r e a s o n a b le p la c e o r m o d e o f liv in g , a n d t h e w ife
m u s t c o n fo rm th e r e to . I n o th e r r e s p e c ts th e ir I n te r e s ts a r e s e p a r a t e .
N e ith e r h u s b a n d n o r w ife h a s a n y in t e r e s t in t h e s e p a r a t e p r o p e r t y
o f t h e o th e r , a n d e i th e r m a y e n t e r in to a n y e n g a g e m e n t w ith th e
o th e r , o r w ith a n y o th e r p e rs o n , r e s p e c tin g p r o p e r t y , w h ic h e i th e r
m ig h t if u n m a r r ie d .
A ll p r o p e r t y o f e i th e r , o w n e d b y h im o r h e r
b e fo re m a r r ia g e , a n d t h a t a c q u ir e d a f t e r w a r d b y g if t, b e q u e s t, d e v is e
b r d e s c e n t, is t h e s e p a r a t e p r o p e r t y o f s u c h p e r s o n . A ll o t h e r p r o p ­
e r t y a c q u ir e d a f t e r m a r r ia g e b y e i t h e r h u s b a n d o r w ife o r b o th , is
c o m m u n ity p r o p e r t y , b u t w h e n e v e r a n y p r o p e r t y Is c o n v e y e d to a
m a r r ie d w o m a n b y a n in s t r u m e n t in w r itin g , t h e p r e s u m p t io n is t h a t
t h e t i t l e is th e r e b y v e s te d in h e r ’a s h e r s e p a r a t e p r o p e r t y . T h e
h u s b a n d h a s t h e m a n a g e m e n t a n d c o n tr o l o f t h e c o m m u n ity p r o p ­
e r t y , w ith a b s o lu t e p o w e r o f d is p o s a l o th e r t h a n te s t a m e n t a r y , p ro ­
v id e d t h a t h e c a n n o t m a k e a g if t o f t h e s a m e o r c o n v e y t h e s a m e
w ith o u t v a l u a b le c o n s id e r a tio n , u n le s s th e w ife c o n s e n ts in w r itin g .
T h e c o m m u n it y p r o p e r t y is n o t lia b le f o r t h e c o n t r a c ts o f t h e w ife
m a d e a f t e r m a r r ia g e , u n le s s s e c u r e d b y a p le d g e o r m o r tg a g e th e r e o f
e x e c u te d b y t h e h u s b a n d . T h e h u s b a n d is n o t lia b le f o r d a m a g e s o r
t o r t s c o m m it te d b y w ife e x c e p t in a c a s e w h e re h e w o u ld b e j o i n tly
lia b le w ith h e r i f t h e m a r r ia g e d id n o t e x is t. T h e s e p a r a t e p r o p e r t y
o f t h e h u s b a n d is n o t lia b le f o r t h e d e b t s o f t h e w ife c o n t r a c te d b e fo re
m a r r ia g e , a n d t h e s e p a r a t e p r o p e r t y o f t h e w ife is n o t lia b le f o r t h e
d e b t s o f h e r h u s b a n d , b u t is lia b le f o r h e r o w n d e b t s c o n t r a c te d b e fo re
o r a f t e r m a r r ia g e . A h u s b a n d a n d w ife m a y h o ld p r o p e r t y a s j o i n t
te n a n t s , t e n a n t s b y e n tr e a tie s , t e n a n t s in c o m m o n , o r a s c o m m u n ity
p r o p e r t y u p o n d e a t h o f w ife e n tir e c o m m u n ity p r o p e r t y g o e s to
h u s b a n d , w h e re a s o n d e a th o f h u s b a n d w ife g e ts o n e h a l f o f c o m ­
m u n i ty .
I n t e r e s t . T h e le g a l r a t e o f in t e r e s t is 7 p e r c e n t a n d 'i s d u e u p o n
ju d g m e n ts a f t e r r e n d i tio n a n d u p o n o t h e r o b lig a tio n s u n le s s th e r e
is a n e x p r e s s c o n t r a c t in w r itin g fix in g a d if f e re n t r a t e . T h e p a r t ie s
m a y a g r e e o n a h ig h e r r a t e o f in t e r e s t a n d o n t h e c o m p o u n d in g o f
s a m e , D ut p e r s o n a l p r o p e r t y b r o k e r s m a y c h a rg e n o t t o e x c e e d 2
(tw o ) p e r c e n t p e r m o n th .
J u d g m e n ts.
(S ee A c tio n s .)
U p o n filin g t h e j u d g m e n t ro il,
w h ic h is a r e c o r d o f t h e p r o c e e d in g s in th e ca se, i t m u s t b e d o c k e te d
b y t h e c le rk , w h e r e u p o n i t b e c o m e s a lie n u p o n a n y r e a l p r o p e r t y o f a
j u d g m e n t d e b t o r n o t e x e m p t f ro m e x e c u tio n in t h e c o u n ty , w h ic h t h e
s a id ju d g m e n t d e b t o r o w n s a t t h a t tim e , o r w h ic h h e m a y t h e r e a f t e r
a c q u ir e . T h is lie n c o n tin u e s f o r fiv e y e a r s , u n le s s t h e e n f o r c e m e n t
o f t h e j u d g m e n t be. s t a y e d o n a p p e a l. A j u d g m e n t is b a r r e d b y t h e
a c t o f li m it a ti o n w ith in fiv e y e a rs , u n le s s r e v iv e d b y le a v e o f c o u r t
u p o n m o tio n , o r b y a n a c tio n u p o n t h e ju d g m e n t. J u d g m e n t m u s t
f irs t b e s a tis f ie d o u t o f p r o p e r t y o f t h e ju d g m e n t d e b t o r w h ic h b a s
b e e n a t t a c h e d a n d in t h e c u s to d y o f t h e sh eriff.
L i e n s . M e c h a n ic s , m a te r ia l- m e n , c o n tr a c to r s , s u b - c o n tr a c to r s ,
a r t is a n s , a r c h ite c ts , m a c h in is ts , b u ild e rs , m in e rs , te a m s te r s , d r a y ­
m e n a n d a ll p e r s o n s a n d la b o r e r s o f e v e r y c la s s p e r f o r m in g la b o r
u p o n o r f u r n is h in g m a te r i a l t o b e u s e d in o r f u r n is h in g a p p lia n c e s ,
te a m s a n d p o w e r c o n t r ib u ti n g t o t h e c o n s tr u c tio n , a l te r a t io n , o r
r e p a i r o f a n y b u ild in g , w h a r f , b rid g e , d itc h , flu m e , a q u e d u c t, w ell,
tu n n e l, fe n c e , m a c h in e ry ,; r a ilr o a d , w a g o n r o a d , o n o th e r s tr u c t u r e ,
h a v e lie n s u p o n t h e p r o p e r t y u p o n W hich t h e y h a v e w o r k e d o r f u r ­
n is h e d m a te r ia l, a n d a n y p e r s o n p e r f o r m in g la b o r i n a m in in g c la im
h a s a lie n u p o n t h e s a m e , a n d t h e w o rk s o w n e d a n d u s e d b y t h e o w n e rs
f o r re d u c in g t h e o re s f r o m s u c h m in in g c la im , f o r t h e w o r k o r la b o r
d o n e . T h e c o m m o n c a r r ie r h a s a lie n u p o n t h e lu g g a g e o f a p a s s e n g e r
f o r t h e p a y m e n t o f h is f a r e . O n e w h o sells r e a l p r o p e r t y h a s a v e n ­
d o r ’s H en th e r e o n . I m p r o v e r s o f p e r s o n a l p r o p e r t y , d e p o s ita r ie s fo r
h ir e , v e t e r in a r y su rg e o n s , liv e r y s ta b l e k e e p e r s a n d p e r s o n s p a s tu r i n g
h o rs e s o r s to c k , h a v e a s p e c ia l lie n , d e p e n d e n t u p o n p o sse ssio n .
F a c to r s , b a n k s , a n d la u n d r y p r o p r ie to r s h a v e a g e n e ra l lie n , d e ­
p e n d e n t o n p o s se ss io n , o n a n y p e r s o n a l p r o p e r t y in t h e ir h a n d s .
S e a m e n h a v e g e n e ra l lie n s in d e p e n d e n t o f p o s se ss io n . O w n e rs o f
a n im a ls u s s d f o r p r o p a g a tin g p u r p o s e s h a v e a lie n f o r t h e a g r e e d
p r ic e u p o n t h e o ffs p rin g . L o g g e rs r e n d e r in g s e rv ic e s u p o n lo g s,
b o lts a n d o th e r ti m b e r h a v e a lie n th e r e o n f o r t h e a m o u n t d u e f o r
t h e ir p e r s o n a l s e rv ic e s.
E v e r y p e r s o n p e r f o r m in g w o rk o r l a b o r in , w itn , a b o u t , o r u p o n a n y
th r e s h i n g m a c h in e o r e n g in e , h o r s e - p o w e r , w a g o n , o r o t h e r a p p lia n c e
th e r e o f , w h ile e n g a g e d in th r e s h in g , h a s a lie n th e r e o n t o th e e x t e n t
o f t h e v a lu e o f h is s e rv ic e s, f o r te n d a y s a f t e r c e a s in g w o r k o r la b o r ,
p r o v id e d , W itb in t h a t tim e , a n a c tio n is b r o u g h t to r e c o v e r th e a m o u n t
o f t h e c la im , p e rs o n s r e p a ir in g o r a l te r i n g a n y p e r s o n a l p r o p e r t y b a v e
a lie n f o r t h e re a s o n a b le v a lu e o f s u c h s e rv ic e .
L im ita tio n s .
I f r e a l - e s ta t e is h e ld a d v e r s e ly f o r fiv e y e a rs , s u c h
a d v e rs e p o s se ss io n r ip e n s i n t o t i t l e i f c la im a n t p a y s ta x e s f o r 5 y e a rs ,
e x c e p t a g a in s t in f a n ts a n d p e r s o n s u n d e r d is a b ility . T h e p e r io d s
p re s c r ib e d f o r t b e c o m m e n c e m e n t o f a c tio n s o th e r t h a n f o r t b e r e ­
c o v e ry o f r e a l p r o p e r ty , a r e a s fo llo w s:
W ith in fiv e y e a r s : (I)
A n a c tio n u p o n a ju d g m e n t o r d e c re e o f a n y c o u r t o f t h e U n ite d
S ta te s , o r o f a n y S t a t e w ith in t h e U n ite d S ta te s .
(2) A ny a c tio n
f o r m e s n e p r o f its o f r e a l p r o p e r t y . W ith in f o u r y e a r s : ( i ) A n
a c tio n u p o n a n y c o n t r a c t, o b lig a tio n o r lia b ility f o u n d e d u p o n a n
in s tr u m e n t in w r itin g , e x e c u te d in th i s S ta te .
(2) A n a c t i o n . t o
r e c o v e r a b a la n c e d u e u p o n a m u t u a l o p e n a n d c u r r e n t a c c o u n t o r
u p o n a n o p e n b o o k a c c o u n t. W ith in th r e e y e a r s : (1) A n a c tio n
u p o n a lia b il ity c r e a te d b y s t a t u t e , o th e r t h a n a p e n a lty o r f o r f e itu r e .
(2) A n a c tio n f o r tr e s p a s s u p o n r e a l p r o p e r t y .
(3) A n a c tio n - f o r
ta k in g , d e ta in in g o r in j u r in g a n y g o o d s o r c h a tte l s , in c lu d in g a c tio n s
f o r t h e s p e c ific r e c o v e r y o f p e r s o n a l p r o p e r t y . (4) A n a c tio n f o r
re lie f o n t h e g r o u n d o f f r a u d o r m is ta k e , t h e c a u s e o f a c tio n in s u c h
c a s e n o t to b e d e e m e d t o h a v e a c c r u e d u n t i l t h e d is c o v e r y b y t h e
a g g r ie v e d p a r t y o f t b e f a c ts c o n s ti tu ti n g f r a u d o r m is ta k e ; W i th in
tw o y e a r s : (1) A n a c tio n u p o n a c o n t r a c t, o b lig a tio n o r li a b il ity

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B A N K I N G A N D C O M M E R C IA L L A W S — C A L IF O R N IA

n o t fo u n d e d u p o n a n I n s tr u m e n t o f w r itin g , o r f o u n d e d u p o n a n
i n s t r u m e n t o f w r itin g e x e c u te d o u t o f t h e S ta t e . (2) A n a c tio n o n a
d e b t , li a b il ity o r o b lig a tio n e v id e n c e d b y a n a b s t r a c t , g u a r a n t e e o r
c e r t if ic a te o f t i t l e ; a n d s u c h a c tio n s h a ll n o t h e d e e m e d t o h a v e a c c r u e d
u n t i l t h e d is c o v e ry o f t h e lo s s o r d a m a g e . (3) A n a c tio n a g a in s t
a s h e riff, c o ro n e r, o r c o n s ta b le , u p o n a li a b il ity in c u r r e d b y t h e d o in g
o f a n a c t in h is o ffic ial c a p a c it y , a n d in v ir t u e o f h is office, o r b y th e
o m is s io n o f a n o fficial d u t y , in c lu d in g t h e n o n - p a y m e n t o f m o n e y
c o lle c te d u p o n a n e x e c u tio n ; b u t t h i s s u b d iv is io n d o e s n o t a p p ly
t o a n a c tio n fo r a n e s c a p e . W i th in o n e y e a r : ( l ) A n a c tio n u p o n
a s t a t u t e f o r a p e n a lty o r fo rf e itu r e , w h e n t h e a c tio n is g iv e n t o a n
in d i v id u a l o r t o a n in d iv id u a l a n d t h e S ta t e , e x c e p t w h e n t h e s t a t u t e
im p o s in g i t p re s c rib e s a d if f e re n t lim ita tio n . (2) A n a c tio n u p o n
a s t a t u t e , o r u p o n a n u n d e r t a k in g in a c r im in a l a c tio n , f o r a f o r f e itu r e
o r p e n a lty t o t h e p e o p le o f th i s S ta t e . (3) A n a c tio n f o r lib e l, s la n d e r ,
a s s a u l t , b a t t e r y , f a ls e im p r is o n m e n t, o r s e d u c tio n , o r f o r in j u r y to
o r f o r t h e d e a t h o f o n e c a u s e d b y t h e w ro n g fu l a c t o r n e g le c t o f a n o t h e r ,
o r b y a d e p o s ito r a g a in s t a b a n k fo r t h e p a y m e n t o f a f o r g e d o r r a is e d
c h e c k . (4) A n a c tio n a g a in s t a s h e riff, o r o th e r o ffic er, f o r t h e e s c a p e
o f a p ris o n e r a r r e s te d o r im p ris o n e d o n c iv il p ro c e s s . (5) A n a c tio n
a g a i n s t a m u n ic ip a l c o r p o r a tio n fo r d a m a g e s o r in ju r ie s t o p r o p e r t y
c a u s e d b y a m o b o r r io t . W i th in s ix m o n t h s : , (1) A n a c tio n t o
r e c o v e r p r o p e r t y se iz e d b y ta x c o lle c to r. (2) T o r e c o v e r c o r p o r a ­
t i o n s to c k s o ld fo r d e l in q u e n t a s s e s s m e n t. T o a c tio n s b r o u g h t t o
r e c o v e r m o n e y o r o th e r p r o p e r t y d e p o s ite d w ith a n y h a n k , b a n k e r ,
t r u s t c o m p a n y , o r s a v in g s a n d lo a n s o c ie ty , t h e r e is n o lim ita tio n .
I f w h e n t h e c a u s e o f a c tio n a c c ru e s a g a in s t a p e r s o n , h e is o u t o f t h e
S ta t e , t h e a c tio n m a y b e c o m m e n c e d w ith in th e , t e r m h e r e in lim ite d ,
a f t e r h is r e t u r n t o t h e S ta t e , a n d if, a f t e r t h e c a u s e o f a c tio n a c c ru e s ,
h e d e p a r t s fr o m t h e S ta t e , t h e ti m e o f h is a b s e n c e is n o t p a r t o f th e
t i m e lim ite d fo r t h e c o m m e n c e m e n t o f t h e a c tio n . A n d i f t h e p e r ­
s o n e n t itl e d t o b r in g t h e a c tio n b e , a t t h e ti m e t h e a c tio n a c c r u e d ,
e i t h e r a m in o r, In s a n e , im p ris o n e d f o r a te r m le ss t h a n life, o r a m a r ­
rie d w o m a n , a n d h e r h u s b a n d Is a n e c e s s a r y p a r t y w ith h e r in c o m ­
m e n c in g s u c h a c tio n , t h e tim e o f s u c h d is a b i lit y is n o t a p a r t of th e
ti m e lim ite d to r t h e c o m m e n c e m e n t o f th e a c tio n . N o a c k n o w le d g ­
m e n t o r p ro m is e is s u ffic ie n t to t a k e a c a s e o u t o f t h e o p e r a t io n of
t h e s t a t u t e o f li m it a ti o n s , u n le s s t h e s a m e is in w r itin g , s ig n e d b y
t h e p a r t y t o b e c h a rg e d . P a r t p a y m e n t w ill n o t t a k e t h e c a s e o u t of
t h e s t a t u t e o f li m it a ti o n s . W h e re a c a u s e o f a c t i o n h a s a r is e n in
a n o t h e r S t a t e , a n d w o u ld b e b a r r e d b y t h e s t a t u t e o f l i m it a ti o n s of
t h a t S ta t e , a n a c tio n c a n n o t b e m a in ta in e d h e r e . T h e r e is n o lim it a ­
t i o n U p o n a c tio n s to r e c o v e r m o n e y o r p r o p e r t y w ith b a n k s o r t r u s t
c o m p a n ie s . (S ee A c c o u n ts .)
M a r r i e d W o m e n . W h e n a m a r r ie d w o m a n is a p a r t y t o a n
a c tio n h e r h u s b a n d m u s t b e jo in e d e x c e p t: (1) W h e n t h e a c tio n
c o n c e rn s h e r s e p a r a t e p r o p e r t y in c lu d in g t o r t s f o r p e r s o n a l in ju r ie s ,
h o m e s te a d p r o p e r t y a n d a c tio n s b e tw e e n h e r s e lf a n d h u s b a n d o r
w h e n s h e is liv in g s e p a r a t e a n d a p a r t f r o m h e r h u s b a n d b y r e a s o n
o f h is d e s e r tio n o r b y a n a g r e e m e n t in w ritin g . A m a r r ie d w o m a n
m a y b e c o m e a s o le t r a d e r b y t h e ju d g m e n t o f t h e s u p e r io r c o u r t o f
t h e c o u n t y i n w h ic h s h e h a s re s id e d fo r s ix m o n t h s n e x t p re c e d in g
t h e a p p lic a tio n . T h e h u s b a n d o f t h e s o le t r a d e r is n o t lia b le f o r
a n y d e b t s c o n t r a c te d b y h e r in t h e c o u rs e o f h e r s o le t r a d e r ’s b u s in e s s
u n le s s c o n t r a c te d u p o n h is w r itt e n c o n s e n t. A m a r r ie d w o m a n m a y
■convey w ith o u t c o n s e n t o f h e r h u s b a n d , a n d is n o t lia b le f o r t h e
d e b t s o f h e r h u s b a n d , b u t is lia b le f o r h e r o w n d e b t s c o n t r a c te d
b e fo re o r a f t e r h e r m a rria g e . S h e m a y c o n t r a c t a s a fe m m e s o le
s o a s t o b in d h e r s e p a r a t e p r o p e r t y . T h e w ife m a y m a k e a w ill o f
h e r s e p a r a t e p r o p e r t y . T h e e a rn in g s o f t h e w ife a r e n o t lia b le f o r
«the d e b t s o f h e r h u s b a n d .
M e c h a n ic s ’ L ie n s .
(S ee L ie n s .)
M o r t g a g e s . A n y i n t e r e s t in re a l p r o p e r t y w h ic h Is c a p a b le o f b e in g
tr a n s f e r r e d m a y b e m o r tg a g e d . A m o r tg a g e c a n b e c r e a te d , re n e w e d ,
o r e x t e n d e d o n ly b y w r iti n g e x e c u te d w ith t h e f o r m a litie s r e q u i r e d in
t h e c a s e o f a g r a n t o f r e a l p r o p e r t y . E v e r y t r a n s f e r o f a n i n t e r e s t in
r e a l p r o p e r t y , o t h e r t h a n in t r u s t , m a d e o n ly a s t h e s e c u r i ty f o r th e
p e r f o r m a n c e o f a n y a c t, is t o b e d e e m e d a m o rtg a g e , a n d t h e f a c t t h a t
t h e t r a n s f e r w a s m a d e s u b je c t t o d e fe a s a n c e o n a c o n d itio n m a y , f o r
•the p u r p o s e o f s h o w in g s u c h t r a n s f e r t o b e a m o r tg a g e , b e p r o v e d
■(except a s a g a in s t t h e s u b s e q u e n t p u r c h a s e r o r e n c u m b r a n c e r f o r
v a lu e a n d w ith o u t n o tic e ) a l th o u g h t h e f a c t d o e s n o t a p p e a r b y t h e
■terms o f t h e I n s tr u m e n t. A m o r tg a g e is a lie n u p o n e v e r y t h in g
t h a t p a s s e s b y a g r a n t o f t h e p r o p e r t y . A m o r tg a g e d o e s n o t e n t itl e
t h e m o r tg a g e e t o t h e p o s s e s s io n o f t h e p r o p e r t y . T h e a s s ig n m e n t o f a
■debt s e c u re d b y a m o r tg a g e c a rr ie s w ith i t t h e s e c u r i ty . W h e n a
m o r t g a g e is s a tis fie d o r th e m o r t g a g e I n d e b te d n e s s p a id , t h e m o r t •gagee m u s t s a ti s f y t h e m o r t g a g e o f re c o r d u n d e r p e n a lty .
A
m o r tg a g e e m a y fo re c lo se t h e r i g h t o f r e d e m p tio n o f t h e m o r tg a g e e ,
•unless e x p re s s ly s ti p u l a t e d J ;h e m o r tg a g e is n o t a p e r s o n a l o b lig a tio n
p a r t o f m o rtg a g o r.
N o te s a n d B ills o f E x c h a n g e .
(S ee B ills a n d N o te s .)
■ P le d g e .
(S ee C o lla te ra ls .)
¡ P o w e r s o f A t t o r n e y . A n a t t o r n e y in f a c t m a y b e a p p o i n te d f o r
a n y p u r p o s e f o r w h ic h a n a g e n c y c a n la w fu lly b e c r e a te d . P o w e r s o f
a t t o r n e y c a n o n ly b e c o n fe rre d b y a n in s t r u m e n t in w r itin g s u b s c r ib e d
b y t h e p r in c ip a l w h ic h m u s t p a r t ic u l a r ly s p e c if y t h e p o w e rs c o n ­
f e r r e d . I f t h e I n s tr u m e n t c o n ta in s a p o w e r t o c o n v e y o r e x e c u te
in s tr u m e n ts a ffe c tin g r e a l p r o p e r t y , i t m u s t b e d u ly a c k n o w le d g e d
a n d m u s t b e r e c o rd e d in t h e c o u n t y w ith in w h ic h t h e r e a l p r o p e r t y
t o b e c o n v e y e d o r a ffe c te d is s i t u a t e . N o s u c h in s tr u m e n t w h ic h h a s
b e e n so re c o rd e d is r e v o k e d b y a n y a c t o f t h e p a r t y b y w h o m i t w a s
e x e c u te d , u n le s s t h e I n s tr u m e n t c o n ta in in g s u c h r e v o c a tio n is a lso
a c k n o w le d g e d o r p r o v e d , c e rtifie d , a n d r e c o rd e d in t h e s a m e office
In w h ic h t h e in s t r u m e n t c o n ta in in g t h e p o w e r w a s r e c o r d e d . W h e n
a n a t t o r n e y in f a c t e x e c u te s a n in s tr u m e n t tr a n s f e r r i n g a n e s t a t e
in r e a l p r o p e r t y , h e m u s t s u b s c rib e t h e n a m e o f h is p r in c ip a l t o it,
a n d h is o w n n a m e a s a t t o r n e y in f a c t .

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P r o b a te L a w .
(S ee A d m in i s t r a ti o n o r E s t a t e s , C la im s a g a in s t
E s t a t e s of d e c e a s e d p e rs o n s , D e s c e n t a n d D is tr ib u tio n .)
T h e s u p e r io r
c o u r t h a s ju r i s d i c ti o n o f p ro c e e d in g s in p r o b a t e , a n d s u c h p ro c e e d in g s
m u s t b e in s t i t u t e d (I) I n t h e c o u n t y in w h ic h t h e d e c e d e n t w a s a
r e s id e n t: (2) in t h e c o u n t y in w h ic h h e m a y h a v e d ie d , le a v in g
e s t a t e th e r e in , h e n o t b e in g a r e s id e n t o f t h e S t a t e ; (3) in t h e
c o u n t y in w h ic h a n y p a r t o f t h e e s t a t e m a y b e , if t h e d e c e d e n t d ie d
o u t o f t h e S t a t e a n d w a s n o t a r e s id e n t.
(4) I n a n y c o u n t y in
w h ic h a n y p a r t o f t h e e s t a t e m a y b e , o r t h e d e c e d e n t n o t b e in g a
r e s id e n t o f t h e S t a t e n o r le a v in g a n e s t a t e in t h e c o u n t y o f d e a th .
(5)
I n o th e r c a se s w h e re a p p lic a tio n is f irs t m a d e , a n y p e r s o n in ­
te r e s te d m a y p e t iti o n fo r p r o b a t e o f a w ill o r m a y c o n te s t s u c h p r o ­
b a t e w ith in o n e y e a r. A n i n v e n to r y a n d a p p r a is e m e n t is r e q u i r e d
•of th e e x e c u to r o r a d m in is tr a to r w ith in t h r e e m o n th s . U p o n t h e
• re tu rn o f t h e in v e n to r y t h e c o u r t m a y s e t a p a r t f o r u s e o f t h e s u r •v iv in g h u s b a n d o r w ife, o r o f t h e m in o r c h ild re n , a ll t h e p r o p e r t y
« ex e m p t f r o m e x e c u tio n in c lu d in g a n y h o m e s te a d s e le c te d , p ro v id in g
«the s a m e w a s s e le c te d f r o m t h e c o m m o n p r o p e r t y o r f r o m t h e s e p s a ra te p r o p e r t y o f t h e p e rs o n s e le c tin g o r jo in in g in t h e s e le c tio n o f
t h e s a m e . I f n o n e h a s b e e n s e le c te d , t h e c o u r t m u s t s e le c t, d e s ig ­
n a t e a n d s e t a p a r t a n d c a u s e t o b e re c o rd e d a h o m e s te a d f o r th e
u s e o f t h e s u r v iv in g h u s b a n d o r w ife, o r o f t h e m in o r c h ild r e n , o r
i f t h e r e b e n o s u r v iv in g h u s b a n d o r w ife, t h e n fo r t h e u s e o f t h e m in o r
c h ild re n o u t o f t h e c o m m o n p r o p e r t y , o r if th e r e b e n o ' c o m m o n
p r o p e r t y , t h e n o u t o f t h e r e a l e s t a t e b e lo n g in g t o t h e d e c e d e n t. P r o p ­
e r t y so s e t a p a r t is n o t S u b je c t t o f u r t h e r a d m in is tr a tio n . I f u p o n


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

t h e r e t u r n o f t h e in v e n to r y i t a p p e a r s t h a t t h e v a l u e o f t h e w h o le
e s ta te d o e s n o t e x c e e d $ 1 .5 0 0 , t h e c o u r t m a y s e t a p a r t t h e w h o le
o f t h e e s t a t e f o r t h e u s e a n d s u p p o r t o f t h e f a m ily o f t h e d e c e a s e d .
P ro te s t.
(S ee B ills a u d N o te s .)
R e p l e v i n . T h e r e Is n o a c tio n o f r e p le v in In t h i s S t a t e , b u t th e
a c tio n o f c la im a n d d e liv e r y s u b s t a n t i a l l y ta k e s i t s p la c e . T h e
p la in tif f in a n a c tio n t o r e c o v e r t h e p o s se ss io n o f p e r s o n a l p r o p e r t y
m a y a t t h e tim e o f is s u in g t h e s u m m o n s , o r a t a n y tim e b e f o r e a n s w e r,
c la im th e d e liv e r y o f s u c h p r o p e r t y . A n a f f id a v it m u s t b e m a d e b y
t h e p la in tif f o r b y s o m e o n e In h is b e h a lf s h o w in g t h a t t h e p la in tiff
Is t h e o w n e r o f t h e p r o p e r t y , o r e n t itl e d t o it s p o s se ss io n , t h a t th e
p r o p e r t y is w ro n g fu lly d e t a in e d b y t h e d e f e n d a n t, t h e a lle g e d c a u se
o f d e t e n ti o n th e r e o f , a n d t h a t i t h a s n o t b e e n t a k e n f o r a t a x , a s s e s s ­
m e n t o r fine, o r se iz e d u n d e r a n e x e c u tio n o r a t t a c h m e n t , o r if so
s e iz e d t h a t i t is e x e m p t; a lso t h e a c tu a l v a lu e o f t h e p r o p e r t y . P la i n ­
tiff m u s t a ls o g iv e a b o n d in d o u b le t h e v a lu e o f t h e p r o p e r t y . T h e
d e f e n d a n t m a y g iv e t o t h e s h e riff a w r i t t e n u n d e r t a k in g in d o u b le
th e v a lu e o f t h e p r o p e r t y , a n d r e t a in t h e s a m e , b u t in c a s e h e fa ils
so t o d o t h e p r o p e r t y is d e liv e r e d t o t h e p la in tif f . T h i r d p a r tie s
m a y u p o n a f f id a v it o f o w n e rs h ip , c la im s u c h p r o p e r t y a n d s e c u re
i t s re le a s e u n d e r b o n d s . T h e j u d g m e n t in s u c h a c tio n is in t h e
a l te r n a t iv e f o r a r e t u r n o f t h e p r o p e r t y o r f o r i t s v a lu e in c a s e a d e ­
liv e r y c a n n o t b e h a d .
S t a t u t e o f F r a u d s . A w ill m u s t b e in w r itin g , e x c e p t a n u n ­
c u p a tiv e w ill. (S ee W ills.) A n a g r e e m e n t n o t t o b e p e r f o r m e d
w ith in a y e a r f r o m m a k in g i t m u s t b e in w r i t i n g ; a lso a s p e c ia l p r o m ­
is e t o a n s w e r f o r t h e d e b t , d e f r a u d , o r m is c a r r ia g e o f a n o t h e r ; a lso
a g r e e m e n ts m a d e in c o n s id e r a tio n o f m a r r ia g e o th e r , t h a n a m u tu a l
p r o m is e t o m a r r y . A n a g r e e m e n t f o r t h e s a le o f g o o d s a n d c h a tte ls
o r th in g s in a c tio n a t a p r ic e n o t le ss t h a n $ 2 0 0 , u n le s s t h e b u y e r
a c c e p t a n d r e c e iv e p a r t o f t h e s a m e o r a n y p a r t o f t h e p u r c h a s e
m o n e y . N o e s t a t e in la n d w ill p a s s , o th e r t h a n le a s e s n o t t o ex c eed
o n e y e a r, u n le s s in w r itin g . A n a g r e e m e n t a u th o r iz in g o r e m p lo y in g
a n a g e n t o r b r o k e r t o p u r c h a s e o r se ll r e a l e s t a t e f o r c o m p e n s a tio n
o r f o r a c o m m is s io n . A n a g r e e m e n t b y i t s t e r m s n o t t o b e p e r f o r m e d
in t h e lif e tim e o f t h e p r o m is e o r t o m a k e , d e v is e o r b e q u e a th b y w ill.
N o e v id e n c e is a d m is s a b le t o c h a rg e a p e r s o n u p o n r e p r e s e n ta tio n s
a s t o t h e c r e d it o f a n o t h e r , u n le s s t h e r e p r e s e n t a ti o n s b e in w r itin g .
H o w e v e r w h e re p r o m is o r h a s r e c e iv e d p r o p e r t y t o a p p l y p u r s u a n t
t o p r o m is e o r a d is c h a r g e o f a n o b lig a tio n i n c o n s id e r a tio n o f t h e
p ro m is e , o r w h e re a c r e d i to r p a r t s w ith v a lu e o r w h e r e t h e n e w p r o m ­
is e is s u b s t i t u t e d f o r t h e o ld d e b t, o r w h e r e le v y o r e x e c u tio n is r e ­
le a s e d o r th e r e is b e n e fit m o v in g t o p r o m is e f r o m a n y p a r t y o r w h e re
a f a c t o r u n d e r t a k e s f o r a c o m m is s io n t o g u a r a n t e e a sa le , c o n t r a c ts
t o a n s w e r f o r t h e d e f a u l t o f a n o t h e r n e e d n o t b e in w r itin g . T r a n s f e r
o f p e r s o n a l p r o p e r t y c a p a b le o f m a n u a l d e liv e r y , e x c e p t w in e in c e lla rs
a n a ta n k s , w h e n n o t a c c o m p a n ie d b y d e liv e r y a n d c h a n g e o f p o s se s ­
s io n a r e d e e m e d f r a u d u l e n t a s t o th i r d p a r tie s u n le ss n o tic e o f T n te n tti o n o f s a le is r e c o r d e d 5 d a y s b e fo re tr a n s f e r is m a d e i n a c c o r d a n c e
w ith la w .
S u p p l e m e n t a r y P r o c e e d i n g s . W h e n a n e x e c u tio n is r e t u r n e d
u n s a tis f ie d , t h e j u d g m e n t c r e d i to r c a n o b t a i n a n o r d e r r e q u i r in g t h e
j u d g m e n t d e b t o r t o a p p e a r a n d a n s w e r c o n c e r n in g h is p r o p e r t y b e fo re
t h e ju d g e o r r e fe re e a p p o i n te d b y h im , a ls o , in c a s e a f t e r t h e is s u in g
o f a n e x e c u tio n , u p o n p r o o f b y a f f id a v it t h a t t h e j u d g m e n t d e b t o r h a s
p r o p e r t y w h ic h h e u n ju s tl y re fu s e s t o a p p l y to w a r d t h e s a tis f a c tio n
o f t h e ju d g m e n t, t h e ju d g e m a y m a k e t h e o r d e r , a n d in s te a d th e r e o f ,
it i t a p p e a r t h a t th e d e b t o r is a b o u t t o a b s c o n d , h e m a y , b y o r d e r o f
t h e ju d g e , b e a r r e s te d a n d r e q u ir e d b y h im t o g iv e s e c u r i ty f o r t h e
ju d g m e n t, o r t h a t h e w ill a t t e n d fr o m t i m e t o ti m e d u r in g t h e p e n ­
d e n c y o f t h e p ro c e e d in g s , a n d t h a t h e w ill n o t in t h e m e a n ti m e d is ­
p o s e o f a n y p o r tio n o f h is p r o p e r t y , a n d in d e f a u l t o f s e c u r i ty h e m a y
b e c o m m it te d t o p ris o n .
T a x e s . O n t h e la s t M o n d a y o f N o v e m b e r o f e a c h jy e a r ta x e s b e c o m e
d e l in q u e n t , e x c e p t t h e la s t in s ta llm e n t o f t h e r e a l p r o p e r t y ta x e s , a n d
t h e r e a f t e r 15 p e r c e n t is a d d e d f o r d e lin q u e n c y ; p r o v id e d , t h a t if t h e y
b e n o t p a id b e fo re t h e l a s t M o n d a y in A p r il n e x t s u c c e e d in g , 5 p e r
c e n t is a d d e d f o r d e lin q u e n c y . O n t h e l a s t M o n d a y in A p r il, o f
e a c h y e a r , a ll th e u n p a i d p o r ti o n o f t h e r e m a in in g o n e - h a lf o f th e
t a x e s o n a ll r e a l p r o p e r t y is d e lin q u e n t, a n d t h e r e a f t e r 5 p e r c e n t is
a d d e d f o r d e lin q u e n c y ; a n d p r o v id e d f u r t h e r , t h a t t h e e n t i r e t a x o n
a n y r e a l p r o p e r t y m a y b e p a id a t t h e ti m e t h e f ir s t I n s ta l lm e n t a s
a b o v e p r o v id e d is d u e a n d p a y a b le ; a n d p r o v id e d f u r th e r , t h a t t h e
ta x e s o n a ll p e r s o n a l p r o p e r t y , u n s e c u r e d b y r e a l p r o p e r t y , s h a ll b e
d u e a n d p a y a b le I m m e d ia te ly a f t e r t h e a s s e s s m e n t o f s a id p e rs o n a l
p r o p e r t y is m a d e . P u b lic U ti l i t y c o r p o r a tio n s a r e ta x e d f o r t h e
s u p p o r t o f t h e S t a t e o th e r p r o p e r t y is t a x e d f o r c o u n t y a n d c i ty
p u rp o s e s .
W i l l s . E v e r y p e r s o n o v e r t h e a g e o f e ig h te e n y e a r s , of s o u n d
m in d , m a y , b y l a s t w ill, d is p o s e o f a ll h is e s ta te , r e a l a n d p e rs o n a l.
A m a r r ie d w o m a n m a y d is p o s e o f a ll h e r s e p a r a t e e s t a t e b y w ill w ith o u t
t h e c o n s e n t o f h e r h u s b a n d , a n d m a y a l t e r o r r e v o k e t h e w ill in lik e
m a n n e r a s if s h e w e re sin g le . H e r w ill m u s t b e e x e c u te d a n d p r o v e d
in lik e m a n n e r a s o th e r w ills. E v e r y w ill o t h e r t h a n a n u n c u p a tiv e
w ill m u s t b e in w r itin g , a n d e v e r y w ill o th e r t h a n a n h o lo g r a p h io
w ill a n d a n u n c u p a tiv e w ill, m u s t b e e x e c u te d a n d a t t e s t e d a s fo llo w s :
1. I t m u s t b e s u b s c r ib e d a t t h e e n d th e r e o f b y t h e t e s t a t o r h im s e lf,
o r s o m e p e r s o n in h is p re s e n c e , a n d b y h is d ir e c ti o n m u s t s u b s c r ib e
h is n a m e t h e r e to . 2. T h e s u b s c r ip tio n m u s t b e m a d e in t h e p re s e n c e
o f t h e a t t e s t i n g w itn e ss e s , o r a c k n o w le d g e d b y t h e t e s t a t o r to th e m
to h a v e b e e n m a d e b y h im o r b y h is a u t h o r i t y . 3 . T h e t e s t a t o r
m u s t, a t t h e tim e of s u b s c r ib in g o r a c k n o w le d g in g t h e s a m e , d e c la r e
to t h e a t t e s t i n g w itn e s s e s t h a t t h e in s t r u m e n t is h is w illi a n d 4.
T h e r e m u s t b e tw o a t t e s t i n g w itn e s s e s , e a c h o f w h o m m u s t sig n h is
n a m e a s a w itn e s s a t t h e e n d o f t h e w ill, a t t h e t e s t a t o r ’s r e q u e s t,
a n d in h is p re s e n c e a n d in t h e p re s e n c e o f e a c h o th e r . A n h o lo ­
g r a p h ic w ill is o n e t h a t is e n t ir e l y w r itt e n , d a t e d , a n d s ig n e d b y t h e
h a n d o f t h e t e s t a t o r h im s e lf. I t is s u b je c t t o n o o t h e r fo rm , a n d m a y
b e m a d e in o r o u t o f th i s S t a t e , a n d n e e d n o t b e w itn e s s e d . A w it­
n e s s t o a w ill s h o u ld a lw a y s w r ite h is n a m e a n d r e s id e n c e . A ll
d e v is e s o r g if ts t o a s u b s c r ib in g w itn e s s a r e v o id u n le s s t h e r e a r e two
o t h e r c o m p e te n t s u b s c r ib in g w itn e s s e s . N o w ill m a d e o u t o f th i s
S t a t e is v a lid a s a w ill in t h i s S ta t e , u n le s s e x e c u te d a c c o r d in g t o t h e
p ro v is io n s o f t h e co d e , e x c e p t t h a t a w ill m a d e in a S t a t e o r c o u n tr y
in w h ic h t h e t e s t a t o r is d o m ic ile d a t t h e ti m e o f h is d e a th , a n d v a lla
a s a w ill u n d e r t h e la w s o f s u c h S t a t e o r c o u n t r y is v a lid in t h i s S ta t e
a s t o p e r s o n a l p r o p e r ty . "Wills p r o v e n o u t o f s t a t e m a y b e r e c o r d e d
in c o u n t y w h e re t e s t a t o r h a s le f t o v e r e s ta te .
B e q u e s ts f o r c h a r i ty a r e v o id u n le s s m a d e m o r e t h a n 3 0 d a y s
b efo re d e a th a n d m u s t in n o ca se exceed m o re th a n o n e th ir d o f th e
e s t a t e u n le s s th e r e a r e n o le g a l h e ir s . W ills a r e r e v o k e d b y m a r r ia g e
u n le s s p r o v is io n f o r t h e s a m e o r a n i n t e n ti o n n o t t o p r o v id e c le a r ly
a p p e a rs.

B A N K I N G A N D C O M M E R C IA L , L A W S — C O L O R A D O

S Y N O P S IS OF

THE LAW S OF COLORADO
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Revised by Messrs. G
Denver.

and
G a r w o o d , Attorneys at Law,
<See Card In Attorneys’ List.)

arwood

A ck n ow led gm en ts. 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 than
those above enumerated, a certificate by the clerk of some court
of record of the county, city or district wherein such officer resides,
under the seal of such court, as to the official capacity, true signature
and authority of the person certifying such acknowledgment.
3. Out of the United States, before any judge, clerk, or deputy
clerk, of any court of record of any foreign kingdom, empire, republic
state, principality, province, colony, island possession or bailiwick,
before the chief magistrate or other chief executive officer of any
province, colony, island possession or bailiwick, before the mayor
or chief executive officer of any city, town, borough, county or mu­
nicipal corporation, having a seal, or before any ambassador, min­
ister, consul, consular agent, charge d’affaires, commercial agent,
or any vice consul, etc., or any diplomatic, consular or commercial
agent or representative, or deputy of any thereof, of the United
States or any other government or country appointed to reside in
the foreign country or place where the acknowledgment is made,
eaeh 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.
A ction s. 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.
A d m in istra tio n of E sta tes. All demands not exhibited in one
year 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 administra­
tion is provided for estates not exceeding $500.00. .(See Wills; Hiisfeand
and Wife; Descents and Distributions.)
A g en t. (See Partnerships.)
A llen s. N o restrictions as to aliens.
A rb itration . Differences may life 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 aroitrators.
A rrest. 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 th a tt 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.)
A ssig n m e n t. 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.
A tta ch m en ts. In actions on contracts, express or implied, the
plaintiff may have the defendant’s property attached, upon filing a
bond 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 performed, 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
o f the plaintiff. In justice courts, the ract that the debt is for farm
products, house, rent, household furniture and furnishing, fuel, gro­
ceries and provisions, clothing and wearing apparel for the debtor
or his family, is additional ground for attachment. Garnishee proc­
ess will issue in aid of attachment when money or property of the
debtor is found in possession of third persons; property of non-resi­
dents and absconding debtors can be attached as in most other States.

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B an k s, S ta te. Any number of persons, not less than three, may
engage in the business of banking: the capital stock must not be less
than from $10,000 to $50,000 dependent upon population, all of which
must be paid in cash before commencing banking business, and cer­
tificate thereof filed. 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 mote than 25 per cent of the total shares of
any other bank; nor may it hold or purchase any portion of its ownstock, or of the capital stock of any other corporation, unless such,
purchase is necessary to prevent loss upon a debt previously con­
tracted in good faith, or m other peculiar circumstances. Stock so
purchased must be sold within three years, and sooner if this can bedone without impairing th e 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 ainount 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 a felony, and,
on conviction, punished b y imprisonment in the penitentiary for not
more than twenty years, or by a fine or 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
bo 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. N o 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 satis­
faction 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. N o 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 con­
trol of the State Bank Commissioner. Usually no receiver can be
appointed, nor can a bank make an assignment for creditors. Every
bank makes reports of its condition to thfe commissioner five times
yearly. N o bank can do business without a certificate of authority
from the commissioner. Savings banks are subject to the state
banking law under a number o f special provisions and restrictions.
B ills of E x ch an ge. (See Commercial Paper.)
B ills of L ad in g and P rom issory N otes. (See Commercial Paper.)
C h a ttel M ortgages when recorded are good for two years where
sum secured does not exceed $2,500; for five years, when sum does not
exceed $20,000, and not exceeding ten years where sum secured
exceeds $20,000; but if the sum secured be greater than $2,500 mort­
gagee must annually record statement stating that the mortgage
secures a bona fide indebtedness, the portion which has been paid,
and the amount still due. Chattel mortgages may be. extended
after maturity, but not more than thirty days after maturity,
by filing an executed instrument of extension of mortgage with the
county recorder. As between the parties thereto, all chattel mort­
gages are good until the indebtedness is paid or is barred by the
statue of limitations. Mortgages of stocks of goods which reserve
possession and power of sale to mortgagor, are void as against credi­
tors and bona fide purchasers. Disposing of mortgaged property
is larceny. Chattel mortgagee, his agent or attorney, now allowed
thirty days after maturity of debt in which to take possession of
mortgaged chattels, and during said thirty days, 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 thirty days
after the maturity of the Indebtedness, be extendedgby 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.
C ollaterals. Persons holding stocks in corporations as collateral
security not personally liable as stockholders for corporate debts.
A pledgee of stock m ay nevertheless represent same at corporate
meetings. Transfer of stock either in pledge or otherwise, must be
noted on the books of the company within 60 days or the transfer
is void for some purposes.
C om m ercial 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 on demand, or at a fixed or determinable
time or times. The instrument may authorize that upon default
of payment of any installment, or of interest, the whole shall become
due, and in case of non-payment, the sale of collateral securities,
or confession of judgment, or waive benefit of any law intended
for the advantage of the obligor. An Instrument payable on
contingency 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 partners, must all indorse unless one has authority for all.
An instrument payable to a person as cashier 6r other fiscal officer
of a bank or corporation 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 Drima facie holder in due course:
but when the title of a person who has negotiated it is shown to be
defective, the burden is upon the holder to prove himself a holder
In due course. A qualified indorser warrants the genuineness of
the instrument; that he has a good title, and that he has no knowl­
edge of any invalidity. An unqualified indorser warrants the instru­
ment valid and subsisting. One indorsing an Instrument nego­
tiable by delivery is liable as Indorser. Except when excused,
presentment for payment, or acceptance, on the day when due is
necessary to charge drawer or indorser of an Instrument. Present­
ment must be made on due day, and notice of non-acceptance or
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
m ent, but he may again negotiate it. A qualified acceptance dis­
charges drawer and indorser unless they assent. Assent is presumed

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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. 1807. All instruments falling
due on Sunday or holiday are payable the next business day. In
Denver, during June, July and August, Saturday from twelve o’clock
noon until twelve midnight is a holiday, but negotiable instruments
falling due on Saturday are payable and protestable on Saturday or
next business day at the option of the holder. The provisions con­
cerning commercial paper in this state are practically the same as
in all states where the Negotiable Instruments act has been adopted.
C onveyances. N o 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. N ot 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 hot 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.)
C orporations.
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, number of
shares (not less than $1.00 or more than $100.00 per share), 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 fimits 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. Pee 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, saving banks, trust, deposit, and security
associations are individually responsible in double the amount of the
par value 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 Januray 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. N o meetings of the board of directors can be
held outside the State unless so provided by the Articles of Incor­
poration. Corporations may be dissolved by a two-thirds vote of
the entire stock. A corporation under the laws of Colorado, may
extend its charter by special meeting of the stockholders, called
by 10 per cent of the entire capital stock. Corporate life shall be
renewed for entire term, not exceeding twenty years. Foreign
corporations doing business in this State are not allowed a longer
term of corporate existence than domestic corporations of like char­
acter, but must file renewal certificates and pay fees therefor in the
same manner as domestic corporations, provided that such renewal
must not extend the life of the foreign corporation beyond the term
fixed by the State where it was organized. Generally no foreign
corporation shall have or exercise any corporate powers or hold or
acquire any real or personal property, franchises, rights, or privileges,
or be permitted to do any business or prosecute or defend any suit in
this State, until it has filed in the proper offices copy of its charter and
incorporation act, and designated an agent upon whom service of
process can be made, and until all prescribed fees including 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 M ay of each year, an annual
State corporation license tax to the secretary of the State of Colorado,
of two cents upon each one thousand dollars of its capital stock, and
every foreign corporation shall pay at the same rate upon that pro­
portion of its capital, property and assets located and employed In
Colorado.
Other provisions of the Revenue bill, approved March 22, 1902,
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.)
C ourts. 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 final appeal, and also has some
original jurisdiction, as in cases of habeas corpus, mandamus and
other remedial writs.
D a y s o f G race. Are abolished. (See Commercial Paper.)
D ep o sitio n s. 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 gover­
nor 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.
D escen ts an d D istrib u tio n s. 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,


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Federal Reserve Bank of St. Louis

then to his father and mother, share and share alike, ana if one dead,
then to the other; if no father or mother, then to his brothers and
sisters, and to descendants of brothers and sisters who are dead,
the descendants, collectively, taking the share of their immediate
ancestors in equal parts. 3. If none of the foregoing living, then to
the grandfather, grandmother, uncles, aunts and their descendantsthe descendants taking collectively the share of their immediateancestors 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 bom 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.
D ow er. 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 curtesy. (See Statutes.)
E xecu tion s. 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 within
twenty years from the date of entry but from and after twenty yearsfrom 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 hasthree 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.
E x e m p tio n s. 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 isoccupied 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; provisionsand 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 wagesdue at time of levy, under execution, attachment, or garnishment,
is exempt, when such family resides in the State and is dependant,
wholly or partially upon such earnings for support. If such wages
do not exceed $5 per week at the time of levy, they are entirely
exempt.
F rau d . 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 exe­
cution, contract or conveyance had made, or contrived withintent 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 defraud
the seller, sell, hypothecate, or otherwise dispose of them out of the
usual course of business, or secrete himself, or abscond, shall be
guilty of a misdemeanor.
F rau ds, S ta tu te of. The following must be in writing: Con­
tracts for leasing of landj 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 anotherevery 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 $50Jor more, unless the buyer accepts and receives part of such
goods or the evidence of some of them, or the buyer at the tim e
pays part of the purchase money. (See Sales of Personal Property.)
Garnishment. (See Attachments.)
H u sb an d an d W ife 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 *p arate use. Such property of the
wife is not liable for the husband’s debts. Wife may carry on trade
or business, sue and be sued, contract debts, and execute promissory
notes, bonds, bills of exchange, and other Instruments precisely as
if sole and may convey real estate without the husband joining in
the deed. Any chattel mortgage upon, or sale of, the household
goods used by the family, and any conveyance of, or mortgage upon,
a homestead, and any assignment of future wages, or sums to become
due in the future, when made by husband or wife residing with th e
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
education of the children are chargeable upon the property of both
husband and wile, 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 Home­
stead,” by an entry of record over his or her signature. Neither can
mortgage nor convey homestead without the signature of the other.
In te r e st. The legal rate is, 8 per cent, but any other rate not
exceeding 12 per cent may be fixed by agreement. Eight per cent is
allowed on overdue bonds, bills, promissory notes, and judgments.
County, town, and_ city warrants, and other like evidences or certif­
icates of municipal indebtedness bear 6 per cent interest from presenta­
tion. Twelve per cent is the maximum interest rate fixed by the usury >
law, of this state with certain exceptions where a higher rate is allowed
to licensed brokers, banks and some others.
J u d g m e n ts. 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.)
L im ita tio n s. Actions for the recovery of land must be brought
within twenty years after accrual of right. Actions for the recovery
of lands actually occupied by another under a connected title deducible of record or under tax or execution or other sale ordered by
court must be brought within seven years after possession taken.
If title is acquired after taking possession, statute runs from date
of acquiring title. Actual possession of land for seven years under
claim and color of title with payment of all taxes for said period,
constitutes the possessor owner according to the purport of his paper
title. The same is true of vacant and unoccupied lands, unless someone
with a better paper title pays the taxes for one or more years during:

B A N K IN G A N D

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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 trepass 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 capac­
ity, shall be brought within one year after the cause of action accrues,
also actions for assault and battery, false Imprisonment, slander
and libel; also actions for penalties or forfeitures of penal statutes
Bills of relief for fraud must be filed within three years after dis­
covery, 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 Instrument In writing,
or judgment or decree of any court, more than six years before the
commencement of the action, the statute of limitations may be pleaded
in bar of recovery. If a judgment has been rendered without this
State more than three months before suit in this State, and is based
on a cause of action more than six years old, such cause of action
can be pleaded in bar of the judgment. The constitutionality of
this latter provision has, however, been attacked, and is very doubt­
ful. (See 117 Fed. 400.)
M arried W om en . (See Husband and Wife.)
M ech a n ics’ L ien s. 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 Duilding, 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
following order: 1. Laborers or mechanics working by the day
or piece, without furnishing ma terial. 2. Sub-contractors and
material-men, whose claims are either entirely or principally for
materials, machinery or other fixtures. 3. All principal contractors.
Laborers are. allowed one month, material men two months, and the
original contractor three months after the completion of the structure,
within which to file claim of lien. Action to enforce such lien must be
commenced within six months after completion of the building
upon which it is claimed.
M ortgages. 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 is a mortgage. In case
the public trustee is named, the property is sold by him as provided
in the deed, after advertisement in a newspaper designated in the
trust deed, and such advertisement shall not be less than four weeks.
Upon a sale by the public trustee, a certificate of sale is issued. A
subsequent incumbrancer may redeem by paying the amount bid,
and the sum so paid shall be added to the amount of the subsequent
incumbrance. 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.
N o tes a n d B ills o f E x c h a n g e. (See Commercial Paper.)
P a rtn ersh ip s, L im ited an d Sp ecial. 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.
Pow ers o f A tto rn ey . 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.
P ro test. (See Commercial Paper.)
R ep lev in . 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 48 hours after
levy.
Sales o f P erson al P rop erty. 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 fraudulent and void against creditors, unless seller and
purchaser together, before sale, make inventory, showing quantity,
and cost price of the various articles; and unless purchaser makes
full inquiry of the seller as to names and addresses of all creditors
of seller, and the amount due to each, and obtains an answer; and
notifies each creditor of the proposed sale, the cost price, and the
proposed selling price; and unless the purchaser retains the inventory
and written answer at least six months after the sale. This act
does not apply to sales by legal representatives of public officers
conducting sales in their official capacity and there are some other
exceptions to this law. (See Husband and Wife.)
S u its. (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 half on or before
the last day of February, and the residue on or before the last day
of July of the year following the one in which they are assessed.
Tax sales are held in November when tax certificates are given to
purchasers on which treasurer’s deed may issue after three years.
Real estate sold for taxes redeemed any time until treasurer’s deed
issues. All mines and mining property of the class heretofore exempted
by the constitution of the State shall be assessed and taxed, and the
taxes levied and enforced by sale of the property taxed in default
of payment, as is provided by law in the case of other classes of taxable
real properties. Delinquent taxes carry interest at the rate of 12 to
18 per cent per annum. Household goods to the value of $200 belong­
ing to a head of a family are exempt.
W ills. Males of the age of twenty-one years, and females of
the age of eighteen years, may dispose of their 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


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1403

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 codicil, 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: De­
scents and Distributions. Administration of Estates.)
SY N O P S IS OF

THE LAW S OF CONNECTICUT
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Revised by L ou is M. R

osen blu th,

Attorney at Law, New Haven.

A cco u n ts. 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.)
A c k n o w led g m en ts. (See Conveyances.)
A ctio n s. There is but one form of civil action. Mesne process
in civil actions consists of a writ of summons or attachment, de­
scribing the parties, the court to which It ie returnable, and the timeand 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 constituting 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.
A d m in istra tio n o f E sta te s. 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 per­
son whom the court deems proper. Bonds, which must be furnished
by the administrators or executors, are usually made double the
estimated value of the personal property. Bonds of surety companies
authorized to do business in the State may be accepted. 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 o f 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.
A ffid avits. Civil actions do not ordinarily have to be supported
by affidavits. Affidavits have little weight as evidence, and are rarely
admitted as such.
A lien s. Any alien resident of any of the United States, and
any citizen of France, so long as France shall accord the same right
to citizens of the United States, may purchase, hold, inherit, or
transfer real estate in this State in as full a manner as native-born
citizens.
A rb itration . JParties 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.
A rrest. 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 unless
each cause of action in the complaint be such that execution may
be issued against the body of the defendant upon the judgment
founded thereon. A debtor committed to jail on civil process can
be released on taking poor debtors’ oath. The debtor will not be
released if his oath is overcome by rebutting evidence.
A ssig n m e n ts in In so lv e n c y . Operation of this section sus­
pended during continuance of U. S. Bankruptcy Act,
A tta c lim e n ts. 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 tort actions.
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 ten dollars to one hundred and forty
dollars, according to amount attached. An attachment 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.)
B a n k s. (See State Banks and Trust Cos.)
B ills of E x c h a n g e. (See Notes and Bills.)
B ills o f L ading. Uniform Bills of Lading Act passed in 1911.
C h a ttel M ortgages. (See Mortgages, Conditional Sales, and
Interest.)
C ollateral In h erita n ce or S u ccession T ax. (See Taxes.)

1404

B A N K I N G A N D C O M M E R C IA L L A W S — C O N N E C T IC U T

C o n d ition al Sales.
All contracts for the sale of personal prop­
erty, except household furniture, musical instruments, bicycles,
and such property as is by law exempt from attachment and exe­
cution, conditioned that the title thereto shall remain in the vendor
after delivery, must be in writing, describing the property and all
conditions of sale, and acknowledged before proper authority,, and
recorded in town where vendee resides. 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. •
C on tracts. Ordinary provisions of Statute of Frauds apply.
Courts of probate having jurisdiction of the settlement of the estate
of any deceased person may, concurrently with the courts of equity,
authorize the executor or administrator to convey the title of the
deceased in any real estate to any person j 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 anothei
person. Contracts for the conveyance of lands or of any interest
therein, may be recorded in the records of the town in which such
lands are; and such record shall be notice to all the world of the
equitable interest thus created. Gaming or wagering contracts
are void. Contract of incapable person pending appointment of
conservator or of spendthrift pending appointment of overseer, void
when selectmen have filed in town clerk’s office certified copy of
application in case of incapable person, and certified notice of pro­
posed appointment in case of spendthrift. No person who receives
a valuable consideration for a contract, express or implied, made
on Sunday, shall defend any action upon such contract on the ground
that it was so made until he restores such consideration. The Uni­
form Sales Act passed in 1907 covers contracts to sell. (See Sales
by Retail Dealers.)
C o n v ey an ces. 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 peace, commissioner of the school fund,
commisisoner 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, or any officer authorized to take the
acknowledgment 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 hus­
band, the wife need not join In the conveyance. No separate exam­
ination of a married woman is required in taking her acknowledg­
ment. Conveyances, including leases for more than one year, to
be effectual against any other person than the gran «or and his heirs
must be recorded on the town records of the town in which the land
lies.
C orporations. 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 and 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 all the incorporators, giving the name and location of the corpora­
tion, the nature of the business, the amount of authorized capital
stock, which must not be less than $2,000, number of shares and
par value of each, which shall not be less than $25, amount of capital
stock with which It will commence business, wnich 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 fifty cents on
every thousand of its authorized capital stock up to five million,
no payment to be less than $25.
Stock may be paid for either in cash or property, but if in prop­
erty, a majority of the directors must make and si«cn upon a record
book a statement of the amount for which the property is received
and its actual value. In case of fraud in such valuation, directors
personally liable.
Certificate of organization must be signed and sworn to by a majority
of the directors and filed in the office of the secretary of state, setting
forth the amount of stock subscribed for, amount paid in cash and
in property, names and addresses of subscribers with number of
shares subscribed for, statement that the directors and 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
it from the stockholder. The corporation may acquire its own
capital stock with the approval of three-fourths of the stockholders,
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.
I
JgL, ^
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.
m
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
in January or July, 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 $100 to the State.
C osts. For case before justice of the peace, actual cash costs
not less than $5; before city court from $5 to $25, 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.)
C ourts. Terms and Jurisdiction. Superior court holds one ^term
per year in each county for the trial of civil causes, and has juris­
diction in all law and equity cases exceeding $500, and exceeding
$100 in those counties where there are no courts of common pleas.


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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 $1,000, and in Litchfield County has
exclusive jurisdiction up to $1,000. Not less than four terms each
year are held in each of the counties named, and there are city courts
in many of the cities, and a district court at Waterbury, with limited
civil jurisdiction; also town courts in. many of the towns. Probate
courts have jurisdiction of the settlement of the estates of deceased,
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 justice of the peace has been transferred to city
court, except in cases of summary process and bastardy.
D ays of Grace. (See Notes and Bills of Exchange.)
D eeds. (See Conveyances.)
D ep o sitio n s. May be taken in a civil action by a judge or clerk
of any court, justice of the peace, notary public, or commissioner
of the superior court, when witness lives out of the State, or more
than twenty miles from place of trial, is over sixty years of age and
unable to attend the trial, is going to sea, or out of the State, or by
age and infirmity is unable to travel to court, or is confined in jail.
Reasonable notice must be given to adverse party. Deponents must
be cautioned to speak the whole truth, and 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
deliver 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 thereafter be the subject of a suit. The person taking
depositions may compel attendance of witnesses by subpoena and
capias.
D escen t an d D istrib u tio n of P rop erty in In te s ta te E sta te s.
(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 pro­
portions 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
representatives of brothers and sisters.
D ow er. (See Husband and Wife.)
E v id en ce. (See Courts, Insurance Company, Corporations.)
E x e cu tio n s. 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. Any judgment debtor, an
execution against whom shall have been returned unsatisfied 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.)
E x e m p tio n s. 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 $25, 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-stufls; the horse of any physician
or surgeon not exceeding $200 in value, and his saddle, bridle, har­
ness, and buggy, also his bicycle; one boat owned by one person,
with rigging, tackle, etc., not exceeding $200 in value, used for plant­
ing or taking oysters or clams or taking shad; one sewing machine
being property of any one person using it, or having a family; one
pew being property of any person having family who ordina­
rily occupy it, and lots in any burying ground; and all bene­
fits 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.
F oreign A tta c h m e n ts. Goods concealed in the bands of agents
or debts due the defendant are reached by foreign attachment which
takes the place of garnishment. No assignment of future earnings
will prevent their attachment when earned unless made to secure
a bona fide debt, due at the date of such assignment, the amount
of which shall be stated therein as nearly as possible, nor unless
the term for which they are assigned shall be definitely limited in
the assignment, nor unless recorded before such attachment in the
town clerk’s office in the town where the assignor resides, or if he
resides without the State, in the town where the employer resides, and
a copy left with the employer. (See also Exemptions.)
F o reig n C orporations. 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 secretary of the

B A N K I N G A N D C O M M E R C IA L L A W S — C O N N E C T IC U T
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. Every 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 thall thereupon record such certificate in a book kept
by him for that purpose and shall furnish a certified copy to be
recorded 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 fifteenth 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 Judgm ents. 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
process in the suit, or actual notice to him of the suit, or at least by
his having appeared in it, and thus submitting to the jurisdiction
of the court, jurisdiction presumed to have been properly exercised,
if court once had jurisdiction. Notice presumed of; resumption of
jurisdiction if required by practice in 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.
G arnishment. (See Foreign Attachments.)
G u aran ty C om p anies. (See Surety Companies.)
H olid a y s. (See Notes and Bills of Exchange.)
H u sb an d an d W ife. In all marriages contracted after April 19,
1877, neither husband nor wife acquires by force of the marriage
any right to or interest in any property held by the other before
the marriage or acquired after the marriage, except as to the share
of the survivor in the property of the other as hereinafter stated.
Wife married subsequent to April 19,1877, may hold and convey
real estate separate from her husband. Separate earnings of the
wife are her sole property. On the death of the husband or wife
the survivor shall be entitled to the use for life of one-third in value
of all the property, real or personal, owned by the other at the time
of his or her decease, after the payment of all debts and. charges
allowed against the estate. The right to such third can not be defeated
by will. Where there is no will the survivor shall take such third
absolutely, and if there are no children, shall take all of the estate
of the decedent absolutely to the extent of $2,000, and one-half
absolutely of the remainder of said estate.
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 nraying that said temporary
injunction may be continued until the final decision therein; and
unless said court shall be of opinion that great and irreparable injury


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1405

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
fi n a l 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.
In solven cy. Suspended, owing to United States Bankruptcy Act.
in te r e s t. 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. Any person who shall loan money upon a note
secured by mortgage on personal property, in which the sum of
money loaned is stated to be greater than the amount actually loaned,
or in which the rate of interest to be charged is greater than the rate
allowed by law to be charged by pawnbrokers (25 per cent per annum),
shall be punished by fine and imprisonment, and the mortgage and
note secured thereby shall be null and voil. No one other than
national or state bank or trust company or pawnbroker Shall charge
or accept more than 12 per cent per annum for interest, but this does
not apply to bona fide mortgages of real or personal property.
Judgm ents 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 return day. 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.)
L ien s. (Mechanics’ Liens
Mechanics’ liens for labor or mate­
rials furnished in the construction or repair of any building may be
filed by original contractor within sixty days after completion of work;
but sub-contractor must serve owner of building with notice of his
intention to claim a lien within sixty days after he shall have com­
menced to furnish materials or render services. Mechanics’ liens are
foreclosed same as real estate mortgages. Unless foreclosure^ is insti­
tuted, liens expire two years after filing. (For judgment Liens, see
Judgments.)
Lim itations 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 blit the common la y pre­
sumption of payment after twenty years exists.
Lim ited Partnerships. Such partnerships (except banking and
Insurance) shall consist of one or more partners, jointly and severally
responsible, as in ordinary cases, to be called general partners; and
one or more partners, furnishing capital to the partnership stock,
whose liability shall not extend beyond the capital so furnished by
them, to be called special partners. Such partnerships shall be
conducted under a company name, in which the name of one or more
of the general partners shall appear; and if any special partner s
name shall be used in said company name, he shall be held liable
as a general partner. No such partnership shall be deemed to be
formed until the persons forming it shall make, and severally sign
and acknowledge before any officer authorized to take the acknowl­
edgment of deeds, a certificate stating the company name and names
and residences of all the partners designating which are general
and which are special partners, and which of the general partners
are authorized to transact the partnership business and sign the
firm name, and also the amount of capital furnished by each special
partner and the time at which the partnership is to commence and
terminate: nor until such certificate, and also a certificate of the
amount actually paid in by each special partner, signed and sworn
to by such of the general partners as are authorized to transact
the partnership business, shall be 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
partnership shall be responsible only for the acts of the general partriers designated as specially authorized as aforesaid; and copies or
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 partner­
ship 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 certi­
ficate filed by said partnership, and if so, to what amount, and by
publishing not less than ohce a week for two weeks in a newspaper
published in county, the time at which the said renewed partner­
ship is to commence and terminate, signed by the partners thereto,
and specifying which are general and which are special partners.
If the requirements concerning 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 withdrawn, either in the shape of dividends, profits
or otherwise, at any time while such partnership continues; except
that any special partner may lawfully be paid from the assets of
sueh partnership, each year during the continuance thereof,, a sum
not exceeding 10 per centum upon the cash contributed by hun
to the capital stock; provided 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 circumstances 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.)
M ortgages 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:
machinery, engines, or implements situated and used in any manu­
facturing or mechanical establishment; machinery, engines, imple­
ments, cases, types, cuts, or Dlates situated and used in any printI ing, publishing, or engraving establishment; household furniture m a

1406

B A N K I N G A N D C O M M E R C IA L L A W S — D E L A W A R E

house used by the owner therein In housekeeping: hay
and tobacco In the leaf In any building. Plano, organ, melodeon, and
any musical Instrument used by an orchestra or band. Brick burned
or unburned, In any kiln or brickyard. Hotel keepers may mortfurSitu£e\. fixtures, and other personal chattels contained
the hotels occupied by them or employed in connection
therewith. Chattel mortgages are foreclosed by sale under order
or court. In aU chattel mortgages there must be a particular descrlpW!m&m each article of peraonal property. Judgment fer deficiency
after sale, permitted. Such sum in excess of 10 per cent per annum
th«IS
,a Pplie<1 astherefrom.
payment on account of
the nHni.fr,i?rriiSieresi
principal debt and shall I?e
be deducted
N otaries P u b lic hold office for two years from first day of FebSiS’T 91 .y ear in which commissioned, unless commission is sooner
S I? »
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
notary may be certified to by the clerk of the superior
court of the county in which he resides, except in New London County.
pleas6 th6 certiflcatlon is made by the clerk of the court of common

Notes and Bills of Exchange.
now in rorce.

Negotiable Instruments Act

A tto rn ey . Where a deed is executed by a power of
attorney it is recorded with the deed. Powers of attorney to convey
®s^ai;e must be executed and acknowledged in the manner required
lor the execution and acknowledgment of the conveyance itself.

Private Banks.

(See end of State Banks and Trust Companies.)

P rob ate Law . (See Administration of Estates, Appeals, AssignInsolvency, Collateral Inheritance Tax, Courts, Descent
and Distribution of Property, Husband and Wife, and Wills.)
P ro test. (See Notes and Bills of Exchange.)
R ecords. Warranty, mortgage, quitclaim deeds must be recorded
m 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
r1
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.)

Redem ption.

(See Mortgages.)

R ep lev y . Replevin lies for goods wrongfully detained, in which
the plaintiff has a general or special property with right to immediate
possession. A writ of replevin can not issue except upon an affidavit
in which the affiant states the true value of the goods to be replevied,
and that he believes that the plaintiff is entitled to the immediate
possession of the same, nor until the plaintiff furnishes a bond with
sufficient surety In a sum double the value of the property. This
bond or recognizance must be signed by the obligors in presence
of at least one witness other than the authority taking the recog­
nizance.
f S a les. Uniform Sales Act passed in 1907.
S ervice. Service of a writ of summons in case of a resident is
made by reading it and the complaint accompanying It in the defend­
ant s hearing, or by leaving an attested copy in the defendant’s hands
or at his usual place of abode; in case of a non-resident, the several
courts, other than courts of probate, and the Judges, clerks, and
assistant clerks thereof, or any county commissioner, in turn tim#
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
m ay be brought to or pending in any court, when the adverse party,
or any person so interested therein, that they ought to be made
parties thereto, reside out of the State, or when the names or resi­
dences of any such persons in interest are unknown to the party
instituting the proceeding; and such notice having been given and
proved shall be deemed sufficient service and notice.
S ta te B an k s an d T ru st C om p an ies. A reserve fund of 15 per
cent of aggregate of deposits must be held and maintained in the
banking: offices of which 4-15 must be gold and silver coint demand
obligations of the United States or national bank currency. 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 national banks, state banks, or trust companies, located
in Bridgeport, New Haven, or Hartford, and of railroad bonds which
are legal investments for savings banks. No new loans or discounts
may be made when the reserve is below 15 per cent. Bank commis­
sioners may apply for appointment of a receiver when the reserve
falls below 15 per cent after thirty days’ notice.
No one person, corporation or firm may borrow more than 10
per cent of the amount of the capital stock paid in and surplus undi­
vided profits combined, of any state bank or trust company. This
does not apply to collateral loans. Penalty of $3,000 for violation
of this law. Paper of executive officers or clerks may not be dis­
counted. Loans to parties outside the State can only be made when
the loans and discounts in the aggregate amount 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 five reports, verified by oath, must be made each year
to the bank commissioners, exhibiting in detail the resources and
liabilities of the bank or trust company, ten days after receipt of
request therefor from the bank commissioners, which shall be published
in a newspaper in the county where the bank or the trust company
Is located. Penalty of $10 for each day of delay in transmitting
report.
Words “bank,” “trust,” or “savings” may only be used by banks,
trust companies and building and loan associations incorporated by
the United States or by the general assembly, but this shall not apply
to firms or individuals doing business as private bankers or brokers
under their own names, who deposit with the State treasurer a bond
of $10,000, or acceptable securities of that amount for the protection
of customers from styling themselves bankers in the conduct of their
business. Banks and trust companies maintaining savings depart­
ments must invest deposits according to the laws of the State con­
cerning investments of savings banks, and must make sworn state­
ments to the bank commissioners on October 1st in each year and
oftener if required by the commissioners, of the amount of such
deposits and the securities in which they are invested. A State Bank
or Trust Company m ay be incorporated under General Laws as pro­
vided in Chapter 194, Public Acts of 1913.

Suits.

(See Actions.)

S u rety C om p an ies. 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 Dersons or corpora­


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tions, on complying with certain requirements of law m ay be accepted
5» 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 must deposit with the
insurance commissioner a copy of its charter or articles of association
and sworn statement of the condition of its business. The insurance
commissioner may thereafter issue to such company a license to do
business in this State. Such company must appoint the insurance
commissioner its agent on whom process may 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. N o 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.
..T a x e s . Land may be sold for delinquent taxes after due advertising, 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 resi­
dent of Connecticut at the time of his decease, and all tangible prop­
erty within Connecticut possessed by a non-resident at the tim« of
his death which passed by gift, to take effect at death or by will to
any person, corporation, voluntary association or society, with exempMons in favor of charities and on certain particurla kinds of property.
Rates of the tax are 1 per cent of the value of all property in excess
or $5.000 passing to parent, husband, wife or child up to $100,000
with „graded increases; i per cent on property so passing to wife or
widow of a son, husband of a daughter, or brother or sister of the
decedent, up to $100,000; 5 per cent of the value of all property in
excess of $500 so passing to any person other than those hereinbefore
mentioned, up to the amount of $100,000: 6 per cent above that
amount.

Transfer of Corporation Stocks. (See Corporations.)
Trust Companies. (See State Banks and Trust Companies.)
Warehouse Receipts. Uniform Warehouse Receipts Act passed
W ills. 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 care ot ceme­
teries or graves, shall be made to any persons but such as are at
the time of the death of the testator in being, or to their immediate
issue or descendants. Wills must be in writing, subscribed by the
testator, and attested by three witnesses, each of them subscribing
in his presence, 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 if a child is bom to the
testator, and no provision is made in the will for such contingency,
such marriage or birth shall operate as a revocation of such will
A will or codicil is otherwise revoked by burning, canceling, tearing,
or obliterating it by the testator, or some person in his presence by
his direction, or by a later will or codicil. A devise or bequest to a
subscribing witness or to the husband or wife of a subscribing
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 non-residents 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.
W orkmen’s Compensation A ct. Passed in 1913.
SY N O P S IS OF

THE LAWS OF DELAW ARE
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Prepared and Revised by R ic h a b d R. K e n n e y , Attorney at Law,Dover.
(See Card in Attorneys’ List.)
A ck n o w led g m en t. (See Conveyances.)
A ctio n s. 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 four 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.
A ffid avits 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.
A ssig n m e n ts an d In s o lv e n c y . 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.
A tta c h m e n ts. 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
summons of garnishees. Attachment may be dissolved on entering
security to satisfy any judgment to the extent of the propertyjattached
that may be recovered against the defendant. On return of attach­
ment the court appoints three Demons as auditors of the claims of

B A N K I N G A N D C O M M E R C IA L L A W S — D E L A W A R E

1407

E x e cu tio n s are a lien upon personalty from the time the sheriff
^creditors; the creditor attaching is allowed a double share for his
received the writ, if actual levy be made within sixty days there­
■diligence, not to exceed full amount of debt. Any creditor not duly
after. Priority of lien remains in force five years. Execution
presenting his claim receives no share in the distribution. Plaintiff
may be issued within five years after date of judgment. An execution
its not required to give security. Wages are exempt from attach­
from a justice Is a lien from time writ is received, if levy be made
ment In New Castle County except for board or lodging. Foreign
within thirty days and priority of writ remains for two years. Execu­
■attachment m ay be issued against any person not an inhabitant
tion can not issue after three years without revival.. Goods and
of the State after a return of non est as in domestic attachment,
chattels of a tenant are liable to one year’s rent in preference to
■or upon affidavit being made “that the defendant resides out of the
the execution. There is no redemption on property sold under
State, and is Justly indebted to the plaintiff in a sum exceeding $50.“
execution or mortgage. In New Castle County wages for a month
Foreign attachment may also issue against a foreign corporation,
of employes of corporations are preferred to the execution. Stay
but in this case the amount of the real debt must be particularly
of six months is granted in courts of record upon judgments recorded
specified in the affidavit, and must exceed $50. Unlike domestic
for want of affidavit of defence, provided security be given within
attachments the plaintiff in foreign attachments has the benefit of
twenty days after judgment. In justice’s courts defendant may have
his own discovery and does not share with other creditors. It is
six months’ stay, upon pleading his freehold; nine months’ stay upon
similar to domestic attachment in all respects except as to appoint­
giving security.
m ent of auditors and distribution among creditors. The court or
any judge upon petition may investigate any allegation in affidavit,
E x e m p tio n s. No homestead law. Family pictures, bible, and
except as to the amount of the debt, and dissolve the attachment
library; lot In burial ground and pew in church; all wearing apparel;
df sufficient ground be not shown. Foreign attachment is otherwise
sewing machines in private families; tools of trade not to exceed $50
dissolved by entering special bail.
in Kent, or $75 in New Castle County; and to the head of a family
B a n k s. There is no general banking act and but one State bank,
in New Castle County $200 of personal property and in Kent County
■which was chartered by the legislature in 1807. Banking companies
$150, consisting of household goods only. No additional exemption
-can not be formed at present, except by special apt of the Legislature.
in Sussex. The provisions of the exemption law extend and apply
The holders of stock are taxed at the rate of one-fourth of one per
to
a person dying and leaving a widow, giving and securing to such
centum on the cash value of each share of capital stock. There
widow the same benefit of exemption that her husband would have had
have been recently several trust companies formed in the State,
if living. Wages are exempt from execution attachment in New Cas­
either by special act before the 1897 constitution, and by general
tle County except for board or lodging. Pianos and organs leased
•Corporation act since, which have been granted banking powers
or sold under contract exempt from execution process or distress
by special statute. Banks and trust companies are now subject to
for rent, provided the lessor or vendor notifies the landlord in
examination and inspection by insurance commissioner.
writing of the claim thereof.
B ills a n d N otes. Acceptance should be in writing on the bill.
F rau ds. Sale of goods void as to third parties, unless for a valu­
All checks, notes, drafts, or bills, foreign or inland, payable without
able consideration and the possession thereof be actually delivered
«time or at sight, are due on presentment without grace.
C h a ttel M o rtg a g es must be accompanied with an affidavit that
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
•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
promisee; for an amount between $5 and $25 must be proved by
one credible witness or some memorandum in writing signed by the
¡the acknowledgment thereof, is a valid lien for five years on personal
person to be charged therewith; for an amount exceeding $25 there
•property, the possession of which may remain in the mortgagor.
Chaims A g a in st E sta tes of D eceased P erson s are paid in the
must be some memorandum or promise in writing signed by the
following order; 1. Funeral expenses. 2. Bills for medicine, med­
party to be charged therewith.
ica l attendance, nursing, and necessaries for last sickness of the
G a rn ish m en t. All persons except public officers, attorneys, etc.,
deceased. 3. No more than one year’s wages of servants in house
are subject to summons as garnishees. Wages are not subject to
and laborer on a farm. 4. Rent for not more than one year, either
garnishment in New Castle County except for board or lodging.
growing due or in arrears. 5. Judgments and decrees in equity
against deceased. 6. Recognizances, mortgages, and other obliga­
H o lid ays. L egal. January 1st. February 12th. February 22d,
tio n s of record. 7. Obligations and contracts under seal. 8. Con­
Good Friday, M ay 30th, July 4th, first Monday in September, Thanks­
tracts under hand for the payment of money, delivery of goods,
giving Day, and Christmas, and Saturday afternoon in New Castle
wares or merchandise. 9. Other demands. Administration is
County. If legal holiday falls on Sunday the next day is observed.
■granted: 1. To the person entitled to the residue. 2. To one or
Negotiable paper falling due on legal holiday is due and payable on the
more of the creditors. 3. To any suitable person, resident or non­
next preceding secular day; if falling due on Saturday half-holiday, if
resident. Bond must be given for an amount double the value of
not presented for payment before noon, is not due till the next succeed­
the estate. Notice must be given of claims against the deceased
ing secular day.
within six months from granting of letters (except claims of record),
H om estead . There is no homestead law in Delaware.
■or executor or administrator is protected in paying debts .of a lower
In te r e st. Legal rate is 6 per cent. Any person who takes more
■grade. One year is allowed for settling the estate, and until the
for the use or the loan of money shall forfeit and pay to any one suing
expiration of that time, he need not make distribution, nor is he
for the same a sum equal to the money loaned, one-half for thé use
chargeable with interest on the assets in hand. He may be removed
of the State, and the other for the party suing.
upon sufficient cause. Letters granted in other states and produced
■under the seal of the officer oi^ou rt granting the same, is competent
J u d g m e n ts of courts of record are liens upon all real estate of the
authority for him to act in th iP sta te.
debtor in the county where judgment is entered from their date, for
C on tracts are joint and several, unless otherwise expressed.
a period of ten years and may be revived and kept alive and a lien
C on veyan ces o f B e a l E sta te must be under seal (a scroll is
by SEI. FA. or agreement before expiration of ten years from date of
•sufficient), and should be executed before one witness at least. Deed
entry. This lien may be extended into either or both the other
may be acknowledged out of the State before any consul-general,
comities. Judgments can only be obtained in this State upon judg­
•consul, or commercial agent of the United States, duly appointed
ments in other states by suit, upon a certified copy Of the record of
in any foreign country at the places of their respective official residence;
said judgment authenticated under the Act of Congress passed
before the judge of any district or circuit court of the United States,
M ay 26, 1790. Transcripts of judgments recovered before justices
or the chancellor or any judge of a court of record of any state, terriof the peace may be entered in the superior court and thus be made
-tory, or country, or the mayor or chief officer of any city or borough,
liens on real estate after execution and return by Constable on goods
and certified under the hand of such chancellor, judge, mayor, or
of defendant. Satisfaction must be entered within sixty days after
officer, and the seal of his office, court, city, or borough, by certificate
payment.
-endorsed upon or annexed to the deed; or such acknowledgment
L im ita tio n s. Contracts not under hand and book accounts three
or proof may be taken in any such court and certified under the hand
years, bills and notes under hand six years. Judgments and special­
of the clerk or other officer of said court, and the seal of said court
ties
are merely presumed to have been paid after the lapse of twenty
In like manner. In case of such certificate by a judge, the seal of
years, but this presumption may be overcome by proof to the con­
•his court may be affixed to his certificate, or to a certificate of at­
trary.
All Judgments must be renewed- witnin ten years in order
testation of the clerk or keeper of the seal. Such acknowledgment
to preserve their lien on real estate. The statute does not begin to
may also !be taken by any commissioner of deeds for this State, or
run in favor of non-resident debtor until he come into the State, in
by a notary public of any state or territory. Wife must join in deed
such manner that he may be served with process, and if a debtor
to bar dower, and husband to bar curtesy. A deed by a corpora­
remove after the cause of action has accrued, the time of his absence is
tion may be executed and acknowledged by the president or other
not computed. On recognizances of sheriffs’, administrators’, or
^presiding officer duly authorized by resolution of the directors, trustees,
executors’ bonds, within six years from date. Bond of guardian
-or other managers, or by the legally constituted attorney of such cor­
within three years from the determination of guardianship.
poration under its corporate seal. Deeds must be recorded within
three months after sealing and delivery, to avail against creditors,
M arried W om en retain their real and personal property owned
mortgagee, or bona fide purchasers, without notice.
at marriage or received from any person other than the husband.
C orporations. General Corporation Act for all purposes other
May receive wages for their personal labor, and prosecute and defend
than banking. Each stockholder is individually liable for the amount
suits for preservation and protection of their own property, as if
-of capital stock not paid in in proportion to the amount subscribed
unmarried, and the rents, issues, and profits of their separate estate
by him. Corporations of other states may be sued in this State,
are not controllable by the husband. Dower: The widow is entitled
and the property of the same found here may be seized by attachment.
to one-third part of all the lands and tenements whereof her husband
All foreign corporations must file with the secretary of state, state­
was seized at any time during her marriage, unless she shall have
ment of assets and liabilities, and the name of its authorized agent
relinquished such right, for and during the term of her natural life.
upon whom process may be served: must pay a State tax of $50,
If her husband die without issue or the children of issue she takes a
•and fees of secretary of state (this State tax Is paid but once) must
m oiety instead of a third part of the real estate. A married women
file with the prothonotary of each county the name of authorized
of the age of twenty-one years and Upward may dispose of her prop­
agent upon whom process may be served.
erty, both real and personal, by will, without the written consent
C osts. Non-resident plaintiffs may be required to give security
of her husband, but subject to his right of courtesy. Two or more
•for costs.
witnesses are necessary for a will. Husband and wife may testify
C ourts. Terms and Jurisdiction. The different, courts of the
In all civil actions in which either or both are or may be parties to
S tate are as follows: Supreme court; regular term at Dover third
the suit.
Tuesday in June and January. Court of chancery and orphans’
M ortgages of B e a l P rop erty are executed and acknowledged like
court; regular terms, New Castle County, at Wilmington, on the
other deeds. They become a lien from the time they are lodged
fourth Monday in March and second Monday in September; Kent
with the recorder. Upon foreclosure of same there Is no redemption
¡County, at Dover, third Monday in March and third Monday In
of property. A purchase money mortgage should be recorded within
September; Sussex County, at Georgetown, second Monday in March
thirty days to avail against a subsequent innocent holder.
and first Monday in September. Superior court, and court of general
■sessions are held in New Castle County at Wilmington the first Mon­
P roof of C laim s. The full individual names of plaintiffs and
day in January, March, June, and November and third Monday in
defendants, together with style of doing business, must be stated;
September, in Kent County at Dover, the first Monday in July and
or if a corporation, the laws of what state under which incorporated.
th e third Monday in February, April, and October, and in Sussex
One of the plaintiffs, if a partnership, or the treasurer or cashier
■County the first Monday in February, April, and October and last
of a corporation, must make affidavit to the amount claimed, giving
Monday in June in Georgetown. Oyer and terminer meets on call
an itemized copv of the cause of action attached thereto. It is
of Judges. Jurisdiction—The superior court has jurisdiction in all
advisable to have the affidavit made before a notary public, though
civ il cases, but If suit be brought for less than $50, costs will not
it may be made before others. (See Affidavit.)
be recovered. Justice’s jurisdiction. $200.
P ro test. (See Bills and Notes.)
D ep o sitio n s. In any suit pending, the prothonotary, on appli­
B e p lev in . The writ issues out of the superior court to obtain
cation. enters a rule commission on the part of the applicant to any
possession
of goods unlawfully taken or unlawfully detained. No
commissioner of the State or other person. The commission Issues
affidavit is required, but before the officer to whom it is directed
on ten days’ notice of interrogatories filed. Exceptions to interroga­
can execute it the plaintiff or some substantial person for him must
tories must be filed before the commission issues, and are heard
enter into bond to such officer in a penalty of double the value of
before a judge at chambers. Exceptions to the execution must be
the goods to be replevined, conditioned to prosecute the suit with
filed within two days after publication. If the commissioner employ
effect, etc. Defendant may give counter bond and retain the goods.
a clerk, add “The clerk by me employed In taking, writing, tran­
S u m m o n s may be served on the defendant by stating the sub­
scribing, and engrossing the said depositions, having first duly taken
stance of it to him personally at any time before the return of the
’the oath assigned to the said commission according to the tenor
I writ, or by leaving a copy of it at his usual place of abode in the
■thereof.”


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1408

B A N K I N G A N D C O M M E R C IA L ' L A W S — D IS T R IC T O F C O L U M B IA

presence of some adult person six days before the return thereof.
Against a corporation may be served on the president or head officer, if
residing in the State, and if not, on any officer, director, or manager
of the corporation or duly authorized agent named for said services.
In chancery service may be had by publication under order of the
chancellor. Prom a justice service must be personal if forthwith,
otherwise four days must intervene before hearing.
T axes 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, and such lien
has preference to all other liens against him. General assessments
are made every four years.
W ills .; Any person of the age of twenty-one years or upward,
of sound mind, may make a will as well of real as personal estate.
Every will must be in writing and signed by the testator, or by some
person subscribing the testator’s 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
the 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 wit­
nesses 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.

S Y N O P S IS OF

THE LAW S OP
THE DISTRICT OF COLUMBIA
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Prepared and Revised b y J o h n B . L a h n e b , Esq., Attorney at Law,
Washington.
A ck n o w led g m en ts. 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.
A c k n o w led g m en t Of D eed s, 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 Statò 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
any secretary 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.
A ctio n s,- The common law forms of actions are used except as
modified by statutes.
A d m in istr a tio n . The probate court, a special term of the
supreme court of thè 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 of the deceased not to exceed double the
value of the personal estate. By act of Congress, certain trust com­
panies incorporated thereunder may act as executor or administrator
without bond, and corporations having power under their charters
may act as sureties in all cases where individuals can. Creditors 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 residents in
District of Columbia are subject to Claims of local creditors for one
year after death.
A ffid a v its. Affidavits for use in the District of Columbia should
be taken before a justice of the peace, notary public, judge of ‘a ny
court of record, or a United States commissioner.
Aliens.' Allens may hold personal property In the District of
Columbia, and may acquire real estate by descent. Alien corporations
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.
A p p eals. Appeals will lie from the municipal court to the supreme
court of the District of Columbia where more than $100 is involved,
and in actions for the recovery of possession of real estate. Appeals
may be taken from the supreme court of the District of Columbia to
the court of appeals of the District of Columbia. Appeals may be
taken from the court of appeals to the supreme court of the United
States :
s
1. Ih cases where jurisdiction o f trial court is in issue.

2.

Prize cases.

3. Constitutional questions or treaties involved.
‘ 4. Where validity of any authority exercised under U. S., b 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.


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Federal Reserve Bank of St. Louis

A tta c h m e n ts may issue at Institution of suit-or subsequently,
upon affidavit of plaintiff or his agent, supported by that of one or
more Witnesses, showing the grounds of his claim and right to recover,
and that defendant is a non-resident, or evades service of process, or
is about to remove, assign, dispose of, or secrete property with intent
to hinder, delay, and defraud creditors, or that the debt was fraudu­
lently contracted. Creditor must give bond, with approved surety
or sureties, to be approved by the clerk, in twice the amount of his
claim for costs and damages if attachment is wrongfully sued out.
B ills an d N otes. ' The common law of England relative to bills
and notes, except where changed by statute, governs all cases in which
they are involved. A law similar to the New York Negotiable Instru­
ments Law is now in force in this District. (See Legal Holidays and
Protest.)
C h a ttel M ortgages. 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 timé within said ten
days Vhen it is delivered to the recorder of deeds to be recorded.
C ollaterals. 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.
C ontracts: 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.
C orporations. 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 thejrare 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 ior
the first year, by the stockholders, at such time and place as may be
provided by the by-laws. The fee of the recorder for filing all certi­
ficates of incorporation where capital stock Is authorized is forty
(40) cents on each $1,000 of the amount of the capital stock of the
corporation, as set forth in its certificate, provided that no fee shall
be less than $25.
C ourts in session continuously throughout the year. Suits on
contracts, accompanied by sufficient affidavit of right to recover,
result in judgment in twenty days, exclusive of Sundays and legal
holidays, after day of service on defendant, unless defendant files an
affidavit setting forth facts which,' if true, would in law constitute
a valid defense.
D ays of Grace abolished.
D^cdS. 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 t hi s . .. .day o f ............ in the y e a r . . . by me........
o f........./ . ., witnesseth: That In consideration of (here insert con­
sideration), I, the said............ do grant unto (here insert grantee’s
name), o f............ 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.
D ep o sitio n s. 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 any chancellor, justice, or judge or clerk of
any Court of any State or Territory or other place under the sover­
eignty of the United States, or any notary public or justice of the
peace within any place under the sovereignty of the United States:
Provided, that no such person shall be eligible to take such deposition
who is counsel or attorney for any party to the cause, or who is in
anywise interested in the event of the cause.
D escen t an d D istrib u tio n . The ordinary rules of descent may
be stated as follows: 1. If an Intestate leaves a child or children, or
descendant of such child or children, his property descends to such
child or children, or their descendants, subject only to the dower right
of the widow, if there be one. 2. If the estate descended to the
Intestate on the part of the father or mother and there be no child or

1409

B A N K I N G A N D C O M M E R C IA L L A W S — F L O R ID A
the descendant of any child, then to the brothers and sisters and their
descendants. 3. If none, to the mother or father or the ancestors
of the intestate and their descendants of the blood of the mother or
father, grandmother or grandfather, as the case may be, subject to the
widow’s dower. 4. If none, then to the husband or wife and their
kindred in equal degree, equally. 5. No distinction between whole
and half blood on part of parent from whom estate descended. 6. If
there be no heir, the lands shall escheat to the District of Columbia
Personal Property: if a widow and no child or descendants, parent,
brother or sister or descendants, the widow shall have the whole,
tf child or descendants, the widow shall have one-third o n ly if in
child or descendants, but parent, brother, etc., the widow shall have
one-half. The surplus shall go as follows: (1) If children or descen­
dants, to them equally per stirpes; (2) If no child or descendants and
a father, then tq the father; (3) If no father, but a mother, then to
the mother; (4) If none, but a brother or sister or descendants, to
them equally per stirpes; (5) If none, to collateral relations in equal
degree; (6) There is no distinction between the whole and half blood;
(7) No representation after descendants of brothers and sisters;
(8) Beyond the fifth degree, the personal estate goes to the Dis­
trict of Columbia. (9) The- husband on death of the wife is entitled
to all her personal property in possession without administration, but
administration Is usually resorted to for protection of parties dealing
with the husband.
D ow er. 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.
E v id en ce. (See Depositions.)
E x e cu tio n s. 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.
E x e m p tio n s. (Actual residents.) In addition to wearing
apparel, etc., household furniture to the value of $300, Implements
of debtor’s trade or business to the value of $200, stock for carrying
on business to amount of $200, one horse, harness and cart, wagon
or dray, and earnings of married men or heads of families, not to
exceed $100 per month for two months. Exemptions are only
allowed where the. party claiming such is the head of a family or
householder residing in the District.
F o reig n J u d g m e n ts. 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.
G a rn ish m en t. After Judgment the writ of garnishment may
issue against specific property or credits in the hands of the garnishee
and on the return of the writ, if there be credits, the judgment or
condemnation follows. The writ of garnishment can not be issued
against the United States or the District of Columbia.
H u sb a n d and W ife. 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 property
of which she dies intestate. On the death of the wife intestate her
entire personal estate becomes the property of her husband. The
husband is not liable for the debts of his wife contracted before
marriage. A husband, who willfully neglects to provide for wife or
minor child under Bixteen years, in destitute circumstances, may be
adjudged guilty of a misdemeanor, and may be fined, or imprisoned,
by the court having jurisdiction.
In te r e st. 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.
J u d g m en ts. Every judgment is good and enforceable by an executionjssued 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 not liens on real estate until recorded in the supreme court of the
District of Columbia.
J u risd ictio n . (See Actions, Appeals, and Municipal Court.)
L egal H olid a y s. Legal holidays are January 1st, February 22d,
May 30th, July 4th, first Monday in September (Labor Day), Decem­
ber 25tb, 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. Every Saturday is a legal half
holiday and notes falling due on that day are not protested until
Monday. Process is not issued or served by the marshal after 12
o’clock on Saturday.
L im ita tio n s. 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.
M arried W om en . (See Husband and Wife.)
M ortgages. Mortgages are almost entirely supplanted by deeds
of trust, requiring no court proceedings to foreclose,. Joining the wife
is necessary to bar dower.
M u n icip a l C ourt. This court which takes the place of what was
formerly known as the justice of the peace court has jurisdiction
to the amount of $500. This jurisdiction is exclusive when the
amount claimed for debt or damages or value of personal property
does not exceed $100, and concurrent with the supreme court of the
District of Columbia When it exceeds $100 and not in excess pf $500
with right of certiorari in cases of concurrent jurisdiction. ,


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P artn ersh ip s. 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 numbei 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.
P ro test. 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. Whero
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.
R ecords. 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.
T axes. One and one-half per centum upon assessed value of
property, real and personal. Penalty of 1 per cent per month for
default in payment. Taxes are payable in May of each year. New
assessments are made every three years, for real estate (unless Improve­
ments are put on) and every year for personal property by a per­
manent Board of Assessors.
T ru st C om p anies. Trust companies canlbe 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 \rtth the provisions for the organization of trust companies under
the laws of this District.
W ills. . All wills and testaments must be In writing and signed by
the testator, or by some other person in his presence add 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. Anys.will
executed after January 17, 1887, and before January 1, 1902, devising
real estate, from which it shall appear that it was the intention of
the testator to devise property acquired after the execution thereof
shall be deemed, taken and held to operate as a Valid devise of all
such property; and any will hereafter executed, which shall by words
of general Import devise all of the estate or all of the real estate of
the testator shall be deemed, taken and held to operate as a valid
devise of any real estate acquired, by said testator after the execu­
tion thereof, unless an intention shall appear to the contrary. Where
a devisee or legatee dies before the tastator, leaving Issue, such issue
stands in the place of the deceased devisee or legatee unless a contrary
intention appear from the will.

SY N O P S IS OF

THE LAWS OF FLORIDA
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Revised by M. E. M

orey,

Attorney At Law, Pensacola.

A cco u n ts. Open accounts are barred in three years.
A ck n o w led g m en ts 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 CountryConveyances 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:

1410

B A N K IN G A N D

C O M M E R C IA L L A W S — F L O R ID A

State of Florida,
i
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 th e uses and purposes therein expressed
and the said............................................ ............ .......... wife of the s a i d. . . .
• • ------- • • • • ------ 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 th is............... day o f................
,,
. .
.
Notary Public.
M y commission expires.................................................. (see notaries.)
A ctio n s. 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 défendant 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
tnc 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.
A d m in istra tio n o f E sta te s . 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 two years from date of notice given by adminis­
trator to present same. Debts due more than five years prior to death
are barred, saving to married women, minors and persons non compos
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.
A ffid a v its may be made before any judge, clerk of the circuit and
supreme courts, justice of the peace, or notary public.
A lien s. No distinction between and citizens, except that they are
not allowed to vote.
A p p eals. 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 far as it relates to filing of
transcripts of records and proceedings thereon and filing assignment
of errors, the duty of appellate court in giving judgment, In causing
execution of Its decrees and quashing writs of error, are applicable
to appeals in chancery. Notice of appeal in chancery must be filed
with clerk and recorded in minutes. This gives appellate court juris­
diction.
A rb itra tio n . 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.
A rrest. No arrest for non-payment of money unless It be for non­
payment of a fine lawfully imposed.
A ssig n m e n ts an d In s o lv e n c y . 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.
A tta c h m e n t 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 fraudulently disposing of same, or
actually removing, or is about to remove, beyond the judicial circuit
in which he she, or they reside. Attachment may also issue for a debt
not due, upon affidavit stating that the debt Is actually existing, and
that the defendant is actually removing his property beyond the
limits of the State, or is fraudulently disposing of his property for
the purpose of avoiding the payment of his just debts or demands, or
is fradulently secreting his property for such purposes. Proof must
also, be exhibited to the officer by affidavit other than that of the plain­
tiff, of the existence of the special ground. The making of the affi­
davit causes all debts to mature for the purposes of the suit. Plaintiff
must give bond, with two securities, in at least double the debt or sum
demanded. 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 garnish­
ment may be Issued at commencement of suit or at any time after­
ward, provided the plaintiff, his agent or attorney, will make affidavit
that he does not believe the defendant will have in his possession,
within the State and county, visible property on which a levy could
be made, sufficient to satisfy such execution as he believes he shall be
able to obtain, and that affiant expects to obtain a judgment for a
specified amount.
Banks. No banking company shall be organized with a capital
less than $50,000, except that banks with a capital of not less than
$15 ,000 may, with approval of comptroller, be organized in any city
or town containing not more than 3,000 inhabitants, and that banks
with a capital stock of $25,000 may, with the approval of the comptrol­
ler, be organized in any city or town of not more than 6,000 inhabitants
Savings banks may have not less than $20,000 capital. Banks
are formed as other corporations are, and can not begin business until
authorized by the comptroller. The comptroller of the State may
inspect and supervise the business of the bank, except national banks,
and inspect and examine its boobs, papers, documents, minutes, and


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Federal Reserve Bank of St. Louis

everything pertaining to the acts of the bank. Banks are required
to make a semi-annual return to the State comptroller of resources
and liabilities, and advertise in January of each year amount of stock,
property, and contractual indebtedness. Before organization thewhole of the capital stock must be paid in cash.
Stockholders areindividually liable to the extent of their stock at the par value thereof,
in addition to the amount invested in said shares. Directors must becitizens of the United States, and own ten shares of stock of $100per share. The comptroller, with the aid of the courts, winds up th e
affairs of insolvent banks.
B ills of L ad in g. Bills of lading are evidence against the carrier ot
the direction by which freights are to be received, carried, and delivered
—collector or holder of commercial paper, attached to bill of lading not
a warrantor of the quantity or quality of the goods represented thereby,
except by express contract in writing, and the officers agents, and
employes of the carrier are required to comply with the terms of thebill of lading under penalty of criminal prosecution.
C h a ttel M ortgages an d D eed s of T ru st. All conveyances in­
tended to secure the payment of money are mortgages. Chattelmortgages must be recorded or the property delivered to mortgagee
to make them effectual against bona fide creditors and purchasers for
value. Injunction will be granted against the removal of mortgaged
persqnalty from the State; can only be foreclosed by bill in chancery
unless under $100, and upon personal property, when a common law
action may be brought in justice of the peace court, and mortgage filed
with precipe. The form and effect of trust deeds have not been dis­
turbed by statute. It is a criminal offence to mortgage personal prop­
erty more than once without the consent of first lienor.
Collateral Security. It is a misdemeanor to sell, pledge, loan, or
in any way dispose of collateral security without the consent of pledgor.
A written agreement may be made at the time of making the pledge
for the sale of the collateral in such-manner and upon such terms asthe parties may desire.
C on tracts. S ta tu te of F rau ds. In order to bind an admin­
istrator personally, or any one for the debt or default of another, or
one upon an agreement made in consideration of marriage; or upon*
contracts for the sale lands, tenements, or hereditaments or any uncer­
tain interest therein, or for any lease thereof for a period longer thanone 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.
C on veyan ces. (See Acknowledgments.) All conveyances of real
estate, or any interest therein for a term of years of more than twoyears, must be by deed in writing, signed, sealed and delivered in thepresence of at least two subscribing witnesses; and in order to bo
effectual against subsequent grantees or incumbrances, must berecorded. The wife’s separate estate can be conveyed only by th e
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 unpaid upon sub­
scription. Charter fee of $2 for every $1,000 of capital stock, payable
to the State, but no fee Is less than $5 and none over $250.
C osts. Non-resident plaintiff required to give $100 bond to secure
costs. The defendant may have suit dismissed if bond is not given.
C ou rts. Circuit courts hold two terms a year in each county,
except in first and eleventh circuits where they hold three term»
a year, and have original jurisdiction in all equity cases, also in all
cases at law not cognizable by Inferior courts. 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.
D a y s of Grace are abolished.
Depositions may be taken upon commission when witness reside»
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 tim e
before commission is issued. Printed instructions for the guidance of
commissioners usually accompany commission. Fees of not less than
$5.00 a witness are to be taxed as costs by the clerk and paid by losing
party.
D escent and D istribution of Property. Property descends: l.
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 tosurvivor. 4. If no father or mother then 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 id
the following course: l . To grandfather. 2. To grandmother,
uncles and aunts. 3. To great-grandfathers. 4. To great-grand­
mother, brothers and sisters of great-grandfathers, etc., passing first
to nearest lineal male and then to lineal female ancestors and their
descendants. The estate of an infant decedant, 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. I d
case no father, mother, brothers, or sisters or their descendants sur­
viving, then it descends according to the general rules of descent
prescribed by statute. Half-bloods 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 survivor­
ship.
Dow er. Deceased may not by will cut off his widow’s right todower. 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, if there are two or more children, toone-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 thehusband die intestate, without children, the .wife takes the wholeestate, or dower, at her election.
E v id en ce. 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 persoD
deceased, no evidence of a transaction or communication between»
such lunatic or deceased person and the opposing party or those underwhom he claims, can be given by the opposing party, unless such evi­
dence is first offered in behalf of such lunatic representatives, legatees,
devisees, etc.

B A N K IN G

A N D C O M M E R C IA L L A W S — F L O R ID A

E x e cu tio n s. 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.
E x e m p tio n s 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. The wages of every laborer who
Is the head of a family residing in the State, are exempt from garnish­
ment.
F o reig n C orporations. Commercial corporations can do business
in this State without restriction upon complying with requirements
as to foreign corporations, provided its name is not the same or so
nearly similar to any domestic corporation as to cause confusion.
Tf no officer in State upon whom service of process can be made,
such service may be made upon any agent transacting business for
it in the State.
F o reig n J u d g m e n ts. 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.
F raud. (See Limitations of Actions.) Obtaining money or prop­
erty under false pretense or by falsely personating another, are punish­
able criminally.
G a rn ish m en t. (See Attachment.)
G u a ra n ty C om p anies. Guaranty Companies are permitted to
become surety upon bonds for all purposes after complying with certain
statutory requirements.
H o lid a y s. Whenever reference is made, In contracts to be per­
formed in Florida, to legal holidays, such day shall be understood to
be the days mentioned under title Notes and Bills of Exchange, and
Good Friday.
H u sb an d a n d W ife. 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 intérest 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.
In ju n c tio n s . 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; and to prevent the removal from the State of
mortgaged personal property.
In so lv en cy . Statutes suspended by national bankruptcy law.
In su ra n ce C om p anies. Foreign and domestic, are placed, by
statute, under control of insurance commissioners, composed of State
treasurer. State comptroller, and attorney-general. 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.
In terest. Eight per cent Is allowed on judgments and contracts
where interest is payable but no rate Is specified. Contract for more
than 10 per cent is usurious, and all interest forfeited.
J u d g m e n ts 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.
L ien s. 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, must be recorded within three months, 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.
L im ita tio n s o f A ctio n s. Civil actions can only be commenced
within the following periods after thp 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
inning- cattle, and any action by the State for a statutory penalty or
forfeiture, one (1) year.
M arried W om en retain their property, real or personal, owned
a t 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 one-


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Federal Reserve Bank of St. Louis

1411

third of all personalty; or may at her option take as an heir equally
with the children of the husband, and if there are no children she will
inherit all the property, real and personal.
M inors. 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. _A11 other contracts made by
them are voidable, except for necessaries.
M ortgages of real estate must be executed and proved or acknowl­
edged in the same manner as deeds, and, to be effectual against credi­
tors or bona fide purchasers, must be recorded. Are foreclosed by
bill in eauity 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.
N o ta ries. 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.
N otes an d B ills of E x c h a n g e. 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. Bills of exchange, bank checks,
and promissory notes which are presentable for payment or acceptance
on Sunday, New Year’s Day, Christmas Day, 3d of June, 4th of July.
22d of February, 19th of January, 26th of April, first Monday in Sep­
tember, any general election day, and Saturday (except demand paper,
which may be presented before 12 o’clock Saturday unless the whole
day is a holiday), or any day appointed by the President of the United
States or by the Governor of the State as a day of thanksgiving or fast­
ing or prayer or other religious observances, Shrove Tuesday or Mardl
Gras in every city in which there is a carnival association organized
for the purpose of celebrating it, shall be deemed presentable for
payment or acceptance on the secular or business day next succeeding
such holiday.
P artn ersh ip , L im ite d , an d Sp ecial. None.
P ow ers o f A tto rn ey . 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.
P rob ate L aw . (See Administration of Estates.) The county
judge has original jurisdiction of all matters relating to the administra­
tion of estates of decedents.
P ro test. (See Notes and Bills of Exchange.)
R ecords. 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.
R ed em p tio n . None, excepting tax sales.
R ep lev in 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 o f P rocess. 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. (See Foreign
Corporations.)
S u its. 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 m ay 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.
T e stim o n y . (See Depositions.)
T ransfer o f S tock . 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.
W arehouse R eceip ts. The warehouseman may give a receipt for
goods deposited with him, describing such goods, and such receipt is
negotiable, and transfers title to the holder.
W ills. Any person' over twenty-one years old and of sound mind
may make a will. This includes married women. 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 wills are good as to personal property.
Revocation may be by subsequent will or codicil attested like the
original, or by burning, cancelling, tearing or obliterating the same
by the testator or by his direction and consent, or by the act and
operation of law. ! Wills must be probated before admittance in evi­
dence. Foreign wills, when duly probated according to laws of the
State, where made and duly recorded in this State, are as effective
as wills executed in this State. Foreign wills are construed according
to law of State where they are executed.

1412

B A N K IN G A N D

C O M M E R C IA L L A W S — G E O R G IA

SY N O P S IS OF

THE LAW S OF GEORGIA
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Revised by B r o w n & R a n d o l p h , P a r k e r & S c o t t , Attorneys
at Law. Atlanta. (See Card in Attorneys’ List.)
A ck n o w led g m en ts. (See Deeds.)
A ctio n s. All distinction between suits at law and In equity Is
abolished. Equitable relief can be had In superior courts of law.
A d m in istra tio n o f E sta te s. 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 oft 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.
A ffid a v its. Pleas and defenses in the courts of this State which
are required to be under oath, may be made before any official of
the State or county where the oath Is made, who is authorized by
the laws of such State or county to administer oaths. Prima Facie
the official attestation of the officer is evidence that he was author­
ized to act. Any non-resident seeking equitable relief, when called
on to verify proceedings, should be sworn before a commissioner of
this State, or a Judge of a court of record where the oath is made,
With the attestation of the clerk of such court that the signature of
the judge is genuine, and that the court over which he presides is a
court of record.
A lien s. 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, dnd conveying real estate.
A p p eals. (See Courts.)
A rb itra tion . Under the law of Georgia disputes and controversies
relating to rights, or property, may be submitted to arbitration.
A rrest. The constitution of Georgia declares that there shall be
no imprisonment for debt. But in an action to recover personal
property 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 satisfac­
tion of the court that it is without his power to produce it.
A ssig n m e n ts. Assignments for the benefit of creditors are per­
mitted.
A tta c h m e n ts. 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 attem pting 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 fraudulent 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.attachm ent, 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.
B a n k s. Any number of persons, not less than three, may form
a corporation for the purpose of carrying on the business of banking.
Such corporations, when organized, has power to hhve 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 convey 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 fifteen of the members of the corporation, who must be owners
and holders of one or more shares. No bank shall be chartered with­
out a capital subscription in good faith of, at least $25,000, of which
not less than 20 per cent, and in no case less than $15,000 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,
statements showing the resources of the bank or corporation, at the
dose of business on any day specified by th bank examiner. No
bank shall loan to its officers any money without good collateral, or
other ample security, and when such loan exceeds, 10 per cent of the
capital stock it shall not be made until approved in writing by a


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Federal Reserve Bank of St. Louis

«najority 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, and the value of all stocks and bonds actually
owned and held, below 25 per cent of demand deposits. No bank
or corporation doing a banking business shall loan to any one person,
unless such loan is amply secured by good collateral security, more
than 10 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 lawrful 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. If the assets of a bank are. insufficient
to pay its liabilities, a receiver when appointed, shall bring suit against
the stockholders in his own name for their unpaid subscriptions. 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 collec­
tion. If any insolvent bank or banker, with notice of such insolvency,
shall receive money or general deposits, and fail to pay the depositor
within three days after demand, such banker or officer in charge of the
bank receiving the deposit shall be punished as prescribed in the
penal code. The State has a special lien for all public money de­
posited.
B ills o f L ad in g and P rom isory N otes. A bona fide assignee
of a bill of lading of goods wdll be protected in his title against the
seller’s right of stoppage in transit. It will not be necessary to protest
promissory notes In order to bind the endorser except in the following
case: 1. Where the paper is made payable on its face at a bank or
banker’s office. 2. Where it is discounted at a bank or banker's
office. 3. Where it is left at a bank or banker’s office for collection.
Accommodation endorsors, sureties and endorsors 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.
C ollaterals. 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.
C orporations. Power to create corporations in this State Is vested
in the general assembly and the superior court. Said courts may
grant charters to all corporations except banking, insurance, canal,
navigation, express, and telegraph companies and railroads. The
general assembly may grant charters for the corporations above
enumerated. 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 corpora­
tions the liabilities of the stockholder is measured by the amount of
unpaid stock subscription due by him. In the charter of many banks
now organized 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 one dollar or be liable to a penalty of $50. Voluntary
dissolution of a corporation may be granted by the Superior Court
upon petition filed by the Corporation if authorized by two-thirds of
capital stock. Lost stock certificates must be established by peti' tion to Superior Court.
C osts. 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.
C ourts. 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, administrations of
estates, and of the conduct of administrators, executors and guardians.
COUNTY COURTS have monthly and quarterly sessions. Their juris­
diction is limited to controversies not exceeding $300.
CITY
COURTS hold four sessions per annum, but the city court of Atlanta
has six terms. The jurisdiction of city courts is unlimited, except in
matters of divorce, titles to land and administration of equitable relief.
SUPERIOR COURTS have jurisdiction of all suits and contro­
versies and have exclusive jurisdiction in equity powers, divorce
cases, and suits involving titles to land, and on the criminal side ex­
clusive jurisdiction of all cases involving life or imprisonment in the
penitentiary.
D eed s. 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 offloer 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 equit of redemption remaining in the maker, can not
be levied upon until the debt to secure which the deed has been paid
off. Under the law of Georgia these deeds can not be foreclosed as
mortgages, the notes they are given to secure must be sued to judg­
ment, the land must be re-conveyed to the grantor, and then levied
on, but the lien of the Judgment relates back to the date of the con­
veyance. In the Federal courts, however, foreclosure can be made
In equity as in the case of ordinary mortgages. Usury will, however,
void such a conveyance.

B A N K I N G A N D C O M M E R C IA L L A W S — G E O R G IA
D ep o sitio n s. Testimony Is taken in this State by written inter­
rogatories where the witness is a female, or where the witness does
not reside in the county where the suit is pending, or by reason of disa­
bility is unable to attend court. In counties within this State, having
a population of over 20,000, depositions may be taken upon five days’
notice to the other party of the time and place at which the witness is
to be examined. This latter process cannot be used for taking testi­
mony outside of the State. In taking answers to interrogatories,
which must be authorized by a commission issued for such purpose
by the court here, two commissioners must act. Commissioners must
be disinterested and not related to either party, or connected with
the ease; attorneys of the parties are incompetent. None of the parties
to the case, nor their agents or attorneys, can be present when the
commission is executed. The witness can only write his answer in
the presence of the commissioners. It is usual, and the better practice,
for one of the commissioners to write the answers of the witness as
they are given. Depositions may be written with the typewriter,
and commissioners may adjourn their sittings from day to day. The
following instructions for taking testimony are Important; Instruc­
tions for taking answers to Interrogatories: T. 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 insért the county and State
County o f .......... .............. >bt’- where the commission is executed.)
By virtue of a commission from t h e ............... .. court o f .....................
county. We have caused thè person in said commission named to come
before us,, who being duly sworn true answers to make to certain
interrogatories thereto annexed, deposeth and answereth as follows:
(Here insert answers of the witnesses to each interrogatory in order.
3. Let the witness sign the answers; then say: “Answered, sworn to,
and subscribed before us, this . . . . day o f .................19. . . . ” - Then
sign your own names, adding the words “Commissioner (L. S.)” after
each name. 4. Seal all up together, using two wafers, each com­
missioner writing his name with “Commissioner” across a wafer or
seal. 5. State the case on the package, and address it to the clerk
of the court issuing the commission. 6. If it is to go by mail, get
the postmaster to receipt on the package. “Received from one of
the commissioners (giving his name) the within Interrogatories, to be
forwarded by due course of mail,” naming his post-office. Testimony
thus taken must be sent by mail, or by some person specially author­
ized by the commissioner to carry it to the court.
D escen t an d D istrib u tio n of P rop erty. The husband is the
sole heir to his intestate wife, unless she leave children, and in that
event the husband and children shall inherit per capita, but the
descendants of children shall take per stirpe. If a man die without
children, or the descendants of children, leaving a wife, the wife is
his sole heir. If there are children, or those representing deceased
children, the wife shall take a child’s part, unless the shares exceed
five In number, in which case the wife shall have one-fifth part of the
estate. If the wife elects to take her dower, she has no further Interest
in the estate. Children stand in the first degree to the intestate, and
inherit equally. Posthumous children stand upon the same footing
with other children. Lineal descendants of children stand in the
place of their deceased parents, and take- per stirpe, and not per
capita. Brothers and sisters stand in the second degree and inherit
if there be no widow or children, or representatives of children.
The half-blood on the paternal side Inherit equally with the whole
blood. The father, if living, Inherits equally with brothers and sisters,
and stands In the same degree. If there be no father, and the mother
is alive, she shall inherit in the same manner as the father would.
Real estate descends direct to the heirs, and personal estate to the
administrator. But real estate is subject to administration for the
purpose of paying debts, and If necessary, for distribution.
D ow er. In this State the wife Is entitled to an estate for life In onethird of all lands of which the husband dies seized or possessed at the
time of his death, or to which the husband obtained title in right of
his wife. There is no necessity for renunciation of dower in this State,
and a married woman, on that question, need not Join with her hus­
band in conveying land, except in cases where, before 1866, he obtained
real estate belonging to his wife, by virtue of the marital relation.
E x ecu tio n s. 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.
E x e m p tio n s an d H o m estead s. 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
oare and support of dependant females of any age, who is not the
head of a family, shall have exemption of realty, or personalty, or
both, to the aggregate of $1600. The debtor shall have power to waive
or renounce, in writing, his right to the benefit of exemption above
stated, except as to wearing apparel and not exceeding $300 worth
of household and kitchen furniture, and provisions. The homestead
or exemption may be sold by the debtor and his wife, If any, with the
sanction of the judge of the superior court of the county where the
debtor resides, or the land is situated. The proceeds to be re-invested
upon the same uses. A general waiver in writing, of the homestead,
or exemption, is good.
F o reig n C orporations. All corporations, except those chartered
and organized under the laws of this State, arè 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.)
F raud. Contracts, awards, marriages, judgments, sales, and wills
are void when they are brought about and procured by fraud. Prom-,
issory notes when procured by fraud are void in the hands of the holder,
who so procures them. The statute of frauds, as of force In Georgia,
requires the following obligations to be in writing, signed by the party,
or his authorized agent, to be binding; 1. A promise by an executor,
administrator, guardian, or trustee, to answer in damages out of his
own estate. 2. A promise to answer for the debt, default, or mis­
carriage of another. 3. An agreement made upon consideration of
marriage, except marriage articles as otherwise provided. 4. Any
contract for the sale of lands, or any Interest in or concerning them.
5. Any agreement that Is not to be performed in a year. 6. A
promise to revive a debt barred by statute of limitations or bankrupt­
cy. 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.
G a rn ish m en ts. 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. Wages of laborers, journeymen and mechanics, are ex­
empt from process of garnishment.


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Federal Reserve Bank of St. Louis

1413

In te r e st. The legal rate of Interest in Georgia Is 7 per cent, but
is legal when contracted for in writing. Parties charging usury forfeit
the excess if usury is set up. And usury will render a deed void, and
will in a contract or mortgage render a waiver of, homestead, or con­
tract to pay attorneys’ fees void.
J u d g m e n ts create liens from their rendition upon the real or per­
sonal property of the defendant; all judgments at the same term rank
equally, and property Sold by a debtor after judgment is obtained
against him is only discharged from the lien of such judgment. If real
estate, after four years’ possession by the vendee, and in cases of per­
sonal property, after two years’ Judgments, whether in the United
States court, or in any State court, obtained in any other county than
that in which the defendant resides have no lien on the property of
the defendant in any other county, unless the execution thereon Is
recorded in the county of the defendant’s residence. Unless such
execution Is recorded as so required within thirty days, its lien will
only date from the time of record. (See Actions.)
J u risd ictio n . (See Title Courts.)
L icense. No license is required of commercial"travelers. Itinerant
traders must pay license fees.
L ien s. Under the laws of Georgia mechanics, material-men, ma­
chinists, employes of steamboats, millwrights, builders of gold mine
machines, stone-cutters, and marble works laborers have special liens
on property improved or worked on. Landlords have a general lien
which takes effect from the levy of distress and a special lien on crops
for rent of land on which they are raised. Common law liens of inn­
keepers, factors, 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.
L im ita tio n s. Suits on open accounts are barred after four years,
on promissory notes and bills after six years, on instruments under
seal after twenty years, on suits for personal injury after two years.
Seven years’ adverse possession of real estate under color of title, and
twenty years’ adverse possession without color of title, will bar the
claims of all persons not laboring under disability. Infants have seven
years to assert their rights, after becoming twenty-one years of age.
M arried W om en . 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 her hus­
band, and any promise to pay her husband’s debt is void. She cannot
sell to her husband or trustee for any purpose, except by order of the
superior court. A wife or her heirs may sue and recover from any
person money or property used by her husband to pay his debt where
the creditor takes with notice. All the property of the wife at the
time of marriage, and all she may acquire by gift, inheritance, or pur­
chase, shall vest in and belong to her, and shall not be liable for the
debt, default, or contract of her husband. The wife with her children,
if any, is entitled to twelve months’ support out of the estate of her
deceased husband. The husband is bound to support and maintain
the wife, and his consent is presumed to her agency In the purchase of
necessaries. The wife’s separate property is not liable for debts con­
tracted by her as agent of her husband in the ordinary support of her­
self and children, but by special contract in her own capacity, and
not as agent for her husband, she could bind her separate estate, for
that purpose. A married woman can dispose of her property by will.
M ortgages. 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 bulkv but changing
in specifics, and after acquiring property. No. particular form is
necessary, but it must be clear that the instrument Indicates a lien,
describes the property and specifies the debt it secures. Mortgages
on land are not good against dower, and a wife cannot waive her
dower as against this lien. Mortgages must be executed and attested
in the same manner as deeds, except that in mortgages on personal
property, only the official witness is necessary. Mortgages with power
of sale are valid in Georgia. Homestead and exemption may be
waived in the mortgage. All mortgages on personal property must
be recorded in the county where the mortgagor resides and the prop­
erty is located. Mortgages on land must be recorded In the county
where the land is situated.
N otaries. Commercial notaries, male or female, are appointed
for four years by the superior courts. They must have seals and are
authorized to attest deeds and mortgages, and make protest of com­
mercial paper,
N otes an d B ills of E x c h a n g e. (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, and that the
Instrument is genuine. Bona fide purchasers of negotiable paper
taking the same for value before due, and without notice, are protected
against any defense, except: 1. Non est factum. 2. Gambling,
or immoral or illegal consideration. 3. Fraud In its procurement by
the holder. Maturity gives notice of dishonor. No days of grace
are allowed.
P rob ate L aw . (See Administration of Estates, Deeds and Mort­
gages.)
P rotests. (See Bills of Lading and Promissory Notes.)
R ecords. (See Deeds and Mortgages.)
R ed em p tio n . 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.
R ep lev y . 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.
R e v is io n .: (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.
T axes. Taxes are a lien upon all the property of the debtor, real
or personal, and its lien is preferred as stated in section herein relating
to distribution of the estates. Sales of property for taxes are con­
ducted in the same manner as other judicial sales. One year in which
to redeem is allowed.
M ills. AH persons of full age and sound and disposing memory,
including married women, may make wills, and dispose of their estates.
Wills must be exeouted in the presence of three witnesses, all of whom
shall be present, must be called by the testator as witnesses, and must
sign, and shall certify that they signed, in the presence of the testator,;
and in the presence of eacn 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

1414

B A N K IN G A N D

C O M M E R C IA L L A W S — ID A H O

admitted to probate In this State, when an authenticated copy of the
will is presented, accompanied by a certificate of the governor of such
State, under the seal of the State, that the official of the court where
such probate was made, had original jurisdiction of the subject-matter.
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 wUl, executed according
to the law of Georgia, will constitute a muniment of title to real prop­
erty without being probated in this State, when recorded on the record
of deeds in the county where the land lies, together with an exempli­
fication of record admitting it to probate in another State, certified
according to the Act of Congress.

S Y N O P S IS OF

THE LAW S OF IDAHO
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
Revised by R ic h a b d s & H a q a , Attorneys at Law, Boise. (See Card
in A ttorneys’ List.)
A c k n o w le d g m e n ts. All conveyances and other Instruments
required to be acknowledged in this State must be acknowledged, if
within the State, before a judge or clerk of a court of record, a county
recorder, a notary public, or a justice of the peace. If without the
State, but within the United States, they must be acknowledged before
any such officer, or a commissioner of deeds for this State, or before
any officer authorized by the laws of this State or Territory to take
such acknowledgment. If without the United States, they must be
acknowledged before a minister or charge d’afialrs of the United
States, resident and accredited in the country where the acknowledg­
ment is taken, before a consul or vice-consul, a judge of a court of
record, a duly appointed commissioner, or a notary public. The
certificate of acknowledgment, if made before a justice of the peace,
when used in any county other than that in which he resides, must
be accompanied by a certificate, under the hand and seal of the recorder
of the county in which the justice resides, setting forth that such
justice, at the time of taking such acknowledgment, was authorized
to take the same, and that the recorder is acquainted with his hand­
writing, and believes that the signature is genuine. Proof of the execu­
tion of an instrument may be made though it has not been acknowl­
edged. Form of married woman’s acknowledgment! the same as that
of a single person. (See Conveyances.)
A ctio n s. There is but one form of civil action in this State. An
action is commenced within the meaning of the statute when the
complaint is filed with the clerk. Every action must be prosecuted
in the name of the real party in interest.
A ffid a v its are used only to verify pleadings, to prove service of
summons, notice, or other paper, to obtain provisional remedy.
A lien s. Code provisions as to holding property by aliens have
been repealed (Sess. Laws, 1913).
A rb itra tio n . 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.
A rrests. 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 porperty
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.
A s sig n m e n ts an d In so lv e n c y . An insolvent debtor may be
discharged of his debts by executing an assignment of all his property,
real and personal, which, with a sworn inventory of property and
schedule of creditors, must be filed in the district court. At a cred­
itors’ meeting, held after thirty days’ notice given, one assignee is
appointed, and claims proved. Court will be set aside property
exempt, and issue order for direct payment of money, where no
mortgage or pledge had been given, or where such security, if given,
has been rendered neugatory by act of defendant. Assignee must
furnish bond, with two sufficient sureties.
A tta c h m e n ts. The plaintiff at the time of issuing the summons,
or at any tim e afterwards, may have the property of the defendant
attached as security for the satisfaction of any judgment that may
be recorded, unless the defendant give security to pay such judg­
ment. Defendant in a civil action for recovery of money or damages,
under a contract, express or Implied, may be arrested, when about
to depart from the State with intent to defraud, or when the debt
or obligation was fraudulently contracted.
B a n k s an d B a n k in g . 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 bank commissioner. The banker has a general lien,
dependent upon possession, upon all property in his hands belonging
to a customer for the balance due him from such customer in the
course of the business. (Sess. Laws 1911 amended 1913.)


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

B lu e 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. (Sess, Laws 1913.)
C ollaterals.' No statutory regulation.
C o m m u n ity P rop erty. All property acquired after marriage
other than by gift, bequest, devise, or descent, is community property.
The personal earnings of the wife and the income from her separate
property are her separate property.
C on tracts. A written Instrument is presumptive evidence of a
consideration.
C on veyan ces. Real estate Is conveyed by Instrument in writing,
subscribed by the party or his authorized agent in writing. The
community property can be conveyed only by both husband and wife
joining in the execution. During the continuance of the marriage the
wife has the management, control, and absolute power of disposi­
tion of ner separate property, and may oargain, sell, and convey
her real and personal property, and m ay 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. 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.)
C orporations. Private corporations may be formed by three (3)
or more persons, at least one of whom must be a bona fide resident
of this State. Such corporation is formed by executing articles
of incorporation, containing: 1. The name of the corporation 2.
The purpose for which it is formed. 3. The place where its prin­
cipal business is to be transacted. 4. The term for which it is to
exist (not exceeding fifty years). 5. The number of Its directors or
trustees, not exceeding fifteen, who must be stockholders of the
corporation. 6. The amount of the capital stock and the number
of shares into which it is divided. 7. The amount actually sub­
scribed, and by whom. The articles may provide for the election
of one-third of its directors annually. Railroad, wagon road, telegraph
and telephone corporations must also state in their articles: 1. The
kind of road, telegraph or telephone line Intended to be constructed.
2. The estimated length of the road or line. 3. They may provide
in their articles the number of directors which shall constitute a quorum
for the transaction of 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 corporations
must have subscribed, before filing articles, $1,000 per mile; wagon
road corporations, $300 per mile; telegraph corporations, $100 per
mile, ana the articles must be verified by affidavit of president, secre­
tary, or treasurer named in articles, that such stock has been sub­
scribed. All articles of incorporation must be filed in the office of the
county recorder, in which the principal place of business is located,
and a copy thereof certified by the recorder, filed with the Secretary
of state. All corporations, except insurance, non-productive mining
companies, co-operative telephone and irrigation companies, must
pay between July 1st and September 1st 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 1st entails a penalty
of $10, and a failure to make payment by November 30th entails a
loss of charter for domestic corporations and a loss of the right to do
business within the State for foreign corporations. Between July 1st
and September 1st, all corporations must make an annual report, and
a failure to do so takes away such exemptions as are mentioned above.
C orporation, F oreign . Foreign corporations desiring to do busi­
ness in this State, may have all the rights and privileges of like domes­
tic corporations, by filing with the secretary of state, and in the
office of the clerk of the district court in the county where the principal
place of business of such corporation is to be conducted, a copy of
their articles of incorporation, and the designation of some person
residing in' the county in which such principal place of business is
to be located upon whom process issued by authority of or under
any law of this State may be served.
C ourts. Terms andJJurlsdictlon. 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
jurisdiction up to $500, in civil cases, and concurrent jurisdiction
with justice’s courts in all criminal cases. Justices' jurisdiction. $300.
D a y s o f G race abolished by statute.
D ep o sitio n s may be taken before any judge, justice of the peace,
notary public, or United States commissioner, or any other person
agreed upon by the parties, upon notice served upon the opposite
party, stating the court, action, time, and place, and before whom
the same will be taken, or they may be taken upon commission Issued
by the judge with interrogatories attached.
D e v o lu tio n of P rop erty. (See Succession.)
D ow er does not exist«
E m p loyers an d E m p lo y es. 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
¿he 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 this statement must be
posted at the place where work is prosecuted.
E m p lo y er’s L ia b ility Law . Provides for damages not to exceed
$5,000 for injuries to employee caused by employer’s negligence.
E x e cu tio n s issue at any time within five years after judgment.
The only stay is by appeal, with secured bond. One year allowed
for redemption.
E x e m p tio n s. Homestead, not exceeding $5,000, if declaration
of homestead is duly acknowledged and recorded; office furniture
and library, $200; necessary household arid kitchen furniture not
exceeding in value $300, and provisions for family for six months;
certain farm animals, etc., with food for six months; and water
right for 160 inches, when actually used in irrigation; also crops grow­
ing or grown on fifty acres of land, leased, owned or possessedby the
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 call 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; the personal

B A N K I N G A N D C O M M E R C IA L L A W S — IL L IN O IS

1415

estates and property or minors, and make such orders as may be neces­
«earnings oi a debtor within thirty days preceding levy, where earnings
sary to exercise all powers conferred. Proceedings of this court are
are necessary for use of family, residing in this State; the shares
construed the same as courts of general jurisdiction and like force given
-held by parties of the Building and Loan Association to the value
to its records.
-of $1,000; provided, such person has no homestead; all benefits aris­
in g out of life insurance, represented by an annual premium of $250;
P rotest. (See Notaries.)
Air property of fire companies. All the above property may be sold
R ecords. All deeds, mortgages, real and chattel, and instruments
•under foreclosure of mortgage, which includes same.
affecting the title to lands must be recorded, inventory of the
separate personal estate of a married woman when recorded, becomes
G a rn ish m en t. Any personal property or credits In the hands of
prima facie evidence that the property therein enumerated is her
another, belonging to the defendant, is subject to garnishment, as
separate property. Judgment empowering a married woman to act as
are debts owing to him from another if due.
a sole trader must be recorded in the county recorder’s office. In case
of levy of attachment upon real estate, a copy of the writ, with a copy
G u a ra n ty , T itle a n d T r u st Co. May furnish abstracts, act as
•surety, trustee, fiscal agent. Paid up capital of $25,000 required.
of the notice of levy attached thereto, must be filed In the office of the
Capital deemed security for the performance of their duties.
county recorder.
R ed em p tio n . Property may be redeemed within one year after
H u sb an d a n d W ife. All the property of the wife owned by her
sale, on paying purchaser amount paid on sale and 10 per cent addi­
before marriage, and that acquired afterwards by gift, bequest, or
tional.
Property may be redeemed by successive redemptioners
descent, or that which she shall acquire with the proceeds of her
within sixty days from last redemption, and within one year from
•separate property and her personal earnings and the income from
sale, by paying an additional 4 per cent. In cases of tax sales, the
her separate property, shall remain her Sole and separate property, to
owner may redeem in three years.
the same extent and with the same effect as the property of a hus­
band similarly acquired. The wife has the management, control, and
R ep lev in . Action of, must be brought within three years from time
absolute power of disposition of her separate property, to the same
it accrues. Plaintiff may sue for the possession without claiming
extent and with like effect as a married man may have in relation
immediate possession, or he may claim immediate possession at time of
commencing suit or afterward. Affidavit showing that plaintiff is thè
'to his real and personal property. The separate property of the
owner, the detention, the unlawfulness of the detention, etc., and bond
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
with sureties required to obtain Immediate possession. Defendant may
by courtesy or in dower. Marriage settlements are provided for,
execute undertaking, with approved sureties, for the retention of the
and when properly executed and recorded may vary the statute
property, and that it will be forthcoming, subject to the order of the
.governing the relations of husband and wife concerning property
court In which the action is pending, and thereupon retain the posses­
rights. Minors m ay execute valid marriage settlements.
sion of the property Involved.
S eals. The distinctions between sealed and unsealed instruments
In te r e st. Where there is no express contract in writing fixing a
are abolished.
•definite rate of interest, the rate is 7 per cent per annum. Parties
m ay agree in writing for interest at the rate of 12 per cent per annum.
S u ccession to P rop erty. If decedent leave spouse and one child
each entitled to one-half of decedent’s separate property, both real and
Judgments bear interest at the rate of 7 per cent per annum.
personal; if more than one child, surviving spouse gets one-third and
J u d g m e n ts are liens on all real estate of debtor within the county,
remainder in equal shares to surviving children. In the case of
<from time of docketing, and may be extended to other counties by
community property, the surviving spouse takes all the property In
filing transcript in recorder's office.
Lien continues five years.
event there are no children; but if children also survive, the surviv­
Justice’s court Judgments become liens when certified and recorded.
ing spouse takes only one-half of the community property and the
May be revived by Issuing execution within limitation.
children take the other one-half.
L ien s, M ech a n ics. Every person performing labor upon [or fur­
, T axes. The locus of property for taxation relates to the second
nishing materials used in the construction or repair of any mining
Monday of January, if within the State, and if not to the day of assess­
•claim, building, or other improvement, has a lien thereon Farm
ment, and is a lien from and after that date. If one half of taxes be
laborers have lien upon the crop and products thereof, upon which
paid by first Monday of January the remaining half may be paid
■they bestow labor. All liens must be set forth by a statement in
by first Monday of July, following. Six per cent penalty added for
writing, showing the amount due, the facts connected with the matter,
delinquency and delinquency certificate bears interest at 12 per cent
•that there are no credits due on the claim, or offsets against the
from date of delinquency.
The owner has two years from the date
same; which statement must be verified by the claimant, and recorded
of said certificate to redeem therefrom, and if he does not redeem the
In the office of the county recorder, if on claim of original contractor,
county or the assignee of the certificate must bring suit not less than
within ninety days, if on claim of other persons, within sixty days
thirty days nor more than ninety days after the expiration of said
■from the time of the completion of the structure the completion of the
two years to foreclose the tax lien.
Proceedings are the same as on
labor, or the furnishing of the materials. Lien must be enforced by
foreclosure of mortgage, and owner is allowed one year from the sale
•suit within six months, unless credit is given, expires at all events
in which to redeem before the sheriff’s deed can be given.”
in two years.
T ru st C om p anies. (See Guaranty Companies.)
L im ita tio n to S u its. Contracts not in writing and open accounts,
Ware H ou se R eceip ts The Uniform Warehouse Receipts Act,
four years; instruments in writing, five years; Judgments and decrees,
recommended by the American Bar Association,
*ix years. Revivor: Only by instrument in writing; part payment
•does not.
W ills. Every person over the age of eighteen years, and of sound
mind, may make a will» Every will, other than a nuncupative will,
M arried W om en . All property, real or personal, acquired before
must be in writing, and every will other than an olographic and a
marriage and acquired after marriage, by gift, bequest, devise, or
nuncupative will, must be executed by the testator subscribing thereto
descent, and her personal earnings and the income from her separate
or some person by his direction, which must be done in the presence
property are the wife’s separate property; all other property acquired
of two attesting witnesses, each of whom must sign his name and
after marriage, common property; wife must record inventory of
state that the testator requested him to witness the testator’s signa­
separate property. N o estate as tenant by courtesy allowed the
ture, and the testator must also declare in the presence of the wit­
husband, nor dower to the wife.
nesses that such is his last will and testament. One-half of com­
M in es a n d M in in g . (Principal regulations under United States
munity property may be disposed of by will.
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
S Y N O P S IS OF
a t 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
RELATING TO
making location, locator must excavate not less than 100 cubic feet
Tor purpose of prospecting claim, and must record notice of location
within thirty days after making location.
B A N K I N G A N D C O M M E R C IA L U S A G E S
M ortgages. 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
Prepared and Revised by Messrs. M u s g b a v e , O p p e n h e i m & L e e ,
and sworn to by the mortgagor that the same is made in good faith
Attorneys at Law, Chicago. (See Card in .Attorneys’ List.)
without any design to hinder, delay, or defraud creditors. May be
■filed or recorded. Survives as long as the debt. Mortgages are
discharged by a satisfaction duly executed and recorded, or by entry
A ck n ow led gm en ts. Of deeds of real estate and other instruments,
■on margin of the record, witnessed by recorder.
may be taken before the following officers: Within this State before
a master in chancery, notary public. United States commissioner,
N eg o tia b le In s tr u m e n ts. Negotiable instruments are governed
county clerk, justice of the peace, any court of record having a seal
by the rules of the Uniform Negotiable Instrument Law, as recom­
or any judge, justice, or clerk thereof. Without this State, and within
mended by the American Bar Association. (See Laws 1903, p. 380.)
the United States, its territories, dependencies, or the District of
N otaries, when requested, to demand acceptance and payment
Columbia, before a justice of the peace, notary public, master in chan­
of foreign, domestic, and inland bills of exchange or promissory
cery, United States commissioner, commissioner to take acknowledg­
notes and protest the same for non-acceptance and non-payment:
ments of deeds, mayor of a city, clerk of a county, or before any judge,
-exercise such other powers and duties as by the law of nations and
justice,
clerk or deputy clerk of the supreme, or district court
■commercial usage, or by the laws of any other Territory, State, govern­
of the United States, or before any judge, justice, clerk or deputy
ment, or country may be performed by notaries. Attach acknowl­
clerk,
prothonotary,
surrogate, or registrar of the supreme, circuit,
edgments or proof of powers of attorney; mortgages, deeds, grants,
superior, district, county, common pleas, probate, orphans or surro­
transfers, and other Instruments of writing executed by any person.
gate court of any of the States, Territories, or dependencies of the
Give certificate of such proof or acknowledgment, to take depositions,
justice, clerk or deputy clerk of the supreme, or district court of
-affidavits, and administer oaths and affirmations In all matters incident
the United States, or before any judge, justice, clerk or deputy clerk,
to duties of the office. To keep a record of all official acts; when
prothonotary,
surrogate, or registrar of the supreme, circuit, supe­
requested, and upon payment of his fees therefore, to make and give
rior, district, county, common pleas, probate, orphans or surrogate
a certified copy of any record in his office; to provide and keep an
court of any of the States, Territories, or dependencies of the United
official seal, on which must be engraved his name, the words "Notary
States. In any dependency of the United States, such acknowl­
Public,” and the name of the county for which he is commissioned.
edgment or proof may also be taken or made before any commissioned
To authenticate with his official seal all official acts. The commission
officer in the military service of the United States. When such
-is good throughout the State.
acknowledgment or proof is made before a notary public, United
Power, o f A tto rn ey . Powers of attorney for grants of real estate
States.
In any dependency of the United States, such ac­
and to execute a mortgage must be in writing, subscribed, acknowl­
knowledgment or proof may also be taken or made before any com­
edged or proved, certified and recorded as other instruments affecting
missioned officer in the military service of the United States. When
such acknowledgment or proof is made before a notary public, United
real property. Powers of attorney which have been recorded must
be revoked by revocation in writing, acknowledged, proved, certified,
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
and recorded the same as original power.
certified under the seal of the city; if before a clerk, deputy clerk,
P rob ate Law« Probate courts have Jurisdiction to open and
prothonotary, registrar, or surrogate, under the seal of his court;
receive proof of wills and admit them to proof; to grant letters testa­
if before a justice of the peace, or a master in chancery, there must
mentary and guardianship and revoke same; appoint appraisers of
be added a certificate of the proper clerk under the seal of his office,
•estates, compel executors, etc., to render accounts; order sale of prop­
setting forth that such person was a justice of the peace or master
erty of estates and minors; order payment of debts due from estates,
in chancery at the time of taking such acknowledgment or proof.
order and regulate distribution of property or estates; compel attend­
ance of witnesses and production of all Instruments pertaining to 1 An acknowledgment or proof of execution may be made in conformity


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THE LAWS OF ILLINOIS

1416

B A N K I N G A N D C O M M E R C IA L L A W S — IL L I N O IS

■with the laws of the State, Territory, dependency, or district where
it is made. Without the United States, before any court of any repub­
lic, dominion, state, kingdom, empire, colony, territory, or depen­
dency 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 mar­
ried woman m ay 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.
A d m in istration o f D ece d e n ts’ E sta tes. Letters testamentary
issue to executor named in will, if he be a resident. If theré 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 compétent person. The surviving husband or wife,
or the person nominated by him or her, has preference. If none of
thé 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
executor or administrator must file an inventory within three months
from th é 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 administration, be filed with the clerk, whereupon a summons
issues against the executor or administrator, and the matter is heard
at a subsequent term. All claims not exhibited within one year
from granting of administration are barred. Claims are classified
as follows: 1. Funeral expenses and cost of administration. 2.
Widow’s or children’s award. . 3. Expenses of last illness, other than
physician’s bill, and demands due household laborers or servants of
deceased for labor, 4. Debts due common school of township funds.
5 . Physician's bill for last illness. 6. Trust funds. 7. All other
debts. .Claims have priority of payment in the above order.
Affidavits. Within this State oaths and affirmations may be
administered by any judge, justice of the peace, master in chancery,
clerk of a court, police magistrate, or notary public, in their respective
jurisdictions. Without the State the oath or affirmation ‘may be
administered by any officer authorized by the laws of the particular
State, and if such officer has a seal, his certificate under his official
seal is received as prime facie evidence of his authority.
A lien s. 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.
A rrest an d B ail. N o person can be imprisoned for debt unless
upon refusal to deliver up his estate for th # benefit of his creditors
in such manner as shall be prescribed by law, or in cases where there
is a strong presumption of fraud.
A ssig n m en ts. The operation of the Illinois Act relating to
voluntary assignments for the benefit of creditors has been suspended
by the national bankruptcy law.
A tta ch m en ts. 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-resident
of this State. 2. Where the debtor conceals himself, or stands in defiance
of an officer so that process can not b e 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, fraudu­
lently 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 fraudulently concealed or disposed of his
property so as to hinder or delay his creditors. 8. Where the debtor is
about fraudulently to conceal, assign, or otherwise dispose of his
property or effects so as to hinder or delay his creditors. 9. Where the
debt sued for was fraudulently contracted on the part of the debtor,
provided the statements of the debtor, his agents or attorney, which
constitute the fraud, shall have been reduced to writing, and his signa­
ture attached thereto by himself, agent, or attorney. The creditor
must give bond in double the amount of the claim. Beal 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 recognizance in court to pay the judgment.
B an k s. Under the state constitution stockholders have a double
stock liability, and every bank must make, under oath, and publish
each quarter a full and accurate statement of its affairs. Banks may
b é 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.
The stockholders at the annual meeting on the first Monday of each
January (unless some other date be fixed by the by-laws) elect the
directors. The directors must furnish to the State Auditor each year
a list of stockholders and such other information as he may require.
Each director must own ten shares of stock. Directors are required
to hold monthly meetings. Any director, officer, or employee making
a false statement as to the affairs of the bank, with intent to deceive,
may be punished by imprisonment. N o bank can begin business
until the Auditor has issued his certificate that its stock has been
fully paid; and such certificate has-been filed with the Recorder of
Deeds of the County where the bank does business. The Auditor
m ay withhold his certificate if he be not satisfied as to the character
and standing of the directors and officers. The president and cashier
thirty days- after organization must file with the Recorder of Deeds a
certified list of stockholders and the holdings of each, and thereafter
record all transfers. No transfer of stock releases stock liability.
Banks are examined under the direction of the Auditor at least once
each year. A bank can hold only such real estate as is necessary for
its banking house, and such as may be acquired in the collection of
its debts. No more than 15 per cent of the capital stock and surplus
can be loaned to one person, firm, or corporation, but discounts of
bills of exchange drawn against actual values, and commercial paper
discounted for parties actually owning the same, do not come within
this provision. A violation of this provision does not. impair the
claim, but renders the directors and officers assenting to the same
personally liable for any loss incurred thereby. A loan can not be


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made to the president or any officer or employe, unless approved by
the Board of Directors. The minimum amounts provided for the
capital stock of banks are as follows: In cities of 5,000 or less, $25,000;
up to 10,000, $50,000; up to 50,000, $100,000, and 50,000 or more,
$200,000. Upon impairment of the capital stock the Auditor may
require assessment of stockholders or a reduction of the capital, ifhe shall deem the bank is being conducted in an unsafe, fraudulent
or illegal manner, he may file a bill for an injunction, 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 consolidation, change of name and
voluntary dissolution. A banker is liable to fine and imprisonment
if he receive a deposit after he knows the bank has become insolvent
and thereby the depositor suffers loss.
B ills o f L ading. The Uniform Bills of Lading Law is in force in
Illinois.
C h a ttel M ortgages. N o mortgage, trust deed, or other conveyance
of personal property having the effect of a mortgage or lien, is valid
against third persons, unless possession be delivered to, and remain
with, the grantee; or the instrument provides for the possession of the
property to remain with the grantor, and the instrument is acknowl­
edged and recorded. The instrument must be acknowledged, in coun­
ties 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 mortgagor
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 by law to take acknowledgments of deeds.
After acknowledgment the instrument must be filed for record with
the recorder of the county in which the mortgagor resides when the
instrument is executed, or, in case of a non-resident of the State, then
in the county where the property is situated. The mortgage is a
valid lien until the maturity of the entire debt or obligation, not
exceeding three years from the filing of the mortgage, and may be
renewed for one year. A note secured by chattel mortgage must
state on its face that it is so secured, otherwise the mortgage is void.
A mortgage may be released on the margin of the record, or by a release
deed. A mortgage on a stock of goods permitting mortgagor to retain
possession and buy and sell is void as to creditors.
C om m ercial Paper. (See Negotiable Instruments.)
C on d ition al Sales and like agreements, including, generally,
leases, reserving title or lien in seller who parts with possession, are
not valid in this State as to purchasers or parties acquiring liens
while the property remains in the possession of the vendee or lessee.
C on sign m en ts. Agreements to sell on consignment are valid.
If a commission merchant, or party selling on commission, converts
the property consigned, or after demand fails to account for the pro­
ceeds, he is subject to fine and imprisonment, and liable^for double
the value of the property so converted.
C onveyances. See Deeds.
C orporations for pecuniary profit may be organized for any lawful
purpose except banking, insurance, real estate brokerage, operation
of railroads, and loaning money. The method of forming a corporation
is as follows: From three to seven persons execute and acknowledge
a statement giving the name of proposed corporation, the object, its
capital stock, number of shares (each not to be less than $10 nor
more than $100), location of principal office, and duration (not exceed­
ing ninety-nine years); which statement is filed with the Secretary
of State. Upon the filing of the statement the Secretary requires the
payment of the license fee, which is $30 for all companies, having a
capital stock of $2,500 and under, $50 for amounts between $2,500
and $5,000, and $1.00 additional for each $1,000 of capital stock
in excess of $5,000. Upon receiving the license to organize, subscrip­
tions are obtained, and after the entire stock is subscribed, the com­
missioners, call a meeting of the subscribers, ten days’ written notice
being required, to elect directors. In all elections of directors the
right of cumulative voting is reserved. Voting may be by proxy.
A director need not be a stockholder, nor a resident of the State.
The commissioners then make a full report of the proceedings to the
Secretary of State, verified by a majority of the commissioners, and
include a copy of the notice for the first meeting of stockholders, a
copy of the subscription list, a statement of the amount of the capital,
not less than one-half actually paid in, the amount of such capital
not paid in, what disposition has been made of stock subscribed and
not paid, and if any proportion of the capital has been paid in property,
the same shall be appraised by said commissioners, and they shall
report fair cash value thereof, and the names of directors or managers
elected and their respective terms of office. The Secretary of State
thereupon issues a final certificate of incorporation, to which is attached
copies of all papers filed with him. This certificate must be filed with
the Recorder of Deeds in the county of the principal office of the Com­
pany. The Company is then fully organized and may proceed to
business.
Corporations can hold Only such real estate as is required for their
business. They cannot hold stock of other corporations, but they
may buy and sell their own stock if they act in good faith.
Stock may be attached or taken on execution; but where it has been
sold or pledged in good faith and the certificate delivered, it is not
liable to execution except as to any excess oyer the amount for which
it has been pledged. Each stockholder is liable for the debts of the
corporation only to the extent of the amount that remains unpaid
upon the stock held by him. N o assignor of stock is released from this
liability by the assignment, but he remains, jointly liable with the
assignee. A purchaser in good faith, without notice, of stock issued
as fully paid is protected. Stock may be paid for in property other
than money, but the property can be taken only at its fair cash market
value. No person holding stock as collateral security can be subjected
to a stockholder’s liability. The pledgor has a right to vote the stock.
If the indebtedness of a corporation exceeds its capital stock, thedirectors and officers assenting thereto are personally liable to creditorsfor such excess. Every stockholder has the right at all reasonabletimes, by himself or attorney, to examine the books and records Of
the company. 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 company receiver; assignee, guardian, conservator, executor,,
administrator, or other trustee, provided such appointment apply
to the estate only, and not to the person. 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 franchi­
ses, Over and above the assessed value of their tangible property.
Shares of stock of domestic corporations, whose tangible property orcapital stock is taxed, are not subject to taxation in the hands of owners.
Foreign Corporations doing business in this State are subject
to all the liabilities, restrictions, and duties imposed on domestic
corporations of like character, and have no other or greater powers.
But a foreign corporation authorized by its charter to invest and loanmoney may do so here. This does not include, however, banking
powers and privileges. An Act requires a foreign corporation desiring
to do business in Illinois to make application to the Secretary of State..

B A N K IN G A N D

C O M M E R C IA L L A W S — IL L IN O IS

signed and sworn to by the President and Secretary, stating what
business such corporation proposes to pursue under its charter, the
amount of capital stock, whether it is transacting or it intends to
transact business in any other state or country, the proportion of its
business intended to be carried on in Illinois, the amount paid in
upon its capital stock, what property and assets, and an estimate of
the value thereof, will be employed in the business in Illinois, if any
of its capital subscribed has not been paid in, what disposition is to
be made thereof, the names of the President, Secretary, and Directors,
and their residences, where its principal office in Illinois will be located
and the name and address of some attorney in fact upon whom ser­
vice can be had in all suits commenced in this State; and, if required
by the Secretary of State, the names and residences of all stockholders
as shown by its records. It must file with the Secretary of State a
copy of its charter or articles of incorporation^ Before any ^foreign
corporation shall be authorized to do business in this State it must
pay to the Secretary of State upon the proportion of its stock repre­
sented by its property and business in Illinois, fees equal to those
required of similar corporations formed under the laws of th is;State.
Every such foreign corporation neglecting to comply with this law is
subject to a penalty of not less than $1,000 and not exceeding
$10,000, to be recovered before any court of competent jurisdiction,
and in addition to such penalty if any such foreign corporation shall
fall to comply with the law it can maintain no suit either at law or
in equity upon any claim, legal or equitable, whether arising out of
contract or tort, in any court of this State.
C ourts. 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 twenty-five associate judges and special practice),
and justice courts.
D ays o f Grace are abolished. (See Negotiable Instruments.):
D eeds conveying land should be signed, sealed, and acknowledged
by grantor. Scrawl seal is sufficient. N o subscribing witnesses are
required. Statutory forms of warranty and quit claim deeds and
mortgages are provided. The words employed are (1) conveys and
warrants, (2) conveys and quit claims, (3) mortgages and warrants.
No deed releases the right of homestead unless it contains a clause
substantially as follows: “ Hereby releasing and waiving all rights
under and by virtue of the homestead exemption laws of the State
of Illinois;!’ in which case the certificate of acknowledgment should
contain the clause, “ including the release and waiver of the right
<3t 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.
D ep o sitio n s. 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. The attendance of a witness can not be
compelled before a notary public or commissioner in this State under
a commission issued from a court of record in another state.
D escen t and D istrib u tio n . Property in this State, real and
personal, of residents or non-residents dying intestate, descends and
is distributed as follows: 1. To the children and their descendants
equally, the descendants of a deceased child or grandchild taking
the share of their parents in equal parts. 2. When there is no child,
nor descendant of a child, and no widow or surviving husband, then
to the parents, brothers, and sisters and their descendants equally,
allowing to the parents, if living, a child’s part, or the survivor a
double portion; and if there is no parent living, then to the brothers
and sisters and their descendants. 3. When there is a widow or sur­
viving husband, and no child or descendant of a child, one half of
the real estate and the whole of the personal estate goes to the widow
or surviving husband absolutely, and the other half of the real estate
descends as in other cases where there are no children or descendants
of children. 4. When there is a widow or surviving husband, and also
a child or descendants of a child, the widow or surviving husband
receives one-third of tlie personal estate absolutely (see Dower and.
Curtesy). 5. If there is no child or descendant of a child, and no
parent, brother, or sister, or descendant of parent, brother, or sister,
and no widow or surviving husband, the estate descends in equal
parts to the next of kin in equal degree (computing by the Civil Law),
there being no representation among collaterals, except with descen­
dants of brothers and sisters, and no distinction being made between
kindred of the whole and the half blood. 6. In case of a widow or
surviving husband, and no kindred, the whole estate goes to the widow
or surviving husband.
Dower. A surviving husband has dower - (i. e., life interest m a
hird part of all lands whereof deceased was seized of an estate of
uheritance during marriage) the same as a widow. Equitable estates,
,nd land contracted for before death, are subject to dower. Dower
nay be barred by jointure assented to; by devise, unless widow or
urviving husband renounces benefit of devise within one year from
late of letters of administration; by divorce as to the party m
ault; and by abandonment Coupled with adultery. There is no
lower in land as against a purchase-money lien. The husband or
yife may renounce any devise under the will of the other and take,
f there be children, dower and one-third of personal estate, or, if no
ihildren, one-half of both real and personal estate absolutely.
E xecu tion s. (See Judgments and Executions.)
E xecutors and A d m in istrators. (See Administration.)
E xem p tions. There is a homestead exemption to the extent of
>1.000. It may be extinguished by conveyance joined in by husband
md wife properly acknowledged. (See Deeds.) The following
»ersonal property is exempt: 1. The necessary wearing apparel,
libles, school books, and family pictures. 2. One hundred dollars
vorth of other property, to be selected by the debtor, and m addition,
vhen the» debtor is the head of a family and resides with the same,
5300 worth of other property, to be selected by the debtor. Exempiions can not be claimed out of partnership property. The wages
>f a wage earner being the head of a family and residing with the
lame are exempt from garnishment to the amount of $15 per week.
F rau ds, S ta tu te o f. The following contracts should be in writing:
A promise of an executor or administrator to answer any debt or
amages out of his own estate. 2. A promise to answer for the debt,
efault or miscarriage of another. 3. An agreement made in conideration of marriage. 4. An agreement not to be performed within
ne year. 5. Any contract for the sale of lands, or any interest
herein for a longer term than one year. 6. Express trusts relating
o real estate.

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G a rn ish m en t. 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.)
H olid ays, L egai. January 1st, February 12th, February 22d,
M ay 30th, July 4th, October 12th, December 25th, first Monday in
September (Labor Day), Thanksgiving Day, andfelection days; also
every Saturday from 12 o’clock noon to 12 o’clock ^midnight. Where
holidays fall on Sunday, the day following.
H u sb an d an d W ife. (See Married Women.)
In terest. Extreme contract rate, 7 per cent; 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 with­
out the owner’s knowledge; and on money withheld by an unreason­
able and vexatious delay of payment. Judgments or decrees draw
interest at 5 per cent. Penalty for contracting for more than 7 per
cent is the loss of the entire interest, and only the principal sum can
be recovered. A written contract, wherever payable, made in this
State between citizens of this State and of a foreign State (or secured
by a mortgage on lands in this State) is Controlled by the law of this
State as to the rate of interest, and the penalty for usury. Usury
must be specially pleaded. But corporations cannot claim a for­
feiture of legal interest on account of usury. 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.
J u d g m en ts an d E xecu tion s, A judgment is a lien on real
estate situated in the county where the judgment is rendered, for
seven years from its date. If an execution is not issued on a judgment
within one year the judgment ceases to be a lien. A transcript of a
judgment in another county may be filed and thereupon becomes a
lien upon real estate of the defendant in the county where filed, and
execution may issue thereunder. An execution becomes a lien on
personal property from the time it is delivered to the officer to be
executed.. All goods and chattels, including money and stock in a
corporation, may be levied on. Personal property may be sold under
execution on ten days’ notice. A forthcoming bond may be given
by' the defendant to the officer. A third party claiming the property
levied on may have a trial as to the right of property in the county
court. Judgments may be confessed by a debtor or his authorized
attorney without process in term time or vacation.
L ien s. A landlord has a lien for rent upon crops growing on the,
demised premises. Hotel, inn, and boarding-house keepers have a
lien upon baggage and other valuables of guests. Stable-keepers have
a lien upon horses, carriages, and harness for the keeping thereof.
Agisters and persons keeping, yarding, and feeding domestic animals
have a lien therefor. All persons furnishing supplies, or doing work
for any railroad organized under the laws o f 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
o f 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, superintendents, 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.
L im ita tio n s. 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, ór
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 oh 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.
L im ite d P artn ersh ip . There are statutory provisions as to the
formation of limited partnerships, but such partnerships are not
common in Illinois.
M arried W om en. A married woman m ay 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 fre6 from th© intorforonc©. of th© ìrustoa-iicl. or his croditors.
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 hvmg 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.
M ortgages. Real estate mortgages should be executed and ac­
knowledged the same as deeds. The wife must join to bar
dower, except in mortgages for purchase-money. Trust deeds are
often preferred to mortgages because of the facility m the transfer
of the security and, in casó of non-resident creditors, m obtaining a
release, the trustee geneially being a resident. Real estate mortgages
may be released upon the record or by release deed, Mortgages and
trust deeds must be foreclosed by scire facias or by regular foreclosure
suit in a court Of chancery. In extreme cases, where the mortgaged
property is clearly of less value than the debt secured a,nd 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 the mortgagor has a year
from the time of sale for redemption.

1418

B A N K I N G A N D C O M M E R C IA L L A W S — I N D I A N A

N e g o tia b le I n s t r u m e n t s . T h e “ U niform N e g o tia b le In s tru ­
m e n ts L a w ” a d o p te d in N ew Y o rk a n d m o s t o f th e o th e r s ta te s is in
force in Illinois, a s to all com m ercial p a p e r ex ecuted a fte r J u ly 1,
1907, w ith th e follow ing m o d ificatio n s: 1 . A ll P ro m isso ry N o te s,
B onds, D u e Bills, a n d o th e r in s tru m e n ts in w ritin g , w h e re b y one
prom ises o r agrees, to p a y a n y su m o f m o n e y o r a rtic le s o f perso n al
p ro p e rty , o r a n y su m o f m o n ey in p erso n al p ro p e rty , o r acknow ledges
;a n y su m of m o n ey o r a rtic le o f p erso n al p ro p e rty to b e due, a re nego­
tiab le. E x c e p t a s to P ro m isso ry N o te s p a y ab le in m o n e y d u e diligence
m u s t b e u sed b y th e h o ld e r a g a in st th e m a k e r, if h e b e a re s id e n t
a n d so lv en t, b y s u it a t fir s t te rm o f C o u rt a fte r m a tu rity , in o rd e r to
h o ld th e en d o rser. 2 . A cco m m o d atio n p a p e r m a y b e issu ed a fte r
m a tu rity , if su ch w as th e in te n tio n o f th e acco m m o d a tin g p a rty .
3. T h e a d d itio n o f w o rd s o f assig n m en t o r g u a ra n ty to a b la n k indorse­
m e n t does n o t affect th e sig n a tu re as a n in d o rse m e n t unless oth erw ise
expressly s ta te d . 4. T h e d efenses o f fra u d a n d c irc u m v e n tio n in
th e ex ecu tio n o f n eg o tia b le p a p er, o r t h a t th e c o n sid e ra tio n arose
•out o f a g am b lin g tra n s a c tio n p ro h ib ite d b y sections 130, 131, a n d
136 o f o u r C rim in a l C ode, m a y b e a sse rte d a s a g a in s t a h o ld e r in d u e
co u rse. 5. T h e fa c t t h a t a d e p o sito r m ak es h is n o te p a y a b le a t a
b a n k do es n o t a u th o riz e th e b a n k to p a y i t o u t o f h is fu n d s o n deposit.
*6 . A n a lte ra tio n o f a n in s tru m e n t av o id s i t o n ly w hen i t is m a te ria l or
fra u d u le n t, a n d m a d e b y th e h o ld er. 7. A p ro m ise in w ritin g to a cc e p t
a b ill m a d e e ith e r befo re o r a fte r i t is d ra w n is deem ed a n a c tu a l a c c e p t­
a n ce a s to th e p erso n receiving th e b ill on th e f a ith th ereo f. 8 . Section
137 o f th e U n ifo rm N e g o tia b le In s tru m e n ts L aw , p ro v id in g t h a t th e
d e s tru c tio n b y th e d raw ee o f a bill o f exchange le ft w ith h im fo r a cc e p t­
an ce, o r h is re fu sa l to re tu rn th e sam e w ith in tw e n ty -fo u r h o u rs a fte r
d e liv e ry to h im o r w ith in su ch fu rth e r p erio d as th e h o ld e r m ig h t
a llo w , sho u ld b e deem ed a n acc e p ta n ce o f th e bill, is o m itte d fro m th e
Illinois a ct.
P r o b a t e L a w . "' (See A d m in istra tio n o f E s ta te s.)
R e c o r d i n g A c ts . I n co u n ties h a v in g a p o p u la tio n o f less th a n
60,000, th e clerk o f th e c irc u it c o u rt is ex officio th e reco rd er. In
■other c o u n tie s a “ re c o rd e r o f d e e d s ” is elected . A s to w h a t in s tru ­
m e n ts m u s t b e reco rd ed , see re sp ec tiv e title s.
R e p le v in . T h e a c tio n lies fo r p erso n al p ro p e rty w rongfully de­
ta in e d . T h e a c tio n m a y b e b ro u g h t in a n y c o u n ty w here th e p ro p e rty
is, o r w h ere a n y o f th e d e fe n d a n ts resid e o r m a y b e fou n d . B efore
t h e e x ecu tio n o f th e w rit, th e p lain tiff, o r so m e one in h is b ehalf,
m u s t give th e officer a b o n d w ith sufficient s e c u rity (a re a l e s ta te
•owner o f th e c o u n ty is g en erally req u ire d ) in d o u b le th e v a lu e o f th e
p ro p e rty .
S a le s i n B u lk . Sales o f th e m a jo r p a r t o rja ll of a sto ck in tra d e ,
c h a tte ls o r fix tu res n o t in th e o rd in a ry co u rse o f business, a re fra u d u ­
le n t a n d v o id a s to c re d ito rs u n less th e b u y e r o b ta in s fro m th e seller
a n a ffid a v it giv in g a lis t o f h is cre d ito rs w ith ad d resses a n d a m o u n ts
d u e each , a n d th e b u y e r, five d a y s b efo re p a y m e n t, gives n o tic s to
•each c re d ito r p erso n ally o r b y m ail o f th e c o n te m p la te d p u rch ase.
T a x e s . A ll re a l a n d p e rso n al p ro p e rty in th is S ta te , in c lu d in g
m o n ey s, cred its, b o nds, sto ck s, in v e stm e n ts, sh ares o f s to c k in cor­
p o ra tio n s (see C o rp o ra tio n s), a n d o f b a n k s d o in g b usiness in th is S ta te ,
Is s u b je c t to ta x a tio n . R ea l a n d p e rso n al p ro p e rty is liste d w ith th e
C o u n ty A ssessor a n d assessed b e tw ee n A p ril 1 st a n d J u n e 1st a s of
A p ril 1st. T h e ta x e s a re p a y a b le o n o r b efo re M a y 1st o f th e e nsuing
y e a r ; a fte r w hich tim e p e n alties a re ad d ed . T h e re is a n In h e rita n c e
T a x L aw , th e ra te s v a ry in g acco rd in g to th e re la tio n sh ip o f th e h eir,
d ev isee, o r leg atee, a n d th e a m o u n t o f th e legacies, ra n g in g fro m 2 p e r
c e n t in th e cases o f w idow a n d ch ild ren , a s to legacies exceeding $ 2 0 ,0 0 0 ,
t o 10 p e r c e n t on la rg e a m o u n ts bequeathed^ to perso n s n o t re la te d
to th e deceased.
W a r e h o u s e R e c e ip ts . T h e U n ifo rm W areh o u se R ec e ip ts L aw
is in fo rce in Illinois.
W ills . E v e ry m a le o v e r tw e n ty -o n e , a n d fem ale o v e r eighteen,
is c o m p e te n t to m a k e a will. I t m u s t b e sig n ed b y th e te s ta to r o r
b y so m e p erso n in h is presen ce a n d b y h is d ire c tio n , a n d a tte s te d in
h is p resen ce a t h is re q u e st b y a t le a s t tw o w itnesses. T h e (w itnesses
sh o u ld b e d isin te re ste d . A d ev ise to a w itn ess is v o id unless th e w ill
b e o th erw ise d u ly a tte s te d b y tw o w itnesses exclusive o f su c h person.
W h ere th e su b scrib in g w itnesses a re d e ad , sec o n d a ry evidence o f th e
e x ec u tio n is ad m issib le. T h e w ill is p ro v e d , a f te r n o tic e to h e irs a n d
leg atees, in th e c o u n ty (or p ro b a te ) c o u rt, a n d m a y b e c o n te ste d , in
c h an c e ry , w ith in one y e a r a fte r its p ro b a te . W ills o r a u th e n tic a te d
copies, affectin g e s ta te w ith in th is S ta te , d u ly p ro v e d o u tsid e o f th is
S ta te , in a cco rd an ce w ith th e law o f th e S ta te w h ere executed, acco m ­
p a n ie d w ith a c ertific a te o f th e p ro p e r officer o f t h a t fa c t, m a y be
reco rd ed h e re . W ills ex ec u te d a n d p u b lish e d o u t o f th is S ta te m a y
b e a d m itte d to p ro b a te in a n y c o u n ty in th is S ta te w h ere th e te s ta to r
h a d la n d s o r p e rso n al p ro p e rty u p o n lik e p ro o f a s if e x ecu ted a n d p u b ­
lish ed h e re , w h e th e r o r n o t th e w ill h a s b e en first p ro b a te d in a n o th e r
s ta t e o r c o u n ty . A ll orig in al wills, a f te r b e in g filed, m u s t re m a in
in th e office o f th e c o u n ty (or p ro b a te ) c o u rt. C h ild re n m a y b e disin ­
h e rite d .

S Y N O P S IS OF

T H E L A W S O F IN D IA N A
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
P re p a re d a n d R ev ise d b y M essrs. P ic k e n s , M o o b e s , D a v id so n
and P ic k e n s , A tto rn e y s a t L aw , In d ia n a p o lis .
(See C ard in A tto rn e y s ’ L ist.)
A c k n o w l e d g m e n t s . A ll c o n v ey an ces o t re a l e s ta te , e x c e p t le a se s
d o r less th a n th re e y e ars, m u s t b e in w ritin g , a n d a cknow ledged a n d
reco rd ed , o r th e y w ill n o t b in d th ir d p a rtie s. W ith in th e S ta te
a ck n o w led g m en ts m a y b e ta k e n b efo re a ju d g e o r clerk o f a c o u rt o f
reco rd , ju s tic e o f th e peace, a u d ito r reco rd er, n o ta iry public, m e m b e r
o f th e g en eral assem bly, o r m a y o r o f a c ity , a n d o n o th e r s ta te s a n d
te rrito rie s b efo re th e lik e officers, o r a com m issioner o f deeds for
In d ia n a . I n a n y fo reign c o u n try , b efo re a m in iste r, c h arg e d ’affaires
o r consul o f th e U n ite d S tates. I f su c h ack n o w led g m en t o r p ro o f
is in so m e o th e r th a n th e E n g lish lan g u ag e, o r is n o t a tte s te d b y su ch
official seal, i t m u s t b e a cco m p an ied b y th e certificate o f a n officer
o f th e U n ite d S tates, to th e effect t h a t i t is d u ly ex ecu ted according
to th e law s o f su ch fo reign c o u n try , a n d t h a t th e officer h a s legal
a u th o rity to c e rtify to th e p ro o f o r ack n o w led g m en t a n d th e m ean in g
o f h is certificate, if m a d e in a foreign lan g u ag e. W ife m u s t jo in in
d eed s a n d m o rtg ag es o f h u s b a n d ’s la n d s in o rd e r to c a rry h e r in ­
c h o a te o n e -th ird in te re s t in h u s b a n d ’s la n d s. N o s e p a ra te acknow l­
e d g m e n t o f w ife n ecessary in o rd e r to co n v ey h e r in c h o a te in te re s t
in h u s b a n d ’s la n d s, a lth o u g h sh e m u s t acknow ledge. T h e certify in g
officer sh o u ld s ta te th e d a te w hen h is co m m issio n expires.
A c tio n s . T h e d is tin c tio n s b e tw ee n la w a n d e q u ity a re ab o lish ed .
T h e s ta t u te p ro v id e s b u t one fo rm of a c tio n . P le a d in g s a re governed
»by code. N o n -re sid e n t p lain tiffs m u s t give b o n d to secure costs.


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

A d m i n i s t r a t i o n o f E s t a t e s . E x c e p t In M arlon C o u n ty , which
h a s a s e p a ra te p ro b a te c o u rt, th e c irc u it c o u rt h a s e xclusive p ro b a te
ju risd ic tio n . I n cases of In te s ta c y le tte rs a re g ra n te d in follow ing
o rd e r, 1. W idow o r w idow er. 2. N e x t of k in . 3. L a rg e st resi­
d e n t c re d ito r. L e tte rs of a d m in is tra tio n sh all b e g ra n te d in th e
o o u n ty , r . W h ere in te s ta te w as in h a b ita n t a t tim e of d e a th . 2.
W here, n o t being in h a b ita n t of th e S ta te , h e le a v es a sse ts. W here
a n in te s ta te , n o t bein g a n in h a b ita n t, s h all d ie o u t of th e S ta te ,
le a v in g a sse ts in sev eral co u n ties, le tte rs m a y b e g ra n te d In a n y one
of th e cou n ties in w hich su ch a sse ts m a y be a t tim e of d e a th ; a n d
th e a d m in is tra tio n first la w fu lly g ra n te d sh all e x te n d to all of th e
e s ta te . L e tte rs c a n n o t issue to a m a rrie d w o m an w ith o u t h e r hu s­
b a n d ’s co n se n t in w ritin g . Such c o n se n t m a k e s h u s b a n d jo in tly liable
w ith w ife.
P referen c e is g iven to foreign e x e c u to r of a deced en t
n o t a n in h a b ita n t of S ta te , if, before le tte r s a re g ra n te d in th is S ta te
i t a p p e a rs t h a t p ro p e r le tte rs h a v e b e en g ra n te d in a n o th e r s ta te ,
e x c e p t th e re b e re sid e n t c re d ito rs, le g a tee s a n d h e irs e n title d to dis­
trib u tio n . w ho a re in h a b ita n ts of th e S ta te . N o a c tio n sh all be
b ro u g h t a g a in st a n e s ta te fo r a n y c laim a g a in st th e d e c e d e n t; b u t
th e h o ld e r th ereo f, w h e th e r th e claim be d u e o r n o t, sh all file a suoc ln c t a n d d e finite s ta te m e n t th e re o f in th e office of th e clerk of th e
c o u rt, s e ttin g fo rth a ll c re d its to w hich th e e s ta te is e n title d , an d
acc o m p a n ie d b y th e affid av its of th e c la im an t, his a g e n t, o r a tto rn e y ,
t h a t th e claim is ju s t a n d w holly u n p a id . I f claim be secured b y a
lien, th e lie n sh all be p a rtic u la rly s e t fo rth . T h e claim m u s t be filed
w ith in one y e a r fro m th e n o tic e of th e a d m in is tra to r's a p p o in tm e n t,
o r c la im a n t m u s t p a y co sts; a n d if n o t filed a t le a st th i r t y d ays
before th e final s e ttle m e n t of th e e sta te , i t sh all be b a rre d , e x ce p t
t h a t h eirs, devisees a n d d is trib u te e s sh all be lia b le to th e e x te n t of
th e p ro p e rty received b y th e m , to a n y u n p a id c re d ito r w ho six m o n th s
p rio r to th e final s e ttle m e n t w as in san e , a n in fa n t, o r o u t of th e
S ta te ,— s u it to be b ro u g h t w ith in o ne y e a r of re m o v a l of d isab ility ,
a n d if u p o n claim of n o n -re sid e n t c re d ito r, w ith in tw o y e ars of th e
s e ttle m e n t of th e e sta te .
A f f id a v its m a y b e ta k e n before a n y officer qualified to ta k e acknow l­
e d g m e n ts (see a b o v e).
D a te of e x p ira tio n of officer’s com m ission
m u s t be certified.
A lle n s . R e s id e n t a lie n s w ho h a v e d e c la re d th e ir in te n tio n to
becom e citizens, m a y a cq u ire , ho ld , a n d e n jo y real e sta te , a n d m ay
convey, devise, m ortg ag e, o r o th e rw ise e n c u m b e r th e sam e, in like
m a n n e r a n d w ith th e sam e effect a s c itiz en s of th is S ta te . A liens,
w h e th e r re s id e n t o r n o t, m a y ow n real e s ta te n o t exceeding 320 acres;
la n d s in excess of t h a t a m o u n t th e y m u s t co n v ey w ith in five y e ars or
suffer e sc h e at a s to su ch excess.
A r r e s t f o r D e b t. D e fe n d a n t in a civil a c tio n m a y be a rre s te d and
h e ld to bail in th e a m o u n t claim ed, a t a n y tim e before ju d g m e n t, on
a ffid a v it t h a t h e is a b o u t to le a v e th e S ta te , ta k in g w ith h im p ro p e rty
s u b je c t to ex ecu tio n , w ith in te n t to d e la y o r d e fra u d th e plaintiff.
B ond is req u ired of plaintiff.
A s s i g n m e n t s a n d I n s o l v e n c y . A n y d e b to r m a y m a k e a general
a ssig n m e n t of all p ro p e rty in t r u s t fo r b en efit of all b o n a fide c re d ito rs.
T h is t r u s t is a d m in iste re d u n d e r th e d ire c tio n of th e c o u n ty c o u rt.
D ividends a re allow ed o n all claim s allow ed b y th e tru s te e o r c o u rt.
D e b to r is n o t d isch arg ed fro m h is lia b ilities.
A t t a c h m e n t m a y issue a g a in s t th e p ro p e rty of a n o n -re sid e n t or
foreign c o rp o ra tio n , a n d a g a in s t a n y w ho m a y h a v e disposed of, o r be
a b o u t to dispose of, p ro p e rty , to c h e a t, h in d e r o r d e la y cre d ito rs, o r
a g a in s t a c re d ito r w ho conceals him self so t h a t sum m ons c a n n o t be
serv ed u p o n him . A n a ffid a v it is re q u ire d , a n d a b o n d to p a y d a m ­
ages if th e proceedings be w rongful o r oppressive. C red ito rs w ho file
u n d e r th e original a tta c h m e n t, before final ju d g m e n t, a re required
to fu rn ish a lik e a ffid a v it a n d b o n d , a n d a ll sh a re pro r a ta in th e
proceeds of th e a tta c h e d p ro p e rty . T h e w ages of a re s id e n t house­
holder, n o t exceeding one m o n th a t a n y one tim e , a re e x e m p t so lo n g as
d e b to r re m a in s in su ch e m p lo y m e n t. I t is a m isd e m ea n o r to send
claim s o u t of th e S ta te to be collected b y a tta c h m e n t, o r g a rn ish m e n t,
w h en c re d ito r, d e b to r, a n d p e rso n ow ing fo r earn in g s in te n d e d to
b e re a ch e d a re a ll w ith in th e ju risd ic tio n of th e c o u rt of th is S ta te .
T h e collection of claim s so s e n t m a y be e n jo in e d .
f
B a n k s , P r i v a t e . A c t of 1907 (In effect D ec. 1, 1907), re g u la tin g
p riv a te b a n k in g ap p lies to a n y o ne w ho m a y use th e w ord “ b a n k ”
in h is business. C ap ital m u s t b e a t le a s t $10,000, n o t m o re th a n oneth ir d of w hich m a y be in v e ste d in th e b a n k b u ild in g . A ll re a l e s ta te
m u s t b e h e ld in n a m e of b a n k . B a n k c a n n o t in v e st in re a l e s ta te
e x c e p t in realizing on d o u b tfu l claim . S ta te m e n t m u s t b e filed w ith
s ta te a u d ito r . show ing co p y of a rtic le s of p a rtn e rs h ip acknow ledged
(one of th e p a rtn e rs to b e re s id e n t of th e s t a t e ) ; lo c a tio n , a m o u n t
of c a p ita l, n e t w o rth of p a rtn e rs to b e d o u b le c a p ita l p a id In, nam es
of officers. L ist of officers m u s t b e p o sted in b a n k . Tw o re p o rts of
resources a n d lia b ilities a re called fo r each y e a r b y a u d ito r a n d p u b ­
lish ed In lo cal new sp ap er. E x a m in a tio n of b a n k m a d e a t m a st
a n n u a lly b y a u d ito r. S ta te m e n t o f p ro p e rty h e ld in t r u s t b y b a n k
m u s t be filed in c o u n ty re c o rd e r’s office. D e positors h a v e lie n on
a sse ts. Ju ris d ic tio n o v e r a ll p ersons In te re ste d is o b ta in e d by
process serv ed on officer in charge.
B a n k s , S a v in g s . G overned b y a g e n eral s ta t u te w hich re g u la te s
in m in u te d e ta il th e In v e stm e n ts a n d c o n d u c t of business. S avings
b a n k s m a y pu rch ase, ho ld , a n d co n v ey re a l e s ta te fo r th e follow ing
purposes, a n d none o th e r; F o r th e lo c a tio n of h a n k in g hou se; r e d
e s ta te m o rtg ag e d to i t in good fa ith fo r m o n ey lo a n e d , o r u p o n w hich
i t sh all h a v e pu rc h a se d a m o rtg ag e ; real e s ta te ta k e n u p o n ju d g m e n ts
a n d decrees on b e h alf of th e b a n k , o r p u rc h a se d to p re v e n t loss on
claim s h e ld b y th e b a n k .
B a n k s , S t a t e . R e g u la te d b y a g eneral b a n k in g law .. T h e a u d ito r
of th e s ta te a p p o in ts a s ta te b a n k e x a m in e r w ho s h a ll n o t be a
d ire c to r o r o th e r officer of th e b a n k , a n d sh all h a v e p o w e r to m ak e
a th o ro u g h e x am in atio n in to all th e affairs of th e b a n k , a n d , in d o in g
so, to e x am in e a n y of th e officers a n d a g e n ts th e re o f o n o a th . T h e
e x a m in e r re p o rts in d e ta il th e c o n d itio n of th e b a n k fro m tim e to
tim e . T h e s ta te b a n k s m u s t m a k e n o t less th a n five re p o rts each
y e a r, v erified b y th e p re s id e n t, o r o th e r m a n a g in g a g e n t, w hich
re p o rts m u s t e x h ib it th e re so u rc es a n d lia b ilities a t th e close of bu si­
n e ss o n a n y p a s t d a y to be b y th e a u d ito r specified. T h e re p o rt so
re q u ire d m u s t be p u b lish e d in a n e w sp a p e r w h ere th e b a n k is e sta b llsh e d , o r, if th e re is no n e w sp a p e r in th e place, th e n in o ne p u b ­
lish ed n e a re s t th e re to in th e sam e c o u n ty o r a n a d jo in in g c o u n ty .
T h e a u d ito r m a y re q u ire special re p o rts fro m a n y b a n k , w h e n ev e r
in h is Ju d g m en t, It s h a ll be n e ce ssa ry in o rd e r to a fu ll know ledge of
its co n d itio n . A n y b a n k fa ilin g to m a k e such re p o rt s h all be s u b je c t
to a p e n a lty of $ 1 0 0 fo r e ac h d a y t h a t i t delay s to m a k e a n d tra n s m it
th e sam e. A ll b a n k s a re em pow ered to execute tr u s ts a n d a c t a s
tru ste e s.
B ills o f E x c h a n g e a n d P r o m is s o r y N o te s . N o grace is allow ed.
D am ages fo r p ro te s t on bills u p o n a n y p e rso n a t a n y pla c e o u t of
th is S ta te , b u t w ith in th e U n ite d S ta te s , 5 p e r c e n t o n bills d ra w n
u p o n a n y p erso n a t a n y place w ith o u t th e U n ite d S ta te s , 10 p e r c en t.
(See N e g o tia b le In s tru m e n ts .)
. C h a tte l. M o r tg a g e s , c h a t te l m o rtg a g e o n p e rso n al p ro p e rty le ft
In th e h a n d s of th e m o rtg a g o r w ith p o w e r to sell m u s t s tip u la te t h a t
th e m o n e y received b y th e sale be a p p lie d to th e p a y m e n t of th e
m o rtg ag e d e b t, a n d sh ould be d ra w n fin th e fo rm o f a n a b so lu te bill
of sale; m u s t be acknow ledged in th e sam e m a n n e r a s p re scrib ed fo r
th e a ck n o w le d g m e n t of deeds, a n d reco rd ed w ith in te n d a y s from
e x ec u tio n , a n d in th e c o u n ty w here th e m o rtg a g o r resid es. A n
a ssig n m e n t of goods, b y w a y of m o rtg ag e , w here su ch goods a re n o t

B A N K I N G A N D C O M M E R C IA L L A W S — I N D I A N A
d e liv e re d to th e m o rtg ag ee, sh all n o t be v a lid a g a in st a n y o th e r perso n
th a n th e p a rtie s th e re to , u n less su ch m o rtg ag e sh all b e ack n o w led g ed ,
a n d re c o rd e d w ith in te n d a y s a lte r th e ex ec u tio n th e re o f. W h ere
d e liv e ry of th e c h a tte ls to th e m o rtg ag e e occurs a t th e tim e , reco rd
Is u n n ecessary . A m o rtg ag e e of h o u seh o ld goods c an n o t sell m o rt­
gag ed p ro p e rty e x c e p t u n d e r a ju d ic ia l p ro ceed in g in th e c irc u it o r
su p erio r co u rt. F o r c e rta in re stric tio n s o n th e le n d in g o f m o n ey
on m o rtg ag e o f household goods, see th e s ta tu te s .
C o n v e y a n c e s . A ll conveyances, m o rtg ag e s o r leases fo r m o re th a n
th re e y e a rs s h all b e re c o rd e d a n d ta k e p rio rity acco rd in g to tim e o f
filing a s a g a in st good f a ith p u rc h a se r, lessee o r m o rtg ag ee. L a n d s in
th is S ta te m a y b e ta k e n , h eld , co n v ey ed , d evised, o r p assed b y
d e sc e n t, b y o r fro m a n y citiz en of th e U n ite d S ta te s ; o r b y o r fro m
a n y a lie n (see A liens), w ith som e p ro v id e d e x ce p tio n s a s to d e sc e n t
o r devise. L a n d s w h ich m a y h a v e com e b y d e sc e n t o r p u rc h a se to
'th e w ife of a n alien , m a y b e held, co n v ey ed , d ev ised a n d p assed b y
-descent b y a n d fro m h e r, n o tw ith s ta n d in g th e fa c t of h e r resid en ce
w ith h e r h u s b a n d In a fo reig n s ta te o r c o u n try .
E x c e p t bo n a-fid e leases fo r a te rm n o t ex ceed in g th re e y e ars, con­
vey an ce of la n d s, o r of a n y in te re s t th e re in , m u s t b e b y d eed, su b ­
scrib ed , a n d a ck n o w led g ed b y th e g ra n to r o r b y h is a tto rn e y in fa c t.
T h e jo in t d eed of a h u s b a n d a n d w ife is sufficient to p ass th e la n d s
o f th e w ife. E x c e p t in cases of m o rtg ag e s, co n v ey an ces in tr u s t,
-conveyances to h u s b a n d a n d wife, a n d cases of e s ta te s V ested in
•executors o r tru s te e s, a s su ch , a n d so h eld b y th e m in jo in t te n a n c y ,
a ll conveyan ces a n d devises of la n d s, o r of a n y in te re s t th e re in , m ad e
to tw o o r m o re p ersons, sh all be c o n stru e d to c re a te e sta te s in com ­
m o n , a n d n o t in jo in t te n a n c y , u n less i t sh all b e e x p ressed th e re in
t h a t th e g ra n te e s o r dev isees sh all h o ld th e sam e in jo in t te n a n c y
a n d to th e su rv iv o r o f th e m , o r i t sb all m a n ife stly a p p e a r fro m te n o r
-of In s tru m e n t, t h a t It w as in te n d e d to c re a te a n e s ta te In jo in t te n a n c y .
A deed of release o r q u it-cla im sh all p a ss all th e e s ta te w hich th e
-grantor co u ld co n v ey b y a d eed of b a rg a in a n d sale. I f i t b e th e
in te n tio n of th e g ra n to r to co n v ey a n y lesser e s ta te I t m u s t b e so
■expressed in th e d eed. L ia b ility o n lin e a l a n d co lla teral w a rra n tie s
is ex p re ssly a b o lish ed ; a c o v e n a n t o r a g re e m e n t o f a n y p erso n leav es
'heirs a n d devisees an sw erab le th e re o n o n ly to th e e x te n t of p ro p e rty
d e sc e n d e d o r d ev ised to th e m . A n y co n v ey an ce o f la n d w o rd ed —
“ A . B . oonveys a n d w a rra n ts to 0 . D . (here describ e th e prem ises)
•for th e sum o f (here In se rt th e c o n sid e ra tio n ),” o r “ A . B . q u it-cla im s
-to 0 . D . (here d escrib e th e prem ises) fo r th e su m of (here in s e rt th e
■ consideration),” — th e sam e b e in g d a te d , a n d d u ly signed a n d ack n o w l­
e d g e d b y th e g ra n to r,— sh all, in th e one case, b e a c o n v ey an ce in fee
sim p le to th e g ra n te e , h is h e irs a n d assigns, w ith c o v e n a n t fro m th e
g r a n to r fo r h im self a n d h is h e irs a n d p e rso n al re p re s e n ta tiv e s t h a t
h e is la w fu lly seized of th e p rem ises, h a s good rig h t to co n v ey th e
■same, a n d g u a ra n te e s th e q u ie t p ossession th e re o f, t h a t th e sam e a re
tr e e fro m all in c u m b ra n c es, a n d t h a t h e w ill w a rra n t a n d d efen d th e
title of th e sam e a g a in st all law fu l claim s; a n d sh all, in th e o th e r
c a s e . b e deem ed to b e a good a n d sufficient co n v ey an ce in q u it-claim
-to th e g ra n te e , h is h e irs a n d assigns. A n y m o rtg ag e of la n d s w orded
— “ A . B . m o rtg ag e s a n d w a rra n ts to C. D . (here d escrib e th e prem ises)
-to secure th e re p a y m e n t of (here re c ite th e su m fo r w hich th e m o rtg ag e
As g ra n te d o r th e n o te o r o th e r ev id en ces of d e b t, o r a d e sc rip tio n
th e re o f, so u g h t to b e secu red , also th e d a te of th e re p a y m e n t)” — th e
sam e b e ing d a te d a n d d u ly sig n ed a n d a ck n o w led g ed b y th e g ra n to r
— is a sufficient m o rtg ag e to th e g ra n te e , h is h eirs, assigns, e x ec u to rs
■and a d m in is tra to rs , w ith w a rra n ty fro m th e g ra n to r a n d h is leg al
re p re s e n ta tiv e s of title p e rfe c t a n d u n in c u m b e re d in th e g ra n to r,
w h e n a deed p u rp o rts to co n v ey a b so lu te ly a n y e s ta te in la n d s, b u t
4s m a d e , o r in te n d e d to b e m ad e, d efeasib le b y force of a d e ed of
d e fe asa n ce , b o n d o r o th e r in s tru m e n t fo r t h a t p u rp o se, th e o rig in al
•conveyance sh all n o t th e re b y b e d e fe ated o r affected a s a g a in s t a n y
p erson o th e r th a n th e m a k e r of th e d efeasan ce, o r h is h e irs o r devisees,
-or p ersons h a v in g a c tu a l n o tic e th e re o f, u n less th e in s tru m e n t of
•defeasance sh all h a v e b e en reco rd ed , a cco rd in g to law , w ith in n in e ty
•days a fte r th e d a te o f said d eed. E v e ry co n v ey an ce o r m o rtg ag e of
•lands, o r of a n y in te re s t th e re in , a n d e v ery lease fo r m o re th a n th re e
y e a rs, sh all b e deem ed fr a u d u le n t a n d v o id a s a g a in st a n y su b se q u e n t
p u rc h a se r, lessee o r m o rtg ag e e in good fa ith a n d fo r a v a lu a b le con-alderatlon, u n less reco rd ed in th e re c o rd e r’s office of th e c o u n ty w here
s u c h la n d s a re s itu a te d . (See A cknow ledgm ents, M a rrie d W om en.)
C o r p o r a tio n s . D o m estic C o rp o ratio n s. C o rp o ra tio n s a re c re a te d
•only u n d e r g en eral s ta tu te s . T h is is d o n e b y m ean s of a rtic le s of
•association, filed w ith th e se c re ta ry of s ta te , a n d th e re c o rd e r o r clerk
o f th e c o u n ty , a s p ro v id e d b y s ta tu te . T h e lia b ility of sto ck h o ld ers
v aries a cco rd in g to th e n a tu re o f th e c o rp o ra tio n in q u e stio n a n d th e
la w u n d e r w hich i t w as o rg an ized . I n th e c o rp o ra tio n s w hich w ere
'in e x isten c e N o v em b er 1, 1851, a n d w hich a c c e p te d th e te rm s of th e
a c t of M arch 6 , 1883, sto ck h o ld ers a re liab le, in case of insolvency,
f o r a su m a t le a s t e q u al to a m o u n t of sto ck h e ld a t tim e th e d e b t
w as c o n tra c te d . I n m o st co rp o ra tio n s, sto ck h o ld ers w ho h a v e p a id
f o r th e ir s to ck a re n o t lia b le fo r d e b ts of th e co m p an y . H ow ever,
th e r e Is lia b ility in som e cases fo r la b o r a n d serv ices of em ployes.
S h a re s of c a p ita l s to c k in a p riv a te c o rp o ra tio n a re s u b je c t to a tta c h ­
m e n t. A n n u a l re p o rts m u s t b e filed in J u n e w ith th e S e c re ta ry o f
‘S ta te .
F o reig n C o rp o ratio n s. A g en ts o f fo reig n c o rp o ra tio n s, before
■entering u p o n th e d u tie s of th e ir a g en c y in th is S ta te , sh all d e p o sit
in th e c le rk ’s office o f th e c o u n ty , w h ere th e y p ro p o se d o in g b usiness,
th e p o w e r o f a tto rn e y , o r a p p o in tm e n t, u n d e r w hich th e y a c t. T h e y
-shall also file a d u ly a u th e n tic a te d o rd er, re so lu tio n o r o th e r sufficient
a u th o rity of th e b o a rd of d ire c to rs a u th o riz in g citizen s o r re sid en ts
of th is S ta te h a v in g a d e m a n d a g a in s t su ch c o rp o ra tio n a risin g o u t
of a n y tra n s a c tio n In th is S ta te w ith su ch a g e n ts to m a in ta in a n
-action in re sp ec t to th e sam e in a n y c o u rt o f th is S ta te of c o m p e te n t
ju risd ic tio n , a n d a u th o riz in g serv ice of p ro cess on su ch a g e n t, a n d
t h a t su ch serv ice sh all a u th o riz e J u d g m en t a n d a ll o th e r p roceedings
.ag a in st su ch co rp o ra tio n . By a c t o f 1913, foreign co rp o ratio n s
m u s t file w ith a u d ito r o f S ta te c ertified co p y o f v o te o f d ire c to rs
c o n se n tin g to a c c e p t serv ice o f su m m o n s on a u d ito r o f S ta te a s su m ­
m o n s o n co rp o ra tio n . I f fo reign c o rp o ra tio n h a s n o a g e n t w ith in
•State, su m m o n s m a y b e serv ed o n A u d ito r o f S ta te , w ho shall n o tify
-corporation. C o n tra c ts m a d e b y su c h a g e n ts sh all n o t b e enforced
in a n y c o u rt o f th is S ta te u n til th e re h a s b een a co m p lian ce w ith
th e a b o v e provisions. F a ilu re o f a foreign c o rp o ra tio n to co m p ly
w ith th e se p ro v isio n s w ill n o t b a r— b u t w ill a b a te su ch a ctio n . A n y
p erso n w ho sh all, d ire c tly o r in d ire c tly .receive o r tra n s m it m o n ey
•or p ro p e rty to o r fo r su ch c o rp o ra tio n , o r m a k e a n y c o n tra c t, or
tra n s a c t a n y business fo r o r o n a c c o u n t o f a n y su ch co rp o ra tio n ,
«shall b e d eem ed a g e n t. T h is p ro v isio n does n o t a p p ly , h o w ever,
to p ersons a c tin g a s a g e n ts fo r a sp ecial o r te m p o ra ry p u rp o se o r fo r
p u rposes n o t w ith in th e o rd in a ry b usiness, n o r does i t a p p ly to
¿ atto rn e y s a t la w . A n y p e rso n a c tin g a s a g e n t o f a fo reign co rp o ra ­
tio n , w ho sh all n e g le ct o r refu se to co m p ly w ith th e fo regoing p ro ­
visions, is lia b le to a fine in a n y su m n o t less th a n $50. I n 1879 i t
w as e n a c te d t h a t ; E v e ry fo reig n c o rp o ra tio n n ow doin g o r tra n s ­
a c tin g , o r t h a t s h all h e re a fte r do o r tra n s a c t, a n y b u sin ess in th is
S ta te , o r a cq u ire a n y rig h t, t i t l e o r In te re s t in o r lie n u p o n re a l e s ta te
‘in th is S ta te , t h a t sh all tra n s fe r o r cau se to b e tra n s fe rre d fro m a n y
c o u rt of th is S ta te to a n y c o u rt o f th e U n ite d S ta te s , sav e b y re g u la r
course of a p p e a l a f te r tria l in th e S ta te c o u rts, a n y a c tio n com m enced
b y o r a g a in st su ch c o rp o ra tio n in a n y c o u rt of th is S ta te b y o r a g a in st
a n y citiz en o r re sid e n t th e re o f: o r t h a t sh all com m ence In a n y c o u rt
o f th e U n ite d S ta te s in th is S ta te , o n a n y c o n tra c t m a d e in th is
-State, o r lia b ility a c c ru e d th e re in , a n y s u it o r a c tio n a g a in s t a n y
••citizen o r re sid e n t o f th e S ta te of In d ia n a , sh all th e re b y fo rfe it all


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

1419

rig h t a n d a u th o rity to do o r tra n s a c t business in th is S ta te , o r h o ld
re a l p ro p e rty o r liens th e re o n , a n d all c o n tra c ts b etw een su ch cor­
p o ra tio n s a n d c itizens a n d re sid en ts of th is S ta te m a d e a f te r th e
passage of th is a c t sh all b e re n d e re d void, a s in fa v o r of su ch cor­
p o ra tio n s, b u t enforceable b y su ch citiz en a t his electio n . T h e p ro ­
visions of th e foregoing sectio n a re m a d e co n d itio n s u p o n w hich
su ch c o rp o ra tio n s m a y b e a u th o riz e d to do business, o r h o ld title s to ,
o r liens on, re a l e s ta te in th is S ta te . B y th e a c t of 1901, foreign
c o rp o ra tio n s a re re q u ire d to d e sig n a te a n a g e n t in th is S ta te ' u p o n
Whom iegal process m a y b e se rv e d ; to h a v e a n office w here p ro p e r
books of a c c o u n t m a y b e k e p t. By a c t of 1907 foreign c o rp o ra tio n s
d esiring adm issio n to s ta te m u s t m a k e verified s ta te m e n t to Secre­
ta r y of S ta te show ing; a rtic le s of in c o rp o ra tio n , b usiness in te n d e d
to p u rsu e , c a p ita l sto ck , p ro p o rtio n of its b usiness c arrie d on in th is
S ta te , a m o u n t p a id in o n c a p ita l sto ck , a n d an sw ers to o th e r in te r­
ro g a to ries p ro p o u n d e d b y th e S e c re ta ry of S ta te , a n d s h all p a y a
fee of $25 o n first $10,000 of a sse ts u sed in In d ia n a , $10.00 fo r each
a d d itio n a l $10,000. A n n u al re p o rt m u s t be filed in J a n u a ry a n d fee
o f $1 p a id . F o reig n c o rp o ra tio n s m a y n o t h o ld re a l e s ta te except
su ch a s m a y b e necessary fo r p ro p e r c a rry in g on o f its le g itim a te
business.
C o u r ts . T erm s a n d J u ris d ic tio n . T h e c irc u it c o u rt is th e o nly
c o u rt of orig in al general civil ju risd ic tio n in th e S ta te . I t h a s fu ll
p ro b a te pow ers, e x c e p t in M arion C o u n ty , w here th e re is a s e p a ra te
p ro b a te c o u rt. S u p e rio r c o u rts h a v e b e en e sta b lish e d in m a n y
c o u n tie s. J u s tic e ’s ju risd ic tio n , $200. P a r ty m a y confess ju d g m e n t
before a Ju stice of th e peace fo r $300. W h en a w ritte n o b lig a tio n fo r
m o n e y b in d s m o re th a n one p a r ty th e Ju stice of th e peace m a y issue
rocess to c o n sta b le of a n y c o u n ty in th e S ta te w h ere p a r ty resides.
he su p rem e c o u rt h a s no orig in al ju risd ic tio n . I t sits a t In d ia n a p o lis.
T h e a p p e lla te c o u rt h a s final ju risd ic tio n in m a n y cases.
D a y s o f G r a c e a re no lo n g e r recognized.
D e p o s iti o n s . D epositions m a y b e ta k e n a n y w h ere in th e U n ite d
S ta te s w ith o u t a com m ission, before a n y ju d g e, ju s tic e of th e peace
n o ta ry public, m a y o r, o r re c o rd e r of a c ity , c le rk of a c o u rt of record,
o r com m issioner a p p o in te d b y th e c o u rt to ta k e d epositions. P e r­
son ta k in g d e p o sitio n m u s t n o t b e of k in to e ith e r p a r ty o r in te re s te d
in th e a ctio n . W h en ta k e n o u tsid e of th e U n ite d S ta te s th e y sh all
be ta k e n p u rs u a n t to a n o rd e r of th e c o u rt, u n d e r a com m ission, w ith
such re a so n a b le n o tic e of th e tim e a n d place of ta k in g th e sam e as
th e c o u rt shall re q u ire , a n d th e y sh all b e certified a n d re tu rn e d b y
th e com m issioner In su ch m a n n e r a s th e c o u rt sh all d ire c t. N o tic e
of th e ta k in g of th e d e p o sitio n sh o u ld be serv ed u p o n th e ad v erse
p a r ty o r his a tto rn e y , specifying th e cause, th e c o u rt o r trib u n a l of
tria l, th e tim e a n d p lace of ta k in g , a n d th e n am es of th e w itnesses.
R ea so n ab le tim e sh all be allow ed fo r th e a tto rn e y so serv ed to com ­
m u n ic a te w ith th e c lien t, a n d fo r tra v e l to th e pla c e of ta k in g , e xclud­
in g th e d a y of service, of th e ta k in g , of a n d in te rv e n in g S u n d a y s.
T h e d e p o n e n t sh all b e first sw orn a cco rd in g to law . H e s h all th e n
be e x am in ed b y th e p a r ty p ro d u c in g h im , a n d th e n b y th e a d v erse
p a rty , a n d th e n b y th e officer, if h e see cause. T h e d e p o sitio n sh all
be w ritte n dow n b y th e officer, b y th e d e p o n e n t, o r b y som e disin­
te re ste d person. In th e presence a n d u n d e r th e d ire c tio n of th e officer,
a n d a f te r th e sam e h a s been carefu lly re a d sh all b e su b sc rib e d b y
him . T h e jollow ing fa c ts sh all be s ta te d in a c ertific a te to b e a n n ex e d
b y th e officer: 1. T h a t th e d e p o n e n t w as sw o rn a cco rd in g to law .
2. B y w hom th e d e p o sitio n w as w ritte n , a n d if w ritte n b y d e p o n e n t
o r som e d isin te re ste d person, t h a t i t w as w ritte n in th e presence a n d
u n d e r th e d ire c tio n of th e officer. 3. W h e th e r th e a d v erse p a rty
a tte n d e d . 4. T h e tim e a n d place of ta k in g , a n d th e officer sh all
sign a n d a t te s t th e certificate, a n d seal th e sam e, if h e h a v e a seal of
office. I f h e h a v e n o seal, h is c e rtific a te sh all be a u th e n tic a te d b y
th e c ertific a te a n d seal of th e clerk o r p ro th o n o ta ry of a n y c o u rt of
re c o rd of th e c o u n ty in w hich th e officer exercises th e d u tie s of his
office. T h e officer ta k in g th e d ep o sitio n s h all seal th e sam e in a
sufficient envelope a n d him self p o st, o r ex p ress, o r d e liv e r th e sam e
to th e clerk of th e c o u rt In w hich th e a c tio n is pen d in g , e n dorsing
o n th e envelope th e n a m e s of th e p a rtie s a n d of th e c o u rt a n d of
th e w itnesses w hose dep o sitio n s a re enclosed. A d jo u rn m e n ts m a y be
h a d fro m d a y to d a y a f te r th e d e p o sitio n h a s b e en beg u n , a n d fo r
lo n g e r periods, u p o n w ritte n c o n se n t of th e p a rtie s , w hich w ritte n
co n se n t m u s t be a tta c h e d to th e d e p o sitio n . A d jo u rn m e n ts should
be n o te d a t th e place in th e d e p o sitio n w h en th e y occur. A n a rra tiv e
fo rm m a y b e used. A w itn e ss Id e n tify in g a w ritte n in s tru m e n t
sh ould a tta c h i t to h is de p o sitio n , m a k in g It a p a r t of h is answ er.
D e s c e n t. T h e re a l a n d p e rso n al p ro p e rty of a n y In te s ta te s h all
descend to h is o r h e r c h ild re n e q u a lly ; a n d p o sth u m o u s c h ild re n
In h e rit e q u a lly w ith th o s e b o m before th e d e a th of th e a n c e sto r.
C h ild ren of deceased c h ild re n ta k e th e sh a re w hich w ould h a v e
descen d ed to th e fa th e r o r m o th e r; a n d g ra n d c h ild re n , a n d m o re
re m o te d e sc e n d an ts, a n d o th e r re la tiv e s, lin e a l a n d c o lla te ra l, in h e rit
b y th e sam e rule, e x c e p tin g t h a t if th e h e irs a re a ll g ra n d c h ild re n
th e y in h e rit e q u ally . W h ere th e re a re n o h e irs as a fo re said , oneh a lf of th e e s ta te goes to th e fa th e r a n d m o th e r a s jo in t te n a n ts , o r
to th e su rv iv o r, a n d th e o th e r h a lf to th e b ro th e rs a n d siste rs, a n d
to th e d e sc e n d a n ts of su ch a s a re d e ad , a s te n a n ts in com m on. I f
th e re b e n e ith e r fa th e r n o r m o th e r, th e b ro th e rs a n d siste rs, a n d
th e o th e r d e sc e n d an ts, ta k e th e e s ta te a s te n a n ts in com m on; o r,
p e r c o n tra , th e fa th e r a n d m o th e r a s jo in t te n a n ts of th e su rv iv o r.
K in d re d of th e half-blood in h e rit e q u a lly w ith th o se of th e w holeblood in p ro p e rty p u rc h a se d b y th e a n c e s to r; o therw ise, as to p ro p e rty
a cq u ire d b y gift, devise, o r d e sc e n t. Ille g itim a te ch ild re n in h e rit
fro m th e m o th e r sam e a s if th e y w ere le g itim a te , a n d vice v e rs a .
T e n a n c y b v th e c u rte sy a n d d ow er a re a b o lish ed , a n d w idow s ta k e
o n e -th ird of th e re a l e s ta te in fee sim ple, unless tn e p ro p e rty Is w o rth
o v e r $ 1 0 , 0 0 0 , in w hich case, a s a g a in s t c re d ito rs, she ta k e s o n e -fo u rth
on ly ; a n d w here th e re a l e s ta te is w o rth o v e r $ 2 0 . 0 0 0 , one-fifth o n ly
a s a g a in s t c re d ito rs, b u t a s a g a in s t o th e r h e irs she ta k e s o n e -th ird
in fee sim ple, regardless of v alu e, e x c e p t w here th e re is b u t o ne
child, in w hich case each in h e rits o ne-half. A second o r s u b se q u e n t
w ife, how ever, ta k e s o n ly a life e s ta te in h e r h u s b a n d ’s la n d s, if th e re
be a child o r ch ild re n b y a p re v io u s m a rriag e , a n d n o n e b y such
w idow . O th e r special provisio n s of th e s ta t u te a re to o ex te n siv e to
s e t o u t. T h e e s ta te of a p erso n d y in g in te s ta te w ith o u t k in d re d
cap a b le of in h e ritin g w ill e sc h e a t to th e S ta te fo r th e s u p p o rt of th e
com m on schools. (See T axes.)
D o w e r . (See M arried W om en.)
E x e c u t i o n s m a y Issue a t a n y tim e w ith in te n y e a rs a fte r ju d g ­
m e n t a n d a re re tu rn a b le in 180 d a y s. F ro m a c o u rt of reco rd m a y
issue to a n y c o u n ty in th e S ta te . A re a lie n o n p e rso n al p ro p e rty
w ith in th e c o u n ty fro m th e tim e th e y a re p la c ed in h a n d s of officer.
T h e liens u p o n p e rso n al p ro p e rty a tta c h In th e o rd e r in w hich th e
officer receives th e m . W h e n le v y is u p o n re a l e s ta te th e d a te s of
th e ju d g m e n t c o n tro l th e rig h t to p a rtic ip a te in th e proceeds, a n d
th e y m u s t b e a p p lie d a cc o rd in g to th e ir p rio rity . P e rso n a l p ro p e rty
ta k e n in ex ec u tio n m a y b e le ft w ith e x ec u tio n d e fe n d a n t b y th e
g iving to th e officer of a d e liv e ry b o n d w ith sufficient s u re ty ; d e b to r
m a y , b y giving sufficient freehold su reties, h a v e a s ta y of e x ec u tio n
o n a n y sum exceeding $100, fo r six m o n th s . W h ere th e su m is less
th a n $ 1 0 0 , th e s ta y is n o t so long, v a ry in g w ith a m o u n t of ju d g m e n t.
L a n d s sold u n d e r e x ec u tio n m a y b e redeem ed w ith in one y e a r b y
th e ow ner, m o rtg ag ee o r p erso n h a v in g a lie n th e re o n , th e ow n er
re ta in in g possession d u rin g th e re d e m p tio n y e a r a n d b e in g lia b le fo r
re a so n a b le re n ts a n d p ro fits in case of fa ilu re to redeem .
E x e m p t i o n s . P r o p e r ty u p to $600 Is e x e m p t w h ere d e b to r is a
re sid e n t householder. R e sid e n t h o u seh o ld e r is e n title d to e x em p tio n

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B A N K I N G A N D C O M M E R C IA L L A W S — I N D I A N A

a s w ell w hen In tr a n s it w ith h is fa m ily a n d p ro p e rty a s w hen p e r­
m a n e n tly se ttle d . T h e d e b to r m u s t file a sch ed u le of a ll of his
p ro p e rty , a n d select th e p ro p e rty claim ed, w hich is th e n a p p ra ise d .
C o n tra c t w a iv in g e x em p tio n is v o id . P e n sio n m o n e y in tr a n s it to
p e n sio n e r is e x em p t, b u t w h en receiv ed b y h im a n d in v e ste d in o th e r
p ro p e rty Is n o m o re so th a n a n y o th e r p ro p e rty . O ne m o n th ’s w aves
also e x e m p t if th e d e b to r is s till e m p lo y ed .
8
F r a u d . A ssig n m en ts, in w ritin g o r o th erw ise, of a n y p ro p e rty
m a d e o r suffered w ith In te n t to h in d e r, o r d e fra u d a re v oid as to th e
Persons d e fra u d e d . T h e q u e stio n o f fra u d u le n t In te n t is a q u e stio n
o i la c t.
F ra u d s — S ta tu te of. T h e follow ing c o n tra c ts, if enforcible in c o u rt
m u s t b e in w ritin g a n d signed b y th e p a r ty to be c h arg ed : 1 . To
c h arg e a n e x e c u to r o r a d m in is tra to r, u p o n a n y special prom ise, to
a n sw e r d am ag es o u t of h is o w n e sta te . 2 . T o charge a n y person
u p o n a n y sp ecial p rom ise, to a n sw e r fo r th e d e b t, d e fa u lt, o r m is­
c arria g e of a n o th e r. 3. T o c h arg e a n y p erso n , u p o n a n y a g re e m e n t
o r p ro m ise, m a d e in c o n sid e ra tio n of m a rriag e . 4. U p o n a n y con­
tr a c t fo r th e sale of la n d (e x c ep t lo a n n o t ex ceed ing th e te rm of th re e
y e a rs). 5. U p o n a n y a g re e m e n t n o t to b e p erfo rm ed w ith in one
y e a r fro m th e m a k in g th e re o f. 6 . S ale of goods exceeding $ 5 0 in
v alue, u n less p a r t p a y m e n t o r p a r t d e liv e ry b e m ad e. 7 . U pon
a n y • re p re s e n ta tio n m a d e co n cern in g th e c h a ra c te r, c o n d u ct, c re d it
a b ility , tr a d e o r d ealin g s o f a n y o th e r person.
G a r n i s h m e n t . (See A tta c h m e n t.) G a rn ish m en t Is a re m e d y in
a id of a tta c h m e n t. U p o n a n y p e rso n al a c tio n a risin g o u t of c o n tra c t
a S& P 9 I S° “ m a y b e su m m o n ed as a g arn ish ee d e fe n d a n t u p o n a n
a ffid a v it t h a t official h a s good reaso n to b elieve t h a t a n y p erso n
n a m e d h a s p ro p e rty of th e d e fe n d a n t in his p ossession o r u n d e r his
c o n tro l, o r t h a t h e is in d e b te d to th e d e fe n d a n t, o r h a s c o n tro l or
a g en c y of m o n ey , p ro p e rty , cred its, o r effects; t h a t he h a s a n y sh are
o r in te re s t in th e s to ck of a n y a sso c iatio n o r c o rp o ra tio n , a n d all
m o n ey o r p ro p e rty in th e h a n d s of th e g arn ish ee d e fe n d a n t is b o u n d
fro m th e tim e th e su m m o n s is serv ed u p o n h im . R e s id e n t house­
h o ld ers a re e n title d to a n e x em p tio n of $600 in g a rn is h m e n t p ro c2 . ! £ gs’ a ®m all o th e r cases. W ages of n o n -resid e n ts, to th e a m o u n t
of $25,- a n d of re s id e n t h o u seh o ld ers to th e e x te n t of one m o n th ’s
w ages, a re e x e m p t fro m e x ec u tid n so lo n g as th e d e fe n d a n t re m a in s
in th e em p lo y of th e g arn ish ee. In d ia n a claim s c an n o t le g a lly be
s e n t o r ta k e n o u t of th e S ta te fo r p ro se cu tio n , a n d su its in s titu te d
elsew here in v io la tio n of th is p ro h ib itio n m a y be en jo in ed a n d th e
offender b e c rim in a lly p ro se cu te d .

H olidays. (See Bills of Exchange and Promissory Notes.)
H u sb an d an d Wife. (See Married Women.)

I n h e r i t a n c e T a x . (See T axes.)
I n t e r e s t . T h e leg al r a te is 6 p e r cent, b u t in te re s t m a y b e ta k e n
in a d v an c e . N o a g re e m e n t to p a y a h ig h e r r a te is v a lid unless th e
sam e b e In w ritin g , a n d in su ch case it is n o t law fu l to c o n tra c t fo r
m o re th a n 8 p e r c en t. W h en a g re a te r ra te is c o n tra c te d for, th e
co9 ,S c t t v o ir a s t0 3,11 in te re s t in excess of 6 p e r cen t, Is u su rio u s
a n a illegal, a n d th e excess m a y b e reco u p ed b y th e d e b to r w h en ev er
i t h a s b een re serv ed o r p a id b efo re th e b rin g in g of th e s u it. In te re s t
o n ju d g m e n ts ru n s fro m th e d a te o f th e v e rd ic t o r finding, a t th e
r a te specified in th e o rig in al c o n tra c t, n o t ex ceed ing 6 p e r c en t, a n d
if no c o n tra c t h a s b een m a d e 6 p e r c e n t Is allow ed.
Judgm ents of c o u rts o f reco rd arq a lien u p o n all re a l e s ta te of
d e fe n d a n t w ith in th e c o u n ty fo r te n y e ars. J u d g m e n t m a y be
o b ta in e d a t th e first te rm of th e c o u rt, a f te r p rocess h a s been served
on d e b to r te n d a y s p rio r to th e first d a y th e re o f. J u d g m e n t in ju stic e
9g W | becom es a lien o n real, e s ta te of ju d g m e n t d e fe n d a n t fro m tim e
of filing a tra n s c r ip t in office of th e clerk of c irc u it c o u rt. A certified
co p y of a n y ju d g m e n t re n d e re d b y th e c irc u it c o u rt of th e U n ite d
S ta te s fo r d is tric t of In d ia n a m a y b e filed w ith th e c o u n ty clerk.
Legal Holidays a s to co m m ercial p a p e r a re a s follow s: T h e first
day
we?K’ co m m o n ly called S u n d a y ; th e 1 s t d a y o f J a n u a ry ;
th e 4 th d a y o f J u ly ; th e 2 5 th d a y o f D ecem b er; a n y d a y a p p o in te d
b y th e p re sid e n t o r g o v e rn o r fo r p u b lic fa s tin g o r th a n k sg iv in g ; 12 t h
d a y o f F e b ru a ry ; 22d d a y o f F e b ru a ry ; 3 0 th d a y o f M a y ; first M o n d a y o f S ep tem b er; 1 2 th d a y o f O cto b er; a n d a n y election d a y ; w hen
a n y h o lid a y (o th e r th a n S u n d ay ) com es on S u n d a y th e M o n d a y n e x t
succeeding sh all b e th e legal h o lid a y ; S a tu rd a y a fte rn o o n is a legal
h a lf-h o h d a y m th e c ity o f In d ia n a p o lis a n d m a y be m a d e so b y a c t
o f b a n k ers m o th e r c ities o f o v e r 35,000 p o p u la tio n .
L ie n s . L ien s a re g ra n te d b y s ta t u te to a tto rn e y s ; to p ersons
h o ld in g claim s a g a in st w a te rc ra ft o n a c c o u n t of supplies fu rn ish e d o r
w ork do n e; also fo r d e m a n d s fo r d am ag es a risin g o u t of fre ig h t con­
tra c ts , o r fo r w illfulness o r negligence of th e m a ste r, ow ner, o r a g e n t,
o r o u t of a n y c o n tra c t re la tin g to tra n s p o rta tio n , a n d fo r in ju ries to
p erso n s o r p ro p e rty ; also to em ployes of a n y c o rp o ra tio n as a g a in st
a n y of its c o rp o ra te p ro p e rty o r e arn in g s fo r la b o r d o ne; a lso to
k eep ers of liv e ry sta b le s a n d a ll p erso n s en g ag ed in feed in g sto ck , fo r
th e feed a n d care b esto w ed u p o n th e sam e, also to b la c k sm ith s; also to
c o n tra c to rs, su b -c o n tra cto rs, m echanics, jo u rn e y m e n , laborers, a n d all
p erso n s p erfo rm in g la b o r o r fu rn ish in g m a te ria l o r m a c h in ery fo r
erectin g , lab o rin g , re p a irin g o r re m o v in g a n y h ouse, m ill, m a n u fa c to ry
o r o th e r bu ild in g , bridge, reserv o ir, s y ste m o f w ater-w orks, or o th e r
s tru c tu re , k n o w n a s a m e c h an ic ’s lien ; also to bailees a n d tra d e sm en
fo r th e ir v a lid a n d re a so n a b le ch arg es in th e co n stru ctio n , re p a ir,
o r a lte ra tio n o f a n y a rtic le o f v a lu e ; also to th e b ailee o r k e ep e r o f
p e rso n al p ro p e rty fo r a n y feed o r c are b esto w ed b y h im u p o n such
p ro p e rty ; special lien fo r sto ra g e o r re p a ir o f m o to r cars, also to fo r­
w a rd in g a n d com m ission m e rc h a n ts on goods w hich m a y h a v e rem ain ed
m s to re fo r one y e a r o r m ore. P erso n s sto rin g , fu rn ish in g supplies,
o r re p a irin g a n au to m o b ile o r g a ra g e ow ners h a v e lien on au to m o b ile
w hich c a n b e foreclosed w ith in o n e y e a r fro m fa ilu re o f ow ner to p a y
charges. Ju d g m e n ts re n d e re d in a n y c o u n ty in th e S ta te a re a lien
u p o n th e re a l e s ta te s itu a te d in su ch c o u n ty fo r a p erio d o f te n y e ars
fro m th e re n d itio n th ereo f, a n d ju d g m e n ts re n d e re d in th e federal
c o u rts a re a lien u p o n a n y re a l e s ta te in th e S ta te fo r th e sam e period.
P ro v isio n is m a d e b y s ta tu te , how ever, fo r th e filing in th e c o u n ty w here
th e real e s ta te is s itu a te d o f a tra n s c r ip t o f a n y ju d g m e n t re n d e re d
m th e U n ite d S ta te s co u rts. T h e office o f th e clerk o f th e c irc u it c o u rt
in each c o u n ty co n ta in s a p u b lic reco rd k n o w n a s th e , lis pen d en s
reco rd , m w h ich n o tic e o f th e filing o f co m p lain ts to enforce liana a re
re q u ire d to b e reco rd ed , a n d also in cases w h ere re a l estate-is seized b y
a tta c h m e n t o r execution. U nless so reco rd ed th e b ringing o f s u its
does n o t o p e ra te a s a c o n stru c tiv e n otice.
L i m i t a t i o n s t o S u i t s . A ctions fo r in ju r y to p e rso n a n d c h a ra c te r,
a n d fo r s ta t u to r y p e n a lty o r fo rfe itu re , tw o y e a rs; a g a in st p u b lic
officers re la tin g to th e ir official d u tie s, a n d o n p u b lic im p ro v em e n t
assessm en ts, five y e a rs: op en acc o u n ts a n d c o n tra c ts n o t in w riting,
fo r use,, re n ts a n d p ro fits of re a l e sta te , in ju ries to a n d d e te n tio n of
p ro p e rty , re c o v ery of p e rso n al p ro p e rty a n d relief a g a in st frau d s, six
y e a rs; u p o n p ro m isso ry n o te s, bills of ex ch an g e a n d o th e r w ritte n
c o n tra c ts fo r p a y m e n t of m o ney, te n y e a rs; a ctio n s n o t lim ite d b y
s ta tu te , fifteen y e a rs; o th e r w ritte n c o n tra c ts, ju d g m e n ts of c o u rts of
reco rd a n d re a l a ctio n s, tw e n ty y e ars. R ev iv o r: p a r t p a y m e n t o r
n ew p ro m ise in w ritin g . E x c e p t in fa v o r of su reties, th e s ta t u te of
lim ita tio n does n o t ru n a g a in st th e S ta te .
M a r r i e d W o m e n c o n tro l th e ir re a l a n d p erso n al p ro p e rty .
The
h u s b a n d is liab le fo r th e w ife’s d e b ts c o n tra c te d b efore m a rria g e to
th e e x te n t of th e p e rso n al p ro p e rty h e m a y receive fro m h e r, a n d no
fu rth e r, a n d h e r la n d s a re liab le fo r su ch in d e b te d n ess. A m a rrie d
w o m an m a y dev ise h e r s e p a ra te e s ta te ; m a y sell a n d tra n s fe r h e r se p a r­
a te p e rso n al p ro p e rty ; c a rry on a n y b usiness, la b o r, o r service, a n d
receiv e th e e arn in g s a cc ru in g th e re fro m ; e n te r in to a n y c o n tra c t in


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

re g a rd to h e r s e p a ra te p e rso n al e s ta te business, la b o r, o r service, an d
h e r s e p a ra te e sta te , re a l a n d personal, be lia b le th e re fo r, th e sam e a s a
fem m e sole; a n d h e r h u s b a n d is n o t liable fo r su ch d e b ts, n o r fo r
In d e b te d n e ss c re a te d b y th e w ife fo r im p ro v em e n t of h e r s e p a ra te
re a l e sta te . She c an m a k e leases of re a l e s ta te fo r te rm s of th re e
y e ars o r less, a n d ex ec u te m ortgages to secure p u rc h a se m oney, w ith ­
o u t h u s b a n d joining. She is b o u n d b y c o v en a n ts of title in convey­
an ces of h e r s e p a ra te real e sta te . H e r deed conveying h e r re a l e sta te ,
h e r h u s b a n d n o t joining, is a b so lu te ly void. S he m a y sue a s a fem m e
sole fo r a n y da m a g e to h e r person o r c h a ra c te r. S he is b o u n d in
like m a n n e r a s p rin c ip a l on h e r official b o n d . She c a n n o t e n te r in to
a n y c o n tra c t of su re ty sh ip , a n d such c o n tra c t as to h er, is w holly
v o id ; a n d th e re fo re a m o rtg ag e on h e r s e p a ra te p ro p e rty fo r a d e b t
lo r w hich she is m ere s u re ty indorser, o r g u a ra n to r, is v o id : b u t if
as a n in d u c e m en t to h e r c o n tra c t, she m akes a sw orn s ta te m e n t t h a t
c o n tra c t o r m o rtg ag e is fo r h e r ow n benefit, in re sp ec t to h e r se p a ra te
e sta te , she is e sto p p e d from alleging h e r s u re ty sh ip a s a g a in st a n v
one h a v in g no know ledge t h a t th e c o n tra c t is one of su re ty sh ip .
S>he is e n title d to hold a s e x em p t from ex ec u tio n h e r w earin g a p p a re l.
aI w I I ,
Pe.rson a l a d o rn m e n t p u rc h a se d b y herself to th e a m o u n t
of $ 2 0 0 in value, a ll jew elry, o rn a m e n ts, books, e tc ., w hich m a y h av e
been given h e r a s p re se n ts; a n d o th e r p ro p e rty to th e a m o u n t of
$ jo o , e x c e p t a s a g a in st in d e b te d n ess fo r th e p u rc h a se m o n ey th e re ­
for. A w idow ta k e s o n e -th ird of h e r deceased h u s b a n d ’s re a l e s ta te
in fee, a n d free from a ll d em an d s of c re d ito rs, w h ere th e e s ta te does
n o t exceed $ 1 0 , 0 0 0 ; o n e-fourth, if u n d e r $ 2 0 , 0 0 0 , a n d one-fifth, if
a b o v e t h a t a m o u n t. She also ta k e s a c h ild ’s in te re s t in th e per­
so n a lty w here th e n u m b e r of child ren does n o t exceed tw o, a n d w here
th e re a re m o re th a n tw o h e r in te re s t sh all n o t be less th a n o n e -th ird
282tbe .''y£°le of p e rso n a lty a fte r p a y m e n t of d e b ts, a n d in a ll cases
ta k e s $500 w ith o u t a ccounting, a n d m a y occu p y th e dw elling a n d
Jo rty a cres of h e r h u s b a n d ’s la n d fo r a y e ar, re n t free. B u t th e oneth ir d of h e r re a l e s ta te w hich th e w idow ta k e s in fee, c an n o t, u p o n
h e r m a rry in g a g ain , be effectively conveyed o r m o rtg ag e d b y h e r, if
th e re be a cM ld o r children, o r th e ir d e sc e n d an ts, aliv e b y th e previous
m a rriag e . R e a l e sta te w hich h u s b a n d a n d wife ho ld b y title m ad e
h u sb a n d a n d wife, is h eld a s a n e s ta te b y e n tire ty ; i t c an
n o t be ta k e n fo r th e d e b t of e ith e r; is n o t s u b je c t to th e lie n of a
ju d g m e n t a g a in st eith er, e x ce p t in case of th e d e a th of e ith e r o r u p o n
divorce g ra n te d , w hen th e e s ta te is d e stro y ed a n d becom es s u b je c t
asas^s?
a n d a m o rtg ag e th e re o f b y th e m b o th fo r a d e b t
of th e h u s b a n d h a s no legal v a lid ity .

M ortgages.

(See Conveyances.)

^ ^ So0tia0bI<;. In s,t r u m ? P t s ,a re defined b y C h a p te r 63 o f th e A cts
o r 1913. S ection 1 provides t h a t a n in s tru m e n t to be neg o tia b le m u s t
conform to th e follow ing re q u ire m e n ts:

1.

I t must be in writing and signed by the maker or drawer.

2 . M u s t c o n ta in a n u n c o n d itio n a l p r o m is e o r o r d e r t o p a v a c e r­
ta in su m in m oney.
*
fu tu re^ rim e
p a y ab le on d em an d , o r a t a fixed or d e te rm in a b le
4. M u s t be p a y ab le to o rd e r or to bearer.
5. W here th e in s tru m e n t is a d d ressed to a draw ee, h e m u s t be
n a m e d o r otherm se^ in d ic a ted th e re in w ith rea so n a b le c e rta in ty .
tv. U ?,,ileg?tia n11^ m natL•?,-ffected b y a p rovision w hich a u th o riz e s
th e sale o f c ollateral .securities in case th e in s tru m e n t is n o t p a id a t
m a tu rity , o r au th o rizes a confession o f ju d g m e n t if th e in s tru m e n t
pal? a t m a tu rity , ° r w aives th e b en efit o f a n y law in te n d e d for
th e a d v a n ta g e o f th e obligor, or gives th e h o ld e r a n election to re q u ire
so m eth in g to_be done m lieu o f th e p a y m e n t of m oney.
"£? charge indorser no tice o f n o n -p a y m e n t m u s t b e given to h im a t
once, unless w aived b y him .
E v e ry negotiable in s tru m e n t is p a y a b le a t th e tim e fixed th e re in
w ith o u t grace. W here d a y o f m a tu r ity falls on S u n d a y or a h o lid a y
& p a y ab le on n e x t succeeding business d a y . In s tru m e n ts
payable_ on S a tu rd a y a re to be p re s e n te d fo r p a y m e n t o n n e x t succeed­
in g business day , except t h a t d e m a n d in s tru m e n ts m a y b e p re se n te d
fo r p a y m e n t before noon S a tu rd a y w hen t h a t en tire d a y is n o t a h o lid a v
•J,n a n y case n o t p ro v id ed fo r in th e a c t th e law m e rc h a n t governs
a n d all law s in conflict a re repealed.
8
’

before April11l9l3PPly t0 negotiable instruments made and delivered
Power of A t t o r n e y m u s t b e e x ec u te d a n d acknow ledged, a n d (if

fo r th e conveyance of real e sta te , o r to affect re a l e sta te ) recorded. In
th e sam e m a n n e r t h a t deeds a r e m ad e.
’m

Probate Law.

(See Administration of Estates.)
statutory damages on such protest are 5 per cent
of a blU of exchange, if drawn or negotiated within
SSI
any pJrr?9n’ a t any place out oi tbIs State, but within
wUhout the United Smtes. ^ C6nt “ Up°n aDy person’ a t any place
When any personal property is wrongfully taken or
fQM&N* ¡JS if taken on execution or attachment, is
claimed by a third party, the owner or claimant may bring an action
thereof. He may claim immediate delivery upon
a®daYjf tbere,f°r> whereupon the sheriff takes possession of the
property, and if a delivery bond is given on behalf of the defendant
^ S ty-f0UL b0Ui s’ tJie P r ° P e r t y is returned to him, otherwise
the plaintiff may give bond and take the property; failing to do so
in 1w h i n f i t 0 t^ e defendant. The plaintiff has twenty-four hours
in which to file bond. Justices of the peace have jurisdiction in
S- t 1 iayolvIng property worth $200 or less. Procedure Is
hn^<1
of HReplevin
i pneaSe’ may
except
that
must file
bond inelSfe«nnhtlce
in all such cases.
also
be the
had plaintiff
without bond,
by
allowing defendant to retain possession of property pending suit. *
S uits. (See Actions.)
o Hta t e > c o u n ty , to w n sh ip , m u n ic ip a l, school, a n d ro a d ta x e s
a i i a ®£ a s a i 1®? 92 real e s ta te on M arch 1 st of each y e ar, a n d p e n alties
M ay ,i n th e n e x t y e a r. O ne-half of a ll
MwP e n a lty , If p a id before first M onday of
if Pa id before first M onday of N ovem ber. S ales of
anali«n r i i 6™0 CwhtXvf t re b eld ° 9 ,t « e second M onday of F e b ru a ry , a n d
r!Lr,a ? i ? ° ? wk*ck ta x e s a re d e lin q u e n t fo r tw o y e a rs a re offered
£ w-v,elLh 1 v,
ln y h lcb t 0 redeem , b y p a y in g th e a m o u n t s e t
in th e certificate of pu rch ase, w ith a ll su b se q u e n t ta x e s p a id .
ISW i®. to 25 p e r c en t upo n th e w hole sum , w ith legal in te re s t fro m
d a te of pu rch ase o r p a y m e n t. L a n d s a re sold fo r one year™
1H * tb e foiiowfog y e a r’s ta x (n o t y e t d e lin q u e n t) Is
em b ra c ed In th e a m o u n t of th e sale. A n in h e rita n c e ta x , g ra d u a te d '
ro a m o u n t acco rd in g to th e a m o u n t inv o lv ed , a n d th e re la tio n o f theb ®p edeiaries to th e deced en t, is levied u p o n all intangible^ o r tangible5 ™p § L °f r o d e n t d e ce d e n t, a n d u p o n ta n g ib le p ro p e r o f n o n -re s id e n t
to ta k e eflecT aXt 1 h a t r i m l We1110 SiftS
a n tic ip a tio n o f d e a th ,
I i !nnSiV v .^ iiicliS a Sive wills> w h e r e p r o p e r t y o f m o r e t h a n t h e v a lu e -

w o i l P e<l u a ar3 ie d ’ a r e n o t v a lid , e x c e p t a s t o t h e p e r s o n a l p r o p e r t y
A n u n c u p a tiv e
^ i c e d t0 s i t i n g w ith in f if te e n d a y s a f t e r i t s h a ll h a v e i f en^id 9£la r *
P ro v e d b y tw o c o m p e te n t w itn e s s e s w h o s h a ll h a v e
ti1 ^ f+ « t l l e T\TeS^Sn0 i r ™
t s o m e o f th o s e p r e s e n t t o b e a r w itn e s s
th e r e t o . N o w ill in w r itin g is v a lid u n le s s s ig n e d in t h e p r e s e n c e o f
tw o o r m o r e w itn e s s e s b y t h e t e s t a t o r , o r b y s o m e o n e f o r h im in h is
p r e s e n c e , w ith h is c o n s e n t, a n d a t t e s t e d a n d s u b s c r ib e d b y tw o o r
w itn e s s e s a t h is r e q u e s t, a n d in h is p r e s e n c e a n d t h a t o f each o th e r . W ill m a d e b e fo re m a r r ia g e b e c o m e s v o id o n m a r r ia g e .

S S i l l i l § v. - S^ id le r s a n d s a i l o m i n a c t u a l s e rv ic e .

B A N K I N G A N D C O M M E R C IA L L A W S — I O W A

S Y N O P S IS OF

T H E L A W S O F IO W A
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
P re p a re d a n d R ev ised b y D a l e & H a b v is o n , A tto rn e y s a t L aw ,
Des M oines. (See C ard in A tto rn e y s ’ L ist.)
A c c o u n ts a n d C la im s o f. S ta te m e n ts of a c c o u n t, fo r u se in
c o u rt o r fo r p ro o f in th e s e ttle m e n t of e s ta te s of d eceased a n d in
g u a rd ia n sh ip m a tte rs , m u s t b e ite m iz e d a n d verified, a s ta te m e n t
of “ b a la n c e ,” o r “ g o o d s," o r “ m e rc h a n d ise ” is n o t sufficient.
A c k n o w l e d g m e n t s . A ll in s tru m e n ts affectin g re a l e sta te , in c lu d ­
ing m ortg ag es, deed s o f tr u s t, pow ers of a tto rn e y re la tin g th e re to ,
a n d leases fo r m o re th a n one y e a r, m u s t b e ack n o w led g ed o r th e
e x ec u tio n th e re o f p ro v ed , a n d th e in s tru m e n ts m u s t b e re c o rd e d in
th e p ro p e r office, so a s to affect th ir d p a rtie s . T h e sam e is also
tru e a s to bills of sale, a b so lu te o r co n d itio n a l, a n d c h a tte l m o rtg ag es
re la tin g to p e rso n al p ro p e rty . A rtic le s of in c o rp o ra tio n m u s t also be
acknow led g ed a n d reco rd ed . T h e fo rm s of ack n o w le d g m e n t a n d
th e officers, w ith in a n d w ith o u t th e S ta te , b efo re w hom su ch ack n o w l­
ed g m en ts m a y b e m a d e a re p re scrib ed b y s ta tu te .
A c tio n s . T h e co m m o n la w fo rm s o f p lead in g a re n o t used,
a lth o u g h th e com m on la w fo rm s th e b asis of p ro ced u re. P le a d in g ,
p ra c tic e, a n d p ro c e d u re a re s ta tu to ry , a n d a cc o rd , in th e m ain,
w ith w h a t is k n o w n a s th e refo rm ed , o r code p ro ced u re.
A d m i n i s t r a t i o n o f E s t a t e s . W h ere a n e x e c u to r is n o L a p p o in te d
b y w ill, a d m in s tra tio n sh all b e g ra n te d : 1. T o th e spouse of th e
deceased. 2. T o th e n e x t of k in . 3. T o c re d ito rs. 4. To a n y o th e r
p erson Whom th e c o u rt m a y select. C laim s a g a in s t th e e s ta te of a
deceased p e rso n a re p a y a b le in th e follow ing o rd e r: 1. D e b ts e n title d
to a preferen ce u n d e r th e law s of th e U n ite d S ta te s . 2. P u b lic
ra te s a n d ta x e s. 3. C laim s filed w ith in six m o n th s a f te r th e first
p u b lic a tio n of th e n o tic e g iv en b y th e e x ec u to rs o r a d m in is tra to rs
of th e ir a p p o in tm e n t. 4. A ll o th e r d e b ts. 5. Legacies a n d dis­
trib u tiv e sh ares. A ll claim s of th e fo u rth of th e a b o v e classes n o t
filed a n d .allow ed, o r if filed a n d n o tic e th e re o f n o t serv ed w ith in
tw elv e m o n th s fro m th e g iv in g of th e n o tic e of a p p o in tm e n t a re
b a rre d , e x c e p t a s to a ctio n s a g a in st d e c e d e n t p e n d in g in th e d is tric t
o r su p re m e c o u rt a t th e tim e o f his d e a th , o r u n less p e c u lia r circum ­
stan ces e n title th e c la im a n t to e q u ita b le relief.
A f f id a v its . A ffid av its m a y b e ta k e n befo re a n y p erso n a u th o riz e d
to a d m in is te r o a th s in th e s ta te w h ere ta k e n . I f ta k e n w ith o u t th e
S ta te of Io w a, th e official c h a ra c te r of th e officer a d m in iste rin g th e
o a th sh o u ld b e ev id en ced in th e sam e w ay as th e official c h a ra c te r of
a n officer ta k in g d ep o sitio n s. (See D epositions.) A ffidavits m a y be
ta k e n w ith in th e S ta te fo r a n y law fu l p u rp o se, of o n e u n w illin g to
v o lu n ta rily m a k e a n affid a v it,b y filing a p e titio n w ith a n officer a u th o r­
ized to a d m in is te r o a th s, w ho m a y cau se th e p e rso n to com e b efore
h im a n d m a k e a ffid a v it. T h is p ro ceed in g is s ta t u ta r y a n d m u s t con­
form s tric tly to th e s ta tu te s of Io w a.
A lle n s . N o n -re sid e n t a lie n s o r c o rp o ra tio n s in c o rp o ra te d u n d e r
th e law s of a n y fo reig n c o u n try o r c o rp o ra tio n s o rg an ized in th is
c o u n try , o n e-h alf of th e s to ck of w hich is ow ned o r co n tro lle d b y n o n ­
re sid en t alien s a re p ro h ib ite d fro m a c q u irin g title to o r h o ld in g a n y
re a l e s ta te in Io w a, b u t th e n o n -resid e n t alien w idow , h eirs, o r devisees
of a n a lie n o r n a tu ra liz e d c itiz en m a y h o ld th e sam e fo r tw e n ty y e ars,
a n d if n o t sold w ith in t h a t tim e , e sc h e ats to th e S ta te . A liens m a y
a cq u ire p ro p e rty of a n y k in d w ith in a c ity o r to w n o r la n d s n o t ex ceed­
in g 320 a cres o r sto c k in a n y c o rp o ra tio n fo r p e c u n ia ry p ro fit a n d m a y
a lie n a te o r dev ise th e sam e, b u t th is la w does n o t affect p erso nal
p ro p e rty . A lie n h o ld e r m a y a cq u ire title to th e p ro p e rty em b raced
in su ch lie n b u t re a l e s ta te so a cq u ire d m u s t b e sold w ith in te n y e ars
a f te r title is p e rfe c te d in a n alien , o th erw ise i t w ill e sc h e at to th e
S ta te .
A r r e s t . No p e rso n c an b e im p riso n ed fo r d e b t on e ith e r m esne
o r final process, u n less in case of fra u d . D eb to rs, h o w ever, m a y be
o rd e re d to a p p e a r b efo re a c o u rt o r re c o rd w h erein a ju d g m e n t h a s
been ren d ered , a n d if th e d e b to r is a b o u t to le a v e th e S ta te , o r conceal
him self, h e m a y b e a rre s te d a n d co m p elled to give b o n d to a p p e a r
before th e c o u rt fo r e x am in atio n , a n d in th e m e a n tim e , n o t dispose
of h is p ro p e rty .
A s s i g n m e n t s a n d I n s o lv e n c y .
G eneral assig n m e n ts n o t v a lid
unless fo r b en efit of a ll c re d ito rs, w hen a ss e n t of cre d ito rs is presu m ed.
T h e d e b to r m u s t a n n e x to th e in s tru m e n t of assig n m e n t a sw orn
in v e n to ry a n d lis t of c re d ito rs; a n d su ch in s tru m e n t m u s t b e ack n ow l­
edged a n d all of th e p a p e rs re c o rd e d lik e a d e ed o f real e sta te . T he
a ssig n m e n t v e sts in th e assignee title to all p ro p e rty o f th e d e b to r.
A ssignee m u s t give b o n d s, p re p a re a verified in v e n to ry a n d v a lu a tio n ,
a n d n o tify cre d ito rs b y m a il to file claim s w ith in th re e m o n th s.
A ll claim s n o t filed w ith in th re e m o n th s a fte r n o tic e p u b lish ed o r
w ith in su ch e x te n d e d tim e as th e c o u rt g ra n ts , n o t ex ceed in g n ine
m o n th s, in c lu d in g claim s n o t y e t d ue, c a n n o t b e p a id u n til ail claim s
filed w ith in said tim e a re p a id . A n a ssig n m e n t does n o t d isch arge
th e d e b to r fro m h is d e b ts a n d lia b ilities, b u t o n ly e n title s cre d ito rs
to sh are e q u ally in h is e s ta te . A ll claim s filed m u s t b e item ized
a n d sw o rn to .
A t t a c h m e n t s . A n a tta c h m e n t, a u x ilia ry to th e m a in case, m a y b e
su ed o u t u p o n a n y one of tw elv e ( 12 ) s ta tu to r y g ro u n d s fo r a d e b t,
w hich Is p a s t d u e ; o r u p o n a n y o n e of fo u r (4) s ta tu to r y g ro u n d s
fo r a d e b t o n c o n tra c t, n o t y e t d u e . A b o n d m u s t b e filed fo r th re e
tim es th e a m o u n t claim ed, if th e a c tio n is fo u n d e d u p o n c o n tra c t,
o therw ise, In a su m to b e fixed b y th e c o u rt, if th e a c tio n is n o t fo u n ded
u p o n c o n tra c t. G a rn ish m en ts m a y b e effected u n d e r th e w rit of
a tta c h m e n t. S pecial a tta c h m e n ts a re p e rm itte d , to a tta c h specific
perso n al p ro p e rty , in a few p re scrib ed cases.
B a n k s . T h e b a n k s organ ized u n d e r th e law s o f Io w a a r e re sp ec t­
iv e ly d e sig n a te d a s sav in g s b a n k s a n d s ta te b a n k s.
S a v in g s b a n k s m u s t h a v e a m in im u m c a p ita l of fro m $10,000 to
$50,000, a cco rd in g to th e p o p u la tio n o f th e c ity o r to w n in w hich
each is lo c a te d . B ach s h are m u s t be of th e p a r v a lu e o f $100. T h e
s ta tu to r y p ro v isio n s m u s t b e c o n su lted co n cern in g th e m a n n e r of
o rg a n iz a tio n , th e issu an ce of a n d p a y m e n t fo r c a p ita l sto ck , th e
b o a rd o f d ire c to rs, q u o ru m , v o tin g b y p ro x y , lim ita tio n o f d ep o sits,
a n d th e in v e stm e n t th e re o f, th e lo a n in g o f fu n d s, th e cash re serv e
re q u ire d , a n d th e d isso lu tio n of su ch b a n k s
S ta te b a n k s m u s t h a v e a m in im u m c a p ita l o f fro m $25,000 to
550,000, acco rd in g to th e p o p u la tio n of th e c ity o r to w n in w hich
each is lo c a te d . E a c h sh a re m u s t b e o f th e p a r v a lu e o f $100. T h e


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

1421

s ta tu to r y p rovisions m u s t be c o n su lted fo r th e p a rtic u la rs a b o v e
re fe rred to o n th e s u b je c t of savings b a n k s.
B a n k s a n d lo a n a n d t r u s t com panies m a y o b ta in pow er to a c t as
executor, a d m in is tra to r, g u a rd ia n , receiver, assignee, tru s te e , or in
o th e r fid u c ia ry c a p a c ity . N a tio n a l B an k s m a y exercise th e sam e
pow ers w h en a u th o riz e d b y A c t o f C ongress. A n y Io w a S ta te o r
Savings B a n k or T r u s t C o m p a n y m a y becom e a m e m b e r of th e
F e d e ra l R eserv e b a n k sy stem .
B ills o f E x c h a n g e . T h e n e g o tia b le in s tru m e n t la w recom m ended
b y th e in te rs ta te com m ission o n u n ifo rm ity of la w h a s b e en e n ac te d
a n d is now la w in Io w a . (F o r G race, See D ay s of G race.) A p rovision
fo r th e p a y m e n t of exchange, in a d d itio n to th e a m o u n t of p rin c ip a l
a n d in te re s t, does n o t re n d e r a b ill of exchange n o n -n eg o tiab le.
B ills o f L a d in g . T h e u n ifo rm B ill of L a d in g law h a s been a d o p te d
in Io w a .
C o l l a t e r a l S e c u r itie s . T h e re a re special s ta tu to r y provisions
concerning th e pledging of c o rp o ra te sto ck , a s se c u rity ; a n d also
u p o n th e s u b je c t of sales of c o lla terals b y a c tio n in c o u rt a n d ju d ic ia l
sale. O th erw ise th e s u b je c t is g o v ern ed b y th e com m on law .
C o n d i t i o n a l S a le s . N o sale, c o n tra c t, o r lease w h erein th e
tra n s fe r of title o r ow nership of p e rso n al p ro p e rty is m a d e to d e p en d
u p o n a n y c o n d itio n , sh all be v a lid a g a in s t a n y c re d ito r o r p u rc h a se r
of th e v en d ee o r lessee in a c tu a l possession, o b ta in e d in p u rsu a n ce
th e re o f, w ith o u t no tice, unless th e sam e be in w ritin g , e x ec u te d
b y th e v e n d o r o r lessor, acknow ledged a n d re c o rd e d th e sam e a s
c h a tte l m o rtg ag es.
C o n v e y a n c e s . N o p a rtic u la r fo rm is n ecessary fo r conveyances
o r m ortgages. T h e n a m e of th e p a rtie s, th e d e sc rip tio n of th e p ro p e rty ,
th e c o n sid e ra tio n , th e d a te , sig n atu re , a n d a ck n o w led g m en t, is all
t h a t is n e ce ssa ry ; a s b etw een th e p a rtie s th e y a re v a lid w ith o u t
being reco rd ed . T h e w ife m u s t jo in w ith h e r h u s b a n d in conveyances,
a n d a con v ey an ce of th e h o m e stea d is of n o v a lid ity unless h u s b a n d
a n d w ife co n cu r in a n d sign th e sam e jo in t In s tru m e n t. A c o rp o ra tio n
exeoutes conveyances u n d e r its c o rp o ra te seal, e x c e p t w here th e
c o rp o ra tio n h a s n o t a d o p te d a seal. Such conveyances m u s t b e signed
in th e n a m e of th e c o rp o ra tio n b y th e officers a u th o riz e d so to do,
b y th e A rticles o f In c o rp o ra tio n , or B y-L aw s, or b y re so lu tio n d u ly
e n te re d o f re c o rd in th e m in u te s of th e c o rp o ra tio n , a n d d u ly acknow l­
edged b y su ch officers, a s th e a c t o f th e c o rp o ra tio n .
C o r p o r a tio n s . P r iv a te c o rp o ra tio n s, sole o r a g g re g ate, m a y be
fo rm ed fo r a n y la w fu l p u rp o se . B u t th e re a re special s ta tu to r y
p rovisions w hich m u s t be com piled w ith fo r th e o rg a n iz a tio n a n d
g o v e rn m e n t of in su ra n ce , b a n k in g , lo a n a n d tr u s t, build in g a n d loan,
a n d ra ilw a y c o rp o ra tio n s. I n a ll cases, th e a rtic le s of in c o rp o ra tio n
m u s t b e acknow ledged a n d reco rd ed , in th e m a n n e r p ro v id e d b y
law , a n d a p p ro v e d b y th e s e c re ta ry of s ta te . W ith a few excep tio n s,
a n in c o rp o ra tio n fee of $25, plu s $10 fo r each th o u s a n d d o lla rs of
c a p ita l in excess of $ 1 0 ,0 0 0 m u s t be p a id , u p o n th e o rg a n iz a tio n
o r re n e w al of a p riv a te c o rp o ra tio n . T h e g eneral te rm of th e life
of a p riv a te c o rp o ra tio n is tw e n ty y e ars, ren ew ab le fo r a lik e te rm .
R ailro a d s, savings b a n k s, a n d a few o th e rs m a y la s t fifty y ears,
also renew able.
F o r e i g n C o r p o r a tio n s a re re q u ire d to p a y a sim ilar in c o rp o ra tio n
fee before d o in g b usiness in th e S ta te , based, how ever, u p o n th e
p ro p e rty o f th e C orporation, w ith in th e S ta te o f Iow a. F o reig n p u blic
service corp o ratio n s, o th e r th a n s te a m ra ilro ad s, doing business in
Iow a, a n d h o lding com panies con tro llin g th e s to ck o f su ch com panies,
a re m a d e su b je c t to m a n y o f th e law s o f Io w a affecting sim ilar dom estic
corp o ratio n s.
C o u r ts . T erm s a n d Ju ris d ic tio n . T h e d is tric t c o u rt h a s ju risd ic ­
tio n of all actions, civil a n d e q u ita b le , a n d h a s crim in al a n d p ro b a te
ju risd ic tio n . S u p e rio r c o u rts m a y be e sta b lish e d b y th e v o te of
th e people in a n y c ity of 5,000 in h a b ita n ts . I t h a s ju risd ic tio n to
t r y a ll v io la tio n s of c ity ord in an ces, a n d th e sam e c rim inal ju risd ic tio n
a s ju s tic e of th e peace c o u rts. I t h a s ju risd ic tio n to tr y a n d d e te rm in e
civil a n d crim in al a p p ea ls a n d civil w rits of e rro r fro m ju stic es of
th e p eace, s itu a te d in th e to w n sh ip w here th e c o u rt Is lo c a ted . H as
th e sam e ju risd ic tio n as th e d is tric t c o u rt to t r y a ll s u its in la w a n d
e q u ity , e x c e p t g ra n t divorces, a lim ony, a n d s e p a ra te m a in te n an c e ,
a n d i t h a s n o p ro b a te ju risd ic tio n . T ra n s c rip ts fro m s u p erio r a n d
ju s tic e ’s c o u rts m u s t be filed in d is tric t c o u rt to c re a te a lien on re a l
e sta te , a n d a re th e n enforced as ju d g m e n ts of th e d is tric t c o u rt;,
ju s tic e ’s Jurisdiction, $100, or, b y w ritte n c o n se n t of p a rtie s, $300.
T h e su p re m e c o u rt h a s only a p p e lla te ju risd ic tio n a n d ho ld s sessions
a t D es M oines, J a n u a ry to M ay, fro m M ay to S e p te m b e r (less v a ca ­
tio n ), a n d fro m S e p te m b e r to D ecem ber.
D a y s o f G ra c e . E v e ry neg o tia b le in s tru m e n t is p a y a b le a t th e
tim e fixed th e re in w ith o u t grace.
D e p o s iti o n s m a y b e ta k e n w ith in th e S ta te , on n o tice, a n d w ith in
o r w ith o u t th e S ta te , o n com m ission, issued a f te r n o tic e b y th e cle rk
of th e p ro p e r c o u rt. W h e n to be ta k e n o n com m ission, d e fe n d a n t
m a y ele ct, in w ritin g , d u ly served, to cross e x am in e o ra lly ; th e re u p o n
p la in tiff m a y also ele ct in w ritin g to ex am in e orally . E x c e p tio n s
m u s t be filed w ith in th re e (3j day s, a fte r th e filing of th e dep o sitio n ,
b u t objectio n s m a y neveriess be m a d e on th e tria l fo r com p eten cy ,
m a te ria lity , a n d re le v a n cy .
D e s c e n t a n d D i s t r i b u t i o n o f P r o p e r t y . S u b je c t to rig h ts of
dow er a n d o th e r charges th e re o n , a n d b u rd e n s im posed d u rin g th e
lifetim e of th e d eced en t, a n d in th e absence of a v a lid w ill, th e e s ta te
of o ne deceased sh all descend in e q u al sh ares to h is children; T h e
heirs of a n y deceased child sh all In h e rit in sam e m a n n e r a s th o u g h
su ch child h a d o u tliv e d his p a re n ts. I f th e in te s ta te le a v e no issue
o ne-half of h is e s ta te sh all go to th e p a re n ts, th e o th e r to th e spouse,
I f no su rv iv in g spouse, th e w hole th e re o f sh all go to h is p a re n ts
o r th e su rv iv o r of th e m ; a n d so o n th ro u g h ascen d in g a n ce sto rs
a n d th e ir issue, if b o th p a re n ts be d e ad . P e rso n a l p ro p e rty n o t
n ecessary to p a y d e b ts is d is trib u te d to th e sam e persons, a n d in
th e sam e p ro p o rtio n s a s th o u g h i t w ere re a l e sta te .
D o w e r . D ow er in Iow a is ab o lish ed , b u t th e s u rv iv in g spouse
is e n title d to o n e -th ird in .value of a ll th e legal a n d e q u ita b le e sta te s
in re a l p ro p e rty possessed b y th e deceased spouse a t a n y tim e d u rin g
th e m a rriag e , w hich h a v e n o t b e en sold o n e x ec u tio n o r a n y o th e r
ju d ic ia l sale, a n d to w hich su ch su rv iv o r h a s m a d e n o re lin q u ish m e n t
of rig h t. A spouse, h e ir o r devisee feloniously ta k in g o r p ro c u rin g th e
ta k in g of th e life of th e o th e r spouse, o r d eced en t, c a n n o t h a v e dow er
or in h e rit p ow er o r ta k e u n d e r th e w ill of th e d e ce d e n t. (See L im i­
ta tio n s .)
E x e c u t i o n s m a y be s ta y e d , a cc o rd in g to th e ir a m o u n t, fo r n in e ty
d a y s o r six m o n th s, w ith a few specified e xceptions, a n d th e issuance of
e x ec u tio n m a y b e p re v e n te d b y filing a n a p p e a l b ond. O therw ise
e x ec u tio n m a y issue im m e d ia te ly a f te r re n d itio n of ju d g m e n t. T h e
ju d g m e n t is a lie n o n re a lty w ith in th e c o u n ty w here re n d e re d , o r b y
tra n s c rip t, i t m a y b e m a d e a lie n in a n y o th e r co u n ty . E x e c u tio n s
becom e liens o n p e rso n al p ro p e rty on ly from th e tim e of th e le v y a n d
seizure. R e a l e s ta te is sold on ex ec u tio n s u b je c t to re d e m p tio n w ith in
one y e ar, e x o ep t in a p p ea le d cases, o r w here th e in te re s t is-a leasehold
of tw o y e ars o r less. C reditors m a y redeem fro m th e sale a f te r six
m o n th s a n d before n in e m o n th s from d a te of sale. P e rso n a l p ro p e rty
Is sold w ith o u t re d e m p tio n .
,

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B A N K I N G A N D C O M M E R C IA L L A W S — K A N S A S

E x e m p t i o n s . T h e h e a d of a fa m ily is e n title d to a h o m e ste a d of
fo r ty a cres o r less o f fa rm la n d , o r h a lf a n a c re o r less in c ity o r to w n .
P e n sio n m o n ey , its p ro ceed s, w ag es of a m a rrie d m a n , a n d n u m e ro u s
ite m s o f p e rso n al p ro p e rty a re e x e m p t b y s ta tu te . T h e re a re s ta tu to ry
p ro v isio n s c o n cern in g th e c re a tio n o f lien s o n e x e m p t re a l o r perso n al
p ro p e rty , a n d th e a ssig n m e n t of e x e m p t w ages.
F r a u d . I n a ctio n s fo r fra u d , h e re to fo re so lely cognizable In a c o u rt
of ch an c e ry , th e cau se of a c tio n sh all n o t b e d eem ed to h a v e a cc ru e d
u n til th e fra u d c o m p la in ed of sh all h a v e b e en d isco v ered b y th e p a r ty
a g g rie v e d b y th e ex ercise o f d u e diligence. I n a c tio n s b ro u g h t b y a
Ju d g m e n t c re d ito r to s e t a sid e a fra u d u le n t c o n v ey an ce of p ro p e rty
fro m o n e sp o u se to th e o th e r a n d to s u b je c t said p ro p e rty to e xecution,
e ith e r h u s b a n d o r w ife m a y b e co m pelled to te s tify a g a in st th e o th e r.
G ross fra u d is p u n ish a b le b y fine o r im p riso n m e n t.
G a r n i s h m e n t s . (See A tta c h m e n ts .)
H u s b a n d a n d W ife . (See M arried W om en.)
I n t e r e s t . B y w ritte n c o n tra c t, m a x im u m leg al ra te , 8 p e r c e n t.
J u d g m e n ts d ra w 6 p e r c en t, o r su ch r a te a s is fixed b y th e c o n tra c t
o n w hich th e ju d g m e n t o r d ecree is re n d e re d , n o t exceeding 8 p e r
cent per annum .
O p en a c c o u n ts d ra w 6 p e r c e n t a f te r six
m o n th s fro m d a te of la s t ite m ; m o n ey lo a n e d , m o n e y du e, m o n ey
d u e o n s e ttle m e n t o f a cc o u n ts, b e a r in te re s t a t 6 p e r c e n t p e r a n n u m .
C o n tra c t fo r m o re th a n 8 p e r c e n t fo rfeits all in te re s t a n d costs.
J u d g m e n t s in th e d is tric t a n d s u p erio r c o u rts m a y be o b ta in e d
a t first te rm a f te r s u it co m m en ced , if u n d e fe n d ed ; a n e q u ita b le
a ctio n , e x c e p t o ne fo r fo reclo su re of m o rtg ag e , o r m e c h an ic ’s lie n
o r fo r d ivorce, is tria b le a t th e seco n d te rm a f te r th e case is a t issue.
J u d g m e n ts of th e d is tric t c o u rt a re liens o n re a l e s ta te ow ned b y
th e d e b to r a t th e tim e o f re n d itio n . I f th e la n d s lie in a n y o th e r
c o u n ty , fro m th e tim e of filing th e re in a n a tte s te d co p y of th e ju d g ­
m e n t. L ien also covers a ll la n d s w hich d e fe n d a n t m a y a cq u ire
w ith in te n y e a rs fro m d a te of ju d g m e n t, o r u p o n w hich a le v y is
m a d e a f te r te n o r b efo re tw e n ty y e a rs fro m th e d a te of th e ju d g m e n t,
b u t th is lie n d a te s o n ly fro m th e tim e of th e le v y . J u d g m e n ts of
s u p e rio r c o u rts a n d ju s tic e of p e ac e c o u rts beco m e liens o n re a l e s ta te
b y filing tra n s c r ip t in d is tric t c o u rt w ith in c o u n ty w h ere o b ta in e d ,
a n d beco m e lien s in o th e r c o u n tie s in th e sam e m a n n e r a s if re n d e re d
In th e d is tric t c o u rt.
L i e n s . T h ese a re m a in ly c re a te d b y s ta t u te a n d a re enforceable
in e q u ity . I n a few cases, a n d u n d e r p e c u lia r c irc u m stan c e s, e q u ita b le
lien s o n re a l e s ta te a re e sta b lish e d a n d e n fo rc e d In e q u ity .
L i m i t a t i o n s . A ctio n s, a cc o rd in g to th e ir s u b je c t m a tte r, h a v e
v a rio u s p erio d s of lim ita tio n , fixed b y s ta tu te , e x te n d in g from th re e
m o n th s to te n y e a rs a f te r th e cau se o f a c tio n a cc ru e d . A c tio n s u p o n
ju d g m e n ts re n d e re d in c o u rts of re c o rd h a v e a lim ita tio n of tw e n ty
y e a rs. D o w er rig h ts a n d m o rtg ag e s e x istin g o r c re a te d p rio r to
J a n u a r y 1, 1885, a re b a rre d , u n less n o w p ro p e rly p re serv ed In th e
re c o rd e r's office. Im p e rfe c t d eed s b y e x ec u to rs, a d m in is tra to rs ,
tru s te e s , o r g u a rd ia n s m a d e p r io r to J a n u a r y 1, 1885, a re confirm ed
in fa v o r of g ra n te e s in possession.
M a r r i e d W o m e n m a y o w n In th e ir ow n rig h t, re a l a n d p e rso n al
p ro p e rty , a n d m a y m a n a g e, sell, co n v ey , a n d d evise th e sam e b y
w ill. N e ith e r h u s b a n d n o r w ife is lia b le fo r th e d e b ts o r lia b ilities
of th e o th e r in c u rre d befo re o r a f te r m a rriag e , n o r a re th e w ages,
e arn in g s, o r p ro p e rty of e ith e r, lia b le fo r th e s e p a ra te d e b ts of th e
o th e r. C o n tra c ts m a y b e m a d e b y a wife, lia b ilities in c u rre d , a n d
en fo rced b y o r a g a in s t h e r, a s if u n m a rrie d . B o th h u s b a n d a n d
w ife a re lia b le fo r th e ex p en ses of th e fa m ily , a n d th e e d u ca tio n
o f th e ch ild ren .
M o r t g a g e s m u s t b e su b sc rib e d a n d ack n o w ledged b y th e p a rtie s
c re a tin g th e lie n a n d reco rd ed sam e as d eed s a re fo reclosed b y e q u ita b le
a ctio n . T h e w ife sh o u ld jo in In th e in s tru m e n t, e x c e p t m o rtg ag e s
fo r p u rc h a se m o n ey , a n d m o rtg ag e s u p o n n o n -e x e m p t p e rso n al
p ro p e rty . T h e m o rtg a g o r h a s o n e y e a r in w h ich to red eem re a l
e s ta te a f te r e x ec u tio n sale, e x c e p t a s s ta te d u n d e r th e s u b -title “ E x e c u ­
tio n s .” W h e n a m o rtg ag e is p a id off, s a tisfa c tio n th e re o f m u s t be
m a d e o n m a rg in of th e reco rd , o r b y s a tisfa c tio n piece, a cknow ledged
a n d reco rd ed . I f n o s a tisfa c tio n is e n te re d w ith in th ir ty d a y s a fte r
re q u e st in w ritin g , th e m o rtg ag e e fo rfe its $25. (See C h a tte l M ortgages.)
(See L im ita tio n s.)
N o ta r ie s . T h ese officers a re a p p o in te d a n d com m issioned b y th e
g o v e rn o r, u p o n filing a b o n d a n d p a y in g th e fee re q u ire d b y law .
■They h a v e p o w er to a d m in is te r o a th s, ta k e d ep o sitio n s, a n d th e
u s u a l p o w e r of su ch officers c o n cern in g p re s e n ta tio n , d e m a n d , p ro te s t,
a n d n o tic e of p ro te s t of n e g o tia b le co m m ercial p a p e r.
P a r t n e r s h i p s , L i m i t e d a n d S p e c ia l. L im ite d a n d sp ecial p a r t­
n e rsh ip s a re p e rm itte d , b u t n o t fa v o re d . T h e s ta tu te s on th is s u b je c t
m u s t b e s tric tly co m p lied w ith . A c e rtific a te show ing p re scrib ed
-details a n d p a rtic u la rs of th e p a rtn e rs h ip m u s t b e signed, a cknow l­
ed g ed , a n d filed in th e office of th e c le rk o f th e d is tric t c o u rt of th e
c o u n ty in w hich th e p rin c ip a l p la c e of b u sin ess is s itu a te d , to be
th e r e re c o rd e d a n d sim ila rly re c o rd e d In each c o u n ty w h ere such
p a rtn e rs h ip h a s a p lace o f b u sin ess. T h e re m u s t be a n a ffid a v it
t h a t th e a m o u n t s ta te d in th e c ertific a te h a s b e en a c tu a lly c o n trib u te d
b y each s e p a ra te p a rtn e r. P u b lic a tio n m u s t b e m a d e of th e c ertific a te
a n d a ffid a v it fo r six w eeks in tw o n e w sp a p e rs in e a c h !s e n a to ria l
d is tric t in w h ich th e p a rtn e rs h ip is to tr a n s a c t business.
P o w e r s o f A t t o r n e y . A p o w e r of a tto r n e y to convey, o r in a n y
m a n n e r affect re a l e sta te , m u s t b e ack n o w led g ed a n d re c o rd e d . A
re v o c a tio n of su ch p o w e r m u s t b e ack n o w led g ed a n d re c o rd e d in th e
sam e office w h erein th e o rig in al p o w e r of a tto rn e y is reco rd ed .
R e c e iv e r s . I n d is trib u tin g p ro p e rty in th e h a n d s of a receiver
th e re s h all b e p a id in th e follow ing o rd e r: 1. T a x e s o r d e b ts d ue
th e U n ite d S ta te s ; 2. T a x e s o r d e b ts d u e th e S ta te . 3. D e b tso w in g
to em p lo y es fo r la b o r, n o t ex ceed in g $ 1 0 0 .
R e c o r d s . A ll In s tru m e n ts co n v ey in g o r c re a tin g lien s u p o n th e
re a l o r p e rso n al p ro p e rty , all c o n d itio n a l sales a n d a rtic le s of a d o p tio n
of a m in o r ch ild , m u s t, a fte r h a v in g b e en sig n ed a n d acknow ledged,
b e re c o rd e d in th e office of th e re c o rd e r of deed s in th e p ro p e r c o u n ty
o r c o u n tie s w h ere th e p ro p e rty c o n v ey ed is s itu a te d , o r th e m in o r
c h ild is. U nless so reco rd ed , su ch in s tru m e n ts a re in v a lid as to a
b o n a fide p u rc h a se r o r e n c u m b ra n c e r o r as a rtic le s of a d o p tio n .
R e d e m p t i o n . R ed e m p tio n fro m a sheriff’s sale of real e sta te ,
w h e th e r sold u n d e r a g en eral o r sp ecial ex ecu tio n , m a y be m a d e
b y a c re d ito r w ho h a s a lie n o n th e p ro p e rty sold, a t tim e a fte r six
m o n th s fro m d a te of sale b y p a y in g to th e c lerk of th e c o u rt th e
a m o u n t p ro v id e d b y s ta tu te , bein g , gen erally , th e a m o u n t of th e
p u rc h a se r’s b id , w ith in te re s t a t th e sam e r a te t h a t th e ju d g m e n t
b e a rs. W ith in th e tim e n a m e d c re d ito rs m a y re d e em fro m each
o th e r. A fte r n in e m o n th s, a n d w ith in o ne y e a r fro m th e d a te of sale
th e o w n er of th e re a l e s ta te so ld h a s th e e x clu siv e rig h t to redeem fro m
su ch sale, a n d , in so doing, th e d e b to r m u s t p a y off th e claim s of
ju d g m e n t cre d ito rs, w ho h a v e m a d e red e m p tio n s a s h e re in a b o v e
s ta te d , in a d d itio n to th e a m o u n t o rig in ally b id .
R e p l e v in .
I n a ctio n s fo r th e re c o v ery of p e rso n al p ro p e rty , th e
p e titio n m u s t b e v erified ; a n d if p la in tiff desires Im m ed ia te d e liv e ry
of th e p ro p e rty , h e s h a ll ex ec u te a b o n d fo r d o u b le th e v a lu e of th e
p ro p e rty so u g h t to b e re c o v ered . T h e d e fe n d a n t m a y s ta y all p ro ­
ceedings a n d re ta in th e p ro p e rty b y e x ec u tin g a b o n d to th e p la in tiff
w ith su re tie s to b e a p p ro v e d b y th e clerk .


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

S a le s o f G o o d s i n B u l k . Sales, in c lu d in g ex ch an g e a n d assign­
m e n ts, o f th e w hole o r m a jo r p a r t o f a sto c k o f goods, or fixtures, or
sto ck o f goods a n d fixtures, in bu lk , is p re su m p tiv e ly frau d u le n t^
unless th re e (3 ) d a y s ’ no tice in w ritin g is prev io u sly m ailed to each
c re d ito r o f th e seller.
S to c k s a n d B o n d s . T h e sale of stocks a n d b o n d s is governed b y 1
w h a t is te rm e d a “ B lue Sky L aw .”
T a x e s . R e a l e s ta te is assessed e v ery o d d y e a r; p e rso n al p ro p e rty
is assessed e v ery y e a r. A ll p ro p e rty is assessed a t its a c tu a l value,,
a n d ta x e d a t tw e n ty -fiv e (25) p e r c e n t of th e assessed v a lu e . A ll
ro a d ta x e s a n d o ne-half of th e o th e r ta x e s levied a re p a y a b le w ith o u t
in te re s t o r p e n a lty before A p ril 1 st; th e b a la n ce is p a y ab le
before O c to b er 1st. D e lin q u e n t ta x e s b e a r in te re s t a t th e r a te o f
1 p e r c e n t p e r m o n th . T axes u p o n re a lty a re liens th e re o n ; ta x e s
u p o n p e rs o n a lty a re liens u p o n tn e ow n er’s re a lty , e x c e p t th e hom e­
s te a d , a n d m a y b e c o n tin u e d a s su ch liens, if th e s ta t u te Is com plied
w ith , fro m y e a r to y e a r. T axes on p e rs o n a lty a re liens o n th e p e rso n al
p ro p e rty of n o n -resid e n ts, sto ck s of goods sold in b u lk , a n d build in g s
o r a d d itio n s m a d e a f te r th e assessm en t fo r ta x a tio n in th e o d d y ears.
P e rs o n a l p ro p e rty m a y be levied on a n d sold fo r ta x e s b y d is tre ss
a n d sale. R e a l e s ta te is sold fo r u n p a id ta x e s, a f te r n o tic e b y p u b lic a ­
tio n , o n th e first M onday in D ecem ber of e ac h y e ar, s u b je c t to re d e m p ­
tio n in th re e y e a rs fro m th e d a te of sale.
T r u s t C o m p a n ie s . D om estic t r u s t com panies a re o rg an ized u n d e r
a n d g o v ern ed b y th e g e n eral c o rp o ra tio n law s of th e S ta te . F oreign
t r u s t com panies doing business In th is S ta te a re g o v ern ed a n d con­
tro lle d b y th e g eneral s ta tu te s concerning a n d re la tin g to foreign,
c o rp o ra tio n s d oing business in Io w a. (See C orporations.)
T r u s t D e e d s . T h e y m u s t b e e x ec u te d a n d foreclosed, a n d consid­
ere d a s m o rtg ag es. T h a t is, th e p ow er of sale o n n o tic e is abolished,
a n d th e y m u s t b e foreclosed b y e q u ita b le a ctio n .
W a r e h o u s e R e c e ip ts . A n y person, firm , o r c o rp o ra tio n desirin g
to issue e le v a to r o r w arehouse certificates (o r receipts) m u s t file a
w ritte n d e c la ra tio n w ith th e re c o rd e r of deeds in th e c o u n ty w here
h is o r its e le v a to r o r w arehouse is s itu a te d , s e ttin g fo rth th e p a rtic u ­
la rs re q u ire d b y s ta tu te , w hich d e c la ra tio n m u s t be re c o rd e d b y th e
re c o rd e r of deeds.
T h e re a fte r h e o r i t m a y issue certificates f o r
com m odities a c tu a lly in su ch e le v a to r o r w arehouse, b u t th e certifi­
c ates m u s t conform to th e s ta tu to r y provisions.
A re g iste r of
certific a te s issued m u s t b e k e p t b y th e p a rtie s lsu in g th e m . A
v io la tio n of th e se provisions, issuing dou b le certificates fo r th e sam e
p ro p e rty , o r selling o r encu m b erin g p ro p e rty in c lu d e d In a n y w a re ­
house re c eip t. Is m a d e a crim in al offense. T h e re is also a c rim in a l
s ta t u te a g a in s t issuing false w arehouse re c eip ts o r c ertificates.
W ills . A n y person of full a g e a n d so u n d m in d m a y dispose o f
h is p ro p e rty b y will, s u b je c t to th e rig h ts of h o m e stea d a n d exem p­
tio n c re a te d b y law a n d th e d is trib u tiv e s h a re in h is e s ta te g iv e n
b y la w to th e su rv iv in g spouse, e x c e p t sufficient to p a y h is debtsa n d expenses of a d m in istra tio n . W ills, to be v a lid , m u s t be w ritte n ,
w itnessed b y tw o c o m p e ten t w itnesses, signed b y th e te s ta to r , o r
b y som e p e rso n in h is p resence a n d b y h is ex p ress d ire c tio n . S u b ­
scrib in g w itnesses c a n deriv e n o b en efit fro m a will, unless th e re b n
tw o c o m p e te n t w itnesses besides th e m . W ills e x e c u te d o u tsid e o f
Io w a , in a ccordance w ith th e law s of th e S ta te w here e x e c u te d o r
of th e te s ta to r ’s dom icile, if in w ritin g a n d su b sc rib e d b y th e te s t a to r
a re v a lid in Io w a . I f p ro b a te d In a n y o th e r s ta t e o r c o u n try t h e y
sh all b e a d m itte d to p ro b a te in th is S ta te o n th e p ro d u c tio n of a co p y
of such will, a n d of th e original reco rd o f p ro b a te th e re o f, a u th e n tic a te d
b y th e a tte s ta tio n of th e clerk of th e c o u rt In w hich su ch p ro b a ­
tio n w as m a d e o r of th e p ro b a te ju d g e , u n d e r seal, if th e y h a v e
one. A ll w ills m u s t be p ro b a te d before th e y c a n he effectual.
*>

S Y N O P S IS OF

.

TH E LA W S OF K A N SA S
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
R ev ise d b y M c C l in t o c k , Q u a n t a n d K b a u t h o f f ,
A tto rn e y s a t L aw , T o p ek a.
(See C ard in A tto rn e y s ’ L ist.)
A c k n o w l e d g m e n t s . (See D eeds.)
A c tio n s . C ivil actio n s a re c o n d u cted as required^ b y a code o f
p rocedure. S ecurity fo r c osts m u s t b e given o r re s id e n t pla in tiffs
m a y d e p o sit $15 in litju o f b o n d fo r costs. N o n -re sid e n t p laintiffs
m a y b e re q u ire d to give b o n d fo r costs.
A d m i n i s t r a t i o n o f E s t a t e s . P r o b a te c o u rts in each c o u n ty h a v e
Ju risd ictio n of e sta te s. D em an d s a g a in st th e e s ta te a re d iv id e d in to
th e follow ing classes; 1. F u n e ra l expenses. 2. E x p e n ses of th e
la s t sickness; w ages of s e rv a n ts ; d e m a n d s fo r m edicines a n d m edical
a tte n d a n c e d u rin g th e la s t sickness a n d expense of a d m in is tra tio n .
3 . D e b ts d u e th e S ta te . 4. J u d g m e n ts re n d e re d a g a in s t th e
deceased in h is lifetim e; b u t if su ch ju d g m e n ts a re lien s u p o n re a l
e s ta te a n d th e e s ta te b e In solvent, such ju d g m e n ts shall b e p a id
w ith o u t reference to classification, e x c e p t th e first tw o w hich h a v e
precedence. 5. A ll d e m a n d s w ith o u t re g a rd to q u a lity w hich shall
b e le g a lly e x h ib ite d a g a in st th e e s ta te in o ne y e a r a f te r g ra n tin g
le tte r s of a d m in is tra tio n . 6 . A ll d e m a n d s th u s e x h ib ite d a f te r t h e
e n d of o ne y e a r a n d w ith in tw o y e ars. D e m an d s n o t e x h ib ite d w ith in
tw o y e a rs a re b a rre d , e x c e p t a s to In fan ts, p erso n s of u n so u n d m in d
o r p e rso n s im p riso n ed o r a b s e n t fro m th e U nited S ta te s , w ho shall
h a v e one y e a rs a f te r th e re m o v a l of th e ir d isab ilitie s. F o reig n ex­
e cu to rs, a n d a d m in is tra to rs w ith th e w ill a n n ex e d , m a y sell real'
e s ta te in th is S ta te in acc o rd a n c e w ith th e po w er c o n ta in ed in th e
w ill, u nless a d m in is tra tio n u p o n th e e s ta te h a s b e e n g ra n te d in th is '
S ta te ; p ro v id e d t h a t a t th e tim e of su ch c o n v ey an ce a co p y of such»
w ill h a s b e en reco rd ed in th e office of th e p ro b a te c o u rt in th e c o u n ty
in w hich th e la n d is s itu a te d .

B A N K I N G A N D C O M M E R C IA L L A W S — K A N S A S
A f f i d a v it s . A ffid av its m a y b e m a d e in o r o u t o f th e S ta te b y th e
sam e a u th o rity a n d w ith lik e a u th e n tic a tio n , as d ep o sitio n s.
A lie n s . L aw p ro h ib itin g a lien s fro m in h e ritin g o r h o ld in g re a l
e sta te , re p e aled 1901. (See F o reig n C o rp o ratio n s.)
A r b i t r a t i o n s . P e rso n s h a v in g co n tro v e rsie s m a y s u b m it th e m to
th e a r b itr a tio n of a n y p e rso n o r p erso n s m u tu a lly a g re ed u p o n a n d
m ay m a k e su ch su b m issio n a ru le of a n y c o u rt of re c o rd in th e S ta te .
T h e p a rtie s m a y e n te r in to a rb itr a tio n b o n d s co n d itio n e d fo r th e
fa ith fu l p e rfo rm an c e of th e a w ard .
A r r e s t. A d e fe n d a n t m a y b e a rre s te d in a civil a c tio n u p o n filing
a n a ffid a v it w ith th e c le rk of th e c o u rt t h a t h e h a s rem o v ed o r b eg u n
to rem o v e h is p ro p e rty o u t o f th e ju risd ic tio n of th e c o u rt w ith
In te n t to d e fra u d h is c re d ito rs; o r h a s b eg u n to c o n v e rt h is p ro p e rty
in to cash, fo r th e p u rp o se of p la c in g i t b e y o n d th e re a c h of h is cre d ito rs;
or h a s p ro p e rty w hich h e fra u d u le n tly conceals; o r fra u d u le n tly con­
tra c te d th e d e b t.
A s s i g n m e n t s a n d I n s o l v e n c y . A ssig n m e n ts m u s t b e fo r th e
benefit of a ll c re d ito rs a n d o n ly d isch a rg e th e d e b to r to th e a m o u n t
of p a y m e n ts m ad e.
A t t a c h m e n t . A t o r a f te r th e c o m m en cem en t of a n a c tio n a n
a tta c h m e n t m a y b e h a d b y p lain tiff. T h e a ffid a v it of th e p la in tiff,
his a g e n t, o r a tto rn e y m u s t b e filed, s ta tin g th e n a tu r e of th e claim ,
th a t i t is ju s t, th e a m o u n t affian t b eliev es o u g h t to b e reco v ered,
a n d th e e x isten c e of som e o n e o r m o re of th e follow ing g ro u n d s: 1 .
T h a t d e fe n d a n t is a fo reig n c o rp o ra tio n o r a n o n -re sid e n t of th e S ta te
(b u t in th is case fo r n o o th e r claim th a n a d e m a n d a risin g u p o n con­
tra c t, ju d g m e n t, o r d ecree, u n less th e cau se of a c tio n a ro se w holly
w ith in th e lim its of th e S ta te ). 2. T h a t th e d e fe n d a n t ab sco n d ed
w ith th e in te n tio n to d e fra u d h is c re d ito rs. 3. T h a t th e d e fe n d a n t
has le ft th e c o u n ty of h is resid en ce to a v o id a serv ice of su m m ons.
4
T h a t h e so concealed h im self t h a t su m m o n s c a n n o t b e serv ed
u p o n h im . 5. T h a t h e is a b o u t to re m o v e h is p ro p e rty o r a p a r t
th e re o f o u t of th e ju risd ic tio n of th e c o u rt w ith th e in te n t to d e fra u d
his c re d ito rs. 6 . T h a t h e is a b o u t to c o n v e rt h is p ro p e rty o r a
p a r t th e re o f in to m o n e y fo r th e p u rp o se of p la c in g i t b e y o n d th e
reach of h is c re d ito rs. 7. H e h a s p ro p e rty o r rig h ts in a c tio n w hich
he conceals. 8 . H a s assig n ed , rem o v ed , o r disp o sed of, o r is a b o u t
to dispose o f h is p ro p e rty , o r a p a r t th e re o f, w ith th e in te n t to d e fra u d ,
h in d er, o r d e la y h is c re d ito rs. 9. O r fra u d u le n tly c o n tra c te d o r
in c u rre d th e d e b t o n w h ich th e s u it is b ro u g h t. 10. O r t h a t th e
su it is b ro u g h t fo r d a m a g es fro m th e com m ission o f som e felo n y o r
m isdem ean o r. 11. O r t h a t th e d e b to r h a s fa ile d to p a y fo r a n y
a rtic le o r th in g d eliv ered fo r w hich b y c o n tra c t h e w as b o u n d to p a y
u pon d e liv ery .
B a n k s a n d B a n k i n g . T h e re Is n o c o n stitu tio n a l p ro v isio n re la t­
ing to b a n k s, e x c e p t b a n k s of issue. O th e r b a n k s a re org an ized
u n d e r a g en eral a c t. T h e c h a rte r, in a d d itio n to th e re q u ire m e n ts
of th e la w re la tin g to co rp o ra tio n s, s h all c o n ta in th e n a m e s a n d
places of resid en ce o f th e sto ck h o ld ers a n d th e a m o u n t of s to c k su b ­
scrib ed b y each , a n d m a y c o n ta in su ch o th e r p ro v isio n s, n o t in con­
s iste n t w ith law , a s th e sto ck h o ld ers m a y d e em p ro p e r, a n d sh all
be su b sc rib e d b y a t le a s t five of th e sto ck h o ld ers of th e pro p o sed
b a n k w ho a re re sid e n ts of th e S ta te of K a n sa s. B o ard of d ire c to rs
sh all b e n o t less th a n five, n o r m o re th a n th irte e n , a m a jo rity of w hom
sh all be re sid en ts o f th e c o u n ty o r a d jo in in g c o u n tie s to t h a t in
w hich th e b a n k is lo c a te d . T h e w o rd “ S ta te ” sh all b e in c lu d e d in th e
title . T h e fu ll a m o u n t o f th e c a p ita l s to ck m u s t b e su b sc rib e d b efore
th e c h a r te r is filed. T h e b a n k sh all tr a n s a c t no b u sin ess, e x c e p t th e
electio n o f officers, th e ta k in g a n d a p p ro v in g o f th e ir official Donas,
a n d th e re c eip ts of p a y m e n ts o n a c c o u n t o f su b sc rip tio n s to its c a p ita l
sto ck , u n til i t h a s b e en a u th o riz e d b y th e b a n k co m m issio n er to
com m ence b u sin ess. T h e c a p ita l s to c k m u s t b e p a id , in fu ll, in cash
a n d s h a ll n o t be less th a n $10,000. N o b a n k s h all e m p lo y its m o ney
d ire c tly o r in d ire c tly in tr a d e o r com m erce b y b u y in g a n d selling
goods, c h a tte ls , w ares, a n d m erc h a n d ise , a n d sh all n o t in v e st in th e
sto ck of a n y b a n k o r c o rp o ra tio n , n o r m a k e a n y lo a n s o n th e s e c u rity
of th e sh ares of Its o w n c a p ita l, n o r b e th e p u rc h a se r o r h o ld e r of
a n y su ch sh ares, e x c e p t to p re v e n t lo ss u p o n a d e b t p re v io u sly con­
tra c te d in good fa ith . A ll su ch p ro p e rty co m in g In to th e possession
of th e b a n k in th e co llectio n o f d e b ts s h a ll n o t b e co n sid ered a sse ts
a fte r th e e x p ira tio n of six m o n th s. B an k s m u s t h a v e o n h a n d in
a v ailab le fu n d s th e follow ing su m s: I n c ities h a v in g less th a n 6,000
p o p u la tio n , 20 p e r c e n t of th e ir d e p o sits; In c ities h a v in g o v e r 5,000
p o p u la tio n , 25 p e r c en t, o n e-h alf of w hich m a y c o n sist of b alan ces
d ue fro m good so lv e n t b a n k s lo c a te d a t co m m ercial c en ters a n d a t
such o th e r p o in ts a s th e b a n k com m issioner m a y a p p ro v e . T h e
o th e r h a lf sh all c o n sist of a c tu a l cash . Officers a re p erso n ally liable
for p a y in g o v e rd ra fts . N o t m o re th a n 15 p e r c e n t of th e c a p ita l
sto ck a n d s u rp lu s c an b e lo a n e d to a n y o n e p erso n , co m p a n y o r cor­
p o ra tio n . No b a n k s h all a c c e p t d ep o sits co n tin u o u sly fo r six m o n th s
In excess of te n tim e s its p a id -u p c a p ita l a n d su rp lu s. P e n a ltie s a re
p ro v id e d fo r false s ta te m e n ts a n d fo r receiv in g d e p o sits w h en th e
b a n k is in a fa ilin g co n d itio n . P r iv a te b a n k s a re s u b je c t to th e p ro ­
visions of th e law . T h e b a n k com m issioner, o r d e p u ty , m u s t m a k e
e x a m in a tio n of e ac h b a n k a t le a s t once a y e a r. F o u r re p o rts p e r
a n n u m a re re q u ire d , a n d th e co m m issio n er m a y call fo r o th e rs.
B an k s m a y p u rc h a se , ho ld , a n d co n v ey re a l e s ta te u n d e r c e rta in con­
d itio n s to th e e x te n t of 50 p e r c e n t of th e ir p a id -u p c a p ita l. S h a re ­
h olders a re a d d itio n a lly lia b le fo r a su m e q u al to th e p a r v a lu e of
sto ck ow ned a n d n o m ore.
D e p o sit G u a ra n ty F u n d . A n y b a n k h a v in g a n u n im p a ire d su r­
plus e q u a l to 10 p e r c e n t of its c a p ita l, m a y p a rtic ip a te in th e g u a r­
a n ty fu n d a c t. S u ch b a n k m u s t d e p o sit w ith th e s ta te tre a s u re r
m oney o r b o n d s of th e U n ite d S ta te s , S ta te of K a n sa s, o r o f a n y
to w n sh ip , school d is tric t, b o a rd of e d u c a tio n o r c ity w ith in th e
S ta te , to th e a m o u n t of $500 fo r each $ 1 0 0 ,0 0 0 o f its a v e ra g e d e p o sits
eligible to g u a ra n ty (less its c a p ita l a n d s u rp lu s ). I t sh all also p a y
in cash a n a m o u n t e q u a l to o n e -tw e n tie th of o ne p e r c e n t of Its a v e r­
age d e p o sits elig ib le to g u a ra n ty (less its c a p ita l a n d s u rp lu s ).
I n J a n u a r y of each y e a r th e com m issioner sh all m a k e assessm en ts
of o n e -tw e n tie th of one p e r c e n t of th e a v e ra g e g u a ra n te e d d ep o sits
of each b a n k u n til th e cash fu n d a c c u m u la te d a m o u n ts to $500,000.
T h e com m issioner m a y m a k e a d d itio n a l assessm en ts of th e sam e size
n o t m o re th a n five In a n y one y e a r. I f a b a n k fails, th e b a n k com m is­
sioner ta k e s ch arg e a n d w inds u p Its affairs. H e issues to each
d e p o sito r a c ertific a te b e arin g 6 p e r c en t in te re s t. A n y b a la n ce d ue
a fte r a sse ts a re e x h a u s te d Is p a y a b le o u t of th e g u a ra n ty fu n d .
D eposits o th erw ise secu red do n o t p a rtic ip a te , n o r a .b a n k ’s o b lig a tio n
a s In d o rser u p o n b ills re -d isc o u n te d , n o r b ills p a y a b le , n o r m o ney
b o rrow ed fro m its c o rre s p o n d e n ts o r o th e rs.
B a n k s a re p ro h ib ite d fro m a d v e rtis in g t h a t d e p o sits a re g u a ra n ­
teed b y th e S ta te b u t a re p e rm itte d to a d v e rtis e t h a t d e p o sits a re
g u a ra n te e d b y th e B a n k D ep o sito rs’ G u a ra n ty F u n d .
B ills o f E x c h a n g e . (See N o tes a n d B ills of E xch an g e.)
B ills o f L a d i n g . T h ese a re g o v ern ed b y th e com m on law .
C h a t t e l M o r tg a g e s . A m o rtg ag e o f p e rso n al p ro p e rty , w here th e
p ro p e rty is n o t im m e d ia te ly d e liv ered to th e m o rtg ag e e w ho re ta in s
a c tu a l a n d c o n tin u o u s possession th ereo f, is v o id as a g a in st cred ito rs
o f th e m o rtg ag o r a n d a s a g a in st su b se q u e n t p u rc h a se rs a n d m o rtg ag ees
in good fa ith , unless th e m o rtg ag e, o r a co p y th e re o f, is filed in th e office
o f th e re g iste r o f deeds in th e c o u n ty w h ere th e p ro p e rty is s itu a te d ,
o r if th e m o rtg ag o r is a re sid e n t o f th e s ta te , th e n o f th e c o u n ty of
w h ich h e is a t th e tim e a re sid en t. A m o rtg ag e so filed is in v a lid
a f te r tw o y e ars unless w ith in th ir ty d a y s n e x t p reced in g su ch tw o y e ars


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

1423;

a n d each tw o y e ars th e re a fte r th e m ortgagee, his a g e n t o r a tto rn e y ,
m ak es a n affid av it ex h ib itin g th e in te re s t o f th e m o rtg ag ee in th e
p ro p e rty , a n d files th e sam e in th e sam e m a n n e r as th e .m o rtg a g e .
I n case o f d e fa u lt th e m o rtg ag ee m a y sell upo n te n d a y s notice.
A m o rtg ag e o f ex em p t perso n al p ro p e rty is in v a lid unless executed
jo in tly b y h u s b a n d a n d w ife w here t h a t re la tio n exists.
C o lla te r a l s .
G overned b y th e com m on la w o n B ailm en ts a n d '
Pledge.
C o n d i t i o n a l S a le s . C onditio n al c o n tra c ts, b y w hich th e ow ner­
ship re m a in s in th e p a r ty p ro p o sin g to sell u n til th e p u rc h a se priceis p a id , a re tre a te d a s c h a tte l m o rtg ag e s a n d m u s t be filed in th e
office of th e re g iste r of deeds in th e sam e m a n n e r as su ch chattel»
m ortg ag es b u t re m a in In force w ith o u t th e ren ew al a ffid a v it requiredin c h a tte l m ortgages.
C o n t r a c t s . A ll c o n tra c ts w hich, b y th e com m on law , a re Jointonly, sh all b e c o n stru ed to be jo in t a n d sev eral. T h e use of p riv ateseals in w ritte n c o n tra c ts (e x c ep t seals of c o rp o ra tio n ) is abolished.
C o n v e y a n c e s . (See D eeds.)
C o r p o r a tio n s . C orp o ratio n s a re fo rm ed u n d e r a g en eral s ta tu te .
P ro sp e c tiv e c o rp o ra tio n s m u s t a p p ly to th e c h a r te r b o a rd fo r a c h a rte r.
A $25 a p p lic a tio n fee m u s t a cc o m p a n y a n a p p lic a tio n . C h a rte r fee­
ls o n e -te n th of o ne p e r c e n t of its a u th o riz e d c a p ita l s to c k u p o n theflrst $ 1 0 0 , 0 0 0 ; o n e -tw e n tie th of one p e r c e n t on all in excess of $ 1 0 0 , 0 0 0 .
F o rm s fo r a p p lic a tio n s a n d c h a rte rs fu rn ish e d b y th e S e c re ta ry of“
S ta te . E v e ry c o rp o ra tio n m u s t com m ence a c tiv e o p e ra tio n s w ith in
one y e a r a f te r filing its c h a r te r w ith th e s e c re ta ry of s ta te ; fa ilu re to
do so w orks its disso lu tio n . D u ra tio n of c h a r te r is 'fifty y e a rs. Noc o rp o ra tio n (e x c ep t ra ilro ad , b a n k in g , a n d b u ild in g a n d lo a n ), cancom m ence busin ess u n til i t file w ith th e s e c re ta ry of s ta te a n a ffid a v it
m a d e b y its p re s id e n t a n d s e c re ta ry s e ttin g fo rth t h a t n o t less th a n
20 p e r c e n t of its c a p ita l sto ck h a s b e en p a id in a c tu a l cash, o r p ro p e rty
e q u iv a le n t th e re to . T h e n a m e a d o p te d m u s t in d ic a te th e n a tu re of
th e business. T h e c o rp o ra te n a m e m u s t beg in w ith th e w o rd “ th e ”
a n d e n d w ith th e w o rd “ c o rp o ra tio n ,” "c o m p a n y ,” “ a sso c iatio n .”
o r “ so cie ty ,” b u t th is does n o t a p p ly to b a n k s, b e n ev o len t o r relig ­
io u s societies. T h e re m u s t b e a t le a st five 'd ire cto rs, th re e of whomm u s t b e re sid en ts of th e S ta te . T h e a n n u a l s ta te m e n t sh all b e m adeb y each c o rp o ra tio n fo r p ro fit in th e m o n th of F e b ru a ry of each y e a r,
show ing a co m p le te d e ta ile d s ta te m e n t of th e c o n d itio n of su ch cor­
p o ra tio n , o n th e 3 1st d a y of D ecem b er n e x t preceeding. F a ilu re to*
file th in re p o rt w ith in n in e ty d a y s fro m tim e fixed w orks a forfeitureof th e c h a rte r, a n d a p e n a lty of $5 fo r each d a y th e re p o rt is delay ed .
T h e c a p ita l sto ck c an b e in c re a se d to a n a m o u n t n o t exceeding th re e
tim e s th e original a m o u n t fixed In th e c h a r te r a n d to a n y fu rth e r
a m o u n t of b o n a fide fu lly p a id u p c a p ita l. C ap ital sto c k m a y alsob e decreased. P re fe rre d s to ck c a n be issu ed if a ll th e h o ld ers o f
com m on s to ck c o n se n t. D iv idends c an n o t b e de clared fro m a n y
source o th e r th a n t h a t w hich re s u lts fro m pro fits. T h e c o rp o ra tio n
c a n b orrow m o n ey n o t to exceed th e a m o u n t of its c a p ita l sto ck .
C o s ts . (See A ctions.) C o rp o ra tio n s (except b a n k s, in su ran ce,
build in g a n d lo a n com panies a n d th o se n o t organized fo r profit) m u s t
p a y a n a n n u a l fran c h ise ta x o n p a id -u p c a p ita l a s follow s: N o t o v e r
$10,000, $10; o v e r $10,000 a n d n o t o v e r $25,000, $25; o v e r $25,000a n d n o t o v e r $50,000, $50; o v e r $50,000 a n d n o t o v e r $100,000, $100;
o v e r $100,000 a n d n o t o v e r $250,000,' $125; o v e r $250,000 a n d n o t
o v e r $500,000, $250; o v e r $500,000 a n d n o t o v e r $1,000,000, $500;
o v e r $ 1 ,0 0 0 ,0 0 0 a n d n o t o v e r $ 2 ,0 0 0 ,0 0 0 , $ 1 ,0 0 0 ; over $ 2 ,0 0 0 ,0 0 0
a n d n o t o v er $3,000,000, $1,500; o v e r $3,000,000 a n d n o t over
$5,000,000, $2,000; o v e r $5,000,000, $2,500.
C o u rts ^ T erm s a n d J u ris d ic tio n . D is tric t c o u rts, h o ld in g tw o to
th re e te rm s a y e a r in e v e ry c o u n ty , h a v e g en eral orig in al ju risd ic tio n '
in la w a n d e q u ity . R e g u la r te rm s of th e p ro b a te c o u rt a re h e ld in-,
each c o u n ty o n th e first M o n d a y in each m o n th a n d special or ad jo u rn e d
te rm s m a y b e h e ld a s b usiness m a y re q u ire . J u s tic e ’s ju risd ic tio n in
civil a ctio n s fo r th e re c o v ery o f m oney, $300; to reco v er specific
p e rso n al p ro p e rty , $100. T h e su p re m e c o u rt is th e c o u rt of la s t re so rt.
C r e d i t o r s ’ B ills . C re d ito rs m a y b rin g a n a c tio n in th e n a tu re of’
a c re d ito rs ’ b ill to m a rs h a l a sse ts o r s e t a sid e fr a u d u le n t conveyancesas in o th e r s ta te s .
D a y s o f G r a c e . A bolished.
D e e d s . N o p a rtic u la r fo rm s of c o nveyances a re p re scrib ed . Asa ru le th e fo rm used in o th e r S ta te s is sufficient. As b etw een
th e p a rtie s c onveyances a re v a lid w ith o u t b e in g rec o rd e d .
The
w ife sh o u ld jo in w ith h e r h u s b a n d in th e c o n v ey an ce, a n d a n y
c o nveyance o r m o rtg ag e of th e h o m e stea d w ith o u t h e r u n itin g in thesam e is a b so lu te ly void. If th e w ife h a s n e v e r resid ed in th e S ta te
h e r s ig n a tu re is n o t n e ce ssa ry . G ra n to rs n e ed n o t a tta c h a n y seal'
o r soroll to th e ir sig n atu re s, a n d no w itnesses a re n e ce ssa ry unlessg ra n to rs a re u n a b le to w rite . C orp o ratio n s convey b y deed, sealed
w ith th e c o rp o ra te seal a n d signed b y p re sid e n t, v ic e -p re sid en t, p re ­
sid in g m e m b e r, o r tru s te e . T h e ack n o w le d g m e n t m u s t b e b efo re a
ju d g e o r c lerk of th e d is tric t c o u rt h a v in g a seal, a ju s tic e of thepeace, n o ta ry p u b lic, c o u n ty clerk, re g is te r of deeds, m a y o r o r clerk
of a n in c o rp o ra te d c ity . E v e ry n o ta r y p u b lic shall a d d to h is official
s ig n a tu re th e d a te of th e e x p ira tio n of h is com m ission a s n o ta ry
p u b lic. I n cases w here th e ack n o w le d g m e n t is m a d e o u t of theS ta te i t m u s t b e m ad e before a c o u rt of record, a clerk, o r o th e r
officer h a v in g th e seal th e re o f, a com m issioner of deeds fo r K a n sa s,
Ju stic e of th e peace o r n o ta ry p u blic, o r before a n y consul of th e
U n ite d S ta te s re sid e n t in a n y foreign c o u n try o r p o rt. D eeds and.
m o rtg ag e s m u s t b e re c o rd e d in th e office of th e re g iste r of d e e d s o f
th e c o u n ty in w hich th e la n d is s itu a te d , o r th e y w ill be v o id a s to
s u b se q u e n t g ra n te e s in good fa ith w ith o u t notice.
D e e d s o f T r u s t in th e n a tu r e of m o rtg ag e s a re n o t u se d so fa r as
sale b y th e tru s te e is c oncerned. (See T ru sts , etc.)
D e p o s iti o n s . D epo sitio n s a re ta k e n u p o n n o tic e to th e o p p o site
p a r ty . C ourts a re also a u th o riz e d to a p p o in t com m issioners to ta k e
de p o sitio n s. T h e depo sitio n s m a y b e ta k e n before a n y p e rso n a u th o r­
ized to ta k e a ck n o w led g m en ts. E a c h w itn e ss m u s t sign h is own.
dep o sitio n . T h e n o tic e m u s t be a tta c h e d to th e d e p o sitio n s a n d
in closed w ith th e m . T h e d e p o sitio n s sh o u ld b e com m enced o n th e
d a y n a m e d , a n d som e p o rtio n of a d ep o sitio n ta k e n o n each succes­
sive d a y , S u n d a y s a n d n a tio n a l h o lid a y s n o t being re g a rd e d . If'
ta k e n b y in te rro g a to rie s a n d c ro ss-in terro g a to rie s, u n d e r a g re em en t
o r o therw ise, e ac h in te rr o g a to r y a n d c ro ss-in terro g a to ry m u s t be
p u t to e ac h w itness a n d an sw ered so fa r a s h e c a n a n sw e r it, a n d th e
a n sw e r w ritte n dow n. I f th e d e p ositions a re ta k e n before th e m a y o r,
n o ta ry p u blic, o r com m issioner a p p o in te d as aforesaid, th e y m u s t
be certified u n d e r his official seal. If before a n y of th e o th e r officers
a b o v e n a m e d , a c ertific a te m u s t be a n n ex e d , u n d e r th e seal of thec o u rt of th e c o u n ty , o r th e g re a t seal of th e S ta te , t h a t th e officer
b y w hom th e d e p o sitio n s w ere ta k e n w as, a t th e tim e of ta k in g th e
sam e, su ch officer a s h e re p re se n ts him self to b e in his c ertific a te .
T his sh o u ld b e a tta c h e d to th e m a g is tra te ’s certificate.
D e s c e n t a n d D i s t r i b u t i o n . T h e h o m e stea d is th e absolutep ro p e rty of th e w idow a n d c h ild re n — o ne-half in v a lu e to th e w idow ,
a n d th e o th e r h a lf to th e c h ildren, w hen b o th su rv iv e . T h e hom e­
ste a d c a n n o t be d iv id e d o r sold b y a n a c tio n fo r p a rtitio n u n til alb
th e c h ild re n a t ta in m a jo rity . O ne-half of all re a l e s ta te ow ned b y
h u s b a n d d u rin g c o v ertu re , a n d n o t conveyed b y h u s b a n d a n d w ife,
n o r sold a t ju d ic ia l sale, a n d n o t n e ce ssa ry to p a y d e b ts goes to thew ife in fee sim ple: e x c e p t of la n d sold b y h u s b a n d w hose w ife never-

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B A N K I N G A N D C O M M E R C IA L L A W S — K A N S A S

re sid ed In th e S ta te .
R em ain in g e s ta te goes to th e s u rv iv in g
c h ild re n , a n d liv in g issu e of p rio r d eceased ch ild ren , ch ild re n ta k in g
p e r stirp e s, in e q u a l sh ares, or, if n o n e, to th e w idow . F o r w a n t of
w ife o r ch ild th e w hole e s ta te goes to th e p a re n ts . T h e ru les a p p li­
c ab le to w idow of d eceased h u s b a n d a p p ly to h u s b a n d of deceased
w ife. Ille g itim a te ch ild re n in h e rit fro m th e m o th e r, a n d also from
th e fa th e r, if h is re c o g n itio n h a s b e en g e n eral a n d n o to rio u s, o r in
w ritin g . W h en a c h ild w o u ld in h e rit fro m e ith e r p a re n t, su ch p a re n t
w ill in h e rit fro m th e child. P e rso n a l p ro p e rty descends in th e sam e
w ay a s re a l e sta te . P r o p e r ty d e sc e n d in g b y law o r w ill is s u b je c t
to a n In h e rita n c e ta x , v a ry in g in p e rc e n ta g e a cc o rd in g to re la tio n sh ip
a n d a m o u n t. (See E x e m p tio n s.)
D o w e r . D o w er is a b o lish ed b y law . (See D e sc e n t a n d D istri­
b u tio n .)
E v i d e n c e . (See T e stim o n y .)
E x e c u t i o n s m a y b e o rd e re d a s soon a s ju d g m e n t Is o b ta in e d .
T h e re is n o s ta y o f e x ec u tio n in th e d is tric t c o u rt. I n ju s tic e ’s
c o u rts, b y filing b o n d , s ta y s of ex ec u tio n a re g ra n te d a s follow s:
O n a n y ju d g m e n t f o r $20 a n d u n d e r, th ir ty d a y s; o v e r $20 a n d u n d e r
$50, s ix ty d a y s: o v e r $50 a n d n o t ex ceed in g $100, n in e ty d a y s; o v e r
$100, o n e h u n d re d a n d tw e n ty d a y s. R eal e s ta te sold o n e x ec u tio n
o r o rd e r of sale, g iv in g th e d e b to r e ig h te en m o n th s in w hich to redeem .
T h e d e b to r is e n title d to possession o f th e p ro p e rty d u rin g th e p erio d
p ro v id e d fo r re d e m p tio n .
E x e m p t i o n s . H o m e ste a d of 160 a cres of fa rm in g la n d , o r of one
a c re w ith in a n in c o rp o ra te d to w n o r c ity , w ith build in g s th e re o n ,
u n lim ite d in v a lu e . A ll h o u seh o ld goods a n d w earin g a p p a re l; tw o
cows, te n hogs, o ne y o k e of o x en , a n d one h o rse o r m ule, o r in lieu
of o ne y o k e of o x en a n d one ho rse o r m u le, a sp a n of horses o r m ules,
a n d tw e n ty sh eep a n d th e ir w ool; n e ce ssa ry fo o d fo r th e s u p p o rt of
su ch s to c k fo r one y e a r; one w agon, tw o plow s, d ra g , a n d o th e r
fa rm in g u te n sils, n o t ex ceed in g $300; g rain , m e a t, v e g etab le s, gro­
ceries, e tc ., fo r th e fa m ily fo r o ne y e a r; th e to o ls a n d Im p lem e n ts of
a n y m ech an ic, m in er, o r o th e r p erso n , k e p t fo r th e p u rp o se o r c a rry ­
in g o n h is b usiness, a n d in a d d itio n th e re to sto c k -in -tra d e n o t exceed­
in g $400 in v a lu e ; lib ra ry , im p le m e n ts, a n d office fu rn itu re of a n y
p ro fessio n al m a n . A lso p erso n al e arn in g s of th e d e b to r e arn ed d u rin g
th re e m o n th s p reced in g th e g a rn is h m e n t o r a tta c h m e n t, a n d th re e
m o n th s ’ pen sio n m o n ey , w h ere su ch e arn in g s o r p ension m o n e y is
n ecessary fo r th e s u p p o rt o f th e d e b to r’s fam ily , b u t 10 p e r c en t of
su ch earn in g s m a y b e re q u ire d tp b e p a id in a n d a p p lie d o n th e ju d g ­
m en t.
F o r e i g n C o r p o r a t i o n s . A fo reign c o rp o ra tio n d oing busin ess in
th is S ta te m u s t file a cértifled co p y of its c h a r te r w ith th e se c re ta ry
of s ta te a n d p a y to th e s ta te tre a s u r e r th e sam e fees u p o n th e a m o u n t
of c a p ita l in v e sted o r u sed in th is s ta te a s a d o m e stic co rp o ra tio n ,
w hen i t receiv es a c ertific a te a u th o riz in g i t to do business a n d is th e n
s u b je c t to s u b s ta n tia lly th e sam e p rovisions, ju d ic ia l c o n tro l, re s tric ­
tio n s, a n d p e n alties a s a d o m e stic c o rp o ra tio n . A n n u a l s ta te m e n ts
m u s t b e filed in F e b ru a ry , g iv in g c o n d itio n on th e 31 st of D ecem ber
p reced in g . I f a fo reig n c o rp o ra tio n fails to file w ith th e s e c re ta ry of
s ta te th e s ta te m e n t re q u ire d b y la w w ith in n in e ty d a y s a f te r th e tim e
p ro v id e d for, its rig h t to «do busin ess in th e S ta te is th e re b y fo rfeited .
A p e n a lty is im p o sed o f $5 fo r each d a y th is re p o rt is delay ed .
F o r­
eign c o rp o ra tio n s m u s t p a y a n a n n u a l fran c h ise ta x o n t h a t p o rtio n
o f th e ir c a p ita l re p re se n te d b y its p ro p e rty a n d business in K a n sa s
on th e sam e b a sis a s d o m estic co rp o ratio n s.
F r a u d . (See A tta c h m e n ts , A rre st, a n d A ssignm ents.)
G a r n i s h m e n t . A t o r a f te r th e tim e of b e g in n in g a n a c tio n to
re c o v er d a m a g es fo u n d e d u p o n c o n tra c t, ju d g m e n t o r decree, o r a fte r
th e issu an ce of a n e x ec u tio n a n d b efo re i t is re tu rn e d , if th e p la in tiff
cau se to b e filed w ith th e clerk a n a ffid a v it s ta tin g th e a m o u n t of his
claim o v e r a n d a b o v e a ll offsets, t h a t h e believes t h a t som e person,
n a m in g h im , in d e b te d to , o r h a s p ro p e rty in h is possession o r u n d e r
his c o n tro l b elo n g in g to th e d e fe n d a n t, a n d t h a t su ch d e fe n d a n t h a s
n o p ro p e rty lia b le to e x ec u tio n sufficient to s a tisfy h is d e b t, a n d
t h a t th e in d e b te d n ess o r p ro p e rty so h e ld is n o t b y la w e x e m p t
fro m seizu re o r sale u p o n ex ec u tio n , th e clerk sh all issue a g a rn ish ­
m e n t sum m o n s.
G u a r a n t y C o m p a n ie s . (See T r u s t C om panies.)
‘ H o lid a y s . J a n u a r y 1st, F e b ru a ry 22d, M ay 3 0 th , J u ly 4 th , first
M o n d ay in S e p te m b e r (L ab o r d a y ), D ecem b er 2 5th, a n d T h a n k sg iv ­
in g D a y . I f a n y of th e se fa ll o n S u n d a y th e M onday follow ing is
a h o lid a y .
H u s b a n d a n d W ife . (See M arried W om en.)
I n j u n c t i o n s . In ju n c tio n s m a y b e g ra n te d b y a 'd ls tr ic t c o u rt or
b y th e ju d g e th e re o f a t th e b e g in n in g of a n a c tio n o r a fte rw a rd s , in
his d iscretio n . A b o n d m u s t b e g iv en to p ro te c t th e d e fe n d a n t
a g a in s t a n y loss in case th e in ju n c tio n is w ro n gfully o b ta in e d . I n
th e a b sen ce of th e ju d g e fro m th e c o u n ty th e p ro b a te ju d g e m a y
g ra n t te m p o ra ry in ju n c tio n s.
I n s o l v e n c y . (See A ssig n m en ts.)
I n t e r e s t . L egal ra te , 6 p e r cen t, b u t 10 p e r c e n t m a y be agreed
u p o n . E x cess of 10 p e r c e n t is fo rfe ite d , a n d in a d d itio n th e re to th e re
sh all b e d e d u c te d fro m th é a m o u n t d u e fo r p rin c ip a l, w ith law ful
in te re s t, a n a m o u n t e q u al to th e in te re s t c o n tra c te d fo r in excess of
10 p e r c en t. T h e leg al in te re s t o rig in ally c o n tra c te d fo r c o n tin u e s
u n til th e d e b t is p a id , a n d no a d d itio n a l in te re s t c a n b e c h arg ed b y
w a y of p e n a lty fo r d e fa u lt. A p u rc h a se r of a n e g o tia b le n o te fo r
v a lu e befo re m a tu rity , w ith o u t n o tic e , ta k e s th e n o te free of th e
u su rio u s ta in t.
J u d g m e n t s . J u d g m e n ts o f c o u rts of reco rd a re lien s o n th e re a l
e s ta te of th e d e b to r w ith in th e c o u n ty fro m th e first d a y of th e te rm
a t w hich th e ju d g m e n t w as re n d e re d ; b u t ju d g m e n ts b y confession
a n d ju d g m e n ts re n d e re d a t th e sam e te rm d u rin g w hich th e a c tio n
w as com m enced a re lien s o n ly fro m th e d a y o n w hich th e ju d g m e n t
w as re n d e re d . J u d g m e n ts lose th e ir p rio r ity o v e r s u b se q u e n t ju d g ­
m e n ts u n less e x ec u tio n is issu ed a n d lev ied w ith in o ne y e a r a fte r
ju d g m e n t. A certified co p y of th e ju d g m e n t m a y b e filed in th e
office of th e c le rk of th e d is tric t c o u rt of a n y o th e r c o u n ty a n d th e
ju d g m e n t w ill th e n b e a lie n o n re a l e s ta te In t h a t c o u n ty , b u t execu­
tio n c a n o n ly issue fro m th e c o u rt in w h ich th e ju d g m e n t is re n d e re d .
J u r i s d i c t i o n . (See C ourts.)
L ic e n s e . A g e n ts o f in su ra n c e c o m p an ies a re re q u ire d to ta k e o u t
lic e n se s fro m th e s u p e rin te n d e n t o f in su ra n ce . C ities a re a u th o riz e d
to e n a c t licen se o rd in a n c e s a n d c e rta in classes o f business a re re q u ire d
to ta k e o u t a license.
L i e n s . M echanics, m aterial-m ien, a n d la b o re rs T a re e n title d to
o b ta in liens u p o n re a l e s ta te fo r la b o r p e rfo rm ed o r m a te ria l fu rn ish e d
In th e e re ctio n o r re p a ir of a n y b u ild in g . S ta te m e n ts a s to th e
a m o u n t of th e claim , fo r w h a t i t w as re n d e re d a n d b y w hom m u s t
b e filed in th e office of th e clerk of th e c o u rt. L iv e ry -sta b le keepers,
fo rw a rd in g m e rc h a n ts a n d com m on carrie rs h a v e liens. (See J u d g ­
m e n ts.)
L i m i t a t i o n s o f S u it s . A n a c tio n fo r th e re c o v ery of re a l p ro p e rty ,
sold o n e x ec u tio n o r b y e x ec u to rs, a d m in is tra to rs , o r g u a rd ia n s,
b ro u g h t b y th e e x ec u tio n d e b to r, o r th e h eirs, W ard, o r g u a rd ia n s,
w ith in five y e a rs a f te r th e d eed is reco rd ed . O th e r a ctio n s fo r
re c o v ery of re a l p ro p e rty , w ith in fifteen y e ars. O n official b onds
a n d c o n tra c ts in w ritin g , five y e ars. C o n tra c ts n o t in w ritin g , th re e
y e ars. T resp ass, d e tin u e , re p lev in , in ju ries n o t a risin g o n c o n tra c t.


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

a n d relief o n th e g ro u n d bf fra u d , tw o y e a rs. A c tio n fo r libel, slan d er,
m alicious tra n s a c tio n , o r false im p riso n m e n t u p o n a s u it fo r p e n a lty
o r fo rfe itu re , one y e a r. A c tio n fo r a n y o th e r relief n o t before
p ro v id e d for, five y e ars. A n y case fo u n d e d on c o n tra c t, p a r t p a y ­
m e n t, o r a w ritte n a ck n o w le d g m e n t o r prom ise, renew s th e c o n tra c t.
T h e s ta t u te ru n s fro m th e d a te of su ch renew al.
M a r r ie d W o m e n . T h e re a l a n d p e rso n al p ro p e rty ow ned b y a
w om an a t th e tim e o f h e r m a rriag e , a n d a n y p ro p e rty w h ich comes
to h e r b y de sc e n t, devise, o r b e q u est, o r g ift of a n y p e rso n e x c e p t her
h u sb a n d , re m a in s h e r sole a n d s e p a ra te p ro p e rty n o tw ith s ta n d in g h e r
m a rriag e , a n d is n o t s u b je c t to th e disposal of h e r h u s b a n d o r liable
fo r h is d e b ts. M arried w om en m a y sell a n d co n v ey th e ir re a l a nd
p e rso n al p ro p e rty a n d e n te r in to a n y c o n tra c t w ith re g a rd to th e
sam e in th e sam e m a n n e r a n d to th e sam e e x te n t a s a m a rrie d m an
m a y in re la tio n to his' p ro p e rty . She m a y sue a n d b e su ed in th e
sam e m a n n e r a s If she w ere single. She m a y c a rry o n a n y tr a d e or
business, p erfo rm la b o r o r services fo r h e r s e p a ra te a cc o u n t, a n d h er
e arn in g s o r proceeds from la b o r, tra d e , o r b usiness re m a in h e r s e p a ra te
p ro p e rty , a n d m a y b e used a n d in v e ste d b y h e r in h e r ow n n am e.
M in e s a n d M i n i n g . T h e law p ro v id e s fo r th e a p p o in tm e n t of a
m ine in s p e c to r w ith a u th o rity to re q u ire m in e ow ners to p rovide
c e rta in fa c ilitie s fo r th e h e a lth a n d s a fe ty of perso n s em ployed a nd
com pel p ro p e r v e n tila tio n , re g u la te e x c a v a tio n s, a ir courses, e tc .
M o r t g a g e s . A m o rtg ag e of re a l e sta te , to b e v a lid a s a g a in st
su b se q u e n t bona-fide p u rc h a se rs, m u s t b e d u ly acknow ledged a n d
re c o rd e d in th e office of th e re g iste r of d e ed s of th e c o u n ty w h e re th e
la n d is s itu a te d . M ortgages m a y b e d isch a rg e d o n m a rg in of record
b y m o rtg ag e e o r a tto rn e y o r assignee in presence of re g iste r, o r b y
s a tisfa c tio n e n te re d o n th e in s tru m e n t w h en copied o n th e m arg in
b y th e re g iste r; o r b y a n in d e p e n d e n t release d u ly acknow ledged
a n d re c o rd e d . W ife m u s t jo in in a ll m o rtg ag e s e x c e p t th o se for
p u rc h a se m o n ey . M ortgages a re foreclosed b y s u it o n ly . B y a n
a c t of th e L e g isla tu re w hich to o k effect M ay 18, 1893, real e sta te
sold u n d e r foreclosure of m o rtg ag e is s u b je c t to e ig h te en m o n th s
re d e m p tio n . I f th e m o rtg ag e foreclosed is fo r th e p u rc h a se m oney
six m o n th s o n ly is allow ed fo r re d e m p tio n . T h is a c t does n o t a p p ly
to m o rtg ag e s e x ec u te d p rio r to th e d a te th e a c t to o k effect. W hen
a m o rtg a g e is assigned th e a ssig n m e n t sh o u ld b e acknow ledged a n d
re c o rd e d . If th e a ssig n m e n t w as e x ec u te d p rio r to M arch 15, 1899,
i t c a n be re c o rd e d w h e th e r acknow ledged o r n o t, a n d u n d e r th e law s
m u s t b e re c o rd e d w ith in fo u r m o n th s from t h a t d a te o r p a y m e n t to th e
re c e n t o w ner of th e m o rtg ag e w ill b e a com p le te defense to a n a ctio n
th e re o n . (F o r F orm s, see D eeds: see E x ecutions.)
(F o r M ortgages o n C h attels, see C h a tte l M ortgages: see E x e c u ­
tions.)
N o ta r ie s . N o ta rie s a re a p p o in te d b y th e G o v ern o r a n d serve fo r
fo u r y e ars. T h e y give b o n d in th e su m of $1,000 a n d a re req u ire d
to affix th e d a te of th e e x p ira tio n of th e ir com m ission to a ll certifi­
cates.
N o te s a n d B ills o f E x c h a n g e . N eg o tiab le In s tru m e n t A c t to o k
effect J u n e 8 , 1905.
P a r t n e r s h i p s . L im ite d o r special p a rtn e rs h ip s m a y b e form ed
fo r a n y legal p u rp o se e x ce p t b a n k in g o r in su ra n ce . S uch p a rtn e rs h ip s
m a y co n sist of one o r m o re persons w ho a re general p a rtn e rs , a n d
one o r m o re w ho c o n trib u te a specific a m o u n t of c a p ita l a n d shall
be called special p a rtn e rs . T h e special p a rtn e rs a re n o t lia b le fo r th e
d e b ts of th e p a rtn e rs h ip b e y o n d th e a m o u n t c o n trib u te d b y th e m
re s p ec tiv e ly b u t th e n am es of th e sp ecial p a rtn e rs m u s t n o t b e used
in co n n ectio n w ith th e b usiness. Such a p a rtn e rs h ip is fo rm ed b y
e x ec u tin g a certific a te s ta tin g th e n am e, th e n a tu r e of th e business,
th e n a m e s of th e general a n d sp ec ia l p a rtn e rs , a n d th e ir pla c e of
residence, a n d th e a m o u n t of c a p ita l c o n trib u te d b y each special
p a rtn e r, a n d th e p e rio d w hen th e p a rtn e rs h ip is to com m ence a n d
w hen it w ill te rm in a te . T h e c ertific a te m u s t b e a cknow ledged a n d
filed a n d reco rd ed in th e office of th e c o u n ty clerk.
P o w e r o f A t t o r n e y . (See D eeds.)
P r o b a t e L a w . (See A d m in istra tio n .)
P r o t e s t . (See N otes a n d Bills.)
R e c o r d s . (See D eeds.)
R e d e m p t i o n . (See M ortgages.)
R e p l e v in . T h e p la in tiff in a n a c tio n to rec o v er th e possession of
specific p e rso n al p ro p e rty m a y claim th e im m e d ia te d e liv e ry of th e
sam e b y filing affid av it a n d g iving b o n d . P r o p e r ty rep lev in ed m u s t
b e h e ld b y th e officer ta k in g It tw e n ty m o u r h o u rs, d u rin g w hich tim e
th e p a r ty fro m w hom th e p ro p e rty is ta k e n m a y give b o n d to th e
p la in tiff fo r n o t less th a n d o u b le th e a m o u n t of th e v a lu e th e re o f
c o n d itio n e d fo r th e r e tu rn of th e sam e o r its v a lu e in case i t sh all
be a d ju d g e d th e p la in tiff is e n title d th e re to , a n d th e re u p o n m a y
h a v e th e p ro p e rty re tu rn e d to him .
S e rv ic e . A ll service of process Is m a d e b y th e sheriff o r b y con­
stab les, o r b y som e one sp ecially a u th o riz e d in a n y p a rtic u la r case,
a n d m u s t b e issued in th e n a m e of th e s ta te w ith th e seal of th e
officer issuing th e sam e affixed.
S u i t s . (See A ctions.)
T a x e s . O ne-half th e a n n u a l le v y fo r ta x e s becom es d u e D ecem ­
b e r 2 0 , a n d if n o t p a id th e w hole a m o u n t becom es d u e a n d th e re is a
p e n a lty of five p e r c e n t ad d ed . I f th e w hole a m o u n t is p a id th e re
is a re b a te of 5 p e r c e n t o n th e la s t h a lf. If n o t p a id b y J u n e 20 of
th e succeeding y e ar, a n o th e r 5 p e r c e n t p e n a lty is a d d e d . W h en
th e ta x u p o n real e s ta te is d e lin q u e n t, i t is sold fo r ta x e s o n th e first
T u e sd a y in S e p te m b e r follow ing. A fte r sold i t b e a rs in te re s t a t th e
r a te of 15 p e r c e n t p e r a n n u m a n d th e sam e r a te u p o n s u b se q u e n t
ta x e s p a id a n d in dorsed on th e ta x certific a te . T h e ta x lie n a tta c h e s
to re a l e s ta te o n N o v em b er 1, in th e y e a r in w hich th e ta x is lev ied .
A fte r la n d is sold fo r ta x e s, i t m a y b e redeem ed w ith in th re e y e ars
fro m d a te of sale. T h e in te re s t of a m in o r m a y b e redeem ed a t a n y
tim e w ith in one y e a r a fte r he a tta in s his m a jo rity , a n d id io ts a n d
in san e persons m a y redeem w ith in five y e a rs a lte r th e sale.
T r u s t C o m p a n ie s . T r u s t com panies m a y b e o rg an ized w ith a
c a p ita l of n o t less th a n $ 1 0 0 , 0 0 0 , a n d m a y receive m oneys in tr u s t
a n d e x ec u te a n y tr u s t c o m m itte d to th e m , e ith e r b y a n y p e rso n o r
b y o rd e r of a n y c o u rt, a n d m a y e x ec u te o r g u a ra n te e a n y b o n d
re q u ire d b y la w to be given in a n y proceeding in c o u rt, a n d a c t as
a g e n t fo r th e in v e stm e n t of m o n e y a n d fo r th e p u rp o se of issuing,
re g iste rin g , tra n s fe rrin g o r c o u n te rsig n in g certificates of sto ck , b o n d s
o r o th e r evidences of d e b t, a c t a s g u a rd ia n a n d g u a ra n te e th e fid elity
a n d p erfo rm an ce of d u ty of p ersons h o ld in g p u b lic offices o r p riv a te
tru s ts , a n d c ertify a n d g u a ra n te e title to re a l e s ta te a n d sell a ll kin d s
of n e g o tia b le p a p er, a n d receive d e p o sits fro m b a n k s a n d o th e r tr u s t
com panies o r p u b lic officers. T h e y a re re q u ire d to keep o n h a n d 25
p e r c e n t of d ep o sits s u b je c t to ch eck a n d 10 p e r c e n t of tim e deposits,
in th e sam e m a n n e r a s s ta te b a n k s. E a c h d ire c to r m u s t be a sto ck ­
h o ld e r in th e sum of n o t less th a n $1,000. T r u s t com panies a re
u n d e r th e su p erv isio n of th e b a n k com m issioner a n d s u b je c t to his
e x am in atio n .
T r u s t s a n d P o w e r s . A ll tru s ts concerning la n d s m u s t b e c re ated
in w ritin g e x c e p t su ch a s a rise b y im p lic a tio n of law .
"W a re h o u se R e c e ip ts . P r a c tic a lly th e U niform “ W areh o u se
R ec e ip ts A c t.”

B A N K I N G A N D C O M M E R C IA L L A W S — K E N T U C K Y
W ills . A n y p erso n o f fu ll ag e a n d so u n d m in d a n d m em o ry , h a v ­
ing a n in te re s t In re a l o r p erso n al p ro p e rty , m a y give a n d d ev ise th e
sam e to a n y p erso n b y la s t w ill a n d te s ta m e n t la w fu lly e x ecu ted ,
su b jec t, n ev erth eless, to th e rig h ts of cre d ito rs. W ills m u s t b e in
w riting, signed a t th e e n d b y th e te s ta to r , o r a n o th e r in h is p resen ce
a n d b y h is ex p ress d ire c tio n , a n d su b scrib ed in h is p resen ce b y tw o
o r m ore c o m p e te n t w itn esses w ho saw h im su b sc rib e o r heard* h im
acknow ledge it. W ills e x ec u te d w ith o u t th e S ta te in th e m a n n e r
prescribed b y th e law e ith e r of th e p lace w h ere e x ec u te d o r of th e
te s ta to r ’s d o m icile a re d eclared leg ally e x ecu ted . C om pliance w ith
th e se re q u ire m e n ts sh o u ld a p p e a r in th e w itn essin g clause. A w ill
executed , p ro v e d , a n d allow ed in a n o th e r S ta te , a cco rd in g to th e law s
of t h a t S ta te , re la tiv e to p ro p e rty In th is S ta te , m a y b e a d m itte d to
record in th e p ro b a te c o u rt of th e c o u n ty in w hich su ch p ro p e rty Is
s itu a te d , b y p ro d u c in g a n a u th e n tic a te d copy. E v e ry will, w hen
a d m itte d to p ro b a te , sh all b e filed in th e office of th e p ro b a te c o u rt
a n d reco rd ed .

S Y N O P S IS OF

T H E L A W S OF K ENTUCK Y
RELATING TO
B A N K I N G A N D C O M M E R C IA L 'U S A G E S
P re p a re d a n d R ev ised b y H a r r is o n & H a r r is o n , E sq .,
A tto rn e y s a t Law , L ouisville.
(See C ard in A tto rn e y s ’ L ist.)
A c k n o w l e d g m e n t s . D eeds e x ec u te d w ith in th e S ta te m a y be
acknow ledged before th e c le rk of a c o u n ty c o u rt o r a n o ta ry p u b lic,
or m a y b e ack n o w led g ed b efo re a n d p ro v e n b y tw o w itnesses. D eeds
ex ec u te d w ith o u t th e S ta te a n d w ith in th e U n ite d S ta te s m u s t be
acknow ledged before th e clerk of a c o u rt o r h is d e p u ty , n o ta ry p u b lic,
m a y o r of a c ity , s e c re ta ry o f s ta te , com m issioner of deeds, o r ju d g e of
a c o u rt; if e x ec u te d w ith o u t th e U n ite d S ta te s m u s t b e acknow ledged
before a fo reign m in iste r, consul, o r se c re ta ry of le g a tio n of th e U n ite d
S ta te s, o r th e se c re ta ry of fo reign affairs, o r ju d g e of a su p erio r c o u rt
of th e n a tio n w here th e d eed sh all b e e x ecu ted , a tte s te d in e ith e r case
b y th e officer’s seal of office. W h en th e ack n o w le d g m e n t is ta k e n ,
th e officer m a y sim p ly c e rtify t h a t th e d eed w as ack n o w led g ed before
him , a n d w h en it w as done.
A c t i o n s . A c tio n s a re com m enced b y filing in th e c le rk ’s office of
th e p ro p e r c o u rt a p e titio n s e ttin g fo r th th e cau se of a c tio n a n d
causing a su m m o n s o r a w a rn in g o rd e r to b e issued th e re o n . N on­
re sid en ts a n d c o rp o ra tio n s, o th e r th a n b a n k s, c re a te d b y law s of th is
S ta te , a re re q u ire d to give s e c u rity fo r costs.
A d m i n i s t r a t i o n o f E s t a t e s . ’, P e rso n a l e sta te s of deceased p e r­
sons m u s t b e a d m in iste re d b y th e ex ec u to rs n a m e d in th e w ill, o r If
th ese refu se to q u alify , o r n o n e a re n am ed , th e n b y a n a d m in is tra to r
a p p o in te d b y th e c o u n ty c o u rt of th e c o u n ty in w h ich th e d e ce d e n t
resided a t th e tim e of his d e a th . A d m in is tra to rs a n d e x ec u to rs a re
re q u ire d to give b o n d fo r th e fa ith fu l p e rfo rm an c e of th e ir d u ties
a n d w ith s u re ty unless o th e rw ise d ire c te d b y th e Will. T h e y a re
req u ired to file a n in v e n to ry of th e e s ta te w ith in th re e m o n th s a n d
to m a k e s e ttle m e n t w ith in tw o y e ars fro m th e d a te of q u a lific a tio n .
A f f id a v its . A n a ffid a v it m a y b e re a d to v e rify a p lead in g , to
prove th e service of a sum m ons, n o tice, o r o th e r process, in a n a c tio n ;
to o b ta in a p ro v isio n al rem ed y , a n e x a m in a tio n of a w itness, a s ta y
of p roceed in g s o r a w a rn in g o rd e r; or, u p o n a m o tio n . A n affid av it
m ay b e m a d e : 1. I n th is S ta te , b efo re a ju d g e of a c o u rt, o r a
ju stic e of th e p eace, n o ta ry pu b lic, clerk of a c o u rt, o r m a ster-c o m ­
m issioner. 2. O u t of th is S ta te , befo re a co m m issio n er a p p o in te d
b y th e g o v e rn o r of th is S ta te ; o r b efo re a n y o th e r p e rso n em pow ered
b y a com m ission ' d ire c te d to h im b y co n se n t of th e p a rtie s o r b y
o rd e r of th e c o u rt; o r b efo re a ju d g e of a c o u rt, a ju s tic e of th e peace,
a m a y o r o f a c ity , o r n o ta ry p u b lic.
A p p e a ls . A p p eals m a y b e ta k e n fro m a ju s tic e ’s c o u rt to th e
q u a rte rly c o u rt reg ard less o f th e a m o u n t in co n tro v e rsy ; - fro m th e
q u a rte rly c o u rt to th e c irc u it c o u rt w hen th e v a lu e in c o n tro v e rsy ,
exclusive o f in te re s t a n d costs, exceeds $25; fro m th e circ u it c o u rt to th e
co u rt o f a p p ea ls as a m a tte r o f rig h t in all cases in w hich th e title to
land, or th e rig h t to a n easem en t th e re in , o r th e rig h t to enforce ’a
s ta tu to ry lien is d ire c tly in v o lv ed , a n d in a ll cases w hen th e v a lu e
in c o n tro v e rsy , exclusive o f in te re s t a n d costs, a m o u n ts to $500 or
m ore, b u t w h en su ch a m o u n t in c o n tro v e rsy exceeds $200 a n d is less
th a n $ 5 0 0 , th e p a r ty d e se rv in g th e a p p ea l, m a y u p o n p a y m e n t o f th e
ta x a n d filing th e re c o rd in th e c le rk ’s office o f th e C o u rt o f A ppeals,
e n te r a m o tio n t h a t th e a p p ea l b e g ra n te d . I f th e c o u rt u p o n ex am ­
in a tio n o f th e re c o rd decides th e a p p ea l sh o u ld n o t b e g ra n te d , th e
m o tio n sh all b e o v erru led w ith o u t a w ritte n opinion, a n d no p e titio n
fo r a re h e arin g w ill b e e n te rta in e d , b u t if th e c o u rt sho u ld b e o f o pinion
th e e nds o f ju s tic e re q u ire th e ju d g m e n t b e re v e rsed th e n th e a p p ea l
will be g ra n te d a n d a w ritte n op in io n w ill b e filed. N o a p p ea l lies
to th e c o u rt o f ap p eals fro m a n y ju d g m e n t o f a q u a rte rly , c ity , police,
fiscal or ju s tic e ’s co u rt, n o r fro m a n y ju d g m e n t o f th e c o u n ty co u rt.
A r b i t r a t i o n . All c o n trov ersies w hich m ig h t b e th e s u b je c t of a
su it m a y b e s u b m itte d to th e decision of one o r m o re a rb itr a to r s , or
two a n d th e ir u m p ire. T h e subm issio n m a y b e in w ritin g o r b y
e n try of record, a n d th e a g re em en t of su b m issio n sh all be b in d in g on
th e p a rtie s th e re to . If it s ta te s th e m a tte r to b e s u b m itte d a n d w ho
a re to be th e a rb itr a to r s . E a c h a r b itr a to r a n d th e u m p ire, if one
be chosen, sh all ta k e a n o a th to decide th e m a tte r in c o n tro v e rsy
fa irly a n d im p a rtia lly a cco rd in g to law , ju s tic e a n d th e e q u ity of
th e w hole case. T h e a w a rd m u s t be in w ritin g signed b y each a r b i­
t r a to r a n d th e u m p ire, if a n y , a n d sh all b e a final s e ttle m e n t of th e
c o n tro v e rsy b e tw ee n th e p a rtie s . A co p y of th e a w ard m u s t be
given w ith in a re a so n a b le tim e a n d sh all b e b in d in g u p o n b o th .


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

1425

A r r e s t . A n o rd e r fo r th e a rre s t of th e d e fe n d a n t's h a ll b e m a d e
b y th e c o u rt in w hich th e a c tio n is b ro u g h t o r pen d in g , a t its com ­
m en cem en t, o r a t a n y tim e before ju d g m e n t, if a n a ffid a v it of th e
p la in tiff be filed in, his office show ing: 1. T h e n a tu re of p la in tiff’s
claim . 2. T h a t i t is ju s t. 3. T h e sum o r v alu e, w hich th e affiant
believes th e p la in tiff o u g h t to recover. 4. T h a t th e affia n t believes.
C ither t h a t th e d e fe n d a n t is a b o u t to d e p a r t fro m th is S ta te a n d w ith
in te n t to d e fra u d his c re d ito rs h a s concealed, o r m o v ed fro m th is
S ta te , his p ro p e rty , o r so m uch th e re o f t h a t th e process of th e c o u rt
a fte r ju d g m e n t c a n n o t be e x e c u te d ; o r t h a t th e d e fe n d a n t h a s m oney,
o r sec u rities fo r m o n ey , o r evidences of d e b t, in th e possession of
him self, o r of o th e rs fo r h is Use, a n d Is a b o u t to d e p a r t fro m th is
S ta te w ith o u t le a v in g p ro p e rty th e re in sufficient to satisfy p la in tiff’s
claim .
A s s i g n m e n t s a n d I n s o l v e n c y . S u b je c t to N a tio n a l B a n k r u p t
L aw . E v e ry v o lu n ta ry a ssig n m e n t m a d e b y a d e b to r to a n y p e rso n
in t r u s t fo r his c re d ito rs sh all be fo r th e benefit of all th e cre d ito rs of
th e assignor, in p ro p o rtio n to th e ir re sp ec tiv e claim s, a fte r th e p a y ­
m e n t of th e expenses of th e t r u s t; e x c e p t t h a t p ro p e rty conveyed
b y th e deed of assig n m e n t, a n d u p o n w hich th e rè is a v a lid lien,
sh all b e a p p lie d first to th e disch arg e of th e lie n d e b t; a n d e x ce p t
t h a t d e b ts d ue b y th e assig n o r as g u a rd ia n , co m m itte e , tru s te e of
a n express tr u s t c re a te d b y deed o r will, o r as p e rso n al re p re s e n ta tiv e ,
sh all b e p a id in fu ll before th e g eneral cre d ito rs receive a n y th in g .
T h e In te n t of th e assig n o r In m a k in g th e deed of assig n m e n t sh all
n o t in v a lid a te th e deed, unless h e be so lv en t, a n d i t a p p e a r t h a t th e
a ssig n m e n t w as m a d e to h in d e r o r d e la y c re d ito rs. T h e deed v ests
in th e assignee th e title to all th e e sta te , re a l a n d perso n al, belonging
to th e a ssignor a t th e tim e of m a k in g th e a ssig n m e n t, e x c e p t t h a t
p ro p e rty e x em p t b y la w sh all n o t p ass unless e m b ra c ed in th e deed.
I f th e assignor, before m a k in g th e deed, sh all h a v e m a d e a p re fe re n tia l
o r fra u d u le n t tra n s fe r, conveyance, o r g ift o f- a n y of his p ro p e rty ,
o r fra u d u le n t p u rc h a se of a n y p ro p e rty o r th e n a m e of a n o th e r, th e
p ro p e rty so fra u d u le n tly tra n s fe rre d , conveyed, o r p u rc h a se d sh all
v e st in th e assignee, a n d i t sh all be his d u ty to in s titu te such p ro ­
ceedings as m a y be n e ce ssa ry to re c o v er sam e. If, u p o n d e m a n d ,
he refuses to do so, a n y c re d ito r m a y , a n d th e p ro p e rty so recovered
sh all becom e a p a r t of th e e sta te , a n d b e d is trib u te d as o th e r a sse ts.
I f c re d ito rs re p re se n tin g o n e -h a lf in n u m b e r a n d tw o -th ird s of th e
a m o u n t of d e b ts a g a in st th e e s ta te sh all so re q u e st in w ritin g , th e
c o u rt sh all rem ove th e assignee a n d a p p o in t a n o th e r in h is s te a d .
A t t a c h m e n t s . T he w rit m a y issue a g a in st a d e fe n d a n t w ho is a
foreign c o rp o ra tio n o r n o n -resid e n t of th e S ta te ; o r has been a b se n t
from S ta te fo u r m o n th s ; o r h a s le ft th e S ta te w ith in te n t to d e fra u d
c re d ito rs; o r h a s le ft h is c o u n ty to a v o id service of sum m ons; or
so conceals him self t h a t sum m ons c a n n o t be serv ed ; o r is a b o u t to
rem ove, d r h a s rem oved h is p ro p e rty o r m a te ria l p a r t o u t of th e
S ta te n o t le a v in g enough to sa tisfy claim of p la in tiff o r d e fe n d a n t’s
cre d ito rs; o r h a s disposed o r Is a b o u t to dispose of o r sell h is p ro p e rty ,
o r p e rm itte d to be sold o r disposed of w ith fra u d u le n t in te n t to c h e a t
h in d e r o r d e la y c re d ito rs. Also in a c tio n fo r m o n ey d ue u p o n con­
tr a c t ju d g m e n t o r a w ard , if d e fe n d a n t h a v e no p ro p e rty in S ta te
su b je c t to e x ec u tio n , o r n o t enough to sa tisfy p la in tiff a n d collection
will be e n d an g e re d b y d e la y in o b ta in in g ju d g m e n t a n d r e tu rn of
n u lla b o n a . A lso in a c tio n fo r p e rso n al p ro p e rty o rd e re d to be
d elivered to p la in tiff w hich a s p a r t th e re o f h a s been disposed of,
rem oved, o r concealed, so t h a t o rd e r of de liv e ry c an n o t b e e x ecu ted .
A ffidavit as p re sc rib e d b y civil code a n d b o n d re q u ire d , e x c e p t no
b ond re q u ire d in a ctio n ' u p o n n u lla b o n a re tu rn .
B a n k s . I t is U nlaw ful fo r a n y p erso n o r persons,, e ith e r as
in d iv id u a ls o r c o -p a rtn e rs to engage in o r co n d u ct th e b usiness of
p riv a te b a n k in g in th is co m m o n w ealth . C orp o ratio n s m a y be o rg a n ­
ized to co n d u ct b o th a b a n k in g "and tr u s t co m p a n y b usiness. T h e
b o a rd s of d ire c to rs of b a n k s a n d t r u s t com panies d o ing b usiness in
th is S ta te h a v e full p ow er a n d a u th o rity to fix th e h ó u rs of opening
a n d closing of said b a n k s a n d t r u s t com panies, a n d m a y p ro v id e
t h a t on S a tu rd a y of e ac h w eek su ch h o u r of closing b e a s e a rly as
tw elv e (12) o ’clock noon. A D e p a rtm e n t o f B anking, p ro v id in g for a
B anking C om m issioner, d e p u ty com m issioner a n d exam iners o f S ta te
ban k s, a n d prescribing th e ir duties: a n d for th e exam in atio n o f all
financial in s titu tio n s organized a n d doing b usiness u n d e r th e law s of
th e S ta te w as c re a te d b y a law effective J u ly 1st, 1912.
C h a t t e l M o r tg a g e s a n d D e e d s o f T r u s t . N o deed of t r u s t o r
m ortg ag e, conveying a leg al o r e q u ita b le title to re a l o r p e rso n al
e sta te ,' sh all b e valid a g a in st a p u rc h a se r fo r a v a lu a b le co n sid eratio n ,
w ith o u t n o tic e th e re o f o r a g a in st c re d ito rs, u n til su ch deed sh all be
acknow ledged o r p ro v e d a cco rd in g to law , a n d lodged fo r reco rd . I t
is a p e n al offense, p u n ish ab le b y fine a n d im p riso n m e n t, fo r a n y p e r­
son to sell a n y perso n al p ro p e rty , o n w hich th e re is a m o rtg ag e of
record, w ith th e in te n t to p re v e n t th e foreclosure of th e m o rtg ag e
a n d a sale of th e p ro p e rty .
C h e c k s . T h e issuing o f checks in th is S ta te u p o n b a n k s w here
th e d ra w e r h a s n o t sufficient fu n d s on d ep o sit to p a y sam e is n ow a
c rim inal offense. I f a m o u n t u n d e r $ 2 0 .0 0 i t is a m isdem eanor, a n d
th e p e n a lty $ 1 0 0 .0 0 or ja il confinem ent one to th ir ty days, o r b o th
su ch fine a n d im p riso n m en t in d iscretion of th e C o u rt or J u ry . I f
th e check be fo r $ 2 0 .0 0 o r more," i t is a felony a n d confinem ent in
p e n ite n tia ry fo r n o t less th a n one o r m ore th a n tw o years, b u t if
th è d ra w e r o f th e check shall p a y sam e w ith in tw e n ty d a y s a fte r
receiving n o tic e o f th e dish o n o r o f th e check, h e shall n o t he prose­
c u te d ; or if th e prosecution h a s been begun, i t sh all be dism issed a t
c ost of th e m a k e r o f th e check.
C o n t r a c t s . A seal o r scroll Is In no Case n e ce ssa ry to give effect
to a deed o r o th e r w riting. A ll unsealed w ritin g s s ta n d u p o n th e
sam e fo o tin g w ith sealed w ritin g s, h a v in g th e sam e force a n d effect,
a n d th e sam e a ctio n s m a y be fo u n d e d u p o n th e m . T h e S ta te o r
c o u n ty seal, o r th e seal of a c o u rt, c o rp o ra tio n , o r n o ta ry to a n y
w ritin g h a s n o t, how ever, been dispensed w ith .
C o n v e y a n c e s . (See A cknow ledgm ents.)
C o r p o r a tio n s fo rm ed u n d e r th e g e n eral law s fo r tra n s a c tio n of
a n y law ful business. Special re g u la tio n s prescrib ed fo r foreign cor­
p o ra tio n s doing business in th e S ta te , a n d fo r b a n k in g , b u ild in g a n d
loan, tr u s t, in su ran ce, a n d ra ilro a d com panies. C um u lativ e v o tin g
prescrib ed . S tock h o ld ers in b a n k s, tr u s t com panies, g u a ra n ty com­
panies, in v e stm e n t com panies a n d in su ra n ce Companies a re liable
e q u ally a n d ra ta b ly , a n d n o t one fo r th e o th e r, fo r a ll c o n tra c ts a n d
lia b ilities of c o rp o ra tio n to e x te n t of th e a m o u n t of th e ir s to ck a t
p a r v a lu e in a d d itio n to a m o u n t of su ch sto c k ; b u t persons h o lding
sto ck , a s fiduciaries, a re n o t p e rso n ally liable, b u t e sta te s in th e ir
h a n d s a re in sam e m a n n e r a n d to sam e e x te n t a s o th e r stockholders,
a n d no tra n s fe r of s to c k o p e ra te s a s a release, of a n y such lia b ility ,
ex istin g a t tim e of tra n s fe r, p ro v id e d a c tio n to ènforce th e lia b ility
be com m enced w ith in tw o y e ars fro m tim e of th e tra n s fe r. A rticles
acknow ledged a n d reco rd ed like deeds in c o u n ty in w hich p rin c ip a l
place of business is s itu a te d , a n d a co p y th e re o f filed a n d re c o rd e d
in th e office of th e s e c re ta ry of S ta te . A fte r such filing a n d recording,
a n d p a y m e n t to S ta te of license ta x of o n e -te n th of 1 p e r c e n t on
its c a p ita l sto ck , c o rp o ra tio n is deem ed organized; b u t, before tra n s ­
a c tin g busin ess o th e r th a n w ith its ow n stockholders, a t le a s t 50
p e r c e n t of s to ck m u s t in good fa ith be subscribed, p a y ab le a t such
tim es a s b o a rd of d ire c to rs m a y require.
C o u r t s .’ 1 G eneral civil a n d c rim in a l ju risd ic tio n Is v e ste d in cir­
c u it c o u rts w hich h old te rm s in each c o u n ty a s p ro v id e d b y s ta tu te .

1426

B A N K I N G A N D C O M M E R C IA L L A W S — K E N T U C K Y

C r e d its . B y a n A c t a p p ro v e d M a rc h 14, 1914, i t is p ro v id e d
t h a t a p erso n w ho sh all k n o w in g ly in p erso n o r th ro u g h a n y agency
m a k e a n y false s ta te m e n t in w ritin g w ith in te n t i t shall b e relied
u p o n , re sp ec tin g h is fin an cial co n d itio n , o r m ean s o r a b ility to p a y ,
fo r th e p u rp o se o f p ro c u rin g d e liv e ry o f p e rso n al p ro p e rty , th e p a y ­
m e n t o f cash , th e m a k in g o f a lo a n o r c re d it, o r e x tension o f c re d it,
a n d p ro cu res u p o n fa ith th e re o f e ith e r o r a n y o f th e th in g s o r benefits
m e n tio n e d , sh all b e g u ilty o f a felo n y a n d u p o n conviction, sh all
b e confined in th e p e n ite n tia ry n o t less th a n one n o r m o re th a n five
y e a rs.
D a y s o f G r a c e . (See N o te s a n d B ills of E x ch an g e.)
D e p o s iti o n s m a y b e ta k e n In a ll e q u ita b le a ctio n s, a n d In o rd in a ry
•or c o m m o n la w a ctio n s, w h ere w itn e ss resid es tw e n ty m iles o r m ore
fro m p la c e w h ere c o u rt Is h e ld , o r is a b s e n t fro m S ta te , a n d In m a n y
o th e r cases e n u m e ra te d in th e s ta t u te w h ere th e w itn e ss is privileged.
D e p o sitio n s a re ta k e n e ith e r o n n o tic e to o p p o site p a r ty o r u p o n
w ritte n in te rro g a to rie s . T h e o rd in a ry m e th o d of 'ta k in g Is u p o n
n o tic e , b u t w h ere p lace o f ta k in g Is m o re th a n one d a y ’s tra v e l b y
o rd in a ry m e th o d s a n d m o re th a n o n e h u n d re d m iles fro m th e place
o f s ittin g of c o u rt, th e p a r ty receiv in g n o tic e m a y re q u ire d e p o sitio n
to b e ta k e n u p o n in te rro g a to rie s b y g iv in g n o tic e to t h a t effect to
a d v e rse p a r ty o r h is a tto r n e y u p o n sam e d a y , o r d a y follow ing one
u p o n w h ich first n o tic e w as serv ed . E x c e p t In d iv o rc e cases, depo­
sitio n s a r e re q u ire d to b e ta k e n u p o n in te rro g a to rie s . If a ll p a rtie s
•ag a in st w hom th e y a re to b e re a d h a v e b e en c o n stru c tiv e ly su m ­
m o n e d a n d h a v e n o t a p p e a re d , o r b e d e fe n d a n ts, o r u n d e r d is a b ility
o th e r th a n c o v e rtu re o r in fa n c y a n d c o v e rtu re c o m bined. I n sev eral
o th e r cases e n u m e ra te d in th e civil code, th e c o u rt m a y re q u ire
d e p o sitio n s to b e ta k e n u p o n in te rro g a to rie s , a n d th e y m a y a lw ay s
b e so ta k e n b y c o n se n t o f a ll p a rtie s . Officers a u th o riz e d to ta k e
d e p o sitio n s in th is S ta te : A n e x a m in e r a p p o in te d b y ju d g e of cir­
c u it c o u rt o f th is d is tric t, a ju d g e o r clerk of a c o u rt, ju s tic e of peace,
o r n o ta r y p u b lic. D e p o sitio n s m a y b e ta k e n o u t of th is S ta te before
a c o m m issio n er a p p o in te d b y g o v e rn o r o f th is S ta te o r before a
ju d g e o f a c o u rt, a ju s tic e of p eace, m a y o r o f c ity , n o ta ry public,
o r a n y o th e r p e rso n e m p o w ered b y a com m ission issued to him b y
co n se n t o f th e p a rtie s o r b y o rd e r o l c o u rt. I f d e p o sitio n is ta k e n
u p o n in te rro g a to rie s n e ith e r p a r ty is allo w ed to b e p re s e n t, e ith e r
•In p e rso n o r b y a g e n t a tto rn e y . T h e officer’s c ertific a te m u s t s ta te
w h en a n d w h ere th e d e p o sitio n w as ta k e n ; t h a t th e w itn ess w as
d u ly sw o rn b e fo re g iv in g it, a n d t h a t i t w as w ritte n a n d su b sc rib e d
b y h im in officer’s p resen ce, o r w as w ritte n b y officer in presence
of w itn e ss a n d re a d to a n d su b sc rib e d b y w itn e ss In presence of officer.
D e s c e n t a n d D i s t r i b u t i o n o f P r o p e r t y . T h e re a l e s ta te of a
p e rso n d y in g in te s ta te sh all d escen d In p a rc e n a ry to his k in d re d , m ale
a n d fem ale, in th e follow ing ordeY, v iz : ( 1 ) T o his ch ild re n a n d
th e ir d e sc e n d an ts; if n o n e, th e n ( 2 ) to h is f a th e r a n d m o th e r e q u ally
‘if b o th b e liv in g ; if e ith e r b e d e ad , th e w hole e s ta te descends to th e
one liv in g ; if b o th b e d e ad , th e n (3) to h is b ro th e rs a n d siste rs a n d
th e ir d e sc e n d a n ts; if n o n e, th e n (4) one m o ie ty of th e e s ta te sh all
p a ss to th e p a te rn a l a n d th e o th e r to th e m a te rn a l k in d re d , in th e
fo llo w in g o rd e r: (5) to th e g ra n d fa th e r a n d g ra n d m o th e r, o r w hich­
e v e r m a y b e liv in g ; if b o th a re d e ad , th e n ( 6 ) to u n c le s a n d a u n ts
a n d th e ir d e sc e n d a n ts; if n o n e, th e n (7) to g re a t g ra n d fa th e r a n d
g re a t g ra n d m o th e r, a n d so o n in o th e r cases w ith o u t end, passing
•to th e n e a re s t lin e a l A ncestors a n d th e ir d e sc e n d an ts. (8 ) I t th e re
is n o k in d re d to o n e o f th e p a re n ts, th e w hole s h all go to th e k in d re d
•of th e o th e r. If th e re is n e ith e r p a te rn a l n o r m a te rn a l k in d re d , th e
w hole s h all go to th e h u s b a n d o r w ife o f th e in te s ta te , o r if h e o r
•she b e d e ad , th e n to h is o r h e r k in d re d a s if h e o r she h a d su rv iv e d
th e in te s ta te a n d d ied e n title d to th e e sta te . W h e n a n y o r a ll of a
class first e n title d to ta k e a re d e ad , le a v in g d e sc e n d a n ts su ch descend•an ts sh all ta k e p e r stirp e s, t h a t is to say , b y re p re s e n ta tio n , th e sh ares
of th e ir re sp ec tiv e deceased p a re n ts. C o llaterals of th e h a lf blood
•shall In h e rit o n ly h a lf so m u c h a s th o se o f th e w hole b lood. I n m a k in g
t i t l e b y d e sc e n t, i t sh all b e n o b a r to a p a r ty t h a t a n y a n ce sto r,
■through w hom h e d eriv es h is d e sc e n t fro m th e in te s ta te , is o r h a s
b e en a n alien . B a s ta rd c a n in h e rit in th e d e sc e n d in g lin e o n ly from
t h e m o th e r a n d h e r k in d re d , a n d c a n tra n s m it in h e rita n c e in th e
a sc e n d in g lin e o n ly to th e m o th e r a n d h e r k in d re d .
D o w e r . (See H u sb a n d a n d W ife.)
E x e c u t i o n s m a y Issue u p o n Ju d g m en t a n y tim e u n til collection
of It is b a rre d b y lim ita tio n , b u t n o e x ec u tio n s h all issue on a n y
•Judgm ent, u n less o rd e re d b y th e c o u rt, u n til a f te r te n d a y s fro m
v e n d itio n . E x e c u tio n c o n stitu te s lie n on p ro p e rty of d e b to r fro m
tim e It reach es h a n d s o f p ro p e r officer. E x e c u tio n m a y be replevied
f o r th re e m o n th s, a n y tim e b efo re sale u n d e r sam e, b y d e fe n d a n t
■giving to th e officer a n o b lig a tio n (rep le v in b o n d ) p a y a b le to plaintiff,
w ith good s e c u rity fo r th e a m o u n t th e re o f, in te re s t a n d c osts. A
J u d g m en t to en fo rce a lien c a n n o t b e re p le v ie d . N o re p le v y allow ed
u p o n ju d g m e n t a g a in st a n y c o llectin g officer, a tto r n e y a t law , o r
•agent, fo r a d e lin q u e n cy o r d e fa u lt in e x e c u tin g o r fulfilling d u tie s
-of h is office o r place, o r fo r failin g to p a y o v e r m o n e y collected b y
•him in su ch c a p a c ity , n o r a g a in s t a p rin c ip a l b y h is s u re ty , n o r u p o n
•a d e b t d u e b y o b lig a tio n h a v in g th e fo rce of a Ju d g m en t, n o r u p o n
ju d g m e n t fo r specific p ro p e rty , o r fo r th e p ro p e rty , o r its v alu e.
I f la n d sold does n o t b rin g tw o -th ird s of a p p ra is e r’s v a lu a tio n , defend­
a n t a n d h is re p re s e n ta tiv e s h a v e rig h t to re d e em w ith in a y e a r from
th e d a y of sale, b y p a y in g p u rc h a se r o r h is re p re s e n ta tiv e s original
p u rc h a se m o n e y a n d te n p e r c e n tu m p e r a n n u m in te re s t.
E x e m p tio n s . T h e follow ing p ro p e rty o f p ersons w ith a fa m ily
re sid e n t in th is C o m m o n w ealth , s h all b e e x em p t fro m e xecution,
a tta c h m e n t, d istre ss, o r fee bill, n a m e ly : T w o w o rk b e asts, o r one
w ork b e a s t a n d o n e y o k e o f o x en ; tw o plow s a n d g e ar; o ne w agon
•and s e t o f gear, o r c a r t o r d ra y ; tw o axes, th re e hoes, one spade, one
sh o v el; tw o cow s a n d calv es; b ed s, b e d d in g a n d fu rn itu re sufficient
f o r fa m ily u se; one loom a n d sp in n in g w heel a n d p a ir o f c ard s; a ll
th e s p u n y a m a n d m a n u fa c tu re d c lo th m a n u fa c tu re d b y th e fa m ily
n ecessary fo r fam ily u se; c a rp e tin g fo r all fa m ily room s in u se; one
ta b le ; a ll boo k s n o t to exceed sev en ty -fiv e d o lla rs in v a lu e ; tw o
■saddles a n d th e ir a p p en d a g e s; tw o b rid les; six c h airs; o r so m a n y
a s sh all n o t exceed te n d o lla rs in v a lu e ; o n e c ra d le ; all th e p o u ltry
■on h a n d ; te n h e a d o f sheep, n o t to exceed tw e n ty -fiv e dollars in v a lu e ;
-all w earin g a p p a re l; sufficient p rovisions, in c lu d in g b re a d stu ff a n d
a n im a l fo o d to s u sta in th e fa m ily fo r o n e y e a r; p ro v e n d e r su ita b le
fo r liv e sto ck , if th e re b e a n y su ch sto ck , n o t to exceed se v e n ty d o lla rs
in v a lu e ; a n d if su ch p ro v e n d e r b e n o t o n h a n d , su ch o th e r p ro p e rty
a s sh all n o t exceed su ch su m in v a lu e ; a ll w a sh ing a p p a ra tu s, n o t to
exceed fifty d o llars in v a lu e ; o n e sew ing m ach ine, a n d all fa m ily
p o rtr a its a n d p ic tu re s; o n e cooking sto v e a n d ap pendages, a n d o th e r
•cooking u te n sils n o t to exceed in v a lu e tw e n ty -fiv e dollars; n in e ty
p e r c e n tu m o f th e sa la ry , w ages, o r in co m e e arn ed b y labor, o f e v ery
p erso n e arn in g a sala ry , w ages, o r incom e o f sev enty-five dollars o r
'dess p e r m o n th , p ro v id e d t h a t th e lien c re a te d b y service o f g a rn ish ­
m e n t, ex ecu tio n , o r a tta c h m e n t, sh all o n ly affect te n p e r c e n tu m
o f su c h sa la ry , w ages, o r incom e, e a rn e d a t th e tim e o f service o f
¿process; o f th e sala ry , w ages, o r in co m e e a rn e d b y lab o r, o f e v ery
p erso n e arn in g a sa la ry , w ages o r in co m e in excess o f sev en ty -fiv e
d o llars p e r m o n th , six ty -sev en a n d o n e-h alf d o llars p e r m o n th a n d
n o m o re sh all b e ex em p t.
T ools o f a m ech an ic, n o t exceeding one h u n d re d dollars in v a lu e ;
■libraries o f m in iste rs o f th e G ospel, professional lib raries o f law yers,
p rofessional lib raries a n d in s tru m e n ts o f p h y sician s a n d surgeons, n o t
to e x c e e d ’in v a lu e five h u n d re d d ollars. I n a d d itio n to perso n al
‘p ro p e rty th e re is fo r a c tu a l b o n a fide h o u sek eepers w ith a fa m ily


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

re sid e n t in th is C om m onw ealth a h o m e stea d e xem ption o f so m uch
la n d in c lu d in g th e dw elling h ouse a n d a p p u rte n a n c e s ow ned b y
d e b to r as sh all n o t exceed in v a lu e one th o u s a n d dollars. T h is
does n o t e x te n d to a m o rtg ag e o n o r p u rc h a se m o n ey d u e fo r th e land
o r f o r d e b ts o r lia b ility existing p rio r to th e p u rc h a se o f th e la n d , or
o f th e erectio n o f th e im p ro v em e n ts th e re o n .
P e rso n a l p ro p e rty o r m o n e y o n h a n d o r in b a n k to th e a m o u n t of
$750.00 sh all be e x em p t fro m d is trib u tio n a n d sale a n d sh all be set
a p a r t b y th e a p p ra ise rs o f th e e s ta te o f a n in te s ta te to his w idow an d
children, or, if n o w idow , to h is in fa n t ch ild re n o r c hild su rv iv in g him .
T h e ap p ra ise rs s h all s ta te in th e ir a p p ra ise m e n t th e m o n e y o r th e
a rtic le s a n d v a lu e o f e ac h s e t a p a r t b y th e m to th e w idow , o r in fa n ts ,
se p a ra te ly to th e a rtic le s a p p ra ise d fo r sale, b u t if th e w idow b e p re sen t
a t th e tim e o f th e a p p ra ise m e n t, o r a n y one a u th o riz e d b y h e r in
w riting, sh e m a y m a k e h e r selection o u t o f th e p ro p e rty a p p ra ise d to
th e a m o u n t o f said $750.00 a n d said a p p ra ise rs sh all so re p o rt. T h e
provisions o f th is sectio n sh all a p p ly to cases w here th e h u s b a n d dies
te s ta te , a n d th e w idow renounces th e provisions o f th e w ill in th e
tim e prescrib ed b y law .
H o lid a y s . T h e 1st d a y of J a n u a ry , th e 22d d a y of F e b ru a ry , th e
3 0 th d a y of M ay, th e 4 th d a y of J u ly , th e first M onday in S e p te m b e r
(L ab o r D a y ), th e 1 2 th d a y o f O ctober (C olum bus D a y ), th e 2 5 th
d a y o f D ecem b er o f each y e ar, a n d all d a y s a p p o in te d b y th e p re sid en t
o f th e U n ite d S ta te s, o r b y th e g o v ern o r o f th is S ta te , a s d a y s o f fa stin g
a n d th a n k sg iv in g a re d eclared holid ay s, a n d sh all b e tre a te d as S u n ­
d a y . I f a n y o f th o se d a y s n a m e d a s h o lid a y s sh all occur o n S u n d a y ,
th e n e x t d a y th e re a fte r sh all b e o b serv ed a s a h o lid ay .
H u s b a n d a n d W ife . B y a n a c t w hich to o k effect J u n e 1 2 ,1 8 9 4 ,
th e follow ing im p o r ta n t changes w ere m a d e in th e com m on la w of
c o v e rtu re w hich th e re to fo re p re v a ile d in K e n tu c k y . M arriage gives
to th e h u s b a n d d u rin g th e life of th e w ife n o in te re s t in a n y of
th e w ife’s p ro p e rty . She h a s fu ll po w er to c o n tra c t a n d to bind
herself a n d h e r p ro p e rty , e x c e p t t h a t she c a n n o t b in d h erself to
an sw er fo r th e d e b t, d e fa u lt, m isdoing of a n o th e r, e x c e p t a s to p ro p e rty
s e t a p a r t fo r t h a t p u rp o se b y m o rtg ag e . S he m a y sell a n d dispose
of perso n al p ro p e rty as if u n m a rrie d , b u t m a y n o t sell o r convey
real e s ta te unless h e r h u s b a n d u n ite s in th e c o n tra c t, o r conveyance,
unless em pow ered to do so b y decree of c o u rt in case of in san ity ,
co n v ictio n of felony, o r a b a n d o n m e n t b y th e h u s b a n d . A fte r th e
d e a th of e ith e r h u s b a n d o r w ife th e su rv iv o r sh all h a v e a life e s ta te
in o n e -th ird of a ll th e re a lty of w hich th e d e ce d e n t w as seized in fee
sim ple d u rin g th e c o v e rtu re unless su ch rig h t sh all h a v e been for­
fe ite d o r relin q u ish ed . Such su rv iv o r h a s also o n e-h alf th e p e rso n alty
of th e d e c e d e n t le ft a f te r th e p a y m e n t of d e b ts. A b a n d o n m e n t a n d
liv in g In a d u lte ry b y e ith e r p a rty , o r div o rce w orks a fo rfe itu re of
th e se rig h ts.
I n t e r e s t . T h e law fu l r a te of in te re s t is 6 p e r c en tu m p e r an n u m ,
a n d c o n tra c ts fo r a g re a te r r a te a re void a s to th e excess of in te re s t.
J u d g m e n t s . A ju d g m e n t does n o t c o n s titu te a lie n o n p ro p e rty
in th is S ta te . All ju d g m e n ts b e a r in te re s t fro m th e ir d a te s. (See
E x e c u tio n s a n d L im itatio n s.)
L i m i t a t i o n s . T h e follow ing a re th e p eriods w ith in w hich actio n s
m u s t b e b ro u g h t, th e tim e com m encing to ru n from th e a cc ru a l of
th e cause of a ctio n . F ifte e n y e a rs: A c tio n s to re c o v er re a l p ro p e rty ;
a ctio n s u p o n ju d g m e n ts a n d w ritte n c o n tra c ts, e x c e p t n eg o tia b le
in s tru m e n ts . S even y e a rs: A c tio n s b y sen io r p a te n te e s a g a in st
ju n io r p a te n te e s, w ho h a v e h e ld possession fo r seven y e ars. F iv e
y e a rs: A ctions u p o n v e rb a l c o n tra c ts: u p o n a lia b ility c re a te d by
s ta tu te ; a ctio n s fo r tre sp a ss to re a l o r p e rso n al p ro p e rty o r fo r d a m ­
ages fo r w ith h o ld in g sam e; fo r th e specific re c o v ery of p e rso n al p ro p ­
e r ty ; a ctio n s u p o n n e g o tia b le in s tru m e n ts ; a ctio n s u p o n a cc o u n ts
b e tw ee n m e rc h a n ts, a n d a c tio n s fo r relief fro m fr a u d o r m ista k e.
Tw o y e a rs: A ctions u p o n m e rc h a n t’s a c c o u n ts fo r goods sold.
O ne y e ar; A ctions fo r in ju ry to p erson or c h a ra c te r a n d fo r b re a c h of
prom ise of m arriage.
N o te s a n d B ills o f E x c h a n g e . A n a c t re la tin g to n e g o tia b le
In stru m e n ts b ecam e a la w J u n e 13, 1904. S e c tio n 1 d eclares t h a t a n
In s tru m e n t to be n eg o tia b le m u s t conform to th e follow ing re q u ire ­
m e n ts. (1) I t m u s t be in w ritin g a n d sig n ed b y th e m a k e r o r
d ra w e r. (2 ) M ust c o n ta in a n u n c o n d itio n a l pro m ise o r o rd e r to
p a y a su m c e rta in In m o n ey . (3) M ust be p a y a b le o n d e m a n d , o r
a t a fixed o r d e te rm in a b le fu tu r e tim e . (4) M u st b e p a y a b le to th e
o rd e r of a specified p e rso n o r to b e a re r. (5) W h ere th e in s tru m e n t
is a d d re sse d to a draw ee, h e m u s t be n a m e d o r o th e rw ise in d ic a te d
th e re in w ith reaso n ab le c e rta in ty . D ay s of grace a re abolished.
T h e sig n a tu re of a n y p a r ty m a y b e m a d e b y a n a g e n t d u ly a u th o riz e d
In w ritin g . E v e ry n e g o tia b le In s tru m e n t Is p a y a b le a t th e tim e fixed
th e re in ; w hen th e d a y of m a tu r ity fa lls u p o n S u n d a y , o r a ho lid ay ,
th e In s tru m e n t is p a y a b le on th e n e x t succeeding busin ess d a y .
P o w e r s o f A t t o r n e y . P ow ers of a tto rn e y to co n v ey re a l o r p e r­
so n al p ro p e rty m a y b e acknow ledged, p ro v e d a n d reco rd ed In th e
p ro p e r office in th e m a n n e r p re scrib ed fo r reco rd in g conveyances. If
th e con v ey an ce m ad e u n d e r a pow er, is re q u ire d b y la w to be recorded
o r lod g ed fo r record to m a k e th e sam e v a lid a g a in s t c re d ito rs a n d p u r­
chasers, th e n th e p ow er m u s t b e lod g ed o r re c o rd e d in lik e m a n n e r.
P r o te s t.
W here a n y n e g o tia b le in s tru m e n t h a s b e en d ishonored
It m a y b e p ro te s te d fo r n o n -a c ce p ta n c e o r n o n -p a y m e n t a s th e case
m a y b e ; b u t p ro te s t Is n o t re q u ire d , e x c e p t in th e case of foreign bills
of ex ch a n g e . I t is th e sa fe r p ra c tic e to p ro te s t in a ll cases.
T a x a t i o n . T axes d u e th e S ta te b y b a n k s a n d tr u s t com panies a re
p a y a b le d ire c tly Into th e S ta te tre a s u r y on o r before th e first d a y of
J u ly succeeding re p o rts b y th e ir chief officers re q u ire d to be m a d e to
a u d ito r of pub lic a cc o u n ts, a n d ta x e s to co u n ties, cities, to w n s a n d
d is tric ts a re p a id a t th e tim e fixed b y la w fo r p a y m e n t of lik e ta x e s.
W ills . A n y p erso n of so u n d m in d a n d o v e r tw e n ty -o n e y e a rs of
ag e m a y m a k e a w ill. W ills m u s t b e in w ritin g w ith th e n a m e of
th e te s t a to r su b scrib ed th e re to e ith e r b y him self o r b y som e o th e r
p erso n in his p resence a n d b y h is d ire c tio n . I f n o t w holly w ritte n
b y th e te s ta to r th e s u b sc rip tio n m u s t be m a d e o r th e w ill acknow ledged
b y th e te s ta to r in th e presence of tw o w itnesses, w ho s h all su b sc rib e
th e ir n a m e s in th e presence of th e te s ta to r . T h e w ill of a person
d om iciled o u t of th is S ta te is v a lid a s to p e rs o n a lty , if e x e c u te d acco rd ­
in g to th e la w of th e dom icile; b u t to be v a lid a s to la n d s, i t m u s t be
e x e c u te d a s re q u ire d b y th e la w of th is S ta te . T h e c o u n ty c o u rt
has exclusive original ju risd ic tio n o v e r th e p ro b a te of w ills.

B A N K IN G A N D

C O M M E R C IA L L A W S — L O U I S I A N A

S Y N O P S IS OF

T H E L A W S O F L O U IS IA N A
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
R ev ise d b y M essrs. M e r r i c k , G e n s l e r & S c h w a r z ,
A tto rn e y s a t L aw , N ew O rlean s.
(See C ard in A tto rn e y s ’ L ist.)
A c c o u n ts . (See A cknow ledgm ents.)
A c k n o w l e d g m e n t s o f d e ed s e x ec u te d w ith in th e S ta te m a y be
m ad e befo re a ju d g e , n o ta ry p u b lic, p a ris h re c o rd e r o r h is d e p u ty . In
th e p resen ce o f tw o w itnesses. T h ese w itn esses m u s t be o v e r fo u rte e n
y e a rs of ag e. I n o th e r S ta te s, befo re a com m issioner of L o u isian a,
o r a n y officer a u th o riz e d to ta k e d ep o sitio n s in th e S ta te w h ere he
resides, b u t th e official c h a r a c te r o f su ch officer m u s t b e p ro p e rly
verified. A L o u isia n a com m issioner m a y c e rtify to th e official posi­
tio n of a n y p u b lic officer in th e S ta te fo r w hich h e is a p p o in te d . A
•deed to b e a u th e n tic a n d to b e ad m issib le in a c o u rt of lu s tic e w ith ­
o u t o th e r p ro o f of s ig n atu re , m u s t b e ack n o w led g ed a n d signed before
a n o ta ry o r com m issioner of d eeds. I n o th e r s ta te s a n y o a th o r
a ck n o w le d g m e n t m a d e befo re a n o ta ry p u b lic, d u ly a p p o in te d in su ch
states, w h en certified u n d e r th e h a n d a n d official seal of su ch n o ta ry ,
sh all h a v e th e sam e fo rce a n d effect w ith o u t fu r th e r p ro o f of th e
sig n atu re , seal a n d official c h a ra c te r of su ch n o ta ry , a s if ta k e n o r
m ade b y o r b efo re a L o u isia n a co m m issio n er resid in g in su ch S ta te .
A ct 140 of 1896. I n fo reig n c o u n trie s e v ery d eed, co n v ey an ce, m o rt­
gage, sale, e tc ., m a d e o r ta k e n b efo re a n y a m b a ssad o r, m in iste r,
charge d ’affaires, s e c re ta ry of le g a tio n , co nsul-general, consul, viceconsul, o r co m m ercial a g en t, a n d e v e ry ack n o w led g m en t, a tte s ta tio n ,
or a u th e n tic a tio n o f a n y of said in s tru m e n ts , o a th s, e tc ., m a d e b y
a n y of said officers u n d e r th e ir official seals a n d sig n a tu re s shall h a v e
th e full force a n d effect o f a n a u th e n tic a c t e x ec u te d in th is S ta te .
No w itnesses n ecessary . P a r ty a p p e a rin g b efo re a n y of said officers
need n o t b e a re s id e n t o f th e p la c e w h ere sa id officer is lo c a ted .
N o ta ria l copies of o rig in al w h en d e p o sited in th is s ta te in a n o ta ry ’s
office h a v e fu ll force a n d effect of a u th e n tic copies of a c ts e x ec u te d
in th is S ta te . [A ct 164 o f 1898.]
A c tio n s . C om m enced b y p e titio n s e ttin g fo rth cau se o f a ctio n ,
signed b y p la in tiff o r h is a tto rn e y a n d d u ly sw o rn to . P la in tiff m u s t
give re s id e n t se c u rity fo r costs o r m a k e d e p o sit to co v er sam e if
dem anded . (See A c t 300 o f 1914 re g u la tin g p lead in g s a n d practice.)
A d m i n i s t r a t i o n of E s t a t e s b y e x ec u to rs, a d m in is tra to rs , or
tu to rs w ho a re ex-officio a d m in is tra to rs — also b y d a tiv e ex ec u to rs—
w here th e re is n o h e ir p re s e n t o r a g e n t of h eir, p u b lic a d m in is tra to r
ta k e s c h arg e. A n o n -re sid e n t e x e c u to r of a w ill m u s t in all cases give
b o nd; a re s id e n t does n o t u n less re a u ire d b y c re d ito rs. A d m in istra ­
to rs a n d ex ec u to rs o f o th e r s ta te s 'm u s t o p en succession of d eceased
in th e o o u rts o f th is S ta te , a n d b e reoognized a s su ch h e re b efo re th e y
«an su e o r b e su ed o r tra n s fe r p ro p e rty in th is S ta te . S to c k In lo cal
co rp o ra tio n s m a y b e tra n s fe rre d b y n o n -resid e n t, e x ec u to rs, e tc .,
w ith o u t th e n e c e s sity of secu rin g a n o rd e r fro m th e lo cal c o u rt, b u t
no tra n s fe r c a n b e m a d e u n til th e In h e rita n c e ta x is a d ju ste d .
A f f id a v its . (See A ck n o w led g m en ts.)
A lie n s . T h e re is no la w e x clu d in g th e m fro m b u y in g o r h o ld in g
la n d s. T h e y a re o n ly ex clu d ed fro m v o tin g .
Arbitration. A g re e m en ts to s u b m it to a rb itr a tio n recognized by
taw . A rb itra to rs m u s t b e sw orn, o th erw ise decision is n o t b in d in g.
S ta te b o a rd o f a rb itr a tio n of la b o r tro u b le s e sta b lish e d . [A ct 139
of 1894.]
A r r e s t fo r d e b t m a y b e m a d e on a ffid a v it t h a t th e d e b t is re a lly
due, a n d t h a t p e titio n e r v e rily believ es t h a t d e b to r is a b o u t to rem o v e
from th e S ta te p e rm a n e n tly , w ith o u t le a v in g in it sufficient p ro p e rty
to s a tisfy h is d e m a n d ; a n d t h a t h e does n o t ta k e h is o a th w ith in te n ­
tio n of v e x in g d e b to r, b u t o n ly in o rd e r to secu re h is d e m a n d . D e b to r
m ay b e disch arg ed b y d isp ro v in g fa c ts; b y giv in g b o n d , b y m a k in g
su rre n d e r, b y d e liv e rin g to sheriff p ro p e rty sufficient to satisfy
d em an d . A rre s t of th e d e b to r o n ly secu res h is presen ce to a n sw e r
th e s u it; h e c a n n o t b e h e ld fo r th e p a y m e n t o f th e d e b t. M in o rs,
In te rd icte d p erso n a n d w om en n o t s u b je c t to a rre s t fo r d e b t.

A ssignm ents and Insolvency.
by National Bankruptcy act.

State insolvent laws superseded

A t t a c h m e n t . W rits of a tta c h m e n t Issue on a p p lic a tio n of cred i­
to r, u n d e r o a th , w h en th e d e b to r resides o u t of th e S ta te ; w h en h e
conceals h im se lf to a v o id b e in g c ite d ; w h en h e h a s m o rtg ag e d , assig n ed
or disposed of, o r Is a b o u t to m o rtg ag e , assign, o r d ispose of his
p ro p e rty , rig h ts, o r cred its, o r som e p a r t th e re o f, w ith in te n t to
d efrau d his c re d ito rs o r give a n u n fa ir p referen ce to som e of th e m ;
an d w hen h e h a s C onverted, o r is a b o u t to c o n v ert, h is p ro p e rty in to
m oney o r ev id en ces of d e b t w ith in te n t to p lace i t b e y o n d th e re a ch
of h is cre d ito rs, or, if d e b t n o t d u e, is a b o u t to rem o v e h is p ro p e rty
o u t of th e S ta te . C re d ito r m u s t fu rn ish b o n d e q u al to th e a m o u n t
claim ed to b e d u e, w ith a t le a s t o n e so lv e n t s u re ty , resid in g w ith in
liie ju risd ic tio n of th e c o u rt, c o n d itio n ed fo r p a y m e n t to a n y p a r ty
in ju red b y Issuance o f w rit of a ll d a m a g es su sta in e d b y h im in case
it is decid ed t h a t th e a tta c h m e n t w as w ro n g fu lly o b ta in e d . (A ct
No. 7, 1888.) G a rn ish m en t m a y b e h a d a s a n accesso ry e ith e r to
a w rit of a tta c h m e n t o r fieri facias.
B a n k s . B an k in g c o rp o ra tio n s o rg an ized u n d e r b a n k in g law s
a d o p te d in 1855, a m e n d ed in 1888, in 1892, a n d in 1902. S avings,
d e p o sit, a n d tr u s t co m p an ies p ro v id e d fo r b y A c t 150 of y e a r 1888,
am en d ed b y A c t 95 of 1892, w h ich is n o w a m e n d ed b y A c t 189 of
1902. T h e n u m b e r of p erso n s o rg a n iz in g m u s t ex ceed five. No
special a c t of in c o rp o ra tio n c an b e p assed . B y A c t 189 of 1902,
th e g e n eral b a n k in g a c t of 1855 a n d th e a m e n d a ry a c ts o f 1888 a n d
of 1892 a re a m e n d e d a s follow s: 1. P e rio d o f tim e m u s t b e fixed
in a c t n o t to exceed n in e ty -n in e y e ars.
2.
B a n k s c an n o t h o ld re a l
e s ta te fo r lo n g e r tim e th a n five y e ars, e x c e p t su ch a s n e ce ssa ry fo r
th e tra n s a c tio n o f th e ir bu sin ess, o r e x c e p t t h a t h e ld a s a g e n t o r
tru s te e . 3. A ll m a n a g ers a n d d ire c to rs sh all b e citizen s of L o u isia n a .
4. S afe d e p o sits a n d tr u s t b a n k s w ith o u t p o w er to issu e b a n k n o te s,
m a y b e o rg an ized u n d e r th is la w w ith a c a p ita l of $50,000 o r m o re,
«f w hich c a p ita l a t le a s t $ 10,0 0 0 sh all be p a id u p befo re co m m en cin g
business. I n in c o rp o ra te d to w n s w ith less th a n 2 0 ,0 0 0 in h a b ita n ts
m u s t h a v e cash c a p ita l of n o t less th a n $30,000, w hich m u s t b e p a id
u p before c a n com m ence b u sin ess. I t m a y b e m a d e a receiv er,
tru s te e , assig n ee o r sy n d ic, a n d e x e c u te tr u s ts o f e v ery d e sc rip tio n .
M oney o r o th e r v a lu a b le s d e p o sited b y m a rrie d w o m en o r m in o rs
m a y b e d ra w n o u t w ith o u t th e a u th o rity of th e ir h u s b a n d s o r tu to rs ,
u n d e r A c t 45 of 1902, b a n k s o rg an ized to do a sav in g s, safe d e p o sit


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

1427

a n d t r u s t b a n k in g business m u s t b e com posed of m o re th a n five
persons, m a y be org an ized fo r n o t lo n g e r th a n n in e ty -n in e y e ars,
m a y n o t h o ld re a l e s ta te fo r lo n g e r p e rio d th a n te n y e ars, e x ce p t
su ch a s is h e ld a s a g e n t o r tru s te e , o r n e ce ssa ry fo r tra n s a c tio n of
th e ir b u siness; m a y a c c e p t a n d ex ec u te tru s ts o r agencies of all
d escrip tio n s, m a y b e a p p o in te d b y a n y p erson o r b y c o u rt e x ec u to r,
a d m in is tra to r, syndic, receiver, c u ra to r, tu to r , tru s te e o r assignee.
C a p ita l sto c k considered a s se c u rity fo r fa ith fu l perform ance of d u ty ,
th o u g h c o u rt m a y re q u ire o th e r sec u rity , a n d m a y re q u ire th e s ta te
e x a m in e r of b a n k s to in v e stig a te th e affairs a n d m a n a g em e n t of
th e b a n k . S uch b a n k s can n o t issue n o te s a n d m u s t h a v e a c a p ita l
n o t less th a n $100,000, w hich m u s t be p a id u p in cash. (See A c t 121
of 1910, a m e n d in g A c t 45 of 1902 a s to c a p ita l re q u ire d in cities of
less th a n 30,000.) (See also A c t 179 of 1902. a n d a m e n d m e n t th e re o f.
A c t 140 o f 1906 a n d a m e n d m e n t th e re o f A c t 152 o f 1910 a n d a m e n d ­
m e n t th e re o f A c t 96 o f 1912.) A c t 238 o f 1910, am en d in g A c t 45
o f 1902, p rovides fo r branches. A c t 112 o f 1910 c re ates a S ta te
B an k in g D e p a rtm e n t h a v in g supervision over all s ta te b a n k s. A m end­
ed b y A ct 48 o f 1912.
C h a t t e l M o r tg a g e s n o t legal in th is S ta te except a s to lu m b e r,
logs, live stock, vehicles of a h kinds, all k in d s o f m achinery, all w e ll
casing, line pipes, d rilling rigs a n d ta n k s.
T hese m a y b e m o rtg ag e d
b u t th e m o rtg ag e on su ch p ro p e rties n o t legal unless i t is o w ned b y
th e m o rtg ag o r in excess o f m ovable p ro p e rty g ra n te d h im a n d e x ­
e m p te d fro m seizure u n d e r A c t 244 of th e C o n stitu tio n o f 1898.
(See A c t 65 of 1912, am en d ed b y A ct 155 o f 1914.)
C o lla te r a l s , m u s t b e delivered to be effelctual,
A c t 9. o f 1914
m akes i t a felony fo r a c u sto m er o f b a n k to w rongfully dispose o f
collateral se c u rity pledged to b a n k . U niform B ills o f L a d in g loss
o b tains. (A ct 94 o f 1912.)
C o n v e y a n c e s . A ll ag re em en ts affecting real p ro p e rty m u s t b e
in w riting, a n d tra n s fe rs a n d m ortgages, e tc ., m u s t be reco rd ed in
th e pla c e w here th e p ro p e rty is s itu a te d to affect th e rig h ts of th ir d
persons. D eeds a re m a d e u n d e r p riv a te sig n a tu re o r b y a c t p a sse d
before a n o ta ry p u b lic in th e presence of tw o w itnesses. B o th v e n d o r
a n d vendee sign, th o u g h sig n a tu re of v en d ee Is n o t e ssential, a s a n y
a c t o f acc e p ta n ce w ill answ er. T h e n o ta ry in P a ris h o f O rleans p re ­
serves th e originals o f deeds pa sse d before h im a n d certified copies
given b y him a re received a s evidence in th e c o u rts. E v e ry n o ta ria l
deed sh o u ld c o n ta in ( 1 ) d a te o f a c t a n d place w here i t w as passed, (2 )
n am es a n d su rn a m es a n d q u a litie s o f c o n tra c tin g p a rtie s, (3 ) descrip tio n
o f th e p ro p e rty , etc., (4) p ric e o f tra n s fe r a n d te rm s a n d conditions.
(5) T h e m a rita l s ta tu s o f all p a rtie s m u s t b e given. W h en a m a rried
w om an executes a deed she m u s t b e a u th o riz e d b y h e r h u sb an d . T h e
h u s b a n d a c ts alone in th e sale o f c o m m u n ity p ro p e rty ; th e sig n a tu re
o f th e w ife being u nnecessary.
C o r p o r a tio n s . A n y n u m b e r of persons, exceeding six, m a y form
them selves in to c o rp o ra tio n s fo r lite ra ry , scientific, religious, a n d
c h a rita b le p u rp o se s; fo r w orks of p u b lic im p ro v em e n t, a n d gen erally
a ll w orks of p u b lic u tility a n d a d v a n ta g e ; a n d a n y n u m b e r of p ersons,
n o t less th a n th re e , m a y fo rm th em selv es in to a c o rp o ra tio n fo r th e
p u rp o se of c arry in g on m ech an ical, m ining, o r m a n u fa c tu rin g business,
e x c e p t d istillin g o r m a n u fa c tu rin g in to x ic a tin g liq u o rs, w ith a c a p ita l
n o t less th a n $5,000 o r m o re th a n $1,000,000. A n y n u m b e r of p e r­
sons, n o t less th a n th re e , m a y fo rm them selv es in to a c o rp o ra tio n on
c om plying w ith th e general c o rp o ra tio n law s, fo r th e p u rp o se of c a rry ­
in g on a n y la w fu l business o r e n te rp rise n o t oth erw ise specially p ro ­
v id e d for, e x c e p t sto ck -jo b b in g . T h e le g islatu re c a n n o t pass a
special a c t c onferring c o rp o ra te pow ers. C o rp o ra tio n c o m m ittin g a
tre sp ass o r da m a g e m a y be su ed a t place w here i t o ccu rred . [A ct
22 of 1894.] A ll c o rp o ra tio n s h e re a fte r o rganized m u s t h a v e th e ir
c h a rte rs, e tc ., reco rd ed in th e office of th e s e c re ta ry of s ta te . [A ct
59 of 1898.]
(See a c t 154 of 1902 fo r fo rm a tio n of c o rp o ra tio n s fo r
w orks of p u b lic im p ro v em e n t.)
A c t 120 o f1902 p ro v id e s fo r o rg a n ­
iz a tio n , e tc . of local a n d fo reig n b u ild in g a n d lo a n o r h o m e stea d
asso ciatio n s. T h re e o r m o re p erso n s m a y fo rm a c o rp o ra tio n to
c a rry on a n y b u sin ess specified in c h a r te r t h a t w o uld b e law ful fo r
a n y in d iv id u a l to c a rry on. M ay c a rry o n a n y n a m e d busin ess or
d ifferen t b ra n c h e s of business, w h e th e r re la te d o r n o t. M ust h av e
c a p ita l of n o t less th a n $3,000.
[A ct 78 of 1904.]
N o c o rp o ra tio n
c a n d eclare d iv id e n d s o u t of its c a p ita l sto c k , u n d e r p e n a lty of fo r­
fe itu re o f , i t s c h a rte r. M eetings of c o rp o ra tio n s m u s t be h e ld a t
dom icile (A ct 63 of 1910).
F o reig n C orporations m a y be licensed a n d ta x e d b y a m ode differ­
e n t fro m t h a t p ro v id e d fo r hom e c o rp o ra tio n s. No do m e stic o r for­
eign c o rp o ra tio n s s h all do a n y business in th is S ta te w ith o u t h a v in g
one o r m o re kn o w n places of b usiness a n d a n a u th o riz e d a g e n t o r
a g en ts in th e S ta te u p o n w hom process m a y b e serv ed . A ll co rp o ra ­
tio n s (ex cep t m e rc a n tile corporations) dom iciled o u t of th e S ta te a n d
d o in g business in th e S ta te in d e fa u lt of filing w ith th e se c re ta ry of
s ta te a d e c la ra tio n of th e place of its lo c a lity o r dom icile to g e th e r w ith
th e n a m e of its a g e n t in th e S ta te u p o n w hom service of process m a y
be m ade, m a y b e sued u p o n a n y cause of a c tio n in a n y p a rish w here
th e rig h t of a c tio n arises.
F o reig n co rp o ra tio n s m u s t file in office of s e c re ta ry of s ta te a w ritte n
d e c la ra tio n s e ttin g fo rth a n d c o n ta in in g th e pla c e o r lo c a lity of its
dom icile, th e places In th e S ta te w here i t is d o in g business, a n d th e
n a m e of its a g e n t o r o th e r officer in th is S ta te u p o n w hom process m a y
b e serv ed . (A ct 54 o f 1904 am en d ed b y A c t 284 o f 1908. A c t 284
o f 1908 a m e n d ed b y A c t 243 of 1912. See A c t 194 o f 1912.)
A c t 267 o f 1914 r e l a t i n g t o c o r p o r a t i o n s r e p e a l e d s e v e ra l
p r e v io u s a c t s a n d u n d e r t a k e s t o e m b o d y i n o n e a c t a ll e s s e n ­
tia l d e ta ils w ith re s p e c t to th e o rg a n iz a tio n , p o w e r a n d d u tie s
o f t r a d i n g c o r p o r a tio n s , f o r e ig n a n d d o m e s t ic . (As t o n o n ­
t r a d i n g c o r p o r a t i o n s se e A c t 259 o f 1914.)
C o u r ts . T erm s a n d Ju risd ic tio n . I n p a rish es o th e r th a n O rleans :
J u s tic e s ’ c o u rts— exclusive ju risd ic tio n u p to $50, a n d c o n c u rre n t
w ith th e d fc tric t co u rts, b etw een $50 a n d $ 1 0 0 . 2 . D is tric t c o u rts—
c o n c u rre n t w ith ju s tic e s ’ c o u rts, b e tw ee n $50 a n d $100; exclusive fo r
a ll civil m a tte rs o v e r $ 1 0 0 , a n d in a ll p ro b a te m a tte rs a n d a p p e lla te
ju risd ic tio n in all civil m a tte rs in ju s tic e s ’ c o u rts. I n O rleans p a rish :
1. C ity c o u rts— exclusive ju risd ic tio n u p to $100. 2. Civil d is tric t
c o u rts— exclusive o v er $100. J u stic e s a n d c ity c o u rts open a t a ll
tim es. I n p a rish es o th e r th a n O rleans, d is tric t c o u rts sh all hold con­
tin u o u s sessions d u rin g te n m o n th s of th e y e a r. I n p a rish of O rleans,
civil d is tric t c o u rt sits fro m O c to b er 1 5 th to e n d of J u n e , b u t sh all
re m a in op en o n a ll legal d a y s d u rin g th e w hole y e a r fo r g ra n tin g in te r­
lo c u to ry orders, issuing w rits, tria ls of rules to q u a sh sam e, try in g
proceedings in s titu te d , o r o n a p p e a l th e re in b y a la n d lo rd fo r th e
possession of leased p ro p e rty , p a rtitio n proceedings, a n d fo r su ch
special p ro b a te a n d inso lv en cy business, a s th e c o u rt en b a n c m a y b y
ru le de te rm in e . O n a ll a m o u n ts u p to $2,000, inclusive, a n a p p e a l
m a y b e .ta k e n to th e c o u rt of a p p ea ls, fro m th e c ity a n d d is tric t c o u rts
respectively, a n d o n a ll a m o u n ts o v e r $ 2 , 0 0 0 , to th e s ta te su p re m e
c o u rt. A n a p p e a l lies on b o th la w a n d fa c ts. A ppeals fro m th e c ity
c o u rts shall be trie d de novo.
D a y s o f G r a c e . A bolished.
D e p o s iti o n s . T o ta k e te stim o n y of w itness residing o u t of p a rish
o r S ta te i t is n e ce ssa ry to file m o tio n d u ly sw orn to show ing non-resi­
dence a n d m a te ria lity of evidence. W ritte n in te rro g ato ries a re p re ­
p a re d a n d serv ed o n o p p o site p a rty , o r his counsel, w ho h a s th re e d a y s
in w hich to cross. C om m ission th e n issues, d ire c te d to som e p ro p e r
officer, w ith in te rro g a to rie s a n d cross in te rro g a to rie s a n n ex e d , w ho
m u s t cause w itness to a p p e a r before nlm to a n sw e r u n d e r o a th th e

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B A N K I N G A N D C O M M E R C IA L L A W S — L O U I S I A N A

d ire c t a n d th e cross in te rro g a to rie s. H e sh o u ld reduce a n sw e r to
w ritin g , re a d sam e to w itn ess a n d cau se w itn ess to sign sam e. T he
officer th e n p re p a re s a process v e rb a l of th e w hole, a tta c h e s It to th e
com m ission, in te rro g ato ries, etc., a n d sho u ld re tu rn sam e to th e c o u rt
issu in g th e com m ission w ith in th e tim e fixed th e re in fo r ta k in g th e
d ep o sitio n . T h e d ep o sitio n of a fu g itiv e fro m Ju stice is n o t adm issible
in ev idence. (Also see A c t 176 of 1910.)
D e s c e n t. I f one dies le a v in g no d e sc e n d an ts, b u t a f a th e r a n d
m o th e r a n d a b ro th e r a n d siste r, o r d e sc e n d an ts of th e se la st, th e
succession is d iv id e d in to tw o e q u al p a rts , one goes to fa th e r a n d
m o th e r, th e o th e r to b ro th e rs a n d siste rs o r th e ir d e sc e n d an ts. If
e ith e r fa th e r o r m o th e r of d eceased dies before h im , th e p o rtio n w hich
w ould h a v e b een in h e rite d b y su ch deceased p a re n t goes to th e
b ro th e rs a n d siste rs of th e deceased, o r th e ir d e sc e n d an ts. If deceased
le ft n e ith e r d e sc e n d an ts n o r b ro th e rs n o r sisters, n o r d e sc e n d an ts from
th e m , n o r fa th e r n o r m o th e r, b u t o n ly o th e r a sc e n d a n ts, th e y in h e rit
to th e exclu sio n of all co llaterals. I f a sc e n d a n ts in p a te rn a l a n d
m a te rn a l lines a re a ll of th e sam e degree, th e e s ta te is d iv id e d Into
tw o p a rts , o ne goes to a sc e n d a n ts o n th e p a te rn a l a n d th e o th e r to
a sc e n d a n ts o n th e m a te rn a l side. I f th e re is in th e n e a re s t degree
b u t o ne a sc e n d a n t in th e tw o lines su ch a sc e n d a n t excludes a ll o th e r
a sc e n d a n ts o f a m o re re m o te degree. I f one dies leaving n o descen­
d a n ts, a n d h is fa th e r a n d m o th e r su rv iv e, h is b ro th e rs a n d sisters,
o r th e ir d escen d an ts, ta k e h a lf o f his e sta te . I f th e fa th e r o r m o th e r
o n ly su rv iv e, b ro th e rs a n d sisters, o r th e ir d escen d an ts, ta k e th re e fo u rth s. I f one dies leav in g n o d escen d an ts n o r fa th e r n o r m o th e r,
h is b ro th e rs a n d siste rs ,or th e ir d escen d an ts, ta k e all th e e sta te .
T h e p a rtitio n o f th e h alf, th e th re e -fo u rth s, o r th e w hole o f a suc­
cession fallin g to b ro th e rx a n d siste rs as a b o ve s e t fo rth , is m a d e e q u al
if th e y a re o f th e sam e m arriag e, if o f d ifferent m a rriag e s th e succession
is e q u ally d iv id e d b etw een th e p a te rn a l a n d m a te rn a l lines o f th e
deceased. I f deceased d ied w ith o u t d escendants,' leaving n e ith e r
b ro th e rs n o r sisters, n o r d e sc e n d an ts fro m th e m , n o r m o th e r n o r
fa th e r, n o r a sc e n d a n ts in th e p a te rn a l o r m a te rn a l lines, his succession
passes to h is o th e r co lla teral relatio n s, th e one n e a re st in degree
excluding th e o th e rs. W h en th e d eceased h a s le ft n e ith e r law ful
d e sc e n d an ts n o r law ful a sc e n d an ts, n o r co lla teral relatio n s, th e law
calls to h is in h e rita n c e e ith e r th e su rv iv in g h u s b a n d o r wife, o r his
o r h e r n a tu ra l ch ild ren , o r th e S ta te . I f n a tu ra l m o th e r le ft no
law ful ch ild ren o r d escen d an ts, h e r n a tu ra l ch ildren, acknow ledged
b y h er, in h e rit to th e exclusion o f h e r fa th e r a n d m o th e r a n d o th e r
a sc e n d an ts o r co llaterals o f law fu l k in d re d . N a tu ra l child ren in h e rit
fro m th e ir n a tu ra l fa th e r, w ho h a s acknow ledged th e m , w hen h e h a s
le ft no d e sc e n d an ts n o r a sc e n d an ts, n o r c o lla teral re la tio n s, n o r
su rv iv in g wife, a n d , to th e exclusion o n ly o f th e S ta te . D o n a tio n s
in te r v iv o s o r m o rtis c au sa c a n n o t exceed tw o -th ird s o f th e p ro p e rty
o f th e d isposer if h e leav e a t h is decease a le g itim a te child, o ne-half
if h e leav es tw o ch ildren, a n d o n e -th ird if h e leaves th re e o r m ore.
A n in h e rita n c e ta x is levied u p o n a ll in h e rita n c es, legacies a n d d o n a ­
tio n s, p ro v id e d n o d ire c t in h e rita n c e o r d o n a tio n to a n a sc e n d a n t or
d e sc e n d an t below $10,000 sh all b e ta x e d . T a x is 2 p e r c e n t on d ire c t
In h eritan ces a n d d o n a tio n s to a sc e n d an ts o r d e sc e n d an ts o r surv iv in g
wife o r h u s b a n d a n d 5 p e r c e n t fo r c o lla teral'in h e rita n c es a n d d o n a tio n s
to co llaterals o r stra n g ers. B eq u e sts to e d u ca tio n a l, religious o r
c h a rita b le in s titu tio n s a re ex em p t. In h e rita n c e ta x n o t d u e w hen
p ro p e rty in h e rite d , b e q u e a th e d or d o n a te d sh all h a v e b o rn e its ju s t
p ro p o rtio n o f ta x e s p rio r to tim e o f su ch d o n a tio n , b e q u est, o r in h e rit­
ance. R . O. C . 915 a m e n d ed to re a d “ I n a ll cases w hen e ith e r h u s ­
b a n d o r w ife sh all d ie leav in g n o d e sc e n d an ts, n o r a sc e n d a n ts a n d
w ith o u t h a v in g disposed b y la s t w ill a n d te s ta m e n t o f his or h e r sh are
in th e c o m m u n ity p ro p e rty , su ch u n d isp o sed o f s h are shall b e in h e rite d
b y th e su rv iv o r in fu ll o w n e rsh ip .” (A ct 57 o f 1910.)
D o w e r . (See M arried W om en.)
e x e c u t i o n . P ro p e r ty ta k e n u n d e r a w rit of fieri facias m u s t be
a d v e rtis e d a n d a p p ra ise d , a n d c an n o t be sold fo r less th a n tw o -th ird s
of th e a p p ra ise d v alue, u n til i t h a s b een re -a d v e rtise d . A d v e rtise ­
m e n ts of m o v ab les th re e tim es in te n d a y s— of real e s ta te once a
w eek fo r th ir ty d ay s. If tw o -th ird s of a p p ra ise d v a lu e is n o t bid,
p ro p e rty m u s t b e re -a d v e rtise d fo r fifteen d ay s, a n d sold o n a c re d it
fo r tw elv e m o n th s fo r w h a te v e r i t w ill b rin g . T h e re is no re d e m p tio n
of p ro p e rty sold u n d e r ex ec u tio n o r m o rtg ag e . N o s ta y of e x ec u tio n
is g iv en e x c e p t on a p p ea l, a n d e x ec u tio n m a y issue a t any* tim e a fte r
th e d e la y fo r a p p ea lin g su sp en siv ely h a s e x p ire d . A c t 113 of 1906
a u th o riz e s sheriffs a n d co n sta b le s to p u t p u rc h a se r of seized p ro p e rty
in possession.
. E x e m p t i o n s . To h e a d of fam ily , re a l e s ta te if ow ned a n d occupied
as a residence, to g e th e r w ith c e rta in fu rn itu re , sto ck , im p lem en ts,
p rovisions, e tc .; th e p ro p e rty n o t to exceed $ 2 , 0 0 0 , a n d p ro v id e d th e
p erso n claim in g th e b en efit of th e h o m e stea d ex ec u te a w ritte n d e clara­
tio n of h o m e stea d (A cts 1880, N o. 114), a n d n o e x em p tio n if wife
h a s s e p a ra te p ro p e rty w o rth o v e r $2,000. N o re g is try re q u ire d in
p a rish es o th e r th a n O rleans. (O p e ra tiv e J a n . 1, 1899.) W idow or
m in o r ch ild ren s u rv iv in g is e n title d to $ 1 ,0 0 0 o u t of deceased h u s­
b a n d ’s e sta te , if in n ecessito u s circu m stan ces, b y p reference o v e r
ev en a first-m o rtg a g e c re d ito r. Sheriff o r c o n sta b le c an n o t seize
lin e n a n d clo th es o f d e b to r o r his wife, n o r his bed, n o r th o se of his
fam ily , n o r h is a rm s a n d m ilita ry a cc o u tre m e n ts, n o r too ls a n d in s tru ­
m e n ts a n d books, sew ing m ach in es n e ce ssa ry fo r th e exercise of his
o r h e r calling, tra d e , o r profession, b y w hich h e m akes a living, th e
rig h t of p e rso n al s e rv itu d e , of u se a n d h a b ita tio n , of u s u fru c t to th e
e s ta te of a m in o r child, th e incom e o f to ta l p ro p e rty , m o n ey d u e for
sa la ry of a h officer, w ages o r reco m p en se fo r p e rso n al service (lab o rers’
wages) cooking sto v e, p la te s, e tc ., fa m ily p o rtra its , m usical In s tru ­
m e n ts p la y e d o n b y fa m ily . (A cts 1876, N o. 79.)
F r a u d v itia te s all c o n tra c ts. A c tio n b a rre d b y one y e a r lim ita tio n
to a n n u a l sale o n a cc o u n t o f fra u d . F o r fra u d on p a r t o f pu rch asers
o f goods see A c t 114 o f 1912 am en d in g A c t 94 o f 1896.
G a r n i s h m e n t . W ag es e arn ed o u t of th is S ta te a n d p a y ab le o u t
of th is S ta te , sh all be e x e m p t fro m a tta c h m e n t o r g arn ish m e n t in all
cases w h ere cau se of a c tio n aro se o u t of th is S ta te , a n d It sh all be th e
d u ty of g a rn ish ees in su ch cases to p lead su ch e x em p tio n un less th e
d e fe n d a n t Is a c tu a lly serv ed w ith process. [A ct 165 of 1904.] (See
A tta c h m e n t.)
H u s b a n d a n d W ife . (See M a rrie d ’W om en.)
I n t e r e s t . L eg al ra te Is 5 p e r c en t, b u t 8 p e r c e n t m a y be agreed
u p o n in w ritin g . I f h ig h e r th a n 8 p e r c e n t is charged, it is re ducible
to 8 p e r c e n t. If p a id , i t m a y b e su ed fo r a n d recovered w ith in tw o
y ears.
J u d g m e n t s reco rd ed in th e office of th e p a rish re co rd er becom e
m o rtg ag es fro m d a te of reco rd u p o n all re a l e s ta te of th e d e b to r, a n d
m a y b e th u s reco rd ed in a n y p a rish w h ere d e b to r ow ns real e sta te .
T h e y a re v a lid fo r te n y e ars, w h en th e y m u s t b e renew ed.
L ie n s o r P r iv ile g e s . T h e follow ing h a v e special privileges, v iz .:
f . L e sso r’s privilege. 2. P riv ileg e of th e c re d ito r on th e th in g
p ledged. 3. P riv ileg e of a d e p o sito r on th e price of a th in g d ep o sited .
4. P riv ile g e fo r expenses in c u rre d in p reserv in g th in g . 5. P rivilege
of th e v e n d o r of m o v a b le effects so long as th e y a re in th e possession
of th e ven d ee. 6 . P riv ile g e of th e in n k e e p er on th e eflects of th e
tra v e le r. P riv ileg es re stin g u p o n im m o v ab les a re as follows, v iz.:
1 . T h e v e n d o r o n th e e s ta te b y h im sold, fo r th e p a y m e n t of th e
p rice o r so m u c h of It as is u n p a id , w h e th e r it w as sold on o r w ith o u t
a c re d it, 2. A rc h ite c ts, u n d e rta k e rs, b rick lay ers, p a in te rs, m a ste r
b u ild e rs, c o n tra c to rs , s u b -c o n tra cto rs, jo u rn e y m e n , la b o re rs, c a rt-


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Federal Reserve Bank of St. Louis

m en, a n d o th e r w o rk m en em ployed in c o n stru ctin g , reb u ild in g , or
re p a irin g houses, buildings, o r m a k in g o th e r w orks. 3. T hose who
h a v e supp lied th e ow ner o r o th e r person em ployed b y th e ow ner,
his a g en t, o r s u b -c o n tra c to r, w ith m a te ria ls of a n y k in d fo r th e con­
s tru c tio n o r re p a ir of a n edifice o r o th e r w ork, w hen su ch m aterials
h a v e been used in th e e re ctio n o r re p a ir of such houses o r o th e r works.
[A rt. 3252.] P rivilege on crops to be recorded (A ct of 1890.) The
v e n d o r of a n a g ric u ltu ra l p ro d u c t of th e U n ite d S ta te s h a s a five d ays’
privilege fo r u n p a id p u rc h a se price in preference to a ll o th e rs. P riv i­
lege g ra n te d em ployes in saw m ills, e tc . (A ct 145 of 1888, am ended
b y A ct 52 o f 1910 a n d a c t 23 o f 1912.
L i m i t a t i o n s t o S u it s . P re s c rip tio n — A cco u n ts s ta te d and
acknow ledged in w ritin g a re p rescribed o n ly b y te n y e ars. [Act of
1888.] P e rso n a l a ctio n s one y e a r: A ction fo r to r ts of all k in d s; for
in ju r y to o r n o n -d e liv e ry of m erc h a n d ise sh ip p ed on vessels; fo r fees
of ju stic e, n o ta ry , o r con sta b le ; fo r in n k e e p ers’ a c c o u n ts; fo r a ccounts
of re ta ile rs of liq u o rs; fo r w ages of la b o re rs o r sailors; fo r fre ig h t; a nd
fo r tu itio n b y m o n th . T h ree y e a rs: A ctio n fo r a rre a ra g e s of re n t
c h arg es, o r h ire of m o v ab les o r im m ovables o r m o n ey le n t; fo r salaries
of overseers, clerks, o r tu itio n b y q u a rte r o r y e ar: fo r fees of p hy sician s,
a p o th e ca rie s, a tto rn e y s , sheriffs, clerks, a n d reco rd ers; on open
a c c o u n ts of m e rc h a n ts, w h e th e r w holesale o r re ta il, a n d o th e rs. F our
y e a rs: A c tions b y m inors a g a in st th e ir tu to r s , c o u n tin g fo u r years
fro m m a jo rity . F iv e y e a rs: A ctio n o n bills of ex ch an g e o r prom is­
so ry n o te s, co u n tin g fro m m a tu rity , a n d fo r n u llity of c o n tra c ts or
w ills; fo r reCision of p a rtitio n s ; to s e t asid e p u b lic a n d ju d ic ia l sales
fo r in fo rm a litie s. T en y e ars: All o th e r a c tio n s; th e rig h t to a u su ­
f r u c t o r s e rv itu d e ; all ju d g m e n ts, w h e th e r re n d e re d w ith in o r w ith o u t
th e S ta te , b u t ju d g m e n ts m a y be re v iv e d before la p se of te n years,
a n d a re th e n good fo r te n y e ars fro m d a te of re v iv a l. P resc rip tio n
does n o t ru n a g a in st m inors o r persons u n d e r in te rd ic tio n . H u sb a n d
a n d w ife c a n n o t pre scrib e a g a in st each o th e r.
L i m i t e d P a r t n e r s h i p . (See P a rtn e rs h ip .)
M a r r i e d W o m e n . S e p a ra te p ro p e rty of w ife m a y be controlled
b y h e r. R evenues of all s e p a ra te p ro p e rty a d m in istered b y th e hu s­
b a n d , a n d a ll n ro p e rty a cq u ire d b y e ith e r h u s b a n d o r w ife a fte r m a r­
riage, ex cep t b y d o n a tio n or in h e rita n c e c o n stitu te p a r t o f com m unity,
unless b o u g h t w ith th e s e p a ra te m ean s o f e ith e r a n d as a sep a ra te
acq u isitio n . A m a rried w om an c an n o t sue w ith o u t th e concurrence
o f h e r h u s b a n d or th e a u th o riz a tio n o f th e co u rt, a n d she c an n o t
b in d h erself or h e r p ro p e rty , fo r h is deb ts. W ife h a s n o dow er in
h e r h u s b a n d ’s re a l e x ta te. T h e w ife c an h a v e n o claim u p o n th e
p ro p e rty o f th e h u s b a n d to th e p re ju d ic e o f th ir d p a rtie s, unless
recorded. W here one of th e spouses is a g e n t fo r th e o th e r, h e or
she m a y b e w itness for th e o th e r in a m a tte r con n ected w ith th a t
tra n s a c tio n . A fte r dissolution of m a rriag e b y d e a th o r divorce th e
su rv iv o r is e n title d to o ne-half o f all p ro p e rty rem ain in g a fte r p a y ­
m e n t o f debts,, a cq u ired d u rin g m arriag e, a n d in case o f d e a th , th e
u su fru c t o f th e o th e r h alf, unless th is h a lf is disposed o f b y w ill of
deceased spouse. W ife c a n n o t be a w itness to h u s b a n d ’s will.
M o n o p o lie s o r T r u s t s a re re g u la te d a n d rig h ts a re given ag ain st
th e m sim ilar to th o se existing u n d e r F e d e ra l Law . T h e s ta te a u th o r­
ities m a y ta k e actio n a n d th e in d iv id u a l m a y recover th re e fo ld dam ages
su stained. See H ouse B ills N os. 7 a n d 8 , e x tra session 1915, a p p ro v e d
J u n e 10, 1915.
M o r tg a g e s c a n be foreclosed a t a n y tim e a f te r m a tu r ity of th e
d e b t, b y in s titu tin g a re g u la r s u it a n d o b ta in in g ju d g m e n t th e re o n , or
if th e a c t im p o rts a confession of ju d g m e n t in fa v o r of th e h o ld er, he
c a n a p p ly to th e c o u rt fo r a n o rd e r d ire c tin g th e sheriff to seize a nd
sell th e p ro p e rty . All m o rtg ag e s m u s t b e reco rd ed before th e y can
h a v e a n y effect as a g a in st th ir d p a rtie s . T r u s t deeds a re n o t legal,
a n d c h a tte l m ortgages a re u n k n o w n to th e law s o f L o u isian a except
as s ta te d u n d e r h eading “ c h a tte l m o rtg ag e s.” T h e re is n o red em p ­
tio n o f p ro p e rty sold u n d e r m o rtg ag e . A ll ta c it m o rtg ag e s h a v e
been abolished since 1870. I n m a k in g sales or giving a m o rtg ag e
u p o n his p ro p e rty , i t is n o t necessary fo r th e h u s b a n d to o b ta in th e
sig n a tu re o f th e wife. A m o rtg ag e re su ltin g fro m re cording a ju d g m e n t
c a n n o t h a v e th a t effect u n til a fte r a d jo u rn m e n t o f co u rt. [A ct 188$.]
Lessees o b ligated to e re ct buildings, etc., u p o n leased p ro p e rty , c a n
m o rtg ag e th e lease, to g e th e r w ith th e im p ro v em e n ts, etc. (A ct 21
o f 1908.) Leases a n d c o n tra c ts to explore fo r oil, gas a n d m inerals
m a y b e m o rtg ag ed (A ct 232 o f 1910).
N e g o tia b le I n s t r u m e n t s . “ N e g o tia b le In s tru m e n t A c t” (N o.
64 of 1904) changes in m a n y re sp ec ts th e law s fo rm erly a p p lic ab le to
bills a n d no tes. U n d e r it, d a y s of grace, w hich fo rm erly w ere cu sto m ­
a ry , a re abolished. In s tru m e n ts a re p a y a b le to b e a re r if m a d e p a y ab le
to th e o rd e r of a fictitious o r n o n -e x istin g person, w hen such fa c t Is
k n o w n to th e one m a k in g i t so p a y a b le ; w hen n a m e of p a y ee does
n o t p u rp o r t to be ñ a m é of a n y p erson ; o r w hen th e only o r la s t Indorse­
m e n t is in b la n k . W h en th e re is a d iscrep a n c y b etw een th e w ords
a n d th e figures of a n in s tru m e n t, th e sum d e n o te d b y th e w o rd s is
th e sum p a y ab le. Tw o o r m o re perso n s signing In s tru m e n t c o n ta in ­
ing w ords, “ I p ro m ise to p a y ,” a re jo in tly a n d s e v e ra lly lia b le th e re o n .
P re s e n tm e n t fo r p a y m e n t is u n n e ce ssa ry to b in d p a r ty p rim arily
liable, b u t is necessary to charge d ra w e r o r in d o rse r. N o tice of dish o n o l m u s t be given to d ra w e r a n d in d o rse r w hen in s tru m e n t has
b e en d ishonored b y n o n -a c ce p ta n c e o r n o n -p a y m e n t, o th e rw ise th e y
a re discharged. A bill of exchange does n o t o p e ra te a n assig n m en t
of fu n d s In h a n d s of d raw ee a v ailab le fo r p a y m e n t th ereo f, a n d draw ee
is n o t lia b le till h e a cc e p ts sam e. H o ld e r m a y re q u ire acc e p ta n ce
to be w ritte n on hill, a n d if refused m a y tr e a t th e b ill a s dishonored.
A n a c c e p ta n ce w ritte n on p a p e r o th e r th a n a bill, a n d a n un co n d i­
tio n a l w ritte n prom ise to a c c e p t a bill before it is d raw n , b in d s th e
a c c e p to r o nly in fa v o r of a p u rc h a se r fo r v a lu e on fa ith th ereo f.
D raw ee h a s tw e n ty -fo u r h o u rs to decide w h e th e r h e w ill a c c e p t or
n o t. A d raw ee w ho d e stro y s a bill p re sen te d to him fo r a cc e p ta n ce ,
o r w ho falls to re tu rn th e bill w ith in tw e n ty -fo u r hours, is deem ed to
h a v e acc e p te d th e sam e. W h ere a s ig n a tu re is so placed u p o n a
n e g o tia b le in s tru m e n t t h a t i t is n o t c lear in w h a t c a p a c ity th e p erson
m a k in g sam e in te n d e d to sign, h e is deem ed a n ind o rser. F oreign
bills m u s t be p ro te s te d fo r n o n -a c ce p ta n c e o r n o n -p a y m e n t. W here
a bill does n o t a p p e a r on its face to b e a foreign bill, p ro tè s t th e re o f
in case of d ishonor is'u n n e c e s sa ry . A check m u s t b e p re se n te d for
p a y m e n t w ith in a re a so n a b le tim e o r d ra w e r w ill b e d isch arg ed from
a n y loss caused b y delay. B a n k is n o t liable to h o ld e r of a check
u n til i t a cc e p ts o r certifies sam e. . W h en th e la s t d a y to do a n a c t
re q u ire d o r p e rm itte d to be do n e u n d e r th e a c t falls on a S u n d a y or
legal holid ay , i t m a y be done on th e n e x t succeeding sec u la r o r bu si­
ness d a y . W hen d a y of m a tu r ity falls on a S u n d a y o r a ho lid ay , th e
in s tru m e n t is p a y ab le on n e x t succeeding business d a y . In s tru m e n ts
falling d u e on S a tu rd a y a re to be p re se n te d fo r p a y m e n t o n n e x t
succeeding business day , e x ce p t t h a t in s tru m e n ts p a y ab le on d em an d
m a y , a t o p tio n of holder, bè p re sen te d fo r p a y m e n t before 12 o ’clock
n o o n on S a tu rd a y w hen t h a t e n tire d a y is n o t a h o lid a y . I f th e d a y
o r d a y s n e x t succeeding th e p ro te s t fo r n o n -a c ce p ta n c e o r n o n -p a y ­
m e n t shall be d ays of p u blic re s t o r legal h o lid a y s o r legal h a lf holi­
d ays, th e n th e d a y n e x t follow ing sh all be c o m p u te d a s th e first d a y
a fte r th e p ro te s t. “ Service of c ita tio n shall n o t b e w aived, n o r ju d g ­
m e n t confessed, b y a n y d o c u m e n t u n d e r p riv a te sig n a tu re e x ecu ted
p rio r to th e m a tu rity of th e ob lig atio n sued o n .” [A rticle 91, Con­
s titu tio n 1898.] A cceptance m u s t be in w ritin g a n d signed b y
draw ee. I t m u s t n o t express t h a t draw ee w ill perform his prom ises
b y a n y o th e r m eans th a n p a y m e n t of m o n ey . (A ct 189 of 1908.)

B A N K I N G A N D C O M M E R C IA L L A W S — M A IN E
P a r t n e r s h i p , L i m i t e d a n d S p e c ia l. S tip u la tio n s t h a t one sh all
p a rtic ip a te in th e p ro fits a n d sh all n o t c o n trib u te to losses Is v o id,
b o th a s re g a rd s p a rtn e rs a n d th ir d p erso n s. P a rtn e rs h ip s a re d iv id ed
a s to th e ir o b je c t in to co m m ercial a n d o rd in a ry p a rtn e rs h ip s. Com­
m ercial p a rtn e rs h ip s a re su ch a s a re fo rm ed : 1. F o r th e p u rc h a se
of a n y p e rso n al p ro p e rty , a n d th e sale th e re o f e ith e r in th e sam e
s ta te o r c h an g ed b y m a n u fa c tu re . 2. F o r b u y in g o r selling a n y
perso n al p ro p e rty w h a te v e r, a s fa c to rs o r b ro k e rs. 3. F o r c arry in g
personal p ro p e rty fo r h ire, in sh ip s o r o th e r vessels. O rd in a ry p a r t­
n erships a re all su ch a s a re n o t co m m ercial. T h e re is also a species
of p a rtn e rs h ip w hich m a y b e in c o rp o ra te d w ith e ith e r of th e o th e r
kinds, called p a rtn e rs h ip in c o m m en d am . I t is fo rm ed b y c o n tra c t,
b y w hich one p erso n o r p a rtn e rs h ip ag rees to fu rn ish a n o th e r p erso n
o r p a rtn e rs h ip a c e rta in a m o u n t, e ith e r in p ro p e rty o r m o ney, to be
em ployed b y th e p erso n o r p a rtn e rs h ip to w hom i t is fu rn ish e d , in
his o r th e ir ow n n a m e o r firm , on co n d itio n , of receiv in g a sh are in
th e profits, in th e p ro p o rtio n d e te rm in e d by th e c o n tra c t, a n d of bein g
liable to losses a n d expenses to th e a m o u n t fu rn ish e d a n d no m ore.
P a rtn e r in c o m m en d am c a n n o t b in d o th e r p a rtn e rs b y h is a c t. P a r t­
nership in c o m m en d am m u s t b e m a d e in w ritin g ; m u s t ex p ress a m o u n t
fu rn ish ed o r a g re ed to b e fu rn ish e d ; th e p ro p o rtio n of p ro fits w hich
p a rtn e r is to receive a n d ex p en ses a n d loses h e is to b e a r; m u s t s ta te
w h e th er i t b e received in goods o r m o n ey , e tc .: m u s t b e signed b y
p a rtie s in p resen ce of a t le a st one w itn ess a n d reco rd ed in fu ll w ith in
six d a y s in m o rtg ag e office. I f b ra n c h houses a re e sta b lish e d th e con­
tra c t m u s t b e reco rd ed in p a rish w here b ra n c h es a re lo c a ted . If
p a rtn e r in c o m m en d am allow h is n a m e to b e u sed , o r if h e ta k e a n y
p a rt in th e business of th e p a rtn e rs h ip , h e w ill b e lia b le a s a g en eral
p a rtn e r. O rd in a ry p a rtn e rs a re n o t b o u n d in solldo fo r d e b ts of
p a rtn e rsh ip , a n d n o one of th e m c a n b in d his p a rtn e rs u n less th e y
have given h im p o w er to do so; each is b o u n d fo r h is s h are of th e d e b t
in p ro p o rtio n to th e n u m b e r of p a rtn e rs . C om m ercial p a rtn e rs a re
each lia b le fo r th e e n tire d e b ts of th e p a rtn e rs h ip .
P o w e r s o f A t t o r n e y . M ay b e w ritte n o r o ra l. M ay b e e ith e r
general fo r a ll affairs o r special fo r one a ffa ir o n ly . O ne conceived in
general te rm s confers o n ly p o w er of a d m in is tra tio n ; to sell m o rtg ag e
or do a n y o th e r a c t of o w n ersh ip , th e p o w er m u s t b e ex p ress a n d
special.
P r o b a t e L a w . T h e re is no sp ecial p ro b a te c o u rt. D is tric t c o u rts
are v e ste d w ith p ro b a te ju risd ic tio n . Successions a re o p en ed u p o n
p e titio n of in te re s te d perso n s in th e p a rish w here th e deceased resided,
if he h a d a dom icile o r fixed p lace of resid en ce in th e s ta te ; in th e
parish w h ere h e le ft h is la n d e d p ro p e rty , if h e h a d n e ith e r dom icile
nor place of resid en ce in th e s ta te ; o r in th e p a rish in w hich i t a p p e a rs
from th e in v e n to ry t h a t h is p rin c ip a l p ro p e rty w as s itu a te d , if h e
left p ro p e rty in sev eral p a rish es; in th e p a ris h w h ere h e died, if h e
h ad n o c e rta in dom icile n o r a n y fixed p ro p e rty . T h e ju d g e a p p o in ts
an a d m in is tra to r w h en deceased le a v es no w ill. A d m in is tra to rs m u s t
re n d e r a n n u a l a cc o u n ts, a n d a re allow ed 2 1-2 p e r c e n t o n th e in v e n ­
to ry a s com m issions. A tto rn e y s a t la w a re a p p o in te d to re p re se n t
a b se n t heirs. P ro p e rtie s a cq u ire d d u rin g m a rria g e a re p re su m ed to
be c o m m u n ity p ro p e rty , a n d su rv iv in g spouse is o w n er of o ne-half.
W hen e ith e r h u s b a n d o r wife dies, le a v in g no a sc e n d a n ts o r descend­
a nts, a n d w ith o u t h a v in g disp o sed b y w ill of h is o r h e r sh a re in th e
com m unity, th e su rv iv o r h o ld s su ch sh are in u s u fru c t d u rin g h is o r
her n a tu ra l life. (See Successions.)
P r o t e s t . (See N eg o tiab le In s tru m e n ts .)
S e p a r a t i o n f r o m B e d a n d B o a r d . M ay b e claim ed re cip ro cally
for: 1. A d u lte ry . 2. W h en spouse co n d em n ed to in fam o u s p u n ­
ishm ent. 3. H a b itu a l in te m p e ra n ce , excesses, cru el tre a tm e n t, or
outrages, w h en su ch re n d e rs liv in g to g e th e r in su p p o rta b le . 4. P u b lic
d efam atio n of o ne spouse b y th e o th e r. 5. A b a n d o n m e n t. 6 .
A tte m p t of o ne spouse a g a in st life of o th e r. 7. W h en one spouse
charged w ith in fam o u s offense a c tu a lly flees fro m ju stic e.
T a x e s . T ax es o n re a l e s ta te c an n o t b e enforced u n til th e e x p ira ­
tio n of th e y e a r fo r w hich th e y a re lev ied a n d a fte r leg al n o tices to
delin q u en ts a n d a d v e rtis e m e n t. L a n d s sold fo r ta x e s a re re d e em ab le
w ithin one y e ar, b y th e ow ner, h is a g en t, o r h eirs, o r a n y cred ito r,
on p a y m e n t of th e p u rc h a se m o ney, w ith 20 p e r c e n t in te re s t a n d
costs, a n d a ll s u b se q u e n t ta x e s p a id . L a n d s sold fo r ta x e s d u e p rio r
to 1880 a re n o t red eem ab le, s t a t e ta x e s a re 5 9-20 m ills on th e ao llar,
and p a ris h ta x e s n o t exceeding te n m ills; c ity of N ew O rleans ta x
2.02 p e r c en t. D e lin q u e n t s ta te ta x e s b e a r in te re s t a t 2 p e r c e n t a
m onth, c ity ta x e s, 10 p e r c e n t a y e ar.
W ills . T h ere a re fo u r d ifferen t k in d s of wills, v iz .: T h e olo­
graphic, n u n c u p a tiv e b y p u b lic a c t, n u n c u p a tiv e b y p riv a te a c t, an d
m ystic (or sealed) w ill. T h e o lo g rap h ic w ill m u s t b e w holly w ritte n ,
d ated , a n d signed b y th e te s ta to r , a n d m a y b e m a d e w ith in o r w ith ­
ou t th e S ta te . N u n c u p a tiv e w ill b y p u b lic a c t a s w ritte n b y a
n o ta ry in presence of th re e w itnesses, o v e r th e ag e of 16 y e ars com ­
plete, n o t in san e, deaf, d u m b o r b lin d , resid in g in th e p lace w here
will is e x ecu ted , o r five w itnesses n o t re sid en ts of th e place, a t th e
d ic ta tio n of th e te s ta to r . N u n c u p a tiv e w ill b y p riv a te a c t a n d m y stic
wills a re su b je c t to m a n y fo rm alitie s w hich m a y b e b e st o b ta in e d b y
reference to Civil Code A rts, 1581-1587 b o th Inclusive. A ll p ersons
of so u n d m in d o v e r s ix te en y e a rs of ag e m a y dispose of th e ir p ro p e rty
by will. W ills ex ecu ted w ith o u t th e s ta te giv en force a n d effect
provided sam e b e in w ritin g a n d su b scrib ed b y te s ta to r a n d follows
form o f place w here executed. (See a c t 176 o f 1912.)

S Y N O P S IS OF

T H E L A W S O F M A IN E
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
R ev ised b y S y d n e y B. L a r b a b e e ,
A tto rn e y a t L aw , P o r tla n d .
(See C ard in A tto rn e y s ' L ist.)
A c k n o w l e d g m e n t s . (See Deeds.)
A c tio n s . A t law b eg u n b y w rit, u n d e r com m on la w p ra c tic e, b u t
co n ta in in g d e claratio n . S u its In e q u ity a re b eg u n b y bill of com la ln t, filed w ith clerk of c o u rt a n d subpeena Issued b y h im , o r m a y
e in se rte d in w rit of a tta c h m e n t a n d serv ed b y co p y of bill a n d w rit.
■On m o tio n n o n -resid e n t p lain tiffs re q u ire d to g ive s e c u rity fo r costs.


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

1429

A d m i n i s t r a t i o n o f E s t a t e . (See E s ta te s of D eceased P ersons.)
A f f id a v its . Affidavits may be made before a notary public or

justice of the peace. In some court matters authority of magistrate
must be proved by certificate of clerk of a court of record.
Aliens. Aliens may hold and convey real estate find personal
property. Wills of aliens may be proved and allowed In this State.
Widow of a citizen of United States who was an alien when she married
him has right of descent in his estate (but see Married Women).
A r b i t r a t i o n . Ju d g e of p ro b a te c o u rt m a y a u th o riz e e x ec u to rs or
a d m in is tra to rs to a d ju s t b y a rb itr a tio n claim s fo r o r a g a in st th e
e sta te s re p re se n te d b y th e m . A ll c ontroversies w hich m a y be th e
s u b je c t of perso n al a c tio n m a y be s u b m itte d , b y th e p a rtie s, to referees
fo r a rb itr a tio n . M ajo rity of referees m a y m a n e re p o rt to S u p rem e
o r S u p e rio r C ourts.
A r r e s t . (See .E xecutions.) I n a ctio n s e x delicto, o n m esne proc­
ess a n d execu tio n , a s of course w ith o u t a ffid a v it o r o rd e r; in a ctio n s
ex c o n tra c tu , o n m esne process, u p o n a ffid a v it of th e c re d ito r, his
a g en t, o r a tto rn e y , t h a t he h a s re a so n to believe a n d does believe
t h a t th e d e b to r is a b o u t to d e p a r t a n d reside b eyond th e lim its of
th e S ta te a n d c a rry w ith h im m eans of h is ow n m o re th a n a re neces­
sa ry fo r his im m e d ia te su p p o rt, a n d t h a t a t le a st $10 is d ue on th e
claim ; o n execu tio n , on ly a fte r s u p p le m e n ta ry proceedings a n d fra u d
proven, b u t if c o n tra c t ju d g m e n t o r a c tio n e x istin g M arch 17, 1887,
a rre s t on ex ec u tio n . D ebtors a rre s te d on m esne process o r ex ecu tio n
m a y disclose, give u p p ro p e rty n o t e x em p t fro m a tta c h m e n t a n d be
disch arg ed fro m a rre s t, o r m a y give b o n d a n d disclose a ccording to its
te rm s. N o a rre s t in a ctio n s e x c o n tra c tu fo r less th a n $10, a n d none
of m a rrie d w om en in civil actio n s.
A s s i g n m e n t s . C om m on law assig n m e n ts fo r th e b en efit of
c re d ito rs m a y b e m ad e, a n d a f te r fo u r m o n th s w ill be good a g a in st
b a n k ru p tc y proceedings. A ssignm ents of w ages m u s t be recorded
In to w n c le rk ’s office.
A t t a c h m e n t . A ll p ro p e rty n o t e x em p t a tta c h a b le o n m esne proc­
ess a s of course w ith o u t a ffid a v it; sec u rity fo r costs b y in d o rse r of
w rit on ly if c re d ito r is n on-resident;, lien b y a tta c h m e n ts in th e o rd e r
in w hich th e y a re m a d e c o n tin u e fo r th ir ty d a y s a f te r ju d g m e n t
(ex ten d ed w here ex ec u tio n is delayed, a p p ea l from ta x a tio n of costs
Is ta k e n , o r decision of law c o u rt certified dow n in v a c a tio n ), w ith in
w hich tim e le v y m a y be m ad e. P e rso n a l p ro p e rty m a y be a p p ra ise d
a n d sold on m esne process to a v o id expense, d e p re ciatio n o r loss,
o n re q u e st of e ith e r p a r ty a n d proceeds h eld b y officer in lieu of th e
p ro p e rty ; foreign a tta c h m e n t (g arn ish m e n t), know n as tru s te e process,
a tta c n e s p ro p e rty b y o r d e b t d u e from tru s te e u n less: 1 . D ue on
neg o tia b le p a p er. 2 . M oney collected on process b y officer. 3.
I n h a n d s of p u b lic officer. 4. D ue on c o n tingency. 5. T ru ste e
lia b le to e x ec u tio n on sam e. 6 . T w e n ty do llars wages, fo r perso n al
la b o r of th e d e b to r, w ife o r m in o r child w ith in one m o n th , a n d $10
e x e m p t in all cases. 7. I n c e rta in cases m oney d u e on life a n d
a c c id e n t policies, a n d fro m fr a te rn a l beneficiary a ssociations. (See
C reditors’ Bills.)
B a n k s . Savings b a n k b usiness a n d d isco u n t b a n k in g p e rm itte d
only u n d e r special c h a rte r, a n d u n d e r s ta te supervision. T ru s t com ­
panies m a y be organized u n d e r g eneral s ta tu te s o n o b ta in in g a p p ro v a l
of s ta te b a n k ex am in er. G eneral s ta tu te s re la tin g to d isco u n t b a n k ­
in g rep ealed b y L aw s 1903, c. 166. F o reig n b a n k in g a ssociations h a v ­
in g a b ra n c h h e re p a y a ta x of th re e -fo u rth s of one p e r c e n t p e r a n n u m
o n th e a m o u n t of busin ess d o n e in th is S ta te . S avings b a n k s h a v e
n o c ap ital, a n d do b usiness o n ly fo r th e b enefit of d e positors, u n d e r
s ta tu te re g u la tio n s re s tric tin g in v e stm en ts, re q u irin g re p o rts u n d e r
o a th a n d ex am in atio n s b y b a n k e x am in er. M ust n o t p a y o v e r 2 1-2
p e r c e n t d iv id e n d sem i-a n n u ally . F ra n c h ise ta x is five-eighths p e r
c en t, re g u la te d to fa v o r h om e in v e stm e n ts. U se of th e w ords “ b a n k ,”
“ t r u s t co m p a n y ,” a n d sim ila r w ords In d e sig n a tin g a business, for­
b id d e n , e x c e p t b y c o rp o ra tio n s organized a s ab o v e o r u n d e r law s of
U n ite d S tates. C o rp o ra tio n s, if licensed b y b a n k com m issioner, m a y
receive savings d eposits fro m th e ir em ployees. D ealers in securities
m u s t b e registered w ith b a n k com m issioner a n d a re s u b je c t to c e rta in
reg u latio n s.
C o lla te r a l s . (See M ortgages.)
C o n d i t i o n a l S a le s, C o n s i g n m e n t s . No a g re em en t t h a t p e rso n al
p ro p e rty b a rg a in e d a n d d eliv ered to a n o th e r sh all re m a in th e p ro p e rty
of th e seller u n til p a id for, is v a lid unless in w ritin g a n d signed b y th e
p e rso n to be b o u n d . S uch a g re em en t, in w h a te v e r form i t m a y be,
Is n o t v a lid e x ce p t as b e tw ee n orig in al p a rtie s, unless recorded In th e
office of th e clerk of th e to w n in w hich th e p u rc h a se r resides a t th e
tim e of th e pu rch ase. T his does n o t a p p ly to goods consigned fo r
sale.
C o n v e y a n c e s . (See Deeds.)
C o r p o r a tio n s . T h ree o r m ore persons m a y fo rm a c o rp o ra tio n to
c a rry on a n y law ful b usiness e x ce p tin g ban k in g , in su ran ce, c o n s tru c t­
in g a n d o p e ra tin g ra ilro ad s, sav in g s b a n k s, t r u s t com panies, o r c o r­
p o ra tio n s in te n d e d to d e riv e profits fro m th e lo a n o r use of m oney,
a n d safe d e p o sit com panies, b u t co rp o ra tio n s m a y b e fo rm ed u n d e r
th e general law fo r th e c o n stru c tio n a n d o p e ra tio n of ra ilro ad s o u tsid e
th e S ta te of M aine. C orporations fo r o th e r purposes, e x ce p tin g fo r
m u n icip al purposes, a n d w here th e o b je c ts of th e c o rp o ra tio n c a n n o t
be a tta in e d w ith o u t special a cts, a re also fo rm ed u n d e r general law s.
O rg a n iz atio n becom es void unless c o rp o ra tio n begins business w ith in
tw o y e ars. C orp o ratio n m a y c a p italize to a n u n lim ite d a m o u n t a n d
m a y increase o r decrease th e a m o u n t of th e ir c a p ita l o r th e p a r v a lu e
of th e sh ares. No p o rtio n of c a p ita l is re q u ire d to b e p a id in ; sto ck
m a y be issued fo r p ro p e rty o r fo r services a n d in a bsence of fra u d
th e ju d g m e n t of th e d ire c to rs a s to th e v a lu e of such p ro p e rty or
services is conclusive, th e sto ck th e re u p o n becom ing fu lly paid.
O nly original su bscribers a n d ta k e rs of s to ck a re liable o n sam e to
e x te n t of u n p a id p a r v alu e a n d th e n o n ly fo r d e b ts c o n tra c te d d u rin g
th e ir ow nership of sto ck , a n d a c tio n to enforce su ch lia b ility m u s t be
com m enced w ith in tw o y e ars a n d c an b e m a in ta in e d on ly b y a ju d g ­
m e n t c re d ito r of th e co rp o ra tio n w ho s h all h a v e b eg u n proceedings
to o b ta in su ch ju d g m e n t a g a in s t th e c o rp o ra tio n d u rin g th e ow ner­
ship of su ch s to ck o r w ith in one y e a r a f te r its tra n s fe r b y such sto ck ­
h o ld e r is recorded o n th e c o rp o ra tio n books. D irectors m u s t be
stockholders o r m em bers of a n o th e r c o rp o ra tio n w hich is a stock h o ld er.
If c o rp o ra tio n fails fo r six m o n th s to elect directo rs, c o u rt m a y a p p o in t.
C orporations m u s t p a y to th e S ta te u p o n org an izatio n , a fee as fol­
low s: W h ere th e c ap ita l sto ck is $10,000 o r less, $10; exceeding
$10,000 a n d u p th ro u g h $500,000, $50; a b o v e $500,000, $10 fo r e very
$100,000 Of c ap ital. O th e r fees fo r o rg a n iz a tio n a re : a tto rn e y g en eral’s fee $5, re g iste r of deeds $5, s e c re ta ry of s ta te $5. T h e
a n n u a l fran c h ise ta x is a s follow s: $5 pro v id ed a u th o riz e d c a p ita l
does n o t exceed $50,000; exceeding $50,000 a n d u p th ro u g h $200,000,
$10; exceeding $200,000 a n d u p th ro u g h $500,000, $50; exceeding
$500,000 a n d u p th ro u g h $1,000,000, $75; a n d th e fu r th e r su m of
$50 p e r $1,000,000 o r a n y p a r t th e re o f in excess of $1,000,000. Cor­
p o ra tio n s w hich h a v e su sp en d ed business te m p o ra rily a n d h a v e been
excused fro m filing re tu rn s of a m o u n t of c ap ita l stock, etc., a re n o t
lia b le fo r fran ch ise ta x . M eetings of stockholders m u s t b e h e ld w ith in
th e S ta te . C lerk m u s t be re sid en t a n d keep sto ck h o ld ers’ records in
th e S ta te . H is records a re open to in spection b y sto ck h o ld ers b u t
n o t b y m ere cred ito rs. W ith th e e x ce p tio n of b a n k in g c o rp o ra tio n s

1430

B A N K I N G A N D C O M M E R C IA L L A W S — M A I N E

no p u b lic re p o rts a re re q u ire d e x c e p t o n e to th e se c re ta ry of s ta te
sh o w in g n a m e s a n d residences of officers a n d a m o u n t of c a p ita l stock.
D eliv ery o f c ertific a te o f s to c k to b o n a fid e p u rc h a se r o r p ledgee fo r
v a lu e to g e th e r w ith w ritte n tra n s fe r o f sam e o r w ritte n p ow er of
a tto rn e y to sell, assign, a n d tra n s fe r sam e, sig n ed b y o w n e r of cer­
tifica te , tra n s fe rs title a g a in st a ll p a rtie s . F o reig n c o rp o ra tio n s h a v e
p ra c tic a lly sam e rig h ts a s d o m estic, b u t a re re q u ire d to file co p y of
c h a r te r w ith se c re ta ry of s ta te , a lso a c o p y o f th e by-law s, a n d a re
also re q u ire d u n d e r sev ere p e n a ltie s to file c e rtific a te show ing am o n g
o th e r th in g s th e n am es of officers, a m o u n t o f c a p ita l s to c k a u th o riz e d ,
a m o u n t issu ed an d a m o u n t p a id In ; also m u s t file c ertific a te show ing
a n y ch an g e in a b o v e p a rtic u la rs . S u ch c o rp o ra tio n s m u s t a lso a p p o in t
a re s id e n t of M aine, h a v in g a n office o r a p la c e of b usiness In th e
s ta te , to b e its a tto rn e y on w h o m pro cess m a y b e served in a n y legal
p roceeding. C o rp o ratio n s m a y disp o se o f th e ir fran c h ises o n m a jo rity
v o te of th e s to ck h o ld ers; m a y su e a n d b e sued, a n d h a v e g en erally
th e p o w ers o f in d iv id u a ls. P u b lic serv ice c o rp o ra tio n s a re s u b je c t
to a P u b lic U tilities C om m ission.
C o u r ts . T erm s a n d Civil J u ris d ic tio n . S u p rem e ju d ic ia l c o u rt:
Tw o o r th re e te rm s a y e a r In eac h c o u n ty ; u n lim ite d ju risd ic tio n e x c e p t
a s specified below ; fu ll ju risd ic tio n in e q u ity ; a p p e lla te ju risd ic tio n
e n b a n c o n q u e stio n s o f law , fro m tr i a l te rm s a n d su p e rio r c o u rts.
S u p e rio r
c o u rts :
In
C u m b erlan d
C o u n ty
except
e q u ity ,
re a l a ctio n s, e x tra o rd in a ry leg al rem ed ies a n d som e o th e rs ; exclusive
ju risd ic tio n w ith excep tio n s to $500 a n d in d ivorce, c o n c u rre n t ju ris­
d ic tio n a b o v e $500; sits first T u e sd a y o f e v ery m o n th , ex cep t Ju n e,
J u ly , a n d A u g u st. K en n eb ec C o u n ty ; exclusive ju risd ic tio n , w ith
ex cep tio n s to $500; c o n cu rre n t in h a b e a s c o rp us a n d divorce; sits
seco n d T u e sd a y o f J a n u a ry a n d first T u e s d a y o f A pril a n d S ep tem b er
a t A u g u sta; second T u e sd a y o f J u n e a n d N o v e m b er a t W aterville.
C o u rts o f p ro b a te : U su al ju risd ic tio n c o n c u rre n t in e q u ity o f p ro b a te
m a tte rs . M u n icip al c o u rts a n d tria l ju stic es: E xclusive ju risd ic tio n
o f forcible e n try a n d d e ta in e r a n d in o th e r cases u p to lim ited am ount;a p p ea ls to su p erio r c o u rt w here e stab lish ed , a n d elsew here to su p re m e
ju d ic ia l co u rt.
C r e d i t o r s ’ B ills . B ill In e q u ity m a y b e m a in ta in e d to reach
p ro p e rty o f d e b to r w h ich c a n n o t b e re a c h e d b y process a t law , a n d
is n o t e x e m p t fro m a tta c h m e n t; a lso p ro p e rty conveyed in fra u d of
c re d ito rs a n d p ro p e rty sec re te d so t h a t i t is n o t rep lev iab le.
D a y s o f G r a c e . (See N e g o tia b le In s tru m e n ts .)
D e e d s . A n y o w n er of re a l e s ta te h a v in g rig h t of e n try m a y c on­
v e y i t b y d eed. N o e s ta te g re a te r th a n te n a n c y -a t-w ill c a n b e c re a te d
e x c e p t in w ritin g . D eeds m u s t b e ack n o w led g ed b y a g ra n to r o r
o n e of th e m o r b y a tto r n e y in fa c t, e x e c u tin g th e sam e, before a ju s tic e
o f th e peace, n o ta ry p u b lic h a v in g a Beal, o r w o m an qualified to ta k e
a c k n o w le d g m e n ts; o u tsid e th e S ta te , a n d in th e U n ite d S ta te s , before
a c lerk o f a c o u rt of re c o rd h a v in g a seal, n o ta r y p u blic, o r com m is­
sio n er o f deed s fo r th is S ta te , a n d m a fo reig n c o u n try before a n o ta ry
p u b lic, o r a co n su l o r m in is te r o f th e U n ite d S ta te s , b u t if m a g is tra te
a c tin g o u tsid e o f S ta te h a s no official seal, h is a u th o r ity a n d th e
g en u in en ess of h is s ig n a tu re m u s t b e a u th e n tic a te d b y th e clerk of
a c o u rt o f re c o rd in c o u n ty w h ere h e resides. U nacknow ledged deeds
c a n n o t b e reco rd ed . N o special fo rm o f a ck n o w le d g m e n t re q u ire d .
D eeds m u s t b e re c o rd e d to b e v a lid a g a in st p a rtie s w ith o u t n o tic e of
th e c o n v ey an ce. D eeds m u s t b e u n d e r seal, b u t w itn e ss is n o t
re q u ire d fo r v a lid ity a lth o u g h u s u a l to h a v e one. L eases fo r m ore
th a n sev e n y e a rs m u s t b e reco rd ed . T ru s ts co ncerning re a l e s ta te
c a n b e c re a te d o n ly in w ritin g , e x c e p t th o se a risin g b y im p lic a tio n
o f law .
D e p o s iti o n s . D e p o sitio n s m a y b e ta k e n b y d isin te re ste d ju s tic e
of th e peace o r n o ta ry p u b lic ; m a y b e ta k e n w h en d e p o n e n t Is u n a b le
th ro u g h ag e, in firm ity , o r sickness to a tte n d a t pla c e of tria l; w hen
d e p o n e n t resides o u t of, o r is a b s e n t fro m th e S ta te ; w hen d e p o n e n t
resid es in to w n o th e r th a n t h a t in w hich tria l is to be held, e tc . D epo­
sitio n s so ta k e n m a y b e u sed in a ll civil s u its o r causes, p e titio n s fo r
p a rtitio n of la n d , libels fo r d ivorce, p ro se cu tio n s fo r th e m a in te n a n c e
of ch ild re n , p e titio n s fo r op in io n s in tr ia l b efo re co u rts of a rb itr a to r s ,
referees a n d c o u n ty com m issioners, a n d in cases of c o n te ste d s e n a to ria l
o r re p re s e n ta tiv e elections. D ep o sitio n s o r affid a v its m a y a lso be
ta k e n in a p p lic a tio n s fo r p ensions, b o u n ty , o r a rre a rs of p a y u n d e r
a n y la w of th e U n ite d S ta te s . C o u rts m a y issue com m issions to
ta k e d e p o sitio n s o u t of th e S ta te , o r th e y m a y b e ta k e n o u t of S ta te
b y a ju s tic e , n o ta ry , o r o th e r p e rso n em pow ered, b u t in th e la tte r
case i t is w ith in th e d iscretio n of th e c o u rts to a d m it o r re je c t th e m .
D e s c e n t a n d D i s t r i b u t i o n o f P r o p e r t y . (See E s ta te s of De­
ceased P ersons.)
D o w e r . A b o lish ed b y law s of 1895, c h ap . 157, ta k in g effect as
to p erso n s n o t th e n m a rried , M ay 1, 1895; a s to o th e rs, J a n . 1, 1897.
W ife o r h u s b a n d m a y b a r th e rig h t b y in h e rita n c e to o n e -th ird o r
o n e-h alf, a s th e case m a y be, of re a lty b y jo in in g in th e o th e r’s deed,
o r b y sole d eed, o r b y a n te -n u p tia l s e ttle m e n t, o r b y jo in tu re . E ith e r
refu sin g to jo in in o th e r’s co n v ey an ce (or if in c a p a c ita te d w ith no
g u a rd ia n in th is s ta te , o th e r b ein g a n o n -resid en t) m a y be b a rre d of
in h e rita n c e u p o n a p p lic atio n to su p rem e ju d ic ia l c o u rt a n d decree
a fte r h earin g . (See E s ta te s o f D eceased P ersons.)
E s t a t e s o f D e c e a s e d P e r s o n s . E ig h te e n m o n th s a fte r n o tic e of
a p p o in tm e n t allow ed c re d ito rs to p re s e n t claim s a n d s u it m u s t be
b eg u n a n d serv ice o f process m a d e w ith in tw e n ty m o n th s a fte r su ch
n o tic e o f a p p o in tm e n t. A llow ance to w idow a n d m in o r children,
m a d e b y c o u rt fro m e sta te . N o n -re sid e n t e x ecu to r o r a d m in is tra to r
m u s t a p p o in t a tto rn e y . T im e o f d e m a n d o r n o tic e e x te n d ed fo r a b se n t
c re d ito r if fu r th e r assets, b u t p rio r p a y m e n ts n o t d is tu rb e d th e re b y .
N o a d m in istra tio n , g ra n te d a fte r tw e n ty y ears. T h e re a l a n d perso n al
e s ta te o f a p e rso n d eceased in te s ta te (excepting w ild la n d s c o nveyed b y
him ) b ein g s u b je c t to th e p a y m e n t o f d e b ts d escends a ccording to th e
fo llo w in g ru les: 1 . I t h e le a v es a w idow a n d issue, o n e -th ird to
th e w idow . I f no issue, o n e-h alf to th e w idow . A nd if n o k in d re d ,
th e w hole to th e w idow . A n d to th e w id o w er sh all descend th e sam e
sh ares In h is w ife’s real a n d p e rso n al e sta te . T h ere shall likew ise
d escen d to th e w idow , o r w idow er, th e sam e sh are in all su ch re a l
e s ta te of w h ich th e d eceased w as seized clufing co v ertu re , a n d w hich
h a s n p t b e en b a rre d , o r released, a s h e re in p ro v id e d . I n a n y e v en t,
o n e -th ird sh all d escen d to th e w idow o r w id o w er free from th e p a y ­
m e n ts of d e b ts. 2 . T h e re m a in d e r of w hich h e dies seized, a n d if
n o w idow er, o r widow,' th e w hole, to g e th e r w ith a ll w ild la n d s, sh all
d escen d in e q u a l sh ares to h is ch ild ren , a n d to th e law ful issue of a
d eceased ch ild b y rig h t of re p re s e n ta tio n . I f no ch ild is liv in g a t
th e tim e of his d e a th , to a ll h is lin e a l d e sc e n d an ts; e q u ally , if all a re
th e sam e degree of k in d re d ; if n o t, a cc o rd in g to th e rig h t of re p re ­
s e n ta tio n . 3. If n o su ch issue, I t d escen d s to h is fa th e r a n d m o th e r
In e q u al sh ares. 4. I f n o su ch issue, o r fa th e r, It de sc e n d s o ne-half
to h is m o th e r. I f no su ch issue o r m o th e r, i t descends o ne-balf to
h is fa th e r. I n e ith e r case, th e re m a in d e r, o r if n o su ch issue, fa th e r
o r m o th e r, th e w hole descends in e q u a l sh ares to his b ro th e rs a n d
sisters, a n d w h en a b ro th e r o r s iste r h a s d ied , to his o r h e r c h ild re n
o r g ra n d c h ild re n b y rig h t of re p re s e n ta tio n . 5. I f no su ch issue,
fa th e r, b ro th e r o r siste r, i t descends to h is m o th e r. I f no su ch issue,
m o th e r, b ro th e r o r siste r, it d escen d s to h is fa th e r. I n e ith e r case,
to th e e x clu sio n o f th e issue of d eceased b ro th e rs a n d siste rs. 6 . I f
n o su ch Issue, fa th e r, m o th e r, b ro th e r o r siste r, it descends to h is n e x t
o f k in in e q u a l d eg ree; w h en th e y claim th ro u g h d ifferen t a n ce sto rs,
to th o s e c laim in g th ro u g h a n e a re r a n ce sto r, in preference to th o se
cla im in g th ro u g h a n a n c e s to r m o re re m o te . 7. W h en a m in o r dies
u n m a rrie d , le a v in g p ro p e rty in h e rite d fro m e ith e r o f h is p a re n ts. It
d e sc e n d s to th e o th e r ch ild re n of th e sam e p a re n t, a n d tn e issue of


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

th o se d eceased; in e q u al sh ares if a ll a re of th e sam e degree of k in d re d ;
o therw ise, a cc o rd in g to th e rig h t of re p re s e n ta tio n . 8 . I f théin te s ta te leav es n o w idow er, w idow o r k in d re d , i t e sc h e ats to theS ta te . A n ille g itim a te child is a n h e ir of its p a re n ts w ho in te rm a rry ;
also of its m o th e r, also of its fa th e r, w ho a d o p ts i t o r acknow ledge»
i t before a m a g is tra te ; a n d in a n y case w here th e ch ild is tre a te d a»
a n h e ir i t in h e rits fro m th e lin eal a n d c o lla te ra l k in d re d of th e p a re n t,
a n d th e y fro m it. (See W ills.)
E x e c u t i o n s Issue a f te r tw e n ty -fo u r h o u rs fro m re n d itio n of ju d g ­
m e n t, re tu rn a b le in th re e m o n th s, renew able w ith in te n y e a rs a fte r.
N o s ta y e x ce p t b y o rd e r of c o u rt fo r cau se a n d one y e a r a g a in st a b s e n t
d e fe n d a n ts unless b o n d filed; le v ie d o n re a l e s ta te b y a p p ra isa l a n d
e x te n t, also o n re a l e s ta te a n d in te re s ts in th e sam e a n d franchise»
a n d p e rso n al p ro p e rty b y sale; m o n e y a n d , b y co n sen t, c irc u la tin g
n o te s a p p lie d d ire c tly . R ea l e s ta te sold o n e x ec u tio n m a y be re­
deem ed in one y e a r. A tta c h in g c re d ito r m a y w ith in fo rty -e ig h t
h o u rs ïa fte r n o tic e redeem p e rso n al p ro p e rty of d e b to r w hich is su b jec t
to m o rtg ag e pledge, o r lie n ; m a y also re d e em re a l e s ta te s u b je c t to
m o rtg ag e o r o th e r lien. Special provisio n s fo r re d e m p tio n of certain
o th e r special classes of p ro p e rty , su ch a s b u ild in g s on leased lands,
franchises,' etc.
E x e m p t i o n s f r o m A t t a c h m e n t a n d E x e c u t i o n . H om esteads,
n o t exceeding in v a lu e $500, w hen d u ly re g iste re d ; d e b to r’s a p p arel,
n e ce ssa ry fu rn itu re fo r fam ily , n o t exceeding In v a lu e $100; b e d a n d
b e d d in g fo r each tw o p erso n s; fa m ily p o rtr a its , bibles, school book»
In u se; S ta te s ta tu te s ; lib ra ry , $150: re g u la r pew ; cook sto v e a n d
iro n w a rm in g sto v es; ch arco al, tw e lv e cords of w ood, five to n s a n ­
th ra c ite coal, fifty b ushels b itu m in o u s coal, $ 1 0 w o rth of lu m b e r,
w ood, o r b a rk ; p ro d u c e of fa rm s till h a rv e ste d ; b a rre l of flour, th ir ty
bush els of c o m a n d grain, p o ta to e s fo r fam ily , o n e-h alf a cre of flax
a n d m a n u fa c tu re s th e re fro m fo r fa m ily ; too ls of tra d e , a n d m a te ria l»
a n d sto ck , $50; sew ing m ach in e, $100; p a ir w o rking c a ttle , o r p a ir
m ules, o r one o r tw o horses, $300; h a y to keep th e m ; h a rn e ss for
each h o rse a n d m ules, $ 2 0 ; h o rse sled o r o x sled, $ 2 0 ; dom estio fow l,
$50; tw o sw ine, one cow a n d o ne heifer, if no oxen, h o rse o r m ule,
tw o cow s; te n sheep, tn e ir wool, th e ir ia m b s u n til one y e a r o ld ; h a y
to keep th e m a n d c a ttle ; plow , c a rt, tru c k o r ex p ress w agon, h a rro w ,
y o k e w ith bow s, rin g a n d stap le, tw o chains, m ow ing m a c h in e ; fish­
in g b o a t o i tw o to n s ; d e b to r m a y ele ct if n e h a s m o re th a n is e x em p t.
L ife a n d a c c id e n t policies a re e x e m p t from c re d ito rs, e x c e p t a n y
excess of $150 p e r y e a r p re m iu m p a id w ith in tw o y e ars, e x c e p t suit»
fo r necessaries. (See A tta c h m e n t.)
F o r e i g n J u d g m e n t . A c tio n of d e b t lies on a foreign ju d g m e n t
a n d re c o rd of i t is p rim a facie evidence of In d eb ted n ess. Is conclusive
e x c e p t fo r fra u d w hen given b y c o u rt h a v in g ju risd ic tio n of p a rtie »
a n d s u b je c t m a tte r.
F r a u d . U su al com m on law ru les a s to w h a t c o n stitu te s fraud»
fr a u d u le n t re p re sen ta tio n s, e tc .; also s ta tu to r y p e n alties fo r fraud»
c h e a ts, e tc . C ourt of e q u ity h a s p o w e r to afford relief. S ta tu to ry provisio n s to p re v e n t sale in b u lk of p a r t o r w hole of s to ck of m er­
c h an d ise in fra u d of cred ito rs.
F r a u d s a n d P e r j u r i e s . N o a c tio n sh all be m a in ta in e d u p o n a n y
c o n tra c t to charge a n e x e c u to r o r a d m in is tra to r u p o n a n y
special pro m ise to a n sw e r dam ag es o u t of h is ow n e s ta te ; n o r to
c h arg e a n y p erso n u p o n a n y special prom ise to a n sw e r fo r th e d e b t,
d e fa u lt, o r m isdoings of a n o th e r; n o r to charge a n y p e rso n u p o n a n
a g re em en t m a d e in co n sid e ra tio n of m a rria g e n o r to c h arg e a n y p e r­
son u p o n a n y c o n tra c t fo r th e sale of la n d s, te n e m e n ts , o r h e re d ita ­
m e n ts, o r of a n y In te re s t th e re in ; n o r to c h arg e a n y p erso n u p o n a n y
a g re e m e n t t h a t is n o t to be p erfo rm ed w ith in o ne y e a r fro m th e
m a k in g th e re o f; n o r to c h arg e a n y p e rso n u p o n a n y c o n tra c t to p a y
a d e b t a f te r d ischarge th e re fro m u n d e r b a n k ru p t law s of th e U n ite d
S ta te s o r assig n m e n t o r in so lv e n t law s of th is S ta te ; unless th e prom ise,
c o n tra c t, o r a g re em en t o r som e m e m o ra n d u m th e re o f is in w ritin g
a n d signed b y th e p a r ty to b e c h arg ed , o r his a g e n t. N o a c tio n s h all
b e m a in ta in e d o n a m in o r’s c o n tra c t u nless ra tified b y him in w ritin g
a f te r becom ing tw e n ty -o n e y e ars of age, e x c e p t th e c o n tra c t b e fo r
necessaries o r real e s ta te w here h e h a s received title a n d obtained:
b enefit. N o c o n tra c t fo r sale of goods, e tc ., of $30 o r m o re in v a lu e
is v a lid u nless p u rc h a se r a c c e p ts o r receives a p o rtio n of th e goods
o r gives so m eth in g to b in d th e b a rg a in , o r fn p a r t p a y m e n t th ereo f,
o r som e m e m o ra n d u m is m a d e a n d signed b y p a r ty ch arg ed o r h is
a g e n t. C o n tra c ts w h ereb y one becom es a g e n t fo r sale of la n d s becom e
v o id in one y e a r u nless tim e fo r te rm in a tio n d e finitely s ta te d .
G a r n i s h m e n t . (See A tta c h m e n t.)
H u s b a n d a n d W ife . E a c h m a y h o ld a n d d e al w ith p ro p e rty
in d iv id u a lly , su b je c t to rig h t of d e sc e n t in real e sta te . (See E s ta te s
of D eceased P ersons.) H u sb a n d n o t lia b le fo r d e b ts of w ife con­
tra c te d before m arriag e, n o r a fte rw a rd in h e r ow n n am e, n o r fo r h e r
to rts . E q u ity C o u rt’ nas special ju risd ic tio n o f d isp u te s betw een
h u s b a n d a n d wife re la tin g to p ro p e rty . A fte r p e titio n to a n d d e c re e
b y p ro b a te c o u rt e ith e r m a y convey re a l p ro p e rty as if sole, a n d o th e r
is b a rre d of all rig h t b y d e sc e n t w here d e se rte d w ith o u t ju s t c a u s e
o r if a c tu a lly living a p a r t fo r ju s t cause, a n d d esertio n o r living a p a r t
h a s c o n tin u e d one year.
I n t e r e s t . Six p e r c e n t o r a n y o th e r ra te a g re ed u p o n in w ritin g ;
ju d g m e n ts , sam e ra te ; a cc o u n ts a n d d e b ts n o t on tim e b e a r in te re s t
fro m d e m a n d . Special ra te in tim e n o te s does n o t c o n tin u e a fte r
m a tu rity , unless so p ro v id e d ; n o r a f te r ju d g m e n t in a n y case; nou s u ry law s. O n lo a n s fo r less th a n $200, secured b y m o rtg ag e o r
pledge of perso n al p ro p e rty , th e ra te sh all n o t exceed 3 p e r c e n t p e r
m o n th fo r first th re e m o n th s, a n d 15 p e r c e n t p e r a n n u m th e re a fte r.
L o a n s n e g o tia te d in th is s ta te b y a g e n t o f n o n -resid e n t bo rro w er
w ith in te n t to ev ad e u s u ry law s o f s ta te w here bo rro w er resides a re
voidable.
J u d g m e n t s . A t law ; b y g eneral o rd e r a t e n d of te rm on a ll case»
w here v e rd ic t o r d e fa u lt, u nless s ta y e d b y proceedings fo r n ew tria l,
o r c o n tin u e d fo r ju d g m e n t b y p la in tiff; in e q u ity , o n ly b y d ecree
signed b y ju stic e. No lien e x c e p t b y v irtu e of a tta c h m e n t o n m esn e
process (q. v.) a n d w here specially p ro v id e d b y law .
L ie n s . (V olum inous S ta tu te P rovisions, fo r M echanics, M aterial*
M en, H o te l a n d B o arding-H ouse K eepers, S ta b le K eepers, A g ister,
etc.)
L i m i t a t i o n o f A c tio n s . S ix y e a rs: d e b t o n u n sea le d c o n tra c t o r
lia b ility (except ju d g m en ts) ; a ctio n s u p o n ju d g m e n ts o u t of S ta te of
c o u rt n o t of reco rd ; fo r a rre a rs of re n t; of a cc o u n t, a ssu m p sit, o r
case on c o n tra c t o r lia b ility ex p ress o r im p lied ; w a ste ; tre sp a ss q u .
cl. a n d d . b. a .; re p le v in ; case, e x c e p t s la n d e r a n d libel. F o u r y e ars:
a g a in st sheriff. Tw o y e a rs: a ss a u lt a n d b a tte ry , false im p riso n m e n t,
s lan d e r, libel a n d p e n a lty . O ne y e a r: escape, scire facias a n d on
recognizance. E ig h te e n m o n th s : s to le n b o nds a n d coupons, e x ce p t
b y ow ner. T w e n ty y e a rs: w itn essed n o te s, b a n k bills, specialities,
real a ctio n , o th e r ju d g m e n t a n d a ll o th e r p e rso n al a ctio n s. S u it
b eg u n w hen w rit w as m ad e. In c a p a c ity of p la in tiff, d e a th of e ith e r
p a r ty before o r w ith in th ir ty d a y s a f te r e x p ira tio n of tim e , fra u d u ­
le n t co n ce a lm e n t of a ctio n , a bsence fro m S ta te w hen cau se a cc ru e s
o r residence o u t of th e S ta te a n d a bsence a fte rw a rd s, e x te n d s tim e .
A c tio n s b a rre d w here b o th p a rtie s lived a re b a rre d h e re . N ew
prom ise m u s t be in w ritin g o r p a r t p a y m e n t m u s t be m ad e, to e x te n d
tim e . A g a in st e x ec u to rs a n d a d m in is tra to rs , tw e n ty m o n th s a fte r
filing of a ffid a v it of n o tic e given of a p p o in tm e n t of e x e c u to r o r a d m in ­
is tra to r, u nless f u r th e r asse ts o r claim n o t m a tu re d . A g a in st h e irs
o r devisees, one y e a r a f te r claim a c c ru e d ; re m e d y in e q u ity , If n o t
p ro se cu te d w ith in tim e lim ite d a n d if w ith o u t c u lp ab le neglect.

B A N K IN G A N D

C O M M E R C IA L L A W S — M A R Y L A N D

L i m i t e d P a r t n e r s h i p . M ay consist o f one o r m ore g en eral p a r t­
n e rs a n d one o r m ore special. S pecial sh all c o n trib u te specific a m o u n t
of c a p ita l o r p ro p e rty a t cash valu e, a n d b e n o t lia b le fo r d e b ts
bey o n d t h a t a m o u n t. G eneral p a rtn e rs m u s t tra n s a c t th e business.
M a r r ie d W o m e n h a v e sam e rig h ts a n d lia b ilities a s to p ro p e rty
c o n tra c ts a n d a ll s u its a s m en. W ife’s p ro p e rty n o t liab le fo r h e r
h u s b a n d ’s d e b ts, n o r his liab le fo r h e r p rio r d e b ts n o r fo r o th e rs m ade
on h e r c re d it. She m a y su e a n d b e su ed a s if sole. M ay n o t be
p a rtn e r of h u s b a n d a n d n o t lia b le fo r fa m ily expense e x ce p t b y express
prom ise. (See A rrest, also D ow er, also E s ta te s o f D eceased P ersons,
also H u sb a n d a n d W ife.)
M o r tg a g e s . Of re a l e s ta te : ex ec u te d a n d acknow ledged a s deeds
a n d m u s t b e reco rd ed a s to th ir d p a rtie s ; co n v ey fee w ith co n d itio n
of defeasance. Foreclosed w ith o u t possession b y serv in g o r a d v e r­
tisin g no tice, o r b y possession o b ta in e d p eaceab ly , o r b y co n sen t, o r
b y s u it. R ed e m p tio n in o ne y e a r fro m n o tic e o r possession; pow er
of sale m o rtg ag es n o t a u th o riz e d b y s ta tu te a n d n o t m u c h used.
S uprem e c o u rt m a y a u th o riz e a m o rtg ag e b y a p erso n in possession
of a n e sta te su b je c t to a c o n tin g e n t rem ain d er, e x ec u to ry devise, o r
pow er of a p p o in tm e n t, a n d su ch m o rtg ag e is bin d in g on a ll p a rtie s .
C h a tte l m o rtg ag es unless a n d u n til possession ta k e n a n d re ta in e d b y
m ortgag ee to b e good a g ain st th ird p a rtie s m u s t b e reco rd ed in to w n
c le rk ’s office wlfere m o rtg ag o r resides w hen m o rtg ag e is given; or, if
a n y of m ortgagees a re n on-residents, th e n in re g istry o f deeds in
c o u n ty w here m o rtg ag ee resides, w hen m o rtg ag e is given. M o rt­
gage on household fu rn itu re m u s t s ta te a m o u n t o f loan, in te re s t
ra te , a n d c o st o f p ro cu rin g loan. A greem ents, w h e th er in fo rm of
note, lease, c o n d itio n al sale, etc., o r otherw ise, t h a t c h a tte ls b arg ain ed
a n d delivered shall re m a in p ro p e rty o f seller till p a id for, m u s t b e in
w riting a n d reco rd ed a s c h a tte l m o rtg ag es; su ch m o rtg ag es a n d n o tes
foreclosed b y six ty d a y s' n o tice to m o rtg ag o r o r assignee o f record,
or, if o u t o f S ta te , b y p u b licatio n ; re d e m p tio n in six ty d ay s. C ol­
la te ra ls pledged on notes, etc., o r for th e perfo rm an ce o f a n y th in g ,
a fte r fa ilu re to p a y o r p erfo rm b y th e pledgor, m a y b e sold b y th e
pledgee, h e first giving w ritte n n o tice to th e p ledgor o f th e proposed
sale, or if h is residence is unknow n, b y p u b licatio n o f n o tice once a
w eek for th re e successive w eeks in a n ew sp ap er in th e c ity o r to w n
w here th e pledgee resides, reco rd in g said n o tice a n d affid av it o f service
of sam e in th e clerk ’s office o f c ity o r to w n w here th e pledgee resides,
a n d a fte r th e ex p iratio n o f th e six ty d a y s fro m th e tim e o f said reco rd­
ing.
N e g o tia b le I n s t r u m e n t s . D ays of grace abo lish ed e x ce p t a s to
sig h t d ra fts . F allin g d u e on S u n d a y o r b a n k h o lid a y p a y ab le a n d
iresentable fo r p a y m e n t on secu lar o r business d a y n e x t succeeding,
f h o lid a y falls on S u n d a y th e n follow ing M onday is deem ed b a n k
ho lid ay . On n o te s p a y a b le a t fixed p lace on d e m a n d a t o r a f te r a
tim e c erta in , no reco v ery unless d em an d p ro v ed th e re before su its
usu al d em an d a n d n o tic e to ch arg e in d o rser; n o ta ria l p ro te s t proves
It; b u t one Indorsing n o te a t in c e p tio n before p ay ee does is a m ak er.
W aiv er of d em an d a n d n otice, acc e p ta n ce of bill, d ra ft, o r o rd e r m u s t
be in w ritin g a n d signed. R eco v ery fro m in d o rse r w ith o u t su ing
m aker. R a te of d am ag es on p ro te s te d bills of $100 o r m ore p a y ab le
in th is c o u n try , 1 to 9 p e r c en t acco rd in g to place. N eg o tiab le p a p e r
presum ed to b e ta k e n in p a y m e n t of d e b t o r lia b ility fo r w hich i t is
given, unless c re d ito r w ould th u s lose sec u rity h e o th erw ise w ould
h av e h a d . Legal h o lid ay s a re J a n u a ry 1; F e b ru a ry 22; A p ril 19;
M ay 30; J u ly 4; first M onday in S ep tem b er; T h an k sg iv in g ; C hristm as,
a n d A rb o r D ay . I f n o te read s ” 1 prom ise to p a y ” all signers a re
Jo in tly a n d sev erally liab le.
P a r t n e r s h i p . P e rso n a l p ro p e rty of p a rtn e rsh ip , o r In te re s t of
p a rtn e r th e re in , e x em p t from a tta c h m e n t on m esne process, o r seizure
on ex ecu tio n fo r a n y Ind iv id u al lia b ility o r such p a rtn e r; b u t Is s ta tu ­
to ry provision for reach in g sam e a fte r ju d g m e n t. P a rtn e rs in m ercan­
tile e n terp rise m u s t file sw orn certificate w ith c ity o r to w n clerk
w here business to b e carrie d on, show ing n am es a n d residences of
p a rtn e rs, n a tu re o f business a n d p a rtn e rsh ip nam e. (See L im ited
P a rtn e rsh ip .)
P o w e rs o f A t t o r n e y . U sual com m on law rules.
P r o b a t e L a w . (See E s ta te s of D eceased Persons.)
P r o t e s t . (See N e g o tiab le In stru m e n ts.)
R e p l e v in . Goods o r c h a tte ls w rongfully ta k e n o r d e ta in e d m a y
be replev ied b y ow ner o r p a rty e n title d to possession. R ep lev in b ond
m u s t be d o u b le th e v alu e of p ro p e rty replevied. I f dism issed w ith ­
o u t tria l, su it m a y b e b ro u g h t on th e Dond, m w hich s u it title m a y b e
show n to m itig a te d am ages.
T a x e s m a y be collected b y a rre s t, d istress, o r s u it. O n re a l e sta te
th e y a re a lien; proceedings to enforce b y sale begin u p o n n o n -p ay­
m e n t fo r n in e m o n th s; n o n -resid e n t ow ners h a v e o ne y e a r from sale
to redeem b y p a y in g ta x , costs, a n d 10 p e r c en t In te re st fro m d a y of
sale; resid en ts, tw o y e ars w ith 10 p e r c en t in te re s t fro m d a y of sale
on w hole su m of ta x a n d costs. L a n d on w hich ta x e s a re u n p aid ,
sold on first M o n d a y in F e b ru a ry in y e ar succeeding th e y e a r in w hich
ta x w as assessed; sale is of sm allest fra c tio n a l p a r t of in te re s t to one
w ho w ill p a y ta x e s, in te re st, a n d costs th e re fo r. S ta te ta x assessed
b y b o a rd of s ta te assessors on gross re c eip ts of ra ilro ad s a n d express
com panies, a n d te le g ra p h a n d telep h o n e lines, collected b y suit.
C orporations, o th e r th a n th o se especially p ro v id ed for, p a y a franchise
ta x of $5.00 if a u th o riz e d c ap ita l does n o t exceed $50,000.00; of
$10.00, if c ap ita l does n o t exceed $200,000.00; of $50.00, if c ap ital
does n o t exceed $500,000.00; of $75.00, if c a p ita l does n o t exceed
$1,000,000.00; a n d th e fu rth e r su m of $50.00 fo r each $1,000,000.00,
or fra c tio n th ereo f, in excess of $1,000,000.00. Foreign c o rp o rations
p a y a n n u a l license fee of $ 10 . in h e rita n c e ta x ran g in g fro m 1 to 7
e r cen t, acco rd in g to degree of re la tio n sh ip a n d a m o u n t of b eq u est.
500 e x em p t in all cases, a n d $10,000 e x em p t in rcase of c erta in n e ar
re la tiv e s. Special ex cep tio n s a n d e x em p tio n s fro m assessm ent, a n d
special provisions for ta x in g perso n al p ro p e rty situ a te d h ere b u t
ow ned o u t of th e S ta te . R eal e s ta te m o rtg ag es e x em p t. (See
B anks.)
W a g e s . W eek ly p a y m e n t re q u ire d in m o st in d u stries.
(See
A ssignm ents, A tta c h m en t.)
W a r e h o u s e R e c e ip ts . H o ld e r deem ed tru e o w n er so fa r as to
give v a lid ity to c o n tra c t fo r sale of m erch an d ise covered, o r to p ro te c t
one a c tin g on fa ith of such o w nership; b u t one ta k in g fro m a g e n t as
se c u rity fo r a n te c e d e n t d e b t g ets n o g re a te r rig h t th a n a g en t. T itle
to p ro p e rty passed b y en d o rsem en t, b u t n o t in b la n k , to p u rc h a se r
o r pledgee in good fa ith . P ro p e rty in w arehouse m a y be a tta c h e d
a s th a t of perso n n am ed in receip t, o r of la s t endorsee showm b y books
of w arehousem an. C om m on law ru les p rev ail generally.
W U ls. W ills m u st be in w ritin g signed b y th e te s ta to r, o r a t his
re q u e st b y som e perso n in his presence, a n d subscribed in his presence
b y th re e w itnesses in p resence of each o th e r, m a y b e m ad e b y a n y
person of ag e a n d of so u n d m in d , a n d m a y dispose of a ll p ro p e rty .
W ills ex ec u te d in a n o th e r S ta te o r c o u n try acco rd in g to law s th ereof,
m a y be p ro v ed a n d allow ed in th is S ta te in th e c o u n ty w here th e
te s ta to r h a d his residence a t tim e of decease; if p ro v ed w ith o u t th is
S ta te (a t h is dom icile), m a y b e allow ed in a n y c o u n ty h e re w here he
h a s p ro p e rty . W idow o r w idow er m a y w ith in six m o n th s w aive
provisio n in w ill of deceased h u sb a n d o r wife a n d claim sam e sh are
in personal p ro p e rty as w ould h a v e h a d in case deceased died in te s ta te .
(B u t see H u sb a n d a n d W ife.)
N u n c u p ativ e w ill m u s t b e reduced to w ritin g w ith in six d ay s, o r
p roved b y te stim o n y w ith in six m o n th s, fro m tim e w ords sp o k en.
N o le tte rs in su ch till fo u rtee n d a y s a fte r decease of te s ta to r. N o t
effectual to dispose of m ore th a n $ 100.00 w o rth of p ro p e rty unless
p roved b y th re e w itnesses w ho a cted a t te s ta to r ’s req u est.

f


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

1431

S Y N O P S IS OF

TH E LA W S OF M ARYLAND
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S
R evised b y H in k l e y , H is k y & B u r g e e , A tto rn e y s a t
L aw , B altim o re . (See C ard in A tto rn e y s ’ L ist.)
I n g e n e r a l. B ag b y ’s A n n o ta te d C ode (1911) a n d Supplem en­
ta r y V olum e (1914) em brace th e P u b lic G eneral L aw s o f M a ry la n d ,
including th o se of th e 1914 session. B y s ta tu te , th e C ode o f 1911
h a s been m a d e evidence; special reference to s ta tu te s in th e follow­
ing is th e re fo re unnecessary.
A c k n o w l e d g m e n ts of conveyances of a n y in te re s t in real o r lease­
hold p ro p e rty fo r a b o v e seven y ears, m a y be m a d e w ith in th e S ta te ,
a n d In th e c o u n ty o r c ity in w hich th e la n d , o r a n y p a r t of it, lies,
before a n o ta ry public, ju stic e of th e peace, a ju d g e of th e o rp h a n s'
c o u rt, a ju d g e of th e c irc u it c o u rt of a n y c o u n ty , o r a ju d g e of th e
suprem e ben ch of B altim ore c ity . I f w ith in th e S ta te , b u t o u t of
th e c o u n ty In w hich th e e sta te conveyed lies, th e y m a y be m ad e
before a ju d g e of a n y c irc u it c o u rt fo r th e c irc u it w here th e g ra n to r
m a y be, o r before a n y ju d g e of th e o rp h a n s ’ c o u rt fo r th e c ity o r
c o u n ty in w hich th e g ra n to r m a y be, n o ta ry public, o r a ju stic e of
th e peace; th e official c h a ra c te r of th e ju stic e m u s t be certified b y
th e clerk of th e c irc u it c o u rt of th e c o u n ty , o r su p erio r c o u rt of B a lti­
m ore city , u n d e r his official seal, o r a n y ju d g e of th e suprem e bench
of B altim o re c ity , if g ra n to r be in B altim o re city . I f w ith o u t th e
S ta te , th e y m a y be m ad e before a n o ta ry public, a ju d g e of a n y
c o u rt of th e U n ite d S ta te s, o r of a n y s ta te o r te rrito ry c o u rt h a v in g
a seal, o r a com m issioner of deeds fo r th is S ta te . T h e seal of th e
officer o r c o u rt to be affixed to th e certificate of acknow ledgm ent
in all cases. If acknow ledged w ith o u t th e U n ite d S ta te s, th e acknow l­
e d g m e n t m a y be m ade before a n y m in iste r, consul general, vice o r
c o n su la r a g e n t o r d e p u ty , o r a n o ta ry public, o r a com m issioner to
ta k e acknow ledgm ents for S ta te o f M a ry la n d . N o sep a ra te exam in­
a tio n o f a m arried w om an is req u ired . D efective acknow ledgm ents
cured. (See C onveyances.)
A c tio n s . T h e form s of a ctio n s, w hich still sav o r of th e com m on
law a re now v e ry sim ple, a n y p lain s ta te m e n t of fa c ts c o n stitu tin g
a good cause of a ctio n b e ing sufficient. A m en d m en t is allow ed a t
a n y tim e Before v e rd ic t.
E q u ita b le defenses a re now allow ed
to be m a d e in a c o u rt of law , a lth o u g h th e re a re s till law co u rts and
e q u ity co u rts h a v in g different a n d d is tin c t jurisd ictio n . Speedy
ju d g m e n t A cts a re in force in B altim o re C ity a n d in m a n y o f th e
C ounties. (See Suits.)
A d m i n i s t r a t i o n o f E s t a t e s . T h e o rp h a n s’ c o u rt of th e counties
an d th e o rp h a n s’ c o u rt of B altim o re c ity a re th e co u rts of p ro b a te .
I n cases w here d e ce d e n t le ft a will, le tte rs a re g ra n te d to e x ec u to r
a n d e x ec u trix n a m e d in th e w ill. I n g ra n tin g le tte rs of a d m in is tra ­
tio n , w here d e ce d e n t d ied w ith o u t leav in g will, le tte rs a re g ra n te d :
1. T o w idow o r child o r children; 2. G randchild; 3. F a th e r; 4.
B ro th e rs a n d sisters; 5. M other; 6 . N e x t of k in ; 7. L a rg e st c re d ito r
ap p ly in g fo r le tte rs . I n each class, m ales a re p referred to fem ales.
B ond Is re q u ire d w ith tw o sureties, o r one of c e rta in local s u re ty
com panies w here au th o riz e d b y th e ir c h a rte r to a c t a s sole su re ty .
W h en te s ta to r re q u e sts in w ill t h a t e x ec u to r be excused from giving
b ond, c o u rt only req u ires n o m in a l bon d fo r a m o u n t sufficient to p a y
e stim a te d d e b ts. Six m o n th s n o tic e to cred ito rs m u s t be given by
p u b lic a tio n before e s ta te is d is trib u te d . P erso n al p ro p e rty m u s t be
a p p ra ise d , a cco u n ted fo r a n d d is trib u te d th ro u g h th e o rp h a n s’ c o u rt
of th e c o u n ty o r c ity in w hich de ce d e n t resided. All sales m u s t
be a u th o riz e d a n d ratified b y th e o rp h a n s’ co u rt. B y A c t of 1896,
Ch. 246, a b o v e provisions w ere m a d e ap p licab le to “ e sta te s
of p ersons a b se n t a n d u n h e ard of fo r a b o v e seven y e ars.” T h is a c t
h a s been h eld u n c o n stitu tio n a l. R e-enacted w ith a m endm ents.
(A cts 1908, Ch. 125.) T his a c t c o n stitu tio n a l b y decision of C ourt
of A ppeals in case of Savings B an k vs. W eeks 110 M d. 78.
A f f id a v its .
(See A cknow ledgm ents.! N o p a rtic u la r form neces­
sary , b u t w hoever c an ta k e a n acknow ledgm ent c an ta k e a n a ffid a v it.
A ffidavits alw ays re q u ire d in a m o rtg ag e a s to th e b o n a flaes of
m o rtg ag e c onsideration; a n d th e p a y m e n t of ta x on a n n u a l in te re s t
in c e rta in counties. (See M ortgages.)
A lie n s . A llens, n o t enem ies, m a y ta k e a n d h o ld la n d s, te n e m en ts,
a n d h e re d ita m e n ts a cq u ire d b y p u rch ase, o r to w hich th e y w ould,
if citizens, be e n title d b y descent, a n d m a y sell, devise, o r dispose
of th e sam e o r tra n s m it th e sam e to th e ir heirs as fu lly a n d effectually
a n d in th e sam e m a n n e r a s if b y b irth th e y w ere citizens of th is S ta te .
A r b i t r a t i o n . D isputes betw een p a rtie s m a y b e cond u cted b y
a n y ju d g e o r ju stic e of th e peace m u tu a lly agreed u pon. Special
agreem ents fo r a rb itr a tio n of such d isp u tes to be v alid . P a rtie s m a y
be rep resen ted b y a n a tto rn e y , a n d aw ard of a r b itr a to r o r a rb itra to rs
to be a ju d g m e n t, a n d c o u rt m a y give ju d g m e n t a n d issu e e x ecution
on th e aw ard . A c t 1904, Ch. 671, p rovides a m eans fo r th e se ttle m e n t
of d isputes betw een em ployers a n d em ployees b y m e d ia tio n o r volun­
ta r y a rb itra tio n .
A r r e s t. No a rre s t fo r d e b ts in th is S ta te . I n crim in al cases a
sentence m a y be passed, im posing a sum of m oney as a fine, a n d
th e n in lie u of p a y m e n t b y p a rty , of fine im posed, he is liable to
Im prisonm ent.
A t t a c h m e n t s fo r d e b t (See A c t 1890, C hap. 549), o r fo r u n liq u i­
d a te d dam ages, e ith e r in c o n tra c t o r to rt, c an be o b ta in e d in all
cases w hen th e d e fe n d an t is a n o n -resid e n t o r h a s absconded, affidavit
being first m ad e b y th e p lain tiff to th e correctness of his claim a n d
th e fa c t t h a t th e d e fe n d an t is a n o n -resid e n t o r h a s absconded. T hey
m a y be also o b ta in e d in connection w ith a n original process w hen
th e c re d ito r o r som e one In h is b ehalf shall give b ond in double th e
a m o u n t of th e d e b t, w ith su re tie s to be a p p ro v e d b y th e clerk, a n d
m ake affidavit before th e clerk of th e c o u rt w here th e s u it Is b ro u g h t
th a t th e d e fe n d an t is bo n a fide In d e b te d to th e p lain tiff in th e sum
claim ed, a n d th a t th e plain tiff know s o r h a s good reason to believe
th a t th e d e b to r has absconded o r is a b o u t to abscond fro m th e S ta te ,
o r t h a t th e d e fe n d an t h a s assigned, disposed of, o r concealed, o r
is a b o u t to assign, dispose of, o r conceal, h is p ro p e rty , o r som e p o rtio n
thereof, w ith in te n t to d efra u d h is creditors, o r th a t th e d e fe n d an t
frau d u le n tly c o n tra c ted th e d e b t o r in c u rre d th e o b ligation; o r th a t
th e d e fe n d a n t has rem oved o r is a b o u t to rem ove his p ro p e rty , o r
som e p o rtio n thereof, o u t of th is S ta te , w ith In te n t to d efra u d cred ito rs
an d th e a tta c h m e n t m a y be m a in ta in e d , alth o u g h th e d e b t o r obliga­
tio n u p o n w hich th e a ctio n Is b ro u g h t m a y n o t h a v e m a tu re d , b u t

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B A N K I N G A N D C O M M E R C IA L L A W S — M A R Y L A N D

th e d a te o t th e m a tu r ity o f th e d e b t o r o b lig a tio n m u s t be s e t fo rth
19, th e affid av it (A ct 1894, Ch. 648). A c la im a n t m a y h a v e th e
a tta c h e d p ro p e rty released b y filing a b o n d in do u b le th e a m o u n t
of th e a p p ra ise m e n t. A n y k in d of p ro p e rty o r c re d its belonging
to th e d e fe n d a n t, In th e D lalntiff’s ow n h a n d s o r In th e h a n d s of a n y
one else m a y b e a tta c h e d . T h e re is a special provision fo r c a p ita l
s to ck o f a c o rp o ra tio n . T h e certificate its e lf m u s t be seized. C re d its
n o t d u e m a y b e a tta c h e d , b u t w ages, h ire, o r sa la ry n o t d u e c an
n o t b e a tta c h e d , a n d 90 p e r c e n t o f w ages, hire, or sa la ry d u e shall
a lw ay s be^ ex em p t. (A ct 1908, C h: 665.) Im p riso n m e n t fo r d e b t
is abolished. D e fe n d a n t m a y b e su ed w h erev er h e does business.
I n a d d itio n to a tta c h m e n ts a g a in st n o n -re sid e n ts o r a b sc o n d in g d e b to rs
fo r d e b t (i. e., a liq u id a te d su m ), a s h e re to fo re , a tta c h m e n ts m a y
n o w be issu ed a g a in st su ch d e b to rs in cases a risin g fro m c o n tra c ts
w hen th e d a m a g es a re u n liq u id a te d , a n d in a c tio n s f o r w rongs in d e ­
p e n d e n t of c o n tra c t, b u t in su ch cases no a tta c h m e n ts c an be issued
u n til a d e c la ra tio n is filed s e ttin g o u t sp ecially a n d in d e ta il th e
b re a ch of th e c o n tra c t c o m p lain ed o f o r th e to r t a c tu a lly c o m m itte d ,
verified b y th e a ffid a v it of th e p la in tiff o r som e one in his behalf,
a n d u n til a b o n d s h all b e filed sim ila r to th e b o n d re q u ire d 'iú a tta c h ­
m e n ts fo r fra u d . (C ode A rt. 9.) A ll p a p ers in a tta c h m e n t p ro ­
ceedings c a n n ow b e am en d ed , a s in a n y o th e r a ctio n s a t law . (A ct
1898, C h. 44.)
B a n k s . T h e A ct o f 1910, a s a m e n d ed b y th e A cts o f 1912 a n d
1914, m a d e im p o r ta n t ch an g es in th e b a n k in g law s o f th is S ta te .
T h e law n ow p ro v id es fo r th e a p p o in tm e n t o f a B a n k C om m issioner
w ith b ro a d pow ers fo r th e ex am in atio n o f all b a n k in g in s titu tio n s
in th is S ta te o th e r th a n N a tio n a l B an k s a n d a n an n u al re p o rt th e re o n
to th e G overnor. W h en e v e r c ap ita l is re d u c ed b y im p a irm e n t
com m issioner m a y re q u ire B a n k to m a k e su ch deficiency good w ith in
s ix ty d ay s, a n d u p o n fa ilu re to d o so m a y ta k e possession o f p ro p e rty
a n d b u s in e s s -o f su ch in s titu tio n a n d re ta in possession u n til affairs
a re finally liq u id a te d . T h is also ap p lies w here th e business is con­
d u c te d in a n u n safe o r u n a u th o riz e d m a n n e r. T h e re q u ire m e n ts
fo r th e in c o rp o ra tio n o f su ch in s titu tio n s a re fu lly s e t fo rth in th e
a c t. T h is a c t also p ro v id es fo r th e in c o rp o ra tio n a n d supervision
b y th e S ta te o f sav in g in s titu tio n s a n d t r u s t com panies. •
C o lla te r a l s . T h e c o n v ersio n b y a n y b a n k e r, b ro k e r, m e rc h a n t,
a tto rn e y , o r a g e n t of- c o lla terals is m a d e a m isd em ean o r. (See Code,
A rt. 27, Sec. 93.)
•
C o n t r a c t s . T h e n o rm a l C ondition of a ll p ersons is o ne in w hich
th e y a re cap a b le of m a k in g a n y c o n tra c t. T h e fo u rth a n d se v e n te e n th
sectio n s of th e S ta tu te of F ra u d s a re in force in M ary lan d . A cts 1900,
Ch. 362, m a k e it no lo n g e r n e ce ssa ry to show t h a t th e c o n sid e ra tio n
fo r a promise* to a n sw e r fo r th e d e b t of a n o th e r is in w ritin g . A
citiz en c a n n o t m a k e a c o n tra c t w ith a n a lie n en em y d u rin g th e
c o n tin u a n ce of h o s tilitie s ; b u t alien s, n o t enem ies, m a y c o n tra c t a n d
h o ld re a l p ro p e rty as fu lly a s citizen s. T h e la te r cases d ecide c o n tra c t
of in fa n ts to b e v o id ab le a n d n o t v o id ; a n d th e y a re cap a b le of
ra tific a tio n b y In fan ts on a rriv a l a t age of tw e n ty -o n e . T h e c o n tra c ts
of In fa n ts fo r n ecessaries a re b in d in g u p o n th e m . T h e c o n tra c t of
a lu n a tic is v o id a b le a n d n o t v o id .
T h e s ta tu te p ro v id es t h a t a
m a rrie d w o m an m a y en g ag e in b usiness, c o n tra c t, sue, a n d be sued
u p o n c o n tra c ts a n d to rts , a s if u n m a rrie d . (A cts 1898, Ch. 457.)
All g am b lin g c o n tra c ts a n d c o n tra c ts m a d e o n S u n d a y a re void.
C o n v e y a n c e s . No e s ta te o r title to a n y p ro p e rty ly in g w ith ­
in th is S ta te , fo r a n y p erio d a b o v e sev en y e ars, sh all p a ss o r ta k e
effect u n less th e d eed co n v ey in g th e sam e s h all be e x ec u te d , acknow l­
ed g ed , a n d reco rd ed .
(See Code, A rt. 21, Sec. 1.)
E v e ry deed
of re a l e s ta te sh all b e signed a n d sealed b y th e g ra n to r a n d b a rg a in o r,
a n d a tte s te d b y a t le a st one w itn ess. N o w o rd s of in h e rita n c e neces­
sa ry , b u t e v ery d eed sh all b e c o n stru ed to p a ss fee sim ple title unless
th e c o n tra ry a p p e a r. A scro ll w ith th e w o rd “ seal” th e re in b y w ay
of a seal, is sufficient. A deed m u s t b e reco rd ed w ith in six m o n th s
fro m d a te , in c o u n ty o r B altim o re C ity , w here la n d lies, b u t If reco rd ed
a f te r th is , d eed, w h ile v a lid b e tw ee n p a rtie s , is in v a lid a s to deeds
to b o n a fide p u rc h a se rs w ith o u t n o tic e reco rd ed p rio r th e re to . A b o d y
c o rp o ra te m u s t e m b o d y in th e d e ed itse lf th e a p p o in tm e n t of a n a t t o r ­
n e y to ack n o w led g e th e d e ed as a n d fo r th e c o rp o ra te a c t of said
c o rp o ra tio n o r h a v e it ack n o w led g ed b y th e P re s id e n t o r V ice-P resi­
d e n t w ith o u t su ch a p p o in tm e n t. V en d o rs’ lien m a y be released in
orig in al d eed o r u p o n reco rd s w h ere reco rd ed . (C ode A rt. 6 6 , Sec. 31).
C o n v ey an ces d efectiv ely ex ecu ted m a d e v a lid b y A cts 1908, C h. 105
a n d A c ts 1914, C h. 259 a n d C h. 421.
C o r p o r a tio n s a re o rg an ized u n d e r th e a u th o r ity of th e G eneral
In c o rp o ra tio n L aw , c o m p le tely revised, A c t 1908, C hap. 240. L ib eral
p ro v isio n s a re m a d e fo r g en eral In c o rp o ratio n : o n ly ex ce p tio n (for
m u n ic ip a l purposes) is in th e c o n stitu tio n . A ll c o rp o ra tio n s (u n d e r
th e g en eral law ) m u s t p a y a b o n u s ta x of o n e -e ig h th o í 1 p e r c en t
u p o n its a u th o riz e d c a p ita l s to c k a n d a n y increase. C o rp o ratio n s
h a v e p e rp e tu a l succession, m a y c a rry on b u siness a n y w h ere, m a y
issue b o n d s, a n d secu re th e m b y m o rtg ag e of all p ro p e rty in c lu d in g
fran ch ises. F o reig n c o rp o ra tio n s m u s t file lis t of re s id e n t sh a re ­
h o ld ers, a n d a m o u n t h eld . T h e c o rp o ra tio n ’s certific a te m u s t be filed
a n d $25 p a id ; a n n u a l ren ew al fee of $1 is c h arg ed . A ll co rp o ra tio n s,
n o t p a y in g a gross re c e ip t ta x (a lo n g e n u m e ra tio n ), s h a ll p a y a n
a n n u a l fran c h ise ta x on th e ir c a p ita l e m p lo y ed In th is S ta te , of 50
c en ts p e r $1,000 b u t n o less th a h $25. I f c a p ita l is o v e r $500,000
th e n o n e -fo u rth of 1 p e r c e n t on th e excess to $5,000,000, e tc . D om es­
tic c o rp o ra tio n s m a y issu e all k in d s of p re fe rred a n d com m on sto ck ,
a n d e x ch a n g e sam e fo r s to ck o r good w ill. V a lu a tio n in a b sen ce
o f fra u d is conclusive. A s to S tock certificates, see “ U niform L a w s.”
C o u r ts . T erm s a n d Ju risd ic tio n . T h e c irc u it c o u rts In th e
c o u n tie s h a v e ju ric d ic tio n a t com m on law in cases Involving m o re
th a n $50, a n d e q u ity In a ll cases in v o lv in g m ore th a n $20. T h e y
h o ld fro m tw o to fo u r re g u la r te rm s in each c o u n ty a t w hich
th e y h a v e a ju ry ; th e re a re , h o w ev er, in te rm e d ia te te rm s fixed b y
th e ru les, to w hich process m a y b e m a d e re tu rn a b le . T h e c irc u it
c o u rt a n d c irc u it c o u rt N o. 2 of B altim o re c ity h a v e e xclusive e q u ity
ju risd ic tio n in th e c ity . T h e s u p erio r c o u rt, th e c o u rt o t com m on
p leas, a n d B altim o re c ity c o u rt h a v e c o n c u rre n t com m on law ju risd ic ­
tio n in cases in v o lv in g m o re th a n $100. T h e c o u rt of com m on pleas
h a s ex clu siv e ju risd ic tio n in in so lv en cy , a n d th e crim in al c o u rt in
c rim in a l cases. T h e o rp h a n s ’ c o u rts in B altim o re c ity , a n d In th e
co u n ties h a v e p ro b a te ju risd ic tio n . Ju stic e s of th e peace h a v e
ju risd ic tio n to th e a m o u n t of $100. T h e com m on la w c o u rts h a v e
th re e te rm s in th e y e a r, a n d ru le d a y s e v ery m o n th in th e y e a r to
w h ich p rocess m a y b e re tu rn a b le . T h e e q u ity c o u rts h a v e six te rm s
in th e y e ar, b eg in n in g th e first M ondays of J a n u a ry , M arch, M ay,
J u ly , S e p te m b e r, a n d N ovem ber.
D e p o s iti o n s . W h en th e c o u rts a re satisfied, b y a ffid a v it o r
o th erw ise, t h a t th e re a re m a te ria l a n d c o m p e te n t w itnesses residing
w ith o u t th e S ta te , th e y w ill d ire c t t h a t a com m ission be issued to
ta k e th e te stim o n y of su ch w itnesses. T h e com m issioners a re selected
b y th e c o u rt, a n d m u s t q u a lify b e fo re som e p e rso n a u th o riz e d to
a d m in is te r a n o a th in th e s ta te w h ere th e y reside.
T h e depositions,
d u ly c ertified b y th e com m issioners, sh all b e a d m itte d a s evidence
a t th e tr ia l of th e cause, s u b je c t to th e sam e o b je c tio n s a n d e x ceptions
a s th e sam e te stim o n y w ould b e if th e w itn ess h a d been p e rso n ally
p re s e n t in c o u rt a n d th e re e x am in ed . P a rtie s h a v e th e rig h t to b e
p re s e n t w hen th e te stim o n y is ta k e n u n d e r th e com m ission, an d
m u s t receive re a so n a b le n o tic e of th e tim e a n d p lace. E x a m in a tio n
is re s tric te d to th e p a rtie s a n d In te rro g ato rie s a n d c ro ss-in terro g a ­
to ries a n n e x e d to th e com m ission. T e stim o n y of n o n -re sid e n t
w itn esses c an also b e ta k e n u p o n p ro p e r n o tic e , a s p ro v id e d b y Sec.
17 of A rt. 35 of th e Code.


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

D e sc e n t a n d D is trib u tio n o f P ro p e rty .
As to d e sc e n t, see
Code 1904, A rt. 46, a n d a s to d is trib u tio n , Code, 1904, A rt. 93.
A n a tte m p t to a b ro g a te th e R u le in S helley’s case h a s been m a d e b v
C h. 144, A cts 1912.
*
D o w e r . T h e com m on-law rig h t of d o w e r e x ists in M ary lan d , and
e x te n d s to e q u ita b le e sta te s. B y a c t 1898, th e h u s b a n d ’s dow er
w as c re a te d ; a n e s ta te of th e h u s b a n d in his w ife’s e s ta te s of in h e ri­
ta n c e, e x a c tly e q u iv a le n t to th e w ife’s do w er In h e r h u s b a n d ’s e sta te .
A devise o r b e q u e st of re a l o r perso n al p ro p e rty to th e w ife o r h u sb an d
sh all b e c o n stru ed to b e in lieu of d ow er in la n d s o r s h a re of personal
e sta te , resp ectiv ely , unless o therw ise expressed In th e w ill. I f the
w idow o r w idow er renounces fo rm a lly in w ritin g , how ever, such
provision m ad e fo r h e r o r h im b y th e w ill, w ith in six m o n th s a fte r th e
g ra n t o f a d m in is tra tio n on th e e s ta te o f th e deceased h u s b a n d o r wife,
th e dow er rig h t a n d th e sh a re o f p e rso n al p ro p e rty re m a in u n d istu rb e d .
(See M a rrie d W om en.)
E x e c u t i o n s m a y issue a n d ju d g m e n ts m a y be renew ed o r revived
b y scire facias a t a n y tim e w ith in tw elv e y e ars fro m d a te of ju d g m e n t
o r fro m th e e x p ira tio n of a n y s ta y , a n d m a y b e th e re a fte r levied
on a n y p ro p e rty of th e d e fe n d a n t. I n th e c irc u it c o u rts fo r th e
c o u n tie s th e re Is a s ta y u n til th e first T h u rsd a y of th e te rm succeeding
th e re n d itio n of th e ju d g m e n t, p ro v id e d th e ju d g m e n t is o b ta in e d
a t th e second te rm a f te r th e d e fe n d a n t Is sum m o n ed . T h e re is no
s ta y u p o n ju d m e n ts re n d e re d in th e c o u rts of B altim o re c ity o r by
ju s tic e s of th e peace in th e c ity o r c o unties, b u t e x ec u tio n m a y issue
fo rth w ith . T he d e fe n d a n t m a y s ta y th e e x ec u tio n b y su p ersed in g
w ith su re tie s fo r six m o n th s . C opy of d o c k et e n trie s of ju d g m e n t
w hen re c o rd e d in a n o th e r c o u n ty m a k e s th e ju d g m e n t a lie n th e re .
(A ct 1890, Ch. 314.)
E x e m p t i o n s . N o h o m e stea d law . W ea rin g a p p a re l, books and
tools (n o t k e p t fo r sale) a n d $ 1 0 0 of p ro p e rty in a d d itio n , w h e th er
sam e consists of m oney, la n d , goods, o r m o n ey p a y a b le a s insurance,
benefit, o r relief in th e e v e n t of sickness, h u rt, a cc id e n t, o r d e a th ,
a re e x e m p t from ex ecu tio n , e x c e p t on ju d g m e n ts fo r b re a c h of prom ise
to m a rry a n d sed u c tio n , n o t a p p lic a b le to a n y b u t a c tu a l bona
fide re sid en ts of th is S ta te . E q u ita b le in te re s ts in p e rso n al p ro p e rty
c a n n o t be sold u n d e r ex ecu tio n , b u t m a y b e levied u p o n , a n d th e
lie n th u s a c q u ire d m a y be enforced in e q u ity . Choses in a c tio n m ay
be a tta c h e d .
F o r e i g n C o r p o r a tio n s . (See C o rporations.)
F o r e i g n J u d g m e n t s . J u d g m e n ts of th e c o u rts of o th e r s ta te s
c ertified u n d e r th e a c t of congress, a re p ro p e r causes of a c tio n a g a in st
a n y p erso n s u b je c t to th e process of th e c o u rts of th is S ta te .
F r a u d . W h en a n y false re p re s e n ta tio n Is m a d e b y one. to a n o th e r
w ith th e in te n t to d e fra u d , a n d th e d e fra u d e d p a rty , th in k in g th e
alleged fra u d to b e tru e , a c ts u p o n It, a n y c o n tra c t th u s m a d e can
n o t b e enforced. B u t if th e In ju red p a r ty know s su ch re p re sen ta tio n s
to b e false, i t c a n n o t be said to h a v e influenced h is c o n d u c t. F o r
g en eral d o c trin e in th is S ta te see M cA leer vs. H o rsey 35 M d. 439.
G iv in g ; checks o r d ra fts w ith o u t p rovision fo r acc e p ta n ce is p rim a
facie evidence o f in te n t to d e fra u d , a n d is p u n ish ab le a s a crim e
unless su ch provision is m a d e w ith in te n d ays. E v e ry p erso n buy in g
m erchandise in b u lk shall d e m a n d a n d receive fro m th e v e n d o r a
w ritte n s ta te m e n t u n d e r o a th c o n ta in in g th e n am es a n d addresses
of all c re d ito rs w ith a m o u n t of in d e b te d n ess a t le a st five d a y s before
th e sale is co n su m m ated . T h e v en d ee a t le a st five d a y s before
co n su m m atin g su ch sale s h all n o tify ail o f said cre d ito rs e ith e r p e r­
so n ally o r b y reg istered m a il o f su ch proposed purchase. A sale
o r tra n s fe r o f goods in b u lk w ith o u t su ch n o tic e sh all a s to all su b ­
s istin g cre d ito rs o f th e v endors be void.
G a r n i s h m e n t s . (See A tta c h m e n ts.)
H u s b a n d a n d W ife . (See D ow er, D ivorce, a n d M arried W om en.)
I n th is S ta te th e h u s b a n d is n o t lia b le fo r w ife’s a n te -n u p tia l d e b ts
o r c o n tra c ts. H u sb a n d is lia b le fo r necessaries of w ife. A c ts 1898
C h. 457, gives h u s b a n d sam e in te re s t in w ife’s e s ta te as w ife h a s in
h u s b a n d ’s e sta te . M a rrie d w om en a re expressly a u th o riz e d b y th e
A c ts of 1900, Ch. 633, to becom e p a rtn e rs a n d to c o n tra c t w ith h u s ­
b a n d . E ith e r c a n re lin q u ish in te re s t in o th e r’s real e s ta te b y jo in t
o r s e p a ra te deed, o r b y a g e n t o r a tto rn e y p ro p e rly c o n stitu ted .T h e w ife’s p ro p e rty is p ro te c te d b y th e C o n stitu tio n fro m th e d e b ts
o f th e h u sb an d .
I n t e r e s t . T h e legal r a te of In te re s t is 6 p e r c e n t p e r a n n u m .
J u d g m e n ts b e a r in te re s t fro m th e ir d a te . A p e rso n p ro v e d g u ilty
of u s u ry fo rfeits th e excess o v e r th e re a l su m o r v a lu e of th e goods
a n d c h a tte ls le n t, a n d legal in te re s t th e re o n . Since 1876, w here th e
w hole d e b t, inclu d in g th e u su ry , is p a id , th e u su rio u s in te re s t c an
n o t b e recovered b a ck . Since S e p te m b e r 1st, 1914, ju d g m e n ts
b e a r in te re s t fro m th e d a te o f th e v e rd ic t.
J u d g m e n t s a re liens fo r tw e lv e y e a rs fro m d a te of re n d itio n on
a n y in te re s t of th e d e fe n d a n t in re a l o r leasehold ’ p ro p e rty w ith in
th e c o u n ty w here re n d e re d . T h e y c a n be tra n s fe rre d fro m one c o u n ty
to a n o th e r b y sen d in g a co p y of th e d o c k e t e n trie s to th e c lerk fo r
reco rd . T h e lien com m ences fro m th e d a te of th e e n try of th e d o c k et
e n trie s b y th e clerk. J u d g m e n ts a re n o t liens o n m o rtg ag es. J u d g ­
m e n ts a re n o t liens o n perso n al p ro p e rty u n til ex ec u tio n h a s issued
a n d th e w rit is in th e h a n d s of th e sheriff. (See A c t 1890, C hap.
558, a s to e x am in atio n of ju d g m e n t deb to rs.)
(See S uits.)
L ie n s . (See Ju d g m en ts.) M echanics’ L iens.
E v e ry b u ild in g
e re cted , re p a ire d , re b u ilt, o r Im p ro v ed to th e e x te n t of o n e -fo u rth
of its v alu e is s u b je c t to a lie n fo r w o rk do n e o r m a te ria ls fu rn ish ed
fo r o r a b o u t th e sam e. A c t of 1898, Ch. 502, ab o lish ed lie n for
m a te ria ls fu rn ish e d fo r build in g s in B altim o re c ity . E v e ry m achine,
w h arf, o r b rid g e, c o n stru c te d o r re p a ire d is s u b je c t in lik e m a n n e r
as build in g s are, to a lien acco rd in g to th e provisio n s o f C ode 1888,
A rt. 63, Sec. 22. A ll b o a ts o r vessels a re s u b je c t to a lie n fo r m a te ria ls
fu rn ish e d o r w ork do n e in b u ild in g , re p a irin g , o r eq u ip p in g th e sam e.
T o secure th e lien a n d la y fo u n d a tio n fo r enforcing it, th e m a te ria l
m a n m u s t w ith in six m o n th s a f te r th e la s t w o rk h a s b e en fu rn ish e d ,
file a claim in th e su p erio r c o u rt fo r B altim o re C ity, o r in th e c irc u it
c o u rt fo r th e c o u n ty . T h e liens a re enforced b y scire facias o r b y
b ill In e a u ity .
L i m i t a t i o n s o f S u it s . A c co u n ts a n d n o te s a re b a rre d a fte r
th re e years, sealed in s tru m e n ts a fte r tw e lv e ye ars; ju d g m e n ts tw elve
y e ars except a g ain st foreign co rp o ratio n s (no lim itatio n s.) A ct
1914 C h. 846. A v e rb a l prom ise o r a cknow ledgm ent w ill re v iv e a
d e b t b a rre d b y th e s ta tu te .
M a r r ie d W o m e n . A ct o f 1898, C hap. 457, C ode A rt. 45, repeals
a n d re -e n a cts th e e n tire law in th is S ta te . M a rrie d w om en m a y
h o ld a n d dispose of th e ir p ro p e rty law fully as if u n m a rried , b u t
h u s b a n d m u s t jo in in conveyances o f re a l e s ta te to release his in ­
te re st. M a rrie d w om en m a y engage in business, c o n tra c t, sue, a n d
b e sued u p o n c o n tra c ts a n d fo r to rts , a s if u n m a rried . M a rrie d w om an
is alone liable fo r a n te -n u p tia l d e b ts a n d c o n tra c ts. H u sb a n d is
still liable fo r necessaries. W idow is e n title d to dow er in real e sta te ,
a n d o n e -th ird o f th e p ersonal e s ta te if th e re a re children, a n d if no
children, o n e-h alf o f th e personal e sta te ; h u s b a n d h a s sam e rig h ts
in w ife’s p ro p e rty a s wife h a s in h u s b a n d ’s p ro p e rty . W h ere th e
wife is a d ju d g e d a lu n a tic u p o n in q uisition, a n d th e finding re m a in s
in force, h u s b a n d m a y con v ey a fte r a cq u ire d p ro p e rty b y s e p a ra te
deed, as if u n m a rried .

B A N K IN G A N D

C O M M E R C IA L L A W S — M A S S A C H U S E T T S

M o r tg a g e s a re e x ec u te d , ack n o w led g ed , a n d re c o rd e d sam e as
deeds, a n d a re n o t v a lid a g a in st cre d ito rs u n less reco rd ed w ith in six
m o n th s. T h e re m u s t b e a n a ffid a v it m a d e b y th e m o rtg ag e e o r hi*
a g e n t a t a n y tim e b efo re reco rd in g , t h a t th e c o n sid e ra tio n is tr u e a n d
b o n a fide, a n d , in th e fo u r C o u n ties m e n tio n e d below , t h a t th e m o rt­
gagee w ill n o t re q u ire th e m o rtg ag o r, o r a n y o th e r p erso n fo r bim
to p a y th e ta x lev ied u p o n th e m o rtg ag e in te re s t, a n d u p o n th e assign­
m e n t o f a n y m o rtg ag e ex cep t fo r th e p u rp o se o f foreclosure, a like
a ffid a v it m u s t b e m a d e b y th e assignee. I f m a d e b y a g en t, h e m u st,
in a d d itio n , m a k e o a th t h a t h e is th e a g e n t o f th e m o rtg ag ee. A
like affid av it is re q u ire d to c h a tte l m o rtg ag es, a n d a b so lu te bills
o f sale, b o th o f w hich m u s t b e re c o rd e d w ith in tw e n ty d ay s. T h e
lien o f a m o rtg ag e m a y , b y ceasing to p a y in te re s t o r a n y in sta ll­
m e n t of. th e p rin c ip a l fo r tw e n ty y ears, b e b a rre d . T h e y m a y be
foreclosed a t a n y tim e a fte r th e d e b t becom es d u e a n d b efo re th e
lien is b a rre d . M o rtg ag ees a re re q u ire d to p a y a ta x o f 8 p e r c en t
on th e m te re s t c o v en a n te d to b e p a id in th e m o rtg ag e, in Som erset,
M o n tg o m ery , F red erick , a n d D o rc h e ste r counties. N o ta x in B a lti­
m ore C ity a n d o th e r co u n ties. (C ode A rt. 81, C h. 187.)
N o te s a n d B ills o f E x c h a n g e .
N eg o tiab le in s tru m e n ts a re de­
fined b y Ch. 119 o f th e L aw s of 1898, w h ich rep eals a ll law s in co n­
s iste n t w ith th e p ro v isio n s o f th is a o t. S ectio n 20 p ro v id es a s follows:
‘A n in s tru m e n t to b e n e g o tia b le m u s t co n fo rm to th e follow ing
re q u ire m e n ts: 1. I t m u s t be in w ritin g a n d signed b y th e m a k e r o r
d ra w e r, 2. I t m u s t c o n ta in a n u n c o n d itio n a l p ro m ise o r o rd e r to
p a y a su m c e rta in in m o n ey . 3. M u st b e p a y ab le on d e m a n d , o r a t a
fixed o r d e te rm in a b le fu tu r e tim e . 4. M u st be p a y a b le to o rd e r o r
to b e arer; a n d 5, w h ere th e in s tru m e n t is a d d ressed to a d raw ee,
he m u s t b e n a m e d o r o th erw ise in d ic a te d th e re in w ith re a so n a b le
c e rta in ty . ’ I t s n e g o tia b ility is n o t affected b y a seal, o r b y a pro v ision
w hich au th o riz e s th e sale of C ollateral sec u rities in case th e in s tru m e n t
be n o t p a id a t m a tu rity , o r a u th o riz e s a confession of ju d g m e n t if
th e in s tru m e n t be n o t p a id a t m a tu r ity ; o r w aives th e b en efit of a n y
law in te n d e d fo r th e a d v a n ta g e o r th e p ro te c tio n o f th e o bligor: o r
gives th e h o ld e r a n ele ctio n to re q u ire so m eth in g to b e d o n e in lieu
of p a y m e n t of m o n ey . I t is n o t n e ce ssa ry t h a t p a p e r sh o u ld be
m ad e p a y a b le a t a b a n k o r a n y fixed p lace. T o ch arg e in d o rser,
no tice of n o n -p a y m e n t m u s t a t once be giv en to h im . T h e tim e
of m a tu rity is re g u la te d b y A rt. 13, a s follow s: “ Section 104: T im e
of M a tu rity . E v e ry n e g o tia b le in s tru m e n t is p a y a b le a t th e tim e
fixed th e re in w ith o u t g race. W h en th e d a y of m a tu r ity fails u p o n
S u n d a y , o r a h o lid a y , th e in s tru m e n t is p a y a b le o n th e n e x t su cceed ing
business d a y . In s tru m e n ts fallin g d u e o n S a tu rd a y a re to b e p re se n te d
for p a y m e n t o n th e n e x t su cceed in g business d a y , e x c e p t t h a t In s tru ­
m en ts p a y ab le on d e m a n d m a y , a t th e o p tio n of th e h o ld er, b e p re ­
s en te d fo r p a y m e n t b efo re 12 o ’clock n o o n , o n S a tu rd a y , w hen t h a t
e n tire d a y is n o t a h o lid a y ." L eg al h o lid ay s a re : C hristm as,
N ew Y e a r s D a y , F e b ru a ry 22, G ood F rid a y , J u ly 4, M a y 30, 1st
M o n d a y in Sep tem b er, 1 2 th d a y o f S eptem ber, a n d th e 1 2 th d a y o f
O ctober, a ll d a y s o f g en eral a n d congressional electio n s th ro u g h o u t
th e S ta te a n d a n y d a y o f p u b lic th a n k sg iv in g o r h u m ilia tio n a n d
p ra y e r p ro claim ed b y th e g o v ern o r o r leg islatu re, a n d all S a tu rd a y s
a fte r 12 o ’clock n o o n a re legal h a lf h o lid ay s. M o n d a y is tr e a te d
as S u n d a y w hen im m e d ia te ly p reced ed b y o ne o f th e h o lid ay s a fo re­
said. B y a c t 1898, C h . 198, i t sh all b e law fu l fo r b a n k s a n d b a n k e rs
in th e c ity o f B altim o re to close th e ir d o o rs fo r b usiness a t 12 o ’clock
noon, o n each a n d e v ery S a tu rd a y in th e y e ar, a n d e v ery S a tu rd a y
m th e y e ar, a fte r 12 o ’clock noon, sh all b e a legal h alf-h o lid ay , so
fa r as re g a rd s th e p re sen tin g fo r p a y m e n t o r accep tan ce, a n d th e
p ro te stm g a n d g iv in g n o tic e o f th e d ishonor, o f bills o f exchange
a n d o th e r n eg o tia b le p a p er, a n d fo r th e se p u rp o ses sh all b e considered
tn e first d a y o f th e w eek, o r S u n d ay , a n d all n eg o tia b le p a p e r
shall be deem ed to b e p re s e n ta b le o n th e secu lar d a y n e x t succeeding.

Pow er of A tto rn ey . 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.
P ro b ate Law . (See Administration of Estates and Wills.)
P r o t e s t is u s u a lly m a d e b y n o ta ry p u b lic . N o ta ry m u s t keep
re g iste r of p ro te s ts. A p ro te s t of n o ta ry p u b lic is p rim a facie ev id en ce
of n o n -a c ce p ta n c e o r n o n -p a y m e n t, a n d of th e p re s e n tm e n t of said
n o te fo r p a y m e n t, o r of said b ill fo r a cc e p ta n c e o r p a y m e n t, a t th e
tim e a n d in th e m a n n e r s ta te d in th e p ro te s t, a n d th e p ro te s t
also be p rim a facie ev id en ce t h a t su ch n o tic e h a s b een s e n t o r d eliv ered
in th e m a n n e r th e re in s ta te d . (See N o tes a n d Bills of E xch an g e.)
R e p l e v in is a re m e d y to re c o v e r specific goods a n d c h a tte ls to
w hose possession th e p la in tiff is e n title d . A lso th e p ro p e r re m e d y
to re c o v er possession of goods d is tra in e d u n law fu lly . B o n d m u s t be
given to th e S ta te of M ary lan d , a n d a n y p a r ty h a v in g a n in te re s t
in th e p ro p e rty , m a y , u p o n b re a ch of a n y c o v e n a n t in b o n d , m a in ta in
a n a c tio n in th e -n a m e of th e S ta te fo r h is o r h e r use.
S a le s & N o tic e s . A c t 1910, Ch. 346. p ro v id e s a U n ifo rm Sales A c t
T a x e s . T h e c o u n ty com m issioners o f th e sev eral c o u n tie s of th e
S ta te , a n d th e m a y o r a n d c ity co u n cil of B altim o re C ity a re d ire c te d
to le v y a ta x a n n u a lly u p o n re a l a n d p e rso n al p ro p e rty s itu a te d
w ith in th e S ta te , a n d n o p e rso n w ho is n o t assessed to th e su m of
8100 sh all b e re q u ire d to p a y a n y ta x . B eg in n in g w ith 1915, th e
S ta te ta x is th irty -tw o a n d o n e -th ird cen ts, beside th e C o u n ty ta x .
T he C o u n ty ta x o n B an k s lo c a ted a n d in b usiness a n y w h ere in M a ry ­
la n d is u n ifo rm ly 1 p e r cen t. T h e p ro p e rty o f religious, c h arita b le,
benevolent, a n d e d u ca tio n a l in s titu tio n s , a n d c em ete ry com panies is
exem pt fro m ta x a tio n . O n tim e ly a p p lic atio n e x em p tio n m a y be
had fo r m a n u fa c tu re r’s to o ls a n d m a c h in ery in a c tu a l u se fro m M u n ic ­
ipal ta x a tio n in B altim o re C ity a n d in som e o f th e C o u n tie s, a n d
beginning w ith 1915, fro m S ta te ta x a tio n . C ollectors m a y sell
p ro p e rty to com pel p a y m e n t o f o v e rd u e tax es, u p o n giv in g d u e n o tice
of sale, a n d com p ly in g w ith o th e r re q u isite s o f s ta tu te , a n d a n y p erso n
in te re sted in p ro p e rty m a y red eem w ith in tw e lv e c alen d a r m nnt.hu
from d a te , a n d in d e fa u lt o f re d e m p tio n , title to p ro p e rty v e sts in
purchaser. T ax es a re considered in a rre a rs on first d a y o f J a n u a ry
next succeeding th e d a te o f th e ir lev y , a n d b e a r in te re s t fro m t h a t d a te
“ U n if o r m S t a t e L a w s ” in te n d e d fo r a d o p tio n b y all th e S ta te s
a nd a d o p te d b y M a ry la n d : (1) N e g o tia b le In s tru m e n ts , (2) B ills of
Lading, (3) Sales, (4) W areh o u se R eceip ts, (5) S to ck T ran sfe r, (6 )
P ro b a te o f F o reig n W ills,

Certificates of capital stock, bills of lading, and warehouse recerpts, roughly speaking, (1) are negotiable, (2) represent the property
certified to.
W ills o f la n d o r p e rso n al p ro p e rty , a n d a n y codicil th e re to , m u s t
De In w ritin g , sig n ed b y th e te s ta to r , o r som e one else fo r h im , fg
fits presence, a t h is re q u e st, a n d w itn essed b y tw o o r m o re cred ib le
w itnesses, a s a n d fo r la s t w ill a n d te s ta m e n t o f th e te s ta to r, in th e
presence o f a ll th e w itn esses th e re to . N u n c u p a tiv e w ills in v alid
e x ce p t in case o f d isp o sitio n of p e rso n al p ro p e rty b y soldiers a n d
m arines in a c tu a l service. E v e ry w ill o r o th e r te s ta m e n ta ry in s tru execu ted w ith o u t th is S ta te in th e m o d e p rescrib ed b y law ,
e ith e r o f th e p lace w here ex ecu ted o r o f th e te s ta to r ’s dom icile, o r
according to th e fo rm s re q u ire d b y th e law o f th is S ta te sh all b e

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Federal Reserve Bank of St. Louis

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deem ed to b e legally executed, a n d shall b e o f th e sam e force a n d
effe£ L a ? . e??'cpted in th e m ode p rescrib ed b y th e la w o f th is S ta te ,
p ro v id ed , sa id la s t will a n d te s ta m e n t is in w ritin g a n d su bscribed
b y th e te s ta to r ; a n d if th e te s ta to r w as o riginally dom iciled in M a ry “hough a t th e tim e o f m a k in g th e w ill o r a t th e tim e o f his
d e a th h e m a y b e dom iciled elsew here, th e said la s t w ill o r te sta m e n ­
ta r y in s tru m e n t so executed sh all b e a d m itte d to p ro b a te in a n y
o rp h a n s c o u rt of th is S ta te ; a n d w hen so a d m itte d sh all b e governed
b y a n d c o n stru e d a n d in te rp re te d according to th e law o f M a ry la n d
w ith o u t re g a rd to th e lex dom icilii, unless th e te s ta to r sh all expressly
d eclare a c o n tra ry in te n tio n in sa id w ill o r te s ta m e n ta ry in s tru m e n t.
C ode A rt. 93, O h. 334. N o will, te sta m e n t, codicil, o r o th e r t t s t a m e n ta ry p a p e r shall b e su b je c t to c a v e a t o r o th e r ob jectio n to its
y a h d ity a fte r th e e x p ira tio n o f th re e y e ars fro m its p ro b a te . (A cts
1894, C h. 405.) W hen a p erson is u n h e a rd o f fo r a b o v e seven years,
a n d su pposed to b e d e ad , th e o rp h a n s ’ c o u rt, u n d e r th e provisions
o i A c t o f 1908, C h. 125, m a y g ra n t le tte rs te s ta m e n ta ry o r o f a d m in ­
is tra tio n a s th e case m a y be.
W o r k m e n ’s C o m p e n s a t i o n . B y th e A c t o f 1914, C h a p te r 800,
provision is m a d e fo r th e in su ran ce b y em ployers o f th e ir em ployees
engaged m e x tra -h a z ard o u s occupations, to p ro v id e fo r c o m pensation
to r in ju ries a n d d e a th . T h is A c t is in te n d e d to supersede w ith in
its scope re c o v ery fo r in ju ries th ro u g h negligence a s a to rt, a n d to
do a w ay w ith su ch defenses a s ‘‘assum ed r is k ,” “ fellow s e r v a n t”
a n d , to som e e x te n t,;.“ c o n trib u to ry negligence.” T h e e x tra -h a z ard ­
ous e m ploym ents a re e n u m e ra te d a t le n g th , a n d th e e x te n t o f com ­
p e n sa tio n s e t o u t. E m p lo y ers a n d em ployees, m a y b y filing ag re e ­
m e n t, classify th e ir occu p atio n a s e x tra -h a z ard o u s, a lth o u g h n o t so
e n u m e ra ted m this A ct.

S Y N O P S IS OF

T H E L A W S OF M A SSA C H U SETTS
RELATING TO
B A N K I N G A N D C O M M E R C IA L U S A G E S

A cknow ledgm ents a n d Deeds. Acknowledgments may be made
before any justice of the peace, notary public or"special commissioner
in the State; when the acknowledgement 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.
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 must be under seal, a scroll being
insufficient. No subscribing witness Is necessary. Release of dower,
homestead and other interests must be explicitly stated in deed, wife’s
joining in deed merely, being insufficient.
A ctions. There are three classes of actions: contract, tort, and
replevin. Actions at law a re begun by writs issued in blank form by the
clerks of the several courts. No declaration need be inserted in the
writ, except in cases of arrest on mesne process or of an attachment
of a vessel. Suits in equity are begun by filing a bill upon which a
subpoena is issued by the clerk of the court. Actions begun by
trustee process must be brought in the county in which the trustee
or one of them resides or has his usual place of business.
A d m in istra tio n of E states; The judge of probate for the county
where deceased last resided may appoint any person of sufficient
capacity as executor or administrator. Executors or administrators
are required to give a bond of about double the value of the personal
estate. An executor will be exempt from giving sureties fit testator
so directs. An administrator will be exempt 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 admin­
istrator, he must appoint a resident agent. There are public admin­
istrators in each county to whom administration is granted upon
estates of persons who die intestate leaving property, and not having
any husband, widow, or heir in this State. Ancillary administration
may be granted upon the estate of a non-resident who dies leaving
property in this State. Every administrator and executor shall file
an inventory within three months, and publish notice of his appoint­
ment, Notice of a debt and demand for its payment should be given
to an executor or administrator within six months after his appointJ_

1434

B A N K IN G A N D

C O M M E R C IA L L A W S — M A S S A C H U S E T T S

m e n t a n d th e d e b t sh o u ld b e p a id a f te r . six m o n th s a n d w ith in one
y e a r o f th e a p p o in tm e n t. N o s u it c a n b e b ro u g h t b y a c re d ito r
a g a in st a n ex ecu to r o r a d m in is tra to r w ith in six m o n th s a fte r his
giv in g b o n d , ex cep t o n a claim n o t affected b y th e insolvency o f th e
e sta te . N o s u it c a n b e b ro u g h t a g a in st a n ex ecutor o r a d m in is tra to r
w ho h a s p u b lish ed n o tic e o f h is a p p o in tm e n t, a fte r one y e a r from
tim e o f h is giving b o n d , u n less h e h a s receiv ed new a sse ts a fte r th e
e x p ira tio n o f th e one y ear, o r unless fu r th e r tim e is allow ed b y co u rt.
A c re d ito r w hose claim does n o t accru e w ith in th e one y e a r m a y
cau se a sse ts to, b e reserv ed to an sw er to his claim . W hen th è è sta te
is insufficient to p a y ail claim s, th è ex ecu to r o r a d m in is tra to r shall
re p re s e n t th e e s ta te in so lv en t, a n d com m issioner w ill be a p p o in te d
to receive p ro o f o f claim s. C laim s for fu n e ra l expenses, la s t sickness,
a n d ch arg es o f a d m in istra tio n , a re n o t affected b y tn e insolvency of
th e e sta te . E x e c u to rs a n d a d m in is tra to rs sh all re n d e r a n a cc o u n t
at. le a st once a y e ar.
A lie n s . R e sid e n t o r n o n -resid e n t a lien s m a y sue a n d be su ed a n d
m a y h o ld a n d co n v ey real e sta te .
A r r e s t. I n a n a ctio n o f c o n tra c t, th e d e fe n d a n t unless she is a
w o m an , m a y b e a rre s te d o n m esn e process p ro v id e d th e plaintiff, a n d
ex cep t in a ctio n s on n eg o tia b le in stru m e n ts, th e original p a r ty to th e
c o n tra c t o r h is ex ecu to rs o r a d m in is tra to rs m ak es affid av it t h a t h e
ex p ects to reco v er a su m a m o u n tin g to $ 2 0 ; t h a t h e believes t h a t d e ­
fe n d a n t h a s p ro p e rty w hich h e does n o t in te n d to a p p ly to p a y m e n t of
p la in tiff’s d e b t; t h a t h e believes t h a t d e fe n d a n t in te n d s to leave th e
S ta te . A ctio n s o f to rt, a g a in st w om en a s w ell a s m en, except for
sla n d e r o r libel, m a y b e b eg u n b y a rre s t o f th e d e fe n d an t, on th e
p la in tiff o r som e one in h is b e h a lf m a k in g c e rta in affidavits. A de­
fe n d a n t a rre s te d o n m esn e process m a y give b a il o r h e m a y a p p ly to
ta k e a n o a th t h a t h e does n o t in te n d to leav e th e S ta te , o r th e o a th
fo r re lie f o f p o o r d e b to rs; on ta k in g su ch o a th h e is released fro m
a rre s t. N o a rre s t c a n b e m a d e if th e p ro p e rty o f d e fe n d a n t is a tta c h e d
u p o n th e sam e w rit., O n a n execution, ex cep t fo r costs, o r fo r ali­
m o n y , o r one issued in a n a ctio n o f to rt, o r w here d e b to r is a b o u t to
leav e th e S ta te , h e c an n o t b e a rre s te d u n til h e h a s first b e en c ite d
b efo re a m a g is tra te fo r ex am in atio n , a n d it a p p ea rin g t h a t h e h a s
p ro p e rty a n d refuses to assig n it, th e m a g is tra te m a y o rd e r his a rre st.
W hen a rre ste d u n d e r ex ecu tio n th e d e b to r m a y a p p ly to ta k e th e o a th
fo r re lie f o f p o o r d eb to rs.
A s s i g n m e n t s fo r b e n efit o f c re d ito rs. A v o lu n ta ry a ssig n m e n t to
tru s te e s fo r b en efit o f cre d ito rs c a n n o t b e av o id ed b y cre d ito rs w ho
a ss e n t th e re to , ex cep t b y proceedings in b a n k ru p tc y b eg u n w ith in
fo u r m o n th s o r b y p ro o f o f fra u d . I f th e re is p ro p e rty in excess of
th e claim s o f cre d ito rs w ho h a v e a sse n ted , th e excess in h a n d s of th e
tru s te e c a n b e re a ch e d b y tru s te e process. A cts do n e in good fa ith
b y th e tru s te e u n d e r a n assig n m e n t a re v alid , th o u g h th e a ssignm ent
b e a fte rw a rd s e t aside, if th e a ssig n m e n t is a sse n ted to in w ritin g b y
a m a jo rity in n u m b e r a n d v a lu e o f th e c re d ito rs n o t secured. T h e
tru s te e sh all on acc e p ta n ce o f th e tr u s t give n o tic e in w ritin g to all
k n o w n c re d ito rs o f th e a ssig n m e n t a n d a cc e p ta n ce th e re o f a n d shall
d e p o sit w ith th e c le rk o f th e c ity o r to w n w h erein th e d e b to r h a s his
p rin c ip a l p lace o f busin ess a co p y o f th e a ssignm ent. T h e above
w ould p ro b a b ly n o t a p p ly u n d e r th e pro v isio n s o f th e N a tio n a l B a n k ­
ru p tc y A ct.
In so lv e n cy . T h e re is a n in so lv e n t law , b u t It Is su p ersed ed b y th e
N a tio n a l B a n k ru p tc y A c t of 1898.
A t t a c h m e n t . A ll real e sta te , goods, a n d c h a tte ls n o t e x em p t,
m a y b e ta k e n in a tta c h m e n t on th e o rig in al w rit a n d h e ld a s s e c u rity
fo r ju d g m e n t, e x c e p t t h a t la n d s a n d te n e m e n ts can n o t be a tta c h e d
in su its in v o lv in g less th a n $20. A tta c h m e n ts m a y be^ m a d e In su its
b y o r a g a in st n o n -resid e n ts a s w ell a s in s u its b y o r a g a in st resid en ts.
N o b o n d is re q u ire d to m a k e a n a tta c h m e n t. S hares of s to c k in
co rp o ra tio n s organized u n d e r law s of th is S ta te , o r of U n ite d S ta te s,
c a n n o t b e a tta c h e d e x c e p t b y bill in e q u ity . A tta c h m e n t of sh ares of
s to ck is n o t, v a lid a g a in st a b o n a fide tra n s fe r, a lth o u g h n o t re c o rd e d in
b o o k of c o rp o ra tio n . S h ares in foreign c o rp o ra tio n c a n n o t be a tta c h e d
e x c e p t b y bill in e q u ity . D e b to r m a y dissolve a tta c h m e n t b y fu rn ish ­
in g b o n d w ith su re tie s to p a y ju d g m e n t o b ta in e d o r v a lu e of p ro p e rty
a tta c h e d d e te rm in e d b y ap p ra ise m e n t. U p o n affidavit b y th e original
p a r ty to th e c o n tra c t ex cep t in a ctio n s on neg o tia b le in s tru m e n ts
t h a t h e h a s reaso n to believe t h a t th e d e b to r in te n d s to leave th e S ta te
a n d h a s p ro p e rty n o t ex em p t fro m a tta c h m e n t w hich h e does n o t
in te n d to a p p ly to th e p a y m e n t o f p la in tiff’s claim , th e d e b to r m a y be
a rre s te d a n d h e ld to bail. D e b to r a g a in st w h o m ju d g m e n t is re n d e re d
fo r o v e r $ 2 0 m a y b e s u b jec te d to sw orn e x am in atio n to u c h in g his
p ro p e rty , a n d if h e refuses to d eliv er u p su ch p ro p e rty (n o t being
e x em p t fro m a tta c h m e n t), a n o rd e r fo r a rre s t w ill Issue a n d h 8 c an
th e n a p p ly a n d b e ex am in ed to ta k e th e p o o r d e b to r's o a th . P ro ceed ­
in g s in in so lv en cy dissolve a tta c h m e n ts m a d e w ith in fo u r m o n th s of
first p u b lic a tio n . A n a tta c h m e n t is dissolved b y d e a th o f th e defen­
d a n t if a d m in is tra tio n is g ra n te d u p o n h is e s ta te u p o n a p p lic atio n
m a d e w ith in one y e a r a fte r h is d e ath .
B a n k s . I n th is S ta te , safe d ep o sit, lo a n a n d t r u s t com panies a re
g o v ern ed by th e p ro v isio n s co n ta in ed in c h a p te r 116, revised law s, a n d
a m e n d m e n ts th e re to . U n d e r th e law tw e n ty or m o re persons a n d
th e ir successors m a y fo rm a c o rp o ra tio n fo r th e p u rp o se o f c arry in g
on th e b u sin ess of b a n k in g . T h e g en eral c o u rt m a y , b y special a c t,
a n n u l o r dissolve a n y su ch c o rp o ra tio n ; b u t its disso lu tio n sh all n o t
im p a ir a n y re m e d y a g a in st th e sam e fo r lia b ility prev io u sly in c u rre d .
T h e c a p ita l sto c k of each b a n k sh all n o t b e less th a n $200,000 n o r m ore
•th a n $ 1 , 0 0 0 , 0 0 0 .0 0 , e x c e p t in cities o r to w n s w hose p o p u la tio n is n o t
m ore th a n 1 0 0 , 0 0 0 , th e c a p ita l m a y b e n o t less th a n $ 1 0 0 , 0 0 0 .0 0 ,
a n d ex cep t also t h a t in to w n s w h o se p o p u la tio n is n o t m o re th a n
10,000, th e c a p ita l s to ck m a y b e n o t less th a n $50,000, d iv id e d in to
sh ares o f th e p a r v a lu e o f $100.00 each. N o b usiness shall b e tra n s ­
a c te d u n til th e w hole a m o u n t o f its c a p ita l sto ck is a c tu a lly p a id in.
B efore com m encing busin ess th e p re sid en t a n d directo rs shall m a k e a
certificate specifying th e c o rp o ra te nam e, w hich sh all b e d ifferen t
fro m a n y p rev io u sly org an ized in th e c o m m onw ealth; th e locatio n
o f said b a n k ; th e a m o u n t a n d n u m b e r o f sh ares of its c a p ita l sto ck ;
n a m e a n d residence a n d n u m b e r o f sh ares o f each stockholder, a n d
th e tim e w h en i t is to go in to o p e ra tio n ; a co p y o f w hich certificate
s h a ll, b e filed w ith th e s e c re ta ry o f th e co m m onw ealth. N o p a r t
o f th e c a p ita l sto c k c a n b e sold o r tra n s fe rre d u n til th e w hole a m o u n t
th e re o f is p a id u p . N o p erso n c a n h o ld m o re th a n h a lf th e c a p ita l
sto ck , exclusive o f t h a t h e ld as sec u rity . I n a d d itio n to th e c ap ita l
s to ck to w h ich a b a n k is e n title d , th e co m m o nw ealth m a y subscribe
th e re to a n a m o u n t n o t exceeding 50 p e r p en t o f its a u th o riz e d c ap ital,
w h en p ro v isio n is m a d e th e re fo r b y law . S aid com m onw ealth shall
b e e n title d to its p ro p o rtio n a te sh a re o f p ro fits a n d dividends. U pon
th e v o te o f th re e -fo u rth s o f its sto ck h o ld ers, a b a n k m a y increase its
c a p ita l s to ck to a n a m o u n t n o t exceeding $ 1 ,0 0 0 ,0 0 0 . T h e cashier
is re q u ire d to give b o h d in n o t less th a n $ 2 0 ,0 0 0 , w ith tw o or m ore
sureties» b efo re en te rin g u p o n h is d u ties. T h e d e b ts o f a b a n k shall
a t n o tim e exceed tw ice th e a m o u n t o f c a p ita l s to ck p a id in exclusive
o f d ep o sits n o t b e arin g in te re s t, n o r shall th e re b è d ue th e b a n k m ore
th a n d o u b le th e a m o u n t o f c a p ita l sto c k p a id in. E v e ry b a n k is
re q u ire d to k eep a reserve-in law ful m o n ey o f th e U n ite d S tates, equal
t o 15 p e r c e n t o f its lia b ility fo r circu latio n a n d deposits ip C ity of
B o sto n ., T r u s t com panies doin g b usiness in th e .C ity o f B o sto n shall
k eep a reserv e e q u al to 20 p e r Cent of its liab ilities. S tockholders of
a h a n k a re liab le in th e ir in d iv id u a l C apacity fo r th e p a y m e n t o f all
th e c irc u la tin g n o te s re m a in in g U npaid in p ro p o rtio n to th e stò ck th e y
re sp ec tiv e ly h o ld w h en i t sto p s p a y m e n t.


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

A n y c o m m itte e a p p o in te d b y th e g e n eral c o u rt m a y ex am in e in to
th e affairs of a n y b a n k , a n d sh all h a v e free access to Its b o oks an d
v a u lts . T h e b a n k com m issioner shall v is it once in e v ery y e ar, and
a s m uch o tte n e r as th e y m a y deem e x p ed ien t, a ll su ch b a n k s, a nd
e x am in e a ll th e ir affairs, arid m a k e such in q u iries a s m a y be necessary
to a s c e rta in th e ir co n d itio n , a n d m a k e a re p o rt of su ch in v e stig atio n
to th e g eneral c o u rt.
C h a t t e l M o r tg a g e s . C h a tte l m o rtg ag e s m u s t b e re c o rd e d in th e
reco rd s of th e c ity o r to w n w here th e m o rtg a g o r resid es w h en th e
m o rtg ag e is m ad e, a n d in th e c ity in w hich h e th e n tra n s a c ts business;
e v ery m o rtg a g e m u s t b e re c o rd e d w ith in fifteen d a y s of th e d a te ;
u n til reco rd ed th e m o rtg ag e is n o t v a lid e x c e p t b e tw ee n th e p a rtie s,
unless possession is d eliv ered to a n d re ta in e d b y th e m o rtg ag ee. On
lo a n s less th a n $ 1 ,0 0 0 secured b y m o rtg ag e , th e r a te of in te re s t can
n o t exceed 18 p e r c en t. I t is a c rim in a l offense to rem ove, sell, or
conceal m o rtg a g e d p ro p e rty .
C o r p o r a tio n s .
B y special a c t of 1903. c h a p te r 437, th e la w of
b usiness c o rp o ra tio n s w as rev ised a n d a p p lie s to a ll c o rp o ra tio n s
o rg an ized in th is com m o n w ealth fo r th e p u rp o se of c a rry in g o n bu si­
ness w ith in th e c om m onw ealth fo r p ro fit, e x c e p t th e follow ing:
B anks, sav in g s b a n k s, co -o p erativ e b a n k s, t r u s t com panies, su re ty
o r in d e m n ity com panies, safe d e p o sit com panies, In su ran ce com ­
p anies, ra ilro a d o r s tre e t ra ilw a y com panies, te le g ra p h o r telep h o n e
com panies, gas o r ele ctric lig h t, h e a t o r p o w e r com panies, canal,
a q u e d u c t o r w a te r com panies, cem etery , o r c re m a to ry com panies, or
a n y co rp o ra tio n s w hich now h a v e o r m a y h e re a fte r h a v e th e rig h t to
ta k e or c o ndem n la n d , o r to exercise fran ch ises in p u b lic w ays, p ro ­
v id e d t h a t c o rp o ra tio n s form ed for p u rp o se o f dealing in re a l e sta te
sh all s ta te th e te rm o f th e d u ra tio n o f th e c o rp o ra tio n , su ch te rm n o t
to exceed fifty years.
U nder th is a c t th re e o r m o re p ersons m a y a sso c iate to g e th e r and
fo rm a c o rp o ra tio n fo r c a rry in g o n a n y la w fu l b usiness n o t included
in th e ab o v e p rovisions. S uch a c o rp o ra tio n m u s t h a v e a c ap ita l
of n o t less th a n $1,000. T h e re is n o m a x im u m lim it. T h e shares
m u s t h a v e a p a r v a lu e of n o t less th a n $5. T h e sto ck m a y b e divided
in to tw o o r m ore classes w ith su ch preferences, v o tin g pow ers, re stric ­
tio n s a n d q u alificatio n s a s m a y be fixed b y th e a g re e m e n t of associa­
tio n . U p o n d u e o rg a n iz a tio n of th e asso ciates a n d filing a co p y of
th e a g re e m e n t of a sso c iatio n w ith th e com m issioner of co rp o ratio n s
a n d on p a y m e n t of a fee of o n e -tw e n tie th of 1 p e r c e n t of th e c ap ital,
b u t n o t less th a n $25, a certific a te of in c o rp o ra tio n is issued b y th e
s e c re ta ry of s ta te . T h e c a p ita l sto c k m a y be issued fo r c ash p ro p e rty ,
ta n g ib le o r in ta n g ib le services o r expenses. T h e a m o u n t of c ap ital
s to c k m a y b e inc re a se d fro m tim e to tim e. T h e c o rp o ra tio n m u st
h a v e n o t less th a n th re e directo rs, p re sid en t, clerk a n d tre a su re r.
T h e d ire c to rs, tre a s u r e r a n d clerk a re elected b y th e stockholders.
T h e p re s id e n t is chosen b y a n d fro m th e b o a rd of d ire c to rs. T he
clerk m u s t b e a re sid e n t of th e com m o n w ealth . M eetings of sto ck ­
ho ld ers m u s t b e h e ld w ith in th e com m o n w ealth , b u t d ire c to rs m ay
m e e t w ith in o r w ith o u t th e c om m onw ealth. V o tin g b y p ro x y is
p e rm itte d , b u t n o p ro x y d a te d m ore th a n six m o n th s before th e
m e e tin g n a m e d is v a lid . A n y c o rp o ra tio n m a y hold, p u rc h a se , con­
v e y m o rtg ag e o r lease su ch re a l o r p e rso n al p ro p e rty a s th e purposes
of th e b usiness m a y require.
E v e ry su ch c o rp o ra tio n is re q u ire d to file a n a n n u a l re p o rt of its
cond itio n , a n d if its c a p ita l sto ck is o v er $ 1 0 0 , 0 0 0 , to file a w ritte n
s ta te m e n t u n d e r o a th b y a n a u d ito r. I t is a lso re q u ire d to m ake
a n a n n u a l re tu rn to th e ta x com m issioner. E v e ry c o rp o ra tio n organ­
ized u n d e r th e g eneral law is ta x a b le lo c a lly u p o n a ll re a l e s ta te a nd
m a c h in ery ow ned b y i t in th e com m onw ealth, a n d Is s u b je c t to a
fran c h ise ta x ag g re g ate m a rk e t v a lu e of its sh ares a fte r d e ducting
th e re fro m th e v a lu e of real e s ta te a n d m a c h in ery s u b je c t to local
ta x a tio n a s a bove, a n d th e v a lu e of a n y p ro p e rty of th e corp o ratio n
s itu a te d in a n o th e r s ta te o r c o u n try a n d s u b je c t to ta x a tio n th e re .
E v e ry foreign c o rp o ra tio n w hich h a s a u s u a l place of business
here, o r is engaged here p e rm a n e n tly o r te m p o ra rily in th e co n stru c ­
tio n , erectio n , a lte ra tio n o r re p a ir of a b u ilding, bridge, ra ilro ad , rail­
w ay o r s tru c tu re of a n y k in d , sh all before doing b usiness h e re a p p o in t
th e com m issioner of c o rp o ra tio n s, its a tto rn e y fo r th e service of proc­
ess, su ch a u th o rity to c o n tin u e a s lo n g a s a n y lia b ility rem ain s o u t­
s ta n d in g a g a in st i t in th is c o m m o n w e alth : a n d sh all file w ith th e
commissioner o f c o rp o ra tio n s a co p y o f its c h a rte r, a rtic le s o r certifi­
c a te o f in co rp o ra tio n , by-law s, a n d a c ertific a te s e ttin g fo rth its
nam e, location, n am es a n d addresses o f its officers, d a te o f its a nnual
m eeting, a m o u n t o f its c a p ita l s to ck a u th o riz e d a n d issued, th e n u m ­
b e r a n d p a r v a lu e o f its shares, th e a m o u n t p a id th e re o n , a n d details
o f a n y p a y m e n t th e re o f n o t m a d e in m oney. T h e y a re required
to file a n n u a l s ta te m e n ts w ith th e com m issioner o f corp o ratio n s
show ing th e ir condition. Officers of a foreign c o rp o ra tio n a re liable
fo r all d e b ts a n d c o n tra c ts m a d e w hile th e y a re su ch officers if any
s ta te m e n t o r re p o rt re q u ire d b y law m a d e b y th e m is kno w n to be
false. F a ilu re to file th e a b o v e s ta te m e n ts re n d e rs e v ery officer
a n d a g e n t liable to a fine of n o t m o re th a n $500.. A foreign cor­
p o ra tio n is su b je c t to ta x a tio n locally on its re a l e sta te , m achinery
a n d m erchandise in th is com m onw ealth, a n d to a n excise ta x of
one-fiftieth (1-50) Of o n e .p e r c e n t of th e p a r v a lu e o f its au th o rized
c ap ital, b u t th e excise ta x sh all n o t exceed $ 2 ,0 0 0 a year.
C o u r t s . T erm s a n d Ju ris d ic tio n . T ria l ju stic es m a y severally
h o ld c o u rts w ith in th e c o u n tie s fo r w h ich th e y a re a p p o in te d , and
sh all h a v e orig in al ju risd ic tio n , exclusive of th e s u p erio r c o u rt, of all
a ctio n s of c o n tra c t, to r t, o r replevin, w here th e d e b t o r dam ages
d e m a n d ed o r v a lu e of th e p ro p e rty alleged to b e d e ta in e d does n o t
exceed $ 1 0 0 , a n d c o n c u rre n t ju risd ic tio n w ith th e s u p erio r c o u rt of
su ch a ctio n s w here su ch a m o u n t exceeds $100 a n d is less th a n $300.
Police a n d d is tric t c o u rts m a y in th e ir re sp ec tiv e co u n ties h a v e original
ju risd ic tio n , exclusive o f th e S uperior C o u rt, o f a ctio n s of c o n tra c t, to rt
o r replevin, in w hich th e d e b t or dam ages d e m a n d ed o r th e v alu e of
th e p ro p e rty alleged to b e d e ta in e d does n o t exceed $ 1 0 0 a n d have
original a n d c o n cu rre n t ju risd ic tio n w ith th e S uperior C o u rt o f actions
o f c o n tra c t, to r t o r re p le v in in w hich th e d e b t o r d am ag es dem anded
o r th e v a lu e of th e p ro p e rty alleged to b e d e ta in e d is m ore th a n $100
a n d does n o t exceed $1,000. T h e su p re m e ju d ic ia l c o u rt h a s original
ju risd ic tio n in all e q u ity m a tte rs a n d m a y on a p p ea l h e a r a ll m a tte rs
d e te rm in e d b y th e p ro b a te c o u rt, a n d d e te rm in e q u estio n s arisin g u n d e r
wills. Superior c o u rt h a s ju risd ic tio n w here th e a m o u n t claim ed ex­
ceeds $20. M u n icip al c o u rt o f th e c ity o f B o sto n h a s ju risd ic tio n con­
c u rre n tly w ith th e sup erio r c o u rt in th e c o u n ty o f Suffolk, in a ctions
w here th e d e b t does n o t exceed $ 2 , 0 0 0 , p ro v id e d one o r m ore of the
d e fe n d a n ts resides o r h a s his u s u a l place of busin ess in th e c o u n ty of
Suffolk.
L a n d C o u r t h a s'ex c lu siv e orig in al ju risd ic tio n fo r re g iste rin g title s
to re a l e s ta te u n d e r th e T o rre n s sy ste m , a n d of w rits of e n try and
p e titio n s to c lear title s to re a l e sta te .
D e p o s iti o n s . T h e dep o sitio n of a w itness w ith o u t th e S ta te m ay
b e ta k e n u n d e r a com m ission issued to a p erso n in a n y o th e r s ta te or
c o u n try b y th e c o u rt in w hich th e case Is p e n d in g , o r i t m a y be tak en
b y a com m issioner a p p o in te d b y th e g o v e rn o r fo r t h a t purpose.
E v e ry de p o sitio n ta k e n u n d e r a com m ission m u s t b e u p o n w ritte n
in te rro g a to rie s, to be e x h ib ite d to th e a d v e rse p a rty , an d cross­
in te rro g ato ries m ay b e filed b y h im b u t n e ith e r p a r ty to th e actio n

B A N K IN G A N D COM M ERCIAL L A W S — M A SS A C H U S E T T S
shall a tte n d a t th e ta k in g of th e d ep o sitio n o r b e re p re sen te d b y
a tto rn e y . O ral e x am in atio n is allow ed i£ th e c o u rt so orders.
D o w e r a n d C u r t e s y . A wife is e n title d to d o w er in th is S ta te as
a t com m on law . A h u s b a n d sh all on th e d e a th of th e w ife h o ld oneth ir d o f h e r la n d fo r his life, th is in te re s t is k n o w n a s c u rte sy . I f th e
deceased leav es no issue, th e s u rv iv in g h u s b a n d o r w idow sh all ta k e
$5,000 a n d o n e-h alf of th e re m a in in g re a l e s ta te a n d p erso n al p ro p e rty .
I f deceased leaves issue, th e su rv iv in g h u s b a n d o r w idow ta k e s oneth ir d of th e re m a in in g real e s ta te a n d p e rso n al p ro p e rty . I f deceased
leaves no k in d re d , a s u rv iv in g h u s b a n d o r w idow sh all ta k e th e w hole
of th e re m a in in g p ro p e rty .
E x e c u t i o n s c an n o t issue u n til tw e n ty -fo u r h o u rs a f te r Ju d g m en t
ren d ered , a n d a n o rig in al ex ec u tio n m u s t b e issued w ith in o n e y e a r
a fte r p lain tiff is e n title d to su e o u t th e sam e. O riginal execu tio ns in
all c o u rts a re re tu rn a b le w ith in six ty d a y s alias executions five y ears.
T h e re is n o s ta y o f ex ecu tio n ex cep t b y special o rd e r o f co u rt. E x e c u ­
tio n s m a y be serv ed b y le v y u p o n re a l o r p erso n al e s ta te o f th e d e b to r
o r b y a rre s t w h en a rre s t is allow ed. C e rta in p e rso n al p ro p e rty a n d
re a l e s ta te a re ex em p t fro m levy.
E x e m p t i o n s . H o m e ste a d , if reco rd ed , to th e v a lu e of $800.
N ecessary w earin g a p p a re l o f fa m ily , c e rta in specified a rtic le s of
household fu rn itu re , a n d $300 w o rth in a d d itio n th e re to ; lib ra ry , $50;
too ls a n d im p lem en ts, $100; sto ck , $100; b o a ts a n d fishing ta c k le ,
e tc ., $100; o ne cow, six sh eep , one sw ine, a n d tw o to n s of h a y , sew ing
m achin e, n ecessary w earin g a p p a re l, pew in c h u rc h , e tc . M aterials a n d
sto ck designed a n d n ecessary fo r carry in g on his tra d e a n d in te n d e d to
be used o r w ro u g h t th e re in , n o t exceeding $100 in v alu e. S h ares in
co -o p erativ e a sso ciatio n s n o t exceeding $20 in v a lu e , fu n d s of ra ilro a d
relief societies assessm en t In su ran ce benefits, un ifo rm s, a rm s, a n d
e q u ip m e n ts of m ilitia officers.
F r a u d s , S t a t u t e o f.,; N o c o n tra c t fo r sale of goods fo r $500 o r
m ore sh all b e good unless th e p u rc h a se r a cc e p ts a n d receives p a rt, o r
gives s o m eth in g in p a r t p a y m e n t o r unless a m e m o ra n d u m in w ritin g
Is m a d e of th e b a rg a in a n d signed b y p a r ty to b e c h arg ed . No a c tio n
c an b e b ro u g h t in th e follow ing cases u n less th e c o n tra c t is in w ritin g
a n d is sig n ed b y p a r ty to b e c h arg ed o r his a g e n t: 1. To ch arge
a n ex ecu to r, a d m in is tra to r, o r asignee In in so lv en cy . 2. T o ch arge
a p erso n fo r th e d e b t of a n o th e r. 3. O n a c o n tra c t fo r th e sale of
real e s ta te o r in te re s t th e re in . 4. O n a n a g re e m e n t n o t to b e p er­
form ed w ith in one y e ar.
H o lid a y s . T h e follow ing a re leg al h o lid ay s in th is S ta te : F e b ru a ry
22d, A p ril 1 9 th , M ay 3 0 th , J u ly 4 th , first M o n d ay in S ep te m b e r,
O cto b er 12 th , T h a n k sg iv in g D ay, C h ristm as o r th e d a y follow ing
w hen a n y of th e d a y s m e n tio n e d occurs on S u n d a y . (S a tu rd a y a fte r
12 o ’clock n o o n fo r b a n k in g purposes.)
I n t e r e s t . L egal ra te , 6 p e r cen t, w hich is allow ed on ju d g m e n ts .
T h e re a re n o u s u ry law s, e x c e p t on lo a n s less th a n $1,000, a n d a n y
ra te m a y b e reserv ed o r c o n tra c te d fo r in w ritin g , a n d ra te reserved
In n o te is p a y a b le a f te r m a tu r ity of n o te a s b efo re; lo a n s less th a n
$1,000, sh all b e d isch arg eab le u p o n p a y m e n t o r te n d e r of th e sum
a c tu a lly bo rro w ed a n d In te re s t a t r a te of 18 p e r c e n t p e r an n u m ,
to g e th e r w ith a su m fo r a c tu a l expenses of m a k in g th e lo a n , n o t
exceeding $5; a ll p a y m e n ts in excess of sa id r a te s h all b e a p p lie d to
disch arg e of th e p rin c ip a l. No b o n d c an b e issu ed b y a co rp o ra tio n
a t m o re th a n 7 p e r cent.
J u d g m e n t s in low er c o u rts m a y b e e n te re d w ith in fo u r d a y s of
d e fa u lt, b u t d o n o t c o n stitu te a lien u p o n re a lty o r p e rs o n a lty of
d e b to r h o t a tta c h e d o n th e orig in al w rit. A re n o t o u tla w e d fo r
tw e n ty y ears. F o reig n ju d g m e n ts a re p ro v e d b y a co p y o f th e record.
L i m i t a t i o n o f S u i t s . C o n tra c ts o r lia b ilities, ex p ress o r im plied
a n d n o t u n d e r seal a n d n o t o th erw ise lim ited , six y e a rs; re a l actions,
th o se u p o n a n a tte s te d n o te, if s u it is b ro u g h t b y o rig in al p ay ee or
his ex ecu to r o r a d m in is tra to r, a n d personal a ctio n s o n c o n tra c ts n o t
lim ited, tw e n ty y e ars. R ev iv o r: P a r t p a y m e n t b y th e p a r ty so u g h t
to b e c h arg ed o r new p ro m ise to p a y in w ritin g . A bsence fro m th e
S ta te p re v e n ts th e ru n n in g o f th e s ta t u te o f lim itatio n s a s to a defen­
d a n t u n til h e com es in to th e S ta te . I f th e p erso n e n title d to b rin g a n
a ctio n is a m in o r o r is in san e o r im p riso n ed w hen th e rig h t to b rin g
such actio n first accrues, su ch a ctio n m a y b e com m enced w ith in th e
tim e h erein b efo re lim ited a fte r th e d isa b ility is rem o v ed . T h e S ta tu e
does n o t ru n a g a in st th o se resid in g o u t o f th e S ta te .
M a r r ie d W o m e n . T h e re a l a n d p e rso n al e s ta te of a m a rried
w om an, a cq u ire d a t a n y tim e , re m a in s h e r sole a n d s e p a ra te p ro p e rty ,
n o t s u b je c t to th e c o n tro l of h e r h u sb a n d , n o r lia b le fo r his d e b ts.
M arried w om en m a y c a rry on tra d e o r b usiness, m a k e c o n tra c ts, sue
an d be sued, in all m a tte rs re la tin g to th e ir s e p a ra te p ro p e rty , a n d
such c o n tra c ts a re n o t b in d in g u p o n th e h u sb a n d . W ife c arry in g
on busin ess on ow n a c c o u n t m u s t re c o rd c ertific a te w ith c ity o r to w n
clerk; n e g le ct to do th is re n d e rs h e r p ro p e rty so em ployed lia b le fo r
h u s b a n d ’s d e b ts, a n d re n d e rs h u s b a n d lia b le fo r h e r d e b ts th u s con­
tra c te d . D eeds, b u t n o t m o rtg ag es c a n b e m a d e d ire c t fro m h u sb a n d
to wife. (See D o w er a n d C u rte sy , a s to rig h ts o f h u s b a n d in e s ta te
of deceased w ife.)
.
. \ ,
M o r tg a g e s . M ortgages now in com m on u se c o n ta in a pro v ision
a u th o riz in g a sale of prem ises In case of a b re a ch of a n y of th e con­
ditions. P o w e r of sale m o rtg ag e s m a y b e foreclosed b y a sale in
accordan ce w ith th e pro v isio n s of th e p o w er c o n ta in e d in th e m o rt­
gage, a n d a n affid av it t h a t th e m o rtg ag ee h a s com plied w ith th e p ro ­
visions of th e m o rtg ag e sh all b e reco rd ed in th e re g is try of deeds
w ithin th ir ty d a y s a fte r th e sale. N o tice of th e sale m u s t b e p u b ­
lished once a w eek fo r th re e w eeks (sale to b e n o t less th a n tw e n ty one d a y s a f te r first p u b lic a tio n ), th e p u b lic a tio n to b e in th e c ity or
tow n w here p ro p e rty is s itu a te d or, if no p a p e r so p u b lish ed , th e n In
a p a p e r p u b lish e d in th e c o u n ty . P ro p e r e x ec u tio n of th e p o w er
of sale fo rev e r b a rs a ll rig h t of re d e m p tio n . M ortgages m a y also be
foreclosed b y e n try a n d p eaceab le possession fo r th re e y e ars, w hich
e n try m u s t b e certified b y tw o w itnesses. Possession m a y also be
o b ta in e d b y a c tio n a t law .
N o te s a n d B ills o f E x c h a n g e . T h e la w of n e g o tia b le in s tru ­
m ents is codified in R ev ised Law s, C h. 73, ta k in g effect J a n u a ry 1,
1899. I t does n o t a p p ly to in s tru m e n ts m a d e a n d d e liv ered p rio r
to t h a t d a te . A n in s tru m e n t to b e n eg o tia b le m u s t b e in w riting,
signed b y th e m a k e r o r d ra w e r; m u s t b e a p ro m ise to p a y a su m cer­
ta in in m o n ey , on d em a n d o r a t a fixed tim e p a y a b le to o rd e r o r
bearer. A n in s tru m e n t p a y a b le u p o n a c o n tin g e n cy is n o t n eg o tiab le.
T he v a lid ity a n d n eg o tia b le c h a ra c te r of th e in s tru m e n t a re n o t
affected b y th e fa c t t h a t it is n o t d a te d , o r does n o t s ta te w here p a y ­
able. A n in s tru m e n t is p a y ab le on d e m a n d w hen i t is ex p ressed
pay ab le o n d em an d , o r on p re s e n ta tio n , o r w hen no tim e fo r p a y m e n t
Is expressed . W h en a n in s tru m e n t Is p a y a b le on d e m a n d p re se n t­
m en t m u s t b e m a d e w ith in a re a so n a b le tim e ; p re s e n tm e n t m u s t be
m ade a t a re a so n a b le h o u r on a business d a y , a t th e p lace specified;
w hen no p lace is specified o r a d d re ss given th e n a t th e u su al p lace of
business o r resid en ce; th e in s tru m e n t m u s t b e e x h ib ite d a n d w hen
paid d eliv ered to p a r ty p a y in g it. P re s e n tm e n t fo r p a y m e n t is dis­
pensed w ith w h en th e d raw ee is a fictitio u s p erso n , o r b y w a iv er of
p re sen tm en t. E v e ry n eg o tia b le in s tru m e n t is p a y a b le a t tim e fixed
th e re in w ith o u t grace, e x c e p t d ra fts a n d bills of ex ch an g e p a y a b le
w ith in th is S ta te a t sig h t, on w hich th re e d a y s grace a r e allow ed;
w hen th e d a y of m a tu r ity falls on S u n d a y o r a h o lid a y th e in s tru m e n t
Is p a y a b le on th e n e x t succeeding busin ess d a y . In s tru m e n ts falling
d ue on S a tu rd a y a re to b e p re se n te d fo r p a y m e n t on th e n e x t suc­
ceeding b u sin ess d a y , e x c e p t t h a t th o se p a y a b le on d em a n d m a y a t


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

1435

o p tio n of th e h o ld e r b e p re se n te d fo r p a y m e n t before 12 o ’clock n oon
on S a tu rd a y , w hen t h a t e n tire d a y Is n o t a h o lid a y .
T h e a c c e p ta n ce of a bill of ex ch an g e m u s t be in w ritin g a n d signed
b y th e draw ee. T h e draw ee is allow ed tw e n ty -fo u r h o u rs a f te r p re ­
s e n tm e n t to a c c e p t th e bill.
W h en a foreign b ill is d ish o n o red b y n o n -a c ce p ta n c e i t m u s t be
p ro te s te d fo r n o n -a c ce p ta n c e; if n o t so p ro te s te d th e d ra w e r a n d
Indorsers a re discharged.
A n e g o tia b le p rom issory n o te is a n u n c o n d itio n a l prom ise in w ritin g
b y one p erso n to a n o th e r, signed b y th e m a k e r, to p a y o n d em a n d o r
a t a fixed tim e a sum of m o n ey to o rd e r o r to b e a re r. A check is a
bill of ex ch an g e d ra w n on a b a n k , p a y a b le o n d em and
A check
m u st be p re se n te d fo r p a y m e n t w ith in a reaso n ab le tim e a f te r Its
issue. W hen a check is certified a t re q u e st o f h o ld er th e d ra w e r a n d
indorsers a re released.
A b a n k includes a n y p erson o r asso ciatio n of persons c a rry in g on
business of b a n k in g , w h e th e r in c o rp o ra te d o r n o t.
T h e neg o tia b le in s tru m e n t a c t o f M assach u setts is a b o u t th e sam e
as th e law now in o p e ra tio n in N ew Y ork, C onn ecticu t, C olorado,
F lo rid a, M aryland, a n d V irginia. A ll p erso n s becom ing p a rtie s to
p rom issory n o te s p a y a b le o n tim e b y a sig n a tu re in b la n k o n th e b a ck
thereof, sh all be e n title d to n o tic e of th e n o n -p a y m e n t th e re o f th e
sam e a s in d o rsers. C hecks d ra w n on a b a n k m a y be p a id n o tw ith ­
s ta n d in g th e d e a th of d ra w e r if p re sen te d w ith in te n d a y s a fte r d a te ,
a n d a savings b a n k o rd e r if p re se n te d w ith in th ir ty d ays a f te r d a te .
S u it s . C ivil a ctio n s in general, e x ce p t th o se concerning la n d (if
one of th e p a rtie s lives in th e S ta te ), m u s t be b ro u g h t in th e c o u n ty
w here one of th e m lives o r h a s his u s u a l place Of business. W here
all p a rtie s a re n o n -re sid e n t, a c tio n m a y b e b ro u g h t in a n y c o u n ty .
A tta c h m e n t of p ro p e rty ow ned b y d e fe n d a n ts residing o u t of S ta te
m a y be m a d e sufficient to g ive ju risd ic tio n in s u it a fte r n o tic e publish ed
b y o rd e r of co u rt. Such n o tic e to b e given w ith in one y e a r fro m th e
e n try o f th e su it. P erso n s c o m m o ra n t in S ta te m a y also be a rre ste d
on m ense process a n d h e ld to bail.
T a x e s a re assessed a s of th e first d a y of A p ril in each y e ar, a n d on
real e s ta te a re a lien fo r tw o y e a rs a fte r th e y a re c o m m itte d to th e
collector; b u t th e c ollector m a y sell real e s ta te fo r ta x e s a fte r tw o
y e ars h a v e elapsed, unless th e e s ta te h a s b e en a lie n a te d p rio r to th e
giving of th e n o tic e of such sale. If n o t p a id on d em an d , collector
m a y sell a fte r a d v e rtis e m e n t. O w ner, h is heirs o r assigns, m a y
redeem w ith in tw o y e ars b y p a y in g o r te n d e rin g to th e c o llector
w hen he exercises th e pow er of ta k in g , o r to th e p u rc h a se r of th e sum
p a id b y him , w ith 10 p e r c e n t in te re s t a n d all necessary in te rv e n in g
charges, a n d person h a v in g title m a y redeem in tw o y e ars a f te r no tice
if p ro p e rty is ta x e d to a p erso n unk n o w n , o r to te n a n t o r o c cu p a n t
n o t ow ner, o r w rong p erson o r m o rtg ag ee of reco rd . T h e p u rc h a se r
u n d e r a ta x sale, if re sid en t in th e c ity o r to w n w here th e e s ta te is,
m u s t reco rd his residence o r place of b usiness. I f he resides elsew here
h e m u s t a p p o in t a n a g e n t o r a tto rn e y a n d reco rd su ch a p p o in tm e n t.
L e g a c y a n d S u c c e s s io n T a x .
A ll p ro p e rty w ith in th e s ta te
belonging to in h a b ita n ts o f th e s ta te a n d all re a l e s ta te w ith in th e
s ta te belonging to p ersons w ho a re n o t in h a b ita n ts w hich shall pass
b y w ill or b y law s re g u la tin g in te s ta te succession o r b y deed, g ra n t or
g ift to ta k e effect in possession a fte r th e d e a th o f th e g ra n to r to a n y
person, a b so lu tely , o r in tr u s t, except to o r fo r th e use o f c h arita b le,
e d u ca tio n a l o r religious societies o r in s titu tio n s th e p ro p e rty o f w hich
is b y th e law s o f th e s ta te ex em p t fro m ta x a tio n , o r for o r u p o n tr u s t
for a n y c h a rita b le purposes to b e carrie d o u t w ith in th e S ta te , o r to or
for th e use o f a c ity o r to w n w ith in th e S ta te fo r p u b lic purposes, sh all
b e su b je c t to th e follow ing ta x : all p ro p e rty p assing to a h u sb an d , wife,
lineal ancestor, lineal d escen d an t, a d o p te d child, lineal d e sc e n d an t o f a n
a d o p te d child, th e a d o p tiv e p a re n t, o r lineal a n ce sto r o f a n a d b p te d
p a re n t, th e w ife or w idow o f a son, o r th e h u s b a n d o f a d a u g h te r, of
th e deced en t, shall be s u b je c t to a ta x o f one p e r c en t o f its v a lu e if
sa id v a lu e does n o t exceed $50,000, to a ta x o f tw o p e r c e n t if its v alu e
exceeds $50,000 a n d does n o t exceed $250,000, to a ta x of 3 p e r c en t
if its v a lu e exceeds $250,000 a n d does n o t exceed $1,000,000, a n d to a
ta x o f 4 p e r c e n t if its v a lu e exceeds $1,000,000. All su ch p ro p e rty
passin g to o r fo r th e b enefit o f a b ro th e r, sister, n ep h ew o r niece o f a
d ecedent, sh all b e s u b je c t to a ta x o f 2 p e r c e n t o f its v a lu e if its v alu e
does n o t exceed $10,000, to a ta x o f 3 p e r c e n t if its v a lu e exceeds
$10,000, a n d does n o t exceed $25,000, to a ta x o f 5 p e r c e n t if its v alu e
exceeds $25,000 a n d does n o t exceed $50,000, to a ta x o f 6 p e r c e n t if
its v a lu e exceeds $50,000 a n d does n o t exceed $250,000, to a tá x of
7 p e r c e n t if its v a lu e exceeds $250,000 a n d does n o t exceed $1,000,000,
a n d to a ta x o f 8 p e r c e n t if its v a lu e exceeds $1,000,000.
P ro p e rty passing to o r fo r th e benefit o f a n y o th e r person, n o t
exem pt, shall be s u b je c t to a ta x o f 5 p e r c e n t if its v a lu e does n o t
exceed $50,000; to a ta x o f 6 p e r c e n t if its v a lu e exceeds $50,000, a n d
does n o t exceed $250,000; to a ta x o f 7 p e r c e n t if its v a lu e exceeds
$250,000 a n d does n o t exceed $1,000,000; a n d to a ta x o f 8 p e r c e n t
if its v a lu e exceeds $1,000,000.
N o b eq u est, devisé, o r d is trib u tiv e sh a re passing to á h u sb a h d , wife,
fa th e r, m o th e r, child, a d o p te d child, a d o p tiv e p a re n t o f a deceased,
unless its v a lu e exceeds $10,000, a n d n o o th e r b e q u est, devise, o r dis­
trib u tiv e s h are o f a n e s ta te unless its v a lu e exceeds $1,000 shall be
s u b je c t to a- ta x .
Shares o f s to ck o f n o n -resid e n t decedents: in M a s sa c h u se tts c o rp o ra­
tions, n a tio n a l b a n k s a n d tr u s t com panies a re s u b je c t to a ta x on th e
tra n s fe r thereof.
T r a n s f e r o f C o r p o r a tio n S to c k . T h e d e liv e ry of a sto ck certifi­
c ate of a M assach u setts c o rp o ra tio n to a b o n a fide p u rc h a se r o r pledgee,
fo r value, w ith a w ritte n tra n s fe r of th e sam e, o r a w ritte n p ow er o r
a tto rn e y to sell, assign o r tra n s fe r th e sam e, signed b y ow ner of cer­
tificate, shall be a sufficient de liv e ry to tra n s fe r th e title a s a g a in st
all p a rtie s.
T r u s t e e P r o c e s s . A ll perso n al a ctip n s e x c e p t re plevin, a n d a ctions
of to r t fo r m alicious prosecu tio n , slan d e r, libel, o r a ss a u lt a n d b a tte ry
m a y be beg u n b y tru s te e process, a n d goods, effects, o r c re d its of
d e fe n d a n t in h a n d of a th ir d p erso n m a y be a tta c h e d a n d h e ld to
satisfy final ju d g m e n t:
W ills . A ny p erson of full age m a y m ak e a w ill disposing of his
e sta te . T h e will m u s t be signed b y the. te s ta to r ' a n d a tte s te d b y
th re e W itnesses In presence of th e te s ta to r . A m a rrie d w om an m a y
m ak e a will, b u t such w ill shall n o t d e p riv e h e r h u s b a n d of his te n a n c y
b y th e c u rte sy in h e r real e sta te , o r of a life e s ta te in one-half th e re o f
if th e y h a v e h a d no issue b o m alive.

B A N K IN G A N D COM M ERCIAL L A W S — M ICHIGAN

1436

S Y N O P S IS OF

T H E LA W S OF MICHIGAN
RELATING TO

sto ck , fo r th e b enefit of d e p o sito rs. A ll tra n s fe rs of p ro p e rty , and
p a y m e n ts of m oney a fte r a c tu a l o r c o n te m p lated inso lv en cy to pre­
v e n t leg al a p p lic a tio n of a sse ts n u ll a n d v o id ; to ta l lia b ilities of a n y
b o rro w e r sh all n o t exceed o n e -te n th p a r t of th e w hole c a p ita l a nd
su rp lu s, m a y be in creased to one-fifth b y tw o -th ird s v o te of directo rs;
n o t to issue certificates of d e p o sit fo r b o rrow ed m o n ey n o r m ake
p a rtia l p a y m e n ts o n such certificates; n o t lia b le to d e p o sito rs fo r p ay­
m e n t of a forged o r raised check unless no tified w ith in th re e m onths
a fte r re tu rn of voucher.
Ail s h a r e s o f b a n k s to c k s h a ll b e a s s e s se d a g a in s t t h e i r o w n e rs in
t h e to w n s h ip , v illa g e , o r c i ty w h e r e t h e b a n k is lo c a te d , ta x e s n o t
p a i d b y s to c k h o ld e r s , b a n k ’s d u t y t o p a y .

T r u s t d e p o sit a n d s e c u rity com panies m a y be In c o rp o rate d u n d e r
th e general law s of th e S ta te a p p lic ab le th e re to . S ev en o r m ore
persons m a y asso ciate to e sta b lish — c a p ita l g ra d e d fro m $100,000
to $5,000,000 acco rd in g to p o p u la tio n of c ities w here co n d u cted ;
R ev ise d b y H e n r y W u n s c h a n d E d w a r d F . W u n s c h ,
d e p o sit w ith th e s ta t e tre a s u re r 50 p e r c e n t of th e c a p ita l stock
A tto rn e y s a t L aw , D e tro it, M ichigan.
in b o n d s o r re a l e s ta te m ortg ag es w o rth do u b le th e a m o u n t secured;
pow ers su ch a s a re c u sto m ary fo r t r u s t com panies. T h e y c a n n o t
( See C a rd in A tto rn e y s L i s t.)
do a n y b a n k in g business.
C o lla te r a l s . Stocks, b o n d s o r o th e r p e rso n al p ro p e rty pledged
a s c o lla teral se c u rity fo r p a y m e n t of m o n ey o r th e p e rfo rm an c e of
a n y ob lig atio n , u p o n d e fa u lt m a y b e sold a t p u b lic (or p riv a te sale
A c k n o w l e d g m e n t s of re a l e s ta te In s tru m e n ts m a y be b efo re one
if so a u th o riz e d b y th e c o n tra c t) to sa tisfy th e d e b t; b u t before public
of th e follow ing officers: 1.— W ith in th is S ta te : A n y ju d g e , clerk
sale, te n d a y s n o tic e m u s t b e g iven a n d serv ed o n p le d g e r o r legal
o r co m m issio n er of a n y c o u rt of reco rd , n o ta ry p u blic, ju s tic e of th e
re p re s e n ta tiv e p e rso n ally o r b y m a ll; su ch sale m u s t b e betw een
p e ac e o r m a s te r in c h an c e ry . T h e official sh o u ld c e rtify t h a t ‘ On
n in e o ’clock forenoon a n d su n se t, a-t a p u b lic pla c e In th e tow nship,
th is d a y b efo re m e p erso n ally a p p e a re d ............................ . to m e k n o w n
c ity , o r village w here held.
to b e th e p e rso n o r p erso n s w ho e x e c u te d th e fo regoing In s tru m e n t
a n d a ck n o w led g ed t h a t h e (or th e y ) e x e c u te d th e sam e a s h is (or
C o n d i t i o n a l S a le s . A re v a lid b etw een th e p a rtie s : if consignee
th e ir) free a c t a n d d e ed .” N o ta ry ’s c ertific a te m u s t show d a te of
o r p u rc h a se r, on c o n d itio n title is re ta in e d b y seller, is a u th o riz e d by
e x p ira tio n com m ission. S uch in s tru m e n ts m u s t h a v e tw o su b scribing
th e c o n tra c t to sell, a ll su ch sales a re v a lid . T h e consignee o r p u r­
w itnesses. 2.— I n a n y o th e r s ta te , te rrito ry , o r d is tric t of th e U n ite d
c h aser c a n n o t m a k e v a lid sales a g a in s t th e legal ow n er w ith o u t th e
S ta te s : S am e officials a s d e scrib ed ab o v e o r a n y officer a u th o riz e d
a u th o rity of consignor o r legal ow ner. (See L iens.) (See F rau d s.)
b y th e law s of su ch s ta te , te rrito ry , o r d is tric t, o r before a com ­
C o n v e y a n c e s . A ny p erso n of fu ll age o r o th erw ise c ap a b le m ay
m issio n er a p p o in te d b y th e G o v ern o r of th is S ta te fo r t h a t p urpose.
convey b y deed a n y in te re s t in la n d s, w h e th e r in a c tu a l possession
A n y su ch in s tru m e n t m a y b e e x ec u te d a cc o rd in g to th e law s of a n y
o r n o t. A ll g ra n ts a n d devises of la n d s to tw o o r m ore persons c reate
su ch o th e r s ta t e o r te rrito ry . I f officer h a s no seal, c ertific a te of th e
e sta te s in com m on; n o jo in t te n a n c y , unless ex p ressly so declared,
C lerk of th e c o u n ty o r d is tric t, o r of th e S e c re ta ry of S ta te w ith in
e x c e p t su ch as a re m a d e in t r u s t o r to e x ecu to rs, a n d e x c e p t such as
w h ich ta k e n s h all b e a tta c h e d . 3.— In a n y fo reig n c o u n try : n o ta ry
a re m a d e to h u s b a n d a n d wife, w ho ta k e as “ te n a n ts b y e n tire ty .
p u b lic, o r m in is te r p le n ip o te n tia ry , m in is te r e x tra o rd in a ry , m in is te r
T h e w ords “ conveys a n d w a rra n ts ” in th e deed describ in g th e prem ises
re sid e n t, c h arg e .d’a fla irs, o r co m m issio n er o r c o u n sul of th e U n ite d
a n d specifying th e c o n sid e ra tio n , d a te d , d u ly signed a n d acknow ledged
S ta te s , a p p o in te d to reside th e re in .
b y g ra n to r a re sufficient to convey title in fee sim ple a n d to w a rra n t,
A c tio n s . C om m on law fo rm s of p lead in g s a re used, b u t in som e
t h a t g ra n to r a n d his heirs a n d p e rso n al re p re s e n ta tiv e s is seized of
re sp ec ts m odified b y s ta tu te .
N o n -re sid e n t p la in tiffs m u s t give
th e prem ises, h a s good rig h t to convey sam e, g u a ra n te e s q u ie t pos­
se c u rity fo r costs.
session th e re o f, a n d t h a t h e w ill w a rra n t a n d defen d th e title a g a in st
a ll la w fu l claim s. T h e w ords “ conveys a n d q u it claim s” d u ly signed,
A d m i n i s t r a t i o n o f E s t a t e s : I n p ro b a te c o u rt of each c o u n ty .
sealed a n d acknow ledged b y g ra n to r a re sufficient to co n v ey g ra n to r s
C laim s a re p assed on b y ju d g e of p ro b a te o r com m issioners a p p o in te d
in te re s t. T h e w ords “ m o rtg ag e s a n d w a rra n ts a n d d u ly described
fo r eaoh e s ta te : w ith in su ch tim e allow ed b y th e c o u rt, n o t exceeding
prem ises, specifying “ to secure th e p a y m e n t” a n d re c itin g th e sum
in first in s ta n c e one y e a r n o r less th a n fo u r m o n th s ; m a y b e e x te n d ed
fo r w h ic h m o rtg a g e is g iven a n d th e n o te s a n d o th e r evidences of
n o t to exceed tw o y e ars fro th d a te ; th e c o u rt m a y re v iv e com m is­
d e b t secured th e re b y , m o rtg ag e b e ing d a te d , signed, sealed a nd
sio n a n y tim e b efo re e s ta te is closed a n d allow f u r th e r tim e th re e
acknow ledged b y g ra n to r, is sufficient a n d w a rra n ts p e rfe c t title in
m o n th s to ex am in e a n y claim : a n a p p e a l to c irc u it c o u rts fro m allow ­
th e g ra n to r a n d a g a in s t a ll p rev io u s ino u m b ran ces; o m ittin g th e
a n ce o r disallo w an ce o f a n y claim . All claim s b a rre d , n o t p re sen te d
w o rd “ w a rra n ts " sufficient, b u t w ith o u t a n y w a rra n ty . D ow er a nd
b efo re a d m in is tra tio n is closed :—
h o m e stea d rig h ts n o t w a iv ed unless w ife jo in s in th e m o rtg ag e . No
A d m i n i s t r a t i o n of in te s ta te e sta te s is g ra n te d : 1st, to su rv iv ­
h o m e stea d rig h t w ill a v a il a g a in s t th e m o rtg ag ee if th e re is n o wife,
in g h u s b a n d o r wife, o r k in o r g ra n te e , o r su ch one of th e m a s ju d g e
n o r if w ife join s in th e m o rtg ag e . M arried w om en of full age Joining
m a y a p p o in t, o r a s th e y m a y re q u e st. 2nd, to one o r m o re of th e
w ith h u sb a n d s in a n y deed, m o rtg ag e , p o w e r of a tto rn e y o r o th e r
p rin c ip a l c re d ito rs. 3 rd , to su ch o th e r p erso n a s th e ju d g e m a y th in k
w ritin g , shall b e b o u n d in re sp ec t to th e ir ow n title .
p ro p e r. N o n -re sid e n t a d m in is tra to rs a n d ex ec u to rs a p p o in te d in
o th e r s ta te s , te rrito rie s, o r fo reig n c o u n trie s c a n n o t sue a s su ch in
C o r p o r a tio n s . B an k s, m ining, m a n u fa c tu rin g , in su ra n ce — fire,
th is S ta te w ith o u t p ro c u rin g a d m in is tra tio n in th is S ta te .
m a rin e , a cc id e n t, b u rg la ry — p rin tin g a n d publish in g , m a n u fa c tu rin g
a n d m e rc a n tile , o r a u n io n of th e tw o , p a rtn e rs h ip asso ciatio n s, real
A f f i d a v it s m a y b e ta k e n b y a n y ju d g e , m a s te r in c h an c e ry , clerk
e s ta te associations, real e sta te , ra ilro ad s, s tre e t railw ays, oo-operative
of c o u rt, ju s tic e of th é p eace, police m a g is tra te , n o ta ry p u blic, or
b enefit associations, co -o p erativ e savings associations, a n d religious
c irc u it c o u rt com m issioner. A n y o a th a u th o riz e d o r re q u ire d to be
societies, a re re sp ec tiv e ly organized u n d e r S ta te general law s; required
m ad e, w ith o u t th e S ta te fo r u se In ju d ic ia l p ro ceed ings h e re , m u s t be
to file w ith th e se c re ta ry of s ta te , a rtic le s of association.
a u th e n tic a te d b y ju d g e of a c o u rt h a v in g a seal, a n d th e genuineness
of su ch ju d g e ’s s ig n atu re , e x isten c e of th e c o u rt, a n d t h a t su ch ju d g e
B usiness C orporations. T h ree o r m o re p ersons m a y organize. One
is a m e m b e r th e re o f, certified b y th e clerk of th e c o u rt u n d e r th e seal
finif of c a p ita l m u s t b e a c tu a lly su b sc rib e d a n d a t le a s t 10 p e r cent
th e re o f. I f in a n y o th e r s ta te o r te rrito ry , m a y b e ta k e n before a
e
ith
e r in m oney o r p ro p e rty m u s t b e p a id in ; if in p ro p e rty sam e
co m m issio n er a p p o in te d b y th e g o v ern o r of th is S ta te , o r a n y n o ta ry
m u s t b e fo r th e p u rp o se of th e business, a n d d e scribed a n d its value
p u b lic o r ju s tic e of th e peace a u th o riz e d b y th e law s of a n y su ch s ta te
specified
in th e a rtic le s. S tock h o ld ers v o te in person o r b y proxy,
o r te rrito ry to a d m in is te r o a th s th e re in .
E a c h sh are h a s as m a n y v o te s fo r d ire c to rs as d ire c to ry num bers,
I n a ctio n s a t la w a ffid a v its o f a m o u n t d u e o n o p e n a n d s ta te d
a n d th e a g g re g ate v o te m a y b e d is trib u te d fo r one o r m ore of direc­
a cc o u n ts, a tta c h e d to a n d serv ed w ith p rocess a s c o m m en cem en t of
to rs . M ay issue p re fe rred a n d com m on s to c k of th e p a r v a lu e of
s u it m a k e a p rim a facie case, u n less d en ied b y th e d e fe n d a n t s a ffid a v it
$10 o r $100. P referre d e n title d to d iv id e n d n o t to exceed 8 p e r c en t
filed a n d serv ed w ith p lea.
q u a rte rly , sem i-a n n u ally o r a n n u a lly a n d if n o t p a id be acc u m u la te d ,
a n d p a id , before a n y d iv id e n d p a id on th e com m on. A rticles of
A lie n s . M ay in h e rit o r p u rc h a se a n d h o ld a n d con v ey p e rso n al
a sso c iatio n to b e reco rd ed in th e c o u n ty c le rk ’s office of c o u n ty w here
a n d re a l e sta te .
o p e ra tio n s carrie d on, a n d office of th e sec re ta ry of s ta te .
M ay hold
A r b i t r a t i o n . C o m p e ten t p a rtie s to a n y c o n tro v e rsy w hich is o r
re a l e s ta te fo r th e p u rp o se of th e c o rp o ra tio n a n d such a s acquired
m ig h t b e th e s u b je c t of a n a c tio n a t la w o r s u it in e q u ity , m a y a g ree
a
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s
e
c
u
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o
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in
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e
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ts;
m
a
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ed
b
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to a r b itr a te , a n d ju d g m e n t of a n y c irc u it c o u rt re n d e re d u p o n th e
d ire c to rs chosen b y th e stock h o ld ers a n n u a lly ho ld office u n til suc­
a w a rd . N o a rb itr a tio n of claim o f a n y p e rso n to a n y e s ta te in fee
cessors a re chosen; m a k e d u p lic a te re p o rts In J a n u a r y ° r .F e b ru a ry
o r fo r life In re a l e sta te .
a n n u a lly fo r th e fiscal y e a r la s t end in g , of th e financial c o n d itio n a nd
A r r e s t . B y w rit of c ap ias in p e rso n al a ctio n s in to r t a n d in a ctio n s
r t y of th e c o rp o ra tio n to s e c re ta ry of s ta te ; sto ck h o ld ers are
fo r m o n e y co llected b y a n y p u b lic officer; o r u p o n pro m ise to m a rry ;
fo r la b o r d e b ts; th e y m a k e a ll b y-law s fo r c o rp o ra tio n . F oreign
nian b y w a rra n t allo w ed b y a n y ju s tic e of th e p e ac e o r ju d g e of a
c o rp o ra tio n s o rganized u n d e r th e law s of a n y o th e r s ta te of th e U n ited
c o u rt of reco rd , u n d e r th e fra u d u le n t d e b to r’s a c t, w hen th e c re d ito r
s ta te s o r of a n y foreign c o u n try , u n la w fu l to c a rry o n business in
h a s co m m en ced s u it o r o b ta in e d ju d g m e n t a n d th e d e b to r h a s disposed
th is s ta te u n til certific a te of a u th o rity p ro c u re d fro m se c re ta ry of
of o r concealed, o r is a b o u t to dispose of o r conceal p ro p e rty lia b le to
S ta te ; n o t cap a b le of m a k in g v a lid c o n tra c ts in th is s ta te u n til a u th o r­
e x ec u tio n , o r th e d e b t w as fra u d u le n tly c o n tra c te d .
ized to c a rry o n b usiness; u n la w fu l fo r a n y p erso n to a c t a s a g e n t of
u n til a u th o riz e d to do business. S ales of goods o r m erch an d ise b y
A s s i g n m e n t s fo r th e b e n efit of c re d ito rs a re v o id u n le ss m a d e
th e rig h t of in te r- s ta te com m erce n o t afle c ted b y s ta te law s.
w ith o u t preferen ces; m u s t co m p rise a ll of a ssig nor s p ro p e rty n o t
e x e m p t fro m e x ec u tio n . T h e c irc u it c o u rt in c h an c e ry h a s su p e r­
C o u r ts . T e r m s a n d J u r i s d i c t i o n . C ircuit c o u rts, h o ld in g tw o
v iso ry ju risd ic tio n of su ch assig n m en ts.
o r m o re te rm s a n n u a lly in each co u n ty , h a v e orig in al ju risd ic tio n in
A t t a c h m e n t s . W rits m a y b e Issued fro m ju s tic e a n d c irc u it c o u rts
a ll cases of law a n d e q u ity w h e re in th e a m o u n t In c o n tro v e rsy Is $100
o n a ffid a v it show ing: d e b t d u e o n ex p ress o r im p lied c o n tra c t, a n d
a n d u p w a rd s; a n d h a v e a p p e lla te ju risd ic tio n fro m Justice of th e
e ith e r t h a t th e d e b to r h a s ab sc o n d e d o r is a b o u t to ab sc o n d fro m
pe ac e p ro b a te c o u rts a n d o th e r in fe rio r trib u n a ls . J u s tic e c o u rts in
th e S ta te o r h a s a ssig n ed o r disp o sed o f o r is a b o u t to assig n a n d
each c o u n ty h a v e ju risd ic tio n of cases a t law in v o lv in g fro m $100 to
dispose of h is p ro p e rty w ith in te n t to d e fra u d h is c redltora; o r is a
$500. I n G ra n d R a p id s is a “ S u p e rio r C o u rt” fo r civil cases, lim ited
n o n -re sid e n t of th e s ta te , o r a fo reig n c o rp o ra tio n . M ay issue fro m
to p a rtie s re s id e n t of th e c ity . P ro b a te c o u rts in each c o u n ty h a v e
th e c irc u it c o u rt fo r d e b t 'n o t d u e b u t to b ecom e du e, u p o n s a tis ­
ju risd ic tio n of e sta te s of deceased persons a n d te s ta m e n ta ry tru s ts .
fa c to ry show ing to th e c irc u it ju d g e , b u t in su ch cases ju d g m e n t can­
S u p rem e c o u rt h a s final a p p e lla te ju risd ic tio n fro m c irc u it, m unic­
n o t b e ta k e n u n til d e b t is d ue. M ay issue in a c tio n s of to r t a g a in st
ip a l a n d reco rd ers’ co u rts.
n o n -resid e n ts in c e rta in cases.
D a y s o f G ra c e . A bolished.
B a n k s . In c o rp o ra tio n of:— A n y n u m b e r of p ersons n o t less th a n
D e p o s iti o n s . T e stim o n y of a n y w itness w ith o u t th e S ta te or
five m a y a sso c iate to e sta b lish fo r a p erio d n o t to exceed th ir ty y e ars,
m
o
re th a n fifty m iles fro m th e c o u rt m a y be ta k e n d e bene esse,
co m m ercial b a n k s, sav in g s b a n k s, a n d b a n k s h a v in g fo r b o th classes.
before a n y Judge of a n y s ta te o r of th e U n ite d S ta te s , o r of a n y foreign
C a p ita l re q u ire d is g ra d e d — $20,000 to $250,000. acco rd in g to p o p u la ­
o
o
u
n try , o r before a n y c irc u it c o u rt com m issioner In th is o r a n y o th e r
tio n o f c ities o r villages w here co n d u cted . U p o n filing a rtic le s of asso­
s ta te o r of th e U n ite d S ta te s, o r a n y com m issioner of th is S ta te , an y
c ia tio n , co m m issio n er of b a n k in g d e p a rtm e n t a n d S e c re ta ry of S ta te
consul
o r c o n su la r officer, ju s tic e of th e peace, officer o r n o ta ry pupuo
issue c ertificates of o rg a n iz a tio n ; b o a rd of d ire c to rs chosen b y th e
a u th o riz e d to a d m in is te r o a th s in th e s ta te o r c o u n ty w h ere ta k e n
s to c k h o ld e rs
N o m o re th a n th e leg al ra te of in te re s t in a d v an c e
a n d n o t in te re s te d a s a tto rn e y o r counsel o r in th e e v e n t of th e cause,
s h a ll b e re c eiv ed ; file c o rre c t lis t of sto ck h o ld ers w ith com m issioner
re a so n a b le n o tic e given in w ritin g b y p a r ty o r h is a tto rn e y proposing
o f b a n k in g , a n d c o u n ty clerk a n d re p o rt fo u r tim e s a y e a r to be
to ta k e , to o p p o site p a r ty o r h is a tto rn e y of record, s ta tin g nam es o i
p u b lish e d in n e w sp a p e r w h ere b a n k is co n d u cted . C om m ercial lo an s,
w
itnesses, tim e a n d place of ta k in g a n d official before w hom to oe
n o t to exceed 50 p e r c e n t o f th e c a p ita l, o n re a l e s ta te secu rities, b y
ta k e n . C om m issions to ta k e d e p ositions of a n y w itnesses m a y be
tw o -th ird s v o te o f d ire c to rs, e x c e p t to secu re d e b ts d u e th e b a n k .
Issued b y c irc u it c o u rt w herein th e s u it is p e n d in g o r b y th e Judge or
S av in g s d e p o sits p a y a b le a s d ire c to rs p rescrib e; com m ercial d ep o sits
re g iste r th e re o f, o r b y a Ju stice of th e peace in a s u it before h im on
n a v a b le o n d e m a n d . B a n k s co m b in in g co m m ercial a n d sav in g s
w ritte n in te rro g a tiv e s . F ees fo r ta k in g , certify in g , sealing a n d for­
H eposits c a n n o t issu e p o s t n o te s n o r a n y b ill o r n o te o r certific a te
w a rd in g $2; fo r e ac h 100 w ords in d e p o sitio n te n c e n ts a n d copies
a s m o n e y . S av in g s d e p o sito rs p re fe rred in d is trib u tio n of savings
th re e c en ts. E a c h p a r ty p a y s fo r h is ow n e x a m in a tio n o r cross
d e p a r tm e n t fu n d s. S to ck h o ld ers in d iv id u a lly lia b le e q u a lly a n d
e
x a m in a tio n In th e first Instance.
ra ta b ly a n d n o t one fo r a n o th e r to th e a m o u n t of th e p a r v a lu e of

B A N K IN G A N D COM M ERCIAL U S A G E S


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K

B A N K IN G A N D COM M ERCIAL L A W S — MICHIGAN
D e s c e n t. R eal e s ta te a n d p erso n al p ro p e rty of in te s ta te a fte r
p a y m e n t of d e b ts a n d a d m in is tra tio n ex p en ses a n d allow ances, as
follow s:
•
R ea l P ro p e rty . O n e -th ird to w idow , re m a in in g tw o -th ird s to his
issue; if no w idow th e w hole to his issue to sh are e q u ally if of sam e
degree of k in d re d to in te s ta te , o th erw ise b y re p re s e n ta tio n ; if bo
issue, h u s b a n d o r w idow to th e fa th e r a n d m o th e r in e q u a l sh ares,
if o n ly o n e liv in g to th e su rv iv o r alo n e. I f su rv iv in g h u s b a n d o r
w idow a n d n o issue, o n e-h alf to su ch s u rv iv o r, re m a in d e r to fa th e r
a n d m o th e r o r th e ir s u rv iv o r. I f no issue o r p a re n ts, h u s b a n d o r
w idow , e q u ally to b ro th e rs a n d sisters a n d th e ch ild re n o f d eceased
b ro th e rs a n d siste rs; if n o n e su ch re la tiv e s, to n e x t o f k in in e qual
degree th ro u g h n e a re s t a n ce sto r; if a n y u n m a rrie d ch ild dies u n d e r
age, h is o r h e r in h e rita n c e fro m a n y p a re n t, to o th e r su rv iv in g ch ildren
o f sam e p a re n t a n d th e ir issu e b y re p re se n ta tio n . I f h u s b a n d o r w ife
su rv iv e a n d n o issue, p a re n ts, b ro th e rs o r sisters, o r th e ir ch ild re n to
h u s b a n d o r wife, a n d if n o foregoing re la tiv e s w h o m so ev er e s ta te
e sc h e ats to S ta te . Ille g itim a te s h e ir to m o th e r; d y in g in te s ta te
e s ta te d escen d s to m o th e r o r h e r re la tiv e s if sh e b e d e a d ; becom e
le g itim a te b y p a re n ts, in te rm a rria g e o r f a th e r ’s w ritte n acknow ledg­
m e n t. T h e fo regoing p ro v isio n s fo r th e w idow a re in lie u of dow er
a n d h o m e stea d rig h t u n less o n e y e a r a f te r a d m in is tra tio n g ra n te d
she ap p lies fo r a ssig n m e n t of d o w er a n d h o m e stea d in w hich case
h e r in te re s t in d eceased h u sb afid ’s la n d s is lim ite d to th e dow er an d
h o m e stea d rig h t a n d th e resid u e sh all d escen d a s ab o v e p ro v id e d fo r
t h a t p o rtio n n o t ta k e n b y h e r.
P e rso n a l E s ta te . R esid u e— o n e -th ird to w idow , tw o -th ird s to
c h ild re n o r issue b y re p re s e n ta tio n ; one ch ild ; o n e-h alf to ch ild a n d
one-half to w idow ; n o w idow o r ch ild ; to all lin e a l d e sc e n d an ts e q u ally .
I f w idow a n d no ch ild re n o r issue, to w idow , n o t ex ceed in g $3,000;
e s ta te excess of t h a t ; o n e-h alf excess to w idow , o th e r h a lf to su rv iv in g
p a re n ts, a n d if n o n e su ch to b ro th e rs o r siste rs; a n d n o n e su ch , a u
such excess to w idow . M arried w o m en in te s ta te , o n e -th ird to h u s­
b a n d , tw o -th ird s to h e r ch ild re n o r th e ir issue b y re p re se n ta tio n ;
only on e c h ild o r issue of deceased child; to h u s b a n d a n d su ch child
e q u ally ; if no child o r issu e of deceased child, o n e-h alf to h u s b a n d
a n d o th e r h a lf to su rv iv in g p a re n ts, a n d if n o n e ; to b ro th e rs o r siste rs
o r issue of th e m a n d if none, all to h u s b a n d . I n a n y o th e r case sam e
a s fo r re a l p ro p e rty . E s ta te s b y c o u rte sy a b o lish ed .
D o w e r . W ife e n title d to u se of o n e -th ird p a r t of a ll la n d s ow ned
b y h e r h u s b a n d a s e s ta te of in h e rita n c e a n y tim e d u rin g m a rriag e .
No d ow er a s a g a in st m o rtg ag es fo r p u rc h a se p rice, o r m o rtg ag es m a d e
before m a rriag e , e x c e p t in su rp lu s. M u st exercise o p tio n to ta k e
d ow er in lie u of rig h ts u n d e r w ill o r s ta tu te w ith in one y e a r a fte r
a d m in is tra tio n ; resid in g in th is S ta te a n d e ig h te en y e ars of age a n d
u p w a rd s m a y b a r b y jo in in g in h u s b a n d ’s co n v ey an ces a n d m o rt­
gages o r b y d eed alo n e to one w ho h a s h u s b a n d ’s title , in te n t to b a r
b e ing ex p ressed ; o r b y Jo in tu re secu red as b a r.
E x e c u t i o n . M ay issue to a n y c o u n ty a t once, u n less s ta y e d a fte r
ju d g m e n t in c irc u it c o u rt, in ju stic e c o u rts, e x p ira tio n of five d a y s;
n o t liens o n re a l e s ta te o r p e rso n al p ro p e rty u n til le v y b y p ro p e r
officer. R ea l e s ta te Is sold w ith o u t a p p ra ise m e n t to th e h ig h e st
b id d e r, e x c e p t h o m e stea d , to d e te rm in e excess of v a lu e a b o v e $1,500
re d e m p tio n claim . D e fe n d an t o r h is h e irs o r assig n s m a y redeem
w ith in tw e lv e m o n th s, h is ju d g m e n t cre d ito rs a n d o th e rs h a v in g v alid
liens w ith in fifteen m o n th s fro m d a te o f sale. E x e c u tio n a g a in st th e
b o d y m a y b e issued on a ll ju d g m e n ts In a ctio n s of to r t. P erso n al
p ro p e rty lev ied on, a f te r s e ttin g oft e x em p tio n s, m a y b e sold on six
d a y s ’ n o tic e a t p u b lic sale, to h ig h e st b id d e r to a sufficient a m o u n t to
sa tisfy th e d e b t a n d c o sts; no re d e m p tio n a fte r su ch sales. E x e c u ­
tio n s fro m ju s tic e c o u rts do n o t ru n a g a in st re a l e sta te .
E x e m p t i o n s . H o m e ste a d — selected b y th e o w n er a n d occupied
b y h im ; n o t exceeding fo rty a cres of la n d a n d d w elling th e re o n ; o r one
lo t w ith dw elling th e re o n w ith in a n y reco rd ed to w n p la t o r c ity o r
village n o t ex ceed in g in v a lu e $1,500. S am e c a n n o t b e a lie n a te d or
Incum b ered w ith o u t co n se n t of w ife o r sold on a n y ex ec u tio n o r a n y
o th e r final pro cess fro m a n y c o u rt, u n less a p p ra ise d to exceed th e
v a lu e o f $1,500 a n d t h a t a m o u n t is p a id o r realized o n sale u n d e r
su ch process. E x e m p tio n of h o m e stea d c o n tin u e s d u rin g its occupa­
tio n b y th e w idow o r m in o r ch ild re n of d eceased p e rso n w ho w hen
liv in g o ccu p ied th e sam e.
F r a u d . C rim inal fra u d — o b ta in in g th e sig n a tu re of a n y p erso n ,
firm , o r c o rp o ra tio n w ith in te n t to d e fra u d fra u d u le n tly issu in g o r
selling o r d u p lic a tin g a n d d isp o sin g of a n y sto ck , scrip , o r ev id en ce of
d e b t of a n y b a n k o r o th e r in c o rp o ra te d c o m p a n y of th is S ta te ; issue
of a n y false re c eip ts b y w areh o u sem en , m e rc h a n ts, o r th e ir a g en ts—
re c eip t; o r to w ro n g fu lly dispose of o r c o n v e rt p ro p e rty to th e ir pw n
use a f te r issuing re c eip t; w ro n g fu lly rem o v in g o r d isp o sin g of a n y
p e rso n al p ro p e rty b y a n y a g e n t d eliv ered u p o n w ritte n a g re e m e n t o r
in s tru c tio n s ; w ro n g fu lly to dispose of p ro p e rty covered b y c h a tte l
m o rtg ag e b y m o rtg ag o rs o r of p ro p e rty h e ld b y c o n tra c t o f p u rc h a se
w ith o u t leg al title b y su ch p u rc h a se r o r of p ro p e rty h e ld u n d e r a n y
lease b y lessor. F o r a n y officer o r s to ck h o ld er of a n y b a n k o r a n y
o th e r p erso n fo r such b a n k ; to sign, issue o r kn o w in g ly p u t in circula­
tio n a n y n o te o r bill of a n y su ch b a n k , before th e c a p ita l s to ck is
p a id in, o r b efo re th e p re s id e n t a n d d ire c to rs th e re o f h a v e com plied
w ith th e la w ; fo r a n y officer o r a g e n t o f a n y b a n k k n o w in g su ch b a n k
to be in so lv e n t o r in c o n te m p la tio n 'of insolvency, o r fo r a n y assignee
of th e p ro p e rty of su ch b a n k to sell o r d ispose of a n y m o n ey o r p ro p e rty
of su ch b a n k w ith in te n t to d e fra u d , d e la y o r h in d e r cre d ito rs th e re o f;
o r fo r a n y a g e n t o r p e rso n to fr a u d u le n tly o b ta in o r dispose of a n y
m o n ey belo n g in g to a n y in su ra n ce c o m p a n y org an ized in th is S ta te .
F r a u d s — S t a t u t e o f. N o e x e c u to r o r a d m in is tra to r is liab le on
a n y sp ecial p ro m ise to a n sw e r d am ag es o u t of h is ow n e sta te s.
F r a u d , C iv il. Sales, tra n s fe rs a n d a ssig n m e n ts of sto ck s of goods,
w ares m erc h a n d ise a n d fix tu res in b u lk p e rta in in g to c o n d u ct of a n y
business, o th erw ise th a n In o rd in a ry course of tr a d e of seller, e tc .,
v oid a s a g a in st cred ito rs, u n less th e seller, e tc ., five d a y s b efo re sale,
m a k e in v e n to ry of th e goods a n d c o st p ric e to seller of each a rtic le
a n d unless th e p u rc h a se r d e m a n d s fro m seller lis t of nam e3 a n d
ad d resses o f cre d ito rs a n d h is in d e b te d n ess, a n d w ith in five d a y s
before ta k in g possession a n d p a y m e n t notifies e v ery c re d ito r o f such
sale.
#
G a r n i s h m e n t . Pro cess m a y issue in a n y a c tio n b ro u g h t in a n y
Justice c o u rt o r c irc u it c o u rt o n c o n tra c t ex p ressed o r im p lied , ju d g ­
m e n t o r decree, to h o ld w h a te v e r p ro p e rty a n y p erso n m a y ow n o r
h a v e b elo n g in g to th e d e b to r. Bills of ex ch an g e a n d p ro m isso ry
n o te s d u e in th e g arn ish ee’s h a n d s a t th e tim e o f s erv in g sum m ons
a re g a m ish ab le . P ro p e rty , re a l o r p erso n al, th in g s in actio n , e q u ita b le
in te re sts, h e ld b y fra u d u le n t tra n s fe r fro m th e d e b to r a n d a n y p ro p ­
e r ty liab le to e x ec u tio n o r to th e p a y m e n t of th e d e b ts of th e d e b to r
In th e g arn ish ee’s h a n d s m a y b e re co v ered ; w ages of a n y h o u seh o ld er
n o t m o re th a n $30 a n d less th a n $8 fo r h is p e rso n al la b o r, a n d of a n y
o th e r p e rso n fo r la b o r n o t m o re th a n $15 a n d n o t less th a n $4; a n d
b enefits p a y a b le b y fra te rn a l b en eficiary societies, sh ares in b u ild in g
a n d lo a n a sso c iatio n o f a n y d e b to r, e x ce p t a s to o n e h a v in g a h om e­
s te a d e x em p tio n , a re e x e m p t fro m g a rn ish m e n t.
H u s b a n d a n d W ife . I f su ed to g e th e r sh e m a y d efen d a n d If
e ith e r n e g le ct to defen d th e o th e r m a y b e o rd e re d to d efen d fo r b o th .
I f h e d e se rts h e r sh e m a y b e a u th o riz e d b y th e p ro b a te c o u rt to prose­
c u te o r d efen d in h is n a m e . I f e ith e r w ro n g fu lly re ta in s th e o th e r’s
p ro p e rty , a cq u ire d b efo re o r a f te r m a rriag e , th e o w n e r m a y sue fo r
sam e a s if u n m a rrie d . N e ith e r lia b le fo r th e d e b ts o f th e o th e r before
o r a f te r m a rriag e , n o r e arn in g s o r p ro p e rty o f e ith e r n o r th e incom e


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th e re o f; n o r sh all e ith e r be lia b le to m ak e co m p en satio n fo r la b o r
or services re n d e re d fo r th e o th e r. E ith e r m a y c o n s titu te th é o th e r
a n a tto rn e y In fa c t to dispose of p ro p e rty . E xpenses of fam ily a n d
ch ild re n ’s ed u ca tio n a re n o t ch arg eab le u p o n th e p ro p e rty of th e w ife
b u t a re c h arg eab le a g a in s t th e h u s b a n d a n d h e m a y be sued th e re fo r.
I n t e r e s t . L egal ra te 5 p e r c e n t b u t b y w ritte n ag re em en t m a y be
ch arg ed n o t to exceed 7 p e r c en t. F o rfe itu re of a ll In te re s t is p e n a lty
fo r u su ry . W h en a n y in s ta llm e n t of in te re s t u p o n a n y n o te , bond,
m o rtg ag e o r o th e r w ritte n c o n tra c t s h all becom e d u e a n d re m a in s
u n p a id , In te re s t is allow ed on such in s ta llm e n t from th e tim e it becam e
due a t sam e ra te specified in th e ob lig a tio n or a t th e legal ra te . Legal
ra te collectable on all m oneys d u e on a n y w ritte n ob lig atio n s a n d on
a ll m oneys d ue on all c o n tra c ts ex p ress o r im plied, w h e th e r v e rb a l
o r w ritte n ; a n d on se ttle m e n t of acc o u n ts from d a y of a sc e rta in in g
b alan ce d ue; a n d on ju d g m e n ts fro m d a y of e n try ; a n d o n v e rd ic ts of
ju ry from d a te to d a te of e n try of ju d g m e n ts th e re o n . I n c o m p u tin g
tim e of in te re s t a n d d isco u n t on n e g o tia b le p a p er, a m o n th m eans
a c alen d a r m o n th a n d a y e a r a c a le n d a r y e a r of tw elv e m o n th s.
J u d g m e n t s of c o u rts of record a re n o t liens on re a l e s ta te o r
personal p ro p e rty u n til b y le v y th e re o n of ex ec u tio n issued fro m th e
co u rts u p o n such ju d g m e n ts. L iens u n d e r e x ec u tio n levied u p o n
real e sta te e x ist five y e a rs from a n d a fte r th e le v y . J u d g m e n ts e xpire
by lim itatio n In te n y e a rs from d a te of e n te rin g in c o u rts of record
a n d six y e ars in ju s tic e c o u rts, a n d c a n n o t be renew ed e x ce p t b y a c tio n
a t law th e re o n before e x p ira tio n . Ju d g m e n ts of th e ju s tic e of th e
peace m a y be e n te re d in th e c irc u it co u rts o n tra n s c r ip t d u ly ta k e n
to th e c irc u it c o u rt a n d th e re u p o n becom e ju d g m e n ts of such c irc u it
co u rts.
L ie n s . A n y p erson, w ho p u rs u a n t to a c o n tra c t w ith a n y ow ner,
p a r t ow ner o r leasee of a n y la n d , fu rnishes la b o r o r m a te ria ls in th e
c o n stru ctio n of a b u ilding, e tc ., on such la n d , s h all h a v e a lie n on such
s tru c tu re a n d la n d to th e e x te n t of one q u a rte r sectio n o r if In a c ity
o r village, th e lo t o r lo ts u p o n w hich such s tru c tu re is s itu a te d . A nd
a n y su b -c o n tra cto r, w ho fu rn ish e s m a te ria ls o r la b o r in c a rry in g fore­
w ard o r co m p letin g such c o n tra c t shall h a v e a lien u p o n such build in g
a n d la n d to th e e x te n t of th e in te re s t of such ow ner, e tc . A n y person,
a rtis a n , o r tra d e sm a n fo r la b o r a n d skill a p p lie d u p o n a n y p ro p e rty
d elivered fo r t h a t p u rp o se sh all h a v e a p rio r lien fo r a m o u n t d u e fo r
such la b o r. H o tels, b o a rd in g houses a n d lodging houses h a v e a lien
u p o n baggage a n d o th e r v a lu a b le s o f guests, b o a rd e rs o r lodgers fo r
acco m m o d atio n s. A ny p erso n k eeping a n d c arin g fo r dom estic a n i­
m als in tru s te d to th e m fo r t h a t p u rp o se h a v e a lien fo r p ro p e r charges.
L i m i t a t i o n o f S u it s . J u d g m e n ts of c o u rts of reco rd a n d sealed
In s tru m e n ts te n y ears, ju stic e c o u rt ju d g m e n ts six y e ars; a cc o u n ts
a n d n o te s a n d o th e r sim ple c o n tra c ts a n d fo r ta k in g , d e ta in in g or
in ju rin g goods a n d c h a tte ls , six y e a rs from th e d a te th e a c tio n accrued ;
re v iv o r: p a r t p a y m e n t, o r prom ise in w ritin g to p a y . A bsences fro m
th e S ta te d e d u c te d fro m th e period of lim ita tio n . M ortgages fifteen
y e ars a f te r d ue o r a f te r la s t p a y m e n t th e re o n . F o r tre sp asses on
lands, a ss a u lt a n d b a tte ry , false im p riso n m e n t, slan d e ro u s w ords or
libels a n d m al-p rac tlc e a g a in st physicians, surgeons, a n d d e n tists,
tw o y e ars. F o r m isc o n d u ct of sheriff o r th e ir d e p u tie s, th re e y e ars,
a n d fo r p e rso n al Injuries th re e y e ars. F o r th e re c o v ery of re a l p ro p ­
e rty , five y e a rs w here th e claim arises a g a in st e x ecu to rs, g u a rd ia n 's
o r sheriff’s d e ed ; five y e ars w here th e d e fe n d a n t claim s a n d is in pos­
session of la n d s u n d e r deed m a d e b y a u d ito r general of th is S ta te for
ta x e s; a n d b y m in o rs a n d o th e rs u n d e r le g a l d isab ilitie s th re e y e ars
a fte r rem o v al of such disab ilities; in all o th e r cases fifteen y e ars.
L i m i t e d P a r t n e r s h i p s . M ay co n sist of o ne o r m o re g eneral a n d
o ne o r m o re special p a rtn e rs . Specials c o n trib u te specific a m o u n t
of c a p ita l in c ash o r p ro p e rty a t cash value, a n d If a c tu a lly p a id in
n o t lia b le fo r firm ’s d e b ts in excess of such special c a p ita l. G eneral
p a rtn e rs tra n s a c t th e business of th e firm .
M a r r ie d W o m e n . M ay m a k e c o n tra c ts in re s p e c t to th e ir ow n
p ro p e rty a n d m a y h o ld a n d en jo y , a n d h a v e th e sam e rig h ts a n d
rem edies .regarding th e ir p ro p e rty a s if u n m a rrie d . T h e y m a y c a rry
o n business in th e ir ow n n am es w ith th e ir ow n p ro p e rty b y co n se n t
of th e ir h u s b a n d s ; c a n n o t e n te r in to p a rtn e rs h ip w ith h u s b a n d o r
a n y o th e r p erso n a n d becom e liable fo r th e firm c o n tra c ts. M arried
w om en’s c o n tra c ts to p a y o r to becom e liab le fo r d e b ts of h u s b a n d s o r
o th e r p e rso n v o id ab le, m a y how ev er charge th e ir re a l e s ta te o r p e r­
so n al p ro p e rty to secu re su ch in d e b te d n ess b y deed, m o rtg ag e o r
c o n tra c t. M a rrie d w om en a re e n title d to h a v e a n d to h o ld th e ir
e arnings m a d e b y th e ir ow n personal effort, a n d m a y m a k e a n y con­
tr a c ts re la tiv e th e re to .
M o r tg a g e s o n re a l e sta te , e x ec u te d a n d ackn o w led g ed th e sam e
a s d eeds; m a y b e foreclosed u n d e r pow er of sale b y a d v e rtis e m e n t
o r in c irc u it c o u rt in C hancery of th e c o u n ty w h e re in th e p ro p e rty
is s itu a te d . T r u s t deeds n o t in c u sto m ary u se b u t m a y be m a d e an d
e x ec u te d a n d w ill be tre a te d a s m ortgages.
C h a tte l m o rtg ag e s a n d bills of sale; In te n d e d a s s e c u rity b y m o rt­
gagor, signed a n d delivered to th e m ortgagee, sufficient b e tw ee n th e
p a rtie s , b u t v o id a s to cred ito rs, su b se q u e n t p u rc h a se rs a n d encum ­
b ra n c ers in good fa ith a n d w ith o u t n o tice, unless su ch m o rtg ag e s a n d
bills of sale o r tr u e copies a re filed in th e c ity o r to w n sh ip c lerk ’s office
w here m o rtg a g o r resides, o r if n o n -resid e n t of S ta te , in c ity o r tow n­
ship w h ere th e p ro p e rty is s itu a te d ; a n d unless a ffid a v it of m o rtg a g o r
o r of som e o ne fo r him h a v in g know ledge of th e fa c ts Is a n n e x e d to
th e m o rtg ag e o r b ill of sale, show ing co n sid e ra tio n Is a c tu a l a n d
a d e q u a te a n d in good fa ith . W ith o u t su ch a ffid a v it officers fo rb ad e
to receive a n d file such m ortgages; cease to b e v a lid a g a in st c re d ito rs,
s u b se q u e n t p u rc h a se rs, a n d en cu m b ran cers in good fa ith , o n e x p ira ­
tio n of y e a r fro m filing d a te , unless renew ed w ith in th ir ty d a y s n e x t
p reced in g e x p ira tio n b y affid av it of m o rtg ag e e show ing h is in te re s t,
e tc ., filed a n a a n n ex e d to th e m o rtg a g e in said c le rk ’s office; likew ise
each succeeding y e a r w hile th e m o rtg a g e exists.
N e g o tia b le I n s t r u m e n t s . A p ro m isso ry n o te is a n u n co n d itio n a l
prom ise In w ritin g to p a y a su m c e rta in in m oney, o n d em and, o r a t
a fixed a n d d e te rm in a te fu tu re tim e , to th e o rd e r of a specified person
o r to b e arer.
A bill of exchange is a n u n c o n d itio n a l o rd e r of one person to a n o th e r
re q u irin g th e d raw ee to p a y to a c e rta in person, o r o rder, o r b e a re r on
d em a n d o r a t a fixed o r d e te rm in a te fu tu re tim e a c erta in su m of
m oney. M ay be p a y a b le in in s ta llm e n ts a n d c o n ta in p rovisions t h a t
o n d e fa u lt th e w hole su m of m o n e y sh all becom e d ue w ith exchange,
fixed o r c u rre n t ra te , In te re s t a n d a tto rn e y ’s fees fo r collection. M ay
a u th o riz e sale of co llaterals a n d confession of ju d g m e n ts. I f i t re a d s
‘‘I prom ise to p a y ,” all m a k e rs a re jo in tly a n d severally lia b le .
M ust n o t be p a y a b le u p o n co n tin g en cy . C an n o t w aive e x em p tio n
from e x ec u tio n . N eed n o t specify “ fo r v a lu e received” n o r place
w here d ra w n o r p a y ab le. I f issued, acc e p te d , o r in dorsed w h en o v e r
d u e is p a y a b le o n d e m a n d . M ay be p a y a b le to tw o o r m ore p ay ees
jo in tly o r one o r m o re of several payees. W a n t o r fa ilu re of con­
sid eratio n , a d efense a g a in s t o ne n o t a h o ld e r in d u e course, p a rtia l
fa ilu re a defense p ro -ta n to . O ne n o t a p a rty , o r th e p a y e e of th e
p a p e r p lacin g a sig n a tu re in b la n k on th e p a p e r before d e liv e ry becom es
a n e ndorser. In d o rse r engages on d u e p re s e n tm e n t th e p a p e r sh all
b e h o n o re d a n d t h a t h e w ill p a y to h o ld e r o r a n y su b se q u e n t in d o rse r,
w ho m a y b e com pelled to p a y ; w here m a tu rity falls o n S u n d a y o r o n
a h o lid ay , p a y m e n t d u e o n th e n e x t business d a y ; b u t w here a ll of such
d a y n o t a h o lid a y m a y if p a y ab le o n d em a n d be p re sen te d before noon.
F r a u d in p ro c u rin g sig n atu re s a n d d e liv e ry defense a g a in st a n y ho ld er.

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B A N K IN G A N D CO M M ERCIAL L A W S — M IN N E SO T A

P re s e n tm e n t n o t n e ce ssa ry to ch arg e an y o n e p rim arily liab le. If
n o t p a y a b le o n d em a n d p re s e n t o n th e d a y d u e ; If o n d e m a n d p re s e n t
w ith in a reaso n ab le tim e a fte r Issue: b ill of ex ch an g e p a y a b le on
d e m a n d p re s e n t rea so n a b le tim e a f te r la s t n e g o tia tio n .
F ra u d u le n t o r m a te ria l a lte ra tio n s do n o t affect th e original In stru ­
m e n ts in th e h a n d s of in n o c e n t h o ld e r In d u e course.
U n c o n d itio n a l p ro m ise in w ritin g to a c c e p t a b ill of exchange,
g iv en b efo re o r a fte r d ra w n , v a lid in fa v o r of all w ho ta k e i t u p o n
fa ith th e re o f for v a lu e ; h o ld e r m a y decline q ualified a cc e p ta n ce ; if
h e ta k e s qualified acc e p ta n ce , d ra w e rs a n d in d o rsers a re disch arg ed .
P r o te s t of fo reign bills of ex ch an g e m a y b e m a d e b y a n o ta ry p u b lic
o r a n y re sp ec ta b le re sid e n t of th e p la c e of p a y m e n t in th e presence of
tw o o r m o re c re d ita b le w itn esses; d raw ee Is n o t lia b le unless h e accep ts.
C heck o r a b ill of ex ch an g e on a b a n k p a y a b le on d e m a n d , m u s t be
p re se n te d rea so n a b le tim e a f te r issue, a n d if d ish o n ored n o tic e m u s t
be given o r d ra w e r is d isch arg ed to e x te n t of loss caused ¡does n e t
o p e ra te to assign a n y p a r t of d ra w e r’s fu n d s; b a n k is n o t lia b le Unless
it accep ts o r certifies. I f h o ld e r h a s check certified d ra w e rs a n d
In d o rsers a re d isch arg ed .
T h e p re s e n t n e g o tia b le in s tru m e n ts law of M ichigan to o k effect
S ep t, 16, 1905, a n d re p e als all a c ts o r p a rts of a c ts in c o n siste n t w ith
Its p ro v isio n s; b u t does n o t a p p ly to In s tru m e n ts m a d e p rio r th e re to ;
m a te ria lly ch an g es th e law in th is S ta te an d sh o u ld receive special
e x a m in a tio n in e v ery d o u b tfu l case.
P o w e r o f A t t o r n e y . A lm o st e v e ry a c t t h a t a n y p erso n , firm o r
c o rp o ra tio n m a y perfo rm , m a y be p erfo rm ed b y a n a tto rn e y In fa c t.
C onveyances, m o rtg ag es, o r leases fo r m o re th a n th re e y e ars te rm
b y a tto rn e y in fa c t, th e p o w er of a tto rn e y m u s t b e in w ritin g signed,
sealed a n d ack n o w led g ed sam e a s a d eed of la n d s, to be a d m itte d fo r
reco rd o r to p ro o f th ereo f.
P r o b a t e L a w . (See A d m in is tra tio n of E sta te s.)
P r o t e s t . (See N e g o tia b le In s tru m e n ts .)
R e p l e v in . G oods o r c h a tte ls w ro n g fu lly ta k e n o r d e ta in e d m a y
b e rep lev in ed b y o w n er o r p a r t o w n er o r p a r ty e n title d to possession.
A ffidavit of p la in tiff o r a g e n t n e ce ssa ry fo r issue of w rit. If from
c irc u it c o u rts p la in tiff re q u ire d to give b o n d w ith sufficient su reties
to th e officer w ith in tw e n ty -fo u r h o u rs a fte r seizu re a n d a p p ra isa l of
th e p ro p e rty w hich m u s t n o t b e d eliv ered to p la in tiff w ith in fo rty e ig h t h o u rs; a n d in th e m e a n tim e if th e d e fe n d a n t sh all give sufficient
b o n d to th e officer h e sh all re tu rn th e p ro p e rty to th e sam e person
fro m w h o m h e to o k It; in t h a t case if p la in tiff reco v ers h e m a y reco v er
o n th e d e fe n d a n t’s b o n d : if h e fails d e fe n d a n t m a y re c o v er o n p la in ­
tiff’s b o n d a cco rd in g a s th e ju d g m e n t m a y w a rra n t. I n ju s tic e c o u rts
b o n d w ith sufficient su re tie s m u s t b e given a n d filed in dou b le v alu e
of"the p ro p e rty b efo re w rit issues.
T a x e s . S ta te a n d c o u n ty p a y ab le e v ery y e a r a f te r D ecem b er 1st,
d eliv ered to c o u n ty tre a s u r e r M arch 1st, th e re a fte r, a n d if d e lin q u e n t
b e a r In te re s t 1 p e r c e n t p e r m o n th . R e tu rn e d to a u d ito r g eneral of
S ta te , if n o t p a id , a n d b y h im en fo rced b y foreclosure in c h an c e ry In
e v e ry c o u n ty , a n d th e ta x a b le p ro p e rty sold u n d e r decree of th e
c o u rt b y c o u n ty tre a su rer, each p arcel fo r th e a m o u n t of ta x e s an d
ch arg es a g a in st sam e: red eem ab le o ne y e a r th e re a fte r a n d does n o t
becom e a b so lu te u n til p roceedings ta k e n b y p u rc h a se r fo r w rit of
assistan c e , w hich m u s t be in s titu te d w ith in five y e a rs b y service of
w ritte n n o tic e u p o n ow ners six m o n th s b efo re a p p lic a tio n fo r such
w rit. I f d ecree re g u la r a n d p ro p e rty ta x a b le , a n d d u e n o tic e is given
a n d serv ed , p u rc h a se r Is e n title d , u p o n d u e p ro o f th e re o f to w rit of
a ssistan c e a n d possession unless red eem ed p e n d in g th e n o tic e b y
p a y m e n t of d o u b le th e a m o u n t p a id b y p u rc h a se r a n d $5.00 fo r each
p a rc el red eem ed .
C ity ta x e s a re g o verned b y c h a r te r o r b y th e
g en eral a c t u n d e r w hich cities a n d villages a re organized.
W ills . C o d ic ils . E v e r y p e rs o n o f fu ll a g e ( tw e n ty - o n e y e a rs ) a n d o f
so u n d m in d m a y m a k e ; m u s t be in w ritin g , signed b y te s ta to r o r b y
som e p e rso n in h is o r h e r p resen ce d u ly a u th o riz e d b y him o r h e r a n a
a tte s te d a n d su b scrib ed in his o r h e r presen ce b y tw o or m ore w itnesses
c o m p e te n t as su ch a t th e tim e . If o ne of th e su b scrib in g w itnesses
sh all te s tify to th e e x ec u tio n of th e w ill in all p a rtic u la rs a n d te s ta ­
to r w as of so u n d m in d a t th e tim e w ill was m ade, th e c o u rt m a y
a d m it th e will, in case no p erso n a p p ea rs to c o n te st It; if n o n e or
th e w itnesses resid e in th e S ta te a t th e tim e of p ro v in g th e w ill, th e
c o u rt m a y a d m it th e te stim o n y of o th e r w itnesses to p ro v e te s ta to r s
s a n ity a n d ex ec u tio n a n d p ro o f of th e s ig n a tu re of te s ta to r a n d s u b ­
scrib in g w itnesses. P ro b a te of w ill conclusive of its d u e e x ec u tio n
a n d c a n n o t b e a ssailed co lla terally . F o reig n wills, d u ly a d m itte d to
p ro b a te w ith o u t th e S ta te , m a y b e a d m itte d a n d reco rd ed in a n y
c o u n ty of th e S ta te in w hich te s ta to r le ft real o r p e rso n al e s ta te b y
d u ly filing, a n exem plified co p y of said w ill a n d of th e reco rd a d m ittin g
sam e to p ro b a te . A n u n c u p a tiv e w ill in w hich th e v a lu e of th e e s ta te
b e q u e a th e d does n o t exceed $300, d u ly p ro v e d b y tw o w itnesses, m a y
b e allow ed. W ills m a y b e rev o k ed b y b u rn in g , te a rin g , cancelling,
o r o b lite ra tin g w ith in te n tio n of rev o k in g sam e b y te s ta to r , o r b y som e
o th e r w ritin g signed, a tte s te d , a n d su b sc rib e d in th e m a n n e r p ro v id e d
fo r ex ec u tio n of w ills b u t sh all p re v e n t re v o c atio n Im plied b y law .


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

S Y N O P S IS OF

T H E LA W S OF M INNESOTA
’ RELATING TO
B A N K IN G A N D COM M ERCIAL U S A G E S
P re p a re d a n d R evised b y D t j r m e n t , M o o r e & O p p e n h e i m e r ,
A tto rn e y s a t L aw , S t. P a u l, (See C ard in A tto rn e y s ’ L ist.)
A c k n o w l e d g m e n t s m a y be certified b y th e follow ing officers:
1. W ith in th e S ta te b y a re sid e n t judge, clerk o r d e p u ty clerk of
a n y c o u rt of reco rd th e re in , a n o ta ry p u blic, ju s tic e of th e . peace,
to w n , c ity o r village clerk, o r recorder, c o u rt com m issioner, re g iste r of
deeds, o r c o u n ty a u d ito r, or th e ir d e puties, c o u n ty conm nssioneP, or
m em b er o f th e legislature. 2. O u t of th e s t a t e b u t m th e U n ite d S t a t e
b y a ju d g e of th e suprem e, c irc u it, o r d is tric t c o u rts o l th e U nited
S ta te s, o r of a n y c o u rt of record of a n y s ta te , te rrito ry , o r d is tric t,
th e clerk o r a d e p u ty clerk of a n y su ch co u rt, a n o ta ry , a ju s tic e of th e
peace, or a n y com m issioner a p p o in te d b y th e g o v e rn o r of th is s t a t e
fo r t h a t p urpose. 3. In foreign c o u n trie s b y a n o ta ry p u b lic , or
b y a n y m in iste r, chargé d ’affaires, com m issioner, consul* com m ercial
a g e n t o r o th e r c o n su la r o r d ip lo m a tic officer of th e U n ite d S ta te s
a p p o in te d to reside in su ch c o u n try , a n d d e p u tie s or o th e r rep resen ­
ta tiv e s o f such officers. T h e fo rm o f th e certific a te m a y be, On
t h i s .............................. d a y o f . . .......................... , 1 9 . . . . , before m e p e r­
sonally a p p e a re d .....................to m e know n to be th e person described in,
a n d w ho executed th e foregoing in s tru m e n t a n d acknow ledged t h a t he
ex ecu ted th e sam e a s his free a c t a n d deed. ” I n case o f co rp o ra tio n
it m a y be, “ O n th is ............d a y o f ------ , . 1 9 . . , 'b efo re m e a p p ea re d
A. B . to m e p e rso n ally know n, w ho b e ing b y m e d u ly sw orn
d id s a y t h a t h e is th e p re s id e n t (or o th e r officer) of (nam e o f corpo­
ra tio n ), t h a t th e seal affixed to th e foregoing in s tru m e n t is th e cor­
p o ra te seal of said co rp o ra tio n a n d t h a t said in s tru m e n t w as executed
m b e h a lf o f said co rp o ra tio n b y a u th o rity of its b o a rd of d ire c to rs,
a n d said A. B acknow ledged said in s tru m e n t to b e th e free a c t
a n d deed of sa id c o rp o ra tio n . ” I f m a d e o u tsid e th e S ta te th e im p res­
sion of th e official seal of th e c ertify in g officer m u s t be affixed, or
th e re m u s t b e a tta c h e d th e certific a te of th e clerk of a c o u rt of record
o f th e c o u n ty o r d is tric t in w hich i t is m a d e u n d e r h is seal t h a t th e
s ig n a tu re of th e c ertify in g officer is genuine.
A c tio n s . T h e d is tin c tio n b etw een a ctio n s a t law a n d s u its In
e q u ity is a bolished. T h e re is o n ly one form of a c tio n . I t is called
a civil a c tio n a n d m u s t be p ro se cu te d in th e n a m e of th e re a l p a r ty
in in te re s t e x ce p t t h a t e xecutors, a d m in is tra to rs , tru s te e of a n express
tr u s t an d persons ex p ressly a u th o riz e d b y s ta tu te m a y sue w ith o u t
jo in in g th e p erson fo r w hose benefit th e s u it is b ro u g h t.
A d m i n i s t r a t i o n o f E s t a t e s . E s ta te s of deceased persons a re
a d m in istered in p ro b a te c o u rts of w hich th e re is o ne in each c o u n ty
presided o v e r b y th e p ro b a te ju d g e of th e co u n ty .
I n g ra n tin g le tte rs of a d m in is tra tio n preference is giv en : 1. l o
th e su rv iv in g spouse o r n e x t of k in o r su ch s u ita b le p erso n a s th e y
o r e ith e r of th e m select. 2. If no a p p lic a tio n is m a d e fo r th ir ty
d a y s a f te r d e a th of in te s ta te , to p rin c ip a l c re d ito r o r cred ito rs, or
som e p erson in te re ste d , a n d if deceased w as n a tiv e of fo reig n c o u n try
to th e consul o r o th e r re p re s e n ta tiv e of th a t c o u n try residing in th is
S ta te , o r to such c o m p e ten t a n d su ita b le p erso n a s he m a y select.
U pon g ra n tin g le tte rs th e c o u rt m ak es a n o rd e r lim itin g th e tim e
w ith in w hich cre d ito rs m a y p re s e n t th e ir claim s. T his tim e m u s t
n o t be less th a n six o r m ore th a n tw elve m o n th s; b u t m a y be e x te n d ed
fo r good cause to a d a te n o t m ore th a n e ig h te en m o n th s a fte r n o tic e
given of th e o rd e r. O n proof b y affid av it t h a t th e re a re no d e b ts
th e tim e lim ited m a y be th re e m o n th s. N otice of th e o rd e r Is given
b v p u b lic a tio n th e re o f once e ac h w eek for th re e w eeks m a new spaper
In th e c o u n ty . C laim s n o t p re se n te d w ith in tim e lim ite d a re b a rre d .
N o n -re sid e n t ex ecu to rs a n d a d m in is tra to rs m a y sue in th is S ta te .
A lie n s . (See rig h t to hold p ro p e rty .)
A r b i t r a t i o n . All co ntroversies w hich c a n be th e s u b je c t o f a civil
a c tio n m a y be s u b m itte d to one o r m ore a rb itr a to r s fo r decision,
e x ce p t a claim to a n e s ta te in fee o r fo r life in re a l e sta te .
A r r e s t . T h ere is no a rre s t fo r d e b t.
A s s ig n m e n ts . S ta tu te s re la tin g to assig n m e n ts fo r th e benefit of
c re d ito rs a re in force e x ce p t as affected b y th e U . S. B a n k ru p tc y A ct
P ra c tic a lly th e y m a y be said to be superseded b y t h a t a c t.
A t t a c h m e n t . B efore allow ing a w rit of a tta c h m e n t, th e c o u rt
m u s t re q u ire of th e p lain tiff a b o n d in th e sum of a t le a st $250, an d
a n a ffid a v it of th e plaintiff, his a g e n t o r a tto rn e y . (1) T h a t th e d e b t
w as fra u d u le n tly c o n tra c te d or (2) th e d e fe n d a n t is a foreign corpora­
tio n o r n o n -resid e n t or (3) h a s d e p a rte d fro m th e S ta te a s he believes
w ith In te n t to d efra u d or d e la y his cred ito rs, o r to a v o id th e service of
a sum m ons o r-keeps him self concealed th e re in w ith lik e in te n t or (4)
h a s assigned, secreted, o r disposed of his p ro p e rty w ith In te n t to delay
o r d e fra u d his c re d ito rs o r is a b o u t to do so.
B a n k s . T h ree o r m ore persons m a y in c o rp o ra te a s a b a n k . C api­
ta l re q u ire d is $10,000 in to w n s of.1,000 o r less p o p u la tio n ; $15,000
in to w n s of 1,000 to 1,500; $20,000 In to w n s of 1,500 to 2,000; an d
$25,000 in tow ns exceeding 2,000 p o p u la tio n . C ap ital sto c k m u s t be
fu lly p a id in cash before b a n k c an do business. S to ck h o ld ers a re
in d iv id u a lly liable fo r d e b ts of b a n k in a n a d d itio n a l a m o u n t e q u al to
th e p a r v a lu e of sto ck ow ned b y th e m , a n d th is lia b ility co n tin u es one
y e a r a f te r a n y tra n s fe r of th e sto ck . A t le a s t one-fifth of th e n e t
profits m u s t be placed In su rp lu s fu n d before a n y d iv id e n d is p a id u n til
th e s u rp lu s a m o u n ts to 20 p e r c en t of th e c a p ita l,a n d th is su rp lu s m u s t
be m a in ta in e d u n im p a ire d .
..
,
| , „„ ..___
E v e ry b a n k m u s t m a k e to th e s u p e rin te n d e n t of b a n k s n o t less th a n
fo u r re p o rts each y e a r w hich m u s t b e p u b lish ed . L iab ilities to a b a n k
of a n y person, c o rp o ra tio n o r firm , fo r m o n ey borrow ed, inclu d in g
th e re in lia b ilities of th e sev eral m em bers th ereo f, sh all a t n o tim e
exceed 15 p e r c e n t of its c a p ita l a n d su rp lu s. I t m u s t h a v e a reserve
e q u al to one-fifth of all its m a tu re d o r d e m a n d ab le lia b ilities, one-half
of w hich m u s t be cash, a n d th e re m a in d e r m a y be b a la n ce s d u e from
so lv e n t b a n k s. In case of inso lv en cy o r v io la tio n of th e b a n k in g law s,
th e s u p e rin te n d e n t of b a n k s m a y ta k e possession, a n d a p p ly to th e
c o u rt fo r a receiver.
B ills o f L a d in g . U niform W arehouse R ec e ip ts A ct, E ffe ctiv e
A nril 2. 1913. W arehouse receip ts a n d bills o f la d in g for. p ro p e rty

B A N K IN G A N D COM M ERCIAL L A W S — M IN N E SO T A
in tra n s it, unless th e w o rd s “ n o t n e g o tia b le ” a p p e a r p la in ly on th e
face thereo f, a re tra n s fe rre d b y en d o rsem en t w h ich sh all c a rry th e
title to th e p ro p e rty a n d all rig h ts o f th e en d o rser th e re in .
In itia l C a rrie r receiving p ro p e rty fo r tra n s p o rta tio n b etw een p o in ts
w ith in th e S ta te , liab le for loss, d a m a g e o r in ju ry cau sed b y it or
o th e r carrie r en ro u te , a n d all c o n tra ry provisions in B ill o f L ad in g
void.
C h a t t e l M o r tg a g e s ., E v e ry m o rtg ag e of p e rso n al p ro p e rty w hich
is n o t acc o m p a n ie d b y Im m ed iate d e liv e ry a n d follow ed b y a c tu a l a n d
co n tin u ed ch an g e of possession is void as to c re d ito rs a n d su b se q u e n t
p u rc h a se rs a n d m o rtg ag e e s in good fa ith , unless i t Is m a d e In good
fa ith , a tte s te d b y tw o w itnesses, ack n o w led g ed a n d filled w ith th e
reg ister o f deeds o f th e c o u n ty in w hich th e m o rtg ag o r resid ed a t
th e tim e o f its ex ecution, if a re sid e n t o f th e State,, o r o f t h a t in w h ich
th e p ro p e rty w as th e n s itu a te d if a n o n -resid e n t. I f th e m o rtg a g o r
resides in S t. P a u l, M in n ea p o lis o r D u lu th o r is a n o n -resid e n t, a n d
th e p ro p e rty is s itu a te d th e re , th e m o rtg ag e m u s t b e filed w ith th e
c ity clerk o f su ch c ity in s te a d o f th e re g iste r o f deed s o f th e co u n ty .
D u p lic a tes o r copies certified b y a n y officer w ith w hom th e m o rtg ag e
h a s been p ro p e rly filed, m a y b e filed in o th e r p laces w h erein a n y p a r t of
th e p ro p e rty w as s itu a te d w h en th e sam e w as m ad e. A s a g a in st
c re d ito rs o f th e m o rtg ag o r a n d su b se q u e n t p u rc h a se rs a n d m o rtg ag ees
in good fa ith th e lien does n o t c o n tin u e b e y o n d th e te rm o f six y e ars
from th e d a te o f filing th e m o rtg ag e u n less th e in d e b te d n ess is n o t
th e n d u e a n d p a y a b le b y its te rm s, in w h ich case i t c o n tin u e s tw o y e ars
a fte r th e m a tu r ity o f th e d e b t a n d n o longer.
C h a tte l m o rtg ag e s g iv en b y a m a rrie d m a n o r w o m an o n p ro p e rty
e x em p t fro m e x ec u tio n m u s t b e e x ec u te d b y b o th h u s b a n d a n d wife
if living .

C onveyances. 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.
C o r p o r a tio n s . M ay b e org an ized b y a n y n u m b e r of p erso n s, n o t
less th a n th re e , fo r th e p u rp o se of e n g ag in g in a n y law fu l business.
T he a m o u n t of c a p ita l s to c k sh all in no case b e less th a n $10,000,
divided in to sh ares of n o t less th a n $1.00 Q r m o re th a n $100. T h e
In corporato rs m u s t sign a n d acknow ledge a certificate specifying; 1.
th e nam e, g en eral n a tu re of business a n d p rin c ip a l place of tra n s a c tin g
th e sam e. 2. P e rio d of its d u ra tio n if lim ited . 3. N am es a n d
places of resid en ce of in c o rp o ra to rs. 4. I n w h a t b o a rd m an age­
m e n t Is v e ste d , d a te of a n n u a l m e e tin g a t w hich su ch b o a rd sh all be
elected, n am es a n d ad d resses of perso n s com posing b o a rd u n til first
election. 5. A m o u n t o f c a p ita l sto ck , how th e sam e Is to b e p a id ,
n u m b e r of sh ares a n d p a r v a lu e of each, a n d if m o re th a n one class, a
d e sc rip tio n , a n d te rm s of issu e a n d m e th o d of v o tin g of e ac h . 6.
H ig h est a m o u n t of in d e b te d n e ss to w hich c o rp o ra tio n sh all b e su b jec t.
This certific a te is filed w ith th e se c re ta ry of s ta te a n d w ith th e re g iste r
of deeds of th e c o u n ty in w hich th e p rin c ip a l p lace of business Is
lo c a ted a n d p u b lish e d In su ch c o u n ty tw o successive d a y s in a d a ily
new spaper, o r tw o successive w eeks in a w eekly.
E v e ry s to ck h o ld er in a n y co rp o ra tio n , e x c e p t th o se org an ized fo r th e
purpose o f c arry in g o n a m a n u fa c tu rin g o r m ech an ical busin ess is
liable to c re d ito rs o f th e co rp o ra tio n in a n a m o u n t equal to th e p a r
value of th e s to ck ow ned b y h im .
F o reig n C o rp o ratio n s. E v e ry fo reign co rp o ra tio n organized fo r
p e cu n iary p ro fit b efo re i t can tra n s a c t o r c o n tin u e business in th is
S ta te , a cq u ire , h o ld o r dispose of p ro p e rty o r b rin g s u it h e re m u s t
m a in ta in a p u b lic office here, a p p o in t a n a g e n t resid in g in th e c o u n ty
w here su ch office is lo c a ted , a u th o riz e d to a c c e p t service of process,
an d m u s t file w ith th e s e c re ta ry of s ta te a n a u th e n tic a te d co p y of
such a p p o in tm e n t a n d of its c h a r te r a n d a verified s ta te m e n t show ing
th e p ro p o rtio n of Its c a p ita l sto c k re p re se n te d b y its p ro p e rty a n d
business in th is S ta te , a n d u p o n t h a t it m u s t p a y a fee. T his a c t does
n o t a p p ly to ex clu siv ely m a n u fa c tu rin g co rp o ratio n s, tra v e lin g sales­
m en soliciting busin ess fo r n o n -resid e n t co rp o ra tio n s, n o r to th o se
engaged o n ly in th e b u sin ess of lo a n in g m o n ey o r in v e stin g in secu rities,
n o r to th o se org an ized to raise a n d im p ro v e liv e sto ck , c u ltiv a te farm s,
can tr a its o r v eg etab les, n o r to th o se w hose sole b u sin ess is tra n s p o r­
ta tio n of fre ig h t o r p assen g ers b y w a te r.
C o u r ts .
D is tric t c o u rts h o ld one o r m o re te rm s a y e a r In each
organized c o u n ty , h a v e o rig in al ju risd ic tio n in a ll civil a ctio n s a t law
an d In e q u ity , a n d In all crim in al cases w here th e p u n is h m e n t exceeds
th re e m o n th s ’ Im p riso n m en t o r a fine of m o re th a n $100.
T h e su p rem e c o u rt h a s a p p e lla te ju risd ic tio n In a ll cases, b u t th e re
Is n o tr ia l b y ju r y in t h a t c o u rt. I t h a s o rig in al ju risd ic tio n in su ch
rem edial cases a s a re p re scrib ed b y law .
P ro b a te c o u rts h a v e ex clu siv e ju risd ic tio n of m a tte rs co n n ected
w ith th e s e ttle m e n t of e sta te s of d eceased p ersons, m in o rs, a n d in sane
persons. T erm s a re h eld on th e first M o n d ay of each m o n th in each
organized co u n ty .
M unicipal co u rts e x ist In c e rta in cities, a n d a re c o u rts of reco rd w ith
lim ited ju risd ic tio n In civil a n d c rim in al actio n s.
Ju stic e s of th e peace h a v e n o ju risd ic tio n In civil a ctio n s w here th e
a m o u n t in v o lv ed exceeds $100.
D a y s o f G ra c e a re ab o lish ed .
D e p o s iti o n s m a y be ta k e n a t a n y p la c e w ith in o r w ith o u t th e
S ta te u p o n n o tic e in w ritin g , s ta tin g th e reaso n fo r ta k in g th e sam e,
th e tim e a n d place, a n d g iv in g th e o p p o site p a r ty one d a y fo r p re p a ­
ra tio n , a n d one d a y fo r e v e ry 100 m iles, ex clu siv e of S u n d a y s a n d
th e d a y of service, b efo re a n y officer a u th o riz e d to a d m in is te r o a th s.
D e s c e n t a n d D i s t r i b u t i o n o f P r o p e r t y . H o m e ste a d descends
to su rv iv in g spouse fo r life, re m a in d e r to ch ild re n a n d issue of deceased
children. If no c h ild ren o r issu e of d eceased child, th e n to s u rv iv in g
spouse in fee, e x em p t from d e b ts n o t a v alid ch arg e th e re o n a t tim e of
In te s ta te ’s d e a th . A fte r p a y m e n t of d e b ts a n d c e rta in allow ances to
th e s u rv iv in g spouse o u t of th e p e rso n al p ro p e rty , th e resid u e of th e
e s ta te descen d s a s follow s; 1. O n e -th ird to th e s u rv iv in g spouse,
balance in e q u al sh ares to ch ild re n a n d law fu l issu e of d eceased child
b y rig h t of re p re s e n ta tio n . 2. I f n o s u rv iv in g child, o r law fu l issue
of deceased child, th e w hole e s ta te d escen d s to su rv iv in g spouse if
a n y . 3. If no Issue o r s u rv iv in g spouse, to fa th e r a n d m o th e r In e q u al
shares, o r if b u t one su rv iv e, to su ch su rv iv o r. 4. I f no su rv iv in g
issue, spouse, fa th e r o r m o th e r, in e q u al sh ares to b ro th e rs a n d siste rs
a n d la w fu l issue of deceased b ro th e r o r siste r. 5. If no issue, spouse,
fa th e r, m o th e r, b ro th e r, sister, o r liv in g issue of deceased b ro th e r
or siste r, to n e x t of k in , in e q u al d eg ree, b u t th o se w ho claim th ro u g h
n e a re s t a n c e s to r p re fe rred to th o se c laim in g th ro u g h a n c e s to r m o re
rem ote. 6. If n o sp o u se o r k in d re d , to th e S ta te .

Dow er is abolished.
E m p lo y e r s L i a b i l i t y A c t, E ffectiv e since A p ril 24, 1913.
E x e c u t i o n s issu e fro m d is tric t c o u rts a n y tim e w ith in te n y e ars
a f te r ju d g m e n t a n d m a y ra n to a n y c o u n ty w h ere ju d g m e n t Is d o ck eted
a re re tu rn a b le in s ix ty d a y s a n d m a y be ren ew ed fo r s ix ty d a y s a t a
tim e o n re q u e st of ju d g m e n t c re d ito r o r h is a tto rn e y . P e rso n a l p ro p ­
e rty is sold o n te n d a y s ’ p o sted n o tic e ; re a l e s ta te on six Weeks’ p u b ­
lished no tice, a n d s u b je c t to re d e m p tio n b y ju d g m e n t d e b to r o r his
assigns w ith in one y e a r fro m d a te of sale.
E x e m p t i o n s . H o m e ste a d o u tsid e of in c o rp o ra te d m u n ic ip a lity
m a y inclu d e e ig h ty acres. I f in in c o rp o ra te d p lace c o n ta in in g less
th a n 5.000 in h a b ita n ts , its a re a sh all n o t exceed o n e-h alf a cre, a n d in
la rg e r in c o rp o ra te d places o n e -th ird of a n a cre w ith o u t re g a rd to value.


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

1439

F a m ily p ic tu re s, lib ra ry , m usical In stru m e n ts fo r use of fam ily, w earing a p p a re l, beds, stoves, cooking u te n sils used b y fam ily , o th e r household fu rn itu re n o t exceeding $500 in v alu e, th re è cows, te n sw ine. One
yoke of oxen a n d a horse, o r in lieu thereof, a sp a n of horses o r m ules,
tw e n ty sheep, th e wool th e re fro m ra w o r m a n u fa c tu re d , food fo r
such s to ck fo r one y e a r’s su p p ly , one w agon, c a r t o r d ra y , one sleigh,
tw o plow s, one d rag , a n d o th e r farm in g u te n sils n o t exceeding $300 in
value, p rovisions fo r d e b to r’s fa m ily fo r one y e a r’s s u p p o rt, too ls k e p t
for p u rp o se of c a rry in g on tra d e , a n d sto ck m a n u fa c tu re d in w hole o r
in p a r t by d e b to r n o t exceeding in v a lu e $400; lib ra ry of professional
?ì>a ?À.PresSj SY ^ f )e’ anc* to o ls of p u b lish e r of n e w sp a p e r n o t exceeding
$¿,000, a n d his sto ck in tra d e n o t exceeding $400; w a tch , sew ing
m achine, ty p e w rite r, bicycle, seed' fo r use of d e b to r fo r one season n o t
exceeding c e rta in a m o u n ts ; lib ra ry a n d a p p a r a tu s of college o r school;
m o n ey p a y a b le to wife o r child from in su ra n ce on life of deceased h u s­
b a n d o r fa th e r n o t exceeding $10,000; m o n ey o r relief from benefit
association; m o n ey fro m in su ra n ce on ex em p t p ro p e rty ; w ages n o t
exceeding^ $35 fo r services re n d e re d d u rin g preceding 30 d a y s; b u t all
w ages p a id a n d earn ed w ith in said th ir ty d a y p eriod shall b e con­
sidered a p a r t o f (or all) o f said e xem ption (chap. 202, L aw s 1915.)
, J a n u a ry 1 st; F e b ru a ry 12 th a n d 22d; Good F rid a y ;
M ay 3 0 th ; J u ly 4 th ; first M onday in S e p te m b e r; T u e sd ay a f te r first
M onday in N ovem ber, each e v en -n u m b e re d y e a r (election d a y ), a n d
D ecem ber 25 th a re legal h o lid ay s. T h a n k sg iv in g d a y is so fa r th a t
n e g o tia b le In stru m e n ts o r c o n tra c ts d u e t h a t d a y a re p a y a b le n e x t
succeeding business d a y .
I n t e r e s t . Six p e r c en t is legal ra te , b u t b y special c o n tra c t a n y
ra te n o t exceeding 10 p e r c en t m a y be ex ac te d . U surious c o n tra c ts
a re void.
J u d g m e n t s m a y be e n te re d b y d e fa u lt In d is tric t c o u rts a t e x p tra tlo n o f tw e n ty d a y s a fte r service of sum m ons. W h en d o c k eted In th o se
c o u rts th e y becom e liens u p o n all re a l e s ta te of th e d e b to r in th e c o u n ty
w here d o ck eted th e n ow ned b y h im o r a fte rw a rd s a cq u ire d , a n d th e
lien c o n tin u e s fo r te n y ears a fte r th e e n try of th e ju d g m e n t. T ran s5“
P^ ju d g m e n ts in ju stic e a n d m u n ic ip a l c o u rts m a y be filed in
d is tric t c o u rt a n d th e re docketed, a n d th e n becom e lie n oh real e sta te ,
j In® us. T o p reserv e a m ech an ic’s lien a verified s ta te m e n t m u s t
be filed b y th e lien c la im a n t w ith in n in e ty d a y s a fte r fu rn ish in g th e
la s t ite m of la b o r o r m a te ria l In th e office of th e re g iste r of deeds of
th e c o u n ty In w hich th e Im proved prem ises a re s itu a te d , o r if claim ed
u p o n a line of ra ilw a y o r Its a p p u rte n a n c e s w ith th e se c re ta ry of s ta te .
L i m i t a t i o n o f A c tio n s . O n c o n tra c ts ex p ress o r Im plied six
y e ars; ju d g m e n ts te n y e a rs; to foreclose m o rtg ag es fifteen y e a rs; to
recover re a l e sta te , fifteen years.' B u t n o a ctio n shall be m a in ta in e d
on a ju d g m e n t n o te , o r o th e r in s tru m e n t a u th o riz in g C onfession o f
Ju d g m e n t unless b eg u n w ith in one y e a r a fte r C ause of A ction a ccru ed ;
a n d no a ctio n shall b e m a in ta in e d u p o n a n y J u d g m e n t o f a n y C o u rt o f
th e U. S. or o f a n y S ta te or T e rrito ry e n te re d b y C onfession u n d e r a
w a rra n t of a tto rn e y , unless th e a ctio n u p o n su ch ju d g m e n t b e begun
w ith in one y e a r a fte r th e re n d itio n or e n try th ereo f.
M a r r ie d W o m e n , P ro p e rty acq u ired b y w ife before o r a f te r m a r­
riag e re m a in s h e r s e p a ra te e sta te . I t is liable fo r h e r d e b ts a n d to rts
to th e sam e e x te n t a s if she w ere u n m a rrie d , a n d she m a y m a k e a n y
c o n tra c t w hich she could m a k e if u n m a rried , e x ce p t t h a t no convey­
an ce o r c o n tra c t fo r sale of h e r h o m e stea d o r a n y in te re s t th e re in is
v a lid unless h e r h u s b a n d join s in th e sam e.
B o th h u sb a n d a n d w ife a re liable fo r necessaries fu rn ish e d to a n d
used b y th e fam ily..
M o r tg a g e s on re a l e s ta te e x ec u te d in th e presénce of tw o su b scrib ­
ing w itnesses, acknow ledged a n d recorded In th e office of th e re g is te r of
deeds of th e c o u n ty in w hich th e m o rtg ag e d prem ises a re s itu a te d m a y
be foreclosed b y p u b lic a tio n o r b y a ctio n . T h e m o rtg a g o r o r his
a ssigns m a y redeem w ith in one y e a r from th e d a te of th e foreclosure
sale.
T h e a u th o rity o f a n a tto rn e y cond u ctin g a foreclosure b y a d v e r­
tise m en t, m u st b e in th e fo rm o f a P ow er o f A tto rn e y , ex ecu ted a n d
acknow ledged b y th e m o rtg ag ee o r assignee in th e Same m a n n e r a s
a conveyance a n d reco rd ed p rio r to th e sale in th e C o u n ty w here
th e foreclosure proceedings a re h a d .
T h e m o rtg ag o r m a y c o v en a n t to p a y o r a u th o riz e th e m ortgagee
to re ta in a n y a tto rn e y ’s fee in case o f foreclosure o f n o t exceeding
$25; w here th e m o rtg ag e d e b t does n o t exceed $500; $50 w here th e
m o rtg ag e d e b t exceeds $500 a n d does n o t exceed $1,000; $75 w here'
th e m o rtg ag e d e b t exceeds $1,000 a n d does n o t exceed $5,000; $100
w here th e m o rtg ag e d e b t exceeds $5,000 b u t does n o t exceed $10,000;
a n d $200 w here th e m o rtg ag e d e b t exceeds $10,000.
A R eg istry T a x o f 15 c en ts is im posed u p o n each $100 o r fra c tio n
th e re o f of th e prin c ip a l d e b t secured b y a n y m o rtg ag e covering p ro p ­
e rty w ith in th e S ta te o f M in n eso ta a n d re c o rd e d in sa id S ta te . -I n
case th e m a tu rity o f th e d e b t so secured shall bo fixed a t a d a te m ore
th a n five y e ars a fte r th e d a te of said m ortgage, th e a m o u n t o f such
R eg istry T a x shall be a t th e r a te o f 25 cen ts o n each $100. N o
such m o rtg ag e or a ssig n m e n t o r satisfa c tio n th e re o f o r p a p ers re ­
la tin g to its foreclosure, shall b e recorded o r reg istered unless su ch
ta x h a s been p a id , n o r sh all a n y such d o cu m en t o r reco rd th e re o f be
received in evidence in a n y c o u rt or h a v e a n y v a lid ity as n o tic e o r
otherw ise. I f su ch m o rtg ag e describe re a l e s ta te o u tsid e o f M in n e ­
so ta, su ch ta x shall b e im posed u p o n su ch p ro p o rtio n o f th e w hole
d e b t secured a s th e v a lu e o f th e re a l e s ta te described in th is S ta te
bears to th e v a lu e o f th e w hole real e sta te , su ch v a lu e to b e d e te r­
m ined b y th e S ta te A u d ito r u p o n a p p lic atio n o f th e m ortgagee.
N o te s a n d B ills o f E x c h a n g e . U niform N e gotiable. In s tru ­
m e n ts L aw h a s b e en in force since A pril 15, 1913. C om m ercial p a p e r
is p a y a b le a t th e tim e fixed th e re in w ith o u t grace. W hen d u e
or p a y ab le on S a tu rd a y o r on Sunday, o r a n y legal o r b a n k ho lid ay ,
th e sam e is p a y ab le u p o n th e business d a y n e x t succeeding, a n d m a y
be protested" on su ch succeeding d a y .
B i g h t t o H o ld P r o p e r t y . N o p erso n u nless h e be a citiz en of th e
U n ite d S ta te s , o r h a s declared his in te n tio n to becom e a citizen, a n d
no c o rp o ra tio n u nless c re a te d u n d e r th e law s of th e U n ite d S ta te s, or
of som e s ta te th ereo f, shall a cq u ire la n d s exceeding 90,000 sq u are feet,
e x ce p t b y devise, in h e rita n c e, o r th ro u g h s e c u rity fo r indeb ted n ess.
T his does n o t a p p ly to a c tu a l s e ttle rs on fa rm s n o t exceeding 160 acres,
o r to su b jec ts of a fo reig n c o u n try , w hose rig h ts to hold la n d s a re
secured b y tre a ty .
No c o rp o ra tio n , m ore th a n 20 p e r c e n t of w h o s e sto ck is ow ned b y
persons n o t c itizens of th e U n ite d S ta te s , o r b y c o rp o ra tio n s n o t
c re a te d u n d e r its law s, o r th o se of som e s ta te th e re o n can a cq u ire
lan d s, a n d n o co rp o ra tio n u nless organized fo r th e c o n stru ctio n of
o p e ra tio n of a ra ilw a y c an a l o r tu rn p ik e c a n a cq u ire m ore th a n 5,000
a cres o r m ore th a n is n ecessary fo r its o p e ra tio n , a n d la n d s g ra n te d
it b y th e S ta te o r U n ite d S ta te s.
B u t th is does n o t a p p ly to la n d s a cq u ire d in th e collection of d e b ts,
n o r to a p e rso n o r c o rp o ra tio n engaged in selling la n d s to a c tu a l
settle rs, o r engaged in m a n u fa c tu rin g in M innesota w hile so engaged.
Such persons o r c o rp o ra tio n s n o t so engaged m u s t sell w h a t th e y h a d
A pril 13, 1911, w i t h i n te n y e ars from t h a t d a te a n d sell w h a t th e y
a c q u ire su b se q u e n t to t h a t d a te w ith in te n y e ars a fte r th e y a c q u ire it.
T a x e s on re a l e s ta te m a y be p a id One-half before th e f ir s t;d a y of
J u n e a n d o n e-h alf before th e first d a y of N ovem ber of th e y e a r foilow lng th e le v y th ereo f, a n d If n o t so p a id a p e n a lty of 10 p e r c e n t a t ­
ta c h e s. I f ta x e s on perso n al p ro p e rty a re n o t p a id before M arch 1st
of th e y e a r follow ing th e levy th ereo f, a p e n a lty of 10 p e r c e n t a tta c h e s .

B A N K IN G A N D COM M ERCIAL L A W S — M ISSISSIP P I

1440

W ills . E v e ry p erso n o f fu ll a g e a n d so u n d m in d m a y dispose of
p ro p e rty b y w ill in w ritin g , sig n ed b y tb e te s ta to r , o r b y som e person
ip h is presen ce a n d b y h is d ire c tio n , a tte s te d a n d su b sc rib e d in his
p resen ce b y tw o o r m o re c o m p e te n t w itn esses. E v e ry person includes
m a rrie d riromen. If. a fte r m a k in g a w ill th e te s t a to r m arries, th e will
is th e re b y rev o k ed .

S Y N O P S IS OF

T H E LA W S OF M ISSISSIPPI
RELATING TO
B A N K IN G A N D COM M ERCIAL U S A G E S
P re p a re d a n d R ev ised b y F l o w e r s , B r o w n , D a v is & C h a m b e r s ,
A tto rn e y s a t L aw , J a c k s o n . (See C ard in A tto rn e y s ’ L ist.)
A c c o u n ts . S w orn to e n title s p la in tiff to ju d g m e n t, un less defend­
a n t files a ffid a v it d e n y in g . T h e a ffid a v it m u s t b e b y th e c re d ito r o r
h is a g en t. A ll a cc o u n ts m u s t b e item ized .
A c k n o w l e d g m e n t s befo re a n y ju d g e , c le rk o f a c o u rt of record
u n d e r h is seal, ju s tic e of th e peace, n o ta ry p u b lic, o r m e m b e r of th e
b o a rd o f su p erv iso rs, b efo re a n y p o lice ju stic e , o r m a y o r o f a n y c ity ,
to w n o r village. A ck n o w led g m en ts in a n o th e r s ta te m a y b e before
a n y o f th e ju d g es o f th e su p rem e co u rt, o r a n y d is tric t ju d g e o f th e
U n ite d S ta te s, o r a ju d g e o f th e su p re m e o r su p erio r c o u rt in a n y s ta te
o r te rrito ry , a n y ju stic e o f th e peace, w hose official c h a ra c te r shall
b e certified to u n d e r th e seal o f so m e c o u rt o f reco rd in h is c o u n ty ,
o r b y a n y com m issioner resid in g in su ch s ta t e o r te rrito ry , a p p o in te d
b y th e g o v ern o r o f M ississippi, o r a n o ta ry p u b lic o r a clerk o f a c o u rt
o r re c o rd h a v in g a seal o f office. A ck n o w led g m ents o r p ro o f of
deeds to p ro p e rty in th is S ta te b y perso n s in a foreign c o u n try m a y be
m a d e b efo re a n y c o u rt o f reco rd , o r th e m a y o r o r chief m a g is tra te
o f a n y c ity , bo ro u g h , o r c o rp o ra tio n w h ere th e g ra n to r o r w itnesses
resid e, o r m a y b e ; o r b efo re a n y com m issioner a p p o in te d b y th e gov­
e rn o r o f th is S ta te , o r b efo re a n y am b assad o r, foreign m in ister, sec­
r e ta r y o f leg atio n , o r consul o f th e U n ite d S ta te s. T h e certificate
s h all show t h a t th e p a r ty o r p a r ty a n d w itn ess w ere id e ntified before
th e officer, a n d t h a t th e p a r ty acknow ledged th e execution o f th e
in s tru m e n t, o r t h a t th e ex ecu tio n w as d u ly p ro v e d b y th e w itn ess o r
w itnesses. A ck n o w led g m en t m u s t s ta t e t h a t p a r ty “ acknow ledged
t h a t h e signed a n d delivered” in s tru m e n t.
A c tio n s . A ll d is tin c tio n a s to fo rm s ab o lish ed . S ervice five d a y s
b efo re re tu rn d a y . A ll a c tio n tria b le in th e c irc u it c o u rt a t first te rm
in w h ich th e d e fe n d a n t h a s b een p e rso n ally serv ed w ith process th ir ty
d a y s b efo re th e re tu rn d a y . M an d am u s, q u o w a rra n to , m e c h an ic s’
lien s, a tta c h m e n ts , a n d re p le v in tria b le a t re tu r n te rm o n five d a y s'
n o tic e .
A d m i n i s t r a t i o n o f E s t a t e s . H a d in c h a n c e ry c o u rt, a cco rd in g
to w ill, if a n y . C laim s a g a in st d eceased m u s t b e re g iste re d w ith in one
y e a r a f te r th e first p u b lic a tio n of n o tic e to c re d ito rs; re g is tra tio n sto p s
th e g en eral s ta t u te of lim ita tio n s. A ll d e b ts a re to b'e p a id before
h e irs, d is trib u to rs, o r le g a tee s. C laim s a g a in s t in so lv e n t e s ta te s a re
p a id p ro ra ta .
A f f id a v its o r O a th s b efo re a ju d g e of a n y c o u rt of reco rd , c le rk of
su ch c o u rt, m a ste r in c h an c e ry , m e m b e r of th e b o a rd of supervisors,
ju s tic e of th e p eace, n o ta ry p u b lic, m a y o r, o r police ju s tic e of a city ,
to w n o r v illag e; in a n o th e r s ta te b y a n y officer th e re o f, o r of th e
U n ite d S ta te s , a u th o riz e d to a d m in is te r o a th s.
A lie n s . N o re s tric tio n s on th e rig h ts o r re s id e n t a lie n s to a cq u ire
p ro p e rty o r d ispose of it. N o n -re sid e n t alien s c an n o t h o ld la n d , h u t
m a y ta k e lien s th e re o n to secu re d e b ts a n d p u rc h a se a t foreclosure
th e re o f, a n d th e re a fte r h o ld i t fo r n o t lo n g e r th a n tw e n ty y e a rs, w ith
p o w e r to sell to a citiz en in fee; o r h e m a y re ta in i t b y becom ing a
c itizen .
A p p e a ls fro m ju s tic e c o u rt to c irc u it c o u rt w ith in te n d a y s. F ro m
c irc u it a n d c h an c e ry c o u rts to su p re m e c o u rt w ith in tw o y e ars.
A p p eals also in c e rta in cases fro m b o a rd o f su p erv iso rs a n d m u n ic ip a l
c o u rts.
A r b i t r a t i o n . P a rtie s m a y s u b m it to a rb itr a tio n of o ne o r m ore
d is in te re ste d a rb itr a to r s , w ith a g re em en t t h a t p ro p e r c o u rt s h a ll e n te r
ju d g m e n t.
A r r e s t s m a d e b y c e rta in officers, o r p riv a te p erso n s m a y a rre s t fo r
offense c o m m itte d in h is p resen ce. N o a rre s ts o r im p riso n m e n t fo r
d e b t.
A s s i g n m e n t s a n d I n s o l v e n c y . N o in so lv e n t la w . D e b to r,
th o u g h in so lv e n t, m a y p re fe r c re d ito rs, if in good fa ith a n d n o b enefit,
d ire c t o r in d ire c t, is reserv ed . N o p ro v